F&C US Smaller Companies (652p and 3.0% of JIC). The chart above, courtesy of Redburn Partners shows the performance of US Small Cap stocks, as represented by the S&P 600 Index, relative to large cap stocks, as represented by the S&P 500 index. It clearly shows a break out above levels at which it failed in 2011 and 2012.
I have decided to jump on board this theme and have chosen the F&C US Smaller Companies Trust as my vehicle. I have to thank one of my French readers for bringing this trust to my attention a few months ago. At the time I baulked at the share price premium to NAV which stood at about 10%. The premium has narrowed to only a few percent and whilst I would always prefer to buy at a discount I feel that this could be a good time to buy. The objective of F&C US Smaller Companies PLC is to achieve long-term capital growth by investing in a diversified portfolio, primarily of quoted US smaller and medium sized companies. It has an enviable short and long term record under the management of Robert Siddles and his team. For more information on the Trust go to www.trustnet.com
I have bought a 3% holding.
www.JohnsInvestmentChronicle.com
