F&C US Smaller Companies’ net asset value rose by 8.3% over the second half of 2013, marginally behind the increase in the Russell 2000 Index which rose by 9.0% (in sterling terms – in US$ terms it rose by 19.1% but the US dollar weakened against the pound during the period). FSC’s discount widened over the period so the share price return was just 3.9%.
F&C US Smaller Companies is managed by Robert Siddles. His style is quite conservative and the report says that this is the reason for the fund’s underperformance. He is switching jobs to work for Jupiter and the Board has decided that the fund will go with him.