Director, Portfolio Manager, Global Small CapView Bio
The aim of the BMO Global Smaller Companies Trust PLC is to generate a high total return by investing in smaller companies worldwide. It remains one of only a few investment trusts to offer investors access to a broadly spread global smaller companies portfolio.
The portfolio consists of individual smaller company investments within the US, UK and European markets, and third party fund holdings targeting smaller companies in Japan, Asia, Latin America and other smaller territories.
Our teams of smaller company specialist managers focus on fundamental analysis of the opportunities in the North American, UK and Continental European stock markets.
The teams focus is on meeting individual companies and assessing the quality of their management, their position in their targeted markets and their strategy for growth. Attention is also paid to each individual company’s financial strength and cash flow dynamics, which is particularly important given that smaller companies will tend to have less flexibility around funding options than larger companies. The aim is to invest in high quality companies at attractive prices, offering the potential to deliver strong returns, with an eye to minimising the risk profile of investment.
Being less mature and more focused, smaller companies are inherently more risky than larger companies. Share prices can therefore be more volatile. Other risks investors should consider include:
Compared with larger companies, smaller companies are not as diversified and can be more dependent on a limited number of key personnel.
We seek to reduce the risks associated with smaller companies by doing detailed analysis and by investing in a large number of stocks in various industry sectors and geographic areas. There are no specific sector or geographic exposure limits.
The fund manager can borrow in either sterling or foreign currencies. Otherwise known as ‘gearing’, this is limited to a maximum of 20% of shareholders’ funds.
The Trust’s board, with advice from the manager, considers the foreign exchange outlook, as this can affect both the asset allocation and borrowing strategy, and can protect the portfolio against currency movements.
|Investment manager||BMO Investment Business Limited|
|Benchmark||30% Numis UK Smaller Companies (excluding investment companies) Index / 70% MSCI all country World ex UK Small Cap Index|
|AIC sector||Global Growth|
|Total assets||£846.9 million (as at 31.01.2019)|
|Annual general meeting||July|
|Year end||30 April|
|Dividends paid||August and January|
|Results announced||June (final) December (half yearly)|