Foreign & Colonial US Smaller Companies investment trust saw its net asset value per share increase by 9.8 per cent in the year to June 2001, compared to a rise of 6.7 per cent for the Russell index, its benchmark.
The company's share price increased by 11.25 per cent over the same period, and is predicting further growth as interest rates cuts hit its smaller companies. Historically smaller companies have performed better under lower interest rates.
F&C US Smaller Companies chairman Gordon Grender says: “This is the second successive year in which smaller companies have performed better than large. The last occasion that this occurred as in 1990 and the outperformance lasted for more than three years. The outlook for smaller companies is bright.”