| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 100.14 | -45 |
| Intrinsic value (DCF) | 65.52 | -64 |
| Graham-Dodd Method | 0.68 | -100 |
| Graham Formula | 12.28 | -93 |
BMO Global Smaller Companies Trust Plc (GSCT.L) is a UK-based closed-ended equity mutual fund managed by F&C Investment Business Ltd, focusing on global small-cap investments. Launched in 1889, the fund targets growth and value stocks across diversified sectors, employing fundamental analysis to assess management quality, market positioning, and cash flow dynamics. The fund benchmarks against a composite of 30% Numis UK Smaller Companies Index and 70% MSCI All Country World ex UK Small Cap Index. With a market cap of approximately £690 million, GSCT.L provides investors exposure to high-potential smaller companies worldwide, leveraging its long-standing expertise in small-cap equity selection. The trust is listed on the London Stock Exchange and appeals to investors seeking diversified global small-cap exposure with a disciplined investment approach.
BMO Global Smaller Companies Trust Plc offers investors access to a diversified portfolio of global small-cap equities, combining growth and value strategies. The fund's long-term track record and disciplined fundamental analysis provide a competitive edge in identifying undervalued small-cap opportunities. However, its 1.14 beta indicates higher volatility compared to broader markets, reflecting the inherent risks of small-cap investing. The trust's £67.6 million net income and £2.83 dividend per share demonstrate solid performance, but investors should weigh the potential for higher returns against the liquidity risks and market sensitivity typical of small-cap funds. The fund's global diversification mitigates some regional risks, but currency fluctuations and geopolitical factors remain considerations.
BMO Global Smaller Companies Trust differentiates itself through its pure focus on global small-cap equities and a balanced growth-value approach. Its composite benchmark strategy (30% UK, 70% ex-UK) provides broader diversification than UK-focused peers. The trust's 130+ year history lends credibility and experience in small-cap stock selection. However, its closed-ended structure limits liquidity compared to open-ended alternatives, though this allows for more stable capital management. The fund's £690 million AUM provides scale advantages in research and access, but larger global asset managers may have superior resources. Its 1.14 beta suggests slightly less volatility than some small-cap peers, potentially appealing to risk-conscious investors. The trust's sector-agnostic approach differentiates it from thematic small-cap funds but may limit upside in hot sectors. Its UK domicile provides tax advantages for British investors but may be less attractive internationally versus Luxembourg or Dublin-domiciled competitors.