Shires trust performs poorly

Shires Smaller Companies Trust, managed by Glasgow Investment Managers has failed to capitalise on the rally in small companies. In the first six months of the year the £33.1m trust grew its NAV by 21.8% against a rise of 31.2% in the FTSE SmallCap Index. The principal contributions to the good performance of the index were made by basic industry and resource stocks, notably in the chemical and construction industries where substantial recoveries in earnings are expected. The trust's underlying portfolio has been underweight in these more cyclical sectors and emphasised sectors with defens...