UK smaller companies the key to outperformance
In this video, Laura Foll, Co-Portfolio Manager of Henderson Opportunities Trust, discusses the Trust’s recent performance highlighting the contribution from different ‘buckets’ to performance and areas where she is finding opportunities. Laura also touches on the Trust’s discount.
- The Henderson Opportunities Trust has performed strongly over the last one, three, five and ten years. This solid performance can be attributed to the Trust’s exposure to a blend of UK smaller companies.
- Laura is currently finding opportunities within the recovery, natural resources, and large companies’ buckets. This includes companies such as Marks & Spencer and Revolution Bars which have benefitted from the UK’s economic recovery.
- The Trust’s discount has widened in recent months; however, this is not exclusive to the Trust and has been a sector wide trend due to outflows from the UK equity market. However, consistent outperformance should ultimately lead to a narrowing of the discount over time.
Please read the following important information regarding funds related to this article.
- If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
- Some of the investments in this portfolio are in smaller company shares. They may be more difficult to buy and sell, and their share prices may fluctuate more than those of larger companies.
- This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
- Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
- The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
- Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
- The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
- The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.