Consistency of approach the key to strong performance
Neil Hermon Director of UK Equities | Portfolio Manager
Neil Hermon, Fund Manager of the Henderson Smaller Companies Investment Trust, discusses the Trust’s recent performance, highlighting the key drivers of performance, his growth at a reasonable price investment approach (GARP), challenges in the UK market, and the Trust’s approach to ESG.
The Henderson Smaller Companies Investment Trust has outperformed in 17 of the last 19financial years and performance over the last one, three, five and ten-years has been impressive
A positive vaccine rollout, the reopening of the economy and reduced Brexit uncertainty have been the positive drivers of UK stock market performance
The Trust actively engages with companies within the portfolio to ensure they are making progress in improving their Environmental, Social and Governance (ESG) credentials
The spread of the new Covid-19 delta variant and rising inflation within raw materials, metals and logistics costs pose a challenge to the market in the short to medium term
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser.
If a trust's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
Most of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies.
This trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this trust.
Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
The trust could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the trust.
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 trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the trust. As a result losses (or gains) may be higher or lower than those of the trust’s assets.
The trust may use gearing as part of its investment strategy. If the trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a trust that does not use gearing.
Derivatives use exposes the trust to risks different from, and potentially greater than, the risks associated with investing directly in securities and may therefore result in additional loss, which could be significantly greater than the cost of the derivative.