The Henderson Smaller Companies Investment Trust plc invests in UK smaller companies, with the aim of maximising total returns through a dedicated stock-picking approach.
Key Facts
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Experience countsNeil Hermon has managed the trust since 2002. He has specialised in UK Smaller Company investment since 1994.
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Wide exposure to opportunities
The portfolio invests approximately 70% mid-cap, 22% small-cap, 8% AIM stocks.
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Focus on value
The manager focuses on obtaining growth at a reasonable price, by analysing a company’s management quality, financial structure, balance sheet and cash flow, and earnings momentum.
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Disciplined approach
A strict ‘sell’ discipline helps ensure that growth is captured on the upside and disappointing stocks are sold early.
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Low turnover
The manager has a ‘buy and hold’ philosophy, with an average holding period for stocks of four to five years.
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Diversified portfolio
Your money will be invested over 100 stocks on average, for a broad spread of risk.
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Reasons to Invest
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History of successIt has grown to become the second-largest trust in its sector (Source: Cazenove 23/07/09).
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Attractive discountBecause this sector is currently out of favour with the market you can buy in at an attractive discount.
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Value for moneyThe trust has a management fee of just 0.35% per annum and a Total Expense Ratio (TER) of only 0.51% (as at End of Year, 31st May 2009).
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Motivated to achieve
A performance fee closely aligns the interest of the manager with those of the shareholders.
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Price
| Price | NAV
28/07
2010 | Div Yield
(Net) | Discount |
|---|
| 241.0 | 287.0 | 1.2 | -16.64 |
As at
29/07/2010
Source: Financial Express
Fund Manager's Commentary - June 2010
The UK stock market fell back again in June, with investors troubled by concerns that public sector fiscal tightening would dampen economic growth. The FTSE All-Share Total Return index fell 4.6%, with small and mid-cap stocks outperforming as the Hoare Govett Smaller Companies Index declined 2.4%.
Notable contributors to performance included Scott Wilson (engineering consultant), which rose 232.5% as URS, the US company, made an agreed offer to buy the company. Domino Printing (ink-jet printing manufacturer) rose 16.1%, as the company produced an excellent set of interim results and upgraded their earnings guidance for the full year. Detractors from performance included International Ferro Metals (ferrochrome producer), which fell 28% as investors worried about a potential fall in contract prices for the third quarter of the year.
We took a position in Jupiter Asset Management (fund manager), as we thought the initial public offering was attractively priced and the company had strong prospects for growth. We sold out of our position in Numis (investment bank) as we believe current equity market conditions are not supportive for profitable growth.