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 2008).
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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
10/03
2010 | Div Yield
(Net) | Discount |
|---|
| 207.5 | 269.6 | 1.5 | -23.25 |
As at
11/03/2010
Source: Financial Express
Fund Manager's Commentary - December 2009
The UK stock market made progress in December as economic news continued to show signs of global recovery. Trading was thin as investors wound down for the Christmas period. The FTSE All-Share index rose 4.3%, with small- and mid-cap stocks marginally underperforming as the Hoare Govett Smaller Companies index climbed 3.5%.
Notable contributors to performance included Mouchel Group (outsourced services), which rose 51.8% as VT Group made a takeover approach for the company. Southern Cross (nursing home operator), rose 32.1% as the company reported pleasing full year numbers and gave a confident message on future prospects. Detractors from performance included Goals Soccer Centres (operator of 5-a-side football centres), which fell 22.4% as the company indicated current trading was tough.
We took a position in Avocet Mining (gold miner), as we believe the shares are due a rerating as it moves to full commercial production. We sold out of our position in Savills (commercial property agent) and Forth Ports (port operator) as we believe both companies look fully valued.