Henderson Smaller Companies Investment Trust
UK Smaller Companies
Rated Fund 2014-20. Experienced manager applies solid 'four Ms' selection process
This trust, a past winner in Money Observer's annual investment trust awards and highly commended in 2017, remains an excellent choice. The smaller companies team at Janus Henderson benefits from the leadership and experience of Neil Hermon, manager of the trust since 2002. Under his management, the trust has regularly outperformed its benchmark, the Numis Smaller Companies index, as it did in 2019.
Hermon's main focus is on growth stocks at the right price. He finds his investments mainly by conducting meetings with companies, where he assesses company managers and their strategy. He looks for "the four Ms": model (a strong business model); management (managers with a good track record); money (strong balance sheets and cash flow); and momentum (good earnings momentum). He runs a well-diversified portfolio of more than 100 stocks that he likes to hold for the long term - five years or more.
Although the trust benefits from merger and acquisition activity, Hermon says he does not buy stocks with that in mind, although he admits it is nice if it happens. He is more focused on buying companies he believes can grow.
Morningstar analyst David Holder regards the trust as a "strong candidate" for investors seeking exposure to a broad range of UK smaller companies from the Alternative Investment Market through to the FTSE 250 index. The trust's shares have traded on a discount to net asset value of 10% on average over the past three years, although that narrowed considerably last year to around par.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Intermediate Capital Group PLC||3.70 %|
|Bellway PLC||3.57 %|
|Paragon Banking Group PLC||2.27 %|
|Clinigen Group PLC||2.23 %|
|Learning Technologies Group PLC||1.94 %|
|John Laing Group PLC||1.93 %|
|Oxford Instruments PLC||1.91 %|
|GB Group PLC||1.90 %|
|Victrex PLC||1.88 %|
|Cineworld Group PLC||1.84 %|
|United Kingdom||99.19 %|
|Financial Services||17.32 %|
|Consumer Cyclical||13.52 %|
|Communication Services||9.78 %|
|Real Estate||6.40 %|
|Basic materials||5.55 %|
Neil Hermon is a Portfolio Manager at Janus Henderson Investors, a position he has held since 2013. He joined Henderson in 2002 as head of UK smaller companies. Prior to this, he served as head of UK smaller companies for General Accident Investment Management (later to become CGU plc). He began his career at Ernst & Young as a chartered accountant. Neil received an MA (Hons) in mathematics from Cambridge University. He is an associate member of the Society of Investment Professionals (ASIP).
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.