Henderson Smaller Companies Investment Trust
UK Smaller Companies
Rated Fund 2014-19. Experienced manager looks for the ‘four Ms’
A past winner in Money Observer’s annual investment trust awards and highly commended in 2017, Henderson Smaller Companies investment trust remains an excellent choice.
The smaller companies team at Janus Henderson benefits from leadership of the experienced Neil Hermon, manager of the trust since 2002 and an investor in UK smaller companies since 1993. Under his management, the trust has regularly outperformed its benchmark, the Numis Smaller Companies index.
Hermon’s main focus is growth stocks at the right price, often described as ‘growth at a reasonable price’ (Garp). 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 ow); and momentum (good earnings momentum).
He runs a well-diversified portfolio of more than 100 holdings and takes a long-term approach, holding stocks for more than five years on average.
Although the trust benefits from merger and acquisition activity, Hermon says he does not buy stocks with that in mind, though he admits it is nice if it happens. He is more focused on buying companies he believes can grow in the future.
Morningstar analyst David Holder regards it as a “strong candidate” for those investors seeking exposure to a broad range of UK smaller companies from the Alternative Investment Market through to the FTSE 250 index.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Bellway PLC||3.56 %|
|Intermediate Capital Group PLC||3.02 %|
|Cineworld Group PLC||2.95 %|
|Clinigen Group PLC||2.71 %|
|John Laing Group PLC||2.56 %|
|Paragon Banking Group PLC||2.26 %|
|Renishaw PLC||2.09 %|
|Dechra Pharmaceuticals PLC||2.07 %|
|Burford Capital Ltd||1.92 %|
|Victrex PLC||1.89 %|
|United Kingdom||99.31 %|
|Consumer Cyclical||19.26 %|
|Financial Services||15.13 %|
|Basic materials||9.45 %|
|Real Estate||8.08 %|
Neil Hermon is Director of UK Equities and a Fund 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.
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