Review on Henderson Smaller Companies Invst Trust

Henderson Smaller Cos Inv Tst PLC

24 August 2023

 

London, UK, 24 August 2023

Edison issues review on Henderson Smaller Companies Investment Trust (HSL)

Henderson Smaller Companies Investment Trust (HSL) is managed by Neil Hermon, who has been at the helm for more than 20 years. While FY23, ending 31 May, was a difficult year as growth stocks derated in an environment of rising interest rates and bond yields, this should be put into context as the manager has outperformed the trust's benchmark in 16 of the last 20 years. Hermon believes that there is a disconnect between portfolio companies' valuations and the strength of their operations as, faced with higher input costs, businesses have adapted to protect their margins. The manager has taken the opportunity of share price weakness to add some new high-quality names to the portfolio, which would have previously been disregarded on valuation grounds. HSL is now one of just 20 funds designated as an AIC dividend hero.

Hermon and his team employ a solid, repeatable investment process based on four M's: a company's business model, the quality of its management team, its financial strength (money) and momentum in terms of a firm's recent and longer-term news flow. ESG considerations are an integral part of the thorough fundamental approach. The manager is closely supported by two colleagues, both of whom are also qualified accountants, which is a particular benefit in the analysis of a smaller company's financial strength. Hermon is also able to draw on the broad resources of Janus Henderson Investors' wider investment team, which has both UK and global specialists, including other small- and mid-cap focused managers.

  
Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Mel Jenner [phone] [e-mail]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        www.linkedin.com/company/edison-group-/

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv

 

END