6th Aug 2018 10:53
LONDON (Alliance News) - Henderson Smaller Companies Investment Trust PLC on Monday said it outperformed its annual benchmark due to a strong performance from its portfolio and changes to gearing.
In its financial year ended ended May 31, the company's net asset value total return was 15.9%, trebling the 5.3% return of its benchmark, the Numis Smaller Companies Index (excluding investment companies).
Its net asset value on May 31 was 1,046.9 pence per share, up 14% from 921.6p the year before. Over the year, its discount to net asset value ranged from 16.35 to 7.1%, averaging 12.5% for the year.
Henderson began the year with 9.2% gearing but ended at 8.5%. It said that its controlled use of gearing had contributed strongly to the investment trust's performance. The underlying positive performance of the company's portfolio was also credited, allowing the trust to outperform its benchmark in 14 of the 15 years in which Neil Herman has been fund manager at Henderson.
"Absolute and relative performance was very strong and our portfolio companies have, overall, performed robustly," said Herman.
Total income declined to GBP116.4 million from GBP161.5 million with pretax profit down 30% at 107.8 million from GBP154.3 million.
The trust will pay a final 15.0p per share dividend, bringing the full year dividend to 21.0p - up 17% from 18.0p the previous year.
Chairman Jamie Cayzer-Colvin noted the overall turmoil within the markets, particularly around Brexit and Donald Trump.
"Active management is the only way to navigate these difficult markets," he said.
Shares in Henderson were down 0.5% at 922.08p on Monday.
Related Shares:
Henderson Smaller Companies Trust