6th Feb 2017 10:03
LONDON (Alliance News) - Henderson Opportunities Trust PLC said Monday it underperformed its benchmark index in its financial year, as UK small-cap stocks missed out on a market rally.
Henderson Opportunities reported a net asset value total return of 0.4% for its financial year ended October 31, compared to a return from its benchmark FTSE All-Share Index of 12% over the same period.
Henderson Opportunities' net asset value per share at the end of the period stood at 997.2 pence, down from 1,012.5p at the same date in 2015.
The trust proposed a final dividend of 13.5p, bringing its total dividend for the year to 19.0p, up from 18.0p the prior year. Henderson Opportunities said it is "optimistic" the progressive dividend can be maintained.
Shares in Henderson Opportunities were up 2.3% at 975.04p Monday morning.
"Although the company has outperformed its benchmark over three and five years, there was disappointing underperformance in the year under review. This significantly reflected the UK bias of our portfolio and, in particular, its heavy bias towards small cap stocks, which were out of favour in the months preceding and following the Brexit vote," said Peter Jones, chairman of the trust.
Jones noted for the new financial year up to January 31, the trust's net asset value is up by 11.9% compared to a FTSE All-Share rise of 2.4%.
Investment managers James Henderson and Colin Hughes noted the largest investment disposal was of textile rental and dry cleaning firm Johnson Service Group PLC with its recovery "now complete". The second largest was FTSE 100-listed natural resources company Glencore PLC to realise profit, although managers added that this was "perhaps rather too early in hindsight".
The largest purchase was in emerging-markets focused lender Standard Chartered PLC on the prospects of a return to growth, followed by British Airways parent International Consolidated Airlines Group PLC due to a fall in its share price caused by falling sterling and rising oil prices.
By Adam Clark; [email protected]
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