20th Jan 2016 16:32
LONDON (Alliance News) - Henderson Smaller Companies Investment Trust PLC on Wednesday backed smaller companies in the UK as a "good investment" for the long term.
The trust, which invests in smaller public stocks in the UK, said its net asset value for the six months to November 30 on a total return basis was down 1.0%, while its Numis Smaller Companies Index (excluding investment companies) benchmark fell 3.3% on the same basis.
The company's share price total return declined by 1.8% over the six months, meaning the discount at which the stock traded to net assets widened to 9.6% from 9.0%.
Shares in Henderson Smaller Companies Investment Trust rose by about 24% over the 12 months to November 30, and by 173% over the five years to that point, giving the company an annualised return of roughly 22% for that period.
"Shareholders will be fully aware of the many uncertainties now facing equity markets. However, as our results show, smaller companies remain a good investment for the long-term investor. In this ever and faster changing world, smaller companies have the ability to adapt more quickly to new and disruptive ways of doing business, they are better positioned to benefit from the domestic recovery and good investors can find companies that can continue to show attractive growth prospects, largely irrespective of the macroeconomic picture," Chairman Jamie Cayzer-Colvin said.
"Furthermore, these companies are often less well researched than larger ones, which present opportunities for the diligent investor. Performance supports this, as smaller companies have materially outperformed markets over the last ten years," Cayzer-Colvin said.
Shares in the trust closed down 3.8% at 605.00 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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Henderson Smaller Companies Trust