3rd Aug 2015 14:29
LONDON (Alliance News) - Henderson Smaller Cos Investment Trust PLC Monday said it outperformed its benchmark as it reported a rise in its net asset value on a total return basis in its recently-ended financial year.
Henderson said its net asset value total return increased 20.4% in the year ended May 31, an increase on the 19.9% it reported the year before, and beating the 10.4% rise of its benchmark the Numis Smaller Companies Index (excluding investment companies). Its NAV per share stood at 754.1 pence, up from 637.6p.
Henderson said the outperformance came from a combination of underlying positive portfolio performance and a positive contribution from gearing in the company. Gearing started the year at 9.1% and ended it at 7.5%.
Henderson will pay a 13.5p dividend for the year, up from the 11.0p it paid the prior year.
"The last six years have been very positive for equity markets and particularly the smaller companies sector. Recent events like the UK general election have bolstered that performance, so investors may be concerned about how long this can last. Yet bonds and cash remain unattractive to investors, so there will continue to be a steady flow of funds into equities, which should help to maintain present levels," Chairman Jamie Cayzer-Colvin said in a statement.
Shares in Henderson were trading up 0.4% at 666.60p Monday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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Henderson Smaller Companies Trust