Why invest
Harness the attractive growth potential of the UK’s most dynamic smaller companies
The Henderson Smaller Companies Investment Trust gives investors access to the exciting capital and dividend growth potential of small and mid-cap UK companies .
Being smaller (but still FTSE-listed), these businesses are often overlooked and underappreciated, yet they have historically outperformed their larger peers over the long term. The portfolio is managed by an experienced and respected team committed to a so-called 4M methodology (Model, Management, Money, Momentum). The process involves undertaking hundreds of company meetings and looking ‘under the bonnet’ of businesses to identify opportunities for growth at a reasonable price.
Marketing Communication. Past performance does not predict future returns. The value of an investment and the income from it may go down as well as up and you may lose the amount originally invested. Past performance can be viewed here.
Why choose Henderson Smaller Companies Investment Trust?
Real growth potential
A smaller start can lead to greater growth. The trust’s approach is based on evidence that smaller companies have historically outperformed over time. The aim is to identify opportunities for both capital growth and dividend income growth by investing in high quality smaller companies that have the potential to expand meaningfully over the long term.
A methodical process
The trust is defined by a repeatable, pragmatic methodology we call the 4Ms – Model, Management, Money, Momentum, used for both selection of stocks and for reviewing their ongoing position within the trust’s portfolio. With smaller companies typically being less well-known, this repeatable process helps the team get into the weeds of each opportunity.
By combining long holding periods, rigorous stock selection and prudent use of gearing to ‘double down’ on growth potential, Henderson Smaller Companies has delivered consistent dividend growth* for its investors – and after 21 years of consecutive growth, making it an AIC Dividend Hero.
A robust team
The trust portfolio is managed by Neil Hermon and Indriatti van Hien, who are in turn supported by the wider Janus Henderson UK Equities Team. The portfolio benefits from a ‘consensus of differences’ – the idea that the individual perspectives of a team of qualified managers, working collaboratively but independently under one coherent strategy, helps provide a layer of added diversification and avoids the pitfalls of conformity. The team is given extra stability by the broader resources of Janus Henderson Investors and the oversight of the trust’s board of directors.
Manager's perspective
“The long-term drivers of UK small caps are still very much intact. Small caps exhibit faster organic growth than large caps, tend to have higher operating leverage, offer exposure to new technologies and services, and historically have benefitted from inbound M&A. Regardless of the direction of interest rates, we believe good smaller companies with resilient business models that demonstrate a combination of strong earnings momentum and attractive valuations can generate solid returns.”
– Indriatti van Hien, Fund Manager
