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 20 years of consecutive growth, the trust achieved AIC Dividend Hero status in 2023.
A robust team
The trust portfolio is managed by Neil Hermon and deputy manager 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
Neil Hermon and Indriatti van Hien, Fund Managers of The Henderson Smaller Companies Investment Trust, aim to translate small companies into big returns by investing for maximum future growth (at the right price). They do this by investing in companies that consistently meet the demands of their methodology, while being disciplined when those companies fall short of expectations.
“We’re long term in our approach – our average holding period is around five years. For us, it’s about finding those small and mid-sized companies that will give superior long term returns for investors.”
– Neil Hermon, Fund Manager
