Henderson Smaller Cos Investment Trust PLC on Thursday said it underperformed its benchmark index in a ‘disappointing’ financial year.
Henderson Smaller Cos Investment Trust is a London-based company that aims to maximise shareholders’ total returns by investing in smaller companies that are quoted in the UK.
The company reported a net asset value per share of 904.1 pence as at May 31, down 16% from 1,074.4p on the same date a year prior.
It reported a total NAV return of negative 13.8% in the year ended May 31. This compared to a negative 6.5% return from Henderson’s benchmark index, the Numis Smaller Companies Index, over the same period.
‘The year under review was disappointing: UK equity markets experienced difficult and volatile conditions and the company suffered negative absolute returns. The company also underperformed its benchmark, largely caused by growth stocks remaining out of favour,’ Henderson said.
More positively, the company recommended an increased final dividend of 19.0 pence. When added to the interim payment of 7.0p, this will bring the full-year payout to 26.0p, up 8.3% from the year prior.
Looking forward, Henderson said it remains cautious about the year ahead but said it is ‘well positioned’ and ‘prepared to take advantage’ of the investment opportunities that lie ahead despite the current uncertain market.
Shares in Henderson were down 1.1% at 739.00p on Thursday morning in London.
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