Henderson Smaller Cos Investment Trust PLC on Wednesday said its net asset value fell on ‘challenging’ market conditions, but lifted its interim dividend.
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 815.9 pence at November 30, down 12% from 923.4 pence each a year ago.
NAV total return was negative 7.7%, underperforming against the Numis Smaller Companies ex-Investment Companies Index benchmark of negative 0.2%.
The underperformance in the six months to November 30 ‘was largely due to compressed valuations and deratings in the challenging market environment for smaller UK businesses’ the firm explained.
Henderson Smaller upped its half-year dividend by 7.1% to of 7.5p from 7.0p a year ago.
Looking ahead, Chair Peter Freer said: ‘The period under review was a challenging one for the company, but we do believe that inflation is moderating and expect interest rates to decline during 2024. Our portfolio of quality companies is well positioned to prosper in this environment and we share our fund manager’s belief that we have the potential to deliver strong total returns as the economic background improves.’
Shares in Henderson Smaller Cos Investment Trust were down 0.4% at 780.00 pence each in London on Wednesday morning.
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