RCS - Henderson Smllr Cos - Edison's update on Henderson Smaller Cos Inv Trust
12/05/2023 07:15
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230512:nRSL1644Za&default-theme=true RNS Number : 1644Z Henderson Smaller Cos Inv Tst PLC 12 May 2023 London, UK, 12 May 2023 Edison issues update on Henderson Smaller Companies Investment Trust (HSL) Henderson Smaller Companies Investment Trust (HSL) has been managed by Neil Hermon for the last 20 years. He explains that small-cap stock price weakness in 2022 was due to valuation compression and was not a reflection of lower earnings; in essence macroeconomic events outweighed business trends at the micro level. However, the manager believes the interest rate cycle is close to peaking given that inflation is rolling over and the UK economy is relatively weak. Hermon considers the valuations of small-cap UK growth stocks to be 'very appealing' and believes that there could be a significant pickup in merger and acquisition (M&A) activity in a more robust economic environment when credit is more freely available. HSL's 13.5% share price discount to cum-income NAV is wider than the 9.0% to 12.7% average range of discounts over the last one, three, five and 10 years. However, once the trust's performance is back on track and investor risk aversion declines, there is scope for HSL to be afforded a higher valuation, more befitting of its strong long-term pedigree. Click here (https://www.edisongroup.com/research/weak-sentiment-outweighing-operational-strength/32300/?utm_campaign=RNSreach%20Press%20Releases&utm_source=RNSreach&utm_medium=Press%20Release) to view the full report or here (https://share.hsforms.com/1oblhr6JEQuO1Xfg7Nnb10g3k1vq) to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com (http://www.edisongroup.com) About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority (https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN) . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Mel Jenner +44 (0)20 3077 5700 investmenttrusts@edisongroup.com (mailto:investmenttrusts@edisongroup.com) Learn more at www.edisongroup.com (http://www.edisongroup.com) and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ (http://www.linkedin.com/company/edison-group-/) Twitter www.twitter.com/Edison_Inv_Res (http://www.twitter.com/Edison_Inv_Res) YouTube www.youtube.com/edisonitv (http://www.youtube.com/edisonitv) This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRAEAKSFFAEDEFA