Henderson Smaller Companies NAV rises 5% but underperforms benchmark

(Sharecast News) - Henderson Smaller Companies Investment Trust hailed positive returns from its portfolio on Wednesday but noted it had underperformed its benchmark.

In unaudited results for the half year ended 30 November 2025, the trust said its share price rose by 4.5%, reflecting improved sentiment despite discount pressures. Meanwhile, net asset value per share was up 5% on a total return basis.

This compared with the Deutsche Numis Smaller Companies ex-Investment Companies Index rise of 7.4% in total return terms.

Henderson attributed the underperformance versus the benchmark to negative contributions from stock selection and expenses, while gearing and the ongoing share buyback were positive contributors to performance.

"The negative contribution from stock selection reflects the strong performance of certain benchmark stocks that fall outside our investment criteria, which focuses on growth businesses with high-quality fundamentals trading at reasonable valuations and meeting liquidity requirements," it said.

In addition, the trust said there was a small number of company-specific issues in stocks it did own which impacted performance. "We continue to monitor and adjust our exposure to these stocks to reflect our analysis of and conviction in their future prospects," it said.

The company maintained its interim dividend at 7.5p a share.

Henderson's top 10 holdings include infrastructure firm Balfour Beatty, housebuilder Bellway, outsourcer Serco and pub group Mitchells & Butlers.