Stellar results from Henderson Opportunities as it plans to amend investment objective and policy – Henderson Opportunities (HOT) has posted its annual results for the year to 31 October 2021. During this time, its NAV increased by 58% while its share price increased by 29%. This compares with a 3% return from its benchmark and a 44% return from its peer group average.
The company said the strong performance is a result of its diverse portfolio and breadth of UK companies held, not to any particular theme. Some of these investee companies are addressing relatively nascent but fast-growing end markets, such as the need to de-carbonise the global economy. Others are seeking to grow market share in already established end markets by bringing a different approach. However, all of them have strong management teams and many have been identified as potential next generation leaders in the UK in their particular sector areas.
Meanwhile the board has announced plans to make amendments to the Investment Objective and Investment Policy of the company at its next AGM. The principal amendment will allow flexibility for the company to invest up to 10% of its gross asset value in companies outside of the UK. This will not affect the investment strategy or process. The change is designed to address issues arising from corporate actions (such as spin-outs from existing holdings) that could result in HOT holding shares in an overseas entity.
Rather than making the company a forced seller in these circumstances, the managers require the flexibility to retain any holding if they consider this to be in the best interests of shareholders. Other amendments are designed to provide some flexibility in the number of individual investments held and to make the current investment policy clearer and are considered to be immaterial in their nature.
Wendy Colquhoun, chair, said: “While it now appears inevitable that interest rates will rise further, it seems likely that they will remain low if looked at in the context of the last fifty years. The Board believes that investing in companies that provide excellent goods or services to their customers should work as a good hedge against inflation as these companies can increase their prices to prevent margins being eroded by input cost increases. Given the fast rate of change in the economy the Fund Managers’ focus also needs to be on companies that are capable of adapting. Both the size of the Company and its highly flexible mandate allow the Fund Managers to pursue the best opportunities across the breadth of the UK market and to take the measures required to enable the Company to invest in the next generation of successful companies. For all of these reasons, the Board remains positive about the outlook for the Company.”
HOT : Stellar results from Henderson Opportunities as it plans to amend investment objective and policy