In QuotedData’s morning briefing 31 January 2024:
- Henderson Smaller Companies Investment Trust (HSL) announced its results for the half year ended 30 November 2023. NAV total return fell by 7.7% during the six month period, while the benchmark Numis Smaller Companies ex-Investment Companies Index was almost flat, and the AIC UK Smaller Companies sector average NAV declined by 3.7%. HSL’s share price total return fell by 5.8% during the six months. The underperformance during the period was largely due to compressed valuations and deratings in the challenging market environment for smaller UK businesses. Growth stocks continued to remain out of favour. Chair, Penny Freer commented: “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. The Board is encouraged by the strong performance seen in the final months of the period under review and since the period end.”
- Residential Secure Income (RESI) posted a 2.1% drop in NAV to 80.1p per share for the quarter to 31 December 2023. With dividends (of 1.03p), the total return for the period was -0.7%. This was due to a 10 basis points outward movement in its investment portfolio yield, which saw the value of its retired living and shared ownership portfolio fall by 0.6% to £343m. The group did increase portfolio rents by 1.3% on a like-for-like basis. The company has made headway on the sale of its Local Authority portfolio, having exchanged on the sale for £5.8m of assets in line with book value. The remainder of the portfolio is under offer. The proceeds from the sales will be used to pay down floating rate debt.