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Herald Investment Trust – From small acorns ….

HRI : Herald Investment Trust - Investing in the future

Herald Investment Trust – From small acorns …. – Herald Investment Trust (HRI) provided very strong returns during 2017 (NAV and share-price total returns of 26.9% and 32.7% respectively) with positive contributions coming from all of its regional portfolios.

During 2017, a significant proportion of HRI’s NAV performance came from 24 holdings, all of which at least doubled in share price terms. These stocks, which accounted for 8.2% of the portfolio at the beginning of 2017, contributed 63% of HRI’s aggregate return. This neatly illustrates that, in the technology space, a holding that might appear insignificant can very quickly become important once it starts to move. This also provides some validation of the manager’s strategy of maintaining an extensively diversified portfolio.

Despite HRI’s strong performance, and that of the broader technology sector, valuations have broadly been on an improving trend during the last 18 months, as earnings growth has outpaced price rises. The manager believes that the technology, media and telecoms (TMT) sectors offer an attractive source of growth in a low-GDP-growth world and that smaller companies continue to offer interesting investment opportunities.

Small-cap technology, communications and multi-media

HRI seeks to achieve capital appreciation through investments in smaller quoted companies, in the areas of TMT. Investments will be made globally, although the portfolio has a strong position in UK stocks.

Herald Investment Trust – From small acorns …. : HRI

180612 HRI Update QD

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