Has the recent market recovery in smaller company trusts left two opportunities behind?


Westhouse Securities investment trust analyst Paul Locke has identified two smaller company trusts that appear to have been left behind by the recent
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I think I prefer Dunedin with its c.2.9% yield (which has increased by c.2.5% annually over the last 7 years).


Henderson Smaller Companies is yielding 2.26% @david-penn so not far behind but their dividend growth over 5 years is 25% compared to Dunedin’s 2.5% growth according to the AIC data.

In terms of returns Henderson is 214% vs 156% over 3yrs, 300% vs 222% over 5 yrs, and 391% vs 322% over 10yrs.

For me I’d go for the Henderson fund.

Have to say though, I don’t though much about Dunedin Smaller Companies.


Sorry we should have included yield on that chart @david-penn & @malcolm.


For what it is worth, I prefer Henderson Smaller. I think it maybe better positioned going forward. It was certainly showing good progress before the sell-off. We shall see. Or, there is Rights and Issues, a split that has been around so long it is almost just two share classes with little gearing and a huge discount :slight_smile:


Yes I prefer the Henderson one too thoiugh Standard Life and Blackrock stand out for me too.


I’ll take a look at Rights & issues @james-pigott


Is there an investment ratinoale for Dunedin and Henderson over others in the sector beyond the current level of the discount compared to those peers? Hoping for a ‘catch up’ sounds more like a short term punt rather than a long term investment case. For the longer term, the existence of a discount ought to be seen as a bonus rather than being the primary motive.



rationale, even. And it isn’t even a Saturday night…


@jkstowe, please let me know what you think - either way!