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


#1

Westhouse Securities investment trust analyst Paul Locke has identified two smaller company trusts that appear to have been left behind by the recent
[See the full post at: Has the recent market recovery in smaller company trusts left two opportunities behind?]


#2

I think I prefer Dunedin with its c.2.9% yield (which has increased by c.2.5% annually over the last 7 years).


#3

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.


#4

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


#5

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:


#6

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


#7

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.

 


#8

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


#9

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