Interactive Investor

ii Super 60 investments:Henderson Smaller Companies IT

Asset GroupAsset Sub-GroupInvestment Category
EquitiesUK smaller companiesSmaller company

Selection rationale:
The smaller companies team at Janus Henderson benefits from leadership of the experienced Neil Hermon, manager of the trust since 2002 and an investor in UK smaller companies since 1993. Under his management, the trust has regularly outperformed its benchmark, the Numis Smaller Companies index, and 2019 was no exception.

Hermon’s main focus is growth stocks at the right price, often described as ‘growth at a reasonable price’ (or Garp) investing. He finds his investments mainly by meeting companies and assessing the managers and their strategy. He looks for ‘the four Ms’: model (a strong business model); management (managers with a good track record); money (strong balance sheets and cash flow); and momentum (good earnings momentum). He runs a well-diversified portfolio of more than 100 holdings and takes a long-term approach, holding stocks for more than five years on average.

Although the trust benefits from merger and acquisition activity, Hermon says he does not buy stocks with that in mind, though he admits it is nice if it happens. He is more focused on buying companies he believes can grow in the future.

September 2020

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.