Henderson Small NAV up 40%

Small cap-focused trust Henderson Smaller Companies comfortably outperformed its benchmark last year as NAV rose by 40.1%.Net assets rose to £208m, from £156m, in the year to May while NAV hit 277p, up from 202p. The Hoare Govett Smaller Companies Index, the fund's benchmark, rose by 29.6%."The stock market has moved ahead strongly over the past year, albeit subject to a high degree of volatility as sentiment about the vigour of the recovery fluctuates. Nevertheless, valuations are reasonable and companies' profitability, cash flows and balance sheets are generally in good order, in marked contrast to the public finances of much of the world." says Neil Hermon, the portfolio manager."There are plenty of reasons to be positive about equity markets. Valuations are low by historic standards and compare well to other asset classes. Corporate profitability has proved remarkably robust and earnings look set to see reasonable growth in the coming year," he added.