One of the areas worst affected by Brexit was UK small and mid-cap companies, which sold off heavily in the immediate aftermath of the referendum. These sorts of businesses tend to be more reliant on the health of the country's economy than the multi-nationals in the FTSE 100 and their share prices have recovered strongly in the last few months as the macro environment has held up better than many anticipated. Despite the reasonable performance, many small-cap investment trusts have experienced a significant de-rating with their shares moving on to a wider discount to net asset value (NAV). A good example is Henderson Smaller Companies (LON:HSL), which is one of the Winterflood investment trust team's recommendations for their 2017 model portfolio.... |
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