DIY Investor Magazine
|
Oct 2017
47
M&A deals are usually viewed as good news for
shareholders in the acquired company because as
owners of the business they receive payment - either
cash or shares, or both, in the acquiring company.
Many companies built up a war-chest of cash following
the financial crisis, reluctant to commit to major
investments in such an uncertain environment – but
as confidence has recovered they’ve been spending.
Dealogic says records were broken in 2015, with $4.7trn
of deals with 2016 still high at $3.8trn.
A RICH HISTORY
The Henderson Smaller Companies Investment
Trust has not always been in the business of smaller
companies. It was founded in 1887 as the Trustees
Executors and Securities Insurance Corporation, aiming
to beat UK government bonds. Its original Chairman
branched out into accountancy services eventually
forming Touche Ross, now part of Deloitte – one of
the biggest accountancy firms in the world. In 1992 it
started investing in smaller companies and in 2000 only
those from the UK; it is one of the oldest investment
trusts there is: surviving, adapting and evolving.
In 2002, in the wake if the dotcom crash, I became the
Trust’s fund manager; since then - 4 prime ministers;
various polarising US presidents; oil prices bucking
between $30 and $140 a barrel; Harry Potter and his
famous scar; a Middle-Eastern melt-down; a searing
global financial crisis; and the explosion of social media,
smartphones and apps.
Throughout these market twists and turns we
have delivered an average annual return of 17.9%,
outperforming the benchmark in 13 of the last 14 years.
The past doesn’t predict the future, but this would have
transformed £1,000 of your cash into over £12,000.
The information should not be construed as investment advice. Before entering into
an investment agreement please consult a professional investment adviser.
Past performance is not a guide to future performance. The value of an investment
and the income from it can fall as well as rise and you may not get back the amount
originally invested.
Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name
under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund
Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no.
2678531), Henderson Investment Management Limited (reg. no. 1795354), AlphaGen
Capital Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646),
Gartmore Investment Limited (reg. no. 1508030), (each incorporated and registered
in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE)
are authorised and regulated by the Financial Conduct Authority to provide investment
products and services.
