Herald Investment Trust NAV Performance (excluding income)
The Herald Investment Trust (HIT) seeks to achieve capital appreciation through investments in smaller quoted companies, in the areas of technology, communications and multi-media. Investments will be made throughout the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of components, equipment and services to these companies.
There is no relevant benchmark, so a hybrid is used as a measure of performance, which is 2/3rd the Numis Smaller Companies Index including AIM in the UK and 1/3rd the Russell 2000 Technology Index in the US.
Live Herald Investment Trust price available from the London Stock Exchange.
The value of the investments may fall as well as rise.The shares of HIT will generally trade at a discount or premium to the market value per share of its investments. Most of the investments have limited liquidity and may not be realised in part or in full at the market value at any one time. The Directors consider it inappropriate to attempt to control the discount for a portfolio of this nature.Directors
Ian Russell (Chairman)
Ian Russell was appointed to the board on 1 August 2018 and became Chairman in April 2019. He qualified as a chartered accountant, moving on to work in a number of finance roles in industry and banking. He joined Scottish Power plc in 1994, initially as Finance Director, becoming CEO in 2001, a role he held until 2006. Since then, he has concentrated on non-executive roles. Currently he is Chair of the National Museums of Scotland, Chairman of HICL Infrastructure Company Limited and Chair of the Scottish Futures Trust Limited. His career has given him experience in leadership roles in public companies, both in an executive and non-executive capacity, which he brings to the board.
Tom Black was appointed to the board on 1 May 2013. He is chairman of Thruvision Group plc (formerly Digital Barriers plc), and has advisory roles with a number of smaller unlisted businesses. He is chairman and trustee of the Black Family Charitable Trust, which is focused on supporting disadvantaged young people with their educational needs. He was previously chief executive of Detica Group Plc, a leading company in the field of large-scale information collection and analysis for intelligence and counter fraud applications. Tom is the senior independent director. As a successful entrepreneur he recognises the challenges of starting and growing an early-stage technology company and listing it on the London Stock Exchange. He understands the smaller companies remit of the fund.
Stephanie Eastment was appointed to the board on 1 December 2018 and is chair of the audit committee. After leaving KPMG in 1990 she held various accounting and compliance roles at Wardley and UBS before joining Invesco Asset Management in 1996. There she held a variety of increasingly senior roles, specialising in investment trusts. She left Invesco in July 2018 to pursue a non-executive career. Stephanie is currently a non-executive director and audit chair of Murray Income Trust plc and Impax Environmental Markets plc and a non-executive director of RBS Collective Investment Funds Limited. She has extensive accounting, corporate governance and investment trust sector experience. As a chartered accountant and company secretary she has honed her technical expertise, knowledge and contacts within the industry and provides constructive oversight and challenge not only as a director, but as the audit committee chair.
Henrietta Marsh was appointed to the board on 1 September 2019. She has a background in fund management, having worked in UK small cap and private equity investment over several decades, recently pursuing a plural career. From 2005 until 2011, she was AIM fund manager at Living Bridge Equity Partners. Prior to that, Henrietta spent 14 years at 3i in several roles, including as fund manager of 3i Smaller Quoted Companies Trust plc (1997–2002). Her earlier career was with Morgan Stanley and Shell. She is currently a non-executive director of Gamma Communications plc (AIM-listed), and a member of London Stock Exchange’s AIM Advisory Group. She has direct experience and understanding of the investment process required in the Company.
Karl Sternberg was appointed to the board on 21 April 2015. He was a founding partner of Oxford Investment Partners Limited from 2006 until 2013, when it was acquired by Towers Watson. Much of his earlier career was spent at Morgan Grenfell (which became Deutsche Asset Management), where he rose to become chief investment officer, Europe & Asia Pacific. Karl is a non-executive director of Clipstone Industrial REIT plc, Monks Investment Trust plc, Lowland Investment Company plc, Alliance Trust plc, JP Morgan Elect plc and Jupiter Fund Management plc. Mr Sternberg has announced his intention to step down from Lowland Investment Company plc as soon as its board has appointed a replacement non-executive director. He has significant investment trust experience and has good insight in the investment industry and the macroeconomic risks and influences.
James Will was appointed to the board on 21 April 2015. He was until 2014 chairman and a senior corporate finance partner of law firm Shepherd and Wedderburn LLP. He also headed the law firm’s financial sector practice. As a lawyer, he was for over 20 years involved in advising smaller quoted technology companies on a range of corporate transactions, including flotations, secondary fundraisings and mergers and acquisitions. James is chairman of both The Scottish Investment Trust PLC and Asia Dragon Trust plc. In an environment of increasingly complex legal and regulatory framework his legal counsel has a valued contribution.
Herald Investment Trust Responsible Investing
Herald Investment Trust’s objective can be summarised as being to achieve capital appreciation through investments in smaller quoted companies in the areas of technology, media and telecoms. This founding purpose – to invest in smaller companies – arose from Herald’s belief that they offer greater potential for growth than larger companies because they often provide greater entrepreneurialism when addressing new markets created by technological developments. This conviction led Herald to focus on investing in smaller quoted companies in the areas of telecommunications, multimedia and technology (‘TMT’). These companies create added value employment and have the potential to become the next generation of large companies, thereby generating attractive returns for shareholders.
As an externally managed investment company, Herald Investment Trust’s activities are all outsourced and therefore it does not have any employees. The Company also has a very limited direct impact on the environment as it has no greenhouse gas emissions and has given shareholders the option to receive soft copy financial reports and other information rather than printed hard copy. Notwithstanding that the Company has no direct social or community impact, the board encourages the manager to consider environmental, social and governance (ESG) factors when selecting and retaining investments. The Company has given discretionary voting powers to the investment manager, HIML. The manager votes against resolutions it considers may damage shareholders’ rights or economic interests.
The Company believes that it is in the shareholders’ interests to consider environmental, social and governance (ESG) factors when selecting and retaining investments and has asked the manager to take these issues into account as long as the investment objectives are not compromised. The manager does not exclude companies from its investment universe purely on the grounds of ESG issues but adopts a positive engagement approach whereby matters are discussed with management with the aim of improving the relevant policies and management systems and enabling the manager to consider how ESG factors could impact long term investment returns.
The manager’s statement of compliance with the UK Stewardship Code can be found under the Responsible Investing page of Herald Investment Management Limited’s web site. The manager’s policy has been reviewed and endorsed by the board of Herald Investment Trust plc.
Top 20 Holdings 31st December 2020
Ian Russell (Chairman)
20 Cursitor Street
Ltd Fifth Floor
100 Wood Street
Ernst & Young LLP
1 More Place
Herald Investment Trust plc
10-11 Charterhouse Square
Tel: 020 7553 6300
The Bank of New York
1 Canada Square
2879728 (England and Wales)
The Company is an investment company within the meaning of section 833 of the Companies Act 2006
Peel Hunt LLP
120 London Wall
Singer Capital Markets Ltd
One Hanover Street
Herald Investment Management Limited
10-11 Charterhouse Square
Tel: 020 7553 6300
Fax: 020 7490 8026
Link Market Services Limited
Tel: 01484 600900