Herald Investment Trust – Shifting sentiment

Herald Investment Trust (HRI) is approaching its 25th birthday. HRI’s manager, Katie Potts, has been at the helm since launch, delivering considerable outperformance of equity markets. She has seen significant swings in sentiment towards the technology sector over that time.

Growth stocks and the technology sector fell out of favour with investors towards the end of 2018. HRI held up better than the broader UK small cap market, but sterling weakness and worries about the UK’s future relationship with the EU weighed on returns relative to the US and large-cap dominated technology indices. Katie felt that the negative sentiment toward the sector at the end of 2018 was not reflected in reality and the recovery in stock prices in 2019, to date, suggests that investors are returning.

Small-cap technology, telecommunications and multi-media

HRI’s objective is to achieve capital appreciation through investments in smaller quoted companies in the areas of telecommunications, multimedia and technology. Investments may be made across the world, although the portfolio has a strong position in UK stocks.

The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.


wdt_ID Year ended Share price total return (%) NAV total return (%) Numis ex IC plus AIM (%) B’berg World Tech TR (%) MSCI World Index TR (%)
1 31/01/15 (4.5) 0.6 (6.5) 31.3 17.1
2 31/01/16 0.0 2.7 3.0 1.2 0.5
3 31/01/17 31.9 30.5 20.9 43.6 32.0
4 31/01/18 33.6 24.0 17.3 25.5 11.3
5 31/01/19 (1.7) 1.8 (9.6) 6.4 1.0