Henderson EuroTrust

Last updated 24 April 2019
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Henderson EuroTrust (HNE) has a strong track record and the new manager shares all the hallmarks of his predecessor...

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Henderson EuroTrust. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Henderson EuroTrust

Henderson EuroTrust (HNE) aims to deliver superior total returns from a portfolio of high quality European (ex UK) companies.

Tim Stevenson retired from the team at Janus Henderson in February 2019 after more than two decades at the helm. Jamie Ross has taken over as the lead manager, after being appointed deputy fund manager on EuroTrust in March 2017 and then co-manager at the start of October 2018. Jamie joined Janus Henderson as a graduate in 2007, starting in European equities before moving to be a co-manager on the Henderson UK Alpha Fund (OIEC).

The investment process has not changed since the new manager took the reins, and his style is the same. Searching for good quality, reliable companies remains at the heart of the approach, with the end goal of delivering investors consistent returns. Jamie looks for companies that have strong market positions, strong balance sheets, consistent growth and quality management, and believes Europe is an excellent hunting ground to do so.

As Tim did, Jamie has biases towards particular sectors and the company’s largest overweight is towards the healthcare sector. Moreover, IT, communication services and industrials also represent significant portions of the portfolio. As well as looking at companies on a sectoral basis, the manager likes to look at companies based on three broad classifications; compounders, improvers and special opportunities.

The trust has an exceptional track record, and over the past nine calendar years the trust is yet to underperform the benchmark. With this said, Jamie has taken over the portfolio in a particularly challenging environment, with political and macro-economic uncertainty surrounding Europe. Although the trust was unable to generate positive returns over 2018, most of the losses have been recovered in the first quarter of 2019 and since the start of the year has generated 10.7% NAV returns. Alongside total returns the trust offers a, far from small, dividend. The manger aims to provide a growing level of income, and the trust currently yields 2.8%, well ahead of the weighted sector average.

Over the past few years we have seen the trust’s discount fluctuate greatly. As of April 2019 the trust has trading at a discount close to 10%, considerably wider than its one-year average of 8.5%. Currently, the AIC sector weighted average is 9.2%.

William Sobczak
William joined Kepler Partners in February 2018 as an investment trust analyst. Prior to joining, William graduated from the University of Western Australia, with a BSc in Psychology.

Fund History

Related Research

Key facts

Investment objective

The Company aims to achieve a superior total return from a portfolio of high quality European (excluding the UK) investments.

As at:

23/04/2019

Group/Investment

Henderson EuroTrust

Ticker

HNE

Management Company

Janus Henderson

Manager Name

Jamie Ross

Association of Investment Companies (AIC) Sector

Europe

12 Mo Yield

2.61%

Dividend Distribution Frequency

Semi-Annually

Latest Market Capitalisation

£231,452,035.43

Net gearing

3%

Latest Ongoing Charge Ex Perf Fee 

0.81%

Shares Outstanding

 21,185,541

(Discount)/ Premium (Cum Fair)

-9.14%

Daily Closing Price

10.93p

Disclaimer

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

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