Fund Profile

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Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Henderson European Trust. 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.

Overview
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Overview

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%.

Kepler View

Under Tim the trust had a great run in terms of performance, and his ex-UK ‘quality growth’ style of stock picking has been passed onto Jamie Ross. Jamie has come to the helm of the portfolio at a particularly tricky time, with the political and economic situation making many investors shy away from the region. This has meant that we have seen the discount widen considerably, largely due to factors beyond the managers control.

We see this as a great opportunity for investors to diversify their portfolios and gain exposure to some of the unique companies that Europe has to offer. Since Jamie has taken control of the portfolio we have a clear shift to become increasingly concentrated, and it has been decided among the board that gearing will become a more consistent feature. This gives Jamie the opportunity to generate high levels of alpha and, in turn, could see the discount come in considerably when appetites for the trust return.

BULL
BEAR
Exceptional track record of outperformance relative to peers and the benchmark
Jamie is a less experienced new manager without a long-term track record in European equities
New manager’s punchy style enables potential for strong alpha generation
Uncertainty continues to cloud investor sentiment towards Europe
Discount is at a historically wide level




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Fund History

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02 Oct 2024 Hot property
Are the stars aligning for a revival in the fortunes of the REIT sector?
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Rewatch this webinar as part of our October online series 'Global equities in a year of change' hosted by the team at Kepler Trust Intelligence...
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24 Jul 2024 Go big or go home
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22 Jul 2024 Flash update: Henderson European
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10 Jul 2024 Things can only get better
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29 May 2024 Results analysis: Henderson European Focus Trust
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15 May 2024 Why'd you have to go and make things so complicated?
European growth may be more complicated, and positive, than we suspected...
24 Apr 2024 Is ESG finished?
Two of our analysts debate whether it’s time to give up on ESG…
26 Mar 2024 Flash update: Henderson European Focus (HEFT) and Henderson EuroTrust (HNE) proposed merger
What are the benefits of the Proposed merger of Henderson European Focus Trust (HEFT) and Henderson EuroTrust (HNE)?
13 Mar 2024 Roller coaster ride
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17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
13 Dec 2023 Results analysis: Henderson European Focus Trust
A focused portfolio of European ‘Global Champions’
05 Dec 2023 Don’t Panic!
Our analysts look for value against a backdrop of bombed out investment trust discounts…
08 Nov 2023 Once more into the breach?
With yawning discounts across the board, some sectors have been hit harder than others - our analysts think there could be value there for those with the sangfroid to fight for it...
13 Nov 2023 Martin Currie Global Portfolio and Henderson European Focus Trust
Zehrid Osmani and Tom O'Hara
Rewatch this webinar which is part of our November online event 'Discounted opportunities in a tough market'...
Watch Recording
21 Jun 2023 Fund Analysis
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14 Jun 2023 Let's go round again?
Discounts have ballooned across the investment trust world, but our analysis shows we've been here before...
25 May 2023 Results analysis: Henderson European Focus Trust
HEFT: outperformance comes from a pragmatic and flexible approach...
19 Apr 2023 Are we nearly there yet?
We look at which trusts have done best year to date, and ask where there may be value…
16 Mar 2023 Diversity matters
We examine the effect of blending multiple funds within your regional allocation and find that – while the culture wars may rumble on elsewhere – the benefits of diversity for investors are unarguable…
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
08 Dec 2022 Results analysis: Henderson European Focus Trust
HEFT’s valuation sensitivity and strategic flexibility look well suited for a troubled economic period…
05 Oct 2022 European equities: Oui ou non?
Our analysts go head to head on the prospects for investors looking to the continent for prospective investments...
07 Sep 2022 Fund Analysis
HEFT has generated good recent performance, and trades at an attractive discount…
27 Jul 2022 Has the comeback begun?
Our analysts debate whether the market has fully priced in the current inflation and looming recession…
08 Jul 2022 Fund Analysis
HNE’s fund manager has doubled down on high-quality companies in the recent market rout, with the trust trading on a wide discount…
25 May 2022 Results analysis: Henderson European Focus Trust
HEFT has shown strong resilience despite the headwinds facing Europe, thanks to a committed valuation discipline…
25 Mar 2022 Slides and Audio: Henderson European Focus Trust
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23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
02 Feb 2022 Fund Analysis
HEFT’s stylistic balance has allowed it to outperform over myriad market environments, yet it trades at an attractive discount…
08 Dec 2021 Results analysis: Henderson European Focus Trust
HEFT has delivered solid NAV returns this year, and shareholder returns have been buoyed by a closing discount…
01 Dec 2021 Fund Analysis
HNE’s discount has widened recently despite its impressive risk/return profile…
06 Oct 2021 Slides and Audio: Henderson EuroTrust
Download the presentation and listen to the audio from our 'Now that's what I call a discount!' Autumn conference on 30 September...
09 Sep 2021 What next for European equities?
After a strong period for European equity markets, we ask whether this trend can continue…
10 Jun 2021 Green is good!
2021 will see billions dedicated to sustainable initiatives, which brings with it a host of possible investment opportunities...
10 Jun 2021 Fund Analysis
HEFT offers investors flexible exposure to Europe, with a current tilt toward value supporting the potential for returns…
27 May 2021 Results analysis: Henderson European Focus Trust
HEFT is positioned for the next leg of Europe’s pandemic recovery, having outperformed its benchmark over the last six months…
28 Apr 2021 The next value opportunity?
Two of our analysts debate whether Europe's improving vaccination programme will be the next opportunity for investors in their pursuit of returns...
05 Mar 2021 Fund Analysis
Active re-positioning around the COVID-19 recovery means HNE continues to widen its outperformance….
16 Dec 2020 My haven’t you grown!
How sustainability has gone from zero to hero in 2020…
28 Oct 2020 Fund Analysis
HNE has outperformed in each of the three phases in markets this year, yet trades on a discount of 9.3%...
15 Oct 2020 Nice guys finish first
ESG has moved from hippy pipe-dream to corporate mainstream, but what is it really and where do we see opportunities?
19 Aug 2020 Has the time come for Europe?
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29 Jul 2020 To be, or not to be (geared), that is the question
Gearing is part of the toolkit that trusts use to outperform OEICs. But how is it best implemented?...
05 Jun 2020 Deep impact
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05 Feb 2020 The best form of defence
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27 Jan 2020 Fund Analysis
HEFT’s wide discount offers an attractive entry point into an increasingly actively managed portfolio…
18 Dec 2019 The squeeze continues: how trust costs keep falling
As pressure on costs remains, we reveal which trusts have achieved the most significant reductions in 2019….
12 Dec 2019 Fund Analysis
The new manager is now outperforming, meaning HNE’s current discount is an interesting proposition…
26 Jun 2019 Measure for measure
In the first of a two-part series, we examine the tools investors can use to assess how active a manager actually is…
24 Apr 2019 Nothing compares to EU
Currently one of the financial world's most unloved regions, we look at the sectors that are unique to Europe and how the persistent pessimism has presented attractive opportunities…
24 Apr 2019 Fund Analysis
Henderson EuroTrust (HNE) offers a great opportunity for investors to diversify their portfolios and gain exposure to some of the unique companies that Europe has to offer...
03 Apr 2019 Nice guys finish first
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28 Nov 2018 Every cloud...
The endless grinding negativity of Brexit has driven investors away from Europe in scores, leaving rich pickings for opportunistic buyers...
26 Nov 2018 Fund Analysis
Having had the longest-tenured manager in the sector, a new manager is taking the reins and making some subtle changes to the portfolio.
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16 Oct 2018 The Investment Trust Advantage
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30 May 2018 Forza Italia!
Recent weeks have seen Italy's rocky relationship with the EU thrust into the spotlight once again, but we think volatility for European equities may be a buying opportunity...
30 May 2018 Fund Analysis
This fund has the longest-tenured manager in the sector, with an impressive consistency of outperformance of the benchmark...
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