Henderson EuroTrust plc invests predominantly in large and medium-sized companies which are perceived to be undervalued in view of their growth prospects or on account of significant changes in management or structure. The company aims to achieve a superior total return from a portfolio of high quality European investments.
Key Facts
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Experience counts
Henderson EuroTrust plc was launched in 1992 and has been managed by Tim Stevenson since 1994.
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Focus on quality
High conviction portfolio – typically 40-45 ‘best idea’ stocks – investing in mid-large cap European companies with a growth bias.
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Long-term approach
Low turnover portfolio – genuine ‘buy and hold’ philosophy.
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Unconstrained
No geographical or sector constraints – but no exposure to emerging European markets.
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Driven by stock selection
Performance is achieved by picking the right companies for the long term.
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Actively seeking growth
The manager can borrow in order to capture good opportunities without having to sell assets prematurely.
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Reasons to Invest
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Value for moneyThe trust has one of the lowest Total Expense ratio’s (TER) in its peer group at only 0.86%(Source: The AIC/FundData 18/08/09).
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Motivated to achieve
A performance fee closely aligns the interest of the manager with those of the shareholders.
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Top performerThe company is one of the top performing for total return in its peer group over a 1, 3, and 5 year period (Source: The AIC/FundData 18/08/09).
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Stand alone performanceThe consistent performance of the trust has been achieved without gearing the portfolio, though the manager has the ability to do so.
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Price
| Price | NAV
08/03
2010 | Div Yield
(Net) | Discount |
|---|
| 531.0 | 590.8 | 1.7 | -10.12 |
As at
09/03/2010
Source: Financial Express
Fund Manager's Commentary - December 2009
Despite ongoing concerns reawakened by developments in Dubai and Greece, consumers continued to spend and markets marched higher during December. Market sentiment is also very positive and the gap between market optimists and pessimists is now at its highest level since 2007 – possibly suggesting some cause for concern from a contrarian perspective. Earnings news flow has been subdued, but it is perhaps worthy of note that despite the overwhelming trend of companies beating analyst forecasts during the past two quarters, consensus EPS (earnings per share) forecasts for the European market have remained virtually unchanged since the summer.
The fund has had a strong December, helped by our continued light weighting in banks and impressive strength from names such as Fresenius SE. We reduced our holdings in UCB and Munich Re. We added opportunistic positions in both Deutsche Post and ING.
Our outlook remains cautiously optimistic as we move into 2010. In terms of positioning, we maintain our quality cyclical exposure theme as well as our holdings in good value longer term growth stories. Among the potential developments that we are monitoring for any change in the prevailing market trend is any sense that the Fed is preparing to move away from its accommodative stance. Myriad challenges remain for world economies in the coming year and 2010 promises to be another testing year for investors.