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
28/07
2010 | Div Yield
(Net) | Discount |
|---|
| 487.8 | 542.6 | 2.1 | -10.49 |
As at
29/07/2010
Source: Financial Express
Fund Manager's Commentary - June 2010
June has been a frustrating month. After the sell-off in May, the early part of June saw a gradual return to a feeling of slightly less gloom towards economies, but this was short-lived as gloom and despair returned with a vengeance at the end of the month.
Whilst we are neither complacent nor ignorant of the risks, we still feel that the combination of economic news and low valuation both seem to point to a better market outlook over the next twelve months. In our view, current despondency is more of a reflection of the reality of base effects rolling over (the second half of 2009 already saw a strong recovery), as well as a gradual understanding that growth will be slow and hard work for the next few years. In this stable low growth environment, we expect to see our more dynamic growth companies to continue their recent outperformance trend.
In June we made a few changes. Aegon has been sold, and we realised a good profit on the verification and certification company, Bureau Veritas. This leaves us with only SGS in this area, a company in which we have greater confidence. We have also sold our holdings of Nokia a few weeks before yet another warning, as we felt that the poor product line-up and management complacency do not warrant waiting any longer. A few weeks before taking this decision we had already added Ericsson, which is a leader in the infrastructure area and, it is clear that increased investment is coming in order to strengthen networks. We also returned to Lufthansa, as there is a sustainable improvement in profits due to freight and slightly better passenger demand.