Interim Management Statement

RNS Number : 3343D

Henderson Eurotrust PLC

30 November 2009

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS 

30 November 2009

HENDERSON EUROTRUST PLC

Interim Management Statement 

Review of the period from 1 August 2009 to 31 October 2009

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments:  The three months since 1 August have seen European markets continue to make advances, in spite of a sharp sell off towards the end of October. Smaller markets (where we have limited exposure) have tended to perform best. The German market lagged others, in spite of the election result,which was seen as positive for the economy and market. 

During the three months we have made a number of changes in the portfolio. Our holdings in Eon, Grifols, Neopost, UCB, Unilever and Vivendi Universal have all been sold, mainly on concerns that growth would not recover to the extent that the market has been anticipating for these companies.

On the purchase side we have added both STM Microelectronics and ASML, increasing the Company's exposure to technology. We have also added to those companies that should benefit as economic recovery gathers pace, such as Daimler, Maersk and Siemens. In order to participate in the theme of growth in savings we have added both ING and Aegon. 

Finally we have been working for a number of months on arranging a borrowing facility for the Company. This will be available soon. During the period under review we have also increased the quantity of buybacks of our own shares.

Outlook: Markets continue to be optimistic about the pace of economic recovery. This is probably correct, given the extent of monetary and fiscal easing around the world. As a result, we have been running the fund close to fully invested. As detailed above, we have added a variety of quality names that should see earnings recover strongly through 2010 and 2011. At the back of our mind, however, is the concern that the pace of recovery will be slower at some stage (ie a levelling off after a "V" shaped recovery).

We are conscious that markets may see some levelling off as tightening concerns begin to assert themselves. We feel we are well positioned for such a development which is likely to lead to the market focussing once more on some of the more reliable growth names which we have continued to hold. 

Gearing:  At the end of the quarter the Company was 0.6% geared (at 31 July 2009: cash position of 1.2%).

Annual General Meeting: The AGM was held on 12 November 2009 and all resolutions were duly passed. 

Dividends:  Following shareholder approval at the AGM, a final dividend of 6.0p (2008: 5.0p) plus a special dividend of 2.0p (2008: 2.0p) per ordinary share was paid on 17 November 2009 to shareholders on the register on 16 October 2009. The shares were quoted ex-dividend on 14 October 2009.

Discount: The share price discount to net asset value at 31 October 2009 was 4.1% (at 31 July 2009: 9.3%)

Share Capital: During the three month period the Company bought back 980,000 shares all of which were placed in Treasury. Accordingly, the issued share capital at the quarter end was 22,968,063 and the total number of voting rights was 21,988,063. Since 1 November 2009 the Company has bought back a further 283,000 shares; all of which have been placed in Treasury.  

There are no other material events or transactions to report.

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PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance at 31 October 2009 (total return % change)

	3 months	6 months	1 year	3 years	5 years
Net asset value	8.8	10.3	21.7	9.8	78.8
Share price	13.7	16.9	38.3	11.0	95.4
Benchmark *	10.9	20.8	29.6	4.5	60.0

(Source:  Morningstar/Funddata)   * The benchmark is the FTSE World Europe (ex UK) Index 

Financial Position (excluding current financial year revenue items)

	at 31 October 2009	at 31 July 2009
Ordinary share price	495.0p	442.0p
Discount	4.1%	9.3%
Gross total assets	£113m	£112m
Net asset value (cum income)	516.0p	487.4p
Net asset value (ex income)	514.7p	478.2p
Gearing	0.60%	-
Yield	1.82%	1.81%
Total Expense Ratio	0.85%	0.85%

(Source: Henderson/Fact Sheet)

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 31 October 2009			Top 10 Investments at 31 July 2009
	% of  total  assets			% of total assets
Beiersdorf	3.5		Fresenius Medical Care	3.6
Fresenius	3.3		Fresenius	3.4
Bureau Veritas	3.0		Munich Re	3.1
Linde	2.9		Syngenta	3.0
Zurich Financial Services	2.9		Roche	2.9
Roche	2.9		Grifols	2.8
Nestlé	2.7		Vivendi Universal	2.8
Munich Re	2.7		Linde	2.7
Inditex	2.7		Bureau Veritas	2.7
Sodexo	2.6		Synthes	2.6

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Geographic Breakdown

	% at 31 October 2009	% at  31 July 2009
Germany	27.2	25.5
Switzerland France	20.2 20.1	21.5 23.1
Netherlands	8.3	3.6
Spain Finland	5.4 4.1	9.2 -
Italy	4.0	3.7
Ireland	3.4	3.4
Denmark	-	1.9
Others	7.3	6.9
Cash & Fixed Interest	-	1.2
	------	------
Total	100.0 ====	100.0 ====

Sector Breakdown

	% at 31 October 2009	% at  31 July 2009
Financials	21.3	16.2
Industrials	17.8	12.4
Health Care	14.7	22.0
Consumer Goods	13.8	11.2
Consumer Services	8.3	12.3
Oil & Gas	8.3	6.7
Technology	6.6	6.1
Basic Materials	4.3	5.6
Telecommunications	3.4	2.8
Utilities	1.5	3.5
Cash & Fixed Interest	-	1.2
	------	-------
Total	100.0 ====	100.0 ====

The objective of Henderson EuroTrust plc is to invest predominantly in large and medium sized companies which are perceived to be undervalued in view of their growth prospects or on account of a significant change in management or structure. The Company's aim is to achieve a superior total return from a portfolio of high quality European investments.

The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date net asset value and share price information, can be found on the Manager's website at www.itshenderson.com

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For further information, please contact:

Tim Stevenson Fund Manager Henderson EuroTrust plc Telephone: [phone]
James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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