Interim Management Statement

RNS Number : 2626I

Henderson Eurotrust PLC

28 May 2014

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS

28 May 2014

HENDERSON EUROTRUST PLC

Interim Management Statement

Review of the period from 1 February 2014 to 30 April 2014

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Comments from our Portfolio Manager:

2014 started with huge enthusiasm for European equities on the back of optimistic economic and earnings growth forecasts. While economic news has continued to improve on the whole (it will never be a smooth path), earnings recovery now looks to be slower than originally anticipated, mainly due to currency headwinds.

During the three months we have returned to auto component supplier Continental, and sold out of Adidas due to concerns about its Russian exposure amongst other things. We have also reluctantly sold our long held position in Essilor after many years, as we fear that the underlying rate of organic growth has slowed. We have also sold SAP as we fear the transition to Cloud based services will be a disruptive process for longer than the market currently anticipates.

We expect European equity markets to make further progress this year, and although we have reduced the gearing slightly, we are expecting to use any significant market weakness as an opportunity to add to existing positions and rebuild our gearing.

Tim Stevenson

Portfolio Manager

Gearing: At the end of the quarter the Company had net gearing of 4.9% (at 31 January 2014: 7.2%)

Dividends:  An interim dividend of 5.0p per ordinary share, in respect of the year ending 31 July 2014, was paid on 25 April 2014 to holders on the Register of Members on 4 April 2014.  The ex-dividend date was 2 April 2014.

Discount: The share price discount to net asset value at 30 April 2014 was 0.8% (at 31 January 2014: 3.3%)

Share Capital:  No shares were bought back during the period. Accordingly, the issued share capital at 30 April 2014 was 20,390,541 ordinary shares of 5 pence each and the total number of voting rights was 20,390,541.

The Directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (excluding current financial year revenue items)

	at 30 April 2014	at 31 January 2014
Ordinary share price	837.0p	772.0p
Discount	0.8%	3.3%
Gross total assets	£181m	£172m
Net asset value (cum income)	843.5p	797.9p
Net asset value (ex income)	841.6p	797.9p
Net Gearing	4.9%	7.2%
Yield	2.0%	2.2%

(Source: Henderson/Fact Sheet)

Performance to 30 April 2014 (total return % change)

	3 months	6 months	1 year	3 years	5 years
Net asset value	6.3	5.9	19.7	36.3	98.5
Share price	9.1	6.5	27.6	56.6	120.5
Benchmark *	6.6	3.4	14.8	17.9	76.5

(Source: AIC)  * The benchmark is the FTSE World Europe (ex UK) Index

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 April 2014			Top 10 Investments at 31 January 2014
	% of Total Assets			% of Total Assets
Deutsche Post	5.5		Deutsche Post	5.4
Partners Group	3.3		AP Moller-Maersk	3.6
AP Moller-Maersk	3.2		Pandora	3.3
Fresenius	2.9		Fresenius	3.2
Novartis	2.8		Partners Group	3.1
Roche	2.8		Roche	2.8
Statoil	2.8		Novartis	2.7
Sodexo	2.7		Sodexo	2.6
Valeo	2.4		AXA	2.3
Fresenius Medical	2.3		Zurich Insurance	2.2
Top 10 =	30.7		Top 10 =	31.2

Geographic Breakdown

	% at 30 April 2014	% at  31 January 2014
Germany	25.6	26.4
France	22.3	19.4
Switzerland	21.3	22.9
Denmark	9.6	9.9
Sweden	5.6	5.6
Spain	4.5	4.7
Netherlands	4.2	6.8
Norway	2.8	1.9
Portugal	1.5	-
Italy	1.4	1.3
Austria	1.2	1.1
	-------	-------
Total	100.0	100.0
	====	====

Sector Breakdown

	% at 30 April 2014	% at  31 January 2014
Industrials	25.8	24.3
Financials	18.7	21.0
Consumer Goods	17.0	16.8
Health Care	15.2	15.8
Consumer Services	7.9	7.8
Technology	6.3	7.8
Oil & Gas	4.0	2.9
Basic Materials	1.8	1.7
Telecommunications	1.8	1.9
Utilities	1.5	-
	-------	-------
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 NAV and share price information, can be found on the Manager's website at www.hendersoneurotrust.com.

For further information, please contact:

Tim Stevenson Fund Manager Henderson EuroTrust plc Telephone: [phone]

James de Sausmarez Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

IMSKMGZKFRRGDZM