For financial professionals in the UK

Fund Manager November 2021 Commentary – Henderson EuroTrust plc

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Jamie Ross, CFA

Jamie Ross, CFA

Portfolio Manager

22 Dec 2021
3 minute read

In November, the Trust had a disappointing month and we continued to struggle for performance.

Our main issue in recent weeks has been that we had been gradually increasing our exposure to areas of the market that we see as likely to benefit from the post-Covid recovery and, with the emergence of some restrictions in Europe and then the Omicron variant, this positioning hurt us. Our biggest losers included Stellantis, Faurecia and Safran. This has been a very frustrating month, but we see substantial value in our post-Covid recovery names and expect to benefit as the environment improves. Our biggest winners were the opposite side of this trade; Roche, Hermes, Delivery Hero and Zur Rose.

Over the past few weeks, we have been realigning the portfolio and this is now largely complete. We have worked to increase our cyclical exposure heading into 2022 (via companies such as SKF, Safran, Arkema and Total), we have reduced position sizing in our earlier-stage tech companies (Delivery Hero, Sinch and others) and we have balanced our sector exposure. The intention is to better position the portfolio to benefit from the post-Covid recovery whilst aiming for a more neutral cyclical/defensive tilt (we have been meaningfully overweight defensives) and a slightly more diversified portfolio (more stock specific risk, less factor/sector/thematic risk).

In summary, this has been a very disappointing period of performance, and we have taken action and made changes to our positioning. We will continue to retain balance in our exposures by considering two types of business for investment; those where we see high and sustainable returns that are undervalued by the market and those companies where we can see a material improvement in medium term business prospects.

Cyclical Expand

Companies that sell discretionary consumer items, such as cars, or industries highly sensitive to changes in the economy, such as miners. The prices of equities and bonds issued by cyclical companies tend to be strongly affected by ups and downs in the overall economy, when compared to non-cyclical companies.

Thematic Investing Expand

Thematic investing is characterized as a top-down investment approach that capitalizes on opportunities created by macroeconomic, geopolitical, and technological trends. These are not short-term swings – but long term, structural, transformative shifts.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.


Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.


The information in this article does not qualify as an investment recommendation.


Marketing Communication.






Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions.
    Specific risks
  • If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
  • The Company may have a particularly concentrated portfolio (low number of holdings) relative to its investment universe - an adverse event impacting only a small number of holdings can create significant volatility or losses for the Company.
  • Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
  • This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
  • The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.