For financial professionals in the UK

Fund Manager December Commentary – Henderson EuroTrust

Jamie Ross, CFA

Jamie Ross, CFA

Portfolio Manager

11 Jan 2021

December saw continued equity market progress with rising Covid-19 case numbers not sufficient to offset the enthusiasm resulting from a Brexit deal and from vaccine optimism heading into 2021. The Trust outperformed in December to end a very successful year for performance.

Our best performing positions included Delivery Hero, Aixtron and Embracer. Delivery Hero, as well as being deemed a beneficiary of the ongoing Covid-19 restrictions, rallied strongly after announcing that their deal to acquire Woowa brothers in South Korea had received anti-trust approval. Aixtron has continued to benefit from strong semiconductor market fundamentals as well as progress with a significant technological trial with a large South Korean customer. Embracer has traded well and is progressing on its M&A ambitions.

Our worst performing positions included Unicredit, Telecom Italia and Cellnex. Unicredit suffered from the resignation of their well-respected CEO Jean Pierre Mustier and ensuing concerns about future capital allocation priorities. Telecom Italia sold off, alongside it’s sector, on very little news flow whilst Cellnex ended a very successful year with some profit taking.

We made limited trades in December and those that we did were opportunistic in nature. First, we sold our position in Anima, a position where we were hopeful of M&A as a second derivative impact of Italian banking consolidation; we are now less positive on any potential outcome here. We have also added to our position in Dialog. Finally, we added a position in KPN where persistent media reports suggest a strong likelihood of M&A.

We are confident in our positioning and 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.


Mergers and acquisitions (M&A): the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

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. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.


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.






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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.
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