For financial professionals in the UK

Fund Manager March Commentary – Henderson EuroTrust

Jamie Ross, CFA

Jamie Ross, CFA

Portfolio Manager

12 Apr 2021

March saw strong equity markets. Performance has largely continued to be led by those stocks deemed to be rising rate beneficiaries and/or ‘reopening beneficiaries’. Having performed well year-to-date, our performance suffered a bit in March and the Trust lagged the index.

Our best performing positions included Telecom Italia, Stellantis and Kion. Telecom Italia is benefitting from two factors. First, domestic trading conditions seem to be stabilising after a long period of competitive pressure. Second, the potential merger of Telecom Italia’s fibre business with that of OpenFibre seems to be making some progress. Stellantis is a relatively recent initiation for us. The business was formed by the merger of Peugeot and Fiat Chrysler and we see potential scope for synergy realisation and an equity rerating. Finally, Kion is seeing a buoyant environment for its warehouse automation business – the company is very much a long-term beneficiary of the structural changes that accelerated under Covid 19.

Our worst performing positions included Prosus, Zur Rose and Stillfront. These three positions have one thing in common – they are all companies that flourished under Covid-19. As investors look to play the post Covid-19 recovery, we have seen some pressure on the share prices of these companies.

During the month, we sold our holding in Vivendi. Vivendi is a position that we have owned for a number of years. We have always felt that the music business (UMG) was an underappreciated asset but following the partial sell down and proposed IPO of this business, we are less interested in continuing to own the ‘rest of’ Vivendi.

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.


Equity rerating: Occurs when investors are willing to pay a higher price for shares, usually in anticipation of higher future earnings. In terms of bonds a re-rating can be assigned when the bond issuer’s ability to service and repay its debt improves (credit quality).


References made to individual securities should not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase the security. Janus Henderson Investors, one of its affiliated advisor, or its employees, may have a position mentioned in the securities mentioned in the report.

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.


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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.