Henderson EuroTrust plc: Half-Year Results
Portfolio Manager, Jamie Ross and Chairman Nicola Ralston discuss the half-year results for Henderson EuroTrust, including the key drivers of performance, changes made to the portfolio and the outlook for European equities over the coming months.
12 minute watch
Key takeaways:
- The Company’s NAV total return was up 12.5% outperforming both its benchmark and its peer group which returned 11.1% and 9.0%, respectively. The Board is also pleased to declare an interim dividend of 0.8p per ordinary share.
- Our success was mainly due to the strengths of individual stocks, particularly within financials, cyclical areas of the market or energy-related names. This included names such as UniCredit, Hermes and TotalEnergies.
- We are hopeful that this isn’t a transient period of strong performance for European equities, but instead is reflective of a more resilient economic outlook than feared by some, and a positive reappraisal of the quality of a range of European companies, some of which look best-in-class to us compared to global peers.
Past performance does not predict future returns
Net asset value (NAV)
The total value of a fund’s assets less its liabilities.
Cyclical
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.
Related insights
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.
Important information
Please read the following important information regarding funds related to this article.
- 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.
Specific risks
12 minute watch
- The Company’s NAV total return was up 12.5% outperforming both its benchmark and its peer group which returned 11.1% and 9.0%, respectively. The Board is also pleased to declare an interim dividend of 0.8p per ordinary share.
- Our success was mainly due to the strengths of individual stocks, particularly within financials, cyclical areas of the market or energy-related names. This included names such as UniCredit, Hermes and TotalEnergies.
- We are hopeful that this isn’t a transient period of strong performance for European equities, but instead is reflective of a more resilient economic outlook than feared by some, and a positive reappraisal of the quality of a range of European companies, some of which look best-in-class to us compared to global peers.