Kepler Research – Henderson European Focus Trust Results Analysis
This third-party results analysis provided by Kepler Partners focuses on the recently published interim results, for the six months to 31 March 2021.
Key takeaways:
- For that period HEFT reported a NAV total return of 13.6%, outperforming the 11.9% return of its benchmark, the FTSE World Europe ex UK Index.
- The managers continue to actively position the trust around the varying phases of the pandemic recovery. The most recent change has been a substantial increase in its exposure to consumer discretionary stocks, in preparation for an expected recovery in consumer spending resulting from Europe’s vaccine rollout and increased consumer savings.
- HEFT trades on an 8.9% discount as of 25 May 2021, despite generating strong long-term returns. HEFT has generated a five-year NAV total return of 90.5% to the same date, beating the 81.9% of its FTSE World Europe ex UK benchmark.
Read the full analysis on the Kepler Research website
Net asset value (NAV) – The total value of a fund’s assets less its liabilities.
Total return/Absolute return – The total return of a portfolio, as opposed to its relative return against a benchmark, is measured as a gain or loss, and stated as a percentage of a portfolio’s total value.
Discretionary stocks – A classification for goods and services that are considered non-essential by consumers, such as entertainment, leisure activities, and automobiles.
Discrete year performance % change (updated quarterly)
31/03/2020 to 31/03/2021
29/03/2019 to 31/03/2020
30/03/2018 to 29/03/2019
31/03/2017 to 30/03/2018
31/03/2016 to 31/03/2017
Share Price
50.3
-9.8
-9.0
-0.6
40.1
NAV
42.3
-5.6
0.3
2.6
27.6
All performance, cumulative growth and annual growth data is sourced from Morningstar
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.
- 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
