Navigating pandora’s box
Tom O’Hara, Portfolio Manager of Henderson European Focus Trust provides an update on the Trust, highlighting the key drivers of performance year-to-date, the challenges businesses and consumers are facing, and outlines the risks to watch as the year progresses.
- Despite a challenging market environment, the Henderson European Focus Trust has held up relatively well, benefitting from its exposure to the energy sector. The Trust’s style-agnostic approach also proved beneficial.
- After buying into the consumer V-shape recovery in 2021, we have refined our consumer exposure in 2022 as the cost-of-living crisis intensifies. We have reduced our mass market exposure and are focusing on areas such as travel and leisure.
- The market outlook remains uncertain with risks stemming from China’s zero-Covid policy and its implications on supply chains, the pace of central bank interest rate hikes, and the impact of the cost-of-living crisis on consumers.
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