Staying the course in turbulent times
In this podcast, Jamie Ross, Portfolio Manager of Henderson EuroTrust, discusses how the Trust has performed year-to-date, the challenges European investors are facing, how companies are adapting to stay competitive, and how he is navigating this market environment.
Key Takeaways
- It has been a tough start to the year for our growth and quality bias – growth stocks have struggled due to higher inflation and the prospect of faster-than-expected central bank tightening. The war in Ukraine and higher energy prices have also dented sentiment towards the region.
- Company margins are being squeezed by higher raw materials, labour, and energy prices. However, those with high gross profit margins, strong pricing power and can pass on cost increases are managing to sustain healthy margins.
- We are long term investors and growth; quality and consistency are at the core of everything we do. So we are using this difficult environment to add to existing holdings that we like and are buying new opportunities (Universal Music Group and Sartorius) at more reasonable valuations.
- We are now a “light green fund” under EU SDFR regulation – meaning we don’t invest in companies that derive more than 5% of their revenue from any of the following activities, the production of shale energy, palm oil, arctic oil and gas, the production or selling of tobacco or from involvement in the adult entertainment sector.
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. 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.
- 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.
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