John Bennett Director of European Equities | Portfolio Manager
This third-party results analysis provided by Kepler Partners focuses on the recently published interim results, for the six months to 31 March 2021.
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.
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.
Annual performance (cum income) (%)
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
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. 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 is not a guide to future performance. 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.
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.
If a trust's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
The trust may have a particularly concentrated portfolio (low number of holdings) relative to its investment universe and an adverse event impacting only a small number of holdings can create significant volatility or losses for the trust.
Where the trust invests in assets which are denominated in currencies other than the base currency then currency exchange rate movements may cause the value of investments to fall as well as rise.
This trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this trust.
Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
The trust could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the trust.
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 trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the trust. As a result losses (or gains) may be higher or lower than those of the trust’s assets.
The trust may use gearing as part of its investment strategy. If the trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a trust that does not use gearing.