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.