Interim Management Statement

RNS Number : 1907I

Henderson Eurotrust PLC

14 November 2008

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS 

14 November 2008

HENDERSON EUROTRUST PLC

Interim Management Statement 

Review of the period from 1 August 2008 to 31 October 2008

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments: The first three months of our financial year have seen unprecedented levels of volatility. We began this period with an economic outlook that was more cautious than that prevailing in the market at the time. We maintain that caution, but do not subscribe to the utter doom and gloom being pronounced by some commentators recently.

Recent huge bank bailout plans and lower interest rates are a reflection of how serious the monetary and fiscal authorities are taking the situation. The slowdown in economies is clearly far faster and more severe than ever experienced before, with the result that visibility is close to zero.  This is not a good environment for equities, and the value of most of our holdings has declined. In view of the more cautious stance which we have held for a while, and the generally more resilient nature of the earnings of the majority of our holdings, the value of the portfolio has declined by less than the index.

We have reduced our bank exposure to a tiny part of the trust, and have reduced holdings elsewhere. We have been taking advantage of some sharp falls to add to existing holdings as well as add some new positions. However at the end of October the cash position was about 8% of the trust, and we anticipate reducing our cash position going forward.

It is worth reiterating that although valuations may appear attractive, there is very little confidence in forecasts for 2009. We will continue to concentrate on companies with what we believe have sound financial structures and competent management.

Gearing: At the end of the quarter the Company had no gearing, but a cash position of 8% (at 31 July 2008: cash position of 4.5%).

Dividends:  After shareholder approval at the AGM on 13 November 2008, a final dividend of 5.0p (2007: 4.0p) plus a special dividend of 2.0p (2007: nil) per ordinary share will be paid on 18 November 2008 to shareholders on the register on 24 October 2008. The shares were quoted ex-dividend on 22 October 2008.

Discount: The share price discount to net asset value at 31 October 2008 was 15.3%

Share Capital:  During the period the Company did not buy back any shares. On 23 July 2008 the 237,000 shares held in treasury were cancelled.

Accordingly, the issued share capital at quarter end was 23,066,063. 

There are no other material events or transactions to report.

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PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance at 31 October 2008 (total return % change)

	6 months	1 year	3 years	5 years
Net asset value	-22.67	-21.9	15.2	63.8
Share price	-25.26	-27.4	3.7	65.7
Benchmark *	-31.30	-33.1	1.1	40.4

(Source: Datastream/Fact Sheet)   * The benchmark is the FTSE World Europe (ex UK) Index 

Financial Position (excluding current financial year revenue items)

	at 31 October 2008	at 31 July 2008
Ordinary share price	366.0p	469.0p
Discount	15.3%	10.9%
Gross total assets	£100m	£121m
Net asset value (cum income)	432.3p	526.4p
Net asset value (ex income)	431.7p	518.9p
Gearing	-	-
Yield	2.19%	1.49%
Total Expense Ratio	0.9%	1%

(Source: Henderson/Fact Sheet)

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 31 October 2008			Top 10 Investments at 31 July 2008
	% of total assets			% of total assets
Fresenius	4.7		Fresenius	4.6
Fresenius Medical Care	4.6		Fresenius Medical Care	4.3
Synthes	4.5		Vivendi Universal	3.9
Essilor	3.9		Sodexo	3.8
Roche	3.7		AP Moeller-Maersk	3.7
Vivendi Universal	3.7		Bureau Veritas	3.5
Sodexo	3.5		Synthes	3.4
Deutsche Boerse	3.4		Deutsche Post	3.2
Beiersdorf	3.1		Linde	3.2
Linde	2.9		Essilor	3.2

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Geographic Breakdown

	% at 31 October 2008	% at  31 July 2008
Germany	27.0	29.0
France	23.1	22.1
Switzerland	22.4	19.8
Italy	4.3	4.7
Netherlands	4.1	2.2
Denmark	3.3	6.5
Spain	2.0	2.8
Ireland	0.0	2.1
Cash & Fixed Interest	7.8	4.5
Others	6.0	6.3
	------	------
Total	100.0 ====	100.0 ====

Sector Breakdown

	% at 31 October 2008	% at  31 July 2008
Industrials	23.6	28.7
Health Care	23.6	20.3
Consumer Services	11.5	11.7
Consumer Goods	10.7	9.1
Financials	9.4	10.6
Oil & Gas	7.1	8.4
Basic Materials	3.8	3.0
Technology	2.5	2.5
Utilities	-	1.2
Telecommunications	-	-
Options	-	-
Cash and Fixed Interest	7.8 ------	4.5 ------
Total	100.0 ====	100.0 ====

The objective of Henderson EuroTrust plc is to invest predominantly in large and medium sized companies which are perceived to be undervalued in view of their growth prospects or on account of a significant change in management or structure. The Company's aim is to achieve a superior total return from a portfolio of high quality European investments.

The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date net asset value and share price information, can be found on the Manager's website at www.itshenderson.com

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For further information, please contact:

Tim Stevenson Fund Manager Henderson EuroTrust plc Telephone: [phone]
James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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