Interim Management Statement

RNS Number : 5430V

Henderson Eurotrust PLC

29 May 2008

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS 

29 May 2008

HENDERSON EUROTRUST PLC

Interim Management Statement 

Review of the period from 1 February 2008 to 30 April 2008

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments: The volatility in markets which was seen in January continued through February and March, with intense nervousness about banks and the financial system. Looking back at this period, the decision by the US Federal Reserve to force a bail out of Bear Sterns coincided with a recovery in sentiment towards banks, helped by the announcement of huge capital increases by a number of banks. 

Economic news has tended to be mixed, with clear signs that the US economy is now slowing, and that European economies are following that trend. The comments made in the Half Year Report remain relevant, namely that the next debate will be about how long and how deep a recession. The consumer is currently bearing the brunt of the bad news in most countries, squeezed between higher food and energy prices and in many cases higher borrowing costs, given the reluctance of the European Central Bank to cut rates while inflation remains strong. 

Sterling has depreciated sharply against European currencies, and this has helped the Company's assets which are predominantly Euro or Swiss Franc denominated.

The portfolio moved to an almost fully invested position during February and March but without any gearing. The Portfolio Manager feels that there could be a nervous patch for markets to work their way through in the summer, before there is greater clarity on the economic situation. 

Gearing: At the end of the quarter the Company had no gearing, but a cash position of 1.8% (at 31 January 2008: cash position of 4.8%).

Dividends:  An interim dividend of 3.0p per ordinary share, in respect of the year ending 31 July 2008, was paid on 2 May 2008 to holders that were on the Register of Members on 4 April 2008.  The ex-dividend date was 2 April 2008.

Share Capital:  During the period the Company bought back 35,000 shares at a price of 447 pence per share which are held in treasury.

Accordingly, the issued share capital at quarter end was 23,303,063 ordinary shares of 5 pence each, which included 70,000 shares held in treasury.  

There are no other material events or transactions to report.

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PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (excluding current financial year revenue items)

	at 30 April 2008	at 31 January 2008
Ordinary share price	499.0p	449.5p
Discount	12.1%	13.1%
Gross total assets	£132m	£120m
Net asset value	567.8p	517.1p
Gearing	-	-
Yield	1.4%	1.3%
Total Expense Ratio	1.0%	1.0%

(Source: Henderson/Fact Sheet)

Performance at 30 April 2008 (total return % change)

	6 months	1 year	3 years	5 years
Net asset value	1.0	-0.3	72.0	147.3
Share price	-2.9	-7.1	60.5	142.0
Benchmark *	-2.6	1.5	71.1	132.5

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

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 April 2008
	% of total assets
AP Moeller-Maersk	4.2
Fresenius	4.2
Sodexo	3.9
Fresenius Medical Care	3.7
Essilor	3.7
ABB	3.6
Deutsche Post	3.5
SGS	3.3
Inditex	3.1
Linde	3.0 -----
Top 10 =	36.2

Top 10 Investments at 31 January 2008
	% of total assets
AP Moeller-Maersk	4.5
Fresenius	4.4
Inditex	4.0
Fresenius Medical Care	4.0
SGS	3.8
Sodexo	3.6
Essilor	3.6
Puma	3.0
Beiersdorf	2.9
SAP	2.9 ------
Top 10 =	36.7

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Geographic Breakdown

	% at 30 April 2008	% at  31 January 2008
Austria	-	1.0
Denmark	7.1	7.1
France	21.6	17.6
Germany	25.1	24.0
Ireland	2.1	3.8
Italy	6.4	8.0
Netherlands	2.0	3.5
Spain	3.0	3.9
Switzerland	18.5	16.0
Others	12.4	10.3
Cash and Bonds	1.8    ------	4.8 ------
Total	100.0 ====	100.0 ====

Sector Breakdown

	% at 30 April 2008	% at  31 January 2008
Oil & Gas	8.5	4.5
Basic Materials	3.0	2.7
Industrials	32.3	32.2
Consumer Goods	10.6	15.1
Health Care	16.6	16.8
Consumer Services	10.2	9.1
Financials	10.4	7.7
Technology	6.6	7.1
Cash and Fixed Interest	1.8 ------	4.8 ------
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 NAV and share price information, can be found on the Manager's website at www.itshenderson.com

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]

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