Interim Management Statement

RNS Number : 5832S

Henderson Eurotrust PLC

20 May 2009

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS 

20 May 2009

HENDERSON EUROTRUST PLC

Interim Management Statement 

Review of the period from 1 February 2009 to 30 April 2009

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments: 

The three months since the end of January (the company's 'third quarter') have seen the pace of bad economic news slow, but the pace of cautious company statements remain at about the same level. Few companies are trumpeting a return to 'good' news, but all have welcomed the easing of the 'bad' news. The scale of government stimulus has helped this process, and few are minded to be too concerned at this early stage about the scale of government debts. 

During March and April we have invested most of the company's cash, and at the end of the period the cash position was down to 1.7% from 8.9% at the end of January. This time of year tends to be the peak season for the payment of dividends, which contrary to what some people may have been led to believe, have tended to be held or even increased in the sort of companies which we have been holding.

The small increase in the company's holdings in Financials (notably Zurich FS and Banco Santander) made during March meant that we participated in some of the recent market rally, but certainly not all of it due to the less 'distressed' nature of our financial holdings. Cyclical stocks also rallied strongly, and our transport related holdings have risen as a result. Overall however, the good quality, reliable names which have served us so well during the last 18 months have tended to sleep through much of this recent rally. Put bluntly, we have not joined in what some have dubbed 'the dash for trash'.

The emphasis in the portfolio remains quality, combined with a high exposure to transport and logistics companies, which should benefit from any upturn when it materialises. 

Outlook

Markets have swung from extreme gloom at the end of February to extreme complacency at early May. Results for the first quarter of 2009 have tended to be in line with already cautious statements, and the outlook part of most results has urged shareholders and analysts to refrain from becoming too optimistic too soon. Perhaps we are past the worst in economies, but that does not mean that a recovery is round the corner. We have lagged the market in March and April because we have not jeopardised the quality of the portfolio in favour of recovery plays, which have generally doubled as it became clear that bankruptcy had been averted. Meantime results from our holdings have confirmed expectations for this year, and we remain confident in their prospects. The company is well placed with a judicious mix of quality and recovery and is the best performing European investment trust over 1, 3 and 5 years as at 30 April 2009, according to the AIC. 

Gearing: At the end of the quarter the company had no gearing, but a cash position of 1.7% (at 31 January 2009: cash position of 8.9%).

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Dividends:  An interim dividend of 3.0p per ordinary share, in respect of the year ending 31 July 2009, was paid on 1 May 2009 to holders on the Register of Members on 14 April 2009.  The ex-dividend date was 8 April 2009

Share Capital:  During the period the company bought back 18,000 shares at a price of 420 pence per share.

Accordingly, the issued share capital at quarter end was 23,048,063 ordinary shares of 5 pence each. There are no 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 2009	at 31 January 2009
Ordinary share price	429.8p	421.5p
Discount	-9.7%	-7.4%
Gross total assets	£109m	£105m
Net asset value (cum income)	476.2p	455.1p
Net asset value (ex income)	473.1p	453.7p
Gearing	0%	0%
Yield	1.86%	1.90%
Total Expense Ratio	0.90%	0.90%

(Source: Henderson/Fact Sheet)

Performance at 30 April 2009 (total return % change)

	6 months	1 year	3 years	5 years
Net asset value	9.78	-14.7	0.2	68.1
Share price	18.30	-11.6	-3.3	86.7
Benchmark *	7.32	-26.3	-11.1	39.3

(Sources:  Datastream and AIC)   * The benchmark is the FTSE World Europe (ex UK) Index 

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 April 2009	% of total assets
Fresenius Medical	3.6
Fresenius	3.5
Deutsche Post	3.3
Synthes	3.3
E.ON	3.3
Munchener Re	3.2
Vivendi	3.2
Grifols	3.2
Essilor	2.9
Syngenta	2.9
	----
Top 10 =	32.4

Top 10 Investments at 31 January 2009	% of total assets
Fresenius Medical Care	4.7
Synthes	4.6
Fresenius	4.5
Roche	3.8
Munich Re	3.6
Vivendi Universal	3.6
Grifols	3.0
Sodexo	2.8
Inditex	2.7
Bureau Veritas	2.5
	-------
Top 10 =	35.8

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Geographic Breakdown

	% at 30 April 2009	% at  31 January 2009
Denmark	2.9	3.2
France	21.4	18.8
Germany	30.3	27.0
Ireland	3.9	3.2
Italy	4.0	3.4
Netherlands	3.1	5.0
Spain	5.6	5.2
Switzerland	21.6	20.5
Others	5.5	4.8
Cash and Fixed Interest	1.7	8.9
Total	100.0 ====	100.0 ====

Sector Breakdown

	% at 30 April 2009	% at  31 January 2009
Oil & Gas	7.4	6.9
Basic Materials	5.2	3.7
Industrials	21.1	19.7
Consumer Goods	8.6	10.2
Health Care	22.2	24.7
Consumer Services	10.5	11.5
Financials	11.7	9.5
Technology	6.1	4.9
Utilities	4.6	-
Telecommunications	0.9	-
Cash and Fixed Interest	1.7	8.9
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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