Interim Management Statement

RNS Number : 2462H

Henderson Eurotrust PLC

25 May 2011

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS

25 May 2011

HENDERSON EUROTRUST PLC

Interim Management Statement

Review of the period from 1 February 2011 to 30 April 2011

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments:

Economic news from Europe has continued to be mixed over the period. The situation in Greece and Ireland has deteriorated and now includes Portugal, while the news from the strong 'Northern European' countries remains good. The company has no direct investments in Portugal, Greece or Ireland. By end April 2011 most results from companies for the first quarter of 2011 had been received, and these have tended to be encouraging. This therefore confirms our view on the importance of the quality of companies and their management and innate abilities and strengths.

The portfolio has appreciated by 8.6% on a Total Return basis in the three months, slightly ahead of the estimated 7.4% for the benchmark index. Having put in place a loan facility at the end of March, by end of April we had 3.7% gearing in the portfolio, as we are confident that good companies are performing well, and also we are in the peak dividend paying season. We have added a few new names (such as a return to Ericsson, BIC, and AXA, among others). We have sold Commerzbank (ahead of the most recent capital increase), Gemalto, Edenred and Beiersdorf. We remain very underweight in banks, with only one position.

We have occasionally bought some of our own shares for cancellation during the last three months. This is consistent with the statements we have been making over the last two years on buybacks.

Outlook

Companies are doing a better job than politicians, and are showing better prospects than national economies. There continue to be major macro-economic stresses, and these are highly likely to continue to be in the headlines. We are certainly not complacent in the face of these risks, but continue to concentrate on good quality, consistent and more reliable companies. That means that we frequently (but not always), pay a higher valuation level. In spite of the macro uncertainties, we remain positive on the prospects for European equity markets.    

Gearing: At the end of the quarter the Company was 3.7% geared (at 31 January 2011: 0%)

Dividends:  An interim dividend of 4.0p per ordinary share, in respect of the year ending 31 July 2011, was paid on 28 April 2011 to holders on the Register of Members on 1 April 2011.  The ex-dividend date was 30 March 2011.

Discount: The share price discount to net asset value at 30 April 2011 was 13.1% (at 31 January 2011: 9.9%)

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Share Capital:  During the three month period the Company bought back 62,000 shares all of which were cancelled immediately. Accordingly, the issued share capital at 30 April 2011 was 20,696,425 ordinary shares of 5 pence each and the total number of voting rights was 20,696,425.

Board: On 24 May 2011 the Company announced the immediate appointment of

David Marsh, CBE as a Director.

The Directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (excluding current financial year revenue items)

	at 30 April 2011	at 31 January 2011
Ordinary share price	579.5p	557.0p
Discount	-13.1%	-9.9%
Gross total assets	£143m	£128m
Net asset value (cum income)	666.6p	618.0p
Net asset value (ex income)	664.2p	617.2p
Gearing	3.7%	0%
Yield	1.90%	1.97%
Total Expense Ratio	1.43%	1.43%

(Source: Henderson/Fact Sheet)

Performance to 30 April 2011 (total return % change)

	3 months	6 months	1 year	3 years	5 years
Net asset value	8.61	12.04	19.76	24.50	45.60
Share price	4.77	9.80	17.43	24.49	36.08
Benchmark *	7.37	12.05	16.94	10.36	33.15

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

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THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 April 2011	% of total assets
Deutsche Post	4.4
Fresenius	3.6
Deutsche Telekom	3.4
Swedish Match	3.1
France Telecom	2.6
Kühne + Nagel	2.5
Legrand	2.5
Deutsche Börse	2.5
Atlas Copco Saipem	2.5 2.4
	----
Top 10 =	29.5

Top 10 Investments at 31 January 2011	% of total assets
Deutsche Post	3.7
Fresenius	3.5
Gemalto	3.2
Deutsche Börse	3.0
Swedish Match	2.9
Adecco	2.6
Philips Electronics	2.5
Givaudan	2.5
Roche	2.4
Kühne + Nagel	2.4
	-------
Top 10 =	28.7

Geographic Breakdown

	% at 30 April 2011	% at  31 January 2011
Germany	33.2	33.0
France	21.2	21.8
Switzerland	20.9	23.3
Sweden	10.0	8.1
Spain	4.4	4.3
Italy	3.9	2.2
Netherlands	3.2	3.6
Norway	1.9	1.6
Finland	1.3	2.1
Total	100.0 ====	100.0 ====

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Sector Breakdown

	% at 30 April 2011	% at  31 January 2011
Industrials	26.3	30.2
Consumer Goods	13.9	13.8
Health Care	10.7	11.3
Consumer Services	10.3	9.8
Technology	9.1	8.8
Financials	8.9	10.2
Oil & Gas	7.9	6.1
Basic Materials	6.9	6.6
Telecommunications	6.0	3.2
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.hendersoneurotrust.com.

For further information, please contact:

Tim Stevenson Fund Manager Henderson EuroTrust plc Telephone: [phone]

James de Sausmarez Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]

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Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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