Interim Management Statement

RNS Number : 9402F

Henderson Eurotrust PLC

30 May 2013

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS

30 May 2013

HENDERSON EUROTRUST PLC

Interim Management Statement

Review of the period from 1 February 2013 to 30 April 2013

The Directors of Henderson EuroTrust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Comments from our Portfolio Manager:

European markets have made slow progress over the last three months, and the Company has outperformed the benchmark index by 1.8%. As a result, the Company is now only 1.3% behind the index over the Company's financial year, the nine months from 1^st August 2012 to end April 2013. Bear in mind that this means that the Company has given a total return of 27.2% over the nine months, while the benchmark index has risen by 28.5%.

We have made a few changes during the last three months, adding two banks which may be able to show a recovery over the next few years if European economies do finally start to improve. We have also added Akzo, Novo and Syngenta, and have sold out of the Electrolux, De Longhi and Carrefour positions, as we still feel that the European consumer will remain subdued for some time still. The overall number of holdings remains higher than our usual level, but we are not unduly concerned by that.

The overall make-up of the portfolio continues to be a judicial mix of quality growth companies, some of which have an element of economic recovery potential. We have also been building the weighting in financials, concentrating on either medium term recovery cases, or top quality banks such as UBS in wealth management. We have been using over 90% of our £15m borrowing facility over the last few months, and are likely to remain fully invested over the next few months as evidence of a small economic recovery worldwide increases.

Tim Stevenson

Portfolio Manager

Gearing: At the end of the quarter the Company was 9.5% geared (at 31 January 2013: 6.7%)

Dividends:  An interim dividend of 5.0p per ordinary share, in respect of the year ending 31 July 2013, was paid on 26 April 2013 to holders on the Register of Members on 5 April 2013.  The ex-dividend date was 3 April 2013.

Discount: The share price discount to net asset value at 30 April 2013 was 6.9% (at 31 January 2013: 7.2%)

Share Capital:  No shares were bought back during the period. Accordingly, the issued share capital at 30 April 2013 was 20,390,541 ordinary shares of 5 pence each and the total number of voting rights was 20,390,541.

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 2013	at 31 January 2013
Ordinary share price	670.0p	640.5p
Discount	6.9%	7.2%
Gross total assets	£160,677m	£150,098m
Net asset value (cum income)	719.4p	690.1p
Net asset value (ex income)	716.9p	689.6p
Gearing	9.5%	6.7%
Yield	2.46%	2.58%

(Source: Henderson/Fact Sheet)

Performance to 30 April 2013 (total return % change)

	3 months	6 months	1 year	3 years	5 years
Net asset value	5.0	21.1	28.2	36.4	41.8
Share price	5.4	23.6	37.8	44.1	52.8
Benchmark *	3.2	19.4	28.1	20.1	13.4

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

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 April 2013			Top 10 Investments at 31 January 2013
	% of Total Assets			% of Total Assets
Deutsche Post	4.9		Deutsche Post	5.1
SAP	2.9		Sodexo	3.2
Fresenius	2.8		SAP	3.0
Adecco	2.5		Fresenius	2.8
Roche	2.5		Deutsche Boerse	2.7
Deutsche Boerse	2.4		BIC	2.7
UBS	2.4		Adecco	2.6
ABB	2.4		Dufry	2.4
Amadeus	2.3		Roche	2.4
Dufry	2.3		Luxottica	2.3
Top 10 =	27.4		Top 10 =	29.2

Geographic Breakdown

	% at 30 April 2013	% at  31 January 2013
Germany	30.2	30.3
Switzerland	24.7	22.9
France	21.2	22.2
Sweden	5.8	6.8
Italy	3.9	5.0
Netherlands	4.8	4.6
Spain	3.4	2.9
Others	6.0	5.3
Total	100.0	100.0
	====	====

Sector Breakdown

	% at 30 April 2013	% at  31 January 2013
Industrials	25.2	26.4
Financials	22.2	18.1
Consumer Goods	15.4	20.2
Health Care	13.3	11.7
Consumer Services	6.9	8.5
Technology	5.8	5.8
Basic Materials	5.5	3.1
Oil & Gas	4.4	4.3
Telecommunications	1.3	1.9
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.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]

- ENDS -

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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