Interim Management Statement

RNS Number : 0927T

Henderson Eurotrust PLC

14 November 2013

 



HENDERSON EUROTRUST PLC

HENDERSON GLOBAL INVESTORS

14 November 2013

HENDERSON EUROTRUST PLC

Interim Management Statement

Review of the period from 1 August 2013 to 31 October 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 continued to perform well in the first three months of our financial year, but the Company has lagged the index by a small amount (0.3%). This reflects the market's renewed enthusiasm for recovery stories where we only have a relatively small exposure.

We have made a few changes in the three months, with a reduction of some of our more volatile banking positions, but also locking in profits on one or two more solid names such as Dassault Systemes and SES, as well as SCA. We also have also sold  Deutsche Boerse, which is a well run business in a difficult industry. On the purchase side we have returned to Ericsson, and added two potentially exciting names with Autoliv (car components based on safety) and Saint Gobain, both of which should do better as economies recover. We have also added Qiagen which is a German based company in areas related to healthcare, in particular pertaining to analysis.

We have marginally reduced the weight in financials compared with three months ago, and we also have a steady exposure to more economically sensitive names. With markets trading at what in our view appears to be rather elevated levels in the short term due more to very strong inflows to European funds rather than a dramatic improvement in earnings and economies, we have decided to be ungeared for the time being.

Gearing: At the end of the quarter the Company was not geared (at 31 July 2013: 4.0%)

Annual General Meeting:  The AGM was held on 14 November 2013 and all resolutions were duly passed.

Dividends:  Following shareholder approval at the AGM, a final dividend of 12.0p (2012: 11.5p) per ordinary share will be paid on 20 November 2013 to shareholders on the register on 18 October 2013.  The shares were quoted ex-dividend on 16 October 2013.

Discount: The share price discount to net asset value at 31 October 2013 was 1.4% (at 31 July 2013: 7.0%).

Share Capital:  No shares were bought back during the period. Accordingly, the issued share capital at 31 October 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 31 October 2013	at 31 July 2013
Ordinary share price	790.5p	724.0p
Discount	1.4%	7.0%
Gross total assets	£163m	£167m
Net asset value (cum income)	801.5p	778.3p
Net asset value (ex income)	801.5p	765.6p
Gearing	1.1%	4.0%
Yield	2.2%	2.3%

(Source: Henderson/Fact Sheet)

Performance to 31 October 2013 (total return % change)

	3 months	6 months	1 year	3 years	5 years
Net asset value	4.6	13.1	37.0	44.3	107.8
Share price	10.9	19.9	48.2	61.7	145.2
Benchmark *	4.9	11.0	32.5	27.8	83.2

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

(Source: Morningstar Funddata) 

THE PORTFOLIO (Source: Henderson Fact Sheet)                                 

Top 10 Investments at 31 October 2013			Top 10 Investments at 31 July 2013
	% of Total Assets			% of Total Assets
Deutsche Post	6.0		Deutsche Post	5.7
UBS	3.5		UBS	3.5
A P Møller-Maersk	3.4		Novartis	3.1
Sodexo	3.1		Fresenius	3.0
Roche	3.0		Roche	2.6
Novartis	2.9		Partners Group	2.5
Fresenius	2.9		A P Møller-Maersk	2.5
Partners Group	2.9		Adecco	2.4
Pandora	2.8		Deutsche Börse	2.4
Axa	2.4		Amadeus	2.4
Top 10 =	32.9		Top 10 =	30.1

Geographic Breakdown

	% at 31 October 2013	% at  31 July 2013
Germany	25.2	28.0
Switzerland	22.8	22.7
France	18.6	24.6
Denmark	8.9	5.6
Netherlands	8.3	5.3
Spain	5.4	4.0
Sweden	4.3	5.4
Norway	2.0	1.3
Austria	1.7	1.8
Italy	1.4	1.3
Finland	1.4	-
Total	100.0	100.0
	====	====

Sector Breakdown

	% at 31 October 2013	% at  31 July 2013
Industrials	25.1	23.2
Financials	21.7	25.9
Consumer Goods	16.5	16.2
Health Care	15.8	15.3
Consumer Services	6.5	6.5
Technology	5.3	4.8
Oil & Gas	3.7	3.1
Basic Materials	3.2	3.5
Telecommunications	2.2	1.5
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 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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