Henderson European Focus Trust

European Equities

Rated Fund 2015-2018. Benefits from a move from growth to value

This fund won highly commended status in Money Observer's 2015 investment trust awards. It has been managed by John Bennett since 2010. He runs a high-conviction portfolio, with 50 to 60 holdings mainly in larger companies.Bennett describes himself as a 'value investor' and points to a strong earnings trajectory during 2017, particularly in bombed-out areas such as banks. The fund's largest sector weighting at the end of 2017 was to financials at 25 per cent. He believes Europe remains a 'catch-up play' and has further to run.Bennett looks for change or inflection points either at a sector level or at a company level. He says sectors and stocks are continually going in and out of fashion and it is sometimes necessary to look beyond Europe to spot when changes are going to happen. But he stresses that no company will get into the portfolio unless its share price is right. He likes to know there is a margin of safety and always considers the risk of making a loss. A key ingredient in his stock selection process is also meeting company managements.Bennett also runs open-ended European funds. He says that the trust's closed-ended structure allows him to invest in special situations that are too small or illiquid for inclusion in those funds but that can provide a useful boost to medium-term returns. Shares in the trust went to a 15 per cent discount to net asset value in mid 2016, but traded at around par for most of 2017.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Henderson European Focus Trust
Manager
Janus Henderson Investors Ltd
Type
Closed Ended Investment Company
ISIN
GB0005268858
Sector
Europe
Launched
01/01/1947
OCF
0.87 %
Risk Rating
3
3 Year Sharpe
0.45
3 Year Alpha
-3.91
Yield
2.4 %
Benchmark
FTSE World Eur Ex UK TR GBP
Fund Size
£ 266.58 million
NAV
1,375
Gearing
110
Discount Premium
-10
The Company will invest in a diversified portfolio of investments which is expected to contain between 50 and 60 stocks. The Managers focus on stock selection, primarily larger companies with strong balance sheets and above-average growth prospects. The aim will be to seek out inflection points at both stock and sector level where growth can be purchased at a reasonable price. Less emphasis will be given to geographical diversification. The portfolio will not be constructed with any yield target. Derivate instruments may be used for investment purposes for up to 10% of Net Assets.
Holding %
Carlsberg A/S B 4.96 %
Smurfit Kappa Group PLC 4.91 %
Nordea Bank AB 4.75 %
ABN AMRO Group NV DR 4.14 %
Autoliv Inc DR 3.92 %
Galp Energia SGPS SA 3.68 %
Trelleborg AB B 3.49 %
SAP SE 3.40 %
Nestle SA 3.19 %
United Internet AG 3.07 %
Region %
Eurozone 64.77 %
Europe - ex Euro 30.50 %
Sector %
Financial Services 23.18 %
Consumer Cyclical 15.26 %
Industrials 14.11 %
Consumer Defensive 13.11 %
Healthcare 11.75 %
Basic materials 8.04 %
Technology 6.17 %
Energy 5.14 %
Name
Janus Henderson Investors Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

John Bennett
Joined 12/03/2010

John Bennett is Director, European Equities at Janus Henderson Investors and Fund Manager on the Janus Henderson Continental European and Pan-European long-only and long/short strategies. He has held these roles since 2011 when Gartmore was acquired by Henderson. Prior to Gartmore, John served as fund manager at Global Asset Management for 17 years. During this time he managed their flagship European long-only and European equity long/short hedge funds. Prior to Global Asset Management, he was a fund manager at Ivory & Sime. John qualified as a member of the Chartered Institute of Bankers in Scotland in 1980.

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