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
Henderson Investment Funds Ltd
Type
Closed Ended Investment Company
ISIN
GB0005268858
Sector
Europe
Launched
01/01/1947
OCF
0.84 %
Risk Rating
2
3 Year Sharpe
0.16
3 Year Alpha
-5.44
Yield
2.7 %
Benchmark
FTSE World Eur Ex UK TR GBP
Fund Size
£ 239.71 million
NAV
1,196
Gearing
100
Discount Premium
-8
The Company will invest in a diversified portfolio of investments, which is expected to contain between 45 and 60 stocks listed in Europe. Stock selection is not constrained by the Benchmark and the weightings of stocks are based upon the views of manager. It aims to seek to maximize total return (a combination of income and capital growth) from a portfolio of stocks. Less emphasis will be given to geographical diversification. The portfolio will not be constructed with any yield target. Derivative instruments may be used for investment purposes for up to 10% of NA.
Holding %
Carlsberg A/S B 5.41 %
Nokian Tyres PLC 4.72 %
SAP SE 4.04 %
Akzo Nobel NV 3.41 %
Autoliv Inc DR 3.41 %
Nestle SA 3.33 %
Roche Holding AG Dividend Right Cert. 3.15 %
Galp Energia SGPS SA 3.15 %
Deutsche Boerse AG 2.92 %
Tessenderlo Group NV 2.88 %
Region %
Eurozone 56.90 %
Europe - ex Euro 32.43 %
United Kingdom 6.32 %
Sector %
Financial Services 16.36 %
Industrials 15.93 %
Consumer Cyclical 15.46 %
Healthcare 12.84 %
Basic materials 11.16 %
Consumer Defensive 10.95 %
Technology 8.25 %
Energy 5.24 %
Name
Henderson Investment Funds Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Andrew McCarthy
Joined 09/24/2018

Andrew McCarthy is a Fund Manager on the European Equities Team at Janus Henderson Investors, a position he has held since 2018. Before joining Janus Henderson, he was a portfolio manager specialising in the industrial and consumer sectors with USS Investment Management Limited from 2007. Andrew was a project coordinator for European and private equities with Capital International Research Inc from 2003 and an analyst with Capital International Limited from 2001. He began his career with Fidelity Investments Ltd In 1998. Andrew received a BA (Hons) in philosophy from the University of Sheffield. He holds the Investment Management Certificate (IMC) and Chartered Financial Analyst designation.

John Bennett
Joined 12/03/2010

John Bennett is Director of European Equities at Janus Henderson Investors and Fund Manager on the Janus Henderson Continental European and Pan-European long-only and long/short strategies. John has held these roles since 2011 when his previous company, Gartmore, was acquired by Henderson. Prior to Gartmore, he 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. Before this, he was a fund manager at Ivory & Sime.

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