The net asset value (NAV) of Henderson EuroTrust went into reverse over the past month, reflecting the turbulence in European markets in the wake of the Greek debt impasse. A double-digit discount also prompted the trust to buy back shares, but it remains at a 10.4 per cent discount - cause for concern for manager Tim Stevenson.
That said, Mr Stevenson retains a positive market outlook, although tempered by his assertion that the European economy is "clearly not returning to a period of rampant growth". Some confidence is reflected in the recent addition of Swiss recruiter, Adecco to the Henderson portfolio, as Mr Stevenson clearly expects employment levels to improve over the second half of this year.
In terms of the funds geographic breakdown, the trust has allocated 77.7 per cent of its investments between Germany, France, Switzerland and the Netherlands.
Over the past year, Henderson Eurotrust has recorded a 37 per cent rise in NAV, which is at the bottom end of the sector average. However, it's worth bearing in mind that the portfolio demonstrated a degree of resilience as valuations plunged in the six months post Lehman Brothers, when it contracted by a relatively modest 15.9 per cent.
Mr Stevenson may not have been quite so opportunistic as some other managers when European markets began to recover, but a 11.6 per cent annualised return over the past five years, combined with a 1.89 per cent yield, is a solid return.
| HENDERSON EUROTRUST (HNE) | |||
|---|---|---|---|
| PRICE | 529.5p | NAV | 591.19 |
| SIZE OF FUND | £122m | PRICE DISCOUNT TO NAV | 10.43 |
| No OF HOLDINGS: | na | 1 YEAR PERFORMANCE | 37.09%* |
| SET UP DATE | 06 Jul 92 | 3 YEAR PERFORMANCE | 1.3%* |
| MANAGER START DATE | 31 Oct 94 | 5 YEAR PERFORMANCE | 11.61%* |
| BETA | 0.97* | TOTAL EXPENSE RATIO | 0.85%* |
| VOLATILITY (3Y) | 5.45%* | YIELD | 1.89% |
| TRACKING ERROR | na | GEARING | 106.156 |
| SHARPE RATIO (3Y) | 0.07* | MORE DETAILS | henderson.com |
Source: Thomson Datastream & *Morningstar
Performance as at 23 April 2010
Top ten holdings (as at 28 February)
| Holding | Percentage |
|---|---|
| Fresenius | 4 |
| Roche | 3.2 |
| Sodexo | 3.2 |
| Essilor | 3.1 |
| Nestle | 2.9 |
| Swedish Match | 2.8 |
| Sampo | 2.8 |
| Linde | 2.7 |
| AP Moller-Maersk | 2.6 |
| Syngenta | 2.5 |
Sector breakdown
| Sector | Percentage |
|---|---|
| Industrials | 21.8 |
| Healthcare | 14.9 |
| Financials | 12.9 |
| Consumer Goods | 11.3 |
| Cosumer services | 10.6 |
| Oil & Gas | 8.5 |
| Basic Materials | 8.3 |
| Technology | 7.2 |
| Telecommunications | 2.9 |
| Utilities | 1.6 |
