Henderson European Focus Trust PLC on Thursday said its net asset value per share was down, while declaring an increased final dividend alongside a special dividend to shareholders.
The London-based investment trust said NAV per share on September 30 was 147.70 pence, down 15% from 173.40p a year earlier.
NAV total return during the financial year that ended September 30 was negative 13.1%, narrowly behind the comparative benchmark of negative 12.8% from the FTSE World Europe ex UK Index. Henderson European Focus posted a positive total return of 23% a year earlier.
Shares in Henderson European Focus were down 0.1% to 146.55p in London on Thursday at midday.
It declared a final dividend to shareholders of 3.15p, up 34% from 2.35p a year earlier, taking the total financial 2022 dividend to 4.35p, up 31% from 3.31p. It also declared a special dividend of 0.50p, which it did not declare a year earlier.
Henderson European Focus stressed NAV and share prices outperformed the benchmark index over 3, 5, 7 and 10 years. It also added the share price on December 6 was 17% higher than at the end of its financial 2022, reflecting a recovery in underlying investments value and a narrower discount at 10%.
‘While there are many sources for concern for investors, our fund managers make a strong case for a European equity market that has to a large extent already priced in a ’normal’ recession. In the near term there could well be further tumult, not least as central banks test the resilience of the global financial system by reversing over a decade of loose monetary experimentation,’ said Chair Vicky Hastings.
She continued: ‘But, on any longer-term horizon - for which the closed-end structure is designed - Europe now abounds with opportunities to invest in quality, cash-generative companies, which are able to pass through the scourge of inflation.’
Hastings added Henderson European Focus predicted the price of money warranted a return to valuations ‘based on realism rather than euphoria’, meaning investment opportunities will come at attractive valuations.
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