Henderson European Focus Trust (HEFT)

09/12/2021

Results analysis from Kepler Trust Intelligence

HEFT has delivered solid NAV returns this year, and shareholder returns have been buoyed by a closing discount…….

This week Henderson European Focus Trust (HEFT) reported its 2021 results for the year ending 30 September 2021. Over this 12-month period, HEFT reported a NAV total return of 22.6% and share price return of 28.8%, compared to the 22.0% return of its benchmark, the FTSE World Europe ex UK Index. This means that as of 30 September, HEFT's NAV return has managed to outperform its benchmark over one, three, five and ten years

Kepler View

In our opinion, HEFT demonstrates the benefits of its manager's 'balanced' approach to equity investing, intentionally eschewing strong stylistic biases within the trust. The team, led by John Bennett and Tom O'Hara, make a point of avoiding a bias toward growth or value, aiming to avoid the risk of substantial underperformance.

While John and Tom do consider macro factors in their approach, they are predominantly bottom-up stock-pickers, and since the start of 2021 the team have been increasingly overweight in companies which can benefit from the V-shaped recovery in consumer activity. This may act as a tailwind to the strategy, so long as the European consumer sector remains strong. The managers believe it will, thanks to the ongoing success of Europe's vaccine rollout and the supportive effects of European fiscal stimulus.

We believe that the team's balanced approach could appeal especially to those who are concerned about near term valuation risks, or the imminent inflation pressures that may unwind the associated 'long duration' trade, which has benefitted expensive, high growth stocks that have much of their potential future growth priced in today. Similarly, in a world where ESG investing has led to increasing sell pressures on a subset of stocks, investors may find the team's considered approach to ESG another attraction…..

CLICK HERE TO READ THE FULL REPORT

Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.