LONDON - Henderson European Trust (HET) has announced its annual results up to September 30, 2024, showcasing a strong performance with net asset value (NAV) and share price total returns of 16.6% and 20.5% respectively. These figures surpassed the returns of its benchmark, the FTSE World Europe (ex UK) index, which delivered a total return of 15.3%.
The past year was notable for HET, which was previously known as Henderson European Focus Trust (HEFT), as it completed a merger in July 2024 with Henderson EuroTrust (HNE). This strategic move saw the trust being promoted to the FTSE 250 index. At the year's end, HET reported net assets of approximately £664 million, a significant increase from £379 million in 2023.
The combination offered shareholders of both trusts a partial exit opportunity and was carried out at no cost to ongoing shareholders. This was largely due to the exit being executed at 2% below the fund's asset value and a contribution to costs from the manager.
HET's lead fund manager, John Bennett, retired during the year after a decade at the helm. The board expressed confidence in the capabilities of his successors, co-managers Tom O'Hara and Jamie Ross, to continue the trust’s approach to active management.
In recent weeks, there has been a general widening of discounts in European equity trusts, including HET. Market volatility is not confined to European trusts but appears to be driven by investor concerns over the policies of the incoming US administration regarding global trade, as well as market apprehensions leading up to October's Autumn budget.
Despite these short-term market movements, the board of HET has responded by continuing with buybacks to address the discount. The medium-term outlook for the trust remains positive, with a portfolio centered on companies that are global leaders in their respective fields, which are believed to be well-positioned to navigate future market developments.
This summary is based on a press release statement by Kepler Trust Intelligence and does not constitute investment advice or a recommendation to buy or sell securities. Investors are reminded that past performance is not indicative of future results and that investment values can fluctuate.
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