Henderson European Focus Trust : Annual Report 2022

022 ReportAnnual

Henderson European Focus Trust plc

Objective

The Company seeks to

maximise total return

(a combination of income and capital growth) from a portfolio of stocks listed in Europe.

Strategic Report

Performance	2-3
Chair's Statement	4-7
Portfolio Information	8
Fund Managers' Report	9-12
Investment Portfolio	13
Top Ten Holdings	14-15
Historical Information	16
Business Model	17-29

Governance

Board of Directors	31
Corporate Governance Report	32-38
Audit and Risk Committee Report	39-42
Directors' Remuneration Report	43-45
Directors' Report	46-47
Statement of Directors' Responsibilities	48

Financial Statements

Independent Auditor's Report to the Members	50-56
Financial Statements	57-60
Notes to the Financial Statements	61-74

Additional Information

Glossary	76
Alternative Performance Measures	77-78
General Shareholder Information	79
Service Providers	80

Front cover image: Louvre Museum, Paris, France

Holcim

Strategic

Report

1

Henderson European Focus Trust plc	Annual Report 2022

Performance

Year to 30 September

Total return performance over one year

0

-4

-8

%

-12

-13.1-12.8

Total return performance over multiple years

200
174.2	176.2
150
132.0
%100

-16

-20

-18.3

	75.8 72.3
50	52.1

1 year

Company net asset value ("NAV") per ordinary share

FTSE World Europe ex UK Index in sterling terms

Company share price using mid-market closing prices

Total returns include dividends reinvested and exclude any costs of reinvestment

12.8				20.1		15.9
	6.8		9.2							2.9
0
	3 years			5 years		7 years	10 years

Discount at year end1

Discount over one year2

15

12

9

%

6

3

0

14.0

2022

	0
	-2
	-4
	-6
%	-8
8.3	-10
	-12
	-14
	-16

	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
	21	21	21	21	22	22	22	22	22	22	22	22	22
2021		Company				AIC Europe sector average

Net assets at year end

Performance versus the benchmark over one year3

£ millions

400			110
350		370.7	105
300	314.4		100
250			95
200			90
150
			85
100
50			80
		Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
0			21	21	21	21	22	22	22	22	22	22	22	22	22
2022	2021	NAV			Benchmark			Share price

1. Calculated using the mid-market closing price
2. Graph shows the Company's share price discount per ordinary share as at each month end compared to the AIC Europe sector average of seven companies over the year to 30 September 2022, including the Company
3. Graph shows the Company's NAV total return per ordinary share and share price total return compared to the total return of the benchmark (FTSE World Europe ex UK Index) over the year to 30 September 2022 (rebased to 100)

Sources: Morningstar Direct, Janus Henderson, Refinitiv Datastream

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Henderson European Focus Trust plcAnnual Report 2022

Performance

Year to 30 September

NAV per ordinary share at year end1Share price at year end

2022		2022
147.7p		127.0p
20212		20212
173.4p			159.0p
Dividend for year3			Dividend yield4
2022	2022 Special	2022
4.35p	0.50p	3.4%
20212		2021
3.31p		2.1%
Ongoing charge for year			Net gearing at year end
2022		2022
0.77%		1.9%
2021		2021
0.80%		3.1%

Average number of investments in the year

2022 2021

45 45

1 NAV is calculated with debt at par value

2 Comparative figures have been restated due to the subdivision of each ordinary share of 50p into 10 ordinary shares of 5p each on 7 February 2022

3 Comprising an interim dividend of 1.20p paid in June 2022, a recommended final dividend of 3.15p and special dividend of 0.50p due for payment on 6 February 2023 4 Based on the dividends paid or recommended for the year and the share price at the year end, being the interim of 1.20p and final dividend of 3.15p, and excluding

the special dividend for the year of 0.50p

Sources: Morningstar Direct, Janus Henderson, Refinitiv Datastream

A glossary of terms and alternative performance measures is included on pages 76-78

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