Henderson EuroTrust : Monthly Factsheet as at 31 August 2023

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 31 August 2023

Marketing Communication

Share price performance (total return)

Price (rebased)

	Benchmark
160	NAV (cum income)
140
120
100
80
60
40

Performance		6m		1y		3y		5y		10y
over (%)
	Share price	2.3	22.0	15.1	37.9	138.8
	(Total return)
	NAV		2.6		18.8		18.7		41.8		164.0
	(Total return)
	Benchmark	1.0	15.8	30.6	37.8	127.4
	(Total return)
	Relative NAV		1.6		3.0		-11.9		4.0		36.7
	(Total return)

Commentary at a glance

Performance

In the month under review the Company's NAV total return was -1.0% and the FTSE World Europe (Ex UK) Index total return was -2.4%.

Contributors/detractors

The holding in Novo Nordisk, along with holdings in the semiconductor sector, were significant positive contributors. DSM-Firmenich was the biggest detractor. Value-style stocks generally outperformed growth-style stocks during the month.

Company overview

Objective

The Company aims to achieve a superior total return from a portfolio of European (excluding the UK) investments where the quality of the business is deemed to be high or significantly improving.

Highlights

Seeking growth, quality and consistency from a selection of 35 to 55 European companies (ex UK) and an emphasis on total return.

Company information

NAV (cum income)

159.7p

20

0

Aug 18 Aug 19 Aug 20 Aug 21 Aug 22 Aug 23

Dividend history (pence/share)

4.0
3.5		Income		Income Special

3.0

2.5

2.0

1.5

1.0

Discrete year	Share price	NAV
performance (%) (total return)	(total return)
	30/6/2022 to	24.0		21.8
30/6/2023
	30/6/2021 to		-23.3		-18.5
	30/6/2022
	30/6/2020 to	24.2		20.3
30/6/2021
	30/6/2019 to		10.4		13.9
	30/6/2020
	30/6/2018 to	7.6		8.0
30/6/2019

Outlook

We will continue to retain a balanced portfolio of holdings by considering two types of business for investment. That is, those where we see the potential for high and sustainable investment returns that we think are undervalued by the market, and those companies where we can see a material improvement in medium-term business prospects.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

NAV (ex income)	157.3p
Share price	138.0p
Discount(-)/premium(+)-13.6%
Yield	2.7%
Net gearing	4%
Net cash	-
Total assets	£355m
Net assets	£338m
Market capitalisation	£292m
Total voting rights	211,855,410
Total number of holdings 47
Ongoing charges	0.75%

0.5

0.0

04

06

08

10

12

14

16

18

20

22

Please note that this chart could include dividends that have been declared but not yet paid.

The Company underwent a 10 for 1 stock split on 22 November 2021; comparative dividend figures have been adjusted to reflect this.

All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 31/08/23. © 2023 Morningstar, Inc. All rights reserved. The information

contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

(year end 31 Jul 2022)
Benchmark	FTSE World Europe (Ex
UK) Index

Overall Morningstar RatingTM 

As of 31/08/2023

Source: BNP Paribas for holdings information and Morningstar for all other data. Differences in calculation may occur due to the methodology used.

Please note that the total voting rights in the Company do not include shares held in Treasury.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.

How to invest		Find out more
Go to www.janushenderson.com/howtoinvest		Go to www.hendersoneurotrust.com

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 31 August 2023

Marketing Communication

Top 10 holdings	(%) Geographical focus (%)

Sector breakdown (%)

Key information

Novo Nordisk	6.8
TotalEnergies	5.2
Nestlé	5.1
Roche	4.3
Sanofi	4.2
ASML	3.5
LVMH Moet Hennessy Louis Vuitton	3.2
SAP	3.0
Safran	2.8
Airbus	2.8

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

France	32.1%
Switzerland	17.9%
Germany	15.9%
Netherlands	13.4%
Denmark	7.7%
Italy	5.0%
Spain	3.8%
Finland	1.7%
Portugal	1.3%
Austria	1.3%

The above geographical breakdown may not add up to 100% as this only shows the top 10.

 Health Care	20.7%
 Financials	17.5%
 Consumer	13.3%
Staples
 Industrials	13.2%
 Information	10.2%
Technology
 Consumer	9.7%
Discretionary
 Energy	5.2%
 Materials	5.0%
 Communicatio	3.9%
n Services
 Utilities	1.3%

The above sector breakdown may not add up to 100% due to rounding.

Stock code	HNE
AIC sector	AIC Europe
Benchmark	FTSE World Europe (Ex
UK) Index
Company type	Conventional (Ords)
Launch date	1992
Financial year	31-Jul
Dividend payment	April, November
Risk rating	Slightly above average
(Source: Numis)
	0.65% for net assets up
Management fee	to £300m. 0.55% for net
	assets above £300m.
Performance fee	No

Premium/(discount) of share price to NAV at fair value (%)

20
15
10
5
0
-5
-10
-15
-20
Aug 20	Aug 21	Aug 22	Aug 23

10 year total return of £1,000

3,000		Share price total return	Benchmark
2,500
2,000
1,500
1,000
500
0
Aug 13	Aug 15	Aug 17	Aug 19	Aug 21	Aug 23

All performance, cumulative growth and annual growth data is sourced from Morningstar. Share price total return is calculated using mid-market share price with dividends reinvested.

(See Annual Report & Key Information Document for more information)

Regional focus	Europe ex UK
Fund manager	James Ross 2018
appointment

James Ross, CFA

Fund Manager

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.

	How to invest			Customer services
	Go to www.janushenderson.com/howtoinvest			0800 832 832

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 31 August 2023

Marketing Communication

Fund Manager commentary

Investment environment

The weak equity market in August might be explained by

1. further rise in long-term interest rate expectations, along with increased evidence of weakening demand conditions, especially in areas of the market more dependent on a strong economy (such as industrials and consumer discretionary sectors). China has been a focal point for these concerns, as BASF (chemicals) has talked of a sharp drop in demand, Siemens (which has broad exposure to industrials) has seen a deteriorating order intake, ABB (electricals) called out the China market as being stubbornly weak, and Pernod Ricard (the spirits company) pointed to weak Chinese economic conditions resulting in lower consumer confidence.

Portfolio review

The Company returned -1.0%, outperforming the FTSE World Europe (ex UK) Index which returned -2.4%. This outperformance, which was driven entirely by stock specific factors, was despite the fact that leverage (borrowing) cost 10-15 basis points (bps) of performance and that value-style stocks outperformed growth-style stocks.

We have held Novo Nordisk since 2018. In this time, its shares have risen around 390% (while the wider market has returned 59%). Our investment thesis has changed very little since the purchase, and the only real

operational change over this period has been a successful strategic pivot towards weight loss (using an existing diabetes molecule). One might argue that the last five years have seen the biggest strategic shift Novo Nordisk has ever made, given the company has been almost entirely focused on diabetes over its 100-year history. In August, the company announced a successful cardiovascular trial for Wegovy (the latest iteration of its weight loss offering). This trial was very important since it will make global reimbursement for Wegovy significantly easier. We now know this drug not only helps patients lose weight, but can also significantly reduce the likelihood of that patient having a serious cardiovascular event. We think this should make governments, insurance companies and out-of-pocket patients much more willing to pay for the product, and Novo Nordisk's shares rallied significantly after the announcement.

Our positions in semiconductor companies have been a significant positive for performance over the past year. When we added to the Company's semiconductor position last summer, we did so to gain exposure to what we saw as a structural growth sector that had seen a heavy derating. We decided to initiate new positions in both BESI and ASM International, as both companies sell products in areas where they have technological leadership, very high market shares and strong pricing power. This has historically resulted in high margins and a high return on invested capital. Since we bought these two positions, the sector has performed well. BESI and ASM International have significantly outperformed their

more cyclical (more dependent on the economic cycle) and less-differentiated peers. August showed a continuation of these themes and the Company benefited both from the position in ASM International and from having no position in Infineon.

Once again, DSM-Firmenich underperformed. The company has been suffering from a handful of short-term issues such as soft vitamin pricing, deal-related disruption and slowing demand for supplements. We still like the holding as a long-term investment, and believe the merger of DSM and Firmenich has resulted in a higher-quality, more diversified business.

Pernod Ricard has also been an underperformer in recent months. In the short term, there are two key issues. First, the North American market has been slowing down and experiencing some wholesaler destocking after an exceptionally strong period of growth under Covid conditions. Second, the key Chinese market is not experiencing the strong recovery that many assumed would materialise once Covid restrictions were lifted. We are willing to look through these issues and are focused on the longer-term picture. China and India are two huge markets that remain extremely underpenetrated by Western spirit companies. We believe that growth in demand from these (and other) markets will persist over the medium to long term.

August was a quiet month for trading activity. The only trade of note was the complete sale of ABB. ABB is a position we have been gradually replacing with

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 31 August 2023

Marketing Communication

Schneider over the past few months, which in our view is

1. higher-qualitypeer trading at a similar valuation. This switch is now complete.

Manager outlook

We will continue to retain a balanced portfolio of holdings by considering two types of business for investment. That is, those where we see the potential for high and sustainable investment returns that we think are undervalued by the market, and those companies where we can see a material improvement in medium-term business prospects.

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 31 August 2023

Marketing Communication

Glossary

Discount/Premium

The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.

Net Asset Value (NAV)

The total value of a Company's assets less its liabilities.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Risk rating

The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the Company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

For a full list of terms please visit: https://www.janushenderson.com/en- gb/investor/glossary/