Henderson EuroTrust plc

The Henderson EuroTrust aims to grow shareholders’ money over the long-term and does this by investing in well-known large and medium-sized companies in Europe, excluding the UK.

What does it do?

The Trust aims maximise the return for investors from both capital and income by investing in high quality European companies, but excluding the UK.

How does it do it?

Part of the approach comes from sheer experience. Tim Stevenson has managed the trust since 1992 over the years has got to know the companies in which he invests very well and also where in Europe is good and not so good.

Tim looks for companies that can grow and can increase the returns to the Trust as a shareholder. That includes the return from dividends which means that shareholders in the trust can expect the team to aim for a return from capital but also from income too.

Why does Jamie do it?

My area of expertise is what I call established Europe. I’m not going to start investing in Russia or emerging or esoteric markets. I prefer established European countries and the well established companies there. That means I follow my own experience which is in medium sized and larger companies in those countries.

I do tend to take a long term view. One of the companies I’m proudest of is Inditex which has been in the portfolio since it came to the market in 2001. The company has been very successful for us over the years, and I do tend to run a ‘buy and carefully monitor’ approach which means we can stay invested for a very long time. Of course, I’m not making a recommendation to buy or sell Inditex here, but it has served me well over the years.

I enjoy making the decisions in the portfolio, but I’m backed by an incredibly strong team. I wouldn’t be able to do what I do without them.

What are the Risks?

Share prices go up and down. If you sell your shares at a lower price than you bought them, you will have lost money. You should be comfortable with this risk before investing. See Step 2 for more information on risk, if you haven’t already.

Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.

This Trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this Trust.

The return on your investment is directly related to the prevailing market price of the Trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Trust. As a result losses (or gains) may be higher or lower than those of the Trust’s assets.

Where the Trust invests in assets which are denominated in currencies other than the base currency then currency exchange rate movements may cause the value of investments to fall as well as rise.

The Trust may borrow money (gearing) as part of its investment strategy. If the Trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a trust that does not use gearing.