Henderson EuroTrust : Monthly Factsheet as at 29 February 2024

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 29 February 2024

Marketing Communication

Share price performance (total return)

		Price (rebased)
		Benchmark
200		NAV (cum income)
150
100
50
0
Feb 19	Feb 20	Feb 21	Feb 22	Feb 23	Feb 24

Dividend history (pence/share)

4.0
3.5		Income		Income Special

3.0

2.5

2.0

1.5

1.0

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.

Performance		6m		1y		3y		5y		10y
over (%)
	Share price	8.3	10.7	12.9	59.9	135.4
	(Total return)
	NAV		9.0		11.8		17.8		66.4		151.9
	(Total return)
	Benchmark	9.6	10.7	32.7	61.8	123.8
	(Total return)
	Relative NAV		-0.6		1.1		-14.9		4.6		28.1
	(Total return)

Discrete year	Share price	NAV
performance (%) (total return)	(total return)
	31/12/2022 to	16.3		16.3
31/12/2023
	31/12/2021 to		-12.5		-11.1
	31/12/2022
	31/12/2020 to	0.5		8.5
31/12/2021
	31/12/2019 to		28.6		21.1
	31/12/2020
	31/12/2018 to	23.9		25.2
31/12/2019

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

Source: at 29/02/24. © 2024 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.

Proposed merger of interests with Henderson European Focus Trust plc

Shareholders should note the Company's announcement on 14 March 2024 proposing a scheme of reconstruction of the Company involving the voluntary winding up of the Company and the transfer of substantially all of the Company's assets to Henderson European Focus Trust in exchange for new shares in Henderson European Focus Trust. Further information is set out in the announcement on the Company's website. A circular to shareholders containing the full details of the proposals, and convening the necessary general meeting for shareholders to vote on the proposals, will be sent to shareholders.

Commentary at a glance

Performance

In the month under review the Company's NAV total return was 3.3% and the FTSE World Europe (Ex UK) Index total return was 2.7%.

Contributors/detractors

Unicredit, Safran and Moncler were our strongest positive performers while Roche, Sanofi and EDPR were our weakest positions.

Outlook

We are confident in the current positioning and have had a positive start to the year.

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.

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)	170.6p
NAV (ex income)	170.4p
Share price	146.0p
Discount(-)/premium(+)	-14.4%
Yield	2.6%
Net gearing	1%
Net cash	-
Total assets	£366m
Net assets	£361m
Market capitalisation	£309m
Total voting rights	211,855,410
Total number of holdings 45
Ongoing charges	0.79%
(year end 31 Jul 2023)
Benchmark	FTSE World Europe (Ex
UK) Index

Overall Morningstar RatingTM 

As of 29/02/2024

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 the glossary for the 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 29 February 2024

Marketing Communication

Top 10 holdings	(%)	Geographical focus (%)
Novo Nordisk		7.7	France	31.6%
TotalEnergies		5.0	Germany	18.4%
ASML		4.7
	Switzerland
			16.1%
Roche		4.2
	Netherlands
Nestlé		4.2	15.2%
	Denmark
			8.3%
SAP		3.8
Sanofi		3.6	Italy	5.1%
			Finland
Safran		3.5	2.5%
SGS		3.3	Austria	1.5%
			Spain
Schneider Electric		3.2	1.4%
References made to individual securities do not constitute a
recommendation to buy, sell or hold any security, investment		The above geographical breakdown may not add up
strategy or market sector, and should not be assumed to be

profitable. Janus Henderson Investors, its affiliated advisor, or its	to 100% as this only shows the top 10.
employees, may have a position in the securities mentioned.

Sector breakdown (%)

 Health Care	18.8%
 Industrials	17.9%
 Financials	16.9%
 Information	13.8%
Technology
 Consumer	11.8%
Staples
 Consumer	8.4%
Discretionary
 Energy	5.0%
 Materials	4.6%
 Communicatio	2.9%
n Services

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

Key information

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	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
Feb 21	Feb 22	Feb 23	Feb 24

10 year total return of £1,000

2,500		Share price total return	Benchmark
2,000
1,500
1,000
500
0
Feb 14	Feb 16	Feb 18	Feb 20	Feb 22	Feb 24

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 the glossary for the 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 29 February 2024

Marketing Communication

Fund Manager commentary

Investment environment

There were no significant themes in terms of one investment style outperforming another during the month. Dispersion of performance at the individual stock level was largely driven by 2023 company earnings results announcements.

Portfolio review

The strongest performing holding was UniCredit. As other European banks have started to falter with interest rate tailwinds cooling, UniCredit has continued to beat expectations. This is partly due to its better management of expectations, but also continued strong fundamentals, with UniCredit's growing fee income, falling restructuring charges and low loan loss charges.

Elsewhere, Safran's share price has doubled over the past year-and-a-half. Its organic growth has been consistently strong for the last couple of years, with flight hours (the key driver of aftermarket service revenues) continuing to recover after Covid and the outbreak of the Russia/Ukraine conflict. This has been driving strong earnings growth, robust cash generation and a steady rerating of its share price valuation.

Moncler was also a good performer. Moncler is a business that we have owned for a number of years. The primary attractions for us are a strong management team, a best-in-class ecommerce and social media

strategy, and economics that come close to matching that of Hermes. The brand has been trading very well and the company finished 2023 with 16% organic sales growth in the final quarter of the year.

2024 has started in a similar fashion to 2023, with huge dispersion in performance within the large-cap pharmaceutical space. The typically lower growth, more diversified, weak momentum companies - such as Sanofi and Roche - continued to struggle to perform, while anything involved in the obesity market continued to find new highs (so far this year, Novo Nordisk and Zealand are our top two performing positions). We continue to hold positions in Sanofi and Roche because we like medium-term potential with the companies sitting at 10 x and 12 x price-to-earnings (P/E) respectively. However, we acknowledge that their current earnings momentum is sluggish. Forth quarter earnings were slightly weak for both companies, and their share prices have been weak as a result.

Elsewhere, EDPR has struggled for a while now. The whole industry is fighting against softening power prices and high levels of cost inflation which have impacted project economics. We like the company's thematic exposure to renewable energy, but we increasingly question the economics of the business model. As such, we sold the small position during the month. Finally, Total underperformed after announcing a slightly soft set of full-year earnings results.

In terms of other activity, we sold the position in BNP.

This was bought primarily as a diversifier to our positions in UniCredit and Bawag a year ago, but we are becoming incrementally cautious on the banking sector and have moved to an underweight stance with this sale. Finally, we bought a new position in Siemens. We see Siemens as an inexpensive way to play the attractive theme of electrification. This, alongside the automation theme (which Siemens also has exposure to) is one of the fastest growing areas within industrials. We already have some exposure via Schneider, but wanted to increase the weighting in this area.

Manager outlook

We are confident in the current positioning and have had a positive start to the year.

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 29 February 2024

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/

HENDERSON EUROTRUST PLC (HNE) ISIN: GB00BP6QR382

Factsheet - at 29 February 2024

Marketing Communication

Source for fund ratings/awards

Overall Morningstar Rating™ is a measure of a fund's risk-adjusted return, relative to similar funds. Fund share classes are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving a single star.

Overall Morningstar Rating™ is shown for an investment company achieving a rating of 4 or 5.

Ratings should not be taken as a recommendation. For more detailed information about Morningstar Ratings, including its methodology, please go to www.global.morningstar.com/managerdisclosures.

Company specific risks

• This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
• Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
• The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
• Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
• The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
• If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
• The Company may have a particularly concentrated portfolio (low number of holdings) relative to its investment universe - an adverse event impacting only a small number of holdings can create significant volatility or losses for the Company.
• Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
• The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

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