Henderson EuroTrust celebrates 25 years with a fee cut

Henderson EuroTrust celebrates 25 years with a fee cut – Henderson EuroTrust says that, for the year ended 31 July 2017, its NAV total return just failed to match its benchmark, producing a return of 24.3% compared to a total return from the benchmark index, the World Europe (ex UK) Index of 24.6%. Shareholders benefitted from a narrowing of the discount from 8.1% to 3.3%, delivering them a total return of 30.9%. The total dividend (all paid from revenue) for the year was 25.0p (2016: 20.0p), an increase of 25% on the previous year.

It’s the fund’s 25th birthday. The underlying portfolio has outperformed the benchmark in 20 of the 25 years, of which nine have been in the last decade. Investors have made 2.6x more money from an investment in the fund than from an investment in the benchmark index.

The board has agreed a revised, and more favourable fee basis which has taken effect from 1 August 2017. A tiered basis is being introduced to the base management fee such that the existing fee of 0.65% will only apply to the first GBP250m of net assets with the balance above that charged at a reduced rate of 0.55%. The performance fee arrangements have been amended such that no performance fee will be payable in respect of a period where either the share price or the net asset value per ordinary share are lower at the end of the period than at the beginning.  In addition, there will be a new cap on the performance fee payable of 0.35% of average net assets over the period meaning the maximum total fees that can be paid in a period will be 1.0% rather than the current 1.3%.

Tim Stevenson’s manager’s report says that Amundi and ING, both held throughout the year, made a large contribution to performance as did a position in Rubis. On the negative side, a long standing holding – BIC – was a laggard as the market expressed disappointment in a slower period of growth, which they believe will be transient.  Nokia and Pandora also detracted from performance, but they see their problems as being more deep seated and have sold both of these holdings.

HNE : Henderson EuroTrust celebrates 25 years with a fee cut

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