28th May 2020 17:48
(Alliance News) - Henderson European Focus Trust PLC on Thursday said it outperformed its benchmark in the first half of its financial year but its net asset value fell sharply amid the pandemic.
The investment trust's net asset value total return for the six months ended March 31 amounted to negative 1.5%, better than the benchmark's negative 16.7% return. Henderson European's benchmark is the FTSE World Europe excluding UK Index on a total return basis in sterling terms.
Net asset value per share fell 17% to 1,158.30 pence as at March 31 from 1,390.86p on September 30.
"It hardly needs saying that the overwhelming factor for all of us during the period under review and, indeed, at the time of writing, has been the global pandemic known as Covid-19. As this virus has spread west, so has its effect on financial markets. Here in Europe, the month of March 2020 saw quite astonishing levels of volatility and severe strain within the financial system," said fund managers John Bennett and Tom O'Hara.
The company has maintained its interim dividend at 9.60 pence.
Chair Robert Jeens said: "I would like to reassure shareholders that all operational aspects of your company have continued to operate smoothly despite the necessary move to remote working by the manager, the fund managers, other key third parties and indeed the board itself. We have kept and will remain closely in touch with the key parties to ensure that this remains the case.
"The outlook for European, and indeed global, economies is uncertain as the full consequences of the actions taken to fight the Covid-19 pandemic are not yet known. Europe is moving into a deep recession which will hopefully be brief but is presently of unknown duration. Whilst the fiscal and monetary responses from central authorities across the world have been dramatic the level of global cooperation to address a pandemic that respects no national boundaries has been weak. Against this background I consider that our fund managers' focus on cash generative companies with strong balance sheets and low leverage should serve shareholders well."
Shares in Henderson European ended 0.4% higher at 1,150.00 pence in London on Thursday.
By Anna Farley; [email protected]
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