4th Oct 2019 13:30
(Alliance News) - Henderson EuroTrust PLC on Friday reported an increase in net assets and said it outperformed its benchmark in its recently ended financial year.
As at the end of July 31, Henderson's net assets stood at GBP274.1 million compared to GBP264.1 million on the same day last year. Net asset value per share was up to 1,293.90 pence from 1,246.70p.
The stock was trading 0.2% lower at 1,125.06p each in London on Friday afternoon.
The European-focused investor said its NAV total return was 6.6% during the year, beating the FTSE World Europe Index benchmark, which returned 4.7%.
Henderson proposed a final dividend of 23.0p per share, up 2.2% year-on-year from 22.5p. For the year, aggregate payout was 1.6% higher at 31.0p compared with 30.5p.
The company's investments include enterprise software giant SAP SE, food producer Nestle SA and telecommunications firm Orange SA.
This year, it has added Bawag PSK, a retail-focused bank in Austria, to its investment books.
It also invested in Paris-listed Vivendi SA, a mass media conglomerate which owns Universal Music Group and video game publisher Gameloft SE.
Fund Manager Jamie Ross said: "Vivendi, with its diverse array of controlling and minority investments, is a complex business to analyse properly, however, I see a significant undervaluation of one of its key assets, the 100% owned Universal Music Group."
Henderson reported weakening demand with "autos, semi-conductors and chemicals as three of the most obvious of these areas".
Demand in software, certain consumer staple and areas of healthcare.
Ross added: "These observations really sum up current market conditions; we have seen pockets of weakness, but no widespread collapse in demand. We also have to remember that the current sluggish demand environment is happening at a time of ultra loose monetary policy. This should prove supportive, especially when combined with currently inexpensive equity valuations."
By Eric Cunha; [email protected]
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