31st Mar 2016 12:01
LONDON (Alliance News) - Henderson EuroTrust PLC, which invests in large and medium-sized companies which its manager perceives to be undervalued, on Thursday said it performed better than its benchmark in the first half of its financial year.
Its net asset value total return fell by 1.9% in the six months ended January 31, versus a fall in the FTSE World Europe (ex UK) benchmark index of 6.1%.
The trust's share price total return was down by 5.1%.
"It is naturally pleasing to outperform the index in a downturn, but we recognise that this is of limited solace to shareholders when their shares fall in value," Chairman Nicola Ralston said in a statement.
Fund Manager Tim Stevenson said: "High dividend yields and modest valuation have supported markets recently, perhaps helped by the current dividend paying season. There had been almost an element of panic beginning in equity markets, with the usual suspects from the last few years being rolled out again as causes: Euro stress, Italy, Politics, Brexit, and throw in a banking crisis."
He said those stresses come on top of China's economic slowdown, weaker-than-expected US growth and "the usual" weak European growth.
"In summary, it is my opinion that we are now firmly entrenched in a world of low growth, and artificial stimulus from ever lower interest rates (including negative rates) will be as ineffective as are most unnatural things. This is not necessarily a bad environment for good companies, and we will remain both patient and highly vigilant to make sure that we select such holdings in what are clearly tougher times for all markets, bonds and equities combined," Stevenson said.
Shares in Henderson EuroTrust were down 0.4% at 862.90 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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