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HENDERSON EUROPEAN SELECTED OPPORTUNITIES A

HENDERSON EUROPEAN SELECTED OPPORTUNITIES A - Overview

Overview of HENDERSON EUROPEAN SELECTED OPPORTUNITIES A

The fund targets long term capital growth from predominantly large cap companies that are either based in or operate in continental Europe. The portfolio is largely shaped by sector themes on a value basis, i.e where the manager finds established companies trading at a discount to fair value. The mandate for this fund is benchmark aware and consequently we prefer the Henderson European Focus fund which is a purer expression of the manager's conviction.

  • Standard Initial Charge 5.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched August, 1984
Size £2,136m
Yield 0.6%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.71%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

John Bennett is a very experienced manager with over 20 years in European equities. Initially brought over to Gartmore in 2010 he has successfully managed the subsequent transition to Henderson. For example the European Focus fund was a perennial poor performer and frequently featured in our dog list, however, since Bennett took over performance has improved dramatically. We have a high degree of confidence in Bennett and believe that he is doing something different to many other large cap European fund managers. However, we have a preference for Bennett's Henderson European Focus fund as we believe that over the long term it should produce better returns to investors.

Portfolio

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 3
Europe 97
North America 0
Japan 0
Pacific 0
Other Equity 0
Allocation Proportion(%)
Large Caps 94
Mid Caps 6
Small Caps 0

View all performance data for this fund

Investment process

The process begins from identifying stock or sector themes that would generate growing customer demand. Then the manager looks for potential winners in their respective business fields that have enough capacity and abilities to grow. The universe of some 600 companies is screened, using various valuation metrics, such as EV/Sales, EV/EBIT Margin, P/E and dividend yield to identifie low-valued stocks. Among the latter the team looks for businesses set to or undergoing change. When a structural reason to change is identified, it becomes a catalyst for a change in valuation. Regular company meetings are an essential part of the investment process, allowing Bennett to gain insights into the businesses he invests in. These meetings serve either to validate or change Bennett's investment thesis on a company. The manager constructs the fund to hold approximately 50-60 stocks. The major themes used for this fund will be similar to those used for the Henderson European Focus fund that Bennett also runs. However, the Selected Opportunities fund is run with a greater awareness of the benchmark.

Live feed

Bid price(inc) (-52.00p) 1,163.00p
Accum units 1,163.00p
Fund commentary 03/03/14
Fund data updated on 11/02/16

Asset allocation

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 3
Europe 97
North America 0
Japan 0
Pacific 0
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 94
Mid Caps 6
Small Caps 0

Top 10 holdings

As at: 30/11/2015
6.8% Roche Hldg Ag
6.4% Novartis Ag
5.5% Nestle Sa
4.8% Bayer Ag
4.6% Autoliv Inc
3.9% Henkel Ag & Co Kgaa
3.3% Fresenius Se & Co Kgaa
3.1% Novo-Nordisk As
3% Relx Nv
2.7% Koninklijke Ahold Nv
Source: Trustnet

Sector breakdown

Health Care 25%
Consumer Goods 22%
Financials 16%
Basic Materials 9%
Consumer Services 8%
Telecommunications 6%
Industrials 6%
Oil & Gas 4%
Technology 4%
Others 1%

Portfolio details

50-65 stocks with a large cap, blue chip bias.

Constraints

Max 10% in any one company. Max 30% in any sector. At least 80% in large and mega cap stocks
There are some limits placed on the portfolio but these could result in significant divergences from the Index from time to time.

Average monthly relative returns Bestinvest MRI
11/12 12/13 13/14 14/15 15/16   3 years 5 years Career 3 years 5 years Career
0.48% 0.10%   0.31% 99.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

John Bennett

Manager. Bennett joined Henderson in 2011 as Director of European Equities following their acquisition of Gartmore. He had joined Gartmore in 2010, where he was a Senior Investment Manager in the European Equity Team. Prior to that he worked at GAM from 1993, and before that he was a Senior Fund Manager at Ivory & Sime, responsible for Continental European equity portfolios. He qualified in 1986 as a Member of the Chartered Institute of Bankers in Scotland.

Track record

John Bennett has 9.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.31%. During the worst period of relative performance (from November 2010 - April 2011) there was a decline of 9% relative to the index. The worst absolute loss has been 35%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -35% (June 2011 - September 2011)
Relative -9% (November 2010 - April 2011)

Sector record since January 2010 (10 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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