HENDERSON EUROPEAN SELECTED OPPORTUNITIES A
  

HENDERSON EUROPEAN SELECTED OPPORTUNITIES A - Overview

Bestinvest rating

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%
  • Select annual loyalty bonus* 0.25%
  • Custody charge n/a

Fund summary

Sector  Europe Excluding UK
Structure  OEIC
Launched  August, 1984
Size  £1,695m
Yield 0.9%
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%
Total expense ratio 1.76%
Reduction in yield (10yr) 1.76%

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

AllocationProportion
Equity 96%
High Yield Bonds 0%
Quality Bonds 0%
Property 0%
Commodities 0%
Hedge 0%
Fund Cash 4%
AllocationProportion
UK 3%
Europe 97%
North America 0%
Japan 0%
Pacific 0%
Other Equity 0%
AllocationProportion
Large Caps 94%
Mid Caps 6%
Small Caps 0%
View all performance data for this fund

Investment process

The Fund’s use of sectoral themes narrows the investment universe quickly to focus the team on segments of identified potential. John Bennett generally adopts a contrarian investment approach, seeking to invest in established companies that are trading at a discount to what he considers fair value. This is based on his belief in mean reversion, specifically that markets tend to be cyclical with sectors and companies falling in and out of favour. This process can therefore produce strong sector and industry themes over multi-year phases. Portfolio turnover therefore tends to be low. The Fund’s high conviction style is tempered with diversification guidelines to produce consistent returns and reduce portfolio volatility.
These major themes will be similar to those held in the Henderson European Focus fund that Bennett also runs. However, the Selected Opportunities fund is run with a greater awareness of the benchmark. Therefore, whilst it will reflect Bennett's core beliefs these will not be expressed with quite the same level of conviction and they will be diversified amongst other sectors. Selected Opportunities Fund also has significantly greater assets which makes it less flexible.

Live feed

Bid price 1,187.00p 4.00p
Fund commentary: 03/03/14
Fund data updated on: 17/04/14

* This fund is part of our annual bonus scheme to which conditions apply. If you qualify for the bonus it will be paid on any holding of this fund that you have in your Investment, ISA or SIPP accounts.

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