020 7189 9999
Bestinvest rating
HENDERSON EUROPEAN FOCUS I

HENDERSON EUROPEAN FOCUS I - Overview

Overview of HENDERSON EUROPEAN FOCUS I Buy in ISA Buy in Investment Account

The fund targets capital growth by investing in a fairly focused portfolio of large and mid-cap continental European equities. Manager John Bennett looks to identify sector themes, often by looking at trends in other parts of the globe, then looks for attractively valued companies that will capitalise on them. As a result the fund’s sector weightings may diverge sharply from the index. The portfolio typically has a slight bias to growth, though Henderson describes Bennett as style agnostic and his belief in mean-reversion means he can be contrarian.

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

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched August, 2012
Size £551m
Yield 1.4%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.85%

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

This fund benefits from a highly experienced manager in John Bennett - he has now spent almost 30 years working in European equities. He built up strong track records at previous employers GAM and Gartmore and moved to Henderson when it acquired Gartmore in 2011, bringing this fund with him. We have a high degree of confidence in Bennett and believe he is doing something different to many other European fund managers. Historically his funds have offered a defensive performance profile, typically providing some protection from falling markets but lagging rising markets. Bennett also runs the similar Henderson European Focus IT.

Portfolio

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0
Allocation Proportion(%)
UK 0
Europe 98
North America 2
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 87
Mid Caps 13
Small Caps 0
View all performance data for this fund

Investment process

The process begins with the identification of stock or sector themes that would generate growing customer demand. Bennett believes that themes travel so he looks elsewhere in the world to find trends that might be mirrored in Europe. He and his analysts then look for potential winners in their business fields that have the capacity and ability to grow. A universe of some 600 companies is screened, using various valuation metrics, such as EV/Sales, EV/EBIT margin, P/E and dividend yield to find low-valued stocks. Among the latter the team looks for businesses set to or undergoing change – this could be a change in behaviour, or a turning point in a cyclical sector. 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 using a concentrated, unconstrained approach, holding up to 50 stocks. Strategic thinking is combined with tactical asset allocation, and earnings momentum also allows the manager to top or tail his holdings.

Live feed

Bid price(inc) 222.80p
Accum units 222.80p
Fund commentary 08/09/17
Fund data updated on 24/11/17

Asset allocation

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 98
North America 2
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 87
Mid Caps 13
Small Caps 0

Top 10 holdings

As at: 31/08/2017
3.9633%Nestle Sa
3.4564%Carlsberg
3.3108%United Internet Ag
3.2999%Autoliv Inc
3.2665%Novartis Ag
3.1888%Bnp Paribas
3.0114%Bayer Ag
2.8908%Ing Groep N.v.
2.7571%Roche Hldg Ag
2.6609%Galp Energia Sgps
Source: Trustnet

Sector breakdown

Financials 28%
Consumer Goods 17%
Industrials 14%
Health Care 14%
Technology 7%
Basic Materials 6%
Consumer Services 4%
Oil & Gas 4%
Money Market 2%
Utilities 2%

Portfolio details

30 to 50 stocks.

Constraints

VP 12.00.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
0.20% 0.33% 0.31% 0.25%   0.05% 91.80%
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 its acquisition of Gartmore. He manages a number of Continental and Pan European funds as well as European long/short funds. 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 23.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.05%. During the worst period of relative performance (from June 1994 - September 1999) there was a decline of 28% relative to the index. The worst absolute loss has been 46%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 92%.

Periods of worst performance
Absolute -46% (August 2000 - March 2003)
Relative -28% (June 1994 - September 1999)

Sector record since March 1993 (23 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.

Your Session will expire soonclose overlay

As you have been inactive for nearly 15 minutes you will soon be logged out of the secure area of our website. Click OK to remain logged in.