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Investments and investor services

Henderson trust left in limbo as managers make shock exit

Henderson European Trust PLC (LSE:HET) portfolio managers Tom O’Hara and Jamie Ross have resigned with immediate effect from the investment manager, Janus Henderson Investors, it was revealed on Monday, less than a year since the trust was formed from a merger.

Robert Schramm-Fuchs, who manages the large-cap Janus Henderson European Focus Fund, and Nick Sheridan, who runs the Horizon Euroland and Horizon Global Smaller Companies funds, have assumed interim management of the trust.

A single-digit discount target has been introduced, having been operating a share buyback policy since last simmer following the retirement of John Bennett as manager of the Henderson European Focus Trust, which led to a merger with Henderson Eurotrust soon after.

Today, the board said it will, via broker Deutsche Numis, seek to find out shareholders' views on the strategic direction of the company and expressed an intent "to review the company's position in light of the feedback received".

O’Hara and Ross, along with fellow Janus Henderson manager David Barker, have all departed the Anglo-US investment group for GAM Investments.

Broker Stifel said it was downgrading its rating on Henderson European Trust to 'neutral' from 'positive', given the uncertainty.

Analysts said "this is definitely an unexpected announcement" and "there is now considerable uncertainty around who will be managing the portfolio going forward" as while the interim managers have good experience their appointment looks to be only on a temporary basis.

"The board is introducing a single-digit discount target to its buyback policy in light of this news, but we still think the discount, currently 9%, could widen reflecting this uncertainty."

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