Henderson Investors is in the middle of placing shares for the launch of its latest investment trust...
Henderson Investors is in the middle of placing shares for the launch of its latest investment trust run by Stephen Peak.
As reported in Investment Week in June, Henderson European Micro will invest in companies with market caps below £150m and part of the portfolio will consist of IPOs. Hendersons said it would announce the initial size of the trust on 1 September.
Peak already runs the £856m TR European Growth investment trust. It invests in medium to smaller companies whose market caps are generally above £150m. When managing TR European Growth, Peak concentrates on five main areas of stock selection: share price anomalies, recovery stocks, growth stocks likely to be re-rated, stable growers temporarily underpriced and undervalued assets.
The group's decision to launch the portfolio as an investment trust rather than as a unit trust is due to the relatively illiquid nature of the market in which the portfolio is investing. A closed-end fund will lock in the funds raised when launched with investors able to increase or decrease exposure to the portfolio through the purchase or sale of shares. But in the case of an open-ended structure the manager would have to keep an eye on the number of redemptions requested and may not be able to sell holdings to fund exits at a fair price. In addition Peak will be investing in companies on a two to three-year view.
Over the five years to 15 August the NAV of European Growth has risen 100p to 494p while investors have seen the value of each 100p investment rise to 514p. In contrast the FTSE World Europe ex UK index grew by only 35%. Over three years the NAV and share price have increased by 178.2% and 262% respectively.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till