Key takeaways

• Henderson EuroTrust has performed strongly over a three-, five- and ten-year basis. However, performance has been challenged recently as the market has rotated from “Covid-beneficiaries” to “re-opening beneficiaries”.
• Following a higher than usual portfolio turnover in 2020, the Trust’s trading activity has returned to more normal levels in 2021 and reflects the lower volatility in equity markets.
• China’s regulatory clampdown has negatively impacted the gaming sector. The new regulations mean that under-18s will only be allowed to play online games for three hours per week, as authorities expressed concern over gaming’s impact on society.
• The increased level of activity within the initial public offering (IPO) and mergers and acquisitions (M&A) markets has provided Jamie with some investment opportunities.

IPO Expand

Initial public offering: when shares in a private company are offered to the public for the first time.

Mergers and Acquisitions (M&A) Expand

Mergers and acquisitions is a general term that describes the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.

Volatility Expand

The rate and extent at which the price of a portfolio, security, or index, moves up and down. If the price swings up and down with large movements, it has high volatility. If the price moves more slowly and to a lesser extent, it has lower volatility. It is used as a measure of the riskiness of an investment.