Share price performance (total return)

Dividend history

but not yet paid.

Performance over (%)	6m	1y	3y	5y	10y
Share price (Total return)	21.2	14.2	49.9	43.8	158.2
NAV (Total return)	17.3	12.1	54.9	52.9	172.0
Benchmark (Total return)	19.2	13.2	52.7	44.9	136.6
Relative NAV (Total return)	-1.9	-1.1	2.2	8.0	35.3

Discrete year performance (%) Share price (total return) NAV (total return) 31/3/2022 to 31/3/2023 11.0 10.8 31/3/2021 to 31/3/2022 3.8 4.0 31/3/2020 to 31/3/2021 50.3 42.3 31/3/2019 to 31/3/2020 -9.8 -5.6 31/3/2018 to 31/3/2019 -9.0 0.3

n/a n/a n/a All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 30/04/23. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.

Commentary at a glance

Performance

The Company underperformed the FTSE World Europe (Ex UK) Index during the month.

Contributors/detractors

The biggest positive contribution to performance came from our energy holdings as these stocks benefited from a surprise oil production cut by OPEC (Organisation of the Petroleum Exporting Countries). Banks also contributed while holdings in materials and communication services detracted from performance.

Outlook

Inflation has started to cool in the US and eurozone due to the impact of falling energy prices. However, core inflation, a strong labour market and wage pressure continue to cause concern for central banks. The direction of interest rates is still debated, but the cost of borrowing has changed, making valuation important in our view. We think the value bias of European equities makes it an attractive opportunity set.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Company overview

Objective

The Company seeks to maximise total return (a combination of income and capital growth) from a portfolio of stocks listed in Europe.

Highlights

A focused investment trust of between 35 and 45 companies in Europe with an emphasis on maximising total return.

(%) Top 10 holdings
Novo Nordisk	5.5
Shell	5.2
UPM-Kymmene	4.7
TotalEnergies	4.1
LVMH Moet Hennessy Louis Vuitton	4.0
BP	3.6
ASR Nederland	3.6
Cie de Saint-Gobain	3.6
Airbus	3.3
Safran	3.2

Premium/(discount) of share price to NAV at fair value (%)

All performance, cumulative growth and annual growth data is sourced from Morningstar. Share price total return is calculated using mid-market share price with dividends reinvested.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.

How to invest Go to www.janushenderson.com/howtoinvest Customer services 0800 832 832

10 year total return of £1,000

Ireland 2.5%

Key information Stock code HEFT

AIC sector AIC Europe

Fund Manager commentary Investment environment

The MSCI Europe Index was up in April. This performance belies the underlying tug-of-war that investors are currently in as to whether recession is on our doorstep or not. The prevailing negativity of investors, especially towards all things Europe, has seen more cyclical stocks eschewed in favour of those stocks perceived as more defensive. It is clear that refuge is being sought in the face of an expected worsening macroeconomic environment. However, data has remained remarkably resilient despite the effects of higher interest rates starting to take hold. Additionally, companies' reported first quarter earnings have on the whole surprised positively. Readers might remember from last month's commentary that the disparity between what data and companies were telling us and what the market was signalling was nothing short of remarkable. This has continued to be the case.

Manager outlook

April did see headline inflation start to cool both in the US and the eurozone due to the impact of lower energy prices starting to work its way through the system. However, core inflation, a strong labour market and upside wage pressure continue to cause headaches for central bankers globally.

The path forward for interest rates remains a hotly debated topic - the market still craves either a 'pause' or 'pivot' in monetary policy. Regardless of the future direction, the cost of borrowing has structurally changed and valuation seems to matter once again. We think the value bias of European equities makes it an attractive opportunity set.

Portfolio review

We reopened a position in Danone and sold the holding in Mercedes Benz during the month. We reintroduced the former as a holding as we saw tangible evidence of the new CEO's strategy working. We sold the latter due to worries over the electric vehicle price war that Tesla has started.

Other notable activity was concentrated in the semiconductor sector, where we meaningfully reduced the weighting in STMicroelectronics to take some profit given our growing concern that the market got ahead of itself in predicting the bottom of the semiconductor cycle.

Glossary

Discount/Premium

The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.

Net Asset Value (NAV)

The total value of a Company's assets less its liabilities.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Risk rating

The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

For a full list of terms please visit:

https://www.janushenderson.com/en-gb/investor/glossary/

Source for fund ratings/awards

Overall Morningstar Rating™ is a measure of a fund's risk-adjusted return, relative to similar funds. Fund share classes are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving a single star. Overall Morningstar Rating™ is shown for an investment company achieving a rating of 4 or 5.

Ratings should not be taken as a recommendation. For more detailed information about Morningstar Ratings, including its methodology, please go to www.global.morningstar.com/managerdisclosures.

Company specific risks

This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
The Company may have a particularly concentrated portfolio (low number of holdings) relative to its investment universe an adverse event impacting only a small number of holdings can create significant volatility or losses for the Company.
Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).

Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc

NAV (cum income)	179.4p
NAV (ex income)	177.5p
Share price	157.0p
Discount(-)/premium(+)	-12.5%
Yield	3.1%
Net gearing	7%
Net cash	-
Total assets Net assets	£412m £382m
Market capitalisation	£334m
Total voting rights	212,768,122
Total number of holdings	41
Ongoing charges (year end 30 September 2022)	0.77%
Overall Morningstar RatingTM	
Benchmark	FTSE World Europe (Ex UK) Index

Company type	Conventional (Ords)
Launch date	1947
Financial year	30-Sep
Dividend payment	June, February
Risk rating (Source: Numis)	Slightly above average
Management fee	0.65% for net assets up to £300m. 0.55% for net assets above £300m.
Performance fee	No
(See Annual Report & Key Information Document for more information)
Regional focus	Europe
Fund manager appointment	Tom O'Hara 2020 John Bennett 2010

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HENDERSON EUROPEAN FOCUS TRUST PLC

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