Henderson put on review by investment trust board

Henderson Global Investors was understood to have been taken by surprise after the board of the Henderson Asian Growth Trust put the asset manager on review.

The board has instructed Winterflood Investment Trusts and Mercer that it is undertaking a review of the investment management arrangements.

According to a regulatory statement, the board is to consult with the trust’s major shareholders if significant changes are proposed.

A Henderson spokeswoman says it had been aware of underperformance of the investment trust, managed by Andrew Beal, but argued it was a structural growth play on Asia.

“There is an element of underperformance to be expected when you’re in a value-oriented market,” she explains.

The spokeswoman says the board were “prudent” to review the investment management arrangements.

According to its interim management statement, the investment trust saw its discount widen to 12.3 per cent at the end of September, compared with 9.8 per cent at 30 June.