By Emmy Hawker, Senior reporter, Trustnet, 19 June 2025:
Henderson European Trust is set to merge with Fidelity European Trust, creating an enlarged trust with £2.1bn in net assets that will be managed by Fidelity’s existing team of Sam Morse and Marcel Stötzel.
The deal will take place through a Section 110 scheme, with Henderson European’s assets transferred to the Fidelity trust.
Under Morse and Stötzel, the combined trust’s investment strategy will be focused on high-quality European stocks..
The boards of both companies have backed the deal, citing benefits such as lower fees, greater visibility in the market and better trading liquidity.
Existing Henderson European shareholders will be offered a cash exit option for up to one-third of the trust’s net asset value (NAV), at a 1.75% discount to the Fidelity trust’s NAV.
For those who stay invested, management fees of the merged trust will be reduced on a sliding scale to 0.7% on the first £400m of NAV, 0.65% up to £1.4bn and 0.55% on assets in excess of £1.4bn.
The merged trust will also aim to keep its discount to NAV within the mid-single digits in normal market conditions..
Completion of the merger is currently slated for the end of September.
James Carthew, co-founder and head of investment company research at QuotedData, said: “This looks like a great outcome for Henderson European shareholders and creates a true champion in this sector.”
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