Advertorial feature
[ JANUS HENDERSON ]
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J amie Ross, manager of the
Henderson EuroTrust, uses the
example of Dutch technology
company ASML to highlight the
analysis applied to every potential
holding in the portfolio
Getting
under the
skin
W
hen considering
an investment for
the Henderson
EuroTrust portfolio,
we tend not to focus on market
noise or any technical factors; the
main thing we are doing is trying to
establish whether what we are looking
at is a good company or not. This is a
key part of the research process.
There tend to be many features that
most good companies have in common,
but there are myriad characteristics
and features to analyse that will be
unique to each and every business. By
undertaking detailed analysis of the 50
or 60 companies we have on our radar
(a portfolio of about 40 positions and
a watch list of 10 to 20 names), we try
FE TRUSTNET
to ascertain whether a business is a
good business and if so, whether now is
the right time to be invested or not. In
this article we will highlight aspects of
our process using one of our portfolio
companies, Dutch lithography tool
manufacturer ASML.
What does the company do?
Based in Veldhoven, Netherlands, ASML
is the global leader in the production,
sale and aftermarket care of lithography
tools. Lithography tools are used by
semi-conductor manufacturers to etch
3D patterns onto silicon wafers; an
essential part of the complex process of
building up a transistor.
Over time, ASML has built up an
extremely strong market position.
The main thing we are doing
is trying to establish whether
what we are looking at is a
good company or not. This
is a key part of the research
process
Historically, it has had two competitors
(Nikon and Canon), but the huge
investment burden (capital intensity
and research & development
intensity) has taken its toll on its
competitors, leaving ASML with a
market share of roughly 85% (80%
share in immersion technology
‘DUV’ and 100% market share in
next-generation EUV technology).
Without significant technological
change, it is very difficult to see ASML’s
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