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Jupiter European - a quality portfolio of European companies

Kate Marshall | Wed 13 April 2016

Investments can go down as well as up so there is always a danger that you could get back less than you invest. Nothing here is personalised advice, if unsure you should seek advice.

Key Points

  • Alexander Darwall favours companies that create superior, differentiated products or services, with a market-leading advantage
  • A bias towards high-quality companies with sustainable earnings growth has recently aided performance
  • Over the long term we feel stock selection has been the key driver of returns

Portfolio review

Wider economic threats to global stock markets are a constant, according to Alexander Darwall. Yet there will always be good investment opportunities with successful individual companies. Technology advances, changing consumer behaviour, regulatory interventions, and entrepreneurial flair will continue to generate new and exciting ideas for investors prepared to look.

The manager favours global-facing businesses with strong balance sheets that have proven their resilience even during tough economic conditions. Many of these businesses dominate the niche industry in which they operate and have exposure to some of the faster-growing regions of the world.

Presently the fund has a strong preference for healthcare and related companies. Current holdings include Grifols, a Spanish company that develops, manufactures and markets plasma-based products. Demand for its products is growing consistently, according to the Alexander Darwall, while the business also continues to innovate.

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The fund also holds exposure to what the manager describes as 'alternative financials', which contributed significantly to performance over the past year. These include German stock exchange operator Deutsche Boerse, leasing company Grenkeleasing and financial services group Provident Financial.

These businesses are beneficiaries of the new regulatory and market challenges faced by mainstream banks, in Alexander Darwall's view. While larger, old-fashioned banks face constraints, such as higher regulatory costs, demand for financial services, such as lending, remains. This represents considerable opportunity for newer companies unencumbered with greater regulatory burdens.

Our view on this fund

Alexander Darwall has one of the most impressive track records in the European sector. Over the past decade, his Jupiter European Fund has delivered an exceptional return of 162.5%* against 56.4% for the sector average and 59.2% for the benchmark index. The fund has also been one of the least volatile in its sector over this time. Please remember this should not be viewed as a guide to the fund's future performance.

Annual percentage growth
April 11 -
April 12
April 12 -
April 13
April 13 -
April 14
April 14 -
April 15
April 15 -
April 16
FTSE World Europe ex UK -11.5% 16.7% 18.1% 7.3% -5.3%
IA Europe ex UK -10.2% 19.2% 16.3% 6.9% -3.1%
Jupiter European -7.2% 26.8% 9.6% 15.5% 5.1%

Source: Lipper IM to *01/04/2016. Past performance is not a guide to future returns.

Over both the short and long term, a bias towards high-quality companies with sustainable earnings growth has aided returns. Over the past year in particular, this type of company has been highly-prized by investors against an uncertain economic backdrop. That said, while the manager’s investment style has helped, we believe stock selection remains the key driver of returns. Please note the fund is concentrated, which enables each holding to make a significant impact on returns however this is a higher-risk approach.

Europe's economy continues to muddle through a period of low growth. However, underneath its wider economic problems, Europe will have its success stories and Alexander Darwall is a manager we trust to harness these over the long term. As such, the fund features on the Wealth 150 list of our favourite funds across the major sectors.

Find out more about this fund including how to invest

Please read the key features/key investor information document in addition to the information above.

Important information - Please remember the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This article is provided to help you make your own investment decisions, it is not advice. If you are unsure of the suitability of an investment for your circumstances please seek advice. No news or research item is a personal recommendation to deal.


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