Jupiter European Fund
Medical Money Management (MMM) operates a series of risk-targeted Investment Portfolios, each incorporating a number of investment funds, selected after significant research and fund manger interviews. This time, the fund into which we are providing an insight is the Jupiter European Fund
What makes it different from oporther funds in its sector?
Alexander Darwall believes that Europe is home to many ‘world class’ companies. He looks for companies with a proven business model whose products are in universal demand and are not easily substituted. Almost invariably, he seeks to invest in companies whose prospects depend as far as is reasonably possible on their own entrepreneurial endeavour and not on factors beyond their control. All holdings in his view stand to benefit from multi-year structural growth drivers such as changes in regulation, consumer habits and technology, rather than being reliant on macroeconomic trends such as changes in the overall rate of economic growth. He looks to hold these stocks for the long term and the fund, therefore, tends to have a low turnover. The strategy is to seek out exceptional European expertise, rather than taking a view on the relative health of the European economy. The fact that many of the businesses the fund invests in are successful on the global stage means they are less likely to be affected by any issues in their domestic market.
The outlook for the Fund
The Jupiter European Fund is positioned in the same way as it has been for some time. The Manager favours global-facing businesses with strong balance sheets, which have repeatedly proven their resilience over the long term. The Fund’s holdings are dominant operators in niche areas such as diabetes care and crop protection. In the Manager’s view, these firms should be able to take advantage of the numerous growth opportunities that are to be found, regardless of the overall state of economic conditions.
Alexander believes there is little sense in attempting to forecast the outlook for share prices. His investment process does not rely on making macroeconomic calls. Instead, he believes there are companies which can prosper in a variety of economic environments. Such companies share a number of characteristics: their underlying business model is strong; they are not captive to the whims of governments or regulators; and they have an abundance of intellectual property that makes them in his view a unique proposition in the market.
The Fund Manager
Alexander Darwall has managed European equities at Jupiter since 1995 and the Jupiter European Fund since January 2001, making him one of Jupiter’s longest serving fund managers. He graduated with a degree in History from Cambridge University before training as an investment analyst with de Zoete & Bevan (BZW). He moved to Enskilda Securities in Paris in 1987, where he became Head of French Equity Research. He joined Goldman Sachs in London in 1992, again as a French equity analyst, before joining Jupiter in 1995.
Awards and Ratings should not be taken as a recommendation. Past performance is no guide to the future.
Alexander Darwall was appointed as Manager of the Jupiter European Fund in January 2001, and since then the Fund has grown to £3,521 million as at 30/11/2015.
Past performance is no guide to the future. Source: Financial Express, % Growth, bid to bid, basic rate tax, net income reinvested.
This commentary is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice.
The fund invests in a small number of holdings and as such carries more risk than funds which invest across a larger number of holdings. This fund invests mainly in shares and it is likely to experience fluctuations in price which are larger than funds that invest only in bonds and/or cash. The Key Investor Information Document, Supplementary Information Document and Scheme Particulars are available on request.