Jupiter’s Alexander Darwall to focus on European Opportunities – will hand over £7.7b open-ended funds – Investors in Jupiter European Opportunities trust (JEO) are likely to welcome today’s announcement that the trust’s manager, Alexander Darwall, is relinquishing control of Jupiter’s £5.3b and £2.4b European and European Growth open-ended funds to focus on JEO. Jupiter are hiring Mark Nichols, from Columbia Threadneedle (manager of its European Select Strategy), to run the combined £7.7b funds.
Alexander has managed the European and European growth funds since 2001 and 2007. The European fund has been particularly successful, developing into the largest fund in its space with returns well ahead of benchmarks over several years.
JEO, which was setup in 2000, looks for capital appreciation opportunities across several sectors. Germany and the UK are the main geographies, accounting for nearly 60% of the portfolio. Over the past year, its shares are up 2.6% on a total return basis, underperforming the 8.75% increase in NAV. The shares traded at a premium for much of 2018, peaking at about 2.72%. They are currently trading at a 5.33% discount, reflecting the problems experienced with its largest holding, Wirecard.
About JEO
JEO’s objective is to invest in securities of European companies and in sectors or geographical areas which are considered by the manager to offer good prospects for capital growth, taking into account economic trends and business development.
The manager adopts a stock picking approach. He seeks companies where the ownership structure and incumbent management are conducive to achieving superior long-term earnings growth. He likes strong management records and teams and management with the ability to explain and account for its actions. Proprietary technology and other factors which indicate a sustainable competitive advantage and a reasonable expectation of long-term growth of demand for products or services are seen as attractive as is a belief, by the manager that structural changes are likely to benefit rather than negatively impact the company’s prospects.
| Top 10 holdings, January 31 2019 | Sector | % of portfolio |
| Wirecard | Support services – fintech | 16.2% |
| RELX PLC | Media – publishing | 9.7% |
| Novo-Nordisk | Pharma and Biotech | 8.4% |
| Deutsche Boerse | Financial services | 7.8% |
| Experian Group Ltd | Support services – consumer credit ratings | 7.8% |
| Carnival | Travel and leisure – cruise operator | 7.2% |
| Amadeus | Support services | 6.1% |
| Grenke Ag | Financial services | 5.9% |
| Adidas Ag Cv 0.25% | Consumer goods – apparel | 4.6% |
| Dassault Systems | Software and computer services | 4.5% |
JEO: Jupiter’s Alexander Darwall to focus on European Opportunities