This fund is run is run by Alexander Darwall, who takes a bottom-up, and blunt, approach to investing: "We invest in specific investment opportunities rather than simply in lazy macroeconomic assumptions," he says in his latest fund commentary. "We remain confident that our investment approach is an appropriate one for current circumstances."
That said, the fund is almost entirely invested in Northern Europe, with just over 3 per cent of its assets in Ireland and Spain. However, Mr Darwall says this is not because of testing macroeconomic problems in southern Europe, but rather he cannot find the types of companies he wants listed there.
He favours companies that depend on their own efforts rather than factors beyond their own control, whose products are in universal demand and not especially price sensitive. Examples include top 10 holding Novo Nordisk, which is listed in Denmark but sells diabetes treatments globally. Although the fund buys companies listed in Europe, it seeks gain from ones that benefit from global growth including in developing economies.
Mr Darwall tries to position the portfolio to do well in a range of circumstances. To this end, he seeks companies with strong balance sheets which make productivity-enhancing and cost-saving products and services. He also wants them to demonstrate good profitability, a proven business model, evidence of entrepreneurial endeavour and above-average growth opportunities.
He runs a concentrated portfolio of companies able to sustain profit growth and margins over a long period of time, as his focus is long-term performance rather than a short-term bounce.
JUPITER EUROPEAN (EASCA) | |||
|---|---|---|---|
| PRICE (NAV) | 952.9p | SHARPE RATIO | 0.41 |
| SIZE OF FUND | £1.59bn | 1 YR PERFORMANCE | 21.32% |
| No OF HOLDINGS | 40* | 3 YR PERFORMANCE | 9.43% |
| SET UP DATE | 3-Aug-87* | 5 YR PERFORMANCE | 11.37% |
| MANAGER START DATE | 01-Jan-01 | TOTAL EXPENSE RATIO | 1.81% |
| FEES | Initial 5%, annual 1.5% | YIELD | 0.33% |
| BETA | 0.69 | MINIMUM INVESTMENT | £500 |
| STANDARD DEVIATION | 24.4 | MORE DETAILS | www.jupiteronline.co.uk |
Source: Morningstar, *Theadneedle
Performance data as at 6 January 2010.
Top ten holdings as at 30 November 2010
| Holding | Percentage |
|---|---|
| Novozymes | 7.94 |
| Novo Nordisk | 7.7 |
| Sygenta | 5.64 |
| DnB NOR | 5.42 |
| Neopost | 5.31 |
| Vopak | 4.45 |
| Reed Elsevier | 4.3 |
| Fresenius | 3.96 |
| Modern Times | 3.71 |
| Schneider Electric | 3.61 |
Geographic breakdown
| Country | Percentage |
|---|---|
| France | 22.95 |
| Denmark | 17.31 |
| Germany | 16.67 |
| Netherlands | 10.86 |
| Switzerland | 10.07 |
| Norway | 9.37 |
| Sweden | 7.09 |
| United Kingdom | 2.44 |
| Ireland | 1.77 |
| Spain | 1.31 |
| Cash | 0.16 |
