Jupiter European Opps tipped as best trust in sector
Analysts tip Darwall’s focus on ‘bullet proof’ franchises as the best bet in European equity sector.
Jupiter’s £228.1m European Opportunities investment trust, run by Alexander Darwall, is the best product of its kind available to UK investors, according to Oriel Securities analysts.
The analysts issued a positive rating hailing the “hard work, experience, business acumen and teamwork” on the trust - and the fact that Mr Darwall himself owns 5 per cent of its shares.
The trust’s shares were on Tuesday (July 24) trading at an ultra-narrow 5.1 per cent discount to the value of its assets, in spite of the mounting panic associated with ‘riskier’ European assets such as equities.
“Fortunately, argues Darwall (pictured), what happens by way of outcome on the macro front is of no relevance to how his portfolio companies will perform so he prefers to spend his time looking at businesses rather than contemplating what or what might not happen at the next eurozone summit,” the Oriel Securities report said.
“Thus far, his strategy appears to be serving investors well.”
The report also hailed the trust’s focus on “bullet proof franchises” as the best investments.
In April the Jupiter European Opportunities trust reported a strong start to 2012, as its stock picks allowed it to avoid areas that were hit hard by the deepening debt crisis affecting the region.
Mr Darwall noted that, in particular, a holding in UK chemicals giant Johnson Matthey “performed strongly” after announcing a gain in market share for its catalyst technologies.
A holding in Denmark-listed pharmaceutical Novo Nordisk “also made good progress”.
Oriel Securities added: “Calling markets is seemingly a mug’s game. Calling good companies, while not easy, is something for which Darwall seems to have a peculiar knack.”
The analysts added that the manager’s sole holding in Spain, which has come into the spotlight in recent weeks as one of its banks neared insolvency and it was forced to apply for a bailout for its banking sector, is airline technology company Amadeus.
The stock gained 15 per cent in the year to the end of May, the analysts said, even as the Ibex index of Spanish shares shed 30 per cent.