Jupiter European Opportunities Trust
Alexander Darwall has managed this trust since 2000 when the Jupiter European investment trust was rolled into the current vehicle.
It has secured victory in the category, in which it last appeared in 2013, through consistently strong performance that has seen it outperform both the AIC Europe sector average and the FTSE World Europe ex UK index. This includes a 10-year total return of 319.5 per cent to October 21 2015, compared with the sector average of 155.8 per cent and the index gain of 95 per cent.
The trust’s objective is to invest in securities of European companies and in sectors or geographical areas the manager considers will offer good prospects for capital growth. Mr Darwall focuses on companies “where the ownership and management structures are conducive… to generating superior long-term earnings growth”.
Mr Darwall uses a number of valuation techniques to assess potential investments, although the main focus of analysis is around the sustainability and growth of free cashflow over the long term. At the end of September the largest sector weighting was to support services at 22.3 per cent of the portfolio. Financial services accounts for 18.5 per cent. The largest geographical allocation is to the UK at 28.5 per cent of total assets, while Germany accounts for a further 22.6 per cent.
What the judges say
This portfolio’s approach outperformed on both the upside and the downside, during a turbulent 2015 and over the long term.
Five-year actual return
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