Profile: Jupiter European Opportunities (JEO)
Unusually for a European trust, the trust will invest in UK companies alongside European companies and the UK portion currently makes up around 27% of the portfolio.
Mr Darwall favours a concentrated portfolio, focusing on a handful of high quality businesses that are benefiting from long-term structural changes in the economy. This concentrated approach means that the trust has around 10% in its top holding – Syngenta – and the top 10 holdings make up more than 50% of the overall assets.
When selecting companies for the portfolio, Mr Darwall wants to find companies where the management team has a strong track record. Particularly important for him is their ability to deliver on their promises and work through problems. He also likes to see something that gives a company a sustainable competitive advantage. This might be proprietary technology, or other intellectual property.
Finally, Mr Darwall also looks to the wider macroeconomic environment to understand whether companies are in a sector likely to see long-term growth. He wants to ensure that companies have a tailwind to grow profits over the longer term.
This approach served him particularly well in the years after the financial crisis, when investors sought out those companies that could grow regardless of the economic environment. More recently, relative performance has weakened a little, but this is a trust for the longer term. It is up 147% over five years, outstripping the majority of its peer group and has been resilient even during periods of real strife in European markets.