Jupiter European Class I - Accumulation (GBP)

Mark Nichols ran the CT Select European Equity Fund from November 2011 and co-managed the European Select fund alongside David Dudding from 2015 where he made a meaningful contribution to stock selection on this fund. Past performance isn't a guide to future returns.

Mark Heslop's background is in European smaller companies. He was previously lead manager of the CT European Smaller Companies Fund from 2013 until he left the group in 2019.

Since Heslop and Nichols took over the Jupiter European fund in October 2019, performance has been mixed, though this remains a relatively short timeframe. 2022 was a weak year for the fund partly due to the fund’s quality growth investing style being out of favour . Over the longer term the managers believe the focus on quality could provide resilience over the longer term.

The managers aim to invest in world class, quality companies across the European continent. These companies should have superior growth potential and a sustainable advantage, which makes it difficult for competitors to do better than them over the long term.

In terms of quality, the managers look for businesses that consistently produce cash, have a high return on the money invested in the business, and a competitive advantage that makes them stand out and can be sustained over the long term. This could include companies with the ability to be innovative, those with a brand that customers stay loyal to, or the ability to grow without costs increasing too much. To analyse these factors, the fund managers consider the rivalry that exists between different companies, including the threat of new players in the market.

Importantly, the managers must believe the businesses they invest in can continue to grow over the long term. Strong cash flows help with this and can also provide resilience against tougher economic conditions. They also like companies that make money outside of Europe, so they’re not only relying on businesses and consumers within the continent to grow.

This focus on quality and growth isn’t necessarily unique to this fund. That said, it’s a process the managers have used over many years and that all team members are proactively a part of. In addition, the set up at Jupiter means the managers have the freedom to invest with conviction, while still having appropriate checks and balances in place.

Note that the managers invest in a relatively small number of companies, which means each one can have a significant impact on performance, either positive or negative, and this increases risk.