View the article online at http://citywire.co.uk/money/article/a310574
The Daily Interview: Jupiter's Darwall says globally focused groups can beat crunch
Veteran European manager Alex Darwall remains relaxed about a European economic downturn as he believes many of his holdings are well placed to continue benefiting from globalisation.
Veteran European manager Alex Darwall Alex Darwall remains relaxed about a European economic downturn as he believes many of his holdings are well placed to continue benefiting from globalisation.
Darwall who has run the £1.1 billion Jupiter European fund since January 2001 said: 'The UK, Spain and Ireland have appalling problems to come as they have been very stupid in pumping up real estate prices but that is not my problem.
'People just forget that it is not all about the US slowdown. There is growth in Latin America and China.'
'There are lurid headlines about Chinese consumer spending slowing but it is only the growth rate that is slowing. Even if economies fail there are still vast economies out there and there will always be winners and losers.'
He added: 'It is not easy out there and the banking problems do not help, but it is wrong for people to give up and say everything is wrong.'
The one potentially serious cloud on the horizon for Darwall remains any potential rise in protectionist policies, spearheaded by France and Germany.
'The end of trade liberalisation would be worrying. Sarkozy and Berlosconi do not live in the real world but luckily globalisation means most people want liberalisation of trade.'
Darwall is attracted to companies that have a technological edge and are able to move beyond the constraints of locally challenged markets to benefit from the globalisation of demand.
He said: 'Productivity gains from technology are still very significant. The current oil price is only really a problem for the West. Capital is still doing well because we can all continue to benefit from the process of globalisation.'
Darwall said: 'I am drawn to companies with pricing power which can differentiate themselves. I avoid companies with a lot of capital stuck in the ground in Europe. Right now, a German retailer would have no growth prospects but a good technology company can go anywhere.'
A key investment theme for Darwall is companies that can profit from resource scarcity.
Two core long term holdings that play on it are Syngenta and Novozymes.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the funds
Look up the fund managers
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.