Citywire for Financial Professionals
Stay connected:

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.

 
The Daily Interview: Jupiter's Darwall says globally focused groups can beat crunch

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.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Look up the funds

  • Jupiter European
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Alex Darwall
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

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 noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet