Morningstar's Manager Check Up

REAFFIRMED RATINGS: Morningstar fund analysts reveal why they positively rate Jupiter European, Miton Cautious Multi-Asset and UBS China Opportunities

Jonathan Miller 18 July, 2018 | 11:20AM
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Jonathan Miller: Alex Darwall has managed the Jupiter European fund since February 2001. Darwall takes a high-conviction approach, scouring the continent to find the best opportunities.  The portfolio is built from the bottom up, following thorough fundamental analysis, and there’s a strong focus in his process on having an in-depth understanding of how a company works and on maintaining regular contact directly with its management.

He aims to invest in companies that can sustain profit growth and margins over a long period. To this end, he looks for companies with a good track record of profitability, proven product and business model, evidence of entrepreneurial endeavour, and the prospect of above average growth opportunities.

Portfolio turnover is generally low, reflecting Darwall’s long term approach. We believe this is a stand-out choice for European equities, backed by a talented manager with an effective process that has delivered strong returns over the long term. This means the fund retains its Morningstar Analyst Rating of Gold.

The Miton Cautious Multi Asset fund has been managed by David Jane and Anthony Rayner since June 2014. Jane has a strong background in running multi asset funds and for this fund, there’s a target of returning 4%-6% annualised over the long term and with volatility of no more than half that of the FTSE 100.

The duo employs a macro theme-driven approach with flexible allocation. Themes are mainly implemented using baskets of stocks and are primarily selected for their correlation with the managers’ favoured themes. The duo brings lengthy experience and their close attention to risk and capital preservation has proved successful in the long term across various mandates. We’re happy to reaffirm the Morningstar Analyst Rating of Bronze.

The UBS China Opportunity fund has seen Bin Shi as lead manager since 2010. He’s supported by a decent-sized team of 12 analysts, consisting of six dedicated China specialists and six regional analysts. Shi aims to identify current and potential industry leaders in secular growth sectors he believes are underrepresented in the benchmark.

The team conducts fundamental research to find companies with proven business models, strong cash flow, good quality of disclosure, and stock prices that have not yet fully reflected their long-term growth potential. Portfolio turnover has been around 25% which reflects the buy-and-hold strategy.

Along with little regard for the benchmark, this means performance can by lumpy, but we have conviction in Shi, his process and stock picking ability. We therefore maintain the fund’s Morningstar Analyst Rating of Bronze.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Jupiter European I Acc3,528.64 GBP-1.35Rating
Premier Miton Cautious Mlt-Asst B Acc329.71 GBP-0.60Rating
UBS (Lux) EF China Oppo(USD) Q USD acc149.98 USD-0.49Rating

About Author

Jonathan Miller  is Director of Manager Research, Morningstar UK

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