Jupiter European Opps - JEO

masonic

StellaN wrote: »

I'm not too sure if that is sustainable over the long term.

It depends entirely on whether or not they are able to generate sufficient capital growth from their underlying investments to support the pay out.

davidquizer

Hi, I've been investing for a long time and although I have invested in Europe in the past I'm steraing clear because of the brexit effect and because quite a few countries are struggling. Of course things could improve and the prices are low. However I prefer good quality Global funds such as Lindsell and Scottish Mortgage which are very highly respected.

talexuser

davidquizer wrote: »

very highly respected.

or very highly risky? we'll know after the next real crash.

JohnRo

davidquizer wrote: »

Hi, I've been investing for a long time and although I have invested in Europe in the past I'm steraing clear because of the brexit effect and because quite a few countries are struggling. Of course things could improve and the prices are low. However I prefer good quality Global funds such as Lindsell and Scottish Mortgage which are very highly respected.

That sounds a little contradictory imo, if you are intent on investing in 'Europe' at some point as part of a larger plan (and not simply gambling in the short term) then surely those things you've mentioned make now as good a time as any to be doing so.

What are you waiting for otherwise? Stock prices to rise again as things stabilise, before piling in?

There's no guarantee stock market crashes will happen in the way they have in the past, especially given the subsequent rise in CB power and manipulation since the GFC but it's probably wise to expect and be prepared for that eventuality anyway.

As for SMT etc. buckle up.

MPN

StellaN wrote: »

In my opinion if you increase your holding to reduce the overall share price paid its still a gamble. At the moment nobody knows the true extent of the problems at Wirecard so the share price might fall even further. I personally feel that is one of the problems with having such a high conviction top holding at 17%. As an example, some investors feel that the 9% top holding in Amazon by SMT is too high so Wirecard at 17% is nearly double that!

Whist I agree with your overall comments especially the very large 17% top holding in Wirecard. However, at this stage the allegations by the FT have been denied by Wirecard who categorically state there is no truth in their story. Hopefully, Alex Darwall will know more about this from the Wirecard board to justify such a substantial high conviction holding?

StellaN

masonic wrote: »

It depends entirely on whether or not they are able to generate sufficient capital growth from their underlying investments to support the pay out.

Article below from Ian Cowie which may me of interest.

Following the recent dividend cut and share price slippage - I have sold my holding in European Assets Trust (EAT).

Sceptics often warned that the price of a high income here would prove to be low total returns. It certainly gave me no pleasure to sell EAT at 100p this week after the shares peaked at 135p in January last year.

Allowing for an intervening capital re-organisation, I sold at much the same as I paid to invest in February, 2015. While the share price performance was never stellar, the dividend yield, which sometimes exceeded 7%, provided a substantial reason to hang on and hope for better times ahead. But a trend is only a trend until it stops and yesterday’s river grinds no flour. The sharp drop in net asset value (NAV) last year and the resulting reduction in this year’s dividend distributions added up to a double-whammy of bad news and a good reason to move on.

fun4everyone

MPN wrote: »

Hopefully, Alex Darwall will know more about this from the Wirecard board to justify such a substantial high conviction holding?

Darwalls Jupiter funds hold a very large amount of Wirecards shares. If he was to sell then that itself would cause a substantial drop in the price of them. Wirecards board most definitely do not want that so you would think they would just reassure him as much as they could.

If he was to be given insider knowledge on the company as well wouldnt that be breaking some laws?

Provident Financial/Woodford were in a similar situation a few years ago when they reassured Woody all was rosy with their change in strategy and it was having no material effect. Look what happened there :rotfl:

The point about large funds is a problem that happens lots of times imo. If you have £6bn under your management and 17% of that is in one company, kinda hard to sell the shares without crashing the price. A large fund is also limited in the companies it can take a meaningful position in. Very small funds have different problems as well, fees and trading costs can be a higher percentage I think. In general I prefer my passive funds to be large and my active funds to be a bit more nimble.

I am not having a go at Darwell, in an exception to the above I hold Jupiter European and am very happy with it

aroominyork

fun4everyone wrote: »

Darwalls Jupiter funds hold a very large amount of Wirecards shares. If he was to sell then that itself would cause a substantial drop in the price of them. Wirecards board most definitely do not want that so you would think they would just reassure him as much as they could.

Just for info, Darwell's IT and OEIC together seem to hold 5.38%(ish) of Wirecard shares.

Sue58

I did decide to invest in JEO last week. The trust seemed reasonably good value and trading a decent discount so we will have to wait and see how the Wirecard story effects the trust long term.

ArchBair

MPN wrote: »

Whist I agree with your overall comments especially the very large 17% top holding in Wirecard. However, at this stage the allegations by the FT have been denied by Wirecard who categorically state there is no truth in their story. Hopefully, Alex Darwall will know more about this from the Wirecard board to justify such a substantial high conviction holding?

Wirecard (and JEO) share price still seems to be struggling along so I think its it's a 'wait and see' scenario.