Hargreaves Lansdown has removed a further Jupiter fund from its wealth 150 buy list, with Elena Shaftan’s Jupiter emerging European opportunities fund failing to make the cut.
Analyst Rob Morgan says the recent months have been challenging for manager Shaftan, noting her underperformance of the wider market.
He says: “Part of the problem is that larger, better-known companies have attracted the majority of new investment in the region recently; perhaps owing to investors favouring relative safety and predictability over stronger growth prospects.
“It has meant they have outperformed many of the higher risk smaller companies Elena Shaftan believes offers the best potential for long-term returns. However, our analysis suggests her stock selection has also been mixed; a critical factor in the performance of a concentrated portfolio such as this.”
Morgan adds: “In the past, any periods of poorer performance at a stock level were often largely offset by other factors such as Elena Shaftan’s shrewd sector and country allocation.
“Unfortunately, this has not been the case in more recent years. For instance the fund’s exposure to Turkey has been positive, but has not made up for underperformance within other elements of the portfolio. Therefore, as a precautionary measure we have removed the fund from the Wealth 150 while we monitor it for signs of a sustained improvement.”
The Hargreaves Lansdown analyst says it was not a suggestion for exisiting investors to sell the fund as “it still represents a good investment in the higher risk eastern European region”.
Yet, the fund’s weaker performance in recent years had lessened its conviction in the fund.
It is the second Jupiter fund to be removed from the influential fund buy recently after Phillip Ehrmann’s Jupiter China Sustainable Growth fund was cut from the list earlier on this week.