Equity market moves and sector performance in March were dominated by the conflict in Iran with a high single-digit percentage fall in the value of markets, and a sharp defensive tilt with strong performance from the energy sector and relative outperformance from utilities, telecoms, and materials. Unsurprisingly, more economically sensitive and consumer sectors were hit harder, underperforming the market fall. There was also a strong element of flow driven volatility with markets reacting to events (and tweets) with frequent re-grossing and de-grossing driving markets up and down.
Figure 1: MSCI Europe sectors in March
Sector | Performance |
Energy Utilities Telecoms Materials Healthcare MSCI Europe Financials IT Consumer Staples Industrials Consumer Discretionary Real Estate | +22.30% -3.25% -5.22% -5.42% -7.54% -7.67% -8.15% -9.13% -11.41% -11.69% -12.65% -16.11% |
Source: Factset as at 2 April 2026. Past performance does not predict future returns.
We should recognise that the sharp falls in March only reverse share gains in January and February. Given the potential of this crisis to go on and to metastasize into something worse we think flat year-to-date performance is quite a benign result. To be clear, following strong outperformance in the first two months of the year, the Jupiter European Fund and the Jupiter European Select both underperformed in March, with the underperformance of Jupiter European more modest.
We generally have less exposure to telecoms, utilities, and food retailers as many of these businesses fail to earn returns above their cost of capital – however these areas are considered defensive and often outperform in swift market downturns, as they did in March. Avoiding low-return businesses seeks to add meaningful value over the medium and long term and is central to our investment process, but it can be painful in the short run, and we have had to think carefully about portfolio construction to avoid an unintended and concentrated factor risk. We have allowed cash levels to drift up, and we have ensured fund betas remained close to one whilst stock specific risk has been high and factor risk very low.
At the time of writing, our overall framework for how this conflict unfolds has not changed much over the last month; While we initially hoped the Middle East conflict might resolve within four to six weeks, we have low conviction in our ability to predict outcomes. This uncertainty has reinforced our decision to avoid tilting the portfolios either defensively or cyclically: we see plausible bullish and bearish paths ahead and judge each as roughly equally likely. We will remain vigilant and make whatever changes as they are required.
The most significant change we made to the funds in March was to buy back into energy stocks; we had a preexisting position in Subsea7, an oil services business but had sold our positions in Total and Shell last year, which in retrospect was not a great move. Our reason for selling Total and Shell had been a view that neither stock was particularly cheap and we did not expect oil and gas prices to do much; since the conflict oil and gas prices have shifted up, increasing free cash flow for energy companies and we expect these prices to remain high for some time, even with a resolution due to the need for stock building – a need that has surely been revealed as important, given the closure of the Strait of Hormuz.
It is hard to provide a strong outlook at the current time: prior to the conflict, we had been positive on the prospects for European markets and economies but the longer this conflict lasts the greater the risk of economic degradation and earnings downgrades. Whilst 60% of the revenues of the European market are derived from outside of Europe, over 20% of these revenues are from Asia, which will likely be hit harder than Europe by rising energy costs and potential energy shortages. The European equity market is not expensive at P/E of 14.6x so if the conflict is resolved soon, we expect a sharp bounce back.
Performance for March and year to date
The funds had strong performance in February, continuing their run over the last few months in a market for European equities that has itself been strong. In March the funds underperformed, but they remain ahead of their respective indices YTD:
Performance Jupiter European I GBP Acc
Performance under new team %
| YTD | 1 month | 3 months | 6 months | Since IM Inception* |
Jupiter European | -0.3 | -9.7 | -0.3 | 7.4 | 13.0 |
FTSE World Europe ex UK | -2.0 | -8.7 | -2.0 | 4.4 | 11.5 |
IA Europe ex-UK | -3.6 | -9.1 | -3.6 | 1.2 | 6.3 |
Rolling 12-mo performance %
| Apr 2016 - Mar 2017 | Apr 2017 - Mar 2018 | Apr 2018 - Mar 2019 | Apr 2019 - Mar 2020 | Apr 2020 - Mar 2021 |
Jupiter European | 15.37% | 16.65% | 7.74% | 2.59% | 20.27% |
FTSE World Europe ex UK | 27.88% | 4.26% | 2.57% | -7.96% | 34.86% |
IA Europe ex-UK | 24.21% | 5.80% | -1.24% | -9.23% | 39.55% |
| Apr 2021 - Mar 2022 | Apr 2022 - Mar 2023 | Apr 2023 - Mar 2024 | Apr 2024 - Mar 2025 | Apr 2025 - Mar 2026 |
Jupiter European I Acc | 9.55% | 2.02% | 12.25% | -8.94% | 17.58% |
FTSE World Europe ex UK | 6.51% | 8.73% | 13.78% | 3.79% | 16.50% |
IA Europe ex-UK | 4.35% | 6.60% | 12.46% | 0.85% | 11.79% |
Past performance does not predict future returns. Source: Morningstar, NAV to NAV, gross income reinvested, net of fees. Jupiter European I GBP Acc, to 31.03.26. * Since IM Inception 12.05.25.
Performance Jupiter European Select D EUR ACC
Performance under new team %
| 1 month | 3 months | 6 months | Since IM inception* |
Jupiter European Select | -8.4 | 0.9 | 8.7 | 9.8 |
MSCI Europe | -7.7 | -0.9 | 5.3 | 8.8 |
Rolling 12-month performance %
| 01 Apr '16 | 01 Apr '17 | 01 Apr '18 | 01 Apr '19 | 01 Apr '20 |
Jupiter European Select | 7.2 | -8.9 | 9.6 | -0.1 | 25.4 |
MSCI Europe | 17.0 | -0.4 | 5.5 | -13.1 | 35.3 |
| 01 Apr '21 | 01 Apr '22 | 01 Apr '23 | 01 Apr '24 | 01 Apr '25 |
Jupiter European Select | 6.7 | 2.0 | 13.4 | -6.4 | 13.4 |
MSCI Europe | 9.3 | 3.8 | 14.8 | 6.9 | 11.7 |
Past performance does not predict future returns. Source: Morningstar, NAV to NAV, gross income reinvested, net of fees, Jupiter European Select D EUR Acc, to 31.03.26.
Benchmark: MSCI Europe. * Since IM Inception 12.05.25.
European Select fund risks
- Currency (FX) Risk - The fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Share Class Hedging Risk - The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
- Pricing Risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Market Concentration Risk (Geographical Region/Country) - Investing in a particular country or geographic region can cause the value of this investment to rise or fall more relative to investments whose focus is spread more globally in nature.
- Derivative risk - the fund may use derivatives to reduce costs and/or the overall risk of the strategy (this is also known as Efficient Portfolio Management or "EPM"). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the strategy.
- Liquidity Risk (general) - During difficult market conditions there may not be enough investors to buy and sell certain investments. This may have an impact on the value of the fund.
- Counterparty Default Risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the fund’s assets.
European Fund risks
- Currency (FX) Risk - The Fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Pricing Risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Market Concentration Risk (Geographical Region/Country) - Investing in a particular country or geographic region can cause the value of this investment to rise or fall more relative to investments whose focus is spread more globally in nature.
- Derivative risk - The Fund may use derivatives to reduce costs and/or the overall risk of the Fund (this is also known as Efficient Portfolio Management or "EPM"). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the Fund.
- Counterparty Default Risk - The risk of losses due to the default of a counterparty e.g. on a derivatives contract or a custodian that is safeguarding the Fund's assets.
- For a more detailed explanation of risk factors, please refer to the "Risk Factors" section of the Scheme Particulars.
Important information
This is a marketing communication. This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors. This document is for informational purposes only and is not investment advice. The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Past performance does not predict future returns. The views expressed are those of the individuals mentioned at the time of writing, are not necessarily those of Jupiter as a whole, and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. Company or holding examples are for illustrative purposes only and are not a recommendation to buy or sell. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given.
The Jupiter European Fund is authorised and regulated by the Financial Conduct Authority. Please refer to the latest Prospectus and to the Key Investor Information Document (KIID) before making any investment decision. Particularly to the fund/sub-fund investment objective, characteristics including those related to ESG (if applicable), and additional risk factors. These documents are available for download from www.jupiteram.com or can be obtained free of charge upon request.
Issued by Jupiter Unit Trust Managers Limited and Jupiter Asset Management Limited which are both authorised and regulated by the Financial Conduct Authority and their registered address is The Zig Zag Building, 70 Victoria Street, London SW1E 6SQ.
The Jupiter European Select is a UCITS fund incorporated as a Société Anonyme in Luxembourg and organised as a Société d’Investissement à Capital Variable (SICAV).
Please refer to the latest Prospectus and to the Key Investor Information Document (KIID) (for investors based in the UK) and Key Information Document (KID) (for investors based in the EU) before making any investment decision. Particularly to the sub-fund’s investment objective, characteristics including those related to ESG (if applicable), and additional risk factors.
These documents are available from www.jupiteram.com or from www.eifs.lu/jupiteram or from:
France: CACEIS Bank France (Centralising Agent), 1/3 Place Valhubert, 75013 Paris, France.
Italy: Allfunds Bank, S.A.U., Milan Branch, Via Bocchetto 6, 20123 Milano, Italy. CACEIS Bank, Italy Branch Via Piazza Cavour 2,20121 Milano, Italy. Société Générale Securities Services, Via Benigno Crespi 19, 20159 Milano, Italy. The sub-fund has been registered with the Commissione Nazionale per le Società e la Borsa (CONSOB) for the offer in Italy to retail investors.
Luxembourg: the Company’s registered office: 31 Z.A. Bourmicht L-8070 Bertrange, Grand Duchy of Luxembourg.
Spain: Allfunds Bank, C/ La Estafeta 6, Edificio 3, 28109 Alcobendas, Madrid, Spain. For the purposes of distribution in Spain, the Company is registered with the Spanish Securities Markets Commission – Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 1253, where complete information, including a copy of the marketing memorandum, is available from the Company authorised distributors. Subscriptions should be made through a locally authorised distributor. The net asset value is available on www.jupiteram.com.
Hong Kong: Jupiter Asset Management (Hong Kong) Limited, Suite 1706, Alexandra House, 18, Chater Road, Central, Hong Kong.
Switzerland: The representative in Switzerland is FIRST INDEPENDENT FUND SERVICES LTD., Feldeggstrasse 12, CH-8008 Zurich. The paying agent in Switzerland is NPB New Private Bank Ltd., Limmatquai 1, CH-8001 Zurich. The prospectus, the key information documents, the articles of association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland.
United Kingdom: Jupiter Asset Management Limited (the Investment Manager and UK Facilities Agent), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ, United Kingdom, authorised and regulated by the Financial Conduct Authority.
Information is also available on how subscriptions and redemptions can be made, and arrangements related to investor rights and complaints handling.
Unless otherwise specified in this document, The Bank of New York Mellon SA/NV, Luxembourg Branch (the Company’s Depositary and Administrator) is responsible for processing subscription, repurchase and redemption orders and making other payments to Shareholders. The Bank of New York Mellon SA/NV, Luxembourg Branch, Luxembourg Branch,2-4,Rue Eugène Ruppert, L-2453 Luxembourg, email Distributors: JupiterLUXdistributor@bny.com, email Investors: JupiterLUXinvestor@bny.com
Issued in the EU by Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier. No part of this document may be reproduced in any manner without the prior permission of JAM/JAMI.