JPMorgan Emerging Markets Inv Trust
Rated Fund 2014, 2018-19. Taps into domestic consumption growth
Taking the title of Best Emerging Markets Trust in Money Observer’s 2018 investment trust awards, JP Morgan Emerging Markets is one of the largest global emerging market trusts and boasts highly competitive returns over three, five and 10 years. It deserves to trade on a tighter discount than the 10% its board tends to defend.
Austin Forey has run the trust since 1994. He has spent his entire career at JP Morgan and has notched up three decades of industry experience, the bulk of which have been in emerging markets.
His process is tried and tested, taking a long-term approach and focusing on firms with attractive earnings, strong balance sheets, excess returns on capital, sustainable competitive advantages, an ability to grow market share and potential to generate significant shareholder value.
Forey tends to have a bias towards domestic consumption growth and the portfolio tends to be dominated by financials (34% at the end of 2018) and consumer staples (17%).
As well as being heavily invested in such sectors where disruption is likely to be low, he also backs the beneficiaries of disruption in other industries where incumbents are more vulnerable. The trust’s second-largest sector weighting, at 19%, is information technology. Chinese internet group Tencent and its tech peer Alibaba, the ecommerce group, are significant holdings for this trust.
These companies are also favourites of managers of funds in the Baillie Gifford stable, for example James Anderson and Tom Slater of Scottish Mortgage, a Global Growth fund that has been a Rated Fund since 2013. For this reason, holding these funds together might not be such a good idea.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Housing Development Finance Corp Ltd||6.10 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||5.99 %|
|Tencent Holdings Ltd||5.46 %|
|Alibaba Group Holding Ltd ADR||5.01 %|
|AIA Group Ltd||4.48 %|
|EPAM Systems Inc||4.41 %|
|Ping An Insurance (Group) Co. of China Ltd Class H||3.97 %|
|Tata Consultancy Services Ltd||3.86 %|
|IndusInd Bank Ltd||3.29 %|
|MercadoLibre Inc||2.34 %|
|Asia - Emerging||50.65 %|
|Asia - Developed||17.65 %|
|Latin America||15.63 %|
|United States||5.85 %|
|Financial Services||33.10 %|
|Consumer Defensive||16.38 %|
|Consumer Cyclical||16.25 %|
Austin Forey, managing director, is a Portfolio Manager for JPMorgan Asset Management within the Emerging Markets and Asia Pacific (EMAP) Equities team, based in London. An employee since 1988, Austin has fulfilled his role as a GEM portfolio manager since 1994. Prior to this he worked in the U.K. team, where he was deputy head of U.K. research. Before this, Austin worked as a research analyst covering engineering, and subsequently all financial sectors. Austin obtained a B.A. in Modern Languages from Cambridge University, and earned a Ph.D. in Modern Languages from Cambridge University.
Data provided by Morningstar.
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