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
|Tencent Holdings Ltd||6.06 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||5.76 %|
|Housing Development Finance Corp Ltd||5.72 %|
|Alibaba Group Holding Ltd ADR||4.92 %|
|AIA Group Ltd||4.58 %|
|EPAM Systems Inc||4.50 %|
|IndusInd Bank Ltd||4.32 %|
|Ping An Insurance (Group) Co. of China Ltd Class H||3.88 %|
|Tata Consultancy Services Ltd||3.53 %|
|Clicks Group Ltd||2.27 %|
|Asia - Emerging||49.44 %|
|Asia - Developed||16.84 %|
|Latin America||15.80 %|
|United States||6.43 %|
|Financial Services||34.29 %|
|Consumer Cyclical||15.07 %|
|Consumer Defensive||14.64 %|
Austin Forey is a Portfolio Manager for JPMorgan Asset Management, based in London, England. He is responsible for global emerging markets, a role he has fulfilled since 1994. Austin has investment experience since 1988. Prior to his current role at JPMorgan, Austin worked as Deputy Head of UK research in the UK market. He has also worked as a Research Analyst covering engineering and finance where his responsibilities included co-managing a mid-cap investment trust and two specialist unit trusts. Austin earned a BA and a PhD in Modern Languages from Cambridge University.
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