JPMorgan Emerging Markets Inv Trust

Emerging Markets

Rated Fund 2014 and 2018-20. Taps into domestic consumption growth

JPMorgan Emerging Markets, which took the title of Best Emerging Markets Trust in Money Observer’s 2018 and 2019 investment trust awards, is one of the largest global emerging market trusts and the top performer in its sector over all notable periods. Charles Stanley, a wealth management firm, and IpsoFacto Investor, an online investment advisory service, regard it as a sensible core holding for investors seeking long-term exposure to emerging markets.

Experienced emerging markets investor Austin Forey has run the trust since 1994. He buys well-managed companies at sensible prices and has a strong record of selecting medium-sized and larger companies. He takes a long-term approach and focuses on businesses 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 typically has a bias towards domestic consumption growth, and the portfolio tends to be dominated by financials (33% at the end of 2019) and consumer staples (18%). The trust’s second-largest sector weighting, at just over 18%, is information technology. Chinese internet group Tencent and its tech peer Alibaba, the ecommerce group, are significant holdings.

These firms are also favourites of managers of funds in the Baillie Gifford stable, for example, James Anderson and Tom Slater at Scottish Mortgage, a global growth investment trust and a Rated Fund since 2013, so holding both these trusts might not be a good idea.

The board of JPMorgan Emerging Markets tends to defend a 10% discount – the discount has ranged from 6% to 15% over the past three years. This is in line with the wider sector, where the average discount is currently 8%.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
JPMorgan Emerging Markets Inv Trust
Manager
JP Morgan Asset Management (UK) Ltd
Type
Closed Ended Investment Company
ISIN
GB0003418950
Sector
Global Emerging Markets
Launched
16/07/1991
OCF
1.02 %
Risk Rating
4
3 Year Sharpe
0.57
3 Year Alpha
5.57
Yield
1.3 %
Benchmark
MSCI EM NR GBP
Fund Size
£ 1.28 billion
NAV
1,147
Gearing
99
Discount Premium
-8
The underlying investment aims to maximise total returns from emerging markets worldwide. It provides investors with a diversified portfolio, concentrating on countries and shares with the most attractive opportunities. Returns are principally determined by the performance of the investments made by the underlying company. Investments in emerging markets tend to be volatile and are usually considered to carry a greater degree of risk than investments in established markets. This relates to dealing, settlement and custody practices, the possibility of political or economic instability, and developing legal, fiscal and regulatory structures.The underlying fund may be denominated in or hold assets in a currency other than Sterling. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations.
Holding %
Taiwan Semiconductor Manufacturing Co Ltd ADR 7.78 %
Tencent Holdings Ltd 7.67 %
Alibaba Group Holding Ltd ADR 6.52 %
EPAM Systems Inc 5.58 %
Housing Development Finance Corp Ltd 4.89 %
AIA Group Ltd 4.11 %
Ping An Insurance (Group) Co. of China Ltd Class H 3.82 %
MercadoLibre Inc 3.70 %
Tata Consultancy Services Ltd 3.52 %
Clicks Group Ltd 2.21 %
Region %
Asia - Emerging 48.15 %
Asia - Developed 22.95 %
Latin America 13.33 %
United States 7.80 %
Africa 5.98 %
Sector %
Financial Services 27.02 %
Technology 22.16 %
Consumer Cyclical 16.32 %
Consumer Defensive 14.04 %
Communication Services 11.00 %
Name
JP Morgan Asset Management (UK) Ltd
Address
EC4Y 0JP, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Austin Forey
Joined 06/01/1994

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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