JPMorgan Emerging Markets Inv Trust

Emerging Markets

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
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
1.17 %
Risk Rating
3
3 Year Sharpe
1.20
3 Year Alpha
4.42
Yield
1.7 %
Benchmark
MSCI EM NR GBP
Fund Size
£ 1.19 billion
NAV
1,060
Gearing
100
Discount Premium
-9
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 %
Housing Development Finance Corp Ltd 6.20 %
Tencent Holdings Ltd 5.75 %
Taiwan Semiconductor Manufacturing Co Ltd ADR 5.71 %
Alibaba Group Holding Ltd ADR 4.66 %
IndusInd Bank Ltd 4.26 %
AIA Group Ltd 4.05 %
EPAM Systems Inc 3.86 %
Tata Consultancy Services Ltd 3.73 %
Ping An Insurance (Group) Co. of China Ltd H 3.60 %
Clicks Group Ltd 2.60 %
Region %
Asia - Emerging 47.32 %
Latin America 17.37 %
Asia - Developed 16.86 %
Africa 11.19 %
United States 5.61 %
Sector %
Financial Services 34.39 %
Technology 26.36 %
Consumer Defensive 15.61 %
Consumer Cyclical 13.76 %
Industrials 6.48 %
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 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.

Data provided by Morningstar.

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