JPMorgan Emerging Markets Inv Trust
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
|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 %|
|Asia - Emerging||48.15 %|
|Asia - Developed||22.95 %|
|Latin America||13.33 %|
|United States||7.80 %|
|Financial Services||27.02 %|
|Consumer Cyclical||16.32 %|
|Consumer Defensive||14.04 %|
|Communication Services||11.00 %|
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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