Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by JPMorgan Emerging Markets. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
A new version of this profile is available. View Latest
Overview

Austin Forey, who has managed JPMorgan Emerging Markets (JMG) since 1994, takes an ultra-long-term approach to stock-picking, aiming to identify long-term structural winners and then be patient, ignoring macroeconomic noise and letting the extra growth potential in quality stocks come through.

He draws on the research of one of the largest emerging-markets research teams, who conduct standardised research across the emerging-markets stock markets, allowing cross-border comparisons and aiding the uncovering of the leading stocks in the hugely diverse region. Their process has led them to favour technology- and e-commerce-related names in recent years, as well as financials, and to avoid more asset-intensive and indebted sectors.

The result has been outstanding long-term returns, JMG having been the top performer in the AIC Global Emerging Markets sector over five- and ten-year periods. As we discuss in the Performance section, performance has been good in both rallying and troubled markets. In recent years some of the top-performing stock picks have been companies the trust has owned for one or two decades, illustrating the benefits of taking a long-term approach and avoiding the temptation to sell and book gains.

Austin has seen numerous crises in his career and has responded calmly to this latest one, making no changes to the portfolio except to examine the case for certain high-quality stocks which are now cheaper and might be good additions to the portfolio.

JMG trades on a slight premium to the sector, with the discount currently 9.7%, compared to a sector average of 12%, although discounts have been extremely volatile in the choppy markets following the emergence of the pandemic.

Kepler View

In our view, investors should invest in JMG using the same approach that Austin takes to stocks: as a core quality holding to invest in and forget about for years and years. While the discount may presently be tighter than that of the average trust in its sector, and tighter than its own five-year average, this is more than worth paying for the growth potential in the portfolio.

Furthermore, we think that the changes that the coronavirus is causing to economies are playing into some of the strengths of the portfolio. E-commerce, software and hardware are all likely to receive a relative boost from the crisis as consumers increasingly shop from home and companies and individuals invest in technology to maintain social distancing. Furthermore, as Austin argues, high-quality companies often come out of crises in good shape because they win business from weaker competitors.

We would also argue that it has never been more obvious how valuable having an experienced manager can be. As the coronavirus continues to ravage economies, having a management team who can remember how bleak it seemed at the nadir of past crises, and how companies with certain characteristics behaved during and following these crises, should lead to better results. As Austin tells us, it is so easy to make rash and bad decisions at times like these. In our view, the best investors stick to their long-term plan, and that is how Austin has reacted.

bull bear
Long-term approach to stock-picking has led to consistent outperformance Reticence to gear limits potential in rising markets (as it limits losses in falling markets)
Huge research team allows full and detailed coverage Yield is low, so unlikely to appeal to income-seekers
Manager's experience extends to 1994 and includes numerous crises Strong growth tilt to portfolio could lead to underperformance if value style outperforms
Continue to Portfolio
2024 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

24 Jan 2024 Fund Analysis
JMG aims to hold multi-cycle winners over the long run…
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
20 Sep 2023 Five questions about emerging markets
We track key developments in the diverse emerging markets universe…
12 Apr 2023 Fund Analysis
JMG aims to own multi-cycle winners for the long run…
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
16 Nov 2022 Fund Analysis
JMG is trading on a wide discount relative to history…
13 Jul 2022 Ready player one
We wonder where, if anywhere, should investors look for returns after a tumultuous first half of the year…
02 Mar 2022 Fund Analysis
JMG is aimed at investors who want to maximise their outperformance over the long term…
08 Dec 2021 We are the (ESG) champions
Investment trusts tend to be amongst the best-performing ESG strategies in the combined open- and closed-ended universe…
26 May 2021 Fund Analysis
JMG has delivered exceptional long-term returns with a patient, high conviction approach…
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
11 Nov 2020 Fund Analysis
JMG has had another outstanding year despite the pandemic…
11 May 2020 Fund Analysis
JMG’s patient, low-turnover approach has left it top of the performance tables…
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
14 Aug 2019 Dangerous ground: the perils of timing the market
Our research shows that attempting to time the market is, more often than not, a mug's game...
10 Jul 2019 Fund Analysis
JPMorgan Emerging Markets uses deep resources to identify companies with the potential to continue compounding earnings faster than the market...
30 Jan 2019 The Growth Portfolio
Our ten investment trust picks for long-term capital growth...
21 Dec 2018 Fund Analysis
The trust has been a consistent outperformer investing in volatile emerging markets...
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.