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

JPMorgan Emerging Markets 11 November 2020


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.

A new version of this profile is available. View Latest

JPMorgan Emerging Markets (JMG) has more than doubled the returns of the MSCI Emerging Markets on a NAV total return basis over ten years thanks to a successfully implemented quality growth strategy, not to mention a portfolio tilt towards technology and consumer companies. As we discuss in the Performance section, 2020 has been a particularly good year for JMG thanks to stock selection decisions made in the preceding years and months.

JMG is managed by Austin Forey, who takes a long-term approach to investing, with low turnover and high portfolio concentration. As we discuss in the Portfolio section, a number of the largest positions in the portfolio have been held for over a decade, and some for over two decades. Austin aims to find companies which can compound their earnings faster than the market consistently and avoid trying to time the market by selling out and buying in again.

Austin has managed the portfolio since 1994, giving him a rare length of experience through numerous crises in emerging markets, which has proven useful during this crisis. His reluctance to take on debt at the portfolio level and to buy highly leveraged companies has helped returns, while he has also resisted the temptation to make radical changes in volatile markets. In fact, Austin believes that a portfolio like his, with strong quality characteristics, should be able to withstand the pressures of the pandemic and many companies should even be able to take advantage by winning market share from weaker competitors.

Following strong performance, the discount has narrowed to 5.6% compared to an AIC Global Emerging Markets sector average of 8.9%.

Analyst's View

We think JMG is the premium generalist emerging markets trust. The outstanding long-term performance is one reason. The risk controls applied to ensure stock selection counts rather than geography is another. This has been particularly important in 2020, when country performance diverged markedly as the pandemic made local conditions critical. Austin’s long tenure is another key selling point. His experience of past crises has moulded his strategy and have contributed to the good performance during this one.

Probably the key risk is stylistic and sectoral; JMG is heavily tilted to technology and e-commerce, which some might worry are due a period of underperformance. However, we note some of the holdings in this area are in countries far behind the West or China in the digitalisation process. We now have a road map for these industries’ development, which means a position in SEA or MercardoLibre could be less of a risk than one in Amazon or Alibaba was five years ago.

The high valuations in these areas and the high weight in financials might explain the tendency to underperform in recent pullbacks. However, we think the high quality nature of the portfolio means that it should outperform in any sustained slump the pandemic may cause. JMG may underperform in a sharp cyclical recovery, but we are persuaded the high quality businesses are likely to be taking market share in this crisis which should help them expand faster over the next cycle.

bull bear
Long-term approach to stock-picking has led to consistent outperformance Strong style and sector biases could lead to underperformance at times
A manager with vast experience in the region who has worked through numerous crises Reticence to gear limits potential in rising markets (as it limits losses in falling markets)
Huge research team allows for full and detailed coverage Yield is low, so unlikely to appeal to income-seekers
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
(LON:JMG) 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…
27 May 2020 Emerging markets, but not as you know them
We discuss the companies invested in by JPMorgan Emerging Markets Trust, which are keeping their developed market peers on their toes…
11 May 2020 The long run: experience is the key in volatile emerging markets
Coronavirus is just the latest in a series of crises that have hit emerging markets over the last two decades. Trusting a fund manager with experience of selecting stocks successfully through crises could be crucial in this unique sector…
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…
02 Sep 2019 The key to unlocking emerging markets
We discuss how the global resources of JPMorgan Asset Management have bolstered the performance of JPMorgan Emerging Markets Trust...
14 Aug 2019 Dangerous ground: the perils of market timing
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...
08 Jan 2019 Discounts in focus: JPM Emerging Markets
Despite beating all of its peers over five years, and a highly experienced and well resourced manager, this trust continues to trade on a wide discount...
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
Please enter a valid password
Please enter a valid email address
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
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
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
Please select an option
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
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
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.