Fund Profile


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.

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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.

Analyst's 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, we think this worth paying for the growth potential in the portfolio.

Furthermore, we think that the changes 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, could 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
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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...
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