JPMorgan Emerging Markets Growth & Income (JMGI)

The past 12 months have been a strong period for emerging markets equities, which have outperformed their developed market peers thanks to a weakening US dollar, rising commodity prices, and robust returns from tech stocks embedded in the AI supply chain. However, JPMorgan Emerging Markets Growth & Income (JMGI) has delivered even stronger returns than the MSCI EM Index, notably through its exposure to tech hardware producers such as Taiwan Semiconductor Manufacturing and Samsung Electronics. Strong stock selection in the financials sector has also contributed meaningfully to Performance.

As a result of significant share price appreciation, managers Austin Forey and John Citron have reduced exposure to tech hardware, although these stocks remain among the Portfolio’s largest positions in absolute terms. In addition, for the first time in nearly a decade, Austin and John added oil exposure in the portfolio towards the end of 2025, establishing a new position in Petrobras, a Brazilian company. They identified an asymmetric opportunity in this stock, given its attractive valuation and dividend yield alongside low oil prices at the time of purchase. Another new position built in 2025 was Coforge, a smaller Indian IT services company, complementing already existing holdings in larger players such as Infosys and Tata Consultancy.

JMGI adopted an enhanced Dividend policy at the end of 2025, targeting annual dividends of 4% of last financial year’s closing NAV, payable quarterly. So far in the current financial year, the trust has paid or declared three interim dividends of 1.261p each (based on 30/06/25 NAV of 126.1p), suggesting a total dividend of 5.044p for the year and implying a prospective yield of c. 3.3%.