JPMorgan Emerging Markets Growth & Income (JMGI)

Emerging market equities have delivered strong returns since the start of the year, but these have been particularly concentrated in a handful of companies providing essential components to the build-out of AI infrastructure. JPMorgan Emerging Markets Growth & Income (JMGI) has kept pace with its benchmark thanks to its overweight positions in hardware-related companies such as SK Hynix, Samsung Electronics, and Delta Electronics, as well as its limited exposure of Chinese companies engaged in fierce price competition.

JMGI’s Portfolio remains overweight to these companies as well as the information technology sector more broadly, as managers Austin Forey and John Citron believe they should continue to benefit from spending on AI. That said, they have taken some profits from their hardware-related holdings following their strong rally and used the proceeds to build new positions in companies unrelated to AI but also offering strong growth potential as well as attractive valuations. These include, for example, Chinese company Fuyao Group, one of the world’s leading automotive glass producers, as well as Hanwha Aerospace, South Korea’s largest defence contractor. Austin and John have also found opportunities in the Middle East such as Abu Dhabi Islamic Bank (ADIB), JMGI’s first-ever UAE-listed holding, as valuations in the region have become more attractive following the outbreak of the conflict in Iran.

FY 2027 is the first financial year in which JMGI’s new enhanced Dividend policy will apply in full. A first interim dividend of 1.882p was paid on 14/08/2026, with the remaining three instalments expected to be paid in November 2026, February 2027, and May 2027. This amounts to a total dividend of 7.528p for FY 2027, resulting in a prospective yield of 4.5%, which compares favourably with the 2.6% weighted-average dividend yield of the AIC Global Emerging Markets sector and the 2.0% dividend yield of the MSCI EM.