JPMorgan Emerging Markets Dividend Income (JEMI)

Emerging market equities have staged a comeback over the past 12 months (to 07/04/2026), delivering almost twice the returns of their developed market peers. Yet, JPMorgan Emerging Markets Dividend Income (JEMI) — formerly JPMorgan Global Emerging Markets Income Trust — has done even better, generating returns ahead of the MSCI Emerging Markets Index (MSCI EM). This outperformance was driven largely by the trust’s exposure to banks, which have benefited from favourable interest rate environments, while an underweight allocation to Indian equities also contributed positively to relative performance. Although the trust changed its name in January 2026, the strategy remains the same, with lead manager Omar Neygal focussing on high-quality, dividend-paying companies trading at attractive valuations.

Over the past year, Omar increased the Portfolio’s exposure to Chinese consumer names, adding to holdings such as hotel management company H World, as he is seeing signs of improving consumption in China alongside better corporate governance. He also raised exposure to commodity-related companies, including Petrobras, thanks to improved dividend policies and supportive economic backdrops in a range of countries, including Brazil. In addition, Omar added to some attractively valued technology stocks, including Samsung Electronics. However, overall exposure to the information technology sector has been reduced — particularly AI-related names — as he believes many now trade on elevated valuations.

So far in the trust’s current financial year, the first interim Dividend has been paid and the second announced, each amounting to 1.5p. This represents a 50% year-on-year increase compared with the equivalent interim dividends paid in FY 2025 and results in a historic yield of c. 3.7%. Over the past 12 months, the trust’s Discount has also narrowed from 12.0% to 9.3%.