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magazineThis trust remains an emerging markets gem
JPMORGAN GLOBAL EMERGING MARKETS INCOME TRUST JEMI 127.5p
Loss to date: 6.6%
Original entry point: Buy at 136.5p, 19 September 2019
Our bullish call on JPMorgan Global Emerging Markets Income Trust (JEMI) is currently 6.6% in loss, likely reflecting anxieties over slowing economies, US-China trade tensions and the stubbornly strong US dollar.
Yet we are increasingly confident in the prospects for the fund, a lower risk play on far-flung developing economies as it invests in a diversified portfolio of high yield, high profitability companies with good governance structures.
Results for the year to July (18 Oct)demonstrated a commendably strong performance against a backcloth of rising trade tensions.
Managed by Omar Negyal, Jeffrey Roskell and Amit Mehta, the trust outperformed the MSCI Emerging Markets index by a considerable margin thanks to a strong contribution from financials including Russia’s Sberbank plus Chinese firms like electrical appliance maker Midea, not to mention Taiwan Semiconductor Manufacturing and Kimberly-Clark de Mexico.
SHARES SAYS: Despite a weakening corporate performance across emerging markets, we are sticking with JPMorgan Global Emerging Markets Income Trust for its diversified dividend income stream and compelling long-term capital growth scope.
Important information:
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
