Page 8 - DIY Investor Magazine - Issue 28

HE RAPID GROWTH POTENTIAL FOR EMERGING MARKETS INVESTMENTS THE TOP EMERGING MARKETS INVESTING THEMES YOU SHOULD KNOW We explore the themes and companies exciting the JPMorgan Emerging Markets Investment Trust’s lead portfolio manager Austin Forey. INVESTING IN COMPANIES, NOT COUNTRIES Is the future in China? Can Brazil bounce back? Industrials or IT? Emerging markets investors will be looking for the winners of the much-vaunted “K-shaped” recovery but, rather than chasing market or sector-specific waterfalls, the team behind the JPMorgan Emerging Markets Investment Trust is firmly sticking to its “companies not countries” strategy of evidence- based stock selection. “A clear focus on targeting strong fundamentals and long-term growth potential will, in our opinion, continue to drive gains,” says lead portfolio manager, Austin Forey, who has led the trust since 1994. PERFORMANCE Benchmark MSCI Emerging Markets Index (Net) 2015/2016 2016/2017 Share Price 28.48% 29.41% Nav 29.87% 27.83% Benchmark 32.63% 25.40% ‘TARGETING STRONG FUNDAMENTALS AND LONG-TERM GROWTH POTENTIAL’ This has proven an enduringly successful strategy: the trust has outperformed its benchmark for the last 10 calendar years, and, was Investment Week’s Emerging Markets Investment Company of the Year in 2020. The trust’s strategy has paid off during the pandemic period in which we’ve seen the dramatic acceleration of themes where the trust is already invested. These will become ever-more- important to emerging market investors going forwards. JPMorgan Emerging Markets Investment Trust: Quarterly rolling 12-month performance (%) as at end of December 2020. Quarterly Rolling 12 Months As of 31/12/2020 Cumulative As of 28/02/2021 Annualised As of 28/02/2021 2017/2018 -1.55% -4.63% -9.26% 2018/2019 26.29% 20.41% 13.89% 2019/2020 24.88% 23.08% 14.65% Past performance is not a guide to current and future performance. The value of your investments and any income from them may fall as well as rise and you may not get back full amount you invested. Source: J.P. Morgan Asset Management/Morningstar. Net asset value performance data has been calculated on a NAV to NAV basis, including ongoing charges and any applicable fees, with any income reinvested, in GBP. NAV is the cum income NAV with debt at fair value, diluted for treasury and/or subscription shares if applicable, with any income reinvested. Share price performance figures are calculated on a mid market basis in GBP with income reinvested on the ex-dividend date. The performance of the company’s portfolio, or NAV performance, is not the same as share price performance and shareholders may not realise returns which are the same as NAV performance. DIY Investor Magazine | Apr 2021 8