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JPMorgan Global Emerging Markets Income Trust

January 8, 2024
Harvest News
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JPMorgan Global Emerging Markets Income Trust

This month’s Fund in Focus is JPMorgan Global Emerging Markets Income Trust plc. Emerging markets, on any historic comparative measure, represent a particularly attractive opportunity for investors currently. We feel that now is a good time to take a position in EM on a 3-5 year view. The JP Morgan GEMIT aims to provide a dividend income, along with the potential for long-term capital growth from a diversified portfolio of emerging markets investments. The fund is currently trading at a 13% discount to its net asset value. The Company predominantly invests in quoted companies although, in some instances, it may invest in other types of securities. The Company has the ability to use borrowing to gear the portfolio to up to 20% of net assets where appropriate. The current regional exposures of the fund are shown below.

Points to Note:

  • The portfolio has a markedly higher dividend yield and a marginally lower average price/earnings ratio than the index, but also a greater emphasis on quality, with a higher return on equity and lower net debt ratio. The current dividend yield is 4.2%
  • The fund’s philosophy is a two-pronged one, focusing on both value and quality. Fund Manager, Omar Negyal states, “Value’s central because we have a strong discipline around the dividend yield we’re looking for” he explains. “But quality is important because we’re thinking not just about the yield itself, but about the resilience and long-term growth potential of the dividend.”
  • The fund comprises a blend of stocks delivering higher yield alongside those with lower yields but greater dividend growth potential.

As always, you should only consider the investment views contained in this JPMorgan Global Emerging Markets Income Trust Market Fund update in the context of your own attitude to risk and how such choices might impact your Asset Allocation model. Should you wish to discuss your investment portfolio, please contact Harvest Financial Services on 01 2375500 or email justask@harvestfinancial.ie.

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This marketing information has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and/or capacity for loss of any particular person. It should not be relied upon to make investment decisions.
Warning: The return may increase or decrease as a result of currency fluctuations.
Warning: The figures refer to the past. Past performance is not a reliable indicator of future results.
Warning: The value of your investment may go down as well as up. You may get back less than
you invest.
Warning: The income you get from this investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.