fund
JPM Emerging Markets B
A core global emerging markets fund.
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204.80p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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471.10p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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1.00%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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1.18%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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0.50%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
This fund aims to achieve capital growth by investing in equities of emerging markets. Austin Forey leverages off JPMorgan's extensive presence in the emerging markets. Their EM team places a great deal of emphasis on the qualitative evaluation of companies, aiming to identify stocks which are more profitable than the index but trading on reasonable valuations.
Fund summary
| Sector | Global Emerging Markets |
| Structure | OEIC |
| Launched | December, 2008 |
| Size | £2,964m |
| Yield | 0.50% |
| Charging basis | Income |
| Dividends paid | 30 Apr |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 1.00% |
| Ongoing charges figure | 1.18% |
Allocation
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Investment process
The management of this fund draws on JPM's large emerging markets team. Idea generation is driven by the sector specialist analysts and stock ideas can be held across a number of the group's funds. In emerging markets company research is more orientated towards qualitative judgement than it is in the developed markets. Research is focused on long term business prospects, where the team seek to invest in profitable companies and one of the considerations is the likely return on invested capital. Companies are ranked on a score of 1 to 5 where 1 is best although the portfolio manager has discretion over his holdings. Generally only high conviction stocks are held although the manager can hold stocks for relative risk management in order to manage the fund's tracking error. The manager can draw on an in house asset allocation model although in practice stock selection is a bigger driver of portfolio construction.
Manager research
Average monthly relative returns
- 16/17 0.04%
- 17/18 0.37%
- 18/19 -0.05%
- 19/20 1.03%
- 20/21 0.91%
Bestinvest MRI
- 3 years 0.63%
- 5 years 0.46%
- Career 0.13%
- 3 years 99.90%
- 5 years 100.00%
- Career 99.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Austin Forey
Forey was born in 1963 and has a BA & PhD in Modern Languages from Cambridge. He joined JPMorgan (then Flemings) in 1988 as a research analyst and in 1992 he became deputy of UK research. In 1994 he moved to the Emerging markets desk primarily with responsibility for asset allocation. Forey is based in London.
Track record
Austin Forey has 27.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.13%. During the worst period of relative performance (from July 1998 - November 2003) there was a decline of 17% relative to the index. The worst absolute loss has been 56%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
Periods of worst performance
| Absolute | -56.00% (January 1994 - August 1998) |
| Relative | -17.00% (July 1998 - November 2003) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 6.6% | Taiwan Semiconductor Co |
| 6.1% | Alibaba Group Hldg Ltd |
| 4.8% | Tencent Hldgs Limited |
| 3.8% | Samsung Electronics Co |
| 3.3% | Aia Group Ltd |
| 3% | Hdfc Bank Ltd |
| 2.7% | Sea Ltd |
| 2.7% | Housing Development Finance Corp |
| 2.6% | Mercadolibre Inc |
| 2.4% | Meituan Dianping |
| Source: Trustnet |
Sector breakdown
| Financials | 26.00% |
| Consumer Discretionary | 23.00% |
| Information Technology | 18.00% |
| Consumer Staples | 13.00% |
| Communications | 11.00% |
| Industrials | 3.00% |
| Health Care | 3.00% |
| Energy | 2.00% |
| Utilities | 1.00% |
| Materials | 1.00% |
Portfolio
Around 60-75 stocks are typically held. Commonality between the JPMorgan Emerging Markets IT and the open ended version of the fund is high.
Constraints
Active money is high over time and there are no formal constraints. New ideas typically 1% to 2% weights in the portfolio and active bets at stock level normally limited to +/- 5%.