JPMORGAN EMERGING MARKETS IT

Investment Process

The management of these funds 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 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.