Emerging markets are often thought to have better growth prospects than developed regions, which are dealing with ageing populations and economic slowdowns. In the past decade, these prospects haven’t amounted to much. But the dial is turning again and JPMorgan Emerging Markets Investment Trust (JMG) is a compelling way to gain exposure to the likes of India, Taiwan, China and Korea.
- High-conviction, low-turnover approach
- Excellent long-term track record
- Well positioned to profit from AI
- Discount to net asset value
- Recent underperformance
- Could struggle if tech stocks do poorly
Emerging markets have grossly underperformed developed markets over the past 10 years, and the gap widened dramatically after the Covid-19 pandemic. While US equities were propelled upwards in 2023 by enthusiasm for artificial intelligence (AI), emerging markets were left behind, partly due to the slowdown in China, where problems in the property sector are weighing on consumer sentiment.