Cash in on consumers in emerging markets

published 27 May 2019

A professional investor tells us where he'd put his money. This week: Austin Forey of the JPMorgan Emerging Markets Trust highlights three favourites

The JPMorgan Emerging Markets Investment Trust seeks out high-quality businesses that can grow their earnings sustainably over the long term. We have 40 analysts around the world seeking companies that create value for shareholders and where corporate governance will not undermine thatvalue creation.

We take a medium- to long-term perspective of approximately five years, which we believe is far longer than the average investor's; many of our picks have been part of the portfolio for over a decade. We have a bias towards companies with sustainable competitive advantages, consistent cash flow generation and strong management teams, and we want to buy them at sensible prices.

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The portfolio is positioned to benefit from the secular growth in emerging-market consumption, including growing penetration of financial products in underbanked markets. Our key themes include emerging-market e-commerce where the pace of adoption is faster than in developed markets innovative IT software and services, and private-sector banks in India, which offer ample scope for organic growth and significant market-share gains.