Cash in on consumers in emerging markets

Austin Forey of the JPMorgan Emerging Markets Trust picks three stocks that should benefit from growth in emerging-market consumption.

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.

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.

A top-notch private bank

HDFC Bank

(NYSE: HDB)

Burgeoning e-commerce in Latin America

Mercadolibre (NASDAQ: MELI)

A dominant player in IT services

Globant (NYSE: GLOB)

Recommended

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
Seize these investment trust bargains in 2022
Investment trusts

Seize these investment trust bargains in 2022

Attractive investment trusts are trading at a discount, and those waiting for the perfect time to buy will miss out. Max King picks a selection of the…
17 Jan 2022
Energy prices will keep rising – here’s how to invest
Energy

Energy prices will keep rising – here’s how to invest

Energy prices will keep rising for the foreseeable future – it is a simple matter of supply and demand. Merryn Somerset Webb explains how you should i…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022

Most Popular

Five unexpected events that could shock the markets in 2022
Stockmarkets

Five unexpected events that could shock the markets in 2022

Forget Covid-19 – it’s the unexpected twists that will rattle markets in 2022, says Matthew Lynn. Here are five possibilities
31 Dec 2021
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022
Tech stocks teeter as US Treasury bond yields rise
Tech stocks

Tech stocks teeter as US Treasury bond yields rise

The realisation that central banks are about to tighten their monetary policies caused a sell-off in the tech-heavy Nasdaq stock index and the biggest…
14 Jan 2022