J.P. Morgan Asset Management
Even with the risk that emerging markets had to digest in 2016, including concerns of a China slowdown, slumping oil prices and political instability, they still fared better than developed markets, outperforming them for the first time since 2012. Emerging market equities registered +11.2% in 2016 after three consecutive years of negative returns.
Buoyed by growth stability and the bottoming of commodity prices, emerging market equities climbed 12% in the first ten months before fears of a stronger dollar and policy implications of a Trump administration led to profit-taking near year’s end. Brazilian equities, for example, skyrocketed 80% from their January lows, riding the commodity rebound and hopes of reform from a new government.
Growth in emerging markets is expected to outpace developed economies, and as a rising rate era dawns in the US, improved macro fundamentals should help soft currencies weather FX risks. More bullish onlookers are calling for further expansion of price multiples.
Success in capturing long term returns from a broad and differentiated pool of high growth economies requires ‘on the ground’ expertise.
J.P. Morgan Asset Management’s reputation for investing in the asset class stems from its pedigree as a 45-year emerging market equity specialist, underpinned by a 100-strong team of dedicated portfolio managers and analysts managing global, regional and single country emerging market portfolios. The firm’s leading status is not based solely on its investment capabilities, however, but also its value-added services, including an industry-leading content platform, Markets Insights, which is designed to provided timely information to clients on the market and economy.
Gatekeepers have not let such strengths go unnoticed, selecting J.P. Morgan Asset Management as this year’s Best Fund Provider – Global Emerging Market Equity.