JPMorgan Emerging Markets Equity has a highly experienced management team, extensive resources, and a notable investment process in its favor. The U.S. mutual fund earns a Morningstar Analyst Rating of Silver across all share classes; its overseas-domiciled counterparts earn ratings of Gold, Silver, or Bronze depending on share class fees.
Leon Eidelman joined the U.S. mutual fund as a comanager in 2013, became the strategy’s primary decision-maker in early 2015, and was formally recognized as the lead manager in July 2016. Former lead manager Austin Forey remains on board as a comanager as well as the firm's head of the fundamental GEM team, while Amith Mehta joined the U.S. mutual fund as a comanager in 2013.
The managers are well supported by the firm's 92-member emerging-markets and Asia-Pacific equities team. That team’s research analysts provide ample research support based on a well-structured and repeatable framework, ensuring the breadth and quality of coverage.
The managers employ the same quality/growth process as other strategies managed by the EMAP team. They normally invest the vast majority of assets in premium and quality names, which operate in attractive industries with limited external risks and possess strong balance sheets and solid cash flow generation.
Given the focus on quality growth, the strategy should perform well in markets driven by earnings growth and other fundamentals such as occurred in 2020. On the flip side, the strategy is likely to struggle in value-oriented markets such as the past 12 months, when growth stocks struggled in general and a number of internet-related holdings sold off sharply following strong performance in previous years while commodity-related and many other value stocks outperformed.
Finally, the strategy’s total assets under management as of March 2022 was around $40 billion, a decline from $53.8 billion a year prior. The U.S. mutual fund and Luxembourg-domiciled vehicle remain soft-closed, while the U.K. offering remains open given regulatory restrictions, although it is not marketed to new clients.