JPMorgan Global Emerging Markets Income (JEMI) aims to offer investors an income from a portfolio of emerging market equities. The managers also aim to generate capital growth and are aided in this dual mandate by the sectoral make-up of their market, their disciplined stock selection process which prizes quality growth characteristics, and their use of modest structural gearing. Technology makes up a large part of the emerging market index and the trust’s portfolio. JEMI owns some hardware companies which offer very high yields from their cash-generative businesses, as well as owning lower-yielding companies as part of the managers’ barbell approach (as discussed under Portfolio). However, one of the trust’s largest sector exposures is to financials, a typical value sector, while JEMI has minimal exposure to e-commerce. These positions mean its recent performance has been correlated to value, and the trust has correspondingly done very well this year. As we discuss under Performance, the trust has now outperformed over the past five years, despite some headwinds. JEMI’s discount is 7.9%, with the share price not keeping up with the rising NAV in a recent rally. JEMI is managed by Omar Negyal, Jeffrey Roskell and Isaac Thong of the JPMorgan Emerging Markets and Asia Pacific Equities team. They draw on the stock analysis of a team of around 50 professionals, who seek to identify the highest-quality companies in their sectors or countries. The managers then aim to maximise the quality growth characteristics of the portfolio, while meeting their internal income hurdle of 130% of the yield of the index. Despite a fall in portfolio income last year, JEMI’s board held the dividend, using revenue reserves to do so. The historical yield is 3.2%, although this is reduced by strong performance since last year’s final dividend.