Jupiter Emerging & Frontier Income (JEFI) offers unique access to wellpositioned emerging and frontier market companies in many countries where economic activity has largely returned to normal. Perhaps for the first time, companies based in the likes of Taiwan, South Korea, and even Kenya can arguably have greater confidence in their ability to deliver dividend payments at pre-pandemic levels than those based in developed markets. Promising recent news on the vaccine front could see market sentiment improve in some of JEFI’s hardest-hit markets, like Brazil, India, and Mexico. JEFI provides less exposure to China than some of its peers, as its manager, Ross Teverson, felt that valuations were more attractive in the likes of Hong Kong, Taiwan, and Mexico. As we explain on page 16, this, and the withdrawal of funds from many emerging and frontier (EM and FM) markets, has held back returns in recent months and the discount to net asset value (NAV) has widened. Still, JEFI’s shares are currently yielding 5.4% and, with around a third of the portfolio sitting on net cash and debt levels typically lower than those of the developed world, equity income investors do still have good options in JEFI’s chosen markets.
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Underappreciated emerging and frontier income access
- Published:
19 Nov 2020 -
Author:
Ed Marten -
Pages:
26
Jupiter Emerging & Frontier Income (JEFI) offers unique access to wellpositioned emerging and frontier market companies in many countries where economic activity has largely returned to normal. Perhaps for the first time, companies based in the likes of Taiwan, South Korea, and even Kenya can arguably have greater confidence in their ability to deliver dividend payments at pre-pandemic levels than those based in developed markets. Promising recent news on the vaccine front could see market sentiment improve in some of JEFI’s hardest-hit markets, like Brazil, India, and Mexico. JEFI provides less exposure to China than some of its peers, as its manager, Ross Teverson, felt that valuations were more attractive in the likes of Hong Kong, Taiwan, and Mexico. As we explain on page 16, this, and the withdrawal of funds from many emerging and frontier (EM and FM) markets, has held back returns in recent months and the discount to net asset value (NAV) has widened. Still, JEFI’s shares are currently yielding 5.4% and, with around a third of the portfolio sitting on net cash and debt levels typically lower than those of the developed world, equity income investors do still have good options in JEFI’s chosen markets.