Fund Rationale: JP Morgan Emerging Markets Dividend Fund

JP Morgan Emerging Markets Dividend Fund (the “Fund”)
SGD Class A Monthly Distribution Shares (ISIN: LU0862451753)
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Endowus has selected the Fund as it:

  • Adheres closely to its income objective and has demonstrated low volatility (vs peers and benchmark);
  • Provides a consistent stream of underlying dividends with capital gain potential owing to an investment process that is disciplined and diversified across not just high-dividend  stocks, but stocks with strong fundamentals; and
  • Has a retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.

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Key Information

Fund Objective: The Fund aims to provide income by investing primarily in dividend-yielding equity securities of emerging market companies, whilst participating in long-term capital growth.

Suitability: Investors who seek a combination of income and long-term capital growth through exposure to emerging markets, understand the risk associated with emerging markets equities, are willing to accept those risks in search of potential higher returns, and are looking to use it as part of an investment portfolio and not as a complete investment plan.

Cost:
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  1. Total Fund-level Fees include fund management fee of 1.50%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 11 December 2012
Share Class Inception: 11 March 2013
Benchmark: MSCI Emerging Markets 

Fund AUM: SGD 741m
Source: MorningStar as of  24 June 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

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Sector Allocation:

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Source: MorningStar as of 31 May 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown. 

Selection Criteria

Endowus has selected the JP Morgan Emerging Market Dividend Fund for its exposure to income-generating companies in the EM driven by strong fundamentals, targeting to achieve a strong total return with low volatility.

The Strategy, despite having its focus on income generation, puts forward a disciplined investment mandate of balancing income and growth, and considers a spectrum of companies not just generating strong yield but also are supported with strong fundamentals. The resulting portfolio is a conviction-driven basket of 50 to 80 yield-generating stocks with a tilt towards quality and value, with stable underlying dividends and the opportunity to gain additional upside from gains in valuation. The integration of ESG research in the investment process is an added bonus -- analysts use a proprietary risk-based checklist to gauge factors such as sustainability of a business and quality of management, and the Fund is labelled as SFDR Article 8.

The Fund is managed by a team of three Portfolio Managers: Omar Negyal, Jeffrey Roskell, and Isaac Thong, with an average investment experience between 12 to 30 years, each with a strong background in the EMAP (Emerging Markets/Asia Pacific) Equities space. The PM team benefits from the top-down macro insights and bottom-up security ideas generated by a team of Investment Specialists with an average experience of 13 years, as well as JP Morgan’s platform of more than 140 research analysts based globally and producing outputs on the companies, sectors and markets in their respective areas. 

The Fund, in line with its investment objective, has a good track record of delivering robust returns with lower risk versus its EM peers and the benchmark. Additionally, the Strategy has a history of paying out strong dividends, generated by a combination of consistent underlying distributions , as well as strong capital appreciation of the  companies, especially in market cycles where quality and value prevail. 

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Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.