Searching for tomorrow's market giants in the sphere of emerging countries' small-cap investments.
In the dynamic world of investment, the JPMorgan - Emerging Markets Small Cap Fund stands out as a beacon of growth and potential. This fund, managed by a team of 100 dedicated experts across eight locations, continues to offer investment opportunities to existing clients.
The team's extensive research is evident in their focus on companies that offer growth, profit opportunities, high market potential, and the ability to gain a substantial market share. Each year, they visit over 5,000 companies on-site to find potential investments, a strategy that has proven successful in uncovering undiscovered gems in the emerging markets.
The fund's long-term performance is impressive, averaging 14.24% annually over the past decade (as of 30.04.2019). In the shorter term, it achieved a three-year annual return of 10.38%. These strong returns are based on the fund's long-term capital market assumptions, which are grounded in the team's predictions and insights.
However, it's important to note that the broader small cap market, including emerging markets, has faced challenges recently. Small cap stocks have been affected by cyclical headwinds, with small cap indices underperforming large cap indices. As such, the JPMorgan - Emerging Markets Small Cap Fund, like other small cap funds, might have faced similar market pressures.
Despite these challenges, the fund's competence in management team selection and focus on companies with organic growth potential and good cash flow have helped it navigate these turbulent waters. To prevent the fund from becoming too large, a "soft closing" was implemented in 2017, ceasing active promotion.
The fund's success is not going unnoticed. It has received accolades such as the Euro-FondsNote 1 award from Börse online and a top rating of five stars from Morningstar analysts. These high ratings, coupled with its strong results, have grown the fund's assets under management to 1.44 billion USD.
Looking ahead, renowned investor Mehta predicts that investors with a long-term horizon and tolerance for volatility will likely see higher returns from emerging market stocks over the next few decades. He expects average annual returns for emerging market stocks to be nearly 8% over the next ten years, compared to just 5% for developed market stocks.
In conclusion, the JPMorgan - Emerging Markets Small Cap Fund offers a unique opportunity for investors seeking growth in the emerging markets. Despite the challenges faced by small cap funds in recent times, the fund's long-term performance, expert team, and focus on undiscovered gems make it a compelling choice for those with a long-term investment horizon. However, for precise performance trends and relative benchmark comparison, direct fund fact sheets or latest reports from JPMorgan Asset Management would be needed.
The JPMorgan - Emerging Markets Small Cap Fund stands out due to its focus on investing in companies that offer growth opportunities, high market potential, and the ability to gain a substantial market share, demonstrated through their on-site visits of over 5,000 companies each year. This fund's long-term success can be attributed to its competent management team and the implementation of a "soft closing" in 2017 to prevent the fund from becoming too large.
