JP Morgan fund added to Hargreaves Lansdown Wealth 150
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Hargreaves Lansdown has added the JP Morgan Emerging Markets fund to its Wealth 150 buy-list.
Meera Patel, senior analyst at Hargreaves Lansdown, says the fund is a “core emerging markets fund with a bias towards larger companies”.
She says: “This means it might not be a top performer during periods when the market rises strongly, but its focus on high quality companies means it has the potential to be more resilient during downturns.
“The manager’s aim is to invest in robust companies and hold them for the long term; indeed, some stocks in the portfolio have been held for over 10 years.
“Such a strategy requires patience, but it has proved rewarding over the long term. However, like all investments, they can go down in value as well as up so you could get back less than you invested.”
Patel says the high conviction approach can lead to increased risk, while its emerging markets focus could make it volatile and should be considered by “adventurous investors with a long time horizon.
Patel adds: “Emerging markets are playing an increasingly important role in the global economy. Drivers of growth are likely to stem from the rise of the consumer across the emerging world as the middle class expands, aided by rising incomes and favourable demographics.
“A boom in infrastructure is also underway with investment in power, water, rail and other infrastructure projects expected to exceed $20 trillion [£12.6 trillion] over the next decade.”
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