In this video, recorded by Portfolio Adviser Channel Islands, Salman Siddiqui (Investment Manager, Emerging Market Equities) describes the main factors which could support the asset class in 2023 and how investors can identify the best-in-class businesses within emerging markets.

Fund objective

Capital growth over the long term by investing in shares (i.e. equities) and similar investments of companies listed, traded or dealt in on a regulated market in emerging markets worldwide and companies that have a predominant proportion of their assets or business operations in these emerging market countries.

Additional fund specific risks

  • Investment risk – there is no guarantee that the Fund will achieve its objective. A capital loss of some or all of the amount invested may occur.
  • Company shares (i.e. equities) risk – the value of Company shares and similar investments may go down as well as up in response to the performance of individual companies and can be affected by daily stock market movements and general market conditions.
  • Stock Connect risk – Stock Connect is governed by regulations which are subject to change. Trading limitations and restrictions on foreign ownership may constrain the Fund’s ability to pursue its investment strategy.
  • Concentration risk (number of investments) – the Fund may at times hold a smaller number of investments, and therefore a fall in the value of a single investment may have a greater impact on the Fund’s value than if it held a larger number of investments.
  • Currency risk – the Fund is denominated in USD but holds assets denominated in other currencies. This share class is denominated in GBP. The value of your shares may rise and fall as a result of exchange rate movements.
  • Smaller companies risk – smaller companies are subject to greater risk and reward potential. Investments may be volatile or difficult to buy or sell.
  • Emerging markets risk – less developed countries may face more political, economic or structural challenges than developed countries.
  • Liquidity risk – some investments may become hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund’s ability to meet redemption requests upon demand.
  • Derivative risk – the Fund may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the Fund. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment. Derivatives also involve counterparty risk where the institutions acting as counterparty to derivatives may not meet their contractual obligations.
  • Capital erosion risk – the Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges.
  • Sustainability Article 8 – Investments are selected or excluded on both financial and non-financial criteria. The Fund’s performance may differ from the broader market or other Funds that do not utilize ESG criteria when selecting investments.

The value of active minds: independent thinking

A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals.

Important information