JPMorgan Emerging Markets beats benchmark amid robust emerging market

JPMorgan Emerging Markets Dividend Income PLC on Tuesday reported a higher net asset value total return than its benchmark for financial 2026, as demand for semiconductors boosted South Korea and Taiwan, while China and India struggled.

The New York-based investor in emerging market companies reported net asset value per ordinary share of 221.6 pence at July 31, up from 166.7 pence a year earlier.

NAV total return for the financial year ended July 31 was 38%, up from 14% a year earlier and ahead of the MSCI Emerging Markets index, which returned 34%.

The company said South Korea and Taiwan benefited from "unprecedented demand" for semiconductors as global investment in AI infrastructure soared. South Korea also benefited from demand for advanced memory chips.

China and India, two of the largest emerging markets, struggled. The company attributed China's performance to "sluggish consumption and ongoing property sector weakness", while investors "became increasingly wary of its premium valuations" in India.

The company noted that conflicts in Ukraine and the Middle East "compounded geopolitical tensions", driving up energy and commodity prices.

The company said it favoured financial stocks and commodities, with demand for AI infrastructure and the global shift to electrification supporting its more positive outlook for materials stocks. However, it reduced its technology weighting as valuations rose and dividend yields fell.

The company declared a total annual dividend of 6.0 pence per share, up 7.1% from 5.6 pence a year earlier. Looking ahead to financial 2027, it expects to maintain the first three quarterly dividend payments at 1.5 pence per share, with the fourth payment expected to be at least the same amount.

Chair Elisabeth Scott said: "My fellow directors and I remain firmly convinced of the investment case for Emerging Markets. Their long-term growth prospects, favourable demographics, generally improving fiscal positions and innovative, entrepreneurial corporate cultures remain compelling attributes. That conviction continues to be reinforced by the Investment Manager’s long-term track record, which has proved itself through the varied and often unusual challenges that investors have faced in recent years."

JPMorgan Emerging shares were up 1.0% to 198.50 pence per share on Tuesday afternoon in London.

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