TRUST WATCH: Jupiter Emerging and Frontier Income

JUPITER EMERGING AND FRONTIER INCOME: Investing in firms exposed to emerging markets and even smaller frontier markets

What is it?

This trust from Jupiter aims to provide investors with an income, by investing in companies exposed to emerging markets and the even smaller frontier markets. 

It has an ongoing charge of 1.35 per cent and is run by two managers, Charles Sunnucks and Ross Teverson.

What does it invest in?

The trust picks out a list of companies, ranging in size. Its biggest exposure is currently to Taiwan, followed by China and Mexico. 

Its largest holdings include Mexican property company Corp Inmobiliaria Vesta, South Korea’s Samsung and Brazilian shipping company Wilson Sons.

What do the experts like?

Anthony Leatham, of Peel Hunt, notes the portfolio’s yield – or how much it returns in dividends compared to its underlying value – is 4.5 per cent.

Any downsides?

Around 48 per cent of investors’ money is ploughed into smaller companies. 

This, and the fact that the trust takes on debt which accentuates either positive or negative performance, increases the riskiness, Leatham says.


Source link