Jupiter Emerging & Frontier Income – Unjustified discount?

In recent months, Jupiter Emerging and Frontier Income (JEFI)’s discount has widened. This seems somewhat at odds with JEFI’s good relative performance over this period and since launch (a 14.7% return on NAV for the period to 19 September 2019 versus 11.4% for the MSCI Emerging Markets Index, 10.4% for the MSCI Frontier Markets Index and 8.2% for the average of JEFI’s peer group – see page 9). It also seems strange given JEFI’s sector-leading dividend yield…. Read more

The world is an uncertain place at present, but emerging markets, which have been battling a headwind provided by a strong US dollar, now see a period where the US President is determined to weaken the currency and US interest rates are falling. JEFI’s managers have confidence in their portfolio and the long-term structural trends that underpin growth in their markets. They say that the portfolio has very limited direct exposure that is sensitive to trade tensions, however trade concerns are a significant source of broader investor anxiety.

The managers would like to see the discount eliminated and the trust expanding. This should benefit all shareholders, as the shares should become more liquid and the ongoing charges ratio should fall, as fixed costs are spread over a wider base.

Long-term capital and income growth

JEFI aims to generate capital growth and income over the long term, through investment predominantly in companies exposed directly or indirectly to emerging markets and frontier markets worldwide.

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