JPMorgan Emerging Markets Dividend Income
Why is this fund on our radar?
JPMorgan Emerging Markets Dividend Income (Ticker: JEMI) aims to grow your money over time while also paying you a regular income. For that purpose, it invests in some of the world's fastest-growing economies, in regions such as Asia, Latin America, Africa and the Middle East. Many countries in these parts of the world are home to young, expanding populations and businesses that are still in their early stages of growth, which can make them exciting places to invest.
The trust is managed by Omar Neygal, who looks for well-run, profitable companies that he believes the market has undervalued, in other words, hidden gems that haven't yet been fully recognised. Typically, every company in the portfolio contributes to the income stream by paying a dividend. In addition, Omar benefits from the support of extensive resources at JPMorgan Asset Management, including nearly 100 portfolio managers and analysts across nine locations around the world. We view these resources as one of JEMI’s core strengths, allowing for richer engagement with companies, deeper local insight, and a longer-term investment perspective.
What really caught our attention is JEMI's track record. Since Omar took charge in 2012, the trust has consistently delivered stronger returns than the wider emerging market index it measures itself against. It has also tended to hold up better than the broader market during rocky periods. Alongside that, JEMI pays a comparatively high and growing income, no small thing in a region not traditionally associated with dividends, but one where that is quietly changing. For investors looking for capital growth, resilience in tougher periods and a growing income from an often-overlooked part of the world, we think JEMI could be a strong option.
Skip to Our VerdictPerformance
Since Omar took over the management of the trust in November 2012, JEMI has delivered stronger returns than passively managed funds focussing on emerging markets, while also falling less in value during challenging periods in the market. We believe this record reflects Omar’s investment approach, focussing on dividend-paying companies with strong ability to generate profits consistently over time. He also looks to invest in companies that offer attractive valuations, or those that appear cheap relative to what the team believes they can be worth over time. Not overpaying for a stock can provide a cushion if markets turn negative.
As a result, we expect JEMI to might be able to offer some resilience in rocky market conditions. This was notably the case in 2018 when emerging markets faced several challenges, including escalating tensions between the US and China, rising interest rates in the US, and concerns about the health of the global economy.
Conversely, JEMI may struggle when investors focus on high-growth companies, such as technology firms, that prioritise reinvesting in the future growth of the company over paying dividends, making it harder to include them in JEMI’s portfolio. This happened, for instance, in 2020 during the COVID lockdowns period when investors favoured these types of companies, particularly those linked to the digital economy and home entertainment. That said, high-growth companies can also be the hardest hit when market conditions turn, often because expectations for their future growth are sky high, leaving little room for disappointment.
It is also worth noting that some emerging market countries are better suited to investment strategies focussed on dividends than others. For example, companies in Brazil are required by law to pay dividends, whereas many companies in India tend to pay lower dividends or none at all, focussing more on growing their share price. Because of these differences in dividend culture, JEMI is likely to perform better when higher-yielding markets such as Brazil or Mexico are leading returns, but may struggle when markets like India or Taiwan, where dividend yields are typically low, dominate.
CALENDAR-YEAR PERFORMANCE
Past performance is not a reliable indicator of future results
Portfolio
Omar invests in high-quality companies that he believes are undervalued by the market. Reflecting JEMI’s income objective, every company in the portfolio typically pays a dividend. That said, the portfolio includes a broad range of dividend-paying companies, including low-yielding businesses offering strong potential for long-term growth.
While Omar selects companies based on their individual merits, regardless of the country or sector they belong to, the trust’s focus on dividend-paying stocks naturally steers it towards certain sectors, particularly financials and, notably, banks, that tend to be more generous with what they return to shareholders. In addition to paying dividends, banks in emerging markets can benefit from the long-term economic growth of these regions, especially as access to financial services continues to expand. Omar also tends to find opportunities in consumer-facing companies such as e-commerce platforms, insurance, or domestic premium brands, which can provide exposure to rising incomes and increasing consumer spending across emerging markets.
Typically, JEMI also has meaningful exposure to the information technology sector, as many emerging market countries are home to leading companies embedded in global supply chains. However, tech businesses often pay lower dividends because they reinvest more of their profits to support future growth. As such, JEMI offers a way for income investors to invest more in technology than they would in a typical UK income fund.
Sector allocation
Source: JPMorgan, as at 31/03/2026
Our Verdict
In our view, JEMI’s track record under Omar’s management has been impressive, with the trust having outperformed the emerging markets index and passively managed funds over both the long and short term. What makes that outperformance particularly noteworthy is that it wasn’t just built on strong runs in good times, but also from holding up better when markets have fallen. We believe this reflects Omar’s consistent focus on undervalued, dividend-paying, quality companies. As such, we think JEMI could offer a compelling route for income-focussed investors looking to fish beyond the usual UK and European income hunting grounds, broadening their sources of income while gaining exposure to a part of the world with a very different and exciting growth story to tell.
Emerging markets also bring something else to the table: diversification. Because these economies often move to their own rhythm, they can behave quite differently from the UK or US markets most investors are familiar with, which can help smooth out a broader portfolio. They also offer access to potentially powerful long-term growth stories, many of which can be accessed through JEMI. That includes, for example, rising consumer spending, more people gaining access to financial services for the first time, and economies catching up technologically.
In addition, we note that the dividend picture is improving across emerging markets, as more and more companies across these regions are embracing the idea of rewarding their shareholders. We view it as a sign of maturing markets and a shift in culture that plays nicely into JEMI's hands.
Key Risks
- Emerging markets equities tend to be more sensitive to geopolitical shocks
- Dividend payment requirements may result in missing out on certain growth themes
- As an investment trust, JEMI can use gearing, or debt, to invest which can amplify both returns and losses
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