JPMorgan Russian Securities plc - Ordinary Shares - J.P. Morgan Asset Management
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JPMorgan Russian Securities plc
(GB0032164732)

JPMORGAN RUSSIAN SECURITIES PLC

Uncover the value in Russian equities

JPMorgan Russian Securities plc is the only investment trust providing pure exposure to the ongoing transformation of the Russian economy*. The trust is managed by a dedicated team with first-hand knowledge of this complex, under researched market

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Latest announcement on the impact of recent economic sanctions against Russia   Monthly Factsheet   Other trust documents   How to buy this trust  

Why invest in Emerging Markets?

Emily Whiting, Client Portfolio Manager, discusses the opportunities and challenges of investing in Emerging Markets.

Some of the themes discussed include:

  • How the rise of technology, frontier markets and consumerism is changing the emerging markets
  • Finding the right emerging market opportunities
  • What happens when an emerging market emerges
Monthly Factsheet   Annual Report    Learn more about investing in Emerging Markets   

About this trust

Risks

Performance

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Portfolio

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Manager Commentary

Fund Managers

Month in review

  • The trust underperformed the benchmark during September.
  • The portfolio’s off-benchmark exposure to the real estate sector proved to be a drag on relative returns, most notably led by LSR Group, one of the country’s leading real estate development and building materials companies. The stock failed to keep pace with the broader market as worse-than-expected first-half 2018 results continued to weigh on performance.
  • Additionally, the portfolio’s off-benchmark exposure to MD Medical Group, a leading private healthcare provider for women and children, continued to weigh on relative returns. During the period, the company reported weaker-than-expected first-half results, which was mainly driven by rising accessibility to IVF and increased competition in the industry. Last month, we met with the Chairman and CFO of the company, which strengthened our conviction in this name. We will continue to maintain our exposure through this current volatility.
  • Stock selection in the consumer staples sector boosted relative returns, specifically led by the portfolio’s lack of exposure to Magnit and X5, two of the largest retail franchises in Russia. Both companies have been negatively impacted by increased competitive pressures and sluggish consumer demand.
  • Stock selection in the energy sector also boosted relative returns. Exposure to Lukoil and Rosneft added to returns, as both companies have benefited from rising oil prices.
  • Looking ahead

  • We believe the dollar’s bounce is unlikely to last, as it is currently overvalued in real terms, and US growth is expected to return to more sustainable levels next year.
  • Given our positive view on local earnings in emerging markets (EM), we could see a strong bounce in EM earnings next year in dollar terms.
  • Current EM valuations represent a discount to the historical average, and we believe this may prove to be a good entry point for long-term investors, should our expectation of a quieter dollar and a bounce in EM earnings prove correct.
  • In Europe, the Middle East and Africa (EMEA), strength in commodity prices should continue to support the region, particularly Russia, where valuations compare quite favourably.
  • Documents

    Research

    This Investment Trust has been reviewed by a third party agency. Contents of the external links have been prepared by third parties and do not necessarily represent the views of J.P. Morgan Asset Management. These third parties may receive a fee by the Board of Directors of this Investment Trust. J.P. Morgan Asset Management does not endorse or attest to completeness and accuracy of these contents. Reliance upon these contents is at the sole discretion of the reader.

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    Important information

    This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.

    Investment is subject to documentation. The Investor Disclosure Document, and Key Features / Terms & Conditions can be obtained free of charge from JPMorgan Asset Management (UK) Limited, and the Key Information Document can be obtained from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

    *FE Crown Rating as at 01 October 2018.

    Moneyfacts award as at: 17 November 2017. ©2017 Moneyfacts Group plc. All Rights Reserved.

    Moneywise Investment Trust awards as at: 28 March 2018. Moneywise Publishing Ltd ©2018. All Rights Reserved.

    *Source: Association of Investment Companies, April 2018

    Past performance is not a reliable indicator of current and future results.