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Emerging markets have been difficult for at least three years but the tide appears to have turned in 2016. Omar Negyal, manager of JP Morgan Global Emerging Markets Income Trust (JEMI), whose shares have surged 43% this year, tells Citywire's Sean Butters that the recovery is in its early stage but needs proper growth in corporate profits to continue.
Nevertheless, the manager is confident about prospects for his portfolio of income-generating consumer, telecom and utility stocks, saying emerging markets still look cheap compared to historical valuations.
While Negyal has been pleased to see an improvement in China's economy, he finds better income investing opportunities elsewhere, for example Taiwan, which he says has a 'serious dividend culture'. Companies from the country represent 20% of the portfolio.