JP Morgan AM to launch a London-listed investment company

JP Morgan Asset Management is to launch a London-listed investment company, JPMorgan Global Convertibles Income Fund, to offer investors high income with the potential for capital growth from a portfolio of global convertible securities.

The new investment company will access convertible securities from around the world.  Convertibles offer investors bond-like characteristics in falling equity markets with the potential to participate in rising markets.  The company will initially target a 4.5% annual dividend and will be managed by the convertible bond team, headed by Antony Vallee.

The investment company structure allows greater freedom to invest in new issues, and small and mid-cap issues where liquidity constraints restrict the ability of rival open-ended funds to invest. In addition, a closed-ended fund offers investors the potential for predictable, steady income in a low-cost structure.

Vallee said: “There has been a growing interest in convertible bonds as investors search for yield.  This, coupled with the rising trend of established companies around the world turning to convertible bonds as a way of raising cash, means that we believe the time is right for this investment company. This is global equity income for the cautiously optimistic.

 

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