JP Morgan Asset Management is planning to launch a new London-listed investment company, Global Convertibles Income investment trust, to offer investors with the potential for capital growth from a portfolio of global convertible securities.
Slated for launch in June this year, the trust will be managed by Antony Vallee, head of JPMorgan convertible bond team.
JP Morgan Asset Management convertibles head Antony Vallee said, "By employing J.P. Morgan’s well-developed convertible bond investment process, we aim to provide investors with exposure to a breadth of strategies and to the full range of the global convertible bond universe, including the important new issue market."
Having access of global convertible securities, which delivers investors bond-like characteristics in falling equity markets, it will initially target a 4.5% dividend yield annually.
Convertibles are issued as bonds, but have the flexibility to be converted into shares after some time, which allows investors to have a fixed income security even if a company’s share price rallies.
The new investment company will invest in various securities, new issues as well as small and mid-cap issues, where open-ended funds cannot invest due to liquidity constraints.