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JP Morgan AM unveils global convertibles trust plan
by Sarah Miloudi on Apr 05, 2013 at 10:46
JP Morgan Asset Management is to launch a global convertibles income investment company.
The new vehicle will be listed in London and if its floatation is successful it will offer investors high income with the potential for capital growth from a portfolio of global convertible securities.
It follows the appointment of a new investment trust boss at the asset manager - Simon Crinage, who replaced David Barron.
JP Morgan said the new investment company would be called JP Morgan Global Convertibles Income fund and initially target an annual dividend of 4.5%.
It will be managed by its convertible bonds team, which is headed up by Antony Vallee.
Vallee said he had noted increased demand for convertible bonds as investors hunted 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 we believe the time is right for this investment company,' the manager added.
Crinage, who on Thursday was appointed managing director of investment trusts at JP Morgan Asset Management, said convertibles had performed well throughout 2012 and the strong run looks set to continue.
He continued: 'The company will focus on quality bonds that ensure investors get the benefits of stock market upturns but with the protection of bonds: superior risk-adjusted total returns and reduced volatility.
'Our dedicated convertibles team has managed convertibles since 1995 and, with nearly $5bn under management, we are one of the world’s largest convertible bond investors.'
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