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JP Morgan's newest trust nets £136m

by Sarah Miloudi on Jun 11, 2013 at 11:31

JP Morgan's newest trust nets £136m

JP Morgan Asset Management has raised £136 million for its newest investment trust.

Through a placing and offer for subscription, the JP Morgan Global Convertibles Income fund attracted a sum well in excess of its £100 million target.

'The launch has been very well supported, particularly by the wealth management and adviser communities,' said Simon Miller, chair of the trust.

'It is clear from the successful launch that a wide range of investors is still looking for alternative sources of income in a world of low interest rates, and can see the benefits of obtaining this through a closed-ended company focused on convertibles, an asset class that we believe is under-represented in investors’ portfolios.'

Antony Vallee, head of convertibles at J.P. Morgan Asset Management and manager of the new vehicle, echoed these views and said demand to take advantage of the growing convertibles new issuance market has been high.

'Convertibles provide investors with the potential to enjoy the best of both worlds – bond-like downside protection in falling markets plus capital participation in rising equity markets, translating into superior risk-adjusted total returns,' Vallee explained.

'We are, therefore, delighted by the level of interest we have seen in the company,' he added.

As well as targeting an initial gross dividend yield of 4.5%, Vallee and his team will build a portfolio that also has potential for capital growth.

Winterflood Investment Trusts, which acted as the placing agent and sponsor to the launch, said a large proportion of the funds came from discretionary private client brokers, demonstrating their continued appetite for income and support for the closed-ended sector.

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