JPMorgan Asset Management is set to roll out a new closed-ended fund in London that will be mainly investing in US senior secured loans.
The fund will be second closed-ended fund to be launched in 2013 by JPMorgan after the successful JPMorgan Global Convertibles Income Fund, which raised £136 million in June 2013.
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The new senior loans fund, which is expected to generate around £100 million, will target an initial dividend yield of 5% on the issue price of £1.00 per share. It will be mainly focused towards US assets, and will be designed to suit the needs of UK-based investors.
The placing and offer period for the new fund is expected to open in November 2013 and the shares are expected to start trading from early December 2013.
JPMorgan Asset Management managing director and portfolio manager, James Shanahan, said investors have been actively seeking investments that offer the combination of reasonable yield and little interest rate duration.
"Globally we are seeing increased demand for this type of asset, which is difficult for UK investors to access other than in a listed vehicle," Shanahan added.
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By GlobalData"Loans offer appealing yield alternatives relative to traditional fixed income instruments, including treasuries and investment grade corporate bonds.
"Senior loans are a mature and diverse asset class, often issued by below investment grade companies in all kinds of industries, including technology, casinos, restaurants, autos, health, retail, paper, utilities, mining and steel."
