JP Morgan Asset Management has launched a new Luxembourg-domiciled emerging markets fund that combines investments in debt and equity with JPMorgan Funds.
The new fund, known as Total Emerging Markets Income Fund, will be co-managed by Richard Titherington, chief investment officer of emerging market equities, and Pierre-Yves Bareau, chief investment officer of emerging markets debt.
Both Titherington and Bareau will be supported by more than 75 investment professionals from eight worldwide offices.
The new fund will target a 6% gross yield and top-down as well as bottom-up insights will inform security selection.
Commenting on the launch, Titherington said: "Broadening the emerging markets opportunity set to incorporate both equity and debt has the potential to provide strong risk-adjusted returns and a stable source of income.
"Investors are increasingly realizing emerging markets can be a source of growth as well as yield, but are mindful of managing volatility. Combining debt and equity exposure can offer diversification," Titherington added.