JP Morgan Asset Management is planning to launch the Global Convertibles Income trust, which will allow investors to access convertible securities globally.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The company will initially target a 4.5% annual dividend and will be managed by the JP Morgan convertible bond team, which will be headed by Antony Vallee.
The investment firm says convertibles offer investors bond-like characteristics in falling equity markets with the potential to participate in rising markets.
The investment company structure allows greater freedom to invest in new issues, and small and mid-cap issues where liquidity constraints restrict the ability of rival open-ended funds to invest. In addition, a closed-ended fund offers investors the potential for predictable, steady income in a low-cost structure.
Vallee said: "This, coupled with the rising trend of established companies around the world turning to convertible bonds as a way of raising cash, means that we believe the time is right for this investment company. This is global equity income for the cautiously optimistic."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
