LONDON: J.P. Morgan Asset Management to launch Emerging Markets Income Fund
Jul 09, 2012
- Aims to provide income and long-term capital growth from diversified portfolio of high yield emerging markets equities
- Managed by Richard Titherington, chief investment officer for emerging market equities
London, 9 July 2012: J.P. Morgan Asset Management today announces the launch of the JPM Emerging Markets Income Fund, drawing on its longstanding track record of successful emerging markets investment processes and the vast experience of its investment team.
The fund aims to provide investors with exposure to high dividend-paying emerging market companies, helping to form part of a diversified income portfolio. It will be managed by Richard Titherington, Chief Investment Officer for emerging market equities at J.P. Morgan Asset Management and will target a yield of 4%. Richard will be drawing on the expert insight of the company's Emerging Markets Equity team and the Emerging Market Debt team, led by Pierre Yves Bareau, given its ability to have exposure to emerging market debt of up to a maximum of 20%.
The key benefits of the fund include:
- Diversification for income portfolios: it will look beyond the concentrated UK equity income market to allow investors access to high yielding stocks across a wide range of emerging market companies, markets and sectors.
- Access to a powerful combination of income and growth: emerging market stocks offer sustainable and growing income, with the potential for long-term capital growth.
- Access to J.P. Morgan Asset Management's 35 years of experience in emerging market investing: the J.P. Morgan Asset Management fundamental emerging market investment process has focussed on understanding the dividend component of equities since its inception.
Mike Parsons, Head of UK Fund Sales at J.P. Morgan Asset Management commented: "As an investment house, we have a long established and proven track record in emerging market investment processes, having been the first to pioneer emerging market income investing in the UK with the launch of the Global Emerging Markets Income Trust. Our new JPM Emerging Markets Income Fund will offer investors who are looking to diversify their portfolios and seeking an additional source of income, an attractive option. We believe this is a truly exciting fund, particularly with its ability to invest up to 20% of the portfolio in emerging market debt. This will allow the fund manager the flexibility to off-set some of the volatility in equity markets and offer the opportunity to deliver superior risk-adjusted returns."
Parsons continued: "I have said for a long time that UK investors have too much reliance on UK-centric funds for their income needs and are missing out on more compelling returns from overseas companies. Dividend income from UK equities is currently very concentrated. In the first quarter of 2012, 87% of dividends came from just 15 companies, and 58% came from just five companies. As UK interest rates remain at record lows, it is time for investors to start diversifying their income portfolios with exposure to a wider universe of higher yielding stocks that overseas markets can offer."
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Notes to Editors
Fund Benchmark: MSCI Emerging Markets Net Index (Total Return) in GBP
Fund Fees: 4.25% Initial charge, 1.5% annual management charge and fixed expenses of 0.18%
Minimum Investments: Lump sum, £1,000, Monthly, £100
Target yield: 4%
Estimated yields are not fixed, will fluctuate and are not a reliable indicator of future performance. Estimated annual yield net of basic rate tax and fees, based upon expected dividend payments over the preceding 12 months of companies in which the Fund will invest. The estimated yield is not part of the investment objective of the fund.
For further information please contact:
Media relations: Ben Larter
Telephone: +44 (0)20 7742 2112
About J.P. Morgan Asset Management
J.P. Morgan Asset Management is part of JPMorgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With $1.4 trillion in assets under management (the Asset Management client funds of JPMorgan Chase & Co. as at March 31st, 2012) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
J.P. Morgan Asset Management is a trading name of J.P. Morgan Asset Management Marketing Limited, which has issued this material in the United Kingdom and which is authorised and regulated by the Financial Services Authority. Registered in England No. 288553. Registered office: 125 London Wall, London EC2Y 5AJ.
Any past performance referred to in this material is not a guide to future performance and the value of investments, and any income from them, can fall as well as rise. Any tax concessions referred to are not guaranteed and their value will depend on the individual circumstances of investors. Stock market linked investments carry a number of inherent risks. These risks will increase where fluctuations in exchange rates impact on the value of any underlying investments or where the investment is exposed to smaller companies or emerging markets. Investments in fixed income securities that are not rated as investment grade represent a greater risk to an investor's capital.