JP Morgan Asset Management plans to list an investment company investing in a portfolio of global convertible.
The JPMorgan Global Convertibles Income Fund will be able to invest in new issues as well as small and mid-cap issues, where open-ended funds may face liquidity constraints.
Convertibles, which can be converted from bonds to shares, offer investors bond-like characteristics in falling equity markets. In addition, there is the potential to participate in rising markets.
Antony Vallee, head of convertibles, says investors searching for yield have increasingly turned to convertible bonds.
Vallee adds that more companies around the world are now issuing convertible bonds as a way of raising cash, effectively broadening his investment universe.
“This is global equity income for the cautiously optimistic,” he adds.
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