Jupiter Asset Management is to target small-cap and frontier markets for their “compelling combination” of dividends and growth, the firm said as it launched an income investment trust today.
The Jupiter Emerging & Frontier Income Trust will aim to achieve income and capital growth from companies exposed directly or indirectly to emerging markets and frontier markets.
Ross Teverson, manager of the trust, said: This new [product] will enable us to take on greater exposure to small-cap and frontier companies, many of which we believe offer a compelling combination of significant dividends today, with what we believe to be substantial growth potential in the future.”
Teverson is currently lead manager on Jupiter’s global emerging markets and China portfolios. He will be assisted by Charles Sunnucks.
The trust has the same process as the wider global emerging markets strategies and will not be constrained by a benchmark. Small and mid-cap stocks make up a high proportion of the trust’s assets, though large-caps are also invested in.
A maximum of 25% of the trust’s total 40-45 stocks can be placed in frontier markets, which Jupiter said could offer further risk diversification and the potential for enhanced returns.
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