JPM Gem Income trust to issue new shares

The shareholders of the £181m JPMorgan Global Emerging Markets Income trust have given their approval to issue new shares over the coming year.

The shares will be issued at a premium to net asset value.

Since launch in June 2010, demand for the shares has been high, with new shares issued at a premium to meet investor demand on more than 90 separate occasions. However, should sentiment reverse, the trust also has a discount control mechanism in place to protect shareholders’ interests.

Managed by Richard Titherington, the investment trust aims to deliver a combination of capital growth and a diversified source of income by investing principally in shares of companies operating in emerging markets throughout the world.

David Barron, head of investment trusts at JPMorgan Asset Management, said: “The strength of demand for the JPMorgan Global Emerging Markets Income trust has underlined the investor appetite for diversified sources of income in an environment where returns on cash and bonds continue to disappoint.

“By securing this authority to issue new shares according to demand, the trust can serve the needs of both new and existing investors who wish to tap in to the greater growth potential, and increasingly the attractive dividend stream, available from emerging market companies.”

The trust is currently trading on a 3.2 per cent premium to net asset value.