JPMAM launches income fund for EM CIO
JPMorgan Asset Management is to launch an Emerging Markets Income fund for Richard Titherington.
Mr Titherington, the group’s chief investment officer for emerging market equities, will target a yield of 4 per cent on the fund.
He will be supported by the emerging markets equity team but the fund will be able to invest up to 20 per cent in fixed income securities so he will also get support from JPMAM’s emerging market debt team, led by Pierre Yves Bareau.
Mike Parsons, head of UK fund sales at JPMAM, said the house has a “long established and proven track record” in emerging market investing and would help investors diversify away from the UK.
“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,” Mr Parsons said.
“Dividend income from UK equities is currently very concentrated. In the first quarter of 2012, 87 per cent of dividends came from just 15 companies, and 58 per cent 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.”