JP Morgan unveils income fund
EMERGING MARKETS FUND
JP MORGAN ASSET MANAGEMENT
Type: Income fund.
Description: JP Morgan Asset Management has launched an emerging markets income fund which aims to provide income and long-term capital growth from a diversified portfolio of high-yield emerging markets equities.
The fund is managed by Richard Titherington, chief investment officer for emerging market equities. JP Morgan said the fund provides investors with exposure to high dividend-paying emerging market companies and will target a yield of 4 per cent, offering “sustainable and growing” income. It will also have the ability to to invest up to 20 per cent of the portfolio in emerging market debt, allowing the fund manager to off-set some of the volatility in equity markets.
Conditions: The fund is benchmarked against the MSCI Emerging Markets Net Index. It has an initial charge of 4.25 per cent and an annual management charge and fixed expenses of 0.18 per cent. The minimum investment is £1000 in a lump-sum, or £100 monthly.
Verdict: Chris Daems, director of London-based Principal Financial Solutions, said: “While Mr Titherington has a relatively credible track record in the emerging markets sector, it’s tough to ascertain how the new fund will perform without more robust information relating to both the geographical and the asset mix of the new portfolio.
“Once more data is available there may be some value in reviewing the viability of the fund to use with our clients.”