JP Morgan Asset Management is launching a global convertibles investment company on the London Stock Exchange. It will provide investors with access to its global multi-asset group. It aims to meet demand for exposure to convertible securities, an asset class which JPMAM says has historically offered superior risk-adjusted returns compared to both debt and equity securities. The strategy is to invest in a globally diversified portfolio of convertible securities, which it believes will produce attractive long-term returns. It will principally invest in securities which provide attractive risk return profiles through the equity market cycle, with capital growth potential and debt-like downside protection. The closed-ended structure allows the investment team to utilise best ideas and opportunities rather than focusing on issues such as liquidity. It also allows participation in attractive less liquid issues, without the forced turnover of an open-ended fund. As a closed-ended company, there is also the ability to use derivatives to hedge credit, interest rates and other risks faced by investors. David Barron, head of investment trusts at JPMAM, said: “For wealth managers looking to de-risk portfolios in current market conditions, while still seeking equity-like returns, the company could be a natural satellite holding.” The objective is to invest the majority of its assets in convertible securities. In addition, up to 40 per cent of total assets may be invested in fixed and floating rate debt securities, equity securities, credit, fixed income, interest rate and equity derivatives and in cash and cash equivalents. Up to 20 per cent of the total assets may be invested into investment funds, hedge funds, investment companies, UCITs and UCIs. No single investment in any one security will exceed 10 per cent of total assets at the time of investment. The offer is being made to professional investors and various jurisdictions globally in US dollars, euros and sterling.