The UK-based fund management firm has revealed its plan to launch a new company focused on emerging and frontier markets.

Jupiter Fund Management, the UK-based financial firm, has announced plans to launch a new company, the Jupiter Emerging & Frontier Income Trust.

The company will be an actively managed portfolio and will aim to achieve capital growth and income long-term, mainly through investment in a portfolio of companies exposed to global emerging and frontier markets. 

The company will be managed by Ross Teverson and assistant fund manager Charles Sunnucks, supported by the Jupiter Global Emerging Markets team. Teverson serves as lead manager on Jupiter’s global emerging markets and China portfolios and has been working in investing in emerging and frontier markets for more than 18 years. Prior to joining Jupiter in 2014, he managed a global emerging equity fund at Standard Life Investments. Sunnucks joined Jupiter is 2010 as an analyst and currently specialises in financials, internet companies and utilities. 

John Scott, chairman of Jupiter Emerging & Frontier Income Trust, said: “Ross Teverson and Charles Sunnucks bring with them a wealth of experience, and a real passion for their markets that we believe should provide a pathway to future success.”

Teverson and Sunnucks plan to adopt a multi-cap strategy to manage the new company, with small and mid-cap stocks making up a large part of its assets. The managers plan to look to invest in companies undergoing positive change that is underappreciated by the market. Risk will be managed through diversification across market capitalisation, geography and sector.
 
The company will have an income focus with unconstrained and bottom-up stock-picking. A maximum of 25 per cent of the company’s total assets can be placed in frontier markets, which in the managers’ view could offer further risk diversification and the potential for enhanced returns. The company’s portfolio will typically hold between 40 and 45 stocks.

“Emerging markets remain, in our opinion, structurally attractive, and can offer investors a wealth of opportunities and benefits,” said Ross Teverson, Jupiter’s head of strategy, emerging markets. “This new company 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.”