JP Morgan Asset Management will proceed with the launch of a closed-ended fund investing mainly in US senior secured loans, following its successful test marketing at the end of September.
The new fund will be the second closed-ended fund launch this year from JP Morgan Asset Management, the largest manager of investment trusts in the UK. In June £136 million ($218 million) was raised for the JPMorgan Global Convertibles Income Fund, underscoring the strong demand in the marketplace for asset classes that can deliver strong current rates of income.
“What we found in our meetings with potential investors is that there is overwhelming support for another quality name in the loans space, and we believe we can raise significant assets for such a strategy. The senior members of the team that will run our new fund have been managing high-yield bond and loan portfolios together for more than 25 years, and assets under management in these portfolios stood at $35.9 billion as of 31 July 2013,” said Simon Crinage, head of investment trusts at JP Morgan Asset Management.
The placing and offer period for the new fund is expected to open in November, with the shares anticipated to be admitted to trading on the London Stock Exchange in early December. The firm said that Panmure Gordon will act as broker to the launch.