The JP Morgan Global Convertibles Income Fund will be managed by JP Morgan Asset Management’s convertible bond team, headed by Antony Vallee.

JP Morgan said the company would initially target a 4.5 per cent annual dividend.

“There has been a growing interest in convertible bonds as investors search for yield. This, coupled with the rising trend of established companies around the world turning to convertible bonds as a way of raising cash, means that we believe the time is right for this investment company," said Antony Vallee, head of convertibles at JP Morgan Asset Management.

Vallee added that with quantitative easing in the US and continued instability in Europe, convertibles could provide investors with a "well-diversified global portfolio and comfort in an unsure market".

Simon Crinage, managing director of investment trusts at JP Morgan Asset Management, said: "Convertibles performed well in 2012 and we believe this is set to continue. The company will focus on quality bonds that ensure investors get the benefits of stock market upturns but with the protection of bonds, superior risk-adjusted total returns and reduced volatility."