J.P. Morgan raises £104m for EM income trust

J.P. Morgan has raised £104m for its new Global Emerging Markets investment trust.

Managed by CIO of emerging market equities Richard Titherington, it is targeting an initial dividend yield of at least 4%, paid semi-annually, from a diversified portfolio of emerging market equities.

The fund has no constraints on portfolio construction by region, country, sector or market capitalisation. It will primarily invest in equities, though can hold up to 50% in bonds during adverse stock market conditions.

The management fee is 1% of net assets with a performance fee of 10% of NAV total return in excess of the MSCI Emerging Markets net index in sterling. It begins trading today with an initial NAV of 98.3p.

Numis Securities analysts Charles Cade says: "The client base of the fund is believed to be primarily UK private wealth managers and retail investors.

"We believe the success of the issue reflects strong demand from investors to diversify their sources of income, particularly in the light of BP's recent dividend suspension."