Guernsey Home To Unique Convertibles Listing

Guernsey will be home to the only closed-ended fund listed in the UK that is focused solely on investing in convertibles.

JP Morgan Asset Management has confirmed the launch of its new Guernsey-domiciled investment company, JP Morgan Global Convertibles Income Fund, which has an offer for subscription until 5 June.

Antony Vallee, head of convertibles at JP Morgan Asset Management, said: "We have specifically chosen a closed-ended structure for this fund in order to be able to offer an attractive level of yield. Open-ended portfolios need liquidity, and they tend to get this from holding bonds issued by very large, liquid companies, which tend to issue bonds with relatively low levels of coupon. As a closed-ended fund has a stable pool of capital that is less affected by inflows and outflows, the requirement for liquidity at the portfolio level is lessened, and we can therefore focus on convertible bonds offering a higher level of income, such as those issued by