Jupiter Asset Management is to launch an initial public offering for its high conviction Emerging & Frontier Income trust, which will target a minimum yield of 4% in the first year.
The company will target £200m in the initial placing and can also issue up to 200 million further ordinary shares and/or C shares in the 12 months from the date of publication of the prospectus in Mid April.
The trust will be run by Ross Teverson (pictured), head of strategy, global emerging markets, and assistant fund manager Charles Sunnucks, supported by other members of the Jupiter team.
It will adopt a benchmark agnostic approach, with a concentrated portfolio of 40-45 holdings.
The trust will offer a combination of emerging and frontier markets exposure, with the latter limited to a maximum of 25% of total assets.
It will be run using a multi-cap strategy, including a high proportion of mid- and small-cap holdings. The managers will invest in companies where they believe positive change is under-appreciated by the market at a structural, industry or company level.
There will also be a focus on income, with the managers taking advantage of the growing willingness for emerging and frontier market companies to pay dividends.
The trust will target a minimum dividend yield, based on the issue price, of 4% in the first 12 months post admission. A minimum total dividend of 5.5p per ordinary share will be targeted from incorporation to 30 September 2018.
Annual investment management fees on the trust will be 0.75% based on net asset value and there will be no performance fee.
The company will also have an annual redemption facility in order to assist with discount control, and directors' fees will be paid in shares.
John Scott, chairman of the Jupiter Emerging & Frontier Income trust, said: "This is an exciting opportunity for investors to access some of the world's fastest growing investment markets and to do so under the auspices of an experienced investment management team.
"The company offers its shareholders an attractive dividend yield which has the potential to grow and, as an investment proposition, it presents a reduced level of correlation with the investment markets of the developed world than is a feature of many yield-based funds."
The prospective board of directors for the trust are John Scott (chairman), Mark Dampier, Audrey McNair and Nick Moakes.
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