After canvassing opinion earlier this year, Jupiter has decided to try to launch a new investment trust – Jupiter Emerging & Frontier Income Trust. They say it will be a “high conviction, long-only investment trust, investing predominantly in quoted global emerging and frontier market equities and will differ from other current UK listed Global Emerging Market investment trusts. The Company will adopt a benchmark agnostic approach and offers a new way for investors to draw on the experience and record of Jupiter in this sector. The Company’s combination of emerging and frontier markets exposure (with frontier markets exposure limited to a maximum of 25 per cent. of total assets), and benchmark unconstrained investment approach, will enable it to invest in high conviction ideas from across a wider range of markets than would be typical for an emerging markets fund and is expected to enhance its diversification of risk.”
They say that the company “offers a more concentrated exposure than is typical for an emerging markets fund, with the portfolio typically expected to consist of 40 to 45 investments, which the Investment Manager considers an optimal balance, providing significant diversification across countries and sectors, whilst also limiting investment to only those companies that the Investment Manager considers to be high conviction opportunities. The company will target a minimum dividend yield, based on the issue price, of 4% in the period of approximately 12 months post admission. The company will have an annual redemption facility in order to assist with discount control, and directors’ fees will be paid in shares.”