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JP Morgan EM heads team for new launch

JP Morgan Asset Management has unveiled the details of an equity and bond emerging market income launch for Richard Titherington and Pierre Yves Bareau.

Emerging market equities chief Titherington will team up with EM debt chief investment officer Bareau to run the Luxemburg-domiciled JP Morgan Total Emerging Markets Income Fund.

The asset manager’s latest offering will give investors exposure to both stocks and emerging market credit.

The pair will construct the fund’s portfolio using a blend of top-down and bottom-up analysis.

Titherington currently runs the popular JP Morgan Global Emerging Market Income Trust. Under Titherington, the popular £305m fund has seen its share price grow by more than 24% over three years, while the MSCI Emerging Market Index has climbed by just 2.7% over the same stretch.

Titherington also runs the open-ended JP Morgan Emerging Market Income Fund, which over the year to the end of September has also outperformed its benchmark. The £419m vehicle launched last July has returned 6.4% compared to an increase of 3% in the MSCI Emerging Market TR Index, in dollar terms.

Bareau, meanwhile, runs four funds including the JP Morgan Emerging Markets Bond X Fund. Over the 12 months to the end of September the vehicle has lost 3.5%, but has not suffered the full 6.2% decline suffered by its benchmark.

Commenting on the launch, Titherington said it was important to “broaden the emerging market opportunities set” for investors to ensure than they had exposure to both equities and bonds, in order to ensure the potential for strong risk-adjusted returns and a stable source of income.

He explained: “Investors are increasingly realising emerging markets can be a source of growth as well as yield, but are mindful of managing volatility. Combining debt and equity exposure can offer diversification.”

Part of the Mark Allen Group.