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Global emerging markets offer high yielding investment returns

4th April 2011 Print

The number of high yielding, liquid stocks across global emerging markets is approximately four times more than that of UK domiciled companies according to new data from the managers of JPMorgan Global Emerging Markets Income Trust.

Global emerging markets, which have historically been viewed purely as a source of growth for investors, are maturing into consistent income generators argues Richard Titherington, Manager of the JPMorgan Global Emerging Markets Income Trust. This is due to emerging market companies adopting an increasingly disciplined approach to both managing their balance sheets and corporate governance, which has been reflected in falling levels of debt and a willingness to pay dividends.

Currently, global emerging markets offer four times the number of high yielding stocks compared to companies listed in the UK.

Richard Titherington, Manager of the JPMorgan Global Emerging Markets Income Trust explains, "The opportunities we are identifying in global emerging markets from an income perspective are compelling. Over recent years, we have witnessed significant growth in the number of emerging market stocks, growing more than four-fold since 2003, therefore facilitating healthy diversification and an ever increasing universe for generating income. The figures speak for themselves; our data reveals there are substantially more high yielding stocks available across a universe of up to 3500 stocks compared with a universe of over 800 UK domiciled companies of similar liquidity."

David Barron, Head of Investment Trusts at J.P. Morgan Asset Management went on to explain, "As a result of the equity income opportunities in emerging markets we have seen continued investor demand since the launch of the JPMorgan Global Emerging Markets Income Trust in July 2010. The action taken by The Board of the investment trust in offering conversion shares (C shares) is aimed to meet this demand from new and existing investors. This is an exciting growth area which the Board and the managers of the Trust have conviction in from a long term perspective."

The JPMorgan Global Emerging Markets Income Trust seeks to offer a progressive dividend (the Company recently announced its first interim dividend to shareholders of 1.00 pence per share for the period to 28th January 2011). The investment trust holds between 50 and 80 stocks with a diverse sector and geographical breakdown.

The prospectus for the C Share issue is now available and the offer period will be open for investors throughout the current ISA season and also for early bird 2011/12 ISA applications. The offer for subscription closes on 13th April. If investors wish to invest through J.P. Morgan Asset Management's online wealth management service, J.P. Morgan WealthManager+, applications must be in by 8th April. Further details on the Company as well as the opportunity to register for a copy of the prospectus are available at