J.P. Morgan Asset Management is marketing its London-listed investment fund – the J.P. Morgan Senior Secured Loan Fund Limited – ahead of a planned listing in December. The manager is targeting an initial size of at least £100 million and is aimed at U.K. investors. The offer period is expected to open next week, sources said.
The listed vehicle will be based off a portfolio of senior secured loans, high-yield bonds, and a small amount in stressed assets of mainly U.S. companies, according to the prospectus. Up to 20% of the fund can invest in non-U.S. and Canadian investments, although the percentage in these investments at launch is likely to be less given the managers currently see limited opportunities in Europe.
The IPO price will be 100 pence, and the initial NAV 98.25 pence, and the fund, which will operate with gearing of up to 20%, will target an initial dividend yield of 5%.
The London-listed fund will be incorporated in Guernsey and listed on the London Stock Exchange.
The portfolio will be managed by Jim Shanahan and the firm’s high-yield team, which manages nearly $36 billion in loans and high-yield on behalf of investors globally. The team manages another listed fund – the Floating Rate Income Fund (JPHCX) – which is available to U.S. investors.
J.P. Morgan Asset Management is one of the largest managers of investment trusts in the U.K., with more than £7 billion under management in 22 investment companies. –Sarah Husband