Carey Olsen advises on innovative J.P. Morgan Asset Management convertible bond fund launch

Posted: 26/06/2013

Graham Hall-Carey Olsen
Carey Olsen has advised on the launch of the innovative JPMorgan Global Convertibles Income Fund, a new fund to be managed by J.P. Morgan Asset Management which raised £136 million when it was listed on the main market of the London Stock Exchange (LSE) this month.

JPMorgan Global Convertibles Income Fund Limited will invest in convertible bonds which are debt-equity hybrids which, like regular bonds, can be redeemed at maturity, but have the additional feature of being exchangeable for company shares under certain prescribed terms. The Fund will focus solely on income opportunities from convertible debt investments over a wide range of sectors and industries and has been established as a Guernsey-domiciled, closed-ended investment company, a structure that the Manager views as ideally suited to the asset class. It is targeting a dividend yield of 4.5%.

Carey Olsen advised on the establishment of the fund as a Guernsey structure and all relevant regulatory approvals with the Guernsey Financial Services Commission. Headed by corporate partner Graham Hall (pictured), the team from Carey Olsen included senior associate Geoff Ward-Marshall. Herbert Smith Freehills LLP provided UK counsel to the fund.

Simon Crinage, Head of Investment Trusts at J.P. Morgan Asset Management, said: “Carey Olsen's expert knowledge of the Guernsey funds sector and their ability to anticipate need assisted us to ensure this launch was timely and successful.”

Advocate Hall said: "Guernsey's closed-ended fund sector is continuing to attract pioneering managers and promoters who are looking to establish investment companies that can list on the LSE using Guernsey structures. We are continuing to see work-flow in this area."

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