JP Morgan to launch new fund for investment in Brazil
Date added: 8th June, 2010 at 09:02
(view all articles from June, 2010)
Categories: Economy
JP Morgan Asset Management is planning to create the first Global Emerging Markets Income Trust for investment in Brazil.
Many investors view developing economies as opportunities for growth, but the firm has said countries like Brazil are now offering consistent returns.
The approach of emerging markets to shareholders is maturing, the company explained, as a focus on responsible investment in the interest of those with a stake in firms has seen a drop in debt and the payment of dividends.
In the last ten years, developing economies have outperformed the FTSE 100, JP Morgan reported, while yields from equities - which, according to Morningstar, cited in Business Insider, are now cheaper in Brazil than Mexico - have exceeded the broader MSCI Emerging Market Index.
JP Morgan has announced that its new trust will concentrate on dividend income and capital growth from Brazil and similar nations and will have as its goal a four per cent target yield.
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