For illustrative purposes only. This figure is not intended to imply that the price
of stock will rise constantly in any market or that the bonds will remain stable
in all circumstances.
A convertible is typically a bond with an embedded option which
allows it to be swapped for a company's shares on prescribed terms. In practice,
convertibles perform like debt-equity hybrids exhibiting bond-like characteristics,
providing income in normal and falling equity markets, but growing like an equity
when share prices rise.
Investment objective to deliver dividend income with potential for capital
growth from a portfolio of global convertible bonds.
A convertible is typically a bond with an embedded option which allows it
to be swapped for a company's shares on prescribed terms. In practice, convertibles
perform like debt-equity hybrids and are expected to exhibit bond-like characteristics,
providing income in normal and falling equity markets, but grow like an equity when
share prices rise.
The Company is free to invest broadly across sectors, geography, market capitalisations
and credit quality.
What are some of the risks?
Convertible bonds are subject to the risks associated with both debt and equity
securities, and to risks specific to convertible securities. Investors should be
prepared for greater volatility than straight bond investments, with an increased
risk of capital loss, but with the potential of higher returns. Their value may
change significantly depending on economic and interest rate conditions, the creditworthiness
of the issuer, the performance of the underlying equity and general financial market
conditions. In addition, issuers of convertible bonds may fail to meet payment obligations
and their credit ratings may be downgraded. This is generally known as credit risk.
Convertible bonds may also be subject to lower liquidity than the underlying equity
Emerging markets may be subject to less developed custody and settlement practices,
higher volatility and lower liquidity than non emerging markets. Changes in exchange
rates may cause the value of underlying overseas investments to go down as well
Investing in emerging markets may involve a higher element of risk due to
political and economic instability and underdeveloped markets and systems, and may
Gearing may be utilised, which may magnify the gains and losses experienced
by the fund and could cause the fund's net asset value to be subject to wider fluctuations
than would otherwise be the case.
An investment in the shares of JPMorgan Global Convertibles Income Fund Limited carries
a number of risks, including the risk that the entire investment may be lost. Not
all risks associated with such an investment are set out above. Potential investors
should carefully review the prospectus to be published in due course, and the risk
factors set out therein.
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The value of investments and the income from them can go down and up, and you may not get back as much as you paid in. Tax benefits and liabilities depend on individual circumstances and may change in the future.
Past performance is not a guide to the future.
The Company currently conducts its affairs so that the shares issued by the JPMorgan Global Convertibles Income Fund Limited can be recommended by IFAs to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.
The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because the Company would qualify as an investment trust if the Company was based in the UK.