Jupiter Asset Management is seeking approval from the FSA to launch a European Income Fund. 

The Jupiter European Income Fund, which is scheduled for launch in May, will seek to produce a high and rising income by investing chiefly in high quality companies with operations or stock market listings in continental Europe. 

Jupiter, which has established a strong reputation for managing income funds, believes the case for investing internationally for income is growing. The Group has, as a result, developed a strong thematic and geographic approach to income investing in recent years, with products such as the £50m Jupiter Environmental Income and the £134m Jupiter Japan Income funds joining more-established names such as the £4bn Jupiter Income Trust and £726m Jupiter High Income Fund. The Jupiter European Income Fund is the latest addition to this suite of products. 

The Fund will be managed by Malcolm Millar, who joined Jupiter's European equity desk in June 2002 and has managed the Jupiter Pan-European Growth SICAV since May 2003. As a member of Jupiter's highly-regarded European equity team, Malcolm will work closely with Alex Darwall, Jupiter's head of European equities, and Cedric de Fonclare, manager of the Jupiter European Special Situations Fund. He will also draw on the talents of Anthony Nutt, one of the UK's most respected income investors and manager of the Jupiter Income and Jupiter High Income funds. 

Malcolm Millar said: "Continental European companies have traditionally had less of a dividend culture than the UK. However, yields are close to those of the UK - the Dow Jones EuroStoxx 50 is currently yielding 3.1% against 3.6% for the FTSE 100*. Our view is that there is a very broad and well diversified range of companies in continental Europe that can sustain strong profits growth, while also being both willing and able to grow their dividend payments over time." 

"In part, this is a reflection of the fact that the European corporate sector has been very profitable in recent years and companies have therefore been well placed to return cash to shareholders. But it is also a reflection of greater demand from shareholders across all major markets as investors seek to meet the income requirements of ageing populations." 

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* Source: Bloomberg 

Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both subsidiaries of Commerzbank AG one of Germany's leading banks. Both JUTM and JAM are authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place, London SW1X 7JJ. The group is collectively known as "Jupiter".