JP Morgan Asset Management offers the conversion of certain mutual funds into ETFs

NEW YORK, August 11, 2021 / PRNewswire / – JP Morgan Asset Management has announced its intention to convert certain U.S. mutual fund vehicles to ETFs in 2022. The conversions, which are subject to the approval of the fund’s board of directors, are intended to expand the JP Morgan’s ability to deliver more of its industry-leading investment capabilities in the ETF vehicle, a structure it believes is well suited to the four currently targeted mutual funds and will be of benefit to their investors. The combined assets of the funds offered for conversion are approximately 10 billion dollars (as of 06/30/2021).
JP Morgan Asset Management also announced that in light of the continued convergence of mutual funds and ETFs, the boards of directors of JP Morgan mutual funds and ETFs are asking shareholders to elect a common board of 16 to lead the entire JP Morgan Fund complex. If approved by shareholders, this change would also take effect in early 2022.
“As one of the fastest growing asset management companies, we are positioning ourselves to deliver our best investment capabilities faster through a wider range of vehicles, including mutual funds and ETFs. We also believe that the combination of mutual fund and ETF boards will allow shareholders to benefit from the substantial combined board experience and better position us to deliver the highest value-added capabilities. in a rapidly changing sector ”, noted Georges gatch, Chairman and CEO, JP Morgan Asset Management.
If boards approve these conversions, which they plan to consider early next year, the following mutual funds would be converted to substantially similar ETFs in an active transparent ETF structure:
- JPMorgan International Research Enhanced Equity Fund (OEIAX: AUM $ 5.0 billion*)
- JPMorgan Market Expansion Enhanced Index Fund (OMEAX: AUM $ 1.1 billion*)
- JPMorgan Real Estate Income Fund (URTAX: AUM $ 2.2 billion*)
- JPMorgan Inflation Managed Bond Fund (JIMAX: AUM $ 1.4 billion*)
*Assets under management at 06/30/2021
By converting these mutual funds into ETFs, JP Morgan would offer clients active investment options in spaces that have traditionally seen predominantly passive ETF solutions.
JP Morgan Asset Management announces proposed conversion plans well in advance in order to provide shareholders and distributors with sufficient advance notice of planned conversions and to allow them time to discuss with JP Morgan the implications of this important effort. It is anticipated that if conversions are approved by the boards of directors of the funds, they will not require shareholder approval prior to implementation.
“As a leading active manager, it is important for us to continue to offer our investment capabilities in the vehicle that meets the results desired by our clients”, noted Bryon Lake, Head of ETF Americas. “The intraday liquidity, transparency and potential tax advantages that come with ETFs have significant value for many investors, and these particular strategies are well suited to the structure of the ETF.”
“JP Morgan is known for its deep expertise in investing in all asset classes and we want our product offering to be equally diverse – reflecting our broad capabilities across ETFs, mutual funds, separately managed accounts. and other structures,” noted Jed Laskowitz, Global Head of Asset Management Solutions. “We believe that selected and thoughtful conversions have the potential to have a positive impact on the shareholder experience, and that is always our goal.”
JP Morgan Asset Management’s US ETF suite has 36 products with more than 64 billion dollars in assets under management. JP Morgan Asset Management ranks among the top ten ETF issuers for assets under management and net flows in the active funds and ETF sector for 2021[1]. JP Morgan manages 129 mutual funds, with $ 899 billion in AUM (at 06/30/21). Our portfolio managers have performed exceptionally well throughout market cycles, with 79% of our mutual fund assets under management ranked in the top two quartiles over the 10 year period (as of 6/30/2021) . As a leading active manager in the industry, we are committed to providing access to our investment capabilities across a range of vehicles including ETFs, mutual funds, blended funds, SMAs and liquid alternatives.
About JP Morgan Asset Management
JP Morgan Asset Management, with assets under management of $ 2.6 trillion (as of 06/30/2021), is a world leader in investment management. JP Morgan Asset Management clients include institutions, retail investors and high net worth individuals in all major markets around the world. JP Morgan Asset Management offers global management of investments in stocks, bonds, real estate, hedge funds, private equity and liquidity. For more information: www.jpmorganassetmanagement.com.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services company with assets of $ 3.7 trillion and operations around the world. The company is a leader in investment banking, personal and small business financial services, commercial banking, financial transaction processing and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in United States and many of the world’s largest corporate, institutional and government clients under its JP Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. JP Morgan Asset Management is the trade name for the asset management business of JPMorgan Chase & Co. and its subsidiaries around the world.
JP Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is a subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. earn fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA. More information is available at https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/etfs.
Investors should carefully consider the investment objectives and risks as well as the fees and expenses of the funds before investing. The summary and full prospectus contain this and other information about the funds and should be read carefully before investing. To obtain a prospectus, call 1-800-480-4111.
Information regarding the proposed election of a common board of directors, including the participants in the proxy solicitation and a description of their direct or indirect interests, by title or otherwise, will be contained in the proxy documents to be filed with of the Securities and Exchange Commission. (“SECOND”). Shareholders should read the proxy circular when available as it contains important information. The proxy circular will be mailed to registered shareholders, and shareholders will also be able to access the proxy circular and other relevant material on the SEC’s website at www.sec.gov once filed. The proxy circular will also be available on www.proxyvote.com and a hard copy can be obtained free of charge by calling 1-800-690-6903.
In connection with the proposed conversions discussed here, an information document / prospectus that will be included in a registration statement on Form N-14 will be filed with the SEC. Once the registration statement is filed with the SEC, it may be amended or withdrawn and the information statement / prospectus will not be distributed to shareholders unless and until the registration statement is declared effective. by the SEC. Investors are urged to read the documents and any other relevant documents when they become available as they will contain important information about conversions. After filing, free copies of the documents will be available on the SEC’s website at www.sec.gov. These documents will also be available on www.jpmorganfunds.com and a hard copy can be obtained at no cost by calling 1-800-480-4111.
This communication is for information purposes only and does not constitute a solicitation of a proxy from a fund shareholder and does not constitute an offer to sell securities. No offer of securities will be made except under a prospectus meeting the requirements of Section 10 of the Securities Act of 1933.
NON FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
1 Data according to ETFdb.com from August 10, 2021.
SOURCE JP Morgan Asset Management
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