NEW YORK, December 15, 2022: J.P. Morgan Asset Management has announced plans to convert select U.S. mutual funds to ETFs in 2023, following the successful conversion of four mutual funds to ETFs earlier in 2022.
The proposed conversions, which are subject to fund board approval, are expected to provide benefits for investors of the mutual funds, including lower net expenses (for at least three years from the date of each conversion). The additional trading flexibility, increased portfolio holdings transparency and potential for enhanced tax efficiency that come with ETFs carry significant value to many investors, and J.P. Morgan believes these particular strategies are well suited for the ETF structure. The combined assets of the funds proposed for conversion are approximately $2 billion (as of 11/30/2022).
The board expects to consider these conversions in February 2023. If approved, the following mutual funds would be converted to actively managed transparent ETFs with substantially the same investment strategies as the current mutual funds:
|JPMorgan High Yield Municipal Fund (JTIAX)||$340M||7/14/2023|
|JPMorgan Sustainable Municipal Income Fund (OTBAX)||$243M||7/14/2023|
|JPMorgan Equity Focus Fund (JPFAX)||$209M||7/28/2023|
|JPMorgan Limited Duration Bond Fund (ONUAX)||$1,142BN||7/28/2023|
|*AUM as of 11/30/2022|
By converting these four mutual funds to actively managed ETFs, J.P. Morgan would provide investors with active investment options in spaces that traditionally have seen mostly passive ETF solutions. If the board does not approve the conversions for any reason, then they will not occur.
J.P. Morgan Asset Management is announcing the proposed conversion plans well in advance to provide shareholders and distributors with ample notice of the planned conversions and to allow them time to engage with J.P. Morgan on the implications of this important effort. It is anticipated that if the conversions are approved by the board of the funds, they would not require shareholder approval prior to implementation.
J.P. Morgan Asset Management’s U.S. ETF suite has 46 products with more than $80.5 billion in assets under management and is a Top 10 ETF provider (according to Bloomberg, 10/21/2022). As a leading active manager in the industry, J.P. Morgan Asset Management is committed to providing access to its investment capabilities through a range of vehicles including ETFs, mutual funds, commingled funds, SMAs and liquid alternatives.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $2.3 trillion (as of 9/30/2022), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, 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 firm with assets of $3.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. and its affiliates worldwide.
J.P. Morgan mutual funds and ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive 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 charges and expenses of the funds before investing. The summary and full prospectuses contain this and other information about the funds and should be read carefully before investing. To obtain a prospectus call 1-800-480-4111.
If the proposed conversions discussed herein are approved by the board, an information statement/prospectus that will be included in a registration statement on Form N-14 will be filed with the SEC. After 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 materials and any other relevant documents when they become available because they will contain important information about the conversions. After they are filed, free copies of the materials will be available on the SEC's website at www.sec.gov. These materials also will be available at www.jpmorganfunds.com and a paper copy can be obtained at no charge by calling 1-800-480-4111.
This communication is for informational purposes only and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
SOURCE J.P. Morgan Asset Management