J.P. Morgan Asset Management Proposes Conversion of Select Mutual Funds to ETFs

Rhea-AI Summary

J.P. Morgan Asset Management has announced plans to convert select U.S. mutual funds to ETFs in mid-2025, subject to board approval in February 2025. The conversion involves three funds with combined assets of approximately $6 billion: JPMorgan Mortgage Backed Securities Fund ($5,759M), JPMorgan U.S Applied Data Science Value Fund ($174M), and JPMorgan International Hedged Equity Fund ($181M). The conversion aims to provide investors with enhanced trading flexibility, increased portfolio transparency, and potential tax efficiency. J.P. Morgan Asset Management currently manages $160 billion in ETF assets, ranking second globally in active ETF AUM.

Positive

• Plans to convert $6B in mutual fund assets to more tax-efficient ETF structure
• Company ranks 2nd globally in active ETF AUM with $160B under management
• Conversion doesn't require shareholder approval, streamlining the process

Negative

• None.

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- J.P. Morgan Asset Management has announced plans to convert select U.S. mutual funds to ETFs in mid-2025.

The proposed conversions, which are subject to fund board approval, are expected to provide benefits for investors of the mutual funds. 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 that these particular strategies are well suited for the ETF structure. The combined assets of the funds proposed for conversion are approximately $6 billion (as of 10/31/2024).

The board has agreed to consider these conversions in February 2025. If approved, the following mutual funds would be converted to actively managed transparent ETFs managed by the same portfolio management teams and with the same investment objectives as the current mutual funds:

Mutual Fund	AUM*	Proposed Conversion Date
JPMorgan Mortgage Backed Securities Fund	$5,759M	6/27/2025
JPMorgan U.S Applied Data Science Value Fund	$174M	7/11/2025
JPMorgan International Hedged Equity Fund	$181M	7/11/2025
*AUM as of 10/31/2024

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.

As a leading active manager, 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. With $160 billion in ETF assets under management, J.P. Morgan Asset Management ranks second in active ETF AUM globally (as of 9/30/2024).

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.5 trillion (as of 9/30/2024), 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 financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.2 trillion in assets and $346 billion in stockholders' equity (as of 9/30/2024). The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/jp-morgan-asset-management-proposes-conversion-of-select-mutual-funds-to-etfs-302321146.html

SOURCE J.P. Morgan Asset Management

FAQ

When will JPM convert its select mutual funds to ETFs?

The conversion is planned for mid-2025, with specific dates of June 27, 2025, for the Mortgage Backed Securities Fund and July 11, 2025, for the other two funds, subject to board approval in February 2025.

Which JPM mutual funds are being converted to ETFs?

Three funds are being converted: JPMorgan Mortgage Backed Securities Fund ($5,759M), JPMorgan U.S Applied Data Science Value Fund ($174M), and JPMorgan International Hedged Equity Fund ($181M).

What is the total asset value of JPM funds being converted to ETFs?

The combined assets of the funds proposed for conversion are approximately $6 billion (as of October 31, 2024).

Will JPM shareholders need to approve the mutual fund to ETF conversion?

No, if the conversions are approved by the board of the funds, they would not require shareholder approval prior to implementation.