J.P. Morgan and Lincoln Financial Merge Insurance Trust Funds, Joining Forces to Enhance Offerings in the Variable Insurance Trust Space

Rhea-AI Summary

J.P. Morgan Asset Management and Lincoln Financial Group have strengthened their partnership by proposing the merger of four JPMorgan Insurance Trust Portfolios into four corresponding LVIP Acquiring Funds. This strategic move aims to enhance Lincoln's insurance, retirement, and variable annuity offerings. Pending shareholder approval, J.P. Morgan will serve as the subadvisor for the newly formed funds. With J.P. Morgan overseeing $75 billion in assets and Lincoln managing a $90 billion platform, the collaboration is set to deliver best-in-class investment solutions.

Positive

• Strengthening partnership enhances Lincoln Financial's insurance and retirement offerings.
• J.P. Morgan's subadvisory expertise expected to drive better investment returns.
• Combination of Lincoln's $90 billion platform with J.P. Morgan's $75 billion management boosts market competitiveness.

Negative

• None.

NEW YORK, and RADNOR, Pa., Dec. 19, 2022 /PRNewswire/ -- – J.P. Morgan Asset Management and Lincoln Financial Group today announced that they have strengthened their partnership to have J.P. Morgan's world class investment capabilities as part of Lincoln Financial Group's platform, further enhancing Lincoln's broad offerings of leading insurance, retirement and variable annuity solutions. 

Under this initiative, shareholders of four JPMorgan Insurance Trust Portfolios (JPM VITs) will be asked to approve a proposal to merge the JPM VITs into four corresponding, newly formed series of Lincoln Financial Variable Insurance Products Trust (LVIP Acquiring Funds). The JPM VITs represent four of J.P. Morgan's flagship investment strategies across equities and fixed income asset classes.

JPM VITs	LVIP Acquiring Funds
JPMorgan Insurance Trust Core Bond Portfolio	LVIP JPMorgan Core Bond Fund
JPMorgan Insurance Trust Mid Cap Value Portfolio	LVIP JPMorgan Mid Cap Value Fund
JPMorgan Insurance Trust Small Cap Core Portfolio	LVIP JPMorgan Small Cap Core Fund
JPMorgan Insurance Trust U.S. Equity Portfolio	LVIP JPMorgan U.S. Equity Fund

 

Pending shareholder approval of the merger, J.P. Morgan¹ will serve as the subadvisor for each LVIP Acquiring Fund and will continue to manage the LVIP Acquiring Funds using its world-class portfolio management teams and investment processes. Lincoln Investment Advisors Corporation (LIAC) will be retained as the investment adviser to each LVIP Acquiring Fund.

"As a leading provider of life, annuity and retirement solutions with a $90 billion funds platform, we are thrilled to have these capabilities as part of our subadvised lineup, further enhancing how we address core investor needs," said Ben Richer, Head of Funds Management, Lincoln Financial Group. "The combination of our scale, resources and investment platform design with J.P. Morgan's portfolio management capabilities will deliver a best-in-class offering for our clients."   

J.P. Morgan's subadvisory business oversees $75 billion in assets under management across variable annuity and mutual fund products and is a top five variable annuity subadvisor in the industry. 

"This partnership underscores our complete focus on subadvisory relationships, the investment strategies that underpin them and supporting our clients' own growth strategies," said Eric Wilson, Head of Subadvisory for J.P. Morgan Asset Management. "We have a significant subadvisory relationship with Lincoln Financial and look forward to deepening this partnership and most importantly, delivering investment returns." 

The transaction is expected to take place in May 2023.

¹ J.P. Morgan Investment Management Inc.  currently serves as the investment adviser to the JPM VITs

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, approximately 16 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $270 billion in end-of-period account values as of September 30, 2022. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good and ranks among Newsweek's Most Responsible Companies. Dedicated to diversity, equity and inclusion, we are included on transparency benchmarking tools such as the Corporate Equality Index, the Disability Equality Index and the Bloomberg Gender-Equality Index. Committed to providing our employees with flexible work arrangements, we were named to FlexJobs' list of the Top 100 Companies to Watch for Remote Jobs in 2022. With a long and rich legacy of acting ethically, telling the truth and speaking up for what is right, Lincoln was recognized as one of Ethisphere's 2022 World's Most Ethical Companies^®. We create opportunities for early career talent through our intern development program, which ranks among WayUp and Yello's annual list of Top 100 Internship Programs. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $2.3 trillion (as of Sept 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.

J.P. Morgan Asset Management is the marketing name for J.P. Morgan Investment Management Inc. ("JPMIM"), the asset management businesses of JPMorgan Chase & Co. (NYSE: JPM) and its affiliates worldwide.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

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SOURCE J.P. Morgan Asset Management

FAQ

What is the purpose of the merger between J.P. Morgan and Lincoln Financial?

The merger aims to enhance Lincoln Financial's insurance, retirement, and variable annuity offerings by integrating J.P. Morgan's investment capabilities.

What funds are involved in the J.P. Morgan and Lincoln Financial merger?

The merger involves four JPMorgan Insurance Trust Portfolios merging into four corresponding LVIP Acquiring Funds.

When is the J.P. Morgan and Lincoln Financial merger expected to take place?

The merger is expected to take place in May 2023, pending shareholder approval.

How will the merger impact shareholders of J.P. Morgan and Lincoln Financial?

The merger is designed to enhance investment offerings and potentially improve returns for shareholders of both companies.