J.P. Morgan Asset Management Proposes Conversion of Select Mutual Funds to ETFs
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.
J.P. Morgan Asset Management ha annunciato piani per convertire selezionati fondi comuni statunitensi in ETF a metà del 2025, soggetti all'approvazione del consiglio previsto per febbraio 2025. La conversione coinvolge tre fondi con attivi combinati di circa $6 miliardi: il Fondo di Titoli Garantiti da Ipoteche JPMorgan ($5.759M), il Fondo di Valore in Scienze Dati Applicate Statunitensi JPMorgan ($174M) e il Fondo di Equity Internazionale Coperto JPMorgan ($181M). L'obiettivo della conversione è fornire agli investitori una maggiore flessibilità nei trading, maggiore trasparenza del portafoglio e potenziali vantaggi fiscali. J.P. Morgan Asset Management gestisce attualmente $160 miliardi in attivi ETF, posizionandosi al secondo posto a livello globale per AUM ETF attivi.
J.P. Morgan Asset Management ha anunciado planes para convertir ciertos fondos mutuos en EE. UU. a ETF a mediados de 2025, sujeto a la aprobación de la junta en febrero de 2025. La conversión involucra tres fondos con activos combinados de aproximadamente $6 mil millones: el Fondo de Valores respaldados por hipotecas JPMorgan ($5,759M), el Fondo de Valor en Ciencia de Datos Aplicados de EE. UU. JPMorgan ($174M) y el Fondo de Acciones Internacionales Cubiertas JPMorgan ($181M). El objetivo de la conversión es proporcionar a los inversores una mayor flexibilidad comercial, aumentar la transparencia de la cartera y mejorar la eficiencia fiscal potencial. J.P. Morgan Asset Management actualmente gestiona $160 mil millones en activos ETF, ocupando el segundo lugar a nivel mundial en AUM de ETF activos.
J.P. Morgan Asset Management는 2025년 중반에 특정 미국 뮤추얼 펀드를 ETF로 전환할 계획을 발표했으며, 이는 2025년 2월 이사회 승인을 받을 예정입니다. 전환에는 약 $60억의 자산을 가진 세 개의 펀드가 포함됩니다: JPMorgan 모기지 담보 증권 펀드 ($5,759M), JPMorgan 미국 응용 데이터 과학 가치 펀드 ($174M), 그리고 JPMorgan 국제 헤지 주식 펀드 ($181M). 전환의 목표는 투자자에게 거래 유연성을 높이고 포트폴리오 투명성을 증가시키며 잠재적인 세금 효율성을 제공하는 것입니다. J.P. Morgan Asset Management는 현재 $1600억 규모의 ETF 자산을 관리하고 있으며, 세계적으로 능동 ETF AUM에서 두 번째 위치를 차지하고 있습니다.
J.P. Morgan Asset Management a annoncé des projets de conversion de certains fonds communs de placement américains en ETF à la mi-2025, sous réserve de l'approbation du conseil d'administration en février 2025. La conversion concerne trois fonds avec des actifs combinés d'environ 6 milliards de dollars : le Fonds de Titres adossés à des Hypothèques JPMorgan (5,759 millions de dollars), le Fonds de Valeur en Science des Données Appliquées de JPMorgan (174 millions de dollars) et le Fonds d'Actions Internationales Couvertes de JPMorgan (181 millions de dollars). L'objectif de la conversion est d'offrir aux investisseurs une flexibilité de négociation améliorée, une transparence accrue du portefeuille et une efficacité fiscale potentielle. J.P. Morgan Asset Management gère actuellement 160 milliards de dollars d'actifs ETF, se classant au deuxième rang mondial en termes d'AUM d'ETF actifs.
J.P. Morgan Asset Management hat Pläne angekündigt, ausgewählte US-Investmentfonds bis Mitte 2025 in ETFs umzuwandeln, vorbehaltlich der Genehmigung des Vorstands im Februar 2025. Die Umwandlung umfasst drei Fonds mit einem Gesamtvermögen von etwa $6 Milliarden: JPMorgan Hypothekenbesicherte Wertpapierfonds ($5.759M), JPMorgan US Angewandte Datenwissenschaft Wertfonds ($174M) und JPMorgan International Hedged Equity Fonds ($181M). Ziel der Umwandlung ist es, den Investoren eine verbesserte Handelsflexibilität, eine erhöhte Transparenz im Portfolio und potenzielle Steuervorteile zu bieten. J.P. Morgan Asset Management verwaltet derzeit $160 Milliarden an ETF-Vermögen und belegt damit weltweit den zweiten Platz im aktiven ETF AUM.
- 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
- None.
Insights
This strategic move to convert
The timing of this announcement, well ahead of the planned mid-2025 conversion, indicates a well-structured transition plan. With J.P. Morgan already ranking second globally in active ETF AUM at
The conversion mechanics are particularly noteworthy from a market structure perspective. By not requiring shareholder approval, J.P. Morgan has chosen an efficient conversion path that minimizes operational disruption. The selection of these specific funds suggests a strategic focus on strategies that can benefit from the ETF wrapper without compromising investment objectives.
The transparency requirement of ETFs will be particularly interesting for the Applied Data Science Value Fund, as it will need to adapt its disclosure mechanisms. The inclusion of the International Hedged Equity Fund indicates confidence in managing complex strategies within the ETF structure. This conversion could set a precedent for future similar transitions across the industry.
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
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 |
JPMorgan Mortgage Backed Securities Fund | 6/27/2025 | |
JPMorgan | 7/11/2025 | |
JPMorgan International Hedged Equity Fund | 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
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in
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
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SOURCE J.P. Morgan Asset Management
FAQ
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