J.P. Morgan Asset Management plans to convert four mutual funds to exchange-traded funds in 2022, pending fund board approval.
The funds are the $5 billion JPMorgan International Research Enhanced Equity Fund, the $2.2 billion JPMorgan Realty Income Fund, the $1.4 billion JPMorgan Inflation Managed Bond Fund and the $1.1 billion JPMorgan Market Expansion Enhanced Index Fund, spokeswoman Victoria N. Zarella confirmed.
JPMAM cited a desire to expand its ability to deliver more investment opportunities in the ETF vehicle, which it said is "well-suited for the four mutual funds currently in scope and will be beneficial to their investors," according to the release.
J.P. Morgan Asset Management also plans to ask shareholders to elect a common board of 16 members to govern the entire platform of J.P. Morgan funds, the release said.
"As one of the fastest growing asset management firms, we are positioning ourselves to deliver our best investment capabilities more rapidly through a broader range of vehicles including mutual funds and ETFs," said George Gatch, JPMAM's CEO, in the release. "We also believe the combination of the mutual fund and ETF boards will allow shareholders to benefit from the boards' substantial combined experience and better position us to deliver the highest value-add capabilities in a rapidly evolving industry."
As of June 30, J.P. Morgan Asset Management had a total of $2.6 trillion in assets under management. Its 129 mutual funds had $899 billion in AUM and its 36 U.S. ETFs had $64 billion in AUM.
