A J.P. Morgan Chase & Co. subsidiary has filed applications for exemptive relief with the Securities and Exchange Commission, seeking orders that would allow it to offer ETF share classes of mutual funds and mutual fund share classes of ETFs, filings showed.
One of the applications filed by investment adviser J.P. Morgan Investment Management relates to fixed-income funds, while the other pertains to a variety of different types of funds, the Nov. 25 filings showed. With its filings, JPMIM joins a long list of applicants seeking exemptive relief to offer a multiclass structure.
Like earlier applications, JPMIM’s cited an exemptive order the SEC granted to Vanguard Group in 2000. Relying on that exemptive order and subsequent ones “Vanguard has become one of the major sponsors of index-based ETFs, with more than $2.5 trillion in assets invested through exchange-traded classes, representing over 28% of all ETF assets in the United States,” the JPMIM filings said. A patent held by Vanguard expired in May 2023.
“As a leading active manager, we are dedicated to providing our active capabilities in formats that align with our clients' preferences,” a statement provided by a J.P. Morgan Asset Management spokeswoman said. “This hybrid fund structure would offer the flexibility and efficiency many clients are looking for, allowing them to benefit from its scale and adaptability.”
JPMAM managed $3.3 trillion in assets as of Sept. 30.
