J.P. Morgan Asset Management plans to convert its JPMorgan Inflation Managed Bond Fund (JIMAX) into the JPMorgan Inflation Managed Bond ETF (JCPI) at the close of business on Friday. The actively managed fixed income fund invests in a core portfolio of bonds in combination with inflation swaps.
The conversion of the $1.1 billion mutual fund is part of JPMAM’s plan to switch four mutual funds into ETFs this year. The funds proposed for conversion represented roughly $10 billion in combined assets as of June 30.
“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 JPMAM CEO George Gatch in the release announcing the conversions. “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.”
The other funds JPMAM plans to convert to ETFs this year include the JPMorgan International Research Enhanced Equity Fund (OEIAX), the JPMorgan Market Expansion Enhanced Index Fund (OMEAX), and the JPMorgan Realty Income Fund (URTAX).
“J.P. Morgan has already established a strong active ETF presence but the manager’s commitment to be a leading provider is enhanced as they convert long-standing products into ETFs,” said ETF Trends’ head of research Todd Rosenbluth.
Other large actively managed fixed income ETFs in J.P. Morgan’s fund lineup include the JPMorgan Ultra-Short Income ETF (JPST) and the JPMorgan Disciplined High Yield ETF (JPHY).
JPST seeks to provide current income while seeking to maintain low volatility of principal. Under normal circumstances, the fund seeks to achieve its investment objective by investing at least 80% of its assets in investment grade, U.S. dollar-denominated short-term fixed, variable, and floating rate debt.
JPHY provides investors with access to U.S.-dollar denominated ‘junk’ bonds. Investors are rewarded for taking on added risk with higher yields than those offered on U.S. Treasuries or investment-grade debt issued by creditworthy companies. JPHY may invest assets in high-yield corporate debt, convertible securities, REITs, fixed- and floating-rate instruments, and pay-in-kind instruments.
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