JPMorgan readies to convert $9.1bn mutual funds into ETFs
American banking giant JP Morgan will begin converting $9.1bn of mutual funds into exchange traded funds (ETF) after the four funds bled a combined $2bn in the year to November, the firm has disclosed.
The boards of three of JP Morgan’s signed off the planned conversions on January 13, the Financial Times first reported.
The transition to ETFs will now allow the funds to slash fees for investors and be traded like stocks, rather than be actively managed in a mutual fund.
The $9.1bn worth of funds up for conversion will be the Inflation Managed Bond Fund; Market Expansion Enhanced Index Fund, realty INcome Fund will transition into ETFs, as well as the $4.8bn International Research Enhanced Equity Fund.
According to data from Morningstar Direct the four funds bled a combined $2bn during the 12 months ended November 30.
The funds have now closed to new investors and ended charges for subscriptions and redemptions, both of which has previously been disclosed by JP Morgan.