RL360 Fund Merger - JPM Global Total Return

Generic Links

Welcome to RL360's

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Fund merger - JPM Global Total Return

On 25 October 2013 the JPM Global Total Return Fund merged into the JPM Global Capital Appreciation Fund.

Impacts on
these products

We have received late notification that on 25 October 2013 JPMorgan Investment Funds merged their JPM Global Total Return Fund (the ‘merging’ fund) into the JPM Global Capital Appreciation Fund (the ‘receiving’ fund). 


Why did JPMorgan want to merge the funds? 

JPMorgan have stated that as the JPM Global Total Return Fund has experienced weak performance they did not believe its equity focused approach to total return investing would attract significant market interest. As a result, they believed there were limited prospects of future asset growth in the strategy. 


In addition, the merger aims to provide JPMorgan with a simplified product range for shareholders that allows for more efficient use of fund management, operational and administrative resources by eliminating overlapping investment strategies. 


JPMorgan believe that the merger will give investors the opportunity to invest in a fund that has historically experienced superior performance and has the prospect of stronger growth in assets in the future. 


What happens now? 

The merger affects our guided architecture products Quantum, Oracle and Paragon, which list the EUR share class, and the fund has now been formally removed from the products. The receiving JPM Global Capial Appreciation Fund has been added with immediate effect. 


Policyholders invested in the EUR share class of the merging fund have automatically had their holding transferred into the JPM Global Capital Appreciation Fund EUR share class. Regular premiums have also been redirected. 


Affected policyholders have been written to. Sample letters and the notification from JPMorgan can be viewed opposite.