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Fund Merger - JPMorgan Global Balanced Fund (USD)

On the 29 November 2013 the JPMorgan Global Balanced Fund (USD) will be merged into the JPMorgan Global Balanced Fund (EUR).

Impacts on
these products

We have been informed by JPMorgan Investment Funds that they intend to merge the JPMorgan Balanced Fund (USD) into the JPMorgan Balanced Fund (EUR) on 29 November 2013.


Why are they merging the funds?

The merger was decided following a review of the funds which identified considerable overlap between the investment strategy of the USD Fund (the merging fund) and the EUR Fund (the receiving fund).


The potential benefits:

JPMorgan believes that consolidating a similar investment strategy will facilitate growth in the underlying assets. In addition, the merger aims to provide a simplified product range for investors that allows for more efficient use of fund management, operational and administrative resources by eliminating overlapping investment strategies.


The potential drawbacks:

Certain one-time expenses associated with the merger will be borne by the USD fund. These include costs associated with trading and transferring the USD fund’s assets.


Costs and expenses associated with currency hedge transactions will be borne by USD hedged share classes.


From 2 days prior to the merger, i.e. 27 November 2013, JPMorgan will cease to accept subscriptions, switches or redemption of shares in the merging fund.


Other considerations:

Investors in the USD share class will receive shares in a USD hedged share class of the receiving fund.


As the merger date approaches, the USD fund may adjust its portfolio in line with that of the receiving EUR fund, however this rebalancing will not result in a deviation from its investment policy.


Charges of the receiving EUR fund will be the same as those of the USD fund.


The USD fund will not bear any additional legal, advisory or administrative costs associated with the merger.


Performance information for the USD fund and the receiving EUR fund can be found in the relevant KIID or factsheet which is available from the document library at www.jpmorganassetmanagement.com.


Letters have been issued to affected policyholders, or their appointed investment advisers, with copies to servicing agents advising them of the fund merger. The fund managers notification and sample letters can be viewed opposite.