Fund Merger - JPMorgan Asia Pacific ex Japan Equity Fund
On 13 September 2013 the JP Morgan Asia Pacific ex Japan Equity Fund will merge with the JPMorgan Asia Pacific ex-Japan Behavioural Finance Equity Fund.
The merged fund will be re-named the JPMorgan Funds Asia Pacific Strategic Equity Fund.
This merger was identified as part of a comprehensive, strategic review of the overall J.P. Morgan Asset Management fund range, with the aim of simplifying and improving their offering so that investors have access to a broadly diversified and innovative product range.
Why are the funds merging?
The merger was identified with the purpose of consolidating overlapping investment strategies.
The potential benefits:
The merger will provide 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.
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 JPMorgan Asia Pacific Ex Japan Equity Fund. These include costs associated with trading and transferring the JPMorgan Asia Pacific Ex Japan Equity Fund assets.
On the merger date, and during the two business days before that, you will not be able to switch your holdings in the JPMorgan Asia Pacific Ex Japan Equity Fund.
Other considerations:
As the merger date approaches, the JPMorgan Asia Pacific Ex Japan Equity Fund will gradually adjust its portfolio so that it closely matches that of the JPMorgan Asia Pacific ex-Japan Behavioural Finance Equity Fund. This may cause the JPMorgan Asia Pacific Ex Japan Equity Fund to deviate from its investment policy on a temporary basis prior to the merger.
Charges of the JPMorgan Asia Pacific ex-Japan Behavioural Finance Equity Fund will be the same or lower than JPMorgan Asia Pacific Ex Japan Equity Fund.
The JPMorgan Asia Pacific Ex Japan Equity Fund will not bear any additional legal, advisory or administrative costs associated with the merger.
Letters have been issued to affected policyholders and their servicing agents advising them of the fund merger. The fund managers notification and sample letter can be viewed opposite.