J.P. Morgan Asset Management Proposes Conversion of Mutual Funds to ETFs - JPMorgan Chase (NYSE:JPM)

Core Insights - J.P. Morgan Asset Management plans to convert select U.S. mutual funds to ETFs in 2026, with combined assets of approximately $4.6 billion as of October 31, 2025 [1][2][3] Group 1: Conversion Details - The proposed conversions are subject to Fund Board approval in February 2026 and are expected to enhance trading flexibility, portfolio transparency, and tax efficiency for investors [2][4] - The specific mutual funds proposed for conversion include: - JPMorgan New York Tax Free Bond Fund with $415 million AUM, conversion date June 12, 2026 - JPMorgan California Tax Free Bond Fund with $427 million AUM, conversion date June 12, 2026 - JPMorgan Preferred and Income Securities Fund with $1,727 million AUM, conversion date July 10, 2026 - JPMorgan U.S. GARP Equity Fund with $2,049 million AUM, conversion date July 10, 2026 [3] Group 2: Strategic Rationale - The conversion to ETFs is seen as a natural progression to meet evolving investor preferences, providing greater flexibility, transparency, and tax efficiency while maintaining access to active management expertise [4] - J.P. Morgan Asset Management ranks second globally in active ETF assets under management, with $231.5 billion as of September 30, 2025 [4] Group 3: Company Overview - J.P. Morgan Asset Management has $4 trillion in assets under management as of September 30, 2025, serving a diverse client base including institutions, retail investors, and high net worth individuals [5] - The firm is a leader in various financial services, including investment banking, commercial banking, and asset management, with a strong global presence [6]