This story has been updated with further detail from JPMorgan.
J.P. Morgan Asset Management’s conversion of four mutual funds with a total of $7.7 billion in assets begins at market close Friday with the firm reorganizing a $1.1 billion fund for its ETF debut on Monday.
The JPMorgan Inflation Managed Bond ETF (JCPI) is scheduled to begin trading on the Cboe Global Markets on Monday. As a mutual fund trading under the ticker JIMAX, the fund generated a 4.29% return in 2021 but underperformed both the Bloomberg 1-10 Year U.S. TIPS Index and a composite benchmark including the Bloomberg U.S. Intermediate Aggregate Index.
J.P. Morgan revealed its intent to convert JIMAX and three other mutual funds last August into ETFs in the middle of this April.
In a statement, the company said it will seek to convert its JPMorgan Market Expansion Enhanced Index Fund on May 6, the JPMorgan Realty Income Fund on May 20 and the JPMorgan International Research Enhanced Equity Fund on June 10.
The conversions are the first to breach the billion-dollar AUM mark in 2022. Three funds have converted to bring a combined $55.2 million to the ETF industry this year: the Convergence Long/Short Equity ETF (CLSE), the Preferred-Plus ETF (IPPP) and the Dividend Performers ETF (IPDP). All are actively managed.
Dimensional Fund Advisors is on the calendar to convert its $8.3 billion Tax-Managed U.S. Marketwide Value Portfolio II in early May this year.