J.P. Morgan Asset Management Inc. has begun the third of its four announced mutual fund conversions as it prepares to move a $1.1 billion real estate fund into the ETF wrapper.
The JPMorgan Realty Income Fund is slated to reorganize at the close of business Friday ahead of its debut as the JPMorgan Realty Income ETF (JPRE) on the NYSE Arca on Monday with a 0.50% initial expense ratio. The fund has a waiver of 19 basis fees in place until the end of June 2025. JPRE charged 0.78% in fees as a mutual fund.
The fund will keep its strategy of actively picking REITS based on expected performance over the business cycle. The fund has posted a year-to-date loss of 5.86% versus an 8.34% loss for its benchmark, the MSCI US REIT Index. It also outperformed over the last 12 months with a 14.09% return versus an 11.58% return for the benchmark.
JPRE joins the JPMorgan Market Expansion Enhanced Equity ETF (JMEE) and the JPMorgan Inflation Managed Bond ETF (JCPI), which converted earlier this year. The $5.4 billion JPMorgan International Research Enhanced Equity Fund is the last of the four mutual funds from the issuer to convert, according to regulatory filings, and is set to convert in early June.
JPRE’s conversion brings the total amount of mutual fund assets changed over this year to $3.1 billion.
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