Liquidation - JPM Indonesia Equity fund
JPMorgan Funds has decided to close its Indonesia Equity fund by way of liquidation on 27 July 2020 due to its declining fund size. In preparation for the liquidation, the fund is now closed to new subscriptions.
Impacts on
these defined fund range products
Impacts on
open architecture products, including:
- PIMS
- Choice
- Select
IMPORTANT NOTE: The liquidation date of this fund has been brought forward by JPM to 29 June 2020. Please click here for more details.
REASON FOR THE LIQUIDATION
JPM has seen significant redemptions from the fund and as at 31 March 2020 the size of the fund had reduced to $14.2 million. As JPM believe there are limited prospects for the fund’s future growth, JPM has decided it would be in the best interest of investors to liquidate the fund. JPM has now closed the fund to new investors.
ACTION TO BE TAKEN FOR OUR DEFINED FUND RANGE PLAN OWNERS
We have now closed the fund to new business and switches-in, however, existing investors can remain invested in the fund until 3pm (UK time) on Wednesday 15 July 2020. At this point we will switch their allocation from the JPM Indonesia Equity fund into the JPM ASEAN Equity A Acc USD fund (“the receiving fund”), an alternative fund available in our defined fund range. For those making regular payments and allocating any of the payment into the closing fund, the allocation will also be redirected into the receiving fund. If clients are happy to remain invested in the receiving fund they do not need to do anything.
We have written to plan owners, or their appointed investment adviser, who are impacted by the fund liquidation informing them of the action we will be taking and their option for switching to a new fund if they prefer. Servicing financial advisers will receive a sample of the letter for their information.
Samples of the plan owner and investment adviser letters can be found opposite.
| Products | Closing fund | Effective switch date | Receiving fund |
|---|---|---|---|
Regular Savings Plan, Regular Savings Plan Malaysia, Quantum, Quantum Malaysia, Oracle and Paragon | JPM Indonesia Equity A Acc USD - LU0752402288 | 15 July 2020 | Holdings will be switched into the JPM ASEAN Equity A Acc USD - LU0441851309 |
Action to be taken for our open-architecture plan owners
We have now closed the fund to subscriptions. Following the liquidation on 27 July 2020, JPM will return proceeds to shareholders within a few days. When we receive these proceeds we will allocate them to the cash account on the affected policies.
Should plan owners wish to transfer holdings to another fund ahead of the liquidation date we will require either the receipt of a dealing instruction form or, if registered for online dealing with us, a deal instruction conducted online by 9am (UK time) on Thursday 23 July 2020.