Fund closures - JPM Emerging Middle East Equity and JPM Emerging Europe Equity II

Background to the merger

JPMorgan has announced that it will be merging its JPMorgan Funds - Middle East Equity Fund and JPMorgan - Emerging Europe Equity II Fund  (together the “Merging Funds”) into its JPMorgan Funds - Middle East, Africa and Emerging Opportunities Fund (the “Proposed Receiving Fund”) on 14 December 2023 (the “Merger Date”). 

JPMorgan believes it would be in shareholders’ interests to merge the Merging Funds into the Proposed Receiving Fund as it has stronger growth potential. The Proposed Receiving Fund was launched in January 2023 and is currently around USD 5million in size.

Available in our defined fund range products

The Merging Funds can be found in our defined fund range products Oracle, Paragon, Quantum (including Malaysia variants), Regular Savings Plan (including Malaysia variants) and Kudos.

The Proposed Receiving Fund is not available in our Savings and Investment fund range, therefore, instead we will switch impacted plan owners into an alternative fund in our fund range just ahead of JPMorgan's redemption cut-off leading up to the merger.

Action RL360 will be taking in regard to the  JPMorgan Funds - Middle East Equity Fund (the “Merging Fund”)

We have now closed the Merging Fund to new business and switches in with immediate effect, however, existing investors can continue to invest in the Merging Fund until 7 December 2023. On 8 December 2023 (the “Switch Date”),  impacted plan owners will be switched (and regular premiums redirected,if applicable) into the Franklin Templeton - Franklin MENA Fund (the “Alternative Receiving Fund”), the share class of which will be in the same currency as plan owners current Merging Fund holdings. 

The Alternative Receiving Fund has been selected as it is similar to the Merging Fund and will continue to provide plan owners access to a fund that invests primarily in Middle Eastern companies. 

Action RL360 will be taking in regard to the  JPMorgan Funds - Emerging Europe Equity II Fund (the “Merging Fund”)

We have now closed the Merging Fund to new business and switches in with immediate effect, however, existing investors can continue to invest in the Merging Fund until 7 December 2023. On 8 December 2023 (the “Switch Date”),  impacted plan owners will be switched (and regular premiums redirected,if applicable) into the Aberdeen Standard Liquidity Fund (Lux) - Euro Fund (the “Alternative Receiving Fund”) which is a Currency/Money Market fund denominated in Euro. 

The Alternative Receiving Fund has been selected as we do not feature an alternative Emerging Europe Equity fund in the fund range that we can switch plan owners into.

Please note that as the Alternative Receiving Fund is a Currency/Money Market fund it is important for Plan Owners to be aware that it has a very different risk/reward profile to the Merging Fund, which is an Equity fund. Because it carries less risk than an Equity fund, potential growth is expected to be lower. 

For comparison details of the Merging Funds and the Alternative Receiving Fund please refer to the sample letters Opposite.

If plan owners/investment advisers are happy with our Alternative Receiving Funds for the Merging Funds, they do not need to take any action.  However, should they wish to switch to a different fund in the range, they can do so free of charge. If they would like this to happen before the Switch Date, we must receive their instructions by 5.00pm UK time on 6 December 2023.

Communications issued

Affected plan owners, or their appointed investment advisers, and servicing agents have been written to, notifying them of the fund closures, the action RL360 will be taking and their options should they wish to select an alternative receiving fund.