JP Morgan converts four OEFs to ETfs
497 1 d245107d497.htm UNDISCOVERED MANAGERS FUNDS
JPMORGAN TRUST I
J.P. Morgan Income Funds
JPMorgan Inflation Managed Bond Fund
JPMORGAN TRUST II
J.P. Morgan International Equity Funds
JPMorgan International Research Enhanced Equity Fund
J.P. Morgan U.S. Equity Funds
JPMorgan Market Expansion Enhanced Index Fund
UNDISCOVERED MANAGERS FUNDS
JPMorgan Realty Income Fund
(Class R2, Class R5 and Class R6 Shares)
Supplement dated December 1, 2021
to the Current Prospectuses, as supplemented
As previously supplemented on August 11, 2021, at meetings held on August 9, 2021, the Boards of Trustees agreed to consider in early 2022 the conversion of the following four mutual funds to newly created exchange-traded funds (the “ETFs”) (each, a “Conversion”):
•JPMorgan Inflation Managed Bond Fund
•JPMorgan International Research Enhanced Equity Fund
•JPMorgan Market Expansion Enhanced Index Fund
•JPMorgan Realty Income Fund
Each new ETF will be managed in a substantially similar manner as the current mutual funds. If approved by the Boards of Trustees, it is anticipated that the Conversions would occur in 2022.
By converting these strategies to ETFs, J.P. Morgan Investment Management Inc. (“JPMIM”), the investment adviser for the mutual funds, believes shareholders in these mutual funds could benefit from reduced costs, including lower transfer agency costs for certain classes and no Rule 12b-1 or service fees. JPMIM is communicating the proposed plans prior to formal board approval, in order to provide shareholders with ample notice of the planned Conversions and allow them time to engage with JPMIM on the implications of the proposed transactions, including the need to have a brokerage account prior to the Conversion.
Each Conversion would consist of (1) the transfer of all or substantially all of the mutual fund’s assets, subject to its liabilities, to the corresponding shell ETF for shares of the ETF; and (2) the distribution of the ETF shares to the mutual fund shareholders in complete liquidation of the mutual fund. It is anticipated that if approved by the Boards of Trustees, each Conversion will not require shareholder approval.
When the Conversions are considered, each Board of Trustees, including the Trustees not deemed to be “interested persons” of the mutual funds pursuant to Section 2(a)(19) of the Investment Company Act of 1940, as amended, will need to determine whether it is in the best interests of the target mutual fund and that the Conversion would not dilute the interests of the mutual fund’s shareholders.
The new ETFs have not commenced investment operations, and it is anticipated that each will not have shareholders prior to the Conversion. If the Conversions are approved by the Boards of Trustees, existing shareholders of each mutual fund will receive prior to the Conversion a combined information statement/prospectus describing in detail both the Conversion and the surviving ETF, and summarizing the Board’s considerations in approving the Conversion.
It is anticipated that each Conversion will qualify as a tax-free reorganization for federal income tax purposes and that shareholders will not recognize any gain or loss in connection with the Conversion, except to the extent that they receive cash in connection with the liquidation of any fractional shares received in the Conversion.
In connection with the proposed Conversions discussed herein, an information statement/prospectus that will be included in a registration statement on Form N-14 will be filed with the Securities and Exchange Commission (the “SEC”). After the registration statement is filed with the SEC, it may be amended or withdrawn and the information statement/prospectus will not be distributed to shareholders unless and until the registration statement is declared effective by the SEC. Investors are urged to read the materials and any other relevant documents when they become available because they will contain important information about the Conversions. After they are filed, free copies of the materials will be available on the SEC’s web site at www.sec.gov. These materials also will be available at www.jpmorganfunds.com and a paper copy can be obtained at no charge by calling 1-800-480-4111 .
This communication is for informational purposes only and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
PROSPECTUSES FOR FUTURE REFERENCE
J.P. MORGAN TRUST I
JPMorgan Income Funds
JPMorgan Inflation Managed Bond Fund
J.P. MORGAN TRUST II
JPMorgan International Funds
JPMorgan International Research Enhanced Equity Fund
JPMorgan U.S. Equity Funds
JPMorgan Market Expansion Enhanced Index Fund
UNDISCOVERED MANAGERS FUNDS
JPMorgan Realty Income Fund
(each, a “Fund” and together, the “Funds”)
(Class R2, Class R5 and Class R6 Shares)
Supplement dated December 1, 2021
to the current Prospectuses, as supplemented
As previously supplemented on November 23, 2021, as announced on August 11, 2021, the Boards of Trustees have agreed to consider in early 2022 the conversion of the Funds to newly created exchange-traded funds (the “ETFs”) (each, a “Conversion”). If the Conversions are approved, each new ETF will be managed in a substantially similar manner as the current Fund. In connection with the Conversions, the Board of Trustees considered and approved certain actions described below. Each of the actions will be implemented on January 18, 2022 (the “Effective Date”) only if the Boards of Trustees approve the Conversions.
On the Effective Date, the following will be added as a new section for each of the Funds except the JPMorgan International Research Enhanced Equity Fund under the heading “Investing with J.P. Morgan Funds — LIMITED OFFERING — Funds Subject to a Limited Offering — Limited Offering of Class A and Class C Shares”
Class A and C Shares (each, a “Limited Class”) are publicly offered only on a limited basis and investors are not eligible to purchase a Limited Class except as described below. Except as otherwise described below, shareholders permitted to continue to purchase shares of a Limited Class include existing shareholders of record and, if the shareholder of record is an omnibus account, beneficial owners in that account as of the effective date of the limited offering.
• Existing shareholders of each Limited Class may continue to purchase additional shares of the Limited Class in their existing Fund accounts either through J.P. Morgan Funds Services or a Financial Intermediary and may continue to reinvest dividends or capital gains distributions from shares owned in the Fund.
•Group Retirement Plans (as defined in the glossary) (and their successor, related and affiliated plans), which have a Limited Class available may continue to open accounts for new participants and can purchase additional shares in existing participant accounts.
For JPMorgan International Research Enhanced Equity Fund, the following will replace the current disclosure under “Investing with J.P. Morgan Funds — LIMITED OFFERING — Limited Offering of Certain Share Classes” on the Effective Date:
Class A Shares of the JPMorgan International Research Enhanced Equity Fund (the “Limited Class”) are publicly offered only on a limited basis and investors are not eligible to purchase the Limited Class except as described below. Except as otherwise described below, shareholders permitted to continue to purchase shares of the Limited Class include existing shareholders of record and, if the shareholder of record is an omnibus account, beneficial owners in that account as of the effective date of the limited offering...
Bulls, Bears and Pigs The Intelligent Investor - Jason Zweig WSJ
"All this puts me in mind of an old Wall Street proverb: "Bulls make money, bears make money, but pigs get slaughtered."
Versions of the saying have been circulating since
1905, according to lexicographer Barry Popik. The general idea — you can make money being optimistic, you can make money being pessimistic, but you'll be wiped out if you get too greedy — has probably been around for millennia.
My favorite modern version of the saying comes from the financier André Kostolany: "I can’t tell you how to get rich quickly. I can only tell you how to get poor quickly: by trying to get rich quickly."
It can pay to be a bull, and it can pay to be a bear. But it's always dangerous to be a pig, and there's no better time to remember that than December."
Note: One may need a WSJ subscription to read.
ARTICLE
This New ETF (SARK) is Betting Against Cathie Wood and ARK LOL. Too funny. DKNG lost almost 10% today. Sitting at $31+ change. It was the first stock I ever owned. Guess I escaped a beating getting out while still above water. Just 2 stock holdings left: RIO and WPM Both have been holding up pretty well - better than some of my funds today.
Most everything trashed today. Bonds held up.
AAII 202
1 AAII Tax Guide is in the latest issue of AAII Journal. At this time, some stimulus related tax stuff is still pending and AAII may issue a release on those changes later. AAII members can access it online. I think that nonmembers can also access it if they haven't used up their free monthly quota for AAII articles.
https://www.aaii.com/journal
This New ETF (SARK) is Betting Against Cathie Wood and ARK @hank: that stock and others have become falling knives of late. Names and symbols withheld in the interest of privacy and not damaging my ego any further. I need a trip to DollarTree to pick up some bandaids before they go up to $
1.25.
SP500 $VIX vs Nasdaq 100 $VXN Today started as an up day, but ended as a down day due to a C-
19/Omicron case found in CA in a fully vaccinated person who returned from S Africa.
An odd observation in some recent down days has been that SP500/SPY $VIX has been almost same or higher than Nasdaq
100/QQQ $VXN. This is very unusual for these 2 volatility indicators. Clearly, SP500 is a blend while Nasdaq
100 is large-cap growth heavy in techs. This is an ongoing battle between cyclicals and growth and news of the day favors one or the other.
https://stockcharts.com/h-sc/ui?s=$VIX&p=D&b=5&g=0&id=p56537685927
Schwab needs to "re authorize" Quicken access I have managed to restore several of my accounts by
1) ensuring that "Schwab" is listed as the brokerage name, not "zz-Schwab" or zzz-Schwab" on the account details window ( this is in the recommendations)
But this still would not allow me to "Activate" the accounts with the "Schwab brokerage" link, but there is another Schwab.com listed in the "add account" drop down menu
"Schwab Investor-C"
This seems to work for several of the accounts but not all
I am very discouraged by this disaster. As you mention, this is the worst snafu from Quicken in the 25 years I have been using it
Schwab needs to "re authorize" Quicken access I, too, have been unable to download my Schwab accounts. When I logged into the Quicken Support website, I found many reports of people losing their data and getting unexpected side-effects by following Quicken's advice to re-authorize! It seems that the Quicken side of this change is very unstable. I've decided to enter my transactions manually until I see some evidence on their Support site that there is a reliable fix. My Fidelity accounts don't seem to be affected; however that is one of the side-effects that I often saw: other financial transactions stopped working randomly! For your Fidelity account, you should be able to safely go to the "Edit Account" page in Quicken - then the "Online Access" settings - Deactivate the account followed by re-activating the account. I am not aware of any changes that Fidelity has made to their download process; only Schwab.
I've been using Quicken for a very long time and this is the worst software snafu I've encountered. Forcing us to manually enter transactions at the end of the year is very time-consuming and defeats the purpose of using their software.
Here is one example from the Quicken Support website. We are not alone:
https://community.quicken.com/discussion/7901922/schwab-access-messed-up
This New ETF (SARK) is Betting Against Cathie Wood and ARK +1
REMIX lost -5% today We now have a bear bar for the month of November which is also a sell signal/reversal bar.
Not saying the markets can't rally short term from here, but we are now in a bear market for the next 12 months.
I'm not buying anything.
REMIX lost -5% today
This New ETF (SARK) is Betting Against Cathie Wood and ARK Or is it silly on my part to think that this debt will have to ever be paid?
I’m not following everything there. I have no particular interest in Cathy except I thought the subject of a new innovative fund might be of interest on a forum devoted to investing - especially via
funds. DraftKings? Illustratuve of Wood’s investments.
Re: “the national debt”, it’s not as simple as “paying it all back.”
Sovereign countries are different than individuals in that they can print money and back it with something called “full faith and credit.” You and I don’t have that capacity. So as long as the country’s GDP is growing and the country remains strong in other respects (ie defense, infrastructure, research capacity) than there is no need to repay all that debt. I’ll let the economists decide and debate what a reasonable debt level is. But No. I don’t think it
all needs to be repaid.
I’ve been reading national news publications since I was
15. Goes back to Goldwater. And this horse *** from the right about “stealing from our grandchildren” has been around a long time!
REMIX lost -5% today Think we don’t have sufficient patient data to confirm the impact of Omicron on the broader population and demographic. Moderna news from Financial Times said one thing (somewhat negative) and BioNTech provided a more positive news with their vaccine. The comments in Financial Times article are well worthwhile to read.
https://ft.com/content/27def1b9-b9c8-47a5-8e06-72e432e0838fhttps://ctvnews.ca/health/coronavirus/biontech-ceo-says-vaccine-likely-to-protect-against-severe-covid-19-from-omicron-1.5687229COVID situation has elevated to the top since last Friday. Will we re-visit last spring when many countries underwent lockdown? Personally I don’t think so, with the advancement on prevention (vaccines), treatment (antibodies, antiviral drugs and steroid medication). Restrictive travel has already deployed in Europe, Asia and US and that is good. Testing of air travelers and contact tracing are being used. All these practices will slow down the virus spread while buy times for the medical community and government to response. The coordination between the countries is highly encouraging.
Learned from last spring, I will stay put and make small adjustments if necessary.
