J.P. Morgan Chase is doing away with exit fees on seven of its funds by removing class B shares for the funds, Reuters reports.
The firm did not give a reason for the change in its letter to regulators, but a spokeswoman for the company told Reuters that it essentially came down to the limited demand from investors. J.P. Morgan had sold only $1 million worth of B shares in the funds, which collectively have $1.1 billion in assets, the spokeswoman said. The firms letter also indicated that it would not be selling class C shares in four of the funds.
- The B shares have been the basis of some controversy in the fund industry, as regulators are concerned that brokers push them instead of A shares, which are sometimes more appropriate and serve as a better value to the investor.
The seven funds dropping class B shares are : JP Morgan Global 50, JP Morgan Fleming Tax Aware International Opportunities, JP Morgan Small-Cap Growth, JP Morgan Fleming Asia Equity, JP Morgan Disciplined Equity, JP Morgan Global Strategic Income and JP Morgan Global Healthcare.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.