According to a
report, JPMorgan Asset Management, a unit of
JPMorgan Chase & Co
), plans to close nearly 9 funds from its existing range of
products in Europe. This would take the total number of fund
closures by the company to 25 in 2013.
Alongside, this US Asset Manager plans to close an additional
eight unnamed funds in the next two months. The major reason for
JPMorgan to close funds is to simplify its existing fund range.
At present, JPMorgan has the largest number of funds in Asia. It
also has 250 funds in Europe and 150 in the U.S. However, in the
past few months, JPMorgan has been cutting funds from its
existing line of products.
Earlier, JPMorgan had axed 3 funds in Jun 2013, 11 funds in Jul
and 2 funds at the beginning of August. Further, upon completion
of these fund cuts, JPMorgan plans to axe additional funds from
its existing range in Asia and U.S.
Moreover, last year, JPMorgan had closed five euro-denominated
money-market and liquidity funds. This was mainly due to the
record low interest rates globally and reduction in the supply of
debt, following Europe's sovereign debt crisis at that time. This
restricted the money-market funds managers' ability to generate
Similar to JPMorgan, in Jun 2013,
) announced its intention to close nearly 250 funds from its
existing range of products in order to focus more on portfolios
that account for a higher proportion of revenues. The company has
also closed 90 portfolios from its Australian fund range,
equaling about 50% of various portfolios that it offers to its
clients in Australia.
Due to the ongoing European debt crisis and increased regulatory
pressures on the money market fund industry, investors have been
losing large sums of money. This prompted many fund managers to
curb their portfolios from the fund range. Moreover, the
continuation of the European crisis is expected to have a
significant impact on worldwide capital markets.
JPMorgan currently carries a Zacks Rank #3 (Hold). Some better
performing banks include
) with a Zacks Rank #1 (Strong Buy) and
M&T Bank Corporation
) with a Zacks Rank #2 (Buy).
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