Notification of changes to the underlying funds of various JP Morgan funds

31 March 2020

- J77 BlackRock US Flexible Equity
- M82 BlackRock World Gold
- P56 BlackRock Japan Opportunities
- P69 BlackRock Sustainable Energy
- P70 BlackRock World Mining

We have been notified by J.P. Morgan Asset Management (the “Company”) of the following changes to the pricing method of the underlying funds of the above named mirror funds. These changes have taken effect from 17 March 2020 (the “Effective Date”).

The Company have confirmed the below, which has been extracted from the website notice of the underlying funds of the above named mirror funds:

“As part of its commitment to protect the best interest of its clients, J.P. Morgan Asset Management has implemented swing pricing on the JPMorgan Funds (JPMF) and JPMorgan Investment Funds (JPMIF) umbrellas. Swing pricing aims to protect existing investors from the performance dilution effects they may suffer as a result of transactions by other investors in the fund. It is implemented in a clear and systematic fashion.

In certain situations, the Management Company may consider it to be in the interests of shareholders in a particular sub-fund to encourage the growth of assets under management. In order to attract inflows, the Management Company may suspend the swing pricing that would normally be applied under the terms of the prospectus in relation to subscriptions and allow investors to subscribe at the un-swung NAV price, until such time that the sub-fund reaches a certain size or for a specific period of time. Existing investors will remain protected as the dilution effect to the sub-fund arising from large inflows will be compensated to the sub-fund by the Management Company. The Management Company is currently not suspending the swing pricing on subscriptions for any sub-funds.

With effect from 17 March 2020 and until further notice, the Management Company has decided to reduce the respective swing thresholds for sub-funds in JPMF and JPMIF to 0% on any given Valuation Day (as defined in the prospectus) when there are net redemptions in the relevant sub-funds. In case of net subscriptions in the relevant sub-funds on any given Valuation Day, the usual swing thresholds (typically 1%) will continue to apply to sub-funds in JPMF and JPMIF.”

Should you have any questions regarding these changes, please contact International Funds & Investments.