The cost reductions, effective from today, are on the A, D and T share classes of many equity, emerging markets, fixed income and multi-asset funds.
The fixed basis points expenses are being replaced with expense caps, which will be set at the current fixed basis point rate or a lower rate based on an analysis of the actual direct expenses of the share class.
“This is a win-win for our shareholders, in that any expenses above the cap are borne by the fund management company, but any reduction in expenses below the cap passes directly to shareholders,” said Massimo Greco, head of european funds, JPMAM.
He added that the changes ensure clients will be able to participate in the benefits of increasing scale of the funds.
"Any reduction in expenses below the cap passes directly to shareholders"
JPMAM is also rationalising certain duplicative share classes, moving eligible clients into lower cost share classes. This will result in the reduction or renaming of approximately 300 share classes, helping to reduce complexity and meaning that more shareholders experience lower cost share classes, the company said.
