J.P. Morgan Asset Management and Lincoln Financial Group have merged their insurance trust funds to expand offerings in the variable insurance trust segment.
The deal will bring J.P. Morgan’s investment capabilities to Lincoln’s platform, helping extend the latter’s offerings of insurance, retirement and variable annuity solutions.
As part of the initiative, shareholders of four JPMorgan Insurance Trust Portfolios (Jpm VITs) need to approve a proposal to merge the JPM VITs into four corresponding and newly formed series of Lincoln Financial Variable Insurance Products Trust (LVIP Acquiring Funds).
Subject to shareholder approval of the merger, J.P. Morgan will act as the subadviser for each LVIP Acquiring Fund.
Using portfolio management teams and investment processes, it will also continue to manage the LVIP Acquiring Funds.
Lincoln Investment Advisors Corporation (LIAC) will serve as the investment adviser to each LVIP Acquiring Fund.
Lincoln Financial Group funds management head Ben Richer said: “As a leading provider of life, annuity and retirement solutions with a $90 billion funds platform, we are thrilled to have these capabilities as part of our subadvised lineup, further enhancing how we address core investor needs.
“The combination of our scale, resources and investment platform design with J.P. Morgan’s portfolio management capabilities will deliver a best-in-class offering for our clients.”
J.P. Morgan’s subadvisory business has $75bn in assets under management across variable annuity and mutual fund products.
The deal is anticipated to be concluded in May next year.