J.P. Morgan Funds to Absorb Bank One Unit

J.P. Morgan Chase & Co., the second-biggest U.S. bank, said its U.S. mutual fund group would absorb Bank One Corp.'s mutual fund unit in February, after J.P. Morgan paid $57 billion for Bank One last month.

George C.W. Gatch, 41, who has been president of the J.P. Morgan fund operation since 2000, will become president of Bank One's One Group Mutual Funds on Sept. 15, J.P. Morgan said in a statement. He replaces David J. Kundert, president and chief executive of Banc One Investment Advisors, who is retiring at 61.

"The integration will provide both fund families' shareholders with broader investment choices, expanded research and portfolio management resources, and a common way to buy, sell and exchange shares of all the funds," Gatch said.

The combination will need the approval of fund shareholders in January.

Both fund families are part of J.P. Morgan Fleming Asset Management, which has more than $700 billion in assets under management and more than 450 money managers in 39 offices around the world.

From Bloomberg News