J.P. Morgan Series Trust Supplement dated October 26, 2000, to the J.P.
Morgan California Bond Fund and the J.P. Morgan Institutional California Bond
Fund Prospectuses dated September 1, 2000
The benchmark for the fund will now be the Lehman Brothers California
Competitive Intermediate Bond Index (1-17), an unmanaged index of
California general obligation and revenue bonds which measures
California tax-exempt bond market performance and reflects the universe
of securities in which the fund invests. This index replaces the Lehman
Brothers 1-16 Year Municipal Bond Index which is composed of tax-exempt
securities of various states and measures overall tax-exempt bond
market performance. Accordingly, the reference in the third paragraph
under the heading "Investment Approach-Principal Strategies" on page 1,
to the Lehman Brothers 1-16 Year Municipal Bond Index is replaced with
the Lehman Brothers California Competitive Intermediate Bond Index
(1-17).
The first bullet point regarding derivatives under the column
"Potential risks" on page 10 is hereby replaced by the following:
"Derivatives such as futures, options and swaps that are used
for hedging the portfolio or specific securities may not fully
offset the underlying positions1 and this could result in
losses to the fund that would not have otherwise occurred"
The first bullet point regarding derivatives under the column "Policies
to balance risk and reward" on page 10 is hereby replaced by the
following:
"The fund uses derivatives, such as futures, options and swaps
for hedging and for risk management (i.e., to adjust duration
or yield curve exposure); risk management may include
management of the fund's exposure relative to its benchmark;
the fund is permitted to enter into futures, options and swap
transactions, however, these transactions result in taxable
gains or losses so it is expected that this funds will utilize
them infrequently"
The following is hereby added at the end of footnote 1 on page 10:
"A swap is a privately negotiated agreement to exchange one stream of
payments for another."
The table entitled "Investments" on pages 11 and 12 is hereby amended
to show that swaps are a permitted investment for the fund.
