<PAGE>
LETTER TO THE SHAREHOLDERS OF THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
April 17, 1995
Dear Shareholder:
We are pleased to report that The JPM Institutional Tax Exempt Bond Fund's
return of 2.39% outperformed the Lehman Quality Intermediate Municipal Bond
Index return of 2.19% for the six months ended February 28, 1995. We believe
that the Portfolio's professional approach to both securities selection and
duration management helped the Fund produce positive, as well as competitive
returns -- even in a rising interest rate environment.
For the period under review, the Fund's net asset value declined from $9.75 per
share to end at $9.73, after paying approximately $0.25 per share in dividends.
The Fund's net assets stood at approximately $42 million at the end of the
reporting period, up from $16 million on August 31, 1994. The net assets of The
Tax Exempt Bond Portfolio, in which the Fund invests, totaled approximately $395
million at February 28, 1995.
MARKET REVIEW
Faced with a U.S. economy that had already reached full employment levels yet
continued to exhibit considerable growth momentum, the Federal Reserve pursued a
tight monetary policy during the period. The Federal Reserve's goals were two-
fold: to keep inflation in check and prevent the economy from overheating. In
order to help accomplish these objectives, the Federal Reserve raised its
overnight Federal Funds rate twice by a total of 1.25% between September 1994
and February 1995.
As a result, U.S. Treasury rates rose significantly for shorter-term maturities,
while increases for longer-term maturities were more subdued. As Treasury rates
later declined across maturities, the yield spread between short- and long-term
Treasuries narrowed. At the same time, rates for municipal bonds underwent a
similar rise and fall but to lesser degree, due in part to low supply.
The result was a flattening yield curve, which enabled municipal bonds to
provide investors with higher returns than equivalent-maturity Treasuries on an
after-tax basis. By the end of the six-month reporting period, yields on short-
term municipals were outperforming comparable Treasuries across the curve;
municipals also outperformed Treasuries on a total return basis.
TABLE OF CONTENTS
LETTER TO THE SHAREHOLDERS . . . . . . . 1
FUND FACTS AND HIGHLIGHTS. . . . . . . . 4
FUND PERFORMANCE . . . . . . . . . . . . 5
FINANCIAL STATEMENTS . . . . . . . . . . 7
1
<PAGE>
PORTFOLIO REVIEW
The investment process involves three key decisions, which are all expected to
contribute to Fund returns: duration management, sector allocation, and
security selection.
DURATION MANAGEMENT. Duration is the measure of a fund's sensitivity to
interest rate changes, which takes into account the average maturity of the
bonds in the Portfolio. If increases in interest rates are expected in the
months ahead, a duration that is short of its neutral position relative to the
benchmark may be implemented as a defensive measure. As interest rates rise,
short relative maturities will allow for reinvestment at more attractive rates.
If interest rates are expected to decline, however, the Portfolio may pursue a
more aggressive duration strategy to help "lock in" the more attractive yields
usually associated with longer-term debt securities.
The Portfolio began the reporting period with a duration of approximately 4.55
years, 8/10ths of a year short of its neutral position relative to the Lehman
Quality Intermediate Bond Index. While the Federal Reserve continued its
tightening program, we extended the Portfolio's duration to neutral after our
analysis indicted that rates for longer-term municipals were likely to remain
stable, having already absorbed most of the interest rate increases.
The Portfolio pursued a "barbell" structure during the period. This
overweighing of short- and long-term securities should enable the Fund to
perform well if the yield curve flattens. We have also maintained the
Portfolio's high credit quality and neutral sector allocations relative to its
benchmark.
SECTOR ALLOCATION. We continue to diversify the Portfolio across all municipal
sectors during the period. We have also added slightly to our per-refunded bond
exposure, due to an expected diminishment in pre-refunded supply. Given our
projection that municipal bonds would continue to outperform Treasury securities
for the balance of 1995 because of low supply, we maintained a 100% exposure to
municipals. Our analysis indicates that municipals should offer investors
higher after-tax yields and returns than their Treasury counterparts.
SECURITY SELECTION. A key aim of the Portfolio throughout this period was to
purchase municipals whenever backups in yields led to favorable pricings. Since
we also anticipated a continued flattening in the municipal yield curve, the
Portfolio also sought to maintain its barbell structure by investing in
municipals of both short and long maturities.
As interest rates rose, we added to our longer-term municipal holdings (15-year
maturities) and reduced our intermediate exposure (7- to 10-year maturities).
In addition, we continue to sell bonds that are valued close to par or face
value and bought premium coupon bonds, which offer higher yields than par bonds
with similar risk characteristics. The objective of these transactions, along
with our focus on higher-quality issues, was to help improve the Portfolio's
ability to retain value if interest rates rose.
2
<PAGE>
INVESTMENT OUTLOOK
Looking ahead, we believe that the Federal Reserve is likely to raise rates
during 1995 in order to ward off an increase in inflation to well beyond 4% in
1996. We also believe that this increase will slow economic growth
significantly in early 1996. While higher inflation over the course of 1995
could lead to higher long-term rates, the additional Fed tightening would also
serve to reassure markets that inflation will be contained. We therefore
continue to believe that short rates will increase while long rates will become
more stable.
Turning to our municipal forecast for the rest of 1995, we anticipate that
supply levels will remain comparable to those seen in 1994, while redemptions
from municipal bond funds should be lower due to more stable interest rates.
Given such an outlook, we believe that municipals will outperform Treasuries in
the months ahead. We therefore plan to pursue a strategy of 100% investment in
municipals and our current barbell strategy in order to capitalize on a
projected flattening of the municipal yield curve.
As always, we welcome your comments or questions. Please call J.P. Morgan Funds
Services toll free at (800) 766-7722.
Sincerely,
/S/ EVELYN E. GUERNSEY
Evelyn E. Guernsey
J.P. Morgan Funds Services
3
<PAGE>
FUND FACTS
INVESTMENT OBJECTIVE
The JPM Institutional Tax Exempt Bond Fund seeks to provide a high level of
current income that is exempt from federal income tax consistent with moderate
risk of capital and maintenance of liquidity. It is designed for investors who
seek tax exempt yields greater than those generally available from a portfolio
of short-term tax-exempt obligations and who are willing to incur the greater
price fluctuation of longer-term instruments.
- - ---------------------------------------------
INCEPTION DATE
7/12/93
- - ---------------------------------------------
NET ASSETS AS OF 2/28/95
$42,019,310
- - ---------------------------------------------
DIVIDEND PAYABLE DATES
MONTHLY
- - ---------------------------------------------
CAPITAL GAIN PAYABLE DATES (IF APPLICABLE)
12/18/95
EXPENSE RATIO
The Fund's current annual expense ratio of 0.50% covers shareholders' expenses
for custody, tax reporting, investment advisory and shareholder services, after
reimbursement. The Fund is no-load and does not charge any sales, redemption,
or exchange fees. There are no additional charges for buying, selling, or
safekeeping Fund shares, or for wiring dividend or redemption proceeds from the
Fund.
FUND HIGHLIGHTS
ALL DATA AS OF FEBRUARY 28, 1995
PORTFOLIO ALLOCATION
(PERCENTAGE OF TOTAL INVESTMENTS)
Pie chart depicting the allocation of the Fund's investment securities held at
February 28, 1995 by investment categories. The pie is broken in pieces
representing investment categories in the following percentages:
<TABLE>
<CAPTION>
INVESTMENT CATEGORY PERCENTAGE
<S> <C>
Insured 29.0%
Revenue 25.6%
Pre-refunded 23.3%
General obligations 21.6%
Private placements 0.5%
</TABLE>
30-DAY SEC YIELD
5.15%
DURATION
5.4 YEARS
4
<PAGE>
FUND PERFORMANCE
EXAMINING PERFORMANCE
There are several ways to evaluate a mutual fund's historical performance
record. One approach is to look at the growth of a hypothetical investment of
$10,000. The chart at right shows that $10,000 invested at the inception of the
Fund's predecessor fund would have grown to $22,078 by February 28, 1995.
Another way to look at performance is to review a fund's average annual total
return. This figure takes the fund's actual (or cumulative) return and shows
you what would have happened if the fund had achieved that return by performing
at a constant rate each year. Average annual total returns represent the
average yearly change of a fund's value over various time periods, typically 1,
5 or 10 years (or since inception). Total returns for periods of less than one
year provide a picture of how a fund has performed over the short term.
GROWTH OF $10,000 SINCE INCEPTION*
OCTOBER 3, 1984 - FEBRUARY 28, 1995
Line graph with two axes: the X-axis represents years of operations; the
Y-axis represents dollar value. The graph plots two lines: the first line
represents the growth of a ten thousand dollar investment in the Fund from
October 3, 1984 (inception) to February 28, 1995; the second line represents
the growth of a ten thousand dollar investment in a portfolio of securities
reflecting the composition of the Lehman Brothers Quality Intermediate
Municipal Bond Index for the same time period. The graph points are as
follows:
<TABLE>
<CAPTION>
Year Fund Lehman
<S> <C> <C>
0 $ 10,000 $ 10,000
1 11,034 11,454
2 12,805 13,619
3 13,244 14,421
4 13,991 15,027
5 15,126 16,254
6 15,980 17,327
7 17,686 19,245
8 19,360 21,277
9 21,273 23,588
10 21,562 23,928
11 22,078 24,452
</TABLE>
PERFORMANCE
<TABLE>
<CAPTION>
TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
---------------------- -------------------------------------------------
THREE YEAR ONE THREE FIVE TEN
AS OF FEBRUARY 28, 1995 MONTHS TO DATE YEAR YEARS* YEARS* YEARS*
- - ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
The JPM Institutional Tax Exempt Bond Fund 5.87% 4.18% 2.71% 6.20% 7.12% 8.05%
Lehman Quality Intermediate Municipal Index 5.49% 4.08% 2.36% 6.59% 7.68% 8.65%
AS OF DECEMBER 31, 1994
- - ---------------------------------------------------------------------------------------------------------------------------------
The JPM Institutional Tax Exempt Bond Fund -0.81% -2.50% -2.50% 4.71% 6.36% 7.65%
Lehman Quality Intermediate Municipal Index -0.93% -2.74% -2.74% 5.24% 6.94% 8.44%
<FN>
* Reflects performance of The Pierpont Tax Exempt Bond Fund, the predecessor
entity to The Tax Exempt Bond Portfolio, from October 3, 1984 through
December 31, 1993 (commencement of shareholder activity).
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. FUND RETURNS ASSUME THE
REINVESTMENT OF DISTRIBUTIONS AND REFLECT REIMBURSEMENT OF CERTAIN FUND AND
PORTFOLIO EXPENSES AS DESCRIBED IN THE PROSPECTUS. THE LEHMAN QUALITY
INTERMEDIATE MUNICIPAL BOND INDEX IS AN INDEX CREATED BY LEHMAN BROTHERS OF HIGH
QUALITY MUNICIPAL BONDS RATED A OR BETTER WITH INTERMEDIATE MATURITIES
(APPROXIMATELY 7 YEARS).
</TABLE>
5
<PAGE>
MORGAN GUARANTY TRUST COMPANY OF NEW YORK ("MORGAN") SERVES AS PORTFOLIO
INVESTMENT ADVISOR AND MAKES THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND (THE
"FUND") AVAILABLE SOLELY IN ITS CAPACITY AS SHAREHOLDER SERVICING AGENT FOR
CUSTOMERS. THE FUND'S DISTRIBUTOR IS SIGNATURE BROKER-DEALER SERVICES, INC.
INVESTMENTS IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, MORGAN OR ANY OTHER BANK. SHARES OF THE FUND ARE NOT FEDERALLY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD,
OR ANY OTHER GOVERNMENTAL AGENCY. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND CAN FLUCTUATE, SO AN INVESTOR'S SHARES WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Performance data quoted herein represent past performance. Please remember that
past performance is not a guarantee of future performance. Fund returns are net
of fees and assume the reinvestment of Fund distributions. The Fund invests all
of its investable assets in The Tax Exempt Bond Portfolio (the "Portfolio"), a
separately registered investment company, which is not available to the public
but only to other collective investment vehicles such as the Fund. Consistent
with applicable regulatory guidance, performance for the Fund prior to
December 31, 1993 (commencement of shareholder activity), reflects the
performance of the predecessor entity to the Portfolio, which had a
substantially similar investment objective and restrictions as the Portfolio.
The performance for such period reflects deduction of the charges and expenses
of The Pierpont Tax Exempt Bond Fund, which were higher than the estimated
charges and expenses for the Fund, after waiver.
MORE COMPLETE INFORMATION ABOUT THE FUND, INCLUDING MANAGEMENT FEES AND OTHER
EXPENSES, IS PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN AN ADDITIONAL COPY OF THE PROSPECTUS BY CALLING
(800) 766-7722.
6
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in the Tax Exempt Bond Portfolio ("Portfolio") at $ 42,066,197
value
Receivable for Expense Reimbursement (Note 2b) 43,963
Deferred Organization Expense (Note 1d) 32,658
Prepaid Expenses 126
-------------
Total Assets 42,142,944
-------------
LIABILITIES
Dividend Payable (Note 1c) 82,306
Shareholder Servicing Fee Payable (Note 2c) 9,410
Administration Fee Payable (Note 2a) 800
Fund Services Fee Payable (Note 2d) 418
Accrued Expenses 30,700
-------------
Total Liabilities 123,634
-------------
NET ASSETS
Applicable to 4,318,572 Shares of Beneficial Interest $ 42,019,310
Outstanding
(par value $0.001)
-------------
-------------
Net Asset Value, Offering and Redemption Price Per Share $9.73
-------------
-------------
ANALYSIS OF NET ASSETS
Paid-in Capital $ 41,744,102
Accumulated Net Realized Loss on Investment (229,876)
Net Unrealized Appreciation of Investment 505,084
-------------
Net Assets $ 42,019,310
-------------
-------------
</TABLE>
See Accompanying Notes.
7
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO (NOTE
1B)
$ 777,556
Allocated Interest Income
(57,211)
Allocated Portfolio Expenses
-----------
720,345
Net Investment Income Allocated from Portfolio
FUND EXPENSES
Registration Fees $ 16,376
Printing 11,756
Professional Fees 8,546
Transfer Agent Fees 8,393
Shareholder Servicing Fee (Note 2c) 6,715
Amortization of Organization Expense (Note 1d) 4,813
Administration Fee (Note 2a) 3,669
Fund Services Fee (Note 2d) 1,361
Trustees' Fees and Expenses (Note 2e) 365
Miscellaneous 348
----------
Total Expenses 62,342
Less: Reimbursement of Expenses (Note 2b) (52,408)
----------
9,934
NET FUND EXPENSES
-----------
710,411
NET INVESTMENT INCOME
(165,107)
NET REALIZED LOSS ON INVESTMENTS ALLOCATED FROM
PORTFOLIO
658,761
NET CHANGE IN UNREALIZED APPRECIATION OF
INVESTMENTS ALLOCATED FROM PORTFOLIO
-----------
$ 1,204,065
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
-----------
-----------
</TABLE>
See Accompanying Notes.
8
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE FISCAL
FEBRUARY 28, 1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
------------------ ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 710,411 $ 297,993
Net Realized Loss on Investments Allocated from Portfolio (165,107) (83,505)
Net Change in Unrealized Appreciation of Investments Allocated from
Portfolio 658,761 (153,679)
------------------ ---------------
Net Increase in Net Assets Resulting from Operations 1,204,065 60,809
------------------ ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (710,411) (297,993)
------------------ ---------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (NOTE 3)
Proceeds from Shares of Beneficial Interest Sold 33,086,111 18,838,099
Reinvestment of Dividends 617,544 293,542
Cost of Shares of Beneficial Interest Redeemed (8,592,608) (2,480,050)
------------------ ---------------
Net Increase from Transactions in Shares of Beneficial Interest 25,111,047 16,651,591
------------------ ---------------
Total Increase in Net Assets 25,604,701 16,414,407
NET ASSETS
Beginning of Period 16,414,609 202
------------------ ---------------
End of Period $ 42,019,310 $ 16,414,609
------------------ ---------------
------------------ ---------------
</TABLE>
See Accompanying Notes.
9
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Selected Data for a share outstanding throughout each period are as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE JULY 12, 1993
SIX MONTHS ENDED FOR THE FISCAL (COMMENCEMENT OF
FEBRUARY 28, 1995 YEAR ENDED OPERATIONS) THROUGH
(UNAUDITED) AUGUST 31, 1994 AUGUST 31, 1993
------------------ --------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.75 $ 10.07 $ 10.00
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.24 0.48 0.06
Net Realized and Unrealized Gain (Loss) on Investments (0.02) (0.32) 0.07
------- ------- ------
Total from Investment Operations 0.22 0.16 0.13
------- ------- ------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.24) (0.48) (0.06)
------- ------- ------
Total Distributions to Shareholders (0.24) (0.48) (0.06)
------- ------- ------
NET ASSET VALUE, END OF PERIOD $ 9.73 $ 9.75 $ 10.07
------- ------- ------
------- ------- ------
Total Return 2.39%(a) 1.61% 1.39%(a)
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (in thousands) $ 42,019 $ 16,415 -*
Ratios to Average Net Assets:
Expenses 0.50%(b) 0.50% 0.00%(b)
Net Investment Income 5.29%(b) 4.70% 3.56%(b)
Decrease Reflected in above Expense Ratio due to
Expense Reimbursements 0.39%(b) 1.48% 2.50%(b)
</TABLE>
- - ------------------------
(a) Not Annualized
(b) Annualized
* Net Assets at August 31, 1993 were $202.
See Accompanying Notes.
10
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Institutional Tax Exempt Bond Fund (the "Fund") is a separate series of
The JPM Instititional Funds, a Massachusetts business trust (the "Trust"). The
Trust is registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company. The Fund commenced
operations on July 12, 1993.
The Fund invests all of its investable assets in The Tax Exempt Bond Portfolio
(the "Portfolio"), a diversified open-end management investment company having
the same investment objectives as the Fund. The value of such investment
reflects the Fund's proportionate interest in the net assets of the Portfolio
(11% at February 28, 1995). The performance of the Fund is directly affected by
the performance of the Portfolio. The financial statements of the Portfolio,
including the schedule of investments, are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements.
The following is a summary of the significant accounting policies of the Fund:
a)Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report.
b)The Fund records its share of net investment income, realized and
unrealized gain and loss and adjusts its investment in the Portfolio each
day. All the net investment income and realized and unrealized gain and
loss of the Portfolio is allocated pro rata among the Fund and other
investors in the Portfolio at the time of such determination.
c)Substantially all the Fund's net investment income is declared as
dividends daily and paid monthly. Distributions to shareholders of net
realized capital gains, if any, are declared and paid annually.
d)The Fund incurred organization expenses in the amount of $48,567. These
costs were deferred and are being amortized by the Fund on a straight line
basis over a five year period from the commencement of operations.
e)Each series of the Trust is treated as a separate entity for federal
income tax purposes. The Fund intends to comply with the provisions of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its income,
including net realized capital gains, if any, within the prescribed time
periods. Accordingly, no provision for federal income or excise tax is
necessary.
f)Expenses incurred by the Trust with respect to any two or more funds in
the Trust are allocated in proportion to the net assets of each fund in
the Trust, except where allocations of direct expenses to each fund can
otherwise be made fairly. Expenses directly attributable to a fund are
charged to that fund.
g)The Fund has adopted Statement of Position 93-2 Determination, Disclosure,
and Financial Statement Presentation of Income, Capital Gain, and Return
of Capital Distributions by Investment Companies. Accordingly, permanent
book and tax basis differences relating to shareholder distributions are
reclassified to paid-in capital.
11
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
h)The Fund elected for Federal income tax purposes to treat approximately
$64,769 of net capital losses that arose after October 31, 1993
("post-October losses") within the taxable year as if arising on the first
business day of the Funds taxable year.
2. TRANSACTIONS WITH AFFILIATES
a)The Trust retains Signature Broker-Dealer Services, Inc. ("Signature") to
serve as Administrator and Distributor. Signature provides administrative
services necessary for the operations of the Fund, furnishes office space
and facilities required for conducting the business of the Fund and pays
the compensation of the Fund's officers affiliated with Signature. The
agreement provides for a fee to be paid to Signature at an annual rate
determined by the following schedule: 0.04% of the first $1 billion of the
aggregate average daily net assets of the Trust, as well as the net assets
of two other affiliated fund families for which Signature acts as
administrator, 0.032% of the next $2 billion of such net assets, 0.024% of
the next $2 billion of such net assets, and 0.016% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied
daily to the net assets of the Fund. For the six months ended February 28,
1995, Signature's fee for these services amounted to $3,669.
b)The Trust, on behalf of the Fund, has a Financial and Fund Accounting
Services Agreement ("Services Agreement") with Morgan Guaranty Trust
Company of New York ("Morgan") under which Morgan receives a fee, based on
the percentages described below, for overseeing certain aspects of the
administration and operation of the Fund. The Services Agreement is also
designed to provide an expense limit for certain expenses of the Fund. If
total expenses of the Fund, excluding the shareholder servicing fee, the
fund services fee, and amortization of organization expenses exceed the
expense limit of 0.05% of the Fund's average daily net assets, Morgan will
reimburse the Fund for the excess expense amount and receive no fee.
Should such expenses be less than the expense limit, Morgan's fee would be
limited to the difference between such expenses and the fee calculated
under the Services Agreement. For the six months ended February 28, 1995,
Morgan has agreed to reimburse the Fund $42,739 for excess expenses. In
addition to the expenses that Morgan assumes under the Services Agreement,
Morgan has agreed to reimburse the Fund to the extent necessary to
maintain the total operating expenses of the Fund, including the expenses
allocated to the Fund from the Portfolio, at no more than 0.50% of the
average daily net assets of the Fund through at least August 31, 1995. For
the six months ended February 28, 1995, Morgan has agreed to reimburse the
Fund $9,669 for expenses which exceeded this limit.
c)The Trust, on behalf of the Fund, has a Shareholder Servicing Agreement
with Morgan. The Agreement provides for the Fund to pay Morgan a fee for
these services which is computed daily and may be paid monthly at an
annual rate of 0.05% of the average daily net assets of the Fund. For the
six months ended February 28, 1995, the fee for these services amounted to
$6,715.
d)The Trust, on behalf of the Fund, has a Fund Services Agreement with
Pierpont Group, Inc. ("Group") to assist the Trustees in exercising their
overall supervisory responsibilities for the
12
<PAGE>
THE JPM INSTITUTIONAL TAX EXEMPT BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
Trust's affairs. The Trustees of theTrust represent all the existing
shareholders of Group. The Fund's allocated portion of Group's costs in
performing its services amounted to $1,361 for the six months ended
February 28, 1995.
e)An aggregate annual fee of $55,000 is paid to each Trustee for serving as
a Trustee of the Pierpont Funds, The JPM Institutional Funds, and their
corresponding Portfolios. The Trustees' Fees and Expenses shown in the
financial statements represents the Fund's allocated portion of the total
fees and expenses. On April 1, 1995, the aggregate annual trustee fee was
increased to $65,000. The Trustee who serves as Chairman and Chief
Executive Officer of these Funds and Portfolios also serves as Chairman of
Group and received compensation and employee benefits from Group in his
role as Group's Chairman. The allocated portion of such compensation and
benefits included in the Fund Services Fee shown in the financial
statements was $100.
3. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest of one or more series.
Transactions in shares of beneficial interest of the Fund were as follows:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED FISCAL
FEBRUARY YEAR ENDED
28, 1995 AUGUST 31,
(UNAUDITED) 1994
----------- -----------
<S> <C> <C>
Shares sold 3,475,166 1,908,685
Reinvestment of dividends and distributions 64,913 29,981
Shares redeemed (904,254) (255,939)
----------- -----------
Net Increase 2,635,825 1,682,727
----------- -----------
----------- -----------
</TABLE>
13
<PAGE>
The Tax Exempt Bond Portfolio
Semi-Annual Report February 28, 1995
(unaudited)
(The following pages should be read in conjunction
with The JPM Institutional Tax Exempt Bond Fund
Semi-Annual Financial Statements)
14
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
ALABAMA (1.1%)
$ 1,000,000 Alabama Mental Health Finance Authority
(Series 1989) MBIA Insured............
Revenue Bond Aaa/AAA 05/01/01 7.375% $ 1,092,770
2,010,000 Childersburg Industrial Development
Board, PCR, (Kimberly Clark Corp.
Project, Escrowed to Maturity)........
Revenue Bond Aa2/AA 11/15/99 7.400 2,164,790
1,000,000 Daphne Special Care Facilities Financing
Authority (Presbyterian Retirement,
Series A, Prerefunded)................
Revenue Bond NR/NR 08/15/01 (A) 7.300 1,112,850
-------------
Total Alabama 4,370,410
-------------
ALASKA (1.9%)
2,000,000 Anchorage (Refunding, Series 1991) MBIA
Insured...............................
General Obligation Aaa/AAA 07/01/02 6.600 2,118,440
1,075,000 Anchorage (Refunding, Series 1989) AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/99 (A) 7.100 1,148,337
1,000,000 Anchorage (Series 1990A) AMBAC
Insured...............................
General Obligation Aaa/AAA 02/01/00 6.850 1,064,580
3,000,000 North Slope Borough (Series 1992A) MBIA
Insured...............................
General Obligation Aaa/AAA 06/30/00 5.550 3,037,020
-------------
Total Alaska 7,368,377
-------------
ARIZONA (0.3%)
1,000,000 Maricopa County, School District #11
(Peoria Unified School Improvement,
Series 1990H, Prerefunded) MBIA
Insured...............................
General Obligation Aaa/AAA 07/01/01 (A) 7.000 1,097,770
-------------
CALIFORNIA (4.5%)
2,520,000 California Department of Water Resources
Revenue, Water Systems Service,
Refunding Series J-1 AMBAC Insured....
Revenue Bond Aa/AA 12/01/12 7.000 2,807,381
8,740,000 California Public Works Board Lease
Revenue, (State Prisons, Refunding)
AMBAC Insured.........................
Revenue Bond Aaa/AAA 12/01/05 5.250 8,591,245
1,850,000 Kaweah Delta Hospital District, Tubre
County, Series G......................
Revenue Bond NR/NR 06/01/14 6.400 1,915,046
4,000,000 Los Angeles Department of Water & Power
(California Electric Plant, Crossover
Refunded).............................
Revenue Bond Aa/AA 05/15/00 (A) 7.125 4,379,760
-------------
Total California 17,693,432
-------------
</TABLE>
See Accompanying Notes.
15
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
CONNECTICUT (2.5%)
$ 2,000,000 Connecticut Housing Finance Authority
(Housing Mortgage Finance Program,
Series 1987B).........................
Revenue Bond A1/AA 09/01/07 4.750% $ 2,135,660
2,815,000 Connecticut (Special Tax Obligation,
Transportation Infrastructure, Series
1991A)................................
Revenue Bond A1/AA- 06/01/04 6.600 3,043,212
5,000,000 Connecticut (Special Tax Obligation,
Transportation Infrastructure, Series
1987A)................................
Revenue Bond Aa/AA 11/15/97 8.100 4,834,200
-------------
Total Connecticut 10,013,072
-------------
DENVER (0.4%)
1,515,000 Denver Colorado City & County Airport
(Stapleton International Airport
Management, Escrowed to Maturity).....
Revenue Bond Aaa/AAA 12/01/95 10.000 1,580,175
-------------
DISTRICT OF COLUMBIA (3.5%)
3,000,000 District of Columbia (Refunding, Series
A) MBIA Insured.......................
General Obligation Aaa/AAA 06/01/07 6.000 2,989,350
7,500,000 District of Columbia (Refunding, Series
C) FGIC Insured.......................
General Obligation Aaa/AAA 12/01/03 5.250 7,174,425
2,600,000 District of Columbia (Series B) MBIA
Insured...............................
General Obligation Aaa/AAA 06/01/02 6.000 2,620,982
1,000,000 Washington, D.C. Transportation
Authority (Refunding, Series 1993)
FGIC Insured..........................
Revenue Bond Aaa/AAA 07/01/07 6.000 1,037,010
-------------
Total District of Columbia 13,821,767
-------------
FLORIDA (1.1%)
1,535,000 Florida Board of Education (Capital
Outlay, Series 1986C, Escrowed to
Maturity).............................
General Obligation Aaa/AA 06/01/96 (A) 7.000 1,679,152
465,000 Florida Board of Education (Capital
Outlay, Full Faith and Credit, Series
1986C)................................
General Obligation Aa/AA 06/01/96 (A) 7.000 483,619
2,000,000 Volusia County, School District
(Refunding, Series 1991) FGIC
Insured...............................
General Obligation Aaa/AAA 08/01/02 6.100 2,118,420
-------------
Total Florida 4,281,191
-------------
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
GEORGIA (4.0%)
$ 2,630,000 Fulton County Georgia School District
(Refunding)...........................
General Obligation Aa/AA 05/01/14 6.375% $ 2,778,227
1,000,000 Georgia Municipal Electric Power
Authority (Series D)..................
General Obligation A/A+ 01/01/06 6.000 1,011,020
1,155,000 Georgia Residential Finance Authority
(Single Family Insured Mortgages,
1986A) FHA Insured....................
Revenue Bond Aa/AA+ 12/01/98 6.600 1,212,438
3,000,000 Georgia (Series B)......................
General Obligation Aaa/AA+ 03/01/10 6.300 3,183,030
2,270,000 Georgia (Series D)......................
General Obligation Aaa/AA+ 08/01/06 6.800 2,554,749
2,000,000 Georgia (Series E)......................
General Obligation Aaa/AA+ 12/01/05 6.750 2,233,520
2,500,000 Gwinnett County Georgia School
District..............................
General Obligation Aa1/AA 02/01/08 6.400 2,694,025
-------------
Total Georgia 15,667,009
-------------
HAWAII (1.0%)
2,000,000 Hawaii..................................
General Obligation Aa/AA 10/01/12 6.000 2,025,940
2,000,000 Honolulu (City & County Refunding and
Improvement, Series B)................
General Obligation Aa/AA 10/01/11 5.500 1,924,120
-------------
Total Hawaii 3,950,060
-------------
ILLINOIS (7.6%)
1,500,000 Chicago O'Hare International Airport
(Refunding, Series C-1) MBIA
Insured...............................
Revenue Bond Aaa/AAA 01/01/09 5.750 1,489,950
3,775,000 Cook County (Illinois Community College,
District 508, Series C) MBIA
Insured...............................
General Obligation Aaa/AAA 12/01/95 6.900 3,837,174
3,280,000 Cook County (Refunding, Series C) FGIC
Insured...............................
General Obligation Aaa/AAA 11/15/04 5.800 3,343,074
2,500,000 Cook County (Series 1991) AMBAC
Insured...............................
General Obligation Aaa/AAA 11/01/98 6.100 2,585,975
1,375,000 Du Page County Illinois (Refunding,
Series C-1, Prerefunded)..............
Revenue Bond Aaa/AAA 01/01/02 (A) 6.550 1,498,283
1,640,000 Illinois (Building Sales Tax Revenue,
Series 1991O, Prerefunded)............
Revenue Bond A1/AAA 06/01/97 (A) 7.500 1,764,460
2,000,000 Illinois (Refunding, Series 1987).......
General Obligation A1/AA- 04/01/97 (A) 6.500 2,075,380
3,350,000 Illinois Sales Tax Revenue (Series R)...
Revenue Bond A1/AAA 06/15/01 4.600 3,155,332
2,000,000 Illinois (Series 1986)..................
General Obligation A1/AA- 12/01/96 (A) 6.250 2,063,340
950,000 Kendall Kane & Will Counties Community
Unit School District #308, FGIC
Insured...............................
General Obligation Aaa/AAA 03/01/99 6.200 984,314
2,500,000 Metropolitan Pier & Exposition Authority
FGIC Insured..........................
General Obligation A/A+ 06/15/06 8.500 3,072,150
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,810,000 Regional Transportation Authority
Illinois FGIC Insured.................
General Obligation Aaa/AAA 06/01/07 7.750% $ 3,333,363
1,000,000 University of Illinois (Auxiliary
Facilities, Series 1992N, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 10/01/01 6.000 1,043,540
-------------
Total Illinois 30,246,335
-------------
INDIANA (1.9%)
4,175,000 Indiana Bond Bank Common School Fund,
AMBAC Insured.........................
Revenue Bond Aaa/AAA 02/01/97 4.100 4,084,277
3,915,000 Indiana Transportation Finance Authority
(Highway Revenue Refunding, Series A)
AMBAC Insured.........................
Revenue Bond Aaa/AAA 06/01/09 5.250 3,693,137
-------------
Total Indiana 7,777,414
-------------
KENTUCKY (1.2%)
4,400,000 Kentucky Turnpike Authority, (Series A,
Escrowed to Maturity).................
Revenue Bond Aaa/AAA 07/01/02 7.100 4,630,252
-------------
LOUISIANA (0.7%)
2,900,000 Louisiana (Series A)....................
General Obligation Baa1/A 02/01/96 5.500 2,915,892
-------------
MARYLAND (2.4%)
1,000,000 Maryland Department of Transportation,
(Series 1990, Prerefunded)............
Revenue Bond Aaa/AAA 08/15/99 (A) 6.700 1,083,280
5,000,000 Maryland (1st Series)...................
General Obligation Aaa/AAA 07/01/00 6.500 5,328,050
3,000,000 Maryland (3rd Series)...................
General Obligation Aaa/AAA 07/15/01 (A) 6.400 3,203,940
-------------
Total Maryland 9,615,270
-------------
MASSACHUSETTS (5.0%)
4,950,000 Massachusetts Bay Transportation
Authority (General Transportation
System, Refunding, Series A)..........
Revenue Bond A1/A+ 03/01/08 7.000 5,520,884
6,500,000 Massachusetts (Refunding, Series B).....
General Obligation A1/A+ 11/01/01 5.000 6,401,720
5,000,000 Massachusetts (Refunding, Series B).....
General Obligation A1/A+ 11/01/06 5.400 4,918,900
1,495,000 Massachusetts State College Building
Authority.............................
Revenue Bond A1/A+ 05/01/11 7.500 1,736,786
1,060,000 Wareham School Project Loan Bonds, AMBAC
Insured...............................
General Obligation Aaa/AAA 01/15/03 6.800 1,156,979
-------------
Total Massachusetts 19,735,269
-------------
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
MINNESOTA (2.0%)
$ 1,380,000 Metropolitan Council Minnesota
(Minneapolis-St. Paul Metropolitan
Area, Refunding, Series B, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 02/01/99 4.500% $ 1,348,426
5,685,000 Western Minnesota Municipal Power Agency
(Series 1983A, Prerefunded)...........
Revenue Bond Aaa/AAA 01/01/99 (A) 10.125 6,556,511
-------------
Total Minnesota 7,904,937
-------------
MISSOURI (1.8%)
2,500,000 Missouri Higher Education Loan Authority
(Series 1992A)........................
Revenue Bond Aa/NR 02/15/96 4.875 2,495,375
4,000,000 St. Louis County Regional Convention
(Series B, Prerefunded)...............
Revenue Bond Aaa/AAA 08/15/03 (A) 7.000 4,458,840
-------------
Total Missouri 6,954,215
-------------
NEBRASKA (1.0%)
4,000,000 Nebraska Public Power District (Nuclear
Facilities, Refunding)................
Revenue Bond A1/A+ 07/01/00 5.200 3,973,960
-------------
NEVADA (4.7%)
500,000 Carson City School District, (Series
1990, Prerefunded) FGIC Insured.......
General Obligation Aaa/AAA 04/01/00 (A) 6.750 544,520
3,000,000 Clark County Nevada Passenger Facilities
(Las Vegas Mc.Carran International
Airport, Series A) AMBAC Insured......
General Obligation Aaa/AAA 07/01/08 6.250 3,138,120
8,000,000 Clark County Nevada School District
(Series A)............................
General Obligation Aaa/AAA 06/01/11 7.000 8,955,760
1,280,000 Las Vegas (Clark County Library
District, Refunding, Series B) FGIC
Insured...............................
General Obligation Aaa/AAA 08/01/01 (A) 6.700 1,379,046
1,685,000 Las Vegas (Clark County Library
District, Series 1991A, Prerefunded)
FGIC Insured..........................
General Obligation Aaa/AAA 06/01/01 (A) 6.600 1,824,501
1,200,000 Las Vegas (Clark County Library
District, Series 1991A, Prerefunded)
FGIC Insured..........................
General Obligation Aaa/AAA 06/01/01 (A) 6.700 1,305,684
1,330,000 Nevada Prison Facilities, (Series 1990A,
Prerefunded)..........................
General Obligation NR/AA 08/01/00 (A) 7.000 1,467,934
-------------
Total Nevada 18,615,565
-------------
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
NEW HAMPSHIRE (0.5%)
$ 1,720,000 New Hampshire (Series 1991A)............
General Obligation Aa/AA 06/15/01 (A) 6.600% $ 1,864,893
-------------
NEW JERSEY (3.8%)
6,200,000 New Jersey Economic Development
Authority (Market Transition
Facilities, Series A) MBIA Insured....
Revenue Bond Aaa/AAA 07/01/00 5.125 6,180,966
7,000,000 New Jersey Economic Development
Authority (Market Transition
Facilities, Series A) MBIA Insured....
Revenue Bond Aaa/AAA 07/01/02 5.400 7,054,250
1,500,000 New Jersey Sports & Exposition Authority
(Sports Complex Refunding, Escrowed to
Maturity).............................
General Obligation Aa1/NR 01/01/00 8.100 1,689,030
-------------
Total New Jersey 14,924,246
-------------
NEW YORK (7.8%)
2,100,000 Monroe County Public Improvement AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/09 6.000 2,181,522
1,415,000 Monroe County Public Improvement, AMBAC
Insured...............................
General Obligation Aaa/AAA 06/01/10 6.000 1,463,563
1,000,000 Municipal Assistance Corp. for the City
of New York, Custodial Receipt
Certificates, Series 1987-61, MBIA
Insured...............................
Revenue Bond Aaa/AAA 07/01/97 (A) 6.875 1,052,290
2,645,000 New York City (Refunding, Series A).....
General Obligation Baa1/A- 08/01/02 5.750 2,571,813
3,500,000 New York City (Refunding, Series B).....
General Obligation Mig1/Sp1 06/30/95 4.750 3,504,865
1,465,000 New York City (Refunding, Series B).....
General Obligation Baa1/A- 06/01/01 8.000 1,604,615
2,560,000 New York City (Series E)................
General Obligation Baa1/A- 08/01/01 5.125 2,415,821
4,675,000 New York City (Series H1)...............
General Obligation Baa1/A- 08/01/01 5.500 4,513,011
1,000,000 New York Dormitory Authority, (Iona
College Series 1988) MBIA Insured.....
Revenue Bond Aaa/AAA 07/01/98 (A) 7.625 1,090,570
200,000 New York State Energy Pollution
Control...............................
Revenue Bond NR/A-1+ 03/01/95 (A) 4.100 200,000
4,050,000 Triborough Bridge & Tunnel Authority
(Series T, Prerefunded)...............
Revenue Bond Aaa/A+ 01/01/01 (A) 7.000 4,494,650
5,500,000 Triborough Bridge & Tunnel Authority
(Refunding, Series X).................
Revenue Bond Aa/A+ 01/01/12 6.625 5,958,260
-------------
Total New York 31,050,980
-------------
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
NORTH CAROLINA (0.4%)
$ 1,500,000 Durham Public Improvement...............
General Obligation Aa1/AAA 02/01/06 5.000% $ 1,461,750
-------------
OHIO (3.1%)
3,000,000 Cleveland (Ohio Waterworks Revenue,
Series E, Prerefunded)................
Revenue Bond Aaa/NR 01/01/97 (A) 7.750 3,213,840
3,675,000 Ohio Water Development Authority (Series
Safe Water II, Escrowed to
Maturity).............................
Revenue Bond Aaa/AAA 12/01/10 9.375 4,515,655
4,000,000 Summit County (Justice Facilities,
Prerefunded) AMBAC Insured............
General Obligation Aaa/AAA 12/01/97 (A) 8.000 4,396,720
-------------
Total Ohio 12,126,215
-------------
OREGON (0.0%)
100,000 Umatilla County Oregon Hospital
Facilities Authority LOC Toronto
Dominion Bank.........................
Revenue Bond VMig1/A-1+ 03/01/95 (A) 3.750 100,000
-------------
PENNSYLVANIA (1.2%)
1,175,000 Bethel Park School District, (Series
1991B, Prerefunded) AMBAC Insured.....
General Obligation Aaa/AAA 02/01/00 (A) 6.550 1,252,527
970,000 Pennsylvania Higher Education Assistance
Agency, (Student Loan Refunding,
Series 1985A) FGIC Insured............
Revenue Bond Aaa/AAA 12/01/00 6.800 1,032,390
1,000,000 Pennsylvania (Refunding and Projects,
Custodial Receipt Certificates, 1st
Series A) AMBAC Insured...............
General Obligation Aaa/AAA 01/01/01 6.600 1,066,020
1,500,000 Pennsylvania (2nd Series 1991A) MBIA
Insured...............................
General Obligation Aaa/AAA 11/01/01 (A) 6.500 1,609,245
-------------
Total Pennsylvania 4,960,182
-------------
RHODE ISLAND (2.8%)
3,785,000 Rhode Island (Series 1991B).............
General Obligation A1/AA- 05/15/00 6.000 3,890,072
2,000,000 Rhode Island (Series 1990B,
Prerefunded)..........................
General Obligation A1/AA- 10/15/99 (A) 6.700 2,168,040
5,000,000 Rhode Island State Public Buildings
Authority (Public Projects Refunding,
Series A) AMBAC Insured...............
Revenue Bond Aaa/AAA 02/01/00 4.700 4,837,600
-------------
Total Rhode Island 10,895,712
-------------
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
TENNESSEE (0.5%)
$ 2,000,000 Chattanooga Industrial Development
Board, (IDR, Gerber/Buster Brown
Manufacturing, Inc.)..................
Revenue Bond A2/NR 11/01/95 (A) 4.000% $ 1,960,280
-------------
TEXAS (13.0%)
1,500,000 Addison (Refunding Series 1991) FGIC
Insured...............................
General Obligation Aaa/AAA 09/01/00 6.250 1,543,620
1,000,000 Arlington (Series 1989) AMBAC Insured...
General Obligation Aaa/AAA 08/01/00 6.850 1,070,110
1,050,000 Austin Independent School District,
(Permanent School Fund Guarantee,
Refunding, Series 1991) PSFG
Insured...............................
General Obligation Aaa/AAA 08/01/99 6.200 1,099,833
2,000,000 Austin Water Sewer & Electric
(Refunding)...........................
General Obligation A/A- 11/15/97 13.500 2,435,140
1,500,000 Austin Utilities System Revenue (Series
6, Escrowed to Maturity)..............
Revenue Bond Aaa/AAA 10/01/01 6.500 1,611,015
1,835,000 Canyon Independent School District,
(Series 1986) MBIA Insured............
General Obligation Aaa/AAA 02/15/98 6.500 1,911,923
1,100,000 Conroe Independent School District
(Schoolhouse and Refunding) PSFG
Insured...............................
General Obligation Aaa/AAA 02/01/02 6.500 1,180,872
1,265,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1993) PSFG Insured....................
General Obligation Aaa/AAA 02/01/03 6.500 1,365,504
975,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1989, Prerefunded) MBIA Insured.......
General Obligation Aaa/AAA 02/01/99 (A) 7.100 1,043,513
25,000 Conroe Independent School District
(Schoolhouse and Refunding, Series
1989) MBIA Insured....................
General Obligation Aaa/AAA 02/01/01 7.100 26,502
1,305,000 Dallas County Tax Flood Control District
#1 (Prerefunded)......................
General Obligation Aaa/NR 04/01/08 (A) 9.250 1,723,905
1,650,000 El Paso Independent School District,
(Permanent School Fund Guarantee,
Series 1991, Prerefunded) PSFG
Insured...............................
General Obligation Aaa/NR 07/01/01 (A) 6.550 1,774,394
3,805,000 Fort Worth Independent School District
(Refunding, Series 1987)..............
General Obligation Aa/AA 02/15/98 6.000 3,910,627
1,700,000 Harris County Road Improvement Authority
(Series 1989, Prerefunded) MBIA
Insured...............................
General Obligation Aaa/AAA 11/01/99 (A) 7.000 1,837,802
</TABLE>
See Accompanying Notes.
22
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 880,000 Katy Independent School District
(Refunding, Series 1986) MBIA
Insured...............................
General Obligation Aaa/AAA 08/01/95 (A) 7.350% $ 889,768
120,000 Katy Independent School District (Series
1986, Prerefunded) MBIA Insured.......
General Obligation Aaa/AAA 08/01/95 (A) 7.350 121,571
2,000,000 Plano Independent School District
(Series 1991B, Prerefunded) FGIC
Insured...............................
General Obligation Aaa/AAA 02/15/01 (A) 6.550 2,140,020
700,000 Texas A&M University (Refunding, Series
1989).................................
Revenue Bond Aa1/AA+ 07/01/98 6.500 733,194
750,000 Texas A&M University (Series 1989,
Prerefunded)..........................
Revenue Bond Aa1/AAA 07/01/97 (A) 6.600 793,950
11,700,000 Texas National Research Laboratory
Commission (Superconductor,
Prerefunded)..........................
General Obligation Aaa/AA 04/01/00 (A) 7.125 12,903,579
1,000,000 Texas Public Finance Authority
(Refunding, Series 1991A,
Prerefunded)..........................
General Obligation NR/AA 10/01/00 (A) 6.500 1,068,800
2,175,000 Texas Public Finance Authority (Series
1990B, Prerefunded)...................
General Obligation NR/AA 10/01/99 (A) 6.800 2,331,861
2,000,000 Texas Public Finance Authority (Series
1988A, Prerefunded)...................
General Obligation NR/AA 10/01/00 (A) 6.300 2,119,360
3,000,000 Texas State Public Finance Authority
Revenue (Refunding, Series A).........
Revenue Bond A/A+ 02/01/96 3.800 2,945,760
2,500,000 University of Texas (Permanent
University Fund, Refunding, Series
1991).................................
Revenue Bond Aa1/AA+ 07/01/01 6.300 2,637,025
-------------
Total Texas 51,219,648
-------------
VIRGINIA (3.7%)
3,000,000 Richmond (Public Improvement and
Refunding, Series A)..................
General Obligation A1/AA 01/15/07 5.400 2,938,050
5,000,000 Virginia Public School Authority
(Refunding, Series 1991C).............
Revenue Bond Aa/AA 01/01/02 6.000 5,215,700
4,445,000 Virginia Public School Authority
(Refunding, Series B).................
Revenue Bond Aa/AA 01/01/00 4.500 4,274,401
2,000,000 Virginia Public School Authority,
(Series A)............................
Revenue bond Aa/AA 08/01/01 (A) 6.500 2,154,320
-------------
Total Virginia 14,582,471
-------------
WASHINGTON (9.0%)
6,355,000 King County Washington (Refunding,
Series B).............................
Revenue Bond Aa1/AA+ 01/01/01 6.700 6,799,659
</TABLE>
See Accompanying Notes.
23
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 1,555,000 North Shore School District #417, (King
& Snohomish Counties, Series 1991)
FGIC Insured..........................
General Obligation Aaa/AAA 12/01/01 (A) 6.600% $ 1,645,330
1,000,000 Pierce County School District #320,
(Sumner Washington, Custodial Receipt
Certificates, Series 1991) MBIA
Insured...............................
General Obligation Aaa/AAA 12/01/02 6.600 1,071,170
5,480,000 Seattle Municipal Light & Power (Light
and Power Revenue Refunding)..........
Revenue Bond Aa/AA 05/01/00 4.600 5,255,320
2,955,000 Seattle Municipal Sewer Revenue (Series
T, Prerefunded).......................
Revenue Bond Aaa/AA- 01/01/00 (A) 6.875 3,223,521
1,960,000 Seattle Water System Revenue
(Refunding)...........................
Revenue Bond Aa/AA 12/01/00 4.700 1,894,595
1,250,000 Snohomish County Washington School
District #2, (Everett, Custodial
Receipt Certificates, Refunding,
Series A) MBIA Insured................
General Obligation Aaa/AAA 12/01/02 6.700 1,332,463
5,265,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
A)....................................
Revenue Bond Aa/AA 07/01/01 6.300 5,433,480
2,000,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
1990A)................................
Revenue Bond Aa/AA 07/01/06 7.250 2,208,500
1,500,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
1990C)................................
Revenue Bond Aa/AA 01/01/01 (A) 7.500 1,666,665
2,000,000 Washington Public Power Supply System
(Nuclear Project #2, Refunding, Series
C) FGIC Insured.......................
Revenue Bond Aaa/AAA 07/01/01 7.000 2,154,160
1,750,000 Washington State (Series R-92A).........
General Obligation Aa/AA 09/01/01 (A) 6.300 1,855,000
1,000,000 Washington (Series 1990B)...............
General Obligation Aa/AA 08/01/02 6.750 1,066,080
-------------
Total Washington 35,605,943
-------------
WEST VIRGINIA (0.3%)
1,000,000 Berkeley County, Board of Education
(Series 1988) MBIA Insured............
General Obligation Aaa/AAA 04/01/01 7.300 1,097,450
-------------
WISCONSIN (2.8%)
1,500,000 Racine Unified School District AMBAC
Insured...............................
General Obligation Aaa/AAA 04/01/01 6.500 1,565,895
5,000,000 Wisconsin Transportation (Refunding,
Series A).............................
Revenue Bond A1/AA- 07/01/06 4.600 4,463,800
</TABLE>
See Accompanying Notes.
24
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS
AMOUNT SECURITY DESCRIPTION TYPE OF SECURITY MOODY'S/S&P MATURITY DATE RATE VALUE
- - ----------- ---------------------------------------- ------------------ ----------- ------------- -------- -------------
<C> <S> <C> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
$ 5,000,000 Wisconsin State (Series A)..............
General Obligation Aa/AA 05/01/99 5.750% $ 5,126,050
-------------
Total Wisconsin 11,155,745
-------------
WYOMING (1.3%)
3,600,000 Platte County Pollution Control (Basin
Electric Power Cooperative,
Refunding)............................
Revenue Bond A2/A 01/01/06 4.950 3,288,132
2,115,000 Platte County Pollution Control (Basin
Electric Power Cooperative,
Refunding)............................
Revenue Bond A2/A 01/01/07 5.050 1,951,275
-------------
Total Wyoming 5,239,407
-------------
TOTAL INVESTMENTS (98.8%) (COST $382,538,400)
$ 390,457,293
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%)
4,862,266
-------------
NET ASSETS (100.0%) $ 395,319,559
-------------
-------------
</TABLE>
(A) The date shown represents a mandatory/optional put date or call date, or
interest reset date.
1. Based on the cost of investments of $382,538,400 for federal income tax
purposes at February 28, 1995, the aggregate gross unrealized appreciation
and depreciation was $11,310,753, and $3,391,860, respectively, resulting
in net unrealized appreciation of investments of $7,918,893.
2. Abbreviations used in the schedule of investments are as follows: AMBAC -
Ambac Indemnity Corp., FHA - Federal Housing Authority, FGIC - Financial
Guaranty Insurance Company, IDR - Industrial Development Revenue, LOC -
Letter of Credit, MBIA - Municipal Bond Investors Assurance Corp., PCR -
Pollution Control Revenue, PSFG -- Permanent School Fund, TRAN - Tax
Revenue Anticipation Note, VRDN - Variable Rate Demand Note.
3. Crossover Refunded - Bonds for which the issuer of the bond invests the
proceeds from a subsequent bond issue in cash and/or securities which have
been deposited with a third party to cover the payments of principal and
interest at the maturity of the bond.
Escrowed to Maturity - Bonds for which cash and/or securities have been
deposited with a third party to cover the payments of principal and
interest at the maturity of the bond.
Prerefunded - Bonds for which the issuer of the bond invests the proceeds
from a subsequent bond issuance in treasury securities, whose maturity
coincides with the first call date of the first bond.
Refunding - Bonds for which the issuer has issued new bonds and canceled
the old issue.
See Accompanying Notes.
25
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $382,538,400) (Note 1a) $ 390,457,293
Interest Receivable 5,397,408
Cash 86,744
Prepaid Expenses 2,668
-------------
Total Assets 395,944,113
-------------
LIABILITIES
Financial and Fund Accounting Services Fee Payable (Note 2c) 302,018
Advisory Fee Payable (Note 2a) 184,806
Custodian Fees and Expenses Payable 101,618
Fund Services Fee Payable (Note 2d) 3,912
Administration Fee Payable (Note 2b) 2,200
Accrued Expenses 30,000
-------------
Total Liabilities 624,554
-------------
NET ASSETS
Applicable to Investors' Beneficial Interests $ 395,319,559
-------------
-------------
</TABLE>
See Accompanying Notes.
26
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B)
$ 10,883,386
Interest
EXPENSES
Advisory Fee (Note 2a) $ 573,638
Financial and Fund Accounting Services Fee (Note 91,425
2c)
Custodian Fees and Expenses 66,924
Professional Fees 31,046
Fund Services Fee (Note 2d) 20,370
Administration Fee (Note 2b) 12,498
Trustees' Fees and Expenses (Note 2e) 5,731
Miscellaneous 4,377
---------
806,009
Total Expenses
------------
10,077,377
NET INVESTMENT INCOME
(812,152)
NET REALIZED LOSS ON INVESTMENTS
(894,468)
NET CHANGE IN UNREALIZED APPRECIATION OF
INVESTMENTS
------------
$ 8,370,757
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS
------------
------------
</TABLE>
See Accompanying Notes.
27
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE
FEBRUARY 28, FISCAL YEAR
1995 ENDED AUGUST
(UNAUDITED) 31, 1994
------------- -------------
<S> <C> <C>
DECREASE IN NET ASSETS
FROM OPERATIONS
Net Investment Income $ 10,077,377 $ 21,579,695
Net Realized Gain (Loss) on Investments (812,152) 1,199,109
Net Change in Unrealized Appreciation of
Investments (894,468) (16,878,531)
------------- -------------
Net Increase in Net Assets Resulting from
Operations 8,370,757 5,900,273
------------- -------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 138,042,019 246,505,829
Withdrawals (160,706,074) (328,342,574)
------------- -------------
Net Decrease from Investors' Transactions (22,664,055) (81,836,745)
------------- -------------
Total Decrease in Net Assets (14,293,298) (75,936,472)
NET ASSETS
Beginning of Period 409,612,857 485,549,329
------------- -------------
End of Period $395,319,559 $409,612,857
------------- -------------
------------- -------------
</TABLE>
- - --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED FISCAL
FEBRUARY YEAR ENDED
28, 1995 AUGUST 31,
(UNAUDITED) 1994
---------- ----------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS
Expenses 0.42%(a) 0.41%
Net Investment Income 5.27%(a) 4.68%
Portfolio Turnover 22% 33%
<FN>
- - ------------------------
(a) Annualized
</TABLE>
See Accompanying Notes.
28
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Tax Exempt Bond Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified, open-end
management investment company which was organized as a trust under the laws of
the State of New York. The Portfolio commenced operations on July 12, 1993 and
received a contribution of certain assets and liabilities, including securities,
with a value of $466,873,082 on that date from The Pierpont Tax Exempt Bond Fund
(the "Fund") in exchange for a beneficial interest in the Portfolio. The
Declaration of Trust permits the Trustees to issue an unlimited number of
beneficial interests in the Portfolio.
The following is a summary of the significant accounting policies of the
Portfolio:
a)Portfolio securities with a maturity of 60 days or more, including
securities that are listed on an exchange or traded over the counter, are
valued using prices supplied daily by an independent pricing service or
services that (i) are based on the last sale price on a national
securities exchange, or in the absence of recorded sales, at the readily
available bid price on such exchange or at the quoted bid price in the
over-the-counter market, if such exchange or market constitutes the
broadest and most representative market for the security and (ii) in other
cases, take into account various factors affecting market value, including
yields and prices of comparable securities, indication as to value from
dealers and general market conditions. If such prices are not supplied by
the Portfolio's independent pricing services, such securities are priced
in accordance with procedures adopted by the Trustees, All portfolio
securities with a remaining maturity of less than 60 days are valued by
the amortized cost method. Because of the large number of municipal bond
issues outstanding and the varying maturity dates, coupons and risk
factors applicable to each issuer's books, no readily available market
quotations exist for most municipal securities.
b)Securities transactions are recorded on a trade date basis. Interest
income, which includes the amortization of premiums and discounts, if any,
is recorded on an accrual basis. For financial and tax reporting purposes,
realized gains and losses are determined on the basis of specific lot
identification.
c)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxed on its
share of the Portfolio's ordinary income and capital gains. It is intended
that the Portfolio's assets will be managed in such a way that an investor
in the Portfolio will be able to satisfy the requirements of Subchapter M
of the Internal Revenue Code.
29
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
a)The Portfolio has an investment advisory agreement with Morgan Guaranty
Trust Company of New York ("Morgan"). Under the terms of the investment
advisory agreement, the Portfolio pays Morgan at an annual rate of 0.30%
of the Portfolio's average daily net assets. For the six months ended
February 28, 1995, this fee amounted to $573,638.
b)The Portfolio retains Signature Broker-Dealer Services, Inc. ("Signature")
to serve as Administrator and Distributor. Signature provides
administrative services necessary for the operations of the Portfolio,
furnishes office space and facilities required for conducting the business
of the Portfolio and pays the compensation of the Portfolio's officers
affiliated with Signature. The agreement provides for a fee to be paid to
Signature at an annual rate determined by the following schedule: 0.01% of
the first $1 billion of the aggregate average daily net assets of the
Portfolio and the other portfolios subject to the Administrative Services
Agreement, 0.008% of the next $2 billion of such net assets, 0.006% of the
next $2 billion of such net assets, and 0.004% of such net assets in
excess of $5 billion. The daily equivalent of the fee rate is applied to
the daily net assets of the Portfolio. For the six months ended February
28, 1995, Signature's fee for these services amounted to $12,498.
c)The Portfolio has a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan under which Morgan receives a fee,
based on the percentages described below, for overseeing certain aspects
of the administration and operation of the Portfolio. The Services
Agreement is also designed to provide an expense limit for certain
expenses of the Portfolio. If total expenses of the Portfolio, excluding
the advisory fee, custody expenses, fund services fee, and brokerage
costs, exceed the expense limit of 0.10% of the Portfolio's average daily
net assets up to $200 million, 0.05% of the next $200 million of average
daily net assets, and 0.03% of average daily net assets thereafter, Morgan
will reimburse the Portfolio for the excess expense amount and receive no
fee. Should such expenses be less than the expense limit, Morgan's fee
would be limited to the difference between such expenses and the fee
calculated under the Services Agreement. For the six months ended February
28, 1995, this fee amounted to $91,425.
d)The Portfolio has a Fund Services Agreement with Pierpont Group, Inc.
("Group") to assist the Trustees in exercising their overall supervisory
responsibilities for the Portfolio's affairs. The Trustees of the
Portfolio are the sole shareholders of Group. The Portfolio's allocated
portion of Group's costs in performing its services amounted to $20,370
for the six months ended February 28, 1995.
e)An aggregate fee of $55,000 is paid to each Trustee for serving as a
Trustee of The Pierpont Funds, The JPM Institutional Funds, The JPM
Institutional Plus Fund and their corresponding Portfolios. The Trustees'
Fees and Expenses shown in the financial statements represents the
Portfolio's allocated portion of the total fees. On April 1, 1995, the
aggregate annual trustee fee was increased to $65,000. The Trustee who
serves as Chairman and Chief Executive Officer of these Funds and
30
<PAGE>
THE TAX EXEMPT BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
FEBRUARY 28, 1995
- - --------------------------------------------------------------------------------
Portfolios also serves as Chairman of Group and received compensation and
employee benefits from Group in his role as Group's Chairman. The
allocated portion of such compensation and benefits included in the Fund
Services Fee shown in the financial statements was $2,300.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six months
ended February 28, 1995 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------ ------------
<S> <C> <C>
$ 81,657,361 $ 87,008,516
</TABLE>
31
<PAGE>
JPM INSTITUTIONAL MONEY MARKET FUND
JPM INSTITUTIONAL TAX EXEMPT MONEY MARKET FUND
JPM INSTITUTIONAL TREASURY MONEY MARKET FUND The JPM
JPM INSTITUTIONAL SHORT TERM BOND FUND Institutional
JPM INSTITUTIONAL BOND FUND Tax Exempt
JPM INSTITUTIONAL TAX EXEMPT BOND FUND Bond Fund
JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
JPM INSTITUTIONAL INTERNATIONAL BOND FUND
JPM INSTITUTIONAL DIVERSIFIED FUND
JPM INSTITUTIONAL SELECTED US EQUITY FUND
JPM INSTITUTIONAL SMALL COMPANY FUND
JPM INSTITUTIONAL INTERNATIONAL EQUITY FUND
JPM INSTITUTIONAL EMERGING MARKETS EQUITY FUND
FOR MORE INFORMATION ON THE JPM INSTITUTIONAL SEMI-ANNUAL REPORT
FAMILY OF FUNDS, CALL J.P. MORGAN FUNDS SERVICES FEBRUARY 28, 1995
AT (800) 766-7722.
