<PAGE>
LETTER TO THE SHAREHOLDERS OF THE JPMINSTITUTIONAL NEW YORK TOTAL RETURN BOND
FUND
November 10, 1995
Dear Shareholder:
We are pleased to report that The JPM Institutional New York Total Return Bond
Fund returned 5.06% for the six months ended September 30, 1995, outperforming
the Composite Intermediate Municipal Bond Fund Average of 4.59% (please see
table on page 5).
The Fund's net asset value increased from $10.11 per share on March 31, 1995 to
$10.37 at the end of the period, after making distributions of $0.25 per share
from ordinary income. The Fund's net assets stood at $39.8 million at the end of
the reporting period, up from $20.6 million on March 31, 1995. The net assets of
The New York Total Return Bond Portfolio, in which the Fund invests, totaled
approximately $85.0 million at September 30, 1995.
MARKET REVIEW
In the beginning of the period, a much-discussed "soft landing" seemed to take
hold of the economy, driving up prices on Treasury bonds and, to a lesser
extent, on municipal bonds as well. The price rally in the municipal market was
enhanced by a decrease in new issue volume. The relative underperformance of
municipal bonds during these months reflected concerns among investors that tax
reform -- specifically a flat tax -- would reduce the value of municipals as
overall tax rates decline. As the period drew to a close, a flurry of weaker-
than-expected economic data drove yields down further across all maturities for
both municipal bonds and Treasuries.
Municipal supply remained low for the period. Redemptions of existing bond
positions have outpaced new issuance for the last two years. This trend does not
seem to be abating and has been a source of technical strength for the municipal
market. Supply of New York municipals has also been low, and they have performed
similarly to the national municipal market.
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. The duration of the Portfolio is a measure of its price
sensitivity to changes in interest rates. 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 rates
rise, short relative maturities will allow for reinvestment at more attractive
rates. If interest rates are expected to decline, how-ever, the Portfolio may
pursue a more aggressive duration strategy to help "lock in" the more attractive
yields usually associated with longer-term securities.
In early May, the Portfolio's duration was lengthened beyond the benchmark,
reflecting our view that municipal rates were likely to decline because the
economy was significantly weaker than generally perceived. In addition, our
analysis showed the municipal market had overreacted in assessing the negative
potential of tax reform on municipal security values. The Portfolio's longer
duration was maintained through the end of June, then repositioned back to
neutral following a decline in rates that changed the technical position of the
municipal market.
The Portfolio pursued a "barbell" structure throughout the period under review.
This overweighting of short- and long-term securities enabled the Fund to
perform well during the months when a bond market rally caused the yield curve
to flatten. When the yield curve re-steepened slightly, however, this structure
was not as beneficial.
SECTOR ALLOCATION. We continued to diversify the Portfolio across all municipal
sectors during the period. We have also added slightly to our pre-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 indicated that municipals should offer investors higher
after-tax yields and returns than their Treasury counterparts. We increased the
Portfolio's national municipal exposure to 27% as we anticipate an increase in
supply of New York issues, which would cause their yields to rise and prices to
decline.
SECURITY SELECTION. We maintained the Portfolio's high credit quality throughout
the period. We continued to sell bonds that are valued close to par (or face
value) and bought premium coupon bonds, which offered higher yields than par
bonds with similar risk characteristics.
2
<PAGE>
INVESTMENT OUTLOOK
The recent rally in the bond markets has dropped long-term yields back below our
estimates. The yield curve has maintained the modestly positive slope induced by
monetary easing. While interest rates now appear to fully reflect current
cyclical conditions, yields could still trend down amid renewed Japanese
purchases and/or Congressional follow-through on the resolution to reduce the
budget deficit.
In looking at the municipal market, we believe the flat tax anxieties of bond
investors to be unwarranted. A more important issue is the absolute decline in
the outstanding supply of municipal bonds, which we expect to remain low for the
next few years. Tax-exempt yield levels currently include a risk premium to
compensate for the uncertainty of future municipal valuation levels. For these
reasons, we are maintaining a neutral duration position and a 100% allotment to
tax-exempt securities. Also, we may look for opportunities to add to the
Portfolio's New York holdings as supply increases, which would raise its after-
tax yield for New York taxpayers.
As always, we welcome your comments or questions. Please call J.P. Morgan Funds
Services toll free at (800) 766-7722.
Sincerely yours,
/s/ Evelyn E. Guernsey
Evelyn E. Guernsey
J.P. Morgan Fund Services
3
<PAGE>
FUND FACTS
INVESTMENT OBJECTIVE
The JPM Institutional New York Total Return Bond Fund seeks to provide a high
after-tax total return for New York residents consistent with moderate risk of
capital. It is designed for investors subject to federal and New York State
income taxes who seek a high after-tax total return and who are willing to
receive some taxable income and capital gains to achieve that return.
- ---------------------------------------------
COMMENCEMENT OF OPERATIONS
4/11/94
- ---------------------------------------------
NET ASSETS AS OF 9/30/95
$39,821,303
- ---------------------------------------------
DIVIDEND PAYABLE DATES
MONTHLY
- ---------------------------------------------
CAPITAL GAIN PAYABLE DATES (IF APPLICABLE)
12/18/95
EXPENSE RATIO
The Fund's 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 redemption proceeds from the Fund.
FUND HIGHLIGHTS
ALL DATA AS OF SEPTEMBER 30, 1995
SECTOR ALLOCATION
(PERCENTAGE OF TOTAL INVESTMENTS)
Pie chart depicting the sector allocation of the Fund's investment securities
held at September 30, 1995 by investment categories. The pie is broken in
pieces representing investment categories in the following percentages:
INVESTMENT CATEGORY PERCENTAGE
REVENUE 34.9%
PRE-REFUNDED 31.7%
INSURED 23.5%
GENERAL OBLIGATIONS 8.7%
PRIVATE PLACEMENTS 1.2%
30-DAY SEC YIELD
4.97%
DURATION
5.9 years
QUALITY PROFILE
AAA-A- 84%
Other 16%
4
<PAGE>
FUND PERFORMANCE
EXAMINING PERFORMANCE
There are several ways to evaluate a mutual fund's historical performance
record. One approach 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 are not
annualized and provide a picture of how a fund has performed over the short
term.
<TABLE>
<CAPTION>
PERFORMANCE TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------------------------
THREE SIX ONE FIVE SINCE
AS OF SEPTEMBER 30, 1995 MONTHS MONTHS YEAR YEARS INCEPTION*
- ------------------------------------------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C>
The JPM Institutional New York
Total Return Bond Fund 2.27% 5.06% 9.24% - 7.47%
Composite Intermediate New York
Municipal Bond Fund Average 2.32% 4.59% 8.44% - 6.10%
</TABLE>
*4/11/94 -- COMMENCEMENT OF OPERATIONS (AVERAGE ANNUAL TOTAL RETURNS BASED ON
MONTH END FOLLOWING INCEPTION)
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. ALL RETURNS ASSUME THE
REINVESTMENT OF DISTRIBUTIONS AND REFLECT REIMBURSEMENT OF CERTAIN FUND AND
PORTFOLIO EXPENSES AS DESCRIBED IN THE PROSPECTUS. THE JPM INSTITUTIONAL NEW
YORK TOTAL RETURN BOND FUND INVESTS ALL OF ITS INVESTABLE ASSETS IN THE NEW YORK
TOTAL RETURN BOND PORTFOLIO, A SEPARATELY REGISTERED INVESTMENT COMPANY WHICH IS
NOT AVAILABLE TO THE PUBLIC BUT ONLY TO OTHER COLLECTIVE INVESTMENT VEHICLES
SUCH AS THE FUND. THE COMPOSITE INTERMEDIATE NEW YORK MUNICIPAL BOND FUND
AVERAGE PERFORMANCE IS DERIVED FROM ALL 24 FUNDS IN THE MORNINGSTAR UNIVERSE
HAVING A NEW YORK MUNICIPAL BOND OBJECTIVE AND AN INTERMEDIATE MATURITY.
MORNINGSTAR, INC. IS A LEADING RESOURCE FOR MUTUAL FUND DATA. NO REPRESENTATION
IS MADE THAT INFORMATION GATHERED FROM THIS SOURCE IS ACCURATE OR COMPLETE.
5
<PAGE>
SIGNATURE BROKER-DEALER SERVICES, INC. IS THE DISTRIBUTOR OF THE JPM
INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND (THE "FUND").
MORGAN GUARANTY TRUST COMPANY OF NEW YORK ("MORGAN") SERVES AS PORTFOLIO
INVESTMENT ADVISOR AND MAKES THE FUND AVAILABLE SOLELY IN ITS CAPACITY AS
SHAREHOLDER SERVICING AGENT FOR CUSTOMERS. 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, assume the reinvestment of Fund distributions, and reflect the
reimbursement of Fund expenses. Had expenses not been subsidized, returns would
have been lower. The Fund invests all of its investable assets in The New York
Total Return Bond Portfolio, a separately registered investment company which is
not available to the public but only to other collective investment vehicles
such as the Fund.
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 ADDITIONAL COPIES OF THE PROSPECTUS BY CALLING J.P.
MORGAN FUNDS SERVICES AT (800) 766-7722.
6
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The New York Total Return
Bond Portfolio ("Portfolio"), at value $39,859,720
Receivable for Expense Reimbursement 35,690
Deferred Organization Expenses 8,049
Prepaid Expenses 327
-----------
Total Assets 39,903,786
-----------
LIABILITIES
Dividend Payable 35,503
Shareholder Servicing Fee Payable 13,547
Administration Fee Payable 696
Fund Services Fee Payable 274
Accrued Expenses 32,463
-----------
Total Liabilities 82,483
-----------
NET ASSETS
Applicable to 3,840,141 Shares of
Beneficial Interest Outstanding
(unlimited authorized shares, par value
$0.001) $39,821,303
-----------
-----------
Net Asset Value, Offering and Redemption
Price Per Share $10.37
ANALYSIS OF NET ASSETS
Paid-in Capital $38,783,943
Accumulated Net Realized Gain on
Investment 90,554
Accumulated Net Unrealized Appreciation
of Investment 946,806
-----------
Net Assets $39,821,303
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
7
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO
Allocated Interest Income $ 784,865
Allocated Portfolio Expenses (69,075)
----------
Net Investment Income Allocated from Portfolio 715,790
FUND EXPENSES
Transfer Agent Fee $ 8,309
Printing 7,521
Shareholder Servicing Fee 7,430
Professional Fees 4,502
Administration Fee 4,310
Registration Fees 1,979
Amortization of Organization Expense 1,188
Fund Services Fee 1,244
Trustees' Fees and Expenses 348
Miscellaneous 572
-------
Total Fund Expenses 37,403
Less: Reimbursement of Expenses (32,171)
-------
NET FUND EXPENSES (5,232)
----------
NET INVESTMENT INCOME 710,558
NET REALIZED GAIN ON INVESTMENT ALLOCATED FROM PORTFOLIO 113,605
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENT
ALLOCATED FROM PORTFOLIO 564,430
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,388,593
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
8
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX APRIL 11, 1994
MONTHS ENDED (COMMENCEMENT
SEPTEMBER 30, OF
1995 OPERATIONS) TO
INCREASE IN NET ASSETS (UNAUDITED) MARCH 31, 1995
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net Investment Income $ 710,558 $ 568,868
Net Realized Gain (Loss) on Investments Allocated from
Portfolio 113,605 (24,107)
Net Change in Unrealized Appreciation of Investments
Allocated from Portfolio 564,430 382,376
--------------- ---------------
Net Increase in Net Assets Resulting from Operations 1,388,593 927,137
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (710,558) (568,868)
--------------- ---------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Proceeds from Shares of Beneficial Interest Sold 18,685,206 24,802,140
Reinvestment of Dividends 602,599 546,349
Cost of Shares of Beneficial Interest Redeemed (765,477) (5,185,818)
--------------- ---------------
Net Increase from Transactions in Shares of Beneficial
Interest 18,522,328 20,162,671
--------------- ---------------
Total Increase in Net Assets 19,200,363 20,520,940
NET ASSETS
Beginning of Period 20,620,940 100,000
--------------- ---------------
End of Period $39,821,303 $20,620,940
--------------- ---------------
--------------- ---------------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
9
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the period are as follows:
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX APRIL 11, 1994
MONTHS ENDED (COMMENCEMENT OF
SEPTEMBER 30, 1995 OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995
------------------ ----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.11 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.25 0.42
Net Realized and Unrealized Gain on
Investment 0.26 0.11
------- -------
Total from Investment Operations 0.51 0.53
------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.25) (0.42)
------- -------
NET ASSET VALUE, END OF PERIOD $ 10.37 $ 10.11
------- -------
------- -------
Total Return (a) 5.06% 5.49%
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in
thousands) $39,821 $20,621
Ratios to Average Net Assets (b)
Expenses 0.50% 0.50%
Net Investment Income 4.78% 4.65%
Decrease Reflected in above Expense
Ratio Due to Expense Reimbursement 0.22% 0.55%
</TABLE>
- -------------------
(a) Not Annualized.
(b) Annualized.
The Accompanying Notes are an Integral Part of the Financial Statements.
10
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The JPM Institutional New York Total Return Bond Fund (the "Fund") is a separate
series of The JPM Institutional Funds, a Massachusetts business trust (the
"Trust"). The Trust is registered under the Investment Company Act of 1940, as
amended, as a non-diversified open-end management investment company. The Fund
commenced operations on April 11, 1994.
The Fund invests all of its investable assets in The New York Total Return Bond
Portfolio (the "Portfolio"), a non-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 (47% at September 30, 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 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 gain, if any, are declared and paid annually.
d) The Fund incurred organization expenses in the amount of $11,787. 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.
11
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
g) The Fund accounts for and reports distributions to shareholders in
accordance with Statement of Position 93-21: Determination, Disclosure,
and Financial Statement Presentation of Income, Capital Gain, and Return
of Capital Distributions by Investment Companies. The effect of applying
this statement was to decrease Paid-in-Capital by $2,206, and increase
Accumulated Net Realized Gain on Investment by $2,206. Net investment
income, net realized gains and net assets were not affected by this
change.
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 fee 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 to
the net assets of the Fund. For the six months ended September 30, 1995,
Signature's fee for these services amounted to $4,310.
b) During the six months ended September 30, 1995, the Trust, on behalf of
the Fund, had a Financial and Fund Accounting Services Agreement
("Services Agreement") with Morgan Guaranty Trust Company of New York
("Morgan") under which Morgan received a fee, based on the percentages
described below, for overseeing certain aspects of the administration and
operation of the Fund and which was also designed to provide an expense
limit for certain expenses of the Fund. The fee was calculated at 0.05% of
the Fund's average daily net assets. For the six months ended September
30, 1995, Morgan agreed to reimburse the Fund $16,687 for excess expenses.
Effective September 1, 1995, the Services Agreement was terminated and an
interim agreement was entered into between the Trust, on behalf of the
Fund, and Morgan which provides for the continuation of the oversight
services that were outlined under the prior agreement and that Morgan
shall bear all of its expenses incurred in connection with these services.
In addition, 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 March 31, 1996.
For the six months ended September 30, 1995, Morgan has agreed to
reimburse the Fund $15,484 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
12
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
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 September 30, 1995,
Morgan's fee for these services amounted to $7,430.
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 Trust's affairs. The Trustees
of the Trust represent all the existing shareholders of Group. The Fund's
allocated portion of Group's costs in performing its services amounted to
$1,244 for the six months ended September 30, 1995.
e) An annual aggregate fee of $65,000 is paid to each Trustee for serving as
a Trustee of The Pierpont Funds, The JPM Institutional Funds, their
corresponding Portfolios and The Series Portfolio. The Trustees' Fees and
Expenses shown in the financial statements represents the Fund's allocated
portion of these total fees and expenses. 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 $200.
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 PERIOD
FOR THE SIX APRIL 11, 1994
MONTHS ENDED (COMMENCEMENT OF
SEPTEMBER 30, 1995 OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995
------------------ -------------------
<S> <C> <C>
Shares sold 1,817,178 2,500,781
Reinvestment of dividends 58,457 54,974
Shares redeemed (75,194) (526,055)
-------- ----------
Net increase 1,800,441 2,029,700
-------- ----------
-------- ----------
</TABLE>
13
<PAGE>
The New York Total Return Bond Portfolio
Semi-Annual Report September 30, 1995
(unaudited)
(The following pages should be read in conjunction
with The JPM Institutional New York Total Return Bond Fund
Semi-Annual Financial Statements)
14
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS MATURITY
AMOUNT SECURITY DESCRIPTION SECURITY SECTOR MOODY'S/S&P DATE RATE VALUE
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
CALIFORNIA (2.5%)
$1,000,000 California State........................ General Obligation A1/A 02/01/09 6.600% $ 1,094,960
1,000,000 Kaweah Delta Hospital District, Tulare
County (Series F)..................... Private Placement NR/NR 06/01/97(A) 5.250 1,009,580
-----------
TOTAL CALIFORNIA........................ 2,104,540
-----------
GEORGIA (7.6%)
100,000 Burke County Development Authority (PCR,
Georgia Power Authority, Vogtle
Project).............................. Revenue Bond A1/A+ 07/01/24(B) 3.800 100,000
2,000,000 Georgia Municipal Electric Power
Authority (Series O).................. Revenue Bond A/A 01/01/98(A) 8.125 2,194,800
1,000,000 Georgia Municipal Electric Power
Authority (Sixth Crossover, PJ-1-AMBAC
Insured, TCRS)........................ Insured Aaa/AAA 01/01/08 7.000 1,146,800
750,000 Georgia Municipal Electric Power
Authority (First Crossover, General
Resolution)........................... Revenue Bond A/A 01/01/08(A) 6.500 790,088
2,000,000 Gwinnett County Georgia School District
(Refunding, Series B)................. General Obligation Aa1/AA 02/01/07 6.400 2,232,560
-----------
TOTAL GEORGIA........................... 6,464,248
-----------
ILLINOIS (5.8%)
2,200,000 Chicago Illinois Motor Fuel Tax
(Refunding), AMBAC Insured............ Insured Aaa/AAA 01/01/09 6.125 2,334,376
1,000,000 Illinois State.......................... General Obligation A1/AA- 10/01/02 6.000 1,070,050
1,500,000 Illinois Sales Tax Revenue (Refunding,
Series Q)............................. Revenue Bond A1/AAA 06/15/10(A) 6.000 1,544,655
-----------
TOTAL ILLINOIS.......................... 4,949,081
-----------
MASSACHUSETTS (1.4%)
1,000,000 Massachusetts Bay Transportation
Authority (General Transportation
System, Refunding, Series A).......... Revenue Bond A1/A- 03/01/08 7.000 1,152,220
-----------
NEW JERSEY (1.5%)
1,250,000 New Jersey State Turnpike Authority
(Series A)............................ Revenue Bond A/A 01/01/01 5.700 1,306,900
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
15
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS MATURITY
AMOUNT SECURITY DESCRIPTION SECURITY SECTOR MOODY'S/S&P DATE RATE VALUE
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
NEW YORK (74.8%)
$2,250,000 Grand Central District Management
Association Inc. (Business Improvement
District)............................. Prerefunded Aaa/AAA 01/01/02(A) 6.500% $ 2,520,293
555,000 Islip Metropolitan Transportation
Authority (NY Service Contract
Commuter Facilities, Series O), MBIA
Insured............................... Insured Aaa/AAA 06/01/98(A) 7.300 601,614
1,370,000 Metropolitan Transportation Authority
(NY Service Contract Commuter
Facilities, Series N)................. Revenue Bond Baa1/BBB 07/01/02 6.625 1,484,738
2,000,000 Metropolitan Transportation Authority
(New York Transportation, Series K)... Prerefunded Aaa/NRR 07/01/02(A) 6.625 2,261,000
1,500,000 Metropolitan Transportation Authority
(New York, Series K), MBIA Insured.... Insured Aaa/AAA 07/01/07 6.300 1,660,320
1,500,000 Metropolitan Transportation Authority
(NY Service Contract Commuter
Facilities, Refunding, Series O)...... Revenue Bond Baa1/BBB 07/01/08 5.750 1,494,480
1,130,000 Monroe County Public Improvement, AMBAC
Insured............................... Insured Aaa/AAA 06/01/08 5.875 1,195,730
3,000,000 Municipal Assistance Corp. for New York
City (Series 68)...................... Revenue Bond Aa/AA- 07/01/99 7.000 3,262,650
3,500,000 Municipal Assistance Corp. for New York
City (Series D), AMBAC Insured........ Insured Aaa/AAA 07/01/00 6.000 3,723,160
1,475,000 New York City (Municipal Water
Authority, Water & Sewer System,
Series A)............................. Prerefunded NRR/AAA 06/15/99(A) 7.375 1,649,404
1,500,000 New York City (Refunding, Series H)..... Escrowed to Aaa/AAA 08/01/00 7.875 1,724,820
Maturity
1,750,000 New York City (Refunding, Series A)..... General Obligation Baa1/BBB+ 08/01/02 5.750 1,773,503
1,250,000 New York City (Series A)................ General Obligation Baa1/BBB+ 08/01/04 7.000 1,357,850
100,000 New York City (Series B)................ General Obligation A1/AA- 08/15/18(B) 4.550 100,000
100,000 New York City (Series B), FGIC
Insured............................... Insured Aaa/AAA 10/01/20(B) 3.900 100,000
200,000 New York City (Series B), FGIC
Insured............................... Insured Aaa/AAA 10/01/21(B) 3.900 200,000
100,000 New York City (Series B), FGIC
Insured............................... Insured Aaa/AAA 10/01/22(B) 4.100 100,000
1,000,000 New York Dormitory Authority (University
Educational Facilities, Series A)..... Revenue Bond Baa1/BBB+ 05/15/99 6.625 1,058,990
1,750,000 New York Dormitory Authority (Series
B).................................... Prerefunded Aaa/NRR 05/15/00(A) 7.250 1,985,235
2,700,000 New York Dormitory Authority (City
University System, Series A).......... Prerefunded Aaa/NRR 07/01/00(A) 7.625 3,113,613
1,000,000 New York Dormitory Authority (City
University System, Series D).......... Revenue Bond Baa1/BBB 07/01/03 8.750 1,212,660
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
16
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS MATURITY
AMOUNT SECURITY DESCRIPTION SECURITY SECTOR MOODY'S/S&P DATE RATE VALUE
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
$1,210,000 New York Dormitory Authority (University
of Rochester, Series A)............... Revenue Bond A1/A+ 07/01/06 6.500% $ 1,336,118
1,500,000 New York Dormitory Authority (University
Educational Facilities, Series A),
AMBAC Insured......................... Insured Aaa/AAA 05/15/07 5.500 1,545,390
1,000,000 New York Housing Finance Agency (Service
Contract Obligation Revenue, Series A) Prerefunded Aaa/AAA 03/15/01(A) 7.800 1,174,920
1,000,000 New York Local Government Assistance
Corp. (Series A)...................... Revenue Bond A/A 04/01/00 6.200 1,064,850
1,000,000 New York Local Government Assistance
Corp. (Series A)...................... Prerefunded Aaa/AAA 04/01/02(A) 7.125 1,157,890
1,000,000 New York Local Government Assistance
Corp. (Series C)...................... Revenue Bond A/A 4/1/2009(A) 6.000 1,013,090
1,000,000 New York Medical Care Facilities Finance
Agency (Mental Health Services &
Improvement Series A)................. Prerefunded Aaa/AAA 02/15/99(A) 7.800 1,127,200
1,565,000 New York Medical Care Facilities Finance
Agency (St. Luke's Hospital, Series
B), FHA Insured....................... Prerefunded Aaa/AAA 02/15/00(A) 7.450 1,778,951
1,500,000 New York Medical Care Facilities Finance
Agency (Mental Health Services, Series
F, Refunding)......................... Revenue Bond Baa1/BBB+ 02/15/03 6.000 1,558,680
1,000,000 New York State Environmental Pollution
(State Water Revolving Fund, Series
E).................................... Revenue Bond Aa/A 06/15/01 6.200 1,075,310
1,250,000 New York State Local Assistance Corp.
(Series A)............................ Prerefunded Aaa/AAA 04/01/01(A) 7.000 1,421,775
2,195,000 New York State Power Authority (Series
W).................................... Revenue Bond Aa/AA- 01/01/08 6.500 2,419,527
500,000 New York State Urban Development Corp.
(Correctional Capital Facilities,
Series 1)............................. Revenue Bond Aaa/NR 01/01/00(A) 7.750 572,610
3,000,000 New York State Urban Development Corp.
(Correctional Capital Facilities,
Series 2)............................. Prerefunded Aaa/NR 01/01/01(A) 6.500 3,282,180
3,000,000 New York Thruway Authority (Series A)... Insured Aaa/AAA 04/01/04 6.250 3,300,810
1,030,000 Suffolk County Water Authority,
(Waterworks Revenue Refunding), AMBAC
Insured............................... Prerefunded Aaa/AAA 06/01/00(A) 6.600 1,141,487
3,000,000 Triborough Bridge & Tunnel Authority
(Series T)............................ Prerefunded Aaa/A+ 01/01/01(A) 7.000 3,397,770
1,500,000 Triborough Bridge & Tunnel Authority
(Series Y)............................ Revenue Bond Aa/A+ 01/01/07 5.900 1,587,165
1,000,000 Triborough Bridge & Tunnel Authority
(Series X)............................ Revenue Bond Aa/A+ 01/01/12 6.625 1,101,560
-----------
TOTAL NEW YORK.......................... 63,637,343
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
17
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL RATINGS MATURITY
AMOUNT SECURITY DESCRIPTION SECURITY SECTOR MOODY'S/S&P DATE RATE VALUE
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
PUERTO RICO (5.5%)
$1,250,000 Puerto Rico Electric Power Authority
(Refunding, Series W), MBIA Insured... Insured Aaa/AAA 07/01/00 6.000% $ 1,333,763
3,000,000 University of Puerto Rico (University
Revenues, Refunding, Series N)........ Insured Aaa/AAA 06/01/05 6.250 3,330,720
-----------
TOTAL PUERTO RICO....................... 4,664,483
-----------
TEXAS (3.8%)
200,000 Austin, Water Sewer & Electric
(Refunding, Escrowed to Maturity)..... Revenue Bond A/A- 11/15/97 13.500 237,366
3,021,859 Texas State (Tax & Revenue Anticipation
Note, Series A)....................... TRAN MIG1/Spl+ 08/30/96(B) 4.750 3,021,960
-----------
TOTAL TEXAS............................. 3,259,326
-----------
TOTAL INVESTMENTS (102.9%)
(COST $85,164,955) 87,538,141
LIABILITIES IN EXCESS OF OTHER ASSETS
(-2.9%) (2,506,592)
-----------
NET ASSETS (100.0%) $85,031,549
-----------
-----------
<FN>
(A) The date shown represents a mandatory/optional put date or call date.
(B) The interest rates on variable rate notes are reset periodically. The rates stated are the current rates as of
September 30, 1995. The maturity dates shown are the stated maturities.
1. Based on the cost of investments of $85,164,955 for federal income tax purposes at September 30, 1995 the aggregate
gross unrealized appreciation and depreciation was $2,396,506 and $23,320 respectively, resulting in net unrealized
appreciation of investments of $2,373,186.
2. Abbreviations used in the schedule of investments are as follows: AMBAC -- American Municipal Bond Assurance
Corporation; FGIC -- Financial Guaranty Insurance Company; FHA -- Federal Housing Authority; MBIA -- Municipal Bond
Investors Assurance Corp.; NRR -- Not Rerated; PCR --Pollution Control Revenue; TRAN -- Tax Revenue Anticipation
Note.
3. 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 cancelled the old issue.
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.
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
18
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $85,164,955)
$87,538,141
Interest Receivable
1,324,525
Deferred Organization Expenses
8,298
Prepaid Insurance
693
-----------
Total Assets
88,871,657
-----------
LIABILITIES
Payable for Securities Purchased
3,732,108
Advisory Fee Payable
28,407
Payable to Custodian
24,690
Custody Fee Payable
21,401
Fund Service Fee Payable
586
Administration Fee Payable
375
Accrued Expenses
32,541
-----------
Total Liabilities
3,840,108
-----------
NET ASSETS
Applicable to Investors' Beneficial Interests
$85,031,549
-----------
-----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
19
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest $1,884,398
EXPENSES
Advisory Fee $107,385
Professional Fees 22,762
Custodian Fees and Expenses 15,376
Financial and Fund Accounting Services Fee 6,529
Fund Services Fee 3,090
Administration Fee 2,144
Amortization of Organization Expenses 1,155
Trustees' Fees and Expenses 824
Miscellaneous 7,092
--------
Total Expenses (166,357)
----------
NET INVESTMENT INCOME 1,718,041
NET REALIZED GAIN ON INVESTMENTS 323,340
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS 1,389,171
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,430,552
----------
----------
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
20
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX APRIL 11, 1994
MONTHS ENDED (COMMENCEMENT
SEPTEMBER 30, OF
1995 OPERATIONS) TO
INCREASE IN NET ASSETS (UNAUDITED) MARCH 31, 1995
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS
Net Investment Income $ 1,718,041 $ 1,840,235
Net Realized Gain (Loss) on Investments 323,340 (125,677)
Net Change in Unrealized Appreciation of Investments 1,389,171 984,015
--------------- ---------------
Net Increase in Net Assets Resulting from Operations 3,430,552 2,698,573
--------------- ---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 27,123,153 72,754,445
Withdrawals (4,353,463) (16,721,811)
--------------- ---------------
Net Increase from Investors' Transactions 22,769,690 56,032,634
--------------- ---------------
Total Increase in Net Assets 26,200,242 58,731,207
NET ASSETS
Beginning of Period 58,831,307 100,100
--------------- ---------------
End of Period $85,031,549 $58,831,307
--------------- ---------------
--------------- ---------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX APRIL 11, 1994
MONTHS ENDED (COMMENCEMENT OF
SEPTEMBER 30, 1995 OPERATIONS) TO
(UNAUDITED) MARCH 31, 1995
------------------- -------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS (A)
Expenses 0.46% 0.48%
Net Investment Income 4.80% 4.59%
Decrease Reflected in Expense Ratio due to Expense Reimbursement by Morgan -- 0.03%
Portfolio Turnover 24% 63%
<FN>
- ------------------------
(a) Annualized
</TABLE>
The Accompanying Notes are an Integral Part of the Financial Statements.
21
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The New York Total Return Bond Portfolio (the "Portfolio") is registered under
the Investment Company Act of 1940, as amended, as a non-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 April 11, 1994. 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 are valued by an outside independent pricing service
approved by the Trustees. The value of each security for which readily
available market quotations exist is based on a decision as to the
broadest and most representative market for such security. The value of
such security will be based either on the last sale price on a national
securities exchange, or, in the absence of recorded sales, at the readily
available closing bid price on such exchanges, or at the quoted bid price
in the over-the-counter market. Because of the large number of municipal
bond issues outstanding and the varying maturity dates, coupons and risk
factors applicable to each issuer's bonds, no readily available market
quotations exist for most municipal securities. Securities or other assets
for which market quotations are not readily available are valued in
accordance with procedures established by the Portfolio's Trustees. Such
procedures include the use of comparable quality, coupon, maturity and
type, indications as to values from dealers, and general market
conditions. All portfolio securities with a remaining maturity of less
than 60 days are valued by the amortized cost method.
b)The Portfolio incurred organization expenses in the amount of $11,473.
These costs were deferred and are being amortized by the Portfolio on a
straight-line basis over a five-year period from the commencement of
operations.
c)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.
d)The Portfolio intends to be treated as a partnership for federal income
tax purposes. As such, each investor in the Portfolio will be taxable 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.
22
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
SEPTEMBER 30, 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 a fee at an annual rate of
0.30% of the Portfolio's average daily net assets. For the six months
ended September 30, 1995, this fee amounted to $107,385.
b)The Portfolio retains Signature Broker-Dealer Services, Inc. ("Signature")
to serve as Administrator and exclusive placement agent. 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 fee 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 daily to the net assets of the Fund. For the six
months ended September 30, 1995, Signature's fee for these services
amounted to $2,144.
c)During the six months ended September 30, 1995, the Portfolio had a
Financial and Fund Accounting Services Agreement ("Services Agreement")
with Morgan under which Morgan received a fee, based on the percentages
described below, for overseeing certain aspects of the administration and
operation of the Portfolio which was also designed to provide an expense
limit for certain expenses of the Portfolio. The fee was calculated at
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. For the six months ended September
30, 1995, the fee for these services amounted to $6,529. Effective
September 1, 1995, the Services Agreement was terminated and an interim
agreement was entered into between the Portfolio and Morgan, which
provides for the continuation of the oversight services that were outlined
under the prior agreement and that Morgan shall bear all of its expenses
incurred in connection with these services.
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 represent all the existing shareholders of Group. The
Portfolio's allocated portion of Group's costs in performing its services
amounted to $3,090 for the six months ended September 30, 1995.
e)An aggregate annual fee of $65,000 is paid to each Trustee for serving as
Trustee of The Pierpont Funds, The JPM Institutional Funds, and their
corresponding Portfolios and The Series Portfolio. The Trustees' Fees and
Expenses shown in the financial statements represent the Portfolio's
allocated portion of these total fees and expenses. The Trustee who serves
as Chairman and Chief Executive Officer of these Funds and Portfolios also
serves as Chairman of Group and received
23
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
SEPTEMBER 30, 1995
- --------------------------------------------------------------------------------
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 $400.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the six months
ended September 30, 1995, were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS FROM
PURCHASES SALES
------------- -------------
<S> <C> <C>
Municipal Obligations $ 43,560,858 $ 16,607,976
</TABLE>
24
<PAGE>
JPM INSTITUTIONAL MONEY MARKET FUND
JPM INSTITUTIONAL TAX EXEMPT MONEY MARKET FUND
JPM INSTITUTIONAL TREASURY MONEY MARKET FUND
JPM INSTITUTIONAL SHORT TERM BOND FUND
JPM INSTITUTIONAL BOND FUND
JPM INSTITUTIONAL TAX EXEMPT BOND FUND
JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
JPM INSTITUTIONAL INTERNATIONAL BOND FUND
JPM INSTITUTIONAL DIVERSIFIED FUND
JPM INSTITUTIONAL SELECTED U.S. EQUITY FUND
JPM INSTITUTIONAL U.S. SMALL COMPANY FUND
JPM INSTITUTIONAL INTERNATIONAL EQUITY FUND
JPM INSTITUTIONAL EMERGING MARKETS EQUITY FUND
FOR MORE INFORMATION ON THE JPM INSTITUTIONAL FAMILY OF FUNDS, CALL J.P. MORGAN
FUNDS SERVICES AT (800)766-7722.
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1995
