<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LETTER TO THE SHAREHOLDERS OF THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND
FUND
May 15, 1995
Dear Shareholder:
We are pleased to report that The JPM Institutional New York Total Return Bond
Fund was able to provide its shareholders with a return of 5.49% from its
commencement of operations on April 11, 1994 through March 31, 1995. We believe
the Portfolio's security selection and focus on high-quality issues contributed
to the Fund's positive return. The Fund began operations as municipal bond
prices began to stabilize following the bulk of the Federal Reserve's rate
increases. While this was generally a good time to launch a municipal bond fund,
we were not able to fully participate in the market's rally as we were in the
process of investing assets at the beginning of the period. As a result, the
Fund underperformed its benchmark, the Lehman Brothers New York 1-15 Year
Municipal Bond Index, for the reporting period.
Since its inception, the Fund's net asset value rose from $10.00 per share at
inception to end at $10.11 on March 31, 1995, after paying approximately $0.42
per share in dividends.The Fund's net assets grew to almost $21 million by the
end of the reporting period.The net assets of The New York Total Return
Portfolio, in which the Fund invests, totaled approximately $59 million at March
31, 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. In order to keep inflation in check and
prevent the economy from overheating, the Federal Reserve continued to raise its
overnight Federal funds rate seven times in the past year to 6.00% by the end of
the period.
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, resulting in a flattening of the yield curve. At the same
time, rates for municipal bonds underwent a similar rise and fall but to a
lesser degree, due in part to low supply.
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO THE SHAREHOLDERS . . . . 1 FUND PERFORMANCE. . . . . . . .5
FUND FACTS AND HIGHLIGHTS. . . . . 4 FINANCIAL STATEMENTS. . . . . .7
- -------------------------------------------------------------------------------
1
<PAGE>
Municipal bonds provided higher returns than equivalent-maturity Treasuries on
an after-tax basis for the period. By the end of March, after-tax yields on
short-term municipals were outperforming comparable Treasuries across all
maturities; municipals also outperformed Treasuries across the curve on a total
return basis.
PORTFOLIO REVIEW
The investment process involves three key decisions, which are 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 interest rates are expected to rise, 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, 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.
With the expectation that improved U.S. economic conditions would spur higher
rates in a shrinking municipal bond universe, the Portfolio initially targeted
an average duration slightly shorter than the benchmark. When the Federal
Reserve continued its program of interest rate increases, however, the
Portfolio's duration target was extended to 5.5 years, neutral relative to the
benchmark. This adjustment was made after our analysis indicated that rates for
longer-term municipals were likely to remain stable, having already absorbed
most of the upward movement triggered by Federal Reserve actions.
The Portfolio pursued a "barbell" structure during the period by overweighting
short- and longer-term issues.This strategy was maintained to help performance,
given our expectations for yield curve flattening.
SECTOR ALLOCATION. During the period, our analysis indicated that municipals
should offer investors higher after-tax yields and returns than their Treasury
counterparts because supply should remain low for the balance of 1995. Given
this projection, we had 100% municipal bond exposure at the end of March, and 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.
SECURITY SELECTION. As interest rates rose, we added to the Portfolio's
longer-term municipal holdings (15-year maturities) and reduced its intermediate
exposure (7- to 10-year maturities). In addition, we continued to buy coupon
bonds at a premium, as we found they typically offered higher yields than
comparable risk bonds sold at par. The objective of these transactions, along
with our focus on higher-quality issues, was to help position the Portfolio to
retain value if interest rates rose.
2
<PAGE>
At the end of March, the Portfolio had approximately 82% of investments in New
York municipals, reflecting our belief that they were costly relative to non-New
York securities. Looking to the months ahead, we believe that New York bonds
will return to more normal -- and more attractively priced -- levels, after the
newly sworn-in Pataki government makes its peace with state legislators and New
York's budget for fiscal year 1995 is passed. Once that occurs, the State should
again be in a position to issue new bonds, and supply will return to the
market.
INVESTMENT OUTLOOK
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 are therefore maintaining a strategy of 100% investment in
municipals and our current barbell structure in order to capitalize on the
expected continued flattening of the municipal yield curve.
As the supply of New York paper is expected to increase, we will look to add
opportunistically to the New York securities held by the Portfolio.
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 3/31/95
$20,620,940
- -------------------------------------------------------------------------------
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 redemption proceeds from the Fund.
FUND HIGHLIGHTS
ALL DATA AS OF MARCH 31, 1995
SECTOR ALLOCATION
(PERCENTAGE OF TOTAL INVESTMENTS)
Pie chart depicting the allocation of the Fund's investment securities held
at March 31, 1995 by investment categories. The pie is broken in pieces
representing investment categories in the following percentages:
<TABLE>
<CAPTION>
INVESTMENT CATEGORY PERCENTAGE
<S> <C>
Pre-refunded 36.8%
Revenue 30.4%
Insured 14.2%
General Obligations 12.8%
Short-term investments 4.1%
Private placements 1.7%
</TABLE>
30-DAY SEC YIELD
5.22%
DURATION
5.5 years
QUALITY PROFILE
AAA-A- 88.7%
Other 11.3%
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 Fund's inception
would have grown to $10,549 by March 31, 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 are
not annualized and provide a picture of how a fund has performed over the short
term.
GROWTH OF $10,000 SINCE INCEPTION
APRIL 11, 1994 -- MARCH 31, 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
April 11, 1994 (inception) to March 31, 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 New York 1-15 Year
Municipal Bond Index for the same time period. The graph points are as follows:
<TABLE>
<CAPTION>
Lehman Brothers
New York 1-15 Year
Year Fund Municipal Bond Index
<S> <C> <C>
0 $ 10,000 $ 10,000
1 10,549 10,637
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE TOTAL RETURNS
--------------------------------------------------
THREE YEAR ONE FIVE SINCE
AS OF MARCH 31, 1995 MONTHS TO DATE YEAR YEARS INCEPTION*
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The JPM Institutional New York
Total Return Bond Fund 4.86% 4.86% -- -- 5.49%
Lehman Brothers NY 1-15
Year Municipal Bond Index 5.05% 5.05% -- -- 6.37%
<FN>
*4/11/94 -- commencement of operations
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.
</TABLE>
5
<PAGE>
The Fund's Distributor is Signature Broker-Dealer Services, Inc.
Morgan Guaranty Trust Company of New York ("Morgan") serves as Portfolio
Investment Advisor and makes The JPM Institutional New York Total Return Bond
Fund (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
MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in The New York Total Return
Bond Portfolio ("Portfolio"), at value
(Note 1) $20,623,449
Receivable for Expense Reimbursements
(Note 2b) 27,923
Deferred Organization Expenses (Note 1d) 9,496
Prepaid Expenses 74
-----------
Total Assets 20,660,942
-----------
LIABILITIES
Dividend Payable 6,721
Shareholder Servicing Fee Payable (Note
2c) 6,116
Organization Expenses Payable 2,966
Administration Fee Payable (Note 2a) 1,000
Fund Services Fee Payable (Note 2d) 258
Accrued Expenses 22,941
-----------
Total Liabilities 40,002
-----------
NET ASSETS
Applicable to 2,039,700 Shares of
Beneficial Interest Outstanding
(unlimited authorized shares, par value
$0.001) $20,620,940
-----------
-----------
Net Asset Value, Offering and Redemption
Price Per Share $10.11
-----------
-----------
ANALYSIS OF NET ASSETS
Paid-in Capital $20,263,821
Accumulated Net Realized Loss on
Investment (25,257)
Net Unrealized Appreciation of
Investment 382,376
-----------
Net Assets $20,620,940
-----------
-----------
</TABLE>
See Accompanying Notes.
7
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 11, 1994 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME FROM PORTFOLIO (NOTE 1B)
Allocated Interest Income $630,038
Allocated Portfolio Expenses (Net of Reimbursement of $3,621) (59,422)
--------
Net Investment Income Allocated from Portfolio 570,616
FUND EXPENSES
Printing $18,035
Transfer Agent Fee 14,685
Registration Fees 8,799
Professional Fees 8,643
Shareholder Servicing Fee (Note 2c) 6,116
Administration Fee (Note 2a) 3,042
Amortization of Organization Expenses (Note 1d) 2,291
Fund Services Fee (Note 2d) 1,297
Trustees' Fees and Expenses (Note 2e) 230
Miscellaneous 1,778
-------
Total Fund Expenses 64,916
Less: Reimbursement of Expenses (Note 2b) (63,168)
-------
NET FUND EXPENSES 1,748
--------
NET INVESTMENT INCOME 568,868
NET REALIZED LOSS ON INVESTMENTS ALLOCATED FROM PORTFOLIO (24,107)
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS ALLOCATED FROM
PORTFOLIO 382,376
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $927,137
--------
--------
</TABLE>
See Accompanying Notes.
8
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
PERIOD
APRIL 11,
1994
(COMMENCEMENT
OF
OPERATIONS)
TO
MARCH 31,
INCREASE IN NET ASSETS 1995
-------------
<S> <C>
FROM OPERATIONS
Net Investment Income $ 568,868
Net Realized Loss on Investments Allocated from Portfolio (24,107)
Net Change in Unrealized Appreciation of Investments Allocated from
Portfolio 382,376
-------------
Net Increase in Net Assets Resulting from Operations 927,137
-------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (568,868)
-------------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (NOTE 3)
Proceeds from Shares of Beneficial Interest Sold 24,802,140
Reinvestment of Dividends 546,349
Cost of Shares of Beneficial Interest Redeemed (5,185,818)
-------------
Net Increase from Transactions in Shares of Beneficial Interest 20,162,671
-------------
Total Increase in Net Assets 20,520,940
NET ASSETS
Beginning of Period 100,000
-------------
End of Period $20,620,940
-------------
-------------
</TABLE>
See Accompanying Notes.
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
APRIL 11, 1994
(COMMENCEMENT
OF OPERATIONS)
TO
MARCH 31, 1995
----------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.42
Net Realized and Unrealized Gain on Investment 0.11
-------
Total from Investment Operations 0.53
-------
LESS DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income (0.42)
-------
NET ASSET VALUE, END OF PERIOD $ 10.11
-------
-------
Total Return 5.49%(a)
-------
-------
RATIOS AND SUPPLEMENTAL DATA
Net Assets at end of Period (in thousands) $ 20,621
Ratios to Average Net Assets
Expenses 0.50 %(b)
Net Investment Income 4.65 %(b)
Decrease Reflected in Expense Ratio Due to Expense Reimbursement by Morgan 0.55 %(b)
<FN>
- -------------------
(a) Not Annualized.
(b) Annualized.
</TABLE>
See Accompanying Notes.
10
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 (35% at March 31,1995). 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 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.
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. The Fund increased accumulated net
realized loss on investment and paid-in capital by $1,150. Net investment
income, net realized losses and net assets were not affected by this
change.
11
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
- --------------------------------------------------------------------------------
h)As of March 31, 1995, the Fund incurred and elected to defer, for United
States Federal income tax purposes, post-October losses of $7,498 until
the next taxable year. Additionally, the Fund had a capital loss
carryforward at March 31, 1995 of $17,759, which will expire in the year
2003. No capital gains distribution is expected to be paid to shareholders
until future net gains have been realized in excess of such carryforward.
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 period April 11, 1994 (commencement of
operations) to March 31, 1995, Signature's fee for these services amounted
to $3,042.
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 percentage described below, for assisting in 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 period April 11, 1994 (commencement
of operations) to March 31, 1995, Morgan agreed to reimburse the Fund
$49,096 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
March 31, 1996. For the period April 11, 1994 (commencement of operations)
to March 31, 1995, Morgan has agreed to reimburse the Fund $14,072 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
period April 11, 1994 (commencement of operations) to March 31, 1995,
Morgan's fee for these services amounted to $6,116.
12
<PAGE>
THE JPM INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
- --------------------------------------------------------------------------------
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
$1,297 for the period April 11, 1994 (commencement of operations) to March
31, 1995.
e)An annual aggregate 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 $200.
3. 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
APRIL 11,
1994
(COMMENCEMENT
OF
OPERATIONS)
TO
MARCH 31,
1995
-------------
<S> <C>
Shares sold 2,500,781
Reinvestment of dividends 54,974
Shares redeemed (526,055)
-------------
Net increase 2,029,700
-------------
-------------
</TABLE>
13
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
The JPM Institutional New York Total Return Bond Fund
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
The JPM Institutional New York Total Return Bond Fund (the "Fund") at March 31,
1995, the results of its operations, the changes in its net assets and the
financial highlights for the period April 11, 1994 (commencement of operations)
through March 31, 1995, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for the opinion expressed above.
[/S/ PRICE WATERHOUSE LLP]
PRICE WATERHOUSE LLP
New York, New York
May 23, 1995
14
<PAGE>
The New York Total Return Bond Portfolio
Annual Report March 31, 1995
(The following pages should be read in conjunction
with The JPM Institutional New York Total Return Bond Fund
Annual Financial Statements)
15
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PRINCIPAL TYPE OF MOODY'S/S&P MATURITY VALUE
AMOUNT SECURITY DESCRIPTION SECURITY (UNAUDITED) DATE RATE (NOTE 1A)
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
MUNICIPAL OBLIGATIONS
CALIFORNIA (1.7%)
$1,000,000 Kaweah Delta Hospital District, Tubre
County (Series E)..................... Revenue Bond NR/NR 06/01/97(A) 5.250% $ 1,003,570
-----------
GEORGIA (5.5%)
1,500,000 State of Georgia, Series B.............. General Obligation Aaa/AA+ 03/01/08 6.300 1,621,380
1,500,000 Fulton County Georgia School District... General Obligation Aa/AA 05/01/14 6.375 1,598,655
-----------
TOTAL GEORGIA........................... 3,220,035
-----------
ILLINOIS (2.9%)
1,690,000 Cook County, Illinois, Series C, FGIC
Insured............................... General Obligation Aaa/AAA 11/15/08 6.000 1,730,983
-----------
MASSACHUSETTS (1.9%)
1,000,000 Massachusetts Bay Transportation
Authority, Series A................... Revenue Bond A1/A+ 03/01/08 7.000 1,119,580
-----------
NEW YORK (77.9%)
2,000,000 Albany County, South Mall Construction
(Refunding, Series A), FGIC Insured... General Obligation Aaa/AAA 04/01/96 4.300 1,997,080
2,250,000 Grand Central District Management
Association (Business Improvement,
Prerefunded).......................... Special Assessment Aaa/AAA 01/01/02(A) 6.500 2,467,890
555,000 Islip Metropolitan Transportation
Authority (NY Service Contract
Commuter Facilities, Series O), MBIA
Insured............................... General Obligation Aaa/AAA 06/01/98(A) 7.300 599,522
1,500,000 Metropolitan Transportation Authority
(NY Service Contract Commuter
Facilities, Series O, Refunding)...... Revenue Bond Baa1/BBB 07/01/08 5.750 1,431,615
1,370,000 Metropolitan Transportation Authority
(NY Service Contract Commuter
Facilities, Series N)................. Revenue Bond Baa1/BBB 07/01/02 6.625 1,434,308
1,500,000 Metropolitan Transportation Authority
(New York, Series K), MBIA Insured.... Revenue Bond Aaa/AAA 07/01/07 6.300 1,597,500
750,000 Monroe County Public Improvement, AMBAC
Insured............................... General Obligation Aaa/AAA 06/01/08 5.875 762,660
3,000,000 Municipal Assistance Corp. for New York
City (Series 68)...................... Revenue Bond Aa/AA- 07/01/99 7.000 3,230,430
1,500,000 New York, New York (Escrowed to
Maturity, Refunding, Series H)........ General Obligation Aaa/AAA 08/01/00 7.875 1,702,545
1,750,000 New York City (Refunding, Series A)..... General Obligation Baa1/A- 08/01/02 5.750 1,701,963
1,250,000 New York, New York (Series A)........... General Obligation Baa1/A- 08/01/04 7.000 1,301,050
1,475,000 New York City (Municipal Water
Authority, Water & Sewer System,
Series A), Prerefunded................ Revenue Bond A/AAA 06/15/99(A) 7.375 1,633,091
</TABLE>
See Accompanying Notes.
16
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PRINCIPAL TYPE OF MOODY'S/S&P MATURITY VALUE
AMOUNT SECURITY DESCRIPTION SECURITY (UNAUDITED) DATE RATE (NOTE 1A)
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
$1,000,000 New York Dormitory Authority (City
University System, Series D).......... Revenue Bond Baa1/BBB 07/01/03 8.750% $ 1,173,890
1,750,000 New York Dormitory Authority
(Prerefunded, Series B)............... Revenue Bond Aaa/BBB+ 05/15/00(A) 7.250 1,958,092
1,500,000 New York Dormitory Authority (University
Educational Facilities, Series A),
AMBAC Insured......................... Revenue Bond Aaa/AAA 05/15/07 5.500 1,499,880
1,210,000 New York Dormitory Authority (University
of Rochester, Series A)............... Revenue Bond A1/A+ 07/01/06 6.500 1,301,936
1,000,000 New York Housing Finance Agency Service
Contract (Series A), Prerefunded...... Revenue Bond Aaa/AAA 03/15/01(A) 7.800 1,157,550
1,000,000 New York Local Government Assistance
Corp. (Series A), Prerefunded......... Revenue Bond Aaa/AAA 04/01/02(A) 7.125 1,132,010
1,565,000 New York Medical Care Facilities Finance
Agency (St. Luke's Hospital, Series
B), Prerefunded FHA Insured........... Revenue Bond Aaa/AAA 02/15/00(A) 7.450 1,757,808
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 1,498,005
1,000,000 New York Medical Care Facilities Finance
Agency (Mental Health Services &
Improvement Series A), Prerefunded.... Revenue Bond Aaa/AAA 02/15/99(A) 7.800 1,121,040
1,000,000 New York Medical Care Facilities Finance
Agency (Mount Sinai Hospital),
Prerefunded........................... Revenue Bond Aaa/AAA 01/15/96(A) 8.875 1,053,200
1,250,000 New York State Local Assistance Corp.
(Series A, Prerefunded)............... Revenue Bond Aaa/AAA 04/01/01(A) 7.000 1,397,500
2,195,000 New York State Power Authority (Series
W).................................... Revenue Bond Aa/AA- 01/01/08 6.500 2,348,233
1,335,000 New York State Urban Development Corp,
(Correctional Facilities, Refunding,
Series D, Prerefunded), AMBAC
Insured............................... Revenue Bond Aaa/AAA 01/01/98(A) 7.500 1,455,884
1,030,000 Suffolk County Water Authority,
(Waterworks Revenue Refunding,
Prerefunded), AMBAC Insured........... Revenue Bond Aaa/AAA 06/01/00(A) 6.600 1,122,544
3,000,000 Triborough Bridge & Tunnel Authority
(Series T, Prerefunded)............... Revenue Bond Aaa/A+ 01/01/01(A) 7.000 3,341,460
1,000,000 Triborough Bridge & Tunnel Authority
(Series X)............................ Revenue Bond Aa/A+ 01/01/12 6.625 1,078,580
1,500,000 Triborough Bridge & Tunnel Authority
(Series Y)............................ Revenue Bond Aa/A+ 01/01/07 5.900 1,551,270
-----------
TOTAL NEW YORK.......................... 45,808,536
-----------
SOUTH CAROLINA (2.0%)
1,000,000 Charleston County, South Carolina....... General Obligation Aa/AA 06/01/02 8.400 1,193,260
-----------
</TABLE>
See Accompanying Notes.
17
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PRINCIPAL TYPE OF MOODY'S/S&P MATURITY VALUE
AMOUNT SECURITY DESCRIPTION SECURITY (UNAUDITED) DATE RATE (NOTE 1A)
- ---------- ---------------------------------------- ------------------ ----------- ----------- ------- -----------
<C> <S> <C> <C> <C> <C> <C>
TEXAS (2.5%)
$1,200,000 Austin, Water Sewer & Electric
(Refunding)........................... Revenue Bond A/A- 11/15/97 13.500% $ 1,447,584
-----------
TOTAL MUNICIPAL OBLIGATIONS
(COST $54,539,533).................... 55,523,548
-----------
SHORT-TERM INVESTMENTS (4.1%)
700,000 District of Columbia 06/01/03........... General Obligation Aa2/AA (B) 4.750 700,000
600,000 New York, New York (Series B)
10/01/21.............................. General Obligation Aaa/AAA (B) 4.300 600,000
700,000 New York, New York (Series B)
10/01/22.............................. General Obligation Aaa/AAA (B) 4.300 700,000
200,000 New York State Energy Research &
Development Authority, PCR 07/01/15... Revenue Bond NR/AA (B) 4.300 200,000
100,000 Peninsula Ports Authority, Virginia Coal
(Series C) 07/01/16................... Revenue Bond Aa/NR (B) 4.600 100,000
100,000 Umatilla County, Oregon Hospital
Facilities (Series A) 12/01/24........ Revenue Bond Aa2/AA (B) 4.600 100,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $2,400,000)..................... 2,400,000
-----------
TOTAL INVESTMENTS (98.5%)
(COST $56,939,533) 57,923,548
OTHER ASSETS IN EXCESS OF LIABILITIES
(1.5%) 907,759
-----------
NET ASSETS (100.0%) $58,831,307
-----------
-----------
<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
March 31, 1995. The maturity dates shown are the stated maturities.
1. Based on the cost of investments of $56,939,533 for federal income tax purposes at March 31, 1995, the aggregate
gross unrealized appreciation and depreciation was $1,080,201 and $96,186 respectively, resulting in net unrealized
appreciation of investments of $984,015.
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.; PCR -- Pollution Control Revenue.
3. Prerefunded -- Bonds for which the issuer of the bond invest 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.
</TABLE>
See Accompanying Notes.
18
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at Value (Cost $56,939,533) (Note 1a) $57,923,548
Interest Receivable 950,289
Receivable for Expense Reimbursement (Note 2c) 11,830
Deferred Organization Expenses (Note 1b) 9,242
Prepaid Insurance 236
-----------
Total Assets 58,895,145
-----------
LIABILITIES
Advisory Fee Payable (Note 2a) 23,037
Custody Fee Payable 20,863
Payable to Custodian 8,638
Organization Expenses Payable 3,338
Fund Services Fee Payable (Note 2d) 731
Administration Fee Payable (Note 2b) 532
Accrued Expenses 6,699
-----------
Total Liabilities 63,838
-----------
NET ASSETS
Applicable to Investors' Beneficial Interests $58,831,307
-----------
-----------
</TABLE>
See Accompanying Notes.
19
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD APRIL 11, 1994 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1C)
Interest $ 2,034,388
-----------
EXPENSES
Advisory Fee (Note 2a) $ 120,281
Professional Fees 46,655
Custodian Fees and Expenses 28,066
Fund Services Fee (Note 2d) 4,140
Administration Fee (Note 2b) 2,563
Amortization of Organization Expenses (Note 1b) 2,231
Trustees' Fees and Expenses (Note 2e) 1,319
Miscellaneous 728
---------
Total Expenses 205,983
Less: Reimbursement of Expenses (Note 2c) (11,830)
---------
NET EXPENSES 194,153
-----------
NET INVESTMENT INCOME 1,840,235
NET REALIZED LOSS ON INVESTMENTS (125,677)
NET CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS 984,015
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,698,573
-----------
-----------
</TABLE>
See Accompanying Notes.
20
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
PERIOD APRIL
11, 1994
(COMMENCEMENT
OF
OPERATIONS)
TO MARCH 31,
INCREASE IN NET ASSETS 1995
-------------
<S> <C>
FROM OPERATIONS
Net Investment Income $ 1,840,235
Net Realized Loss on Investments (125,677)
Net Change in Unrealized Appreciation of Investments 984,015
-------------
Net Increase in Net Assets Resulting from Operations 2,698,573
-------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS
Contributions 72,754,445
Withdrawals (16,721,811)
-------------
Net Increase from Investors' Transactions 56,032,634
-------------
Total Increase in Net Assets 58,731,207
NET ASSETS
Beginning of Period 100,100
-------------
End of Period $58,831,307
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
PERIOD
APRIL 11,
1994
(COMMENCEMENT
OF
OPERATIONS)
TO
MARCH 31,
1995
------------
<S> <C>
Ratios to Average Net Assets
Expenses 0.48%(a)
Net Investment Income 4.59%(a)
Decrease Reflected in Expense Ratio due to Expense Reimbursement by Morgan 0.03%(a)
Portfolio Turnover 63%
<FN>
- ------------------------
(a) Annualized
</TABLE>
See Accompanying Notes.
21
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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 no-load, 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 will 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.
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 period April
11, 1994 (commencement of operations) to March 31, 1995, this fee amounted
to $120,281.
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
22
<PAGE>
THE NEW YORK TOTAL RETURN BOND PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1995
- --------------------------------------------------------------------------------
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 (the
"aggregate portfolios"), 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 period April 11, 1994
(commencement of operations) to March 31, 1995, Signature's fee for these
services amounted to $2,563.
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, brokerage costs and
the amortization of organization expenses, 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 period April 11, 1994 (commencement of operations) to
March 31, 1995, Morgan agreed to reimburse the Portfolio in the amount of
$11,830.
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 $4,140 for the period April 11, 1994 (commencement of
operations) to March 31, 1995.
e)An aggregate annual fee of $55,000 is paid to each Trustee for serving as
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 Portfolio'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 $500.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) for the period April
11, 1994 (commencement of operations) to March 31, 1995, were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------- -------------
<S> <C> <C>
Municipal obligations $ 78,800,174 $ 23,834,570
</TABLE>
23
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Investors of
The New York Total Return Bond Portfolio
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the supplementary data present fairly, in all material
respects, the financial position of The New York Total Return Bond Portfolio
(the "Portfolio") at March 31, 1995, and the results of its operations, the
changes in its net assets and its supplementary data for the period April 11,
1994 (commencement of operations) through March 31, 1995, in conformity with
generally accepted accounting principles. These financial statements and
supplementary data (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at March 31, 1995 by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above.
[/S/ PRICE WATERHOUSE LLP]
PRICE WATERHOUSE LLP
New York, New York
May 23, 1995
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 NY 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
THE
JPM
INSTITUTIONAL
NEW YORK
TOTAL RETURN
BOND FUND
FOR MORE INFORMATION ON THE JPM INSTITUTIONAL FAMILY OF FUNDS, CALL J.P. MORGAN
FUNDS SERVICES AT (800)766-7722.
ANNUAL REPORT
MARCH 31, 1995
