THE JPM INSTITUTIONAL SERVICE TREASURY MONEY MARKET FUND Supplement dated July
17, 1997 to the Prospectuses dated May 30, 1997:
1. The fiscal year end of the Fund is changed from July 31 to October 31.
2. The voluntary expense reimbursement in effect from June 1, 1998-November 30,
1998 for the Fund is extended until February 28, 1999.
3. The following supplements the "Annual Operating Expenses" table in the
Prospectus:
ANNUAL OPERATING EXPENSES*
Advisory Fees (after expense reimbursement) 0.13%
Rule 12b-1 Fees None
Other Expenses (after expense reimbursement) None
Service Fees** 0.25%
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Total Operating Expenses (after expense reimbursement) 0.38%
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4. The following replaces in its entirety the last two paragraphs under
"Expense Table - Annual Operating Expenses" in the Prospectus:
The Total Operating Expenses for the Fund is a blended ratio which is based on
the reimbursements in effect from August 1, 1997 through October 31, 1998 and
may not necessarily represent the actual amount incurred by a shareholder at any
particular time during the periods indicated; the actual amount may be higher or
lower than that shown above depending on the date of purchase and length of
holding period of Fund shares. Without any expense reimbursements, the Advisory
Fee, Estimated Other Expenses and Total Operating Expenses would be equal on an
annual basis to 0.20%, 0.26% and 0.71%, respectively, of the average daily net
assets of the Fund.
** Under the Trust's Service Plan, up to 0.25% is payable to Service
Organizations, as defined below (0.20% in cases where Morgan or an affiliate is
the Service Organization). Service Organizations may charge other fees to their
customers who are the beneficial owners of shares in connection with their
customers' accounts. See "Service Organizations." Such fees, if any, will affect
the return such customers realize with respect to their investments.
5. The sub-section entitled "Service Organizations" in the Prospectus is
replaced in its entirety with the following:
SERVICE ORGANIZATIONS. The Trust has adopted a Service Plan with respect to Fund
shares which authorizes it to compensate Service Organizations, including Morgan
and its affiliates, for providing account administration and other services to
their customers who are beneficial owners of such shares. The Fund will enter
into agreements with Service Organizations which purchase shares on behalf of
their customers ("Service Agreements"). The Service Agreements will provide for
compensation to the Service Organization in an amount up to 0.25 of 1% (0.20 of
1% in cases where Morgan or an affiliate is the Service Organization) on an
annualized basis of the average daily net asset value of the shares of the Fund
attributable to or held in the name of the Service Organization for its
customers. The services provided by a Service Organization may include acting,
directly or through an agent, as the sole shareholder of record, maintaining or
assisting in maintaining account records for its customers, and processing or
assisting in processing orders to purchase and redeem shares for its customers.
Holders of shares of the Fund will bear all expenses and fees paid to Service
Organizations with respect to such shares as well as any other expenses which
are directly attributable to such shares.
Service Organizations may charge other fees to their customers who are the
beneficial owners of shares in connection with their customer accounts. These
fees would be in addition to any amounts received by the Service Organization
under a Service Agreement and such fees, if any, will affect an investor's
return with respect to an investment in the Fund. Such charges may vary among
Service Organizations but in all cases will be retained by the Service
Organization and not remitted to the Fund.
