As filed with the Securities and Exchange Commission on September 28, 1998.
Registration Nos. 033-54642 and 811-07342
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 56
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 57
J.P. MORGAN INSTITUTIONAL FUNDS
(formerly The JPM Institutional Funds)
(Exact Name of Registrant as Specified in Charter)
60 State Street, Suite 1300, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code:
(617) 557-0700
Margaret W. Chambers, c/o Funds Distributor, Inc.
60 State Street, Suite 1300, Boston, Massachusetts 02109
(Name and Address of Agent for Service)
Copy to: Stephen K. West, Esq.
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
It is proposed that this filing will become effective (check appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b)
[X] on October 1, 1998 pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
The Series Portfolio, The U.S. Equity Portfolio and The U.S. Small Company
Portfolio have also executed this registration statement.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
EXPLANATORY NOTE
This post-effective amendment No. 56 to the registration statement of
J.P. Morgan Institutional Funds (the "Registrant") on Form N-1A is being filed
to update the Registrant's disclosure in the Prospectuses and Statement of
Additional Information relating to J.P. Morgan Institutional Disciplined Equity,
U.S. Equity and U.S. Small Company funds (the "Funds"), separate series of
shares of the Registrant, with financial information for the fiscal year ended
May 31, 1998 and to update other information in the registration statement. As a
result, the Amendment does not affect any of the Registrant's other currently
effective prospectuses or statements of additional information for each other
series of shares of the Registrant.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
- --------------------------------------------------------------------------------
|
OCTOBER 1, 1998 | PROSPECTUS
|
================================================================================
J.P. MORGAN INSTITUTIONAL
U.S. SMALL COMPANY FUND
===================================
Seeking to outperform the market in
which it invests over the long term
through a disciplined management
approach
This prospectus contains essential information for anyone investing in the fund.
Please read it carefully and keep it for reference.
Shares in the fund are not bank deposits and are not guaranteed or insured by
any bank, government entity, or the FDIC.
As with all mutual funds, the fact that these shares are registered with the
Securities and Exchange Commission does not mean that the commission approves
them as an investment or guarantees that the information in this prospectus is
correct or adequate. It is a criminal offense for anyone to state or suggest
otherwise.
Distributed by Funds Distributor, Inc.
[LOGO] JPMorgan
<PAGE>
CONTENTS
<TABLE>
====================================================================================================================================
<S> <C>
2 | U.S. EQUITY MANAGEMENT APPROACH
U.S. equity investment process ...........................................................2
4 | J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY FUND
The fund's goal, investment approach, Fund description .........................................................................4
risks, expenses, performance
and financial highlights Investor expenses ........................................................................4
Performance ..............................................................................5
Financial highlights......................................................................5
6 | YOUR INVESTMENT
Investing in the J.P. Morgan Investing through a financial professional ...............................................6
Institutional Small
Company Fund Investing through an employer-sponsored retirement plan ..................................6
Investing through an IRA or Rollover IRA .................................................6
Investing directly .......................................................................6
Opening your account .....................................................................6
Adding to your account ...................................................................6
Selling shares ...........................................................................7
Account and transaction policies .........................................................7
Dividends and distributions ..............................................................8
Tax considerations .......................................................................8
9 | FUND DETAILS
More about risk and the fund's Master/feeder structure ..................................................................9
business operations
Management and administration ............................................................9
Risk and reward elements ................................................................10
FOR MORE INFORMATION ............................................................back cover
</TABLE>
<PAGE>
INTRODUCTION
================================================================================
J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY FUND
This fund invests primarily in U.S. small company stocks by investing through a
master portfolio (another fund with the same goal). As a shareholder, you should
anticipate risks and rewards beyond those of a typical bond, balanced or
large-cap equity fund.
WHO MAY WANT TO INVEST
The fund is designed for investors who:
o are pursuing a long-term goal such as retirement
o want to add an investment with growth potential to further diversify a
portfolio
o want a fund that seeks to outperform the market in which it invests over
the long term
The fund is not designed for investors who:
o want a fund that pursues market trends or focuses only on particular
industries or sectors
o require regular income or stability of principal
o are pursuing a short-term goal or investing emergency reserves
J.P. MORGAN
Known for its commitment to proprietary research and its disciplined investment
strategies, J.P. Morgan is the asset management choice for many of the world's
most respected corporations, financial institutions, governments, and
individuals. Today, J.P. Morgan employs over 300 analysts and portfolio managers
around the world and has more than $275 billion in assets under management,
including assets managed by the fund's advisor, J.P. Morgan Investment
Management Inc.
========================================
Before you invest
Investors considering the fund should
understand that:
o The value of the fund's shares will
fluctuate over time. You could lose
money if you sell when the fund's
share price is lower than when you
invested.
o There is no assurance that the fund
will meet its investment goal.
o Future returns will not necessarily
resemble past performance.
- ----------------------------------------
|
| 1
|
<PAGE>
U.S. EQUITY MANAGEMENT APPROACH
================================================================================
The J.P. Morgan Institutional U.S. Small
Company Fund invests primarily in U.S.
small company stocks.
The fund's investment philosophy,
developed by its advisor, focuses on
stock picking while largely avoiding
sector or market-timing strategies.
Also, under normal market conditions,
the fund will remain fully invested.
U.S. EQUITY INVESTMENT PROCESS
In managing the fund, J.P. Morgan
employs a three-step process:
[GRAPHIC] Research J.P. Morgan takes an in-depth
look at company prospects over a
J.P. Morgan analysts develop relatively long period -- often as much
proprietary fundamental research as five years -- rather than focusing on
near-term expectations. This approach is
designed to provide insight into a
company's real growth potential. J.P.
Morgan's in-house research is developed
by an extensive worldwide network of
over 120 career analysts. The team of
analysts dedicated to U.S. equities
includes more than 20 members, with an
average of over ten years of experience.
[GRAPHIC] Valuation The research findings allow
J.P. Morgan to rank the companies in
Stocks in each industry are ranked each industry group according to their
with the help of models relative value. The greater a company's
estimated worth compared to the current
market price of its stock, the more
undervalued the company. The valuation
rankings are produced with the help of a
variety of models that quantify the
research team's findings.
[GRAPHIC] Stock selection The fund buys and sells
stocks according to its own policies,
Using research and valuations, using the research and valuation
the fund's management team rankings as a basis. In general, the
chooses stocks for its fund management team buys stocks that are
identified as undervalued and considers
selling them when they appear
overvalued. Along with attractive
valuation, the fund's managers often
consider a number of other criteria:
o catalysts that could trigger a rise
in a stock's price
o high potential reward compared to
potential risk
o temporary mispricings caused by
market overreactions
|
2 | U.S. EQUITY MANAGEMENT APPROACH
|
<PAGE>
================================================================================
(THIS PAGE IS INTENTIONALLY LEFT BLANK)
|
| 3
|
<PAGE>
J.P. MORGAN INSTITUTIONAL
U.S. SMALL COMPANY FUND TICKER SYMBOL: JUSSX
================================================================================
REGISTRANT: J.P. MORGAN INSTITUTIONAL FUNDS
(J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY FUND)
[GRAPHIC] GOAL
The fund's goal is to provide high total return from a portfolio of small
company stocks. This goal can be changed without shareholder approval.
[GRAPHIC] INVESTMENT APPROACH
The fund invests primarily in small and medium sized U.S. companies whose
market capitalizations are greater than $110 million and less than $2.5 billion.
Industry by industry, the fund's weightings are similar to those of the Russell
2000 Index. The fund can moderately underweight or overweight industries when it
believes it will benefit performance.
Within each industry, the fund focuses on those stocks that are ranked as most
undervalued according to the process described on page 2. The fund generally
considers selling stocks that appear overvalued or have grown into large-cap
stocks.
[GRAPHIC] POTENTIAL RISKS AND REWARDS
The value of your investment in the fund will fluctuate in response to
movements in the stock market. Fund performance will also depend on the
effectiveness of J.P. Morgan's research and the management team's stock picking
decisions.
Small-cap stocks have historically offered higher long-term growth than
large-cap stocks, and have also involved higher risks. The fund's small-cap
emphasis means it is likely to be more sensitive to economic news and is likely
to fall further in value during broad market downturns. The fund pursues returns
that exceed those of the Russell 2000 Index while seeking to limit its
volatility relative to this index.
The fund's securities are described in more detail on page 10, along with their
main risks, which may cause the fund's share price to decline, and the fund's
strategies to reduce these risks.
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages over $275
billion, including more than $2.4 billion using the same strategy as the fund.
The portfolio management team is led by Denise Higgins, Candice Eggerss and
Stephen J. Rich, all vice presidents. Ms. Higgins joined the team in January of
1998 and has been with J.P. Morgan since 1994. Prior to managing the fund, Ms.
Higgins served as a balanced and equity portfolio manager and member of the U.S.
asset allocation committee, and prior to 1994 was a mid-to-small cap portfolio
manager at Lord Abbett & Company. Ms. Eggerss has been with J.P. Morgan since
May of 1996 as a member of the U.S. small company portfolio management team and
from June of 1993 to May of 1996 held a similar position with Weiss, Peck and
Greer. Mr. Rich joined the team in January of 1997 and has been at J.P. Morgan
since 1991, and prior to managing the fund held positions in J.P. Morgan's
structured equity and balanced/equity groups.
================================================================================
INVESTOR EXPENSES
The current expenses you should expect to pay as an investor in the fund are
shown at right. The fund has no sales, redemption, exchange, or account fees,
although some institutions may charge you a fee for shares you buy through them.
The annual fund expenses shown are deducted from fund assets prior to
performance calculations.
Footnotes for this section are shown on next page.
<TABLE>
<CAPTION>
================================================================================
Annual fund operating expenses(1) (%)
================================================================================
<S> <C>
Management fees (actual) 0.60
Marketing (12b-1) fees none
Other expenses(2)
(after reimbursement) 0.20
================================================================================
Total operating expenses(2)
(after reimbursement) 0.80
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
================================================================================
Expense example
================================================================================
The example below uses the same assumptions as other fund prospectuses: $1,000
initial investment, 5% annual total return, expenses unchanged, all shares sold
at the end of each time period. The example is for comparison only; the fund's
actual return and expenses will be different.
- --------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
<S> <C> <C> <C> <C>
Your cost($) 8 26 44 99
- --------------------------------------------------------------------------------
</TABLE>
|
4 | J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY FUND
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PERFORMANCE (unaudited)
=================================
Average annual total return (%) Shows performance over time, for periods ended December 31, 1996
=================================---------------------------------------------------------------------------------------------------
1 yr. 5 yrs. 10 yrs. Since Inception(3)
<S> <C> <C> <C> <C>
J.P. Morgan Institutional U.S. Small Company Fund(3) (after expenses) 22.70 14.87 15.47 14.40
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 2500 Index(4) (no expenses) 24.36 17.59 16.94 14.89
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 2000 Index(4) (no expenses) 22.36 16.41 15.76 13.04
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=================================
Year-by-year total return (%) Shows changes in returns by calendar year
=================================---------------------------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
J.P. Morgan Institutional
U.S. Small Company Fund 13.67 29.01 (24.34) 59.59 18.98 8.59 (5.81) 31.88 20.84 22.70
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 2500 Index(4) 22.73 19.43 (14.88) 46.70 16.19 16.54 (1.06) 31.70 19.03 24.36
- ------------------------------------------------------------------------------------------------------------------------------------
Russell 2000 Index(4) 22.36
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
=================================
Per-share data For fiscal periods ended May 31
=================================--------------------------------------------------------------------------------------------------
1994(3) 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 10.00 10.03 11.16 13.97 14.09
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) ($) 0.04 0.10 0.13 0.10 0.09
Net realized and unrealized gain
on investment ($) -- 1.12 3.66 1.07 3.04
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.04 1.22 3.79 1.17 3.13
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income ($) (0.01) (0.09) (0.12) (0.13) (0.08)
Net realized gain ($) -- -- (0.86) (0.92) (1.84)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions ($) (0.01) (0.09) (0.98) (1.05) (1.92)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 10.03 11.16 13.97 14.09 15.30
- -----------------------------------------------------------------------------------------------------------------------------------
=================================
Ratios and supplemental data
=================================--------------------------------------------------------------------------------------------------
Total return (%) 0.42(5) 12.26 35.60 9.44 23.55
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 74,141 149,279 291,931 401,797 420,413
Ratio to average net assets:
Expenses (%) 0.80(6) 0.80 0.80 0.80 0.80
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (%) 0.93(6) 1.14 1.20 0.81 0.55
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement and including interest expense (%) 1.07(6) 0.91 0.83 0.85 0.85
- -----------------------------------------------------------------------------------------------------------------------------------
Interest expense (%) -- -- -- -- 0.00(7)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Financial Highlights above have been audited by PricewaterhouseCoopers LLP,
the fund's independent accountants.
(1) The fund has a master/feeder structure as described on page 9. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year, expressed as a percentage of the fund's average net
assets and reflecting reimbursement for ordinary expenses over 0.80%.
(2) Without reimbursement, other expenses and total operating expenses would
have been 0.25% and 0.85%, respectively. This reimbursement arrangement can
be changed or terminated at any time at the option of J.P. Morgan.
(3) The fund commenced operations on 7/19/93 and commenced public investment
operations on 11/4/93 and returns reflect performance of The Capital
Appreciation Fund, the fund's predecessor, prior to that date. The Capital
Appreciation Fund commenced operations on 6/27/85.
(4) Effective 3/1/98, the fund's benchmark changed from the Russell 2500 Index,
a widely recognized, unmanaged index used primarily to measure the
performance of small- to medium- cap U.S. stocks, to the Russell 2000
Index, a widely recognized, unmanaged index used primarily to measure the
performance of small-cap U.S. stocks. The Russell 2000 Index represents the
returns of small-cap stocks only, better captures that universe's
performance and fits more neatly into an investor's asset allocation model.
(5) Not annualized.
(6) Annualized.
(7) Less than 0.01%.
|
J.P. Morgan Institutional U.S. Small Company Fund | 5
|
<PAGE>
YOUR INVESTMENT
================================================================================
For your convenience, the J.P. Morgan Institutional Funds offer several ways to
start and add to fund investments.
INVESTING THROUGH A FINANCIAL PROFESSIONAL
If you work with a financial professional, either at J.P. Morgan or elsewhere,
he or she is prepared to handle your planning and transaction needs. Your
financial professional will be able to assist you in establishing your fund
account, executing transactions, and monitoring your investment. If your fund
investment is not held in the name of your financial professional and you prefer
to place a transaction order yourself, please use the instructions for investing
directly.
INVESTING THROUGH AN EMPLOYER-SPONSORED RETIREMENT PLAN
Your fund investments are handled through your plan. Refer to your plan
materials or contact your benefits office for information on buying, selling, or
exchanging fund shares.
INVESTING THROUGH AN IRA OR ROLLOVER IRA
Please contact a J.P. Morgan Retirement Services Specialist at 1-888-576-4472
for information on J.P. Morgan's comprehensive IRA services, including lower
minimum investments.
INVESTING DIRECTLY
Investors may establish accounts without the help of an intermediary by using
the instructions below and at right:
o Determine the amount you are investing. The minimum amount for initial
investments in the fund is $1,000,000 and for additional investments
$25,000, although these minimums may be less for some investors. For more
information on minimum investments, call 1-800-766-7722.
o Complete the application, indicating how much of your investment you want
to allocate to which fund(s). Please apply now for any account privileges
you may want to use in the future, in order to avoid the delays associated
with adding them later on.
o Mail in your application, making your initial investment as shown at right.
For answers to any questions, please speak with a J.P. Morgan Funds Services
Representative at 1-800-766-7722.
OPENING YOUR ACCOUNT
By wire
o Mail your completed application to the Shareholder Services Agent.
o Call the Shareholder Services Agent to obtain an account number and to
place a purchase order. Funds that are wired without a purchase order will
be returned uninvested.
o After placing your purchase order, instruct your bank to wire the amount of
your investment to:
Morgan Guaranty Trust Company of New York
Routing number: 021-000-238
Credit: J.P. Morgan Institutional Funds
Account number: 001-57-689
FFC: your account number, name of registered owner(s) and fund name
By check
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with your completed application to the Shareholder Services
Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ADDING TO YOUR ACCOUNT
By wire
o Call the Shareholder Services Agent to place a purchase order. Funds that
are wired without a purchase order will be returned uninvested.
o Once you have placed your purchase order, instruct your bank to wire the
amount of your investment as described above.
BY CHECK
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with a completed investment slip to the Shareholder Services
Agent. If you do not have an investment slip, attach a note indicating your
account number and how much you wish to invest in which fund(s).
By exchange
o Call the Shareholder Services Agent to effect an exchange.
|
6 | YOUR INVESTMENT
|
<PAGE>
================================================================================
SELLING SHARES
By phone - wire payment
o Call the Shareholder Services Agent to verify that the wire redemption
privilege is in place on your account. If it is not, a representative can
help you add it.
o Place your wire request. If you are transferring money to a non-Morgan
account, you will need to provide the representative with the personal
identification number (PIN) that was provided to you when you opened your
fund account.
By phone - check payment
o Call the Shareholder Services Agent and place your request. Once your
request has been verified, a check for the net amount, payable to the
registered owner(s), will be mailed to the address of record. For checks
payable to any other party or mailed to any other address, please make your
request in writing (see below).
In writing
o Write a letter of instruction that includes the following information: The
name of the registered owner(s) of the account; the account number; the
fund name; the amount you want to sell; and the recipient's name and
address or wire information, if different from those of the account
registration.
o Indicate whether you want the proceeds sent by check or by wire.
o Make sure the letter is signed by an authorized party. The Shareholder
Services Agent may require additional information, such as a signature
guarantee.
o Mail the letter to the Shareholder Services Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ACCOUNT AND TRANSACTION POLICIES
Telephone orders The fund accepts telephone orders from all shareholders. To
guard against fraud, the fund requires shareholders to use a PIN, and may record
telephone orders or take other reasonable precautions. However, if the fund does
take such steps to ensure the authenticity of an order, you may bear any loss if
the order later proves fraudulent.
Exchanges You may exchange shares in this fund for shares in any other J.P.
Morgan Institutional or J.P. Morgan mutual fund at no charge (subject to the
securities laws of your state). When making exchanges, it is important to
observe any applicable minimums. Keep in mind that for tax purposes an exchange
is considered a sale.
The fund may alter, limit, or suspend its exchange policy at any time.
Business hours and NAV calculations The fund's regular business days and hours
are the same as those of the New York Stock Exchange (NYSE). The fund calculates
its net asset value per share (NAV) every business day as of the close of
trading on the NYSE (normally 4:00 p.m. eastern time). The fund's securities are
typically priced using market quotes or pricing services. When these methods
are not available or do not represent a security's value at the time of pricing,
the security is valued in accordance with the fund's fair valuation procedures.
Timing of orders Orders to buy or sell shares are executed at the next NAV
calculated after the order has been accepted. Orders are accepted until the
close of trading on the NYSE every business day and are executed the same day,
at that day's NAV. The fund has the right to suspend redemption of shares and to
postpone payment of proceeds for up to seven days or as permitted by law.
================================================================================
Shareholder Services Agent
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
1-800-766-7722
Representatives are available 8:00 a.m. to 5:00 p.m.
eastern time on fund business days.
|
YOUR INVESTMENT | 7
|
<PAGE>
================================================================================
Timing of settlements When you buy shares, you will become the owner of record
when the fund receives your payment, generally the day following execution. When
you sell shares, proceeds are generally available the day following execution
and will be forwarded according to your instructions.
When you sell shares that you recently purchased by check, your order will be
executed at the next NAV but the proceeds will not be available until your check
clears. This may take up to 15 days.
Statements and reports The fund sends monthly account statements as well as
confirmations after each purchase or sale of shares (except reinvestments).
Every six months the fund sends out an annual or semi-annual report containing
information on the fund's holdings and a discussion of recent and anticipated
market conditions and fund performance.
Accounts with below-minimum balances If your account balance falls below the
minimum for 30 days as a result of selling shares (and not because of
performance), the fund reserves the right to request that you buy more shares or
close your account. If your account balance is still below the minimum 60 days
after notification, the fund reserves the right to close out your account and
send the proceeds to the address of record.
DIVIDENDS AND DISTRIBUTIONS
The fund typically pays income dividends two times a year and makes capital
gains distributions, if any, once per year (usually in August). However, the
fund may make more or fewer payments in a given year, depending on its
investment results and its tax compliance situation. These dividends and
distributions consist of most or all of the fund's net investment income and net
realized capital gains.
Dividends and distributions are reinvested in additional fund shares.
Alternatively, you may instruct your financial professional or J.P. Morgan Funds
Services to have them sent to you by check, credited to a separate account, or
invested in another J.P. Morgan Institutional Fund.
TAX CONSIDERATIONS
In general, selling shares, exchanging shares, and receiving distributions
(whether reinvested or taken in cash) are all taxable events. These transactions
typically create the following tax liabilities for taxable accounts:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Transaction Tax status
- --------------------------------------------------------------------------------
<S> <C>
Income dividends Ordinary income
Short-term capital gains Ordinary income
distributions
Long-term capital gains Capital gains
distributions
Sales or exchanges of shares Capital gains or losses
owned for more than one year
Sales or exchanges of shares Gains are treated as ordinary
owned for one year or less income; losses are subject
to special rules
- --------------------------------------------------------------------------------
</TABLE>
Because long-term capital gains distributions are taxable as capital gains
regardless of how long you have owned your shares, you may want to avoid making
a substantial investment when the fund is about to declare a long-term capital
gains distribution.
Every January, the fund issues tax information on its distributions for the
previous year.
Any investor for whom the fund does not have a valid
taxpayer identification number will be subject to backup withholding for taxes.
The tax considerations described in this section do not apply to tax-deferred
accounts or other non-taxable entities.
Because each investor's tax circumstances are unique, please consult your tax
professional about your fund investment.
|
8 | YOUR INVESTMENT
|
<PAGE>
FUND DETAILS
================================================================================
MASTER/FEEDER STRUCTURE
As noted earlier, the fund is a "feeder" fund that invests in a master
portfolio. (Except where indicated, this prospectus uses the term "the fund" to
mean the feeder fund and its master portfolio taken together.)
The master portfolio accepts investments from other feeder funds, and the
feeders bear the master portfolio's expenses in proportion to their assets.
However, each feeder can set its own transaction minimums, fund-specific
expenses, and other conditions. This means that one feeder could offer access to
the same master portfolio on more attractive terms, or could experience better
performance, than another feeder. Information about other feeders is available
by calling 1-800-766-7722. Generally, when the master portfolio seeks a vote,
the fund will hold a shareholder meeting and cast its vote proportionately, as
instructed by its shareholders. Fund shareholders are entitled to one full or
fractional vote for each dollar or fraction of a dollar invested.
The fund and its master portfolio expect to maintain consistent goals, but if
they do not, the fund will withdraw from the master portfolio, receiving its
assets either in cash or securities. The fund's trustees would then consider
whether the fund should hire its own investment adviser, invest in a different
master portfolio, or take other action.
MANAGEMENT AND ADMINISTRATION
The fund and its master portfolio are governed by the same trustees. The
trustees are responsible for overseeing all business activities. The trustees
are assisted by Pierpont Group, Inc., which they own and operate on a cost
basis; costs are shared by all funds governed by these trustees. Funds
Distributor, Inc., as co-administrator, provides fund officers. J.P. Morgan, as
co-administrator, along with J.P. Morgan, oversees the fund's other service
providers.
J.P. Morgan, subject to the expense reimbursements described earlier in this
prospectus, receives the following fees for investment advisory and other
services:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Advisory services 0.60% of the master
portfolio's average net assets
- --------------------------------------------------------------------------------
<S> <C>
Administrative services Master portfolio's and fund's
(fee shared with Funds pro-rata portions of 0.09% of
Distributor, Inc.) the first $7 billion in
J.P. Morgan-advised portfolios,
plus 0.04% of average
net assets over $7 billion
- --------------------------------------------------------------------------------
Shareholder services 0.10% of the fund's average
net assets
- --------------------------------------------------------------------------------
</TABLE>
J.P. Morgan may pay fees to certain firms and professionals for providing
recordkeeping or other services in connection with investments in the fund.
Year 2000 Fund operations and shareholders could be adversely affected if the
computer systems used by J.P. Morgan, the fund's other service providers and
other entities with computer systems linked to the fund do not properly process
and calculate January 1, 2000 and after date-related information. J.P. Morgan is
working to avoid these problems and to obtain assurances from other service
providers that they are taking similar steps. However, it is not certain that
these actions will be sufficient to prevent these problems from adversely
impacting fund operations and shareholders. In addition, to the extent that
operations of issuers of securities held by the fund are impaired by
date-related problems or prices of securities decline as a result of real or
perceived date-related problems of issuers held by the fund or generally, the
net asset value of the fund will decline.
|
FUND DETAILS | 9
|
<PAGE>
================================================================================
RISK AND REWARD ELEMENTS
This table discusses the main elements that make up the fund's overall risk and
reward characteristics (described on page 3). It also outlines the fund's
policies toward various securities, including those that are designed to help
the fund manage risk.
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market conditions
o The fund's share price and o Stocks have generally outperformed o Under normal circumstances the fund
performance will fluctuate in more stable investments (such as plans to remain fully invested,
response to stock market movements bonds and cash equivalents) over with at least 65% in stocks; stock
the long term investments may include U.S. and
o Adverse market conditions may from foreign common stocks, convertible
time to time cause the fund to take securities, preferred stocks, trust
temporary defensive positions that or partnership interests, warrants,
are inconsistent with its principal rights, and investment company
investment strategies and may securities
hinder the fund from achieving its
investment objective o The fund seeks to limit risk
through diversification
o During severe market downturns, the
fund has the option of investing up
to 100% of assets in investment-grade
short-term securities
- ------------------------------------------------------------------------------------------------------------------------------------
Management choices
o The fund could underperform its o The fund could outperform its o J.P. Morgan focuses its active
benchmark due to its securities and benchmark due to these same choices management on securities selection,
asset allocation choices the area where it believes its
commitment to research can most
enhance returns
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign investments
o Currency exchange rate movements o Favorable exchange rate movements o The fund anticipates that its total
could reduce gains or create losses could generate gains or reduce foreign investments will not exceed
losses 20% of assets.
o The fund could lose money because
of foreign government actions, o Foreign investments, which o The fund actively manages the
political instability, or lack of represent a major portion of the currency exposure of its foreign
adequate and accurate information world's securities, offer investments relative to its
attractive potential performance benchmark, and may hedge back into
and opportunities for the U.S. dollar from time to time
diversification (see also "Derivatives")
- ------------------------------------------------------------------------------------------------------------------------------------
Derivatives
o Derivatives such as futures, o Hedges that correlate well with o The fund uses derivatives for
options, swaps and forward foreign underlying positions can reduce or hedging and for risk management
currency contracts that are used eliminate losses at low cost (i.e., to establish or adjust
for hedging the portfolio or exposure to particular securities,
specific securities may not fully o The fund could make money and markets or currencies); risk
offset the underlying positions(1) protect against losses if management may include management
management's analysis proves of the fund's exposure relative to
o Derivatives used for risk correct its benchmark
management may not have the
intended effects and may result in o Derivatives that involve leverage o The fund only establishes hedges
losses or missed opportunities could generate substantial gains at that it expects will be highly
low cost correlated with underlying
o The counterparty to a derivatives positions
contract could default
o While the fund may use derivatives
o Derivatives that involve leverage that incidentally involve leverage,
could magnify losses it does not use them for the
specific purpose of leveraging the
portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A futures contract is an agreement to buy or sell a set quantity of an
underlying instrument at a future date, or to make or receive a cash
payment based on changes in the value of a securities index. An option is
the right to buy or sell a set quantity of an underlying instrument at
pre-determined price. A swap is a privately negotiated agreement to
exchange one stream of payments for another. A forward foreign currency
contract is an obligation to buy or sell a given currency on a future date
and at a set price.
|
10 | FUND DETAILS
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Illiquid holdings
o The fund could have difficulty o These holdings may offer more o The fund may not invest more than
valuing these holdings precisely attractive yields or potential 15% of net assets in illiquid
growth than comparable widely holdings
o The fund could be unable to sell traded securities
these holdings at the time or price o To maintain adequate liquidity to
it desires meet redemptions, the fund may hold
investment-grade short-term
securities (including repurchase
agreements) and, for temporary or
extraordinary purposes, may borrow
from banks up to 33 1/3% of its
assets
- ------------------------------------------------------------------------------------------------------------------------------------
When-issued and delayed
delivery securities
o When the fund buys securities o The fund can take advantage of o The fund uses segregated accounts
before issue or for delayed attractive transaction to offset leverage risk
delivery, it could be exposed to opportunities
leverage risk if it does not use
segregated accounts
- ------------------------------------------------------------------------------------------------------------------------------------
Short-term trading
o Increased trading would raise the o The fund could realize gains in a o The fund anticipates a portfolio
fund's brokerage and related costs short period of time turnover rate of approximately 100%
o Increased short-term capital gains o The fund could protect against o The fund generally avoids
distributions would raise losses if a stock is overvalued and short-term trading, except to take
shareholders' income tax liability its value later falls advantage of attractive or
unexpected opportunities or to meet
demands generated by shareholder
activity
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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FUND DETAILS | 11
|
<PAGE>
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|
12 |
|
<PAGE>
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| 13
|
<PAGE>
================================================================================
FOR MORE INFORMATION
================================================================================
For investors who want more information on the fund, the following documents are
available free upon request:
Annual/Semi-annual Reports Contain financial statements, performance data,
information on portfolio holdings, and a written analysis of market conditions
and fund performance for the fund's most recently completed fiscal year or
half-year.
Statement of Additional Information (SAI) Provides a fuller technical and legal
description of the fund's policies, investment restrictions, and business
structure. This prospectus incorporates the SAI by reference.
Copies of the current versions of these documents, along with other information
about the fund, may be obtained by contacting:
J.P. Morgan Institutional U.S. Small Company Fund
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
Telephone: 1-800-766-7722
Hearing impaired: 1-888-468-4015
Email: [email protected]
Text-only versions of these documents and this prospectus are available, upon
payment of a duplicting fee, from the Public Reference Room of the Securities
and Exchange Commission in Washington, D.C. (1-800-SEC-0330) and may be viewed
on-screen or downloaded from the SEC's Internet site at http://www.sec.gov. The
fund's investment company and 1933 Act registration numbers are 811-07342 and
033-54642.
J.P. MORGAN INSTITUTIONAL FUNDS AND THE MORGAN TRADITION
The J.P. Morgan Institutional Funds combine a heritage of integrity and
financial leadership with comprehensive, sophisticated analysis and management
techniques. Drawing on J.P. Morgan's extensive experience and depth as an
investment manager, the J.P. Morgan Institutional Funds offer a broad array of
distinctive opportunities for mutual fund investors.
[LOGO] JPMorgan
================================================================================
J.P. Morgan Institutional Funds
Advisor Distributor
J.P. Morgan Investment Managment Inc. Funds Distributor, Inc.
522 Fifth Avenue 60 State Street
New York, NY 10036 Boston, MA 02109
1-800-766-7722 1-800-221-7930
PROS384-9810
<PAGE>
- --------------------------------------------------------------------------------
|
OCTOBER 1, 1998 | Prospectus
|
================================================================================
J.P. MORGAN INSTITUTIONAL
U.S. EQUITY FUND
=========================================
Seeking to outperform the market in which
it invests over the long term through a
disciplined management approach
This prospectus contains essential information for anyone investing in the fund.
Please read it carefully and keep it for reference.
Shares in the fund are not bank deposits and are not guaranteed or insured by
any bank, government entity, or the FDIC.
As with all mutual funds, the fact that these shares are registered with the
Securities and Exchange Commission does not mean that the commission approves
them as an investment or guarantees that the information in this prospectus is
correct or adequate. It is a criminal offense for anyone to state or suggest
otherwise.
[LOGO] JPMorgan
Distributed by Funds Distributor, Inc.
<PAGE>
CONTENTS
<TABLE>
====================================================================================================================================
<S> <C>
2 | U.S. EQUITY MANAGEMENT APPROACH
U.S. equity investment process .............................................2
4 | J.P. MORGAN INSTITUTIONAL U.S. EQUITY FUND
Fund description ...........................................................4
The fund's goal, investment approach,
risks, expenses, performance, and Investor expenses ..........................................................4
financial highlights
Performance ................................................................5
Financial highlights .......................................................5
6 | YOUR INVESTMENT
Investing through a financial professional .................................6
Investing in the J.P. Morgan Institutional
U.S. Equity Fund Investing through an employer-sponsored retirement plan ....................6
Investing through an IRA or Rollover IRA ...................................6
Investing directly .........................................................6
Opening your account .......................................................6
Adding to your account .....................................................6
Selling shares .............................................................7
Account and transaction policies ...........................................7
Dividends and distributions ................................................8
Tax considerations .........................................................8
9 | FUND DETAILS
Master/feeder structure ....................................................9
More about risk and the fund's
business operations Management and administration ..............................................9
Risk and reward elements ..................................................10
FOR MORE INFORMATION ...............................................back cover
</TABLE>
<PAGE>
INTRODUCTION
================================================================================
J.P. MORGAN INSTITUTIONAL U.S.EQUITY FUND
This fund invests primarily in U.S. stocks by investing through a master
portfolio (another fund with the same goal). As a shareholder, you should
anticipate risks and rewards beyond those of a typical bond fund or a typical
balanced fund.
WHO MAY WANT TO INVEST
The fund is designed for investors who:
o are pursuing a long-term goal such as retirement
o want to add an investment with growth potential to further diversify a
portfolio
o want a fund that seeks to outperform the market in which it invests over
the long term
The fund is not designed for investors who:
o want a fund that pursues market trends or focuses only on particular
industries or sectors
o require regular income or stability of principal
o are pursuing a short-term goal or investing emergency reserves
J.P. MORGAN
Known for its commitment to proprietary research and its disciplined investment
strategies, J.P. Morgan is the asset management choice for many of the world's
most respected corporations, financial institutions, governments, and
individuals. Today, J.P. Morgan employs over 300 analysts and portfolio managers
around the world and has more than $275 billion in assets under management,
including assets managed by the fund's advisor, J.P. Morgan Investment
Management Inc.
=========================================
Before you invest
Investors considering the fund should
understand that:
o The value of the fund's shares will
fluctuate over time. You could lose
money if you sell when the fund's
share price is lower than when you
invested.
o There is no assurance that the fund
will meet its investment goal.
o Future returns will not necessarily
resemble past performance.
- -----------------------------------------
|
| 1
|
<PAGE>
U.S. EQUITY MANAGEMENT APPROACH
================================================================================
The J.P. Morgan Institutional U.S.
Equity Fund invests primarily in U.S.
stocks.
The fund's investment philosophy,
developed by its advisor, focuses on
stock picking while largely avoiding
sector or market-timing strategies.
Also, under normal market conditions,
the fund will remain fully invested.
U.S. EQUITY INVESTMENT PROCESS
In managing the fund, J.P. Morgan
employs a three-step process:
Research J.P. Morgan takes an
in-depth look at company prospects
over a relatively long period --
often as much as five years -- rather
[GRAPHIC] than focusing on near-term
expectations. This approach is
J.P. Morgan analysts develop proprietary designed to provide insight into a
fundamental research company's real growth potential. J.P.
Morgan's in-house research is
developed by an extensive worldwide
network of over 120 career analysts.
The team of analysts dedicated to
U.S. equities includes more than 20
members, with an average of over ten
years of experience.
Valuation The research findings allow
J.P. Morgan to rank the companies in
each industry group according to
their relative value. The greater a
company's estimated worth compared to
[GRAPHIC] the current market price of its
stock, the more undervalued the
Stocks in each industry are ranked company. The valuation rankings are
with the help of models produced with the help of a variety
of models that quantify the research
team's findings.
Stock selection The fund buys and
sells stocks according to its own
policies, using the research and
valuation rankings as a basis. In
general, the management team buys
stocks that are identified as
[GRAPHIC] undervalued and considers selling
them when they appear overvalued.
Using research and valuations, Along with attractive valuation, the
the fund's management team fund's managers often consider a
chooses stocks for its fund number of other criteria:
o catalysts that could trigger a
rise in a stock's price
o high potential reward compared
to potential risk
o temporary mispricings caused by
market overreactions
|
2 | U.S. EQUITY MANAGEMENT APPROACH
|
<PAGE>
================================================================================
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|
| 3
|
<PAGE>
J.P. MORGAN INSTITUTIONAL
U.S. EQUITY FUND | TICKER SYMBOL: JMUEX
================================================================================
REGISTRANT: J.P. MORGAN INSTITUTIONAL FUNDS
(J.P. MORGAN INSTITUTIONAL U.S. EQUITY FUND)
[GRAPHIC] GOAL
The fund's goal is to provide high total return from a portfolio of
selected equity securities. This goal can be changed without shareholder
approval.
[GRAPHIC] INVESTMENT APPROACH
The fund invests primarily in large- and medium-capitalization U.S.
companies. Industry by industry, the fund's weightings are similar to those of
the Standard & Poor's 500 Stock Index (S&P 500). The fund can moderately
underweight or overweight industries when it believes it will benefit
performance.
Within each industry, the fund focuses on those stocks that are ranked as most
undervalued according to the investment process described on page 2. The fund
generally considers selling stocks that appear overvalued.
[GRAPHIC] POTENTIAL RISKS AND REWARDS
The value of your investment in the fund will fluctuate in response to
movements in the stock market. Fund performance will also depend on the
effectiveness of J.P. Morgan's research and the management team's stock picking
decisions.
By emphasizing undervalued stocks, the fund has the potential to produce returns
that exceed those of the S&P 500. At the same time, by controlling the industry
weightings of the fund so they can differ only moderately from the industry
weightings of the S&P 500, the fund seeks to limit its volatility to that of the
overall market, as represented by this index.
The fund's securities are described in more detail on page 10, along with their
main risks, which may cause the fund's share price to decline, and the fund's
strategies to reduce these risks.
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages over $275
billion, including more than $12.5 billion using the same strategy as the fund.
The portfolio management team is led by William M. Riegel, Jr., managing
director, who has been on the team since 1993 and has been at J.P. Morgan since
1979, and Henry D. Cavanna, managing director, who joined the team in February
of 1998, and has been at J.P. Morgan since 1971. Both served as managers of U.S.
equity portfolios prior to managing the fund.
================================================================================
INVESTOR EXPENSES
The current expenses you should expect to pay as an investor in the fund are
shown at right. The fund has no sales, redemption, exchange, or account fees,
although some institutions may charge you a fee for shares you buy through them.
The annual fund expenses shown are deducted from fund assets prior to
performance calculations.
Footnotes for this section are shown on next page
<TABLE>
<CAPTION>
================================================================================
Annual fund operating expenses(1) %
================================================================================
<S> <C>
Management fees (actual) 0.40
Marketing (12b-1) fees none
Other expenses(2)
(after reimbursement) 0.20
================================================================================
Total operating expenses(2)
(after reimbursement) 0.60
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
================================================================================
Expense example
================================================================================
The example below uses the same assumptions as other fund prospectuses: $1,000
initial investment, 5% annual total return, expenses unchanged, all shares sold
at the end of each time period. The example is for comparison only; the fund's
actual return and expenses will be different.
- --------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
<S> <C> <C> <C> <C>
Your cost($) 6 19 33 75
- --------------------------------------------------------------------------------
</TABLE>
|
4 | J.P. MORGAN INSTITUTIONAL U.S. EQUITY FUND
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PERFORMANCE (unaudited)
==================================
Average annual total (%) Shows performance over time, for periods ended December 31, 1997
==================================--------------------------------------------------------------------------------------------------
1 yr. 5 yrs. 10 yrs. Since Inception(3)
<S> <C> <C> <C> <C>
J.P. Morgan Institutional U.S. Equity Fund(3) (after expenses) 28.58 18.04 17.65 16.39
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500(4) (no expenses) 33.36 20.27 18.05 17.34
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
==================================
Year-by-year total return (%) Shows changes in returns by calendar year
==================================--------------------------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
J.P. Morgan Institutional U.S. Equity Fund 14.12 31.43 1.38 34.12 8.73 11.06 (O.32) 32.83 21.22 28.58
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500(4) 16.61 31.69 (3.11) 30.47 7.62 10.08 1.32 37.58 22.96 33.36
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
FINANCIAL HIGHLIGHTS
==================================
Per-share data For fiscal periods ended May 31
==================================--------------------------------------------------------------------------------------------------
1994(3) 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ($) 10.00 10.92 12.10 14.00 15.66
- -----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.08 0.18 0.27 0.17 0.15
Net realized and unrealized gain (loss)
on investments ($) 0.88 1.42 2.66 3.02 3.81
- -----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.96 1.60 2.93 3.19 3.96
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions to shareholders from:
Net investment income ($) (0.04) (0.14) (0.20) (0.25) (0.18)
Net realized gains ($) -- (0.28) (0.83) (1.28) (2.71)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions ($) (0.04) (0.42) (1.03) (1.53) (2.89)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 10.92 12.10 14.00 15.66 16.73
- -----------------------------------------------------------------------------------------------------------------------------------
==================================
Ratios and supplemental data
==================================-------------------------------------------------------------------------------------------------
Total return (%) 9.61(5) 15.40 25.43 25.21 28.53
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 47,473 172,497 221,368 329,776 378,988
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Expenses (%) 0.60(6) 0.60 0.60 0.60 0.60
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 1.74(6) 2.07 2.08 1.33 0.89
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 1.03(6) 0.71 0.62 0.65 0.63
- -----------------------------------------------------------------------------------------------------------------------------------
The Financial Highlights above have been audited by PricewaterhouseCoopers LLP,
the fund's independent accountants.
</TABLE>
(1) The fund has a master/feeder structure as described on page 9. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year, expressed as a percentage of the fund's average net
assets and reflecting reimbursement for ordinary expenses over 0.60%.
(2) Without reimbursement, other expenses and total operating expenses would
have been 0.23% and 0.63%, respectively. This reimbursement arrangement can
be changed or terminated at any time at the option of J.P. Morgan.
(3) The fund commenced operations on 7/19/93 and commenced public investment
operations on 9/17/93 and returns reflect performance of The Pierpont
Equity Fund, the fund's predecessor, prior to that date. The Pierpont
Equity Fund commenced operations on 6/27/85 and performance is calculated
as of 6/30/85.
(4) The S&P500 is an unmanaged index of U.S. stocks widely used as a measure of
overall stock market performance.
(5) Not annualized.
(6) Annualized.
|
J.P. MORGAN INSTITUTIONAL U.S. EQUITY FUND | 5
|
<PAGE>
YOUR INVESTMENT
================================================================================
For your convenience, the J.P. Morgan Institutional Funds offer several ways to
start and add to fund investments.
INVESTING THROUGH A FINANCIAL PROFESSIONAL
If you work with a financial professional, either at J.P. Morgan or elsewhere,
he or she is prepared to handle your planning and transaction needs. Your
financial professional will be able to assist you in establishing your fund
account, executing transactions, and monitoring your investment. If your fund
investment is not held in the name of your financial professional and you prefer
to place a transaction order yourself, please use the instructions for investing
directly.
INVESTING THROUGH AN EMPLOYER-SPONSORED RETIREMENT PLAN
Your fund investments are handled through your plan. Refer to your plan
materials or contact your benefits office for information on buying, selling, or
exchanging fund shares.
INVESTING THROUGH AN IRA OR ROLLOVER IRA
Please contact a J.P. Morgan Retirement Services Specialist at 1-888-576-4472
for information on J.P. Morgan's comprehensive IRA services, including lower
minimum investments.
INVESTING DIRECTLY
Investors may establish accounts without the help of an intermediary by using
the instructions below and at right:
o Determine the amount you are investing. The minimum amount for initial
investments in the fund is $3,000,000 and for additional investments
$25,000, although these minimums may be less for some investors. For more
information on minimum investments, call 1-800-766-7722.
o Complete the application, indicating how much of your investment you want
to allocate to which fund(s). Please apply now for any account privileges
you may want to use in the future, in order to avoid the delays associated
with adding them later on.
o Mail in your application, making your initial investment as shown at right.
For answers to any questions, please speak with a J.P. Morgan Funds Services
Representative at 1-800-766-7722.
OPENING YOUR ACCOUNT
By wire
o Mail your completed application to the Shareholder Services Agent.
o Call the Shareholder Services Agent to obtain an account number and to
place a purchase order. Funds that are wired without a purchase order will
be returned uninvested.
o After placing your purchase order, instruct your bank to wire the amount of
your investment to:
Morgan Guaranty Trust Company of New York
Routing number: 021-000-238
Credit: J.P. Morgan Institutional Funds
Account number: 001-57-689
FFC: your account number, name of registered owner(s) and fund name
By check
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with your completed application to the Shareholder Services
Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ADDING TO YOUR ACCOUNT
By wire
o Call the Shareholder Services Agent to place a purchase order. Funds that
are wired without a purchase order will be returned uninvested.
o Once you have placed your purchase order, instruct your bank to wire the
amount of your investment as described above.
By check
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with a completed investment slip to the Shareholder Services
Agent. If you do not have an investment slip, attach a note indicating your
account number and how much you wish to invest in which fund(s).
By exchange
o Call the Shareholder Services Agent to effect an exchange.
|
6 | YOUR INVESTMENT
|
<PAGE>
================================================================================
SELLING SHARES
By phone - wire payment
o Call the Shareholder Services Agent to verify that the wire redemption
privilege is in place on your account. If it is not, a representative can
help you add it.
o Place your wire request. If you are transferring money to a non-Morgan
account, you will need to provide the representative with the personal
identification number (PIN) that was provided to you when you opened your
fund account.
By phone - check payment
o Call the Shareholder Services Agent and place your request. Once your
request has been verified, a check for the net amount, payable to the
registered owner(s), will be mailed to the address of record. For checks
payable to any other party or mailed to any other address, please make your
request in writing (see below).
In writing
o Write a letter of instruction that includes the following information: The
name of the registered owner(s) of the account; the account number; the
fund name; the amount you want to sell; and the recipient's name and
address or wire information, if different from those of the account
registration.
o Indicate whether you want the proceeds sent by check or by wire.
o Make sure the letter is signed by an authorized party. The Shareholder
Services Agent may require additional information, such as a signature
guarantee.
o Mail the letter to the Shareholder Services Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ACCOUNT AND TRANSACTION POLICIES
Telephone orders The fund accepts telephone orders from all shareholders. To
guard against fraud, the fund requires shareholders to use a PIN, and may record
telephone orders or take other reasonable precautions. However, if the fund does
take such steps to ensure the authenticity of an order, you may bear any loss if
the order later proves fraudulent.
Exchanges You may exchange shares in this fund for shares in any other J.P.
Morgan Institutional or J.P. Morgan mutual fund at no charge (subject to the
securities laws of your state). When making exchanges, it is important to
observe any applicable minimums. Keep in mind that for tax purposes an exchange
is considered a sale.
The fund may alter, limit, or suspend its exchange policy at any time.
Business hours and NAV calculations The fund's regular business days and hours
are the same as those of the New York Stock Exchange (NYSE). The fund calculates
its net asset value per share (NAV) every business day as of the close of
trading on the NYSE (normally 4:00 p.m. eastern time). The fund's securities are
typically priced using market quotes or pricing services. When these methods
are not available or do not represent a security's value at the time of pricing,
the security is valued in accordance with the fund's fair valuation procedures.
Timing of orders Orders to buy or sell shares are executed at the next NAV
calculated after the order has been accepted. Orders are accepted until the
close of trading on the NYSE every business day and are executed the same day,
at that day's NAV. The fund has the right to suspend redemption of shares and to
postpone payment of proceeds for up to seven days or as permitted by law.
================================================================================
Shareholder Services Agent
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
1-800-766-7722
Representatives are available 8:00 a.m. to 5:00 p.m.
eastern time on fund business days.
|
YOUR INVESTMENT | 7
|
<PAGE>
================================================================================
Timing of settlements When you buy shares, you will become the owner of record
when the fund receives your payment, generally the day following execution. When
you sell shares, proceeds are generally available the day following execution
and will be forwarded according to your instructions.
When you sell shares that you recently purchased by check, your order will be
executed at the next NAV but the proceeds will not be available until your check
clears. This may take up to 15 days.
Statements and reports The fund sends monthly account statements as well as
confirmations after each purchase or sale of shares (except reinvestments).
Every six months the fund sends out an annual or semi-annual report containing
information on the fund's holdings and a discussion of recent and anticipated
market conditions and fund performance.
Accounts with below-minimum balances If your account balance falls below the
minimum for 30 days as a result of selling shares (and not because of
performance), the fund reserves the right to request that you buy more shares or
close your account. If your account balance is still below the minimum 60 days
after notification, the fund reserves the right to close out your account and
send the proceeds to the address of record.
DIVIDENDS AND DISTRIBUTIONS
The fund typically pays income dividends four times a year and makes capital
gains distributions, if any, once per year (usually in August). However, the
fund may make more or fewer payments in a given year, depending on its
investment results and its tax compliance situation. These dividends and
distributions consist of most or all of the fund's net investment income and net
realized capital gains.
Dividends and distributions are reinvested in additional fund shares.
Alternatively, you may instruct your financial professional or J.P. Morgan Funds
Services to have them sent to you by check, credited to a separate account, or
invested in another J.P. Morgan Institutional Fund.
TAX CONSIDERATIONS
In general, selling shares, exchanging shares, and receiving distributions
(whether reinvested or taken in cash) are all taxable events. These transactions
typically create the following tax liabilities for taxable accounts:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Transaction Tax status
- --------------------------------------------------------------------------------
<S> <C>
Income dividends Ordinary income
Short-term capital gains Ordinary income
distributions
Long-term capital gains Capital gains
distributions
Sales or exchanges of shares Capital gains or losses
owned for more than one year
Sales or exchanges of shares Gains are treated as ordinary
owned for one year or less income; losses are subject
to special rules
- --------------------------------------------------------------------------------
</TABLE>
Because long-term capital gains distributions are taxable as capital gains
regardless of how long you have owned your shares, you may want to avoid making
a substantial investment when the fund is about to declare a long-term capital
gains distribution.
Every January, the fund issues tax information on its distributions for the
previous year.
Any investor for whom the fund does not have a valid taxpayer identification
number will be subject to backup withholding for taxes.
The tax considerations described in this section do not apply to tax-deferred
accounts or other non-taxable entities.
Because each investor's tax circumstances are unique, please consult your tax
professional about your fund investment.
|
8 | YOUR INVESTMENT
|
<PAGE>
FUND DETAILS
================================================================================
MASTER/FEEDER STRUCTURE
As noted earlier, the fund is a "feeder" fund that invests in a master
portfolio. (Except where indicated, this prospectus uses the term "the fund" to
mean the feeder fund and its master portfolio taken together.)
The master portfolio accepts investments from other feeder funds, and the
feeders bear the master portfolio's expenses in proportion to their assets.
However, each feeder can set its own transaction minimums, fund-specific
expenses, and other conditions. This means that one feeder could offer access to
the same master portfolio on more attractive terms, or could experience better
performance, than another feeder. Information about other feeders is available
by calling 1-800-766-7722. Generally, when the master portfolio seeks a vote,
the fund will hold a shareholder meeting and cast its vote proportionately, as
instructed by its shareholders. Fund shareholders are entitled to one full or
fractional vote for each dollar or fraction of a dollar invested.
The fund and its master portfolio expect to maintain consistent goals, but if
they do not, the fund will withdraw from the master portfolio, receiving its
assets either in cash or securities. The fund's trustees would then consider
whether the fund should hire its own investment adviser, invest in a different
master portfolio, or take other action.
MANAGEMENT AND ADMINISTRATION
The fund and its master portfolio are governed by the same trustees. The
trustees are responsible for overseeing all business activities. The trustees
are assisted by Pierpont Group, Inc., which they own and operate on a cost
basis; costs are shared by all funds governed by these trustees. Funds
Distributor, Inc., as co-administrator, along with J.P. Morgan, provides fund
officers. J.P. Morgan, as co-administrator, oversees the fund's other service
providers.
J.P. Morgan, subject to the expense reimbursements described earlier in this
prospectus, receives the following fees for investment advisory and other
services:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Advisory services 0.40% of the master
portfolio's average net assets
- --------------------------------------------------------------------------------
<S> <C>
Administrative services Master portfolio's and fund's
(fee shared with Funds pro-rata portions of 0.09% of
Distributor, Inc.) the first $7 billion in
J.P. Morgan-advised portfolios,
plus 0.04% of average net
assets over $7 billion
- --------------------------------------------------------------------------------
Shareholder services 0.10% of the fund's average
net assets
- --------------------------------------------------------------------------------
</TABLE>
J.P. Morgan may pay fees to certain firms and professionals for providing
recordkeeping or other services in connection with investments in the fund.
Year 2000 Fund operations and shareholders could be adversely affected if the
computer systems used by J.P. Morgan, the fund's other service providers and
other entities with computer systems linked to the fund do not properly process
and calculate January 1, 2000 and after date-related information. J.P. Morgan is
working to avoid these problems and to obtain assurances from other service
providers that they are taking similar steps. However, it is not certain that
these actions will be sufficient to prevent these problems from adversely
impacting fund operations and shareholders. In addition, to the extent that
operations of issuers of securities held by the fund are impaired by
date-related problems or prices of securities decline as a result of real or
perceived date-related problems of issuers held by the fund or generally, the
net asset value of the fund will decline.
|
FUND DETAILS | 9
|
<PAGE>
================================================================================
RISK AND REWARD ELEMENTS
This table discusses the main elements that make up the fund's overall risk and
reward characteristics (described on page 3). It also outlines the fund's
policies toward various securities, including those that are designed to help
the fund manage risk.
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market conditions
o The fund's share price and o Stocks have generally outperformed o Under normal circumstances the fund
performance will fluctuate in more stable investments (such as plans to remain fully invested,
response to stock market movements bonds and cash equivalents) over with at least 65% in stocks; stock
the long term investments may include U.S. and
o Adverse market conditions may from foreign common stocks, convertible
time to time cause the fund to take securities, preferred stocks, trust
temporary defensive positions that or partnership interests, warrants,
are inconsistent with its principal rights, and investment company
investment strategies and may securities
hinder the fund from achieving its
investment objective o The fund seeks to limit risk
through diversification
o During severe market downturns, the
fund has the option of investing up
to 100% of assets in investment-grade
short-term securities
- ------------------------------------------------------------------------------------------------------------------------------------
Management choices
o The fund could underperform its o The fund could outperform its o J.P. Morgan focuses its active
benchmark due to its securities and benchmark due to these same choices management on securities selection,
asset allocation choices the area where it believes its
commitment to research can most
enhance returns
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign investments
o Currency exchange rate movements o Favorable exchange rate movements o The fund anticipates that its total
could reduce gains or create losses could generate gains or reduce foreign investments will not exceed
losses 20% of assets.
o The fund could lose money because
of foreign government actions, o Foreign investments, which o The fund actively manages the
political instability, or lack of represent a major portion of the currency exposure of its foreign
adequate and accurate information world's securities, offer investments relative to its
attractive potential performance benchmark, and may hedge back into
and opportunities for the U.S. dollar from time to time
diversification (see also "Derivatives")
- ------------------------------------------------------------------------------------------------------------------------------------
Derivatives
o Derivatives such as futures, o Hedges that correlate well with o The fund uses derivatives for
options, swaps and forward foreign underlying positions can reduce or hedging and for risk management
currency contracts that are used eliminate losses at low cost (i.e., to establish or adjust
for hedging the portfolio or exposure to particular securities,
specific securities may not fully o The fund could make money and markets or currencies); risk
offset the underlying positions(1) protect against losses if management may include management
management's analysis proves of the fund's exposure relative to
o Derivatives used for risk correct its benchmark
management may not have the
intended effects and may result in o Derivatives that involve leverage o The fund only establishes hedges
losses or missed opportunities could generate substantial gains at that it expects will be highly
low cost correlated with underlying
o The counterparty to a derivatives positions
contract could default
o While the fund may use derivatives
o Derivatives that involve leverage that incidentally involve leverage,
could magnify losses it does not use them for the
specific purpose of leveraging the
portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A futures contract is an agreement to buy or sell a set quantity of an
underlying instrument at a future date, or to make or receive a cash
payment based on changes in the value of a securities index. An option is
the right to buy or sell a set quantity of an underlying instrument at
pre-determined price. A swap is a privately negotiated agreement to
exchange one stream of payments for another. A forward foreign currency
contract is an obligation to buy or sell a given currency on a future date
and at a set price.
|
10 | FUND DETAILS
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Illiquid holdings
o The fund could have difficulty o These holdings may offer more o The fund may not invest more than
valuing these holdings precisely attractive yields or potential 15% of net assets in illiquid
growth than comparable widely holdings
o The fund could be unable to sell traded securities
these holdings at the time or price o To maintain adequate liquidity to
it desires meet redemptions, the fund may hold
investment-grade short-term
securities (including repurchase
agreements) and, for temporary or
extraordinary purposes, may borrow
from banks up to 33 1/3% of its
assets
- ------------------------------------------------------------------------------------------------------------------------------------
When-issued and delayed
delivery securities
o When the fund buys securities o The fund can take advantage of o The fund uses segregated accounts
before issue or for delayed attractive transaction to offset leverage risk
delivery, it could be exposed to opportunities
leverage risk if it does not use
segregated accounts
- ------------------------------------------------------------------------------------------------------------------------------------
Short-term trading
o Increased trading would raise the o The fund could realize gains in a o The fund anticipates a portfolio
fund's brokerage and related costs short period of time turnover rate of approximately 100%
o Increased short-term capital gains o The fund could protect against o The fund generally avoids
distributions would raise losses if a stock is overvalued and short-term trading, except to take
shareholders' income tax liability its value later falls advantage of attractive or
unexpected opportunities or to meet
demands generated by shareholder
activity
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
|
FUND DETAILS | 11
|
<PAGE>
================================================================================
(THIS PAGE IS INTENTIONALLY LEFT BLANK)
|
12 |
|
<PAGE>
================================================================================
(THIS PAGE IS INTENTIONALLY LEFT BLANK)
|
| 13
|
<PAGE>
================================================================================
FOR MORE INFORMATION
================================================================================
For investors who want more information on the fund, the following documents are
available free upon request:
Annual/Semi-annual Reports Contain financial statements, performance data,
information on portfolio holdings, and a written analysis of market conditions
and fund performance for the fund's most recently completed fiscal year or
half-year.
Statement of Additional Information (SAI) Provides a fuller technical and legal
description of the fund's policies, investment restrictions, and business
structure. This prospectus incorporates the SAI by reference.
Copies of the current versions of these documents, along with other information
about the fund, may be obtained by contacting:
J.P. Morgan Institutional U.S. Equity Fund
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
Telephone: 1-800-766-7722
Hearing impaired: 1-888-468-4015
Email: [email protected]
Text-only versions of these documents and this prospectus are available, upon
payment of a duplicating fee, from the Public Reference Room of the Securities
and Exchange Commission in Washington, D.C. (1-800-SEC-0330) and may be viewed
on-screen or downloaded from the SEC's Internet site at http://www.sec.gov. The
fund's investment company and 1933 Act registration numbers are 811-07342 and
033-54642.
J.P. MORGAN INSTITUTIONAL FUNDS AND THE MORGAN TRADITION
The J.P. Morgan Institutional Funds combine a heritage of integrity and
financial leadership with comprehensive, sophisticated analysis and management
techniques. Drawing on J.P. Morgan's extensive experience and depth as an
investment manager, the J.P. Morgan Institutional Funds offer a broad array of
distinctive opportunities for mutual fund investors.
[LOGO] JPMorgan
================================================================================
J.P. Morgan Institutional Funds
Advisor Distributor
J.P. Morgan Investment Management Inc. Funds Distributor, Inc.
522 Fifth Avenue 60 State Street
New York, NY 10036 Boston, MA 02109
1-800-766-7722 1-800-221-7930
PROS382-9810
<PAGE>
- --------------------------------------------------------------------------------
|
OCTOBER 1, 1998 | PROSPECTUS
|
================================================================================
J.P. MORGAN INSTITUTIONAL
DISCIPLINED EQUITY FUND
===================================
Seeking to outperform the market in
which it invests over the long term
through a disciplined management
approach
This prospectus contains essential information for anyone investing in the fund.
Please read it carefully and keep it for reference.
Shares in the fund are not bank deposits and are not guaranteed or insured by
any bank, government entity, or the FDIC.
As with all mutual funds, the fact that these shares are registered with the
Securities and Exchange Commission does not mean that the commission approves
them as an investment or guarantees that the information in this prospectus is
correct or adequate. It is a criminal offense for anyone to state or suggest
otherwise.
[LOGO] JPMorgan
Distributed by Funds Distributor, Inc.
<PAGE>
CONTENTS
<TABLE>
====================================================================================================================================
<S> <C>
2 | U.S. EQUITY MANAGEMENT APPROACH
U.S. equity investment process ...........................................................2
4 | J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND
The fund's goal, investment approach, Fund description .........................................................................3
risks, expenses, performance
and financial highlights Investor expenses ........................................................................3
Performance ..............................................................................4
Financial highlights......................................................................5
6 | YOUR INVESTMENT
Investing in the J.P. Morgan Investing through a financial professional ...............................................6
Institutional Disciplined
Equity Fund Investing through an employer-sponsored retirement plan ..................................6
Investing through an IRA or Rollover IRA .................................................6
Investing directly .......................................................................6
Opening your account .....................................................................6
Adding to your account ...................................................................6
Selling shares ...........................................................................7
Account and transaction policies .........................................................7
Dividends and distributions ..............................................................8
Tax considerations .......................................................................8
9 | FUND DETAILS
More about risk and the fund's Master/feeder structure ..................................................................9
business operations
Management and administration ............................................................9
Risk and reward elements ................................................................10
FOR MORE INFORMATION ............................................................back cover
</TABLE>
<PAGE>
INTRODUCTION
================================================================================
J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND
This fund invests primarily in U.S. stocks by investing through a master
portfolio (another fund with the same goal). As a shareholder, you should
anticipate risks and rewards beyond those of a typical bond fund or a typical
balanced fund.
WHO MAY WANT TO INVEST
The fund is designed for investors who:
o are pursuing a long-term goal such as retirement
o want to add an investment with growth potential to further diversify a
portfolio
o want a fund that seeks to outperform the market in which it invests over
the long term
The fund is not designed for investors who:
o want a fund that pursues market trends or focuses only on particular
industries or sectors
o require regular income or stability of principal
o are pursuing a short-term goal or investing emergency reserves
J.P. MORGAN
Known for its commitment to proprietary research and its disciplined investment
strategies, J.P. Morgan is the asset management choice for many of the world's
most respected corporations, financial institutions, governments, and
individuals. Today, J.P. Morgan employs over 300 analysts and portfolio managers
around the world and has more than $275 billion in assets under management,
including assets managed by the fund's advisor, J.P. Morgan Investment
Management Inc.
========================================
Before you invest
Investors considering the fund should
understand that:
o The value of the fund's shares will
fluctuate over time. You could lose
money if you sell when the fund's
share price is lower than when you
invested.
o There is no assurance that the fund
will meet its investment goal.
o Future returns will not necessarily
resemble past performance.
- ----------------------------------------
|
| 1
|
<PAGE>
U.S. EQUITY MANAGEMENT APPROACH
================================================================================
The J.P. Morgan Institutional
Disciplined Equity Fund invests
primarily in U.S. stocks.
The fund's investment philosophy,
developed by its advisor, focuses on
stock picking while largely avoiding
sector or market-timing strategies.
Also, under normal market conditions,
the fund will remain fully invested.
U.S. EQUITY INVESTMENT PROCESS
In managing the fund, J.P. Morgan
employs a three-step process:
[GRAPHIC] Research J.P. Morgan takes an in-depth
look at company prospects over a
J.P. Morgan analysts develop relatively long period -- often as much
proprietary fundamental research as five years -- rather than focusing on
near-term expectations. This approach is
designed to provide insight into a
company's real growth potential. J.P.
Morgan's in-house research is developed
by an extensive worldwide network of
over 120 career analysts. The team of
analysts dedicated to U.S. equities
includes more than 20 members, with an
average of over ten years of experience.
[GRAPHIC] Valuation The research findings allow
J.P. Morgan to rank the companies in
Stocks in each industry are ranked each industry group according to their
with the help of models relative value. The greater a company's
estimated worth compared to the current
market price of its stock, the more
undervalued the company. The valuation
rankings are produced with the help of a
variety of models that quantify the
research team's findings.
[GRAPHIC] Stock selection The fund buys and sells
stocks according to its own policies,
Using research and valuations, using the research and valuation
the fund's management team rankings as a basis. In general, the
chooses stocks for its fund management team buys stocks that are
identified as undervalued and considers
selling them when they appear
overvalued. Along with attractive
valuation, the fund's managers often
consider a number of other criteria:
o catalysts that could trigger a rise
in a stock's price
o high potential reward compared to
potential risk
o temporary mispricings caused by
market overreactions
|
2 | U.S. EQUITY MANAGEMENT APPROACH
|
<PAGE>
J.P. MORGAN INSTITUTIONAL
DISCIPLINED EQUITY FUND
================================================================================
REGISTRANT: J.P. MORGAN INSTITUTIONAL FUNDS
(J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND)
[GRAPHIC] GOAL
The fund's goal is to provide a consistently high total return from a
broadly diversified portfolio of equity securities with risk characteristics
similar to the Standard & Poor's 500 Stock Index (S&P 500). This goal can be
changed without shareholder approval.
[GRAPHIC] INVESTMENT APPROACH
The fund invests primarily in large- and medium-capitalization U.S.
companies. Industry by industry, the fund's weightings are similar to those of
the S&P 500. The fund does not look to overweight or underweight industries.
Within each industry, the fund modestly overweights stocks that are ranked as
undervalued or fairly valued while modestly underweighting or not holding stocks
that appear overvalued. (The process used to rank stocks according to their
relative valuations is described on page 2.)
[GRAPHIC] POTENTIAL RISKS AND REWARDS
The value of your investment in the fund will fluctuate in response to
movements in the stock market. Fund performance will also depend on the
effectiveness of J.P. Morgan's research and the management team's stock picking
decisions.
By owning a large number of stocks within the S&P 500, with an emphasis on those
that appear undervalued or fairly valued, and by tracking the industry
weightings of that index, the fund seeks returns that modestly exceed those of
the S&P 500 over the long term with virtually the same level of volatility.
The fund's securities are described in more detail on page 10, along with their
main risks, which may cause the fund's share price to decline, and the fund's
strategies to reduce these risks.
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages over $275
billion, including more than $13 billion using the same strategy as the fund.
The portfolio management team is led by James C. Wiess and Timothy J. Devlin,
both vice presidents, who have been on the team since the fund's inception in
January of 1997. Mr. Wiess has been at J.P. Morgan since 1992, and prior to
managing this fund managed other structured equity portfolios for J.P. Morgan.
Mr. Devlin has been at J.P. Morgan since July of 1996, and prior to that time
was an equity portfolio manager at Mitchell Hutchins Asset Management Inc.
================================================================================
INVESTOR EXPENSES
The current expenses you should expect to pay as an investor in the fund are
shown at right. The fund has no sales, redemption, exchange, or account fees,
although some institutions may charge you a fee for shares you buy through them.
The annual fund expenses shown are deducted from fund assets prior to
performance calculations.
Footnotes for this section are shown on next page.
<TABLE>
<CAPTION>
================================================================================
Annual fund operating expenses(1) (%)
================================================================================
<S> <C>
Management fees (actual) 0.35
Marketing (12b-1) fees none
Other expenses(2)
(after reimbursement) 0.10
================================================================================
Total operating expenses(2)
(after reimbursement) 0.45
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
================================================================================
Expense example
================================================================================
The example below uses the same assumptions as other fund prospectuses: $1,000
initial investment, 5% annual total return, expenses unchanged, all shares sold
at the end of each time period. The example is for comparison only; the fund's
actual return and expenses will be different.
- --------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
<S> <C> <C> <C> <C>
Your cost($) 5 14 25 57
- --------------------------------------------------------------------------------
</TABLE>
|
J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND | 3
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
PERFORMANCE (unaudited)
=================================
Average annual total return (%) Shows performance over time, for periods ended December 31, 1997
==================================--------------------------------------------------------------------------------------------------
1 yr. 5 yrs. Since 10/31/89(3)
<S> <C> <C> <C>
J.P. Morgan Institutional Disciplined Equity Fund (after expenses) n/a n/a n/a
- ------------------------------------------------------------------------------------------------------------------------------------
Private Account Composite (after expense)(4) 33.37 20.61 17.63
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500(5) (no expenses) 33.36 20.27 16.89
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=================================
Total returns (%) Shows changes in returns for periods ended December 31, 1997
==================================--------------------------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
3 mos. Since inception(6)
<S> <C> <C>
J.P. Morgan Institutional Disciplined Equity Fund 2.41 25.79
Private Account Composite(4) 2.26 25.54
S&P 500(5) 2.87 25.52
</TABLE>
<TABLE>
<CAPTION>
=================================
Year-by-year total return (%) Shows changes in returns by calendar year
==================================--------------------------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
1990 1991 1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Private Account Composite(4) (2.94) 30.39 11.75 10.20 2.21 37.87 23.26 33.37
- ------------------------------------------------------------------------------------------------------------------------------------
S&P 500(5) (3.11) 30.47 7.62 10.08 1.32 37.58 22.96 33.36
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund has a master/feeder structure as described on page 9. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year, expressed as a percentage of the fund's average net
assets and reflecting reimbursement for ordinary expenses over 0.45%.
(2) Without reimbursement, other expenses and total operating expenses would
have been 0.37% and 0.72%, respectively. This reimbursement arrangement can
be changed or terminated at any time at the option of J.P. Morgan.
(3) The inception date of the Private Account Composite is 10/31/89.
(4) The performance of the Private Account Composite does not represent the
fund's performance and should not be interpreted as indicative of the
fund's future performance. The Composite reflects the historical
performance of discretionary investment management accounts under the
management of the fund's advisor with substantially similar objectives and
policies as the fund. Historical Composite performance information reflects
the deduction of the fund's total expenses of 0.45%. The performance of
accounts in the Composite might have been lower if they were subject to the
extra restrictions imposed on mutual funds. AIMR performance requirements
went into effect 1/1/93 and prior to that date the Composite may not have
included all discretionary accounts.
(5) The S&P 500 is an unmanaged index of U.S. stocks widely used as a measure
of overall stock market performance.
(6) The fund commenced operations on 1/3/97 and performance is calculated as of
1/31/97.
|
4 | J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND
|
<PAGE>
================================================================================
================================================================================
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
=================================
Per-share data For fiscal periods ended May 31
- -------------------------------------------------------------------------------
1997(1) 1998
<S> <C> <C>
Net asset value, beginning of period ($) 10.00 11.47
- -------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.04 0.12
Net realized and unrealized gain
on investment ($) 1.43 3.62
================================================================================
Total from investment operations ($) 1.47 3.74
- -------------------------------------------------------------------------------
Less distributions to shareholders from:
Net investment income ($) -- (0.12)
Net realized gains (loss) ($) -- (0.13)
- -------------------------------------------------------------------------------
Total distributions ($) -- (0.25)
- -------------------------------------------------------------------------------
Net asset value, end of period ($) 11.47 14.96
- -------------------------------------------------------------------------------
=================================
Ratios and supplemental data
=================================----------------------------------------------
Total return (%) 14.70(2) 32.98
- -------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 49,726 296,191
- -------------------------------------------------------------------------------
Ratio to average net assets:
- -------------------------------------------------------------------------------
Expenses (%) 0.45(3) 0.45
- --------------------------------------------------------------------------------
Net investment income (%) 1.58(3) 1.27
- --------------------------------------------------------------------------------
Expenses without reimbursement (%) 1.34(3) 0.72
- --------------------------------------------------------------------------------
</TABLE>
The Financial Highlights above have been audited by PricewaterhouseCoopers LLP,
the fund's independent accountants.
(1) The fund commenced operations on 1/3/97.
(2) Not annualized.
(3) Annualized.
|
J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND | 5
|
<PAGE>
YOUR INVESTMENT
================================================================================
For your convenience, the J.P. Morgan Institutional Funds offer several ways to
start and add to fund investments.
INVESTING THROUGH A FINANCIAL PROFESSIONAL
If you work with a financial professional, either at J.P. Morgan or elsewhere,
he or she is prepared to handle your planning and transaction needs. Your
financial professional will be able to assist you in establishing your fund
account, executing transactions, and monitoring your investment. If your fund
investment is not held in the name of your financial professional and you prefer
to place a transaction order yourself, please use the instructions for investing
directly.
INVESTING THROUGH AN EMPLOYER-SPONSORED RETIREMENT PLAN
Your fund investments are handled through your plan. Refer to your plan
materials or contact your benefits office for information on buying, selling, or
exchanging fund shares.
INVESTING THROUGH AN IRA OR ROLLOVER IRA
Please contact a J.P. Morgan Retirement Services Specialist at 1-888-576-4472
for information on J.P. Morgan's comprehensive IRA services, including lower
minimum investments.
INVESTING DIRECTLY
Investors may establish accounts without the help of an intermediary by using
the instructions below and at right:
o Determine the amount you are investing. The minimum amount for initial
investments in the fund is $1,000,000 and for additional investments
$25,000, although these minimums may be less for some investors. For more
information on minimum investments, call 1-800-766-7722.
o Complete the application, indicating how much of your investment you want
to allocate to which fund(s). Please apply now for any account privileges
you may want to use in the future, in order to avoid the delays associated
with adding them later on.
o Mail in your application, making your initial investment as shown at right.
For answers to any questions, please speak with a J.P. Morgan Funds Services
Representative at 1-800-766-7722.
OPENING YOUR ACCOUNT
By wire
o Mail your completed application to the Shareholder Services Agent.
o Call the Shareholder Services Agent to obtain an account number and to
place a purchase order. Funds that are wired without a purchase order will
be returned uninvested.
o After placing your purchase order, instruct your bank to wire the amount of
your investment to:
Morgan Guaranty Trust Company of New York
Routing number: 021-000-238
Credit: J.P. Morgan Institutional Funds
Account number: 001-57-689
FFC: your account number, name of registered owner(s) and fund name
By check
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with your completed application to the Shareholder Services
Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ADDING TO YOUR ACCOUNT
By wire
o Call the Shareholder Services Agent to place a purchase order. Funds that
are wired without a purchase order will be returned uninvested.
o Once you have placed your purchase order, instruct your bank to wire the
amount of your investment as described above.
By check
o Make out a check for the investment amount payable to J.P. Morgan
Institutional Funds.
o Mail the check with a completed investment slip to the Shareholder Services
Agent. If you do not have an investment slip, attach a note indicating your
account number and how much you wish to invest in which fund(s).
By exchange
o Call the Shareholder Services Agent to effect an exchange.
|
6 | YOUR INVESTMENT
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<PAGE>
================================================================================
SELLING SHARES
By phone - wire payment
o Call the Shareholder Services Agent to verify that the wire redemption
privilege is in place on your account. If it is not, a representative can
help you add it.
o Place your wire request. If you are transferring money to a non-Morgan
account, you will need to provide the representative with the personal
identification number (PIN) that was provided to you when you opened your
fund account.
By phone - check payment
o Call the Shareholder Services Agent and place your request. Once your
request has been verified, a check for the net amount, payable to the
registered owner(s), will be mailed to the address of record. For checks
payable to any other party or mailed to any other address, please make your
request in writing (see below).
In writing
o Write a letter of instruction that includes the following information: The
name of the registered owner(s) of the account; the account number; the
fund name; the amount you want to sell; and the recipient's name and
address or wire information, if different from those of the account
registration.
o Indicate whether you want the proceeds sent by check or by wire.
o Make sure the letter is signed by an authorized party. The Shareholder
Services Agent may require additional information, such as a signature
guarantee.
o Mail the letter to the Shareholder Services Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ACCOUNT AND TRANSACTION POLICIES
Telephone orders The fund accepts telephone orders from all shareholders. To
guard against fraud, the fund requires shareholders to use a PIN, and may record
telephone orders or take other reasonable precautions. However, if the fund does
take such steps to ensure the authenticity of an order, you may bear any loss if
the order later proves fraudulent.
Exchanges You may exchange shares in this fund for shares in any other J.P.
Morgan Institutional or J.P. Morgan mutual fund at no charge (subject to the
securities laws of your state). When making exchanges, it is important to
observe any applicable minimums. Keep in mind that for tax purposes an exchange
is considered a sale.
The fund may alter, limit, or suspend its exchange policy at any time.
Business hours and NAV calculations The fund's regular business days and hours
are the same as those of the New York Stock Exchange (NYSE). The fund calculates
its net asset value per share (NAV) every business day as of the close of
trading on the NYSE (normally 4:00 p.m. eastern time). The fund's securities are
typically priced using market quotes or pricing services. When these methods
are not available or do not represent a security's value at the time of pricing,
the security is valued in accordance with the fund's fair valuation procedures.
Timing of orders Orders to buy or sell shares are executed at the next NAV
calculated after the order has been accepted. Orders are accepted until the
close of trading on the NYSE every business day and are executed the same day,
at that day's NAV. The fund has the right to suspend redemption of shares and to
postpone payment of proceeds for up to seven days or as permitted by law.
================================================================================
Shareholder Services Agent
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
1-800-766-7722
Representatives are available 8:00 a.m. to 5:00 p.m.
eastern time on fund business days.
|
YOUR INVESTMENT | 7
|
<PAGE>
================================================================================
Timing of settlements When you buy shares, you will become the owner of record
when the fund receives your payment, generally the day following execution. When
you sell shares, proceeds are generally available the day following execution
and will be forwarded according to your instructions.
When you sell shares that you recently purchased by check, your order will be
executed at the next NAV but the proceeds will not be available until your check
clears. This may take up to 15 days.
Statements and reports The fund sends monthly account statements as well as
confirmations after each purchase or sale of shares (except reinvestments).
Every six months the fund sends out an annual or semi-annual report containing
information on the fund's holdings and a discussion of recent and anticipated
market conditions and fund performance.
Accounts with below-minimum balances If your account balance falls below the
minimum for 30 days as a result of selling shares (and not because of
performance), the fund reserves the right to request that you buy more shares or
close your account. If your account balance is still below the minimum 60 days
after notification, the fund reserves the right to close out your account and
send the proceeds to the address of record.
DIVIDENDS AND DISTRIBUTIONS
The fund typically pays income dividends four times a year and makes capital
gains distributions, if any, once per year (usually in August). However, the
fund may make more or fewer payments in a given year, depending on its
investment results and its tax compliance situation. These dividends and
distributions consist of most or all of the fund's net investment income and net
realized capital gains.
Dividends and distributions are reinvested in additional fund shares.
Alternatively, you may instruct your financial professional or J.P. Morgan Funds
Services to have them sent to you by check, credited to a separate account, or
invested in another J.P. Morgan Institutional Fund.
TAX CONSIDERATIONS
In general, selling shares, exchanging shares, and receiving distributions
(whether reinvested or taken in cash) are all taxable events. These transactions
typically create the following tax liabilities for taxable accounts:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Transaction Tax status
- --------------------------------------------------------------------------------
<S> <C>
Income dividends Ordinary income
Short-term capital gains Ordinary income
distributions
Long-term capital gains Capital gains
distributions
Sales or exchanges of shares Capital gains or losses
owned for more than one year
Sales or exchanges of shares Gains are treated as ordinary
owned for one year or less income; losses are subject
to special rules
- --------------------------------------------------------------------------------
</TABLE>
Because long-term capital gains distributions are taxable as capital gains
regardless of how long you have owned your shares, you may want to avoid making
a substantial investment when the fund is about to declare a long-term capital
gains distribution.
Every January, the fund issues tax information on its distributions for the
previous year.
Any investor for whom the fund does not have a valid taxpayer identification
number will be subject to backup withholding for taxes.
The tax considerations described in this section do not apply to tax-deferred
accounts or other non-taxable entities.
Because each investor's tax circumstances are unique, please consult your tax
professional about your fund investment.
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8 | YOUR INVESTMENT
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<PAGE>
FUND DETAILS
================================================================================
MASTER/FEEDER STRUCTURE
As noted earlier, the fund is a "feeder" fund that invests in a master
portfolio. (Except where indicated, this prospectus uses the term "the fund" to
mean the feeder fund and its master portfolio taken together.)
The master portfolio accepts investments from other feeder funds, and the
feeders bear the master portfolio's expenses in proportion to their assets.
However, each feeder can set its own transaction minimums, fund-specific
expenses, and other conditions. This means that one feeder could offer access to
the same master portfolio on more attractive terms, or could experience better
performance, than another feeder. Information about other feeders is available
by calling 1-800-766-7722. Generally, when the master portfolio seeks a vote,
the fund will hold a shareholder meeting and cast its vote proportionately, as
instructed by its shareholders. Fund shareholders are entitled to one full or
fractional vote for each dollar or fraction of a dollar invested.
The fund and its master portfolio expect to maintain consistent goals, but if
they do not, the fund will withdraw from the master portfolio, receiving its
assets either in cash or securities. The fund's trustees would then consider
whether the fund should hire its own investment adviser, invest in a different
master portfolio, or take other action.
MANAGEMENT AND ADMINISTRATION
The fund and its master portfolio are governed by the same trustees. The
trustees are responsible for overseeing all business activities. The trustees
are assisted by Pierpont Group, Inc., which they own and operate on a cost
basis; costs are shared by all funds governed by these trustees. Funds
Distributor, Inc., as co-administrator, provides fund officers. J.P. Morgan, as
co-administrator, along with J.P. Morgan, oversees the fund's other service
providers.
J.P. Morgan, subject to the expense reimbursements described earlier in this
prospectus, receives the following fees for investment advisory and other
services:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Advisory services 0.35% of the master
portfolio's average net assets
- --------------------------------------------------------------------------------
<S> <C>
Administrative services Master portfolio's and fund's
(fee shared with Funds pro-rata portions of 0.09% of
Distributor, Inc.) the first $7 billion in
J.P. Morgan-advised portfolios,
plus 0.04% of average net
assets over $7 billion
- --------------------------------------------------------------------------------
Shareholder services 0.10% of the fund's average
net assets
- --------------------------------------------------------------------------------
</TABLE>
J.P. Morgan may pay fees to certain firms and professionals for providing
recordkeeping or other services in connection with investments in the fund.
Year 2000 Fund operations and shareholders could be adversely affected if the
computer systems used by J.P. Morgan, the fund's other service providers and
other entities with computer systems linked to the fund do not properly process
and calculate January 1, 2000 and after date-related information. J.P. Morgan is
working to avoid these problems and to obtain assurances from other service
providers that they are taking similar steps. However, it is not certain that
these actions will be sufficient to prevent these problems from adversely
impacting fund operations and shareholders. In addition, to the extent that
operations of issuers of securities held by the fund are impaired by
date-related problems or prices of securities decline as a result of real or
perceived date-related problems of issuers held by the fund or generally, the
net asset value of the fund will decline.
|
FUND DETAILS | 9
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<PAGE>
================================================================================
RISK AND REWARD ELEMENTS
This table discusses the main elements that make up the fund's overall risk and
reward characteristics (described on page 3). It also outlines the fund's
policies toward various securities, including those that are designed to help
the fund manage risk.
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market conditions
o The fund's share price and o Stocks have generally outperformed o Under normal circumstances the fund
performance will fluctuate in more stable investments (such as plans to remain fully invested,
response to stock market movements bonds and cash equivalents) over with at least 65% in stocks; stock
the long term investments may include U.S. and
o Adverse market conditions may from foreign common stocks, convertible
time to time cause the fund to take securities, preferred stocks, trust
temporary defensive positions that or partnership interests, warrants,
are inconsistent with its principal rights, and investment company
investment strategies and may securities
hinder the fund from achieving its
investment objective o The fund seeks to limit risk
through diversification
o During severe market downturns, the
fund has the option of investing up
to 100% of assets in investment-grade
short-term securities
- ------------------------------------------------------------------------------------------------------------------------------------
Management choices
o The fund could underperform its o The fund could outperform its o J.P. Morgan focuses its active
benchmark due to its securities and benchmark due to these same choices management on securities selection,
asset allocation choices the area where it believes its
commitment to research can most
enhance returns
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign investments
o Currency exchange rate movements o Favorable exchange rate movements o The fund anticipates that its total
could reduce gains or create losses could generate gains or reduce foreign investments will not exceed
losses 20% of assets.
o The fund could lose money because
of foreign government actions, o Foreign investments, which o The fund actively manages the
political instability, or lack of represent a major portion of the currency exposure of its foreign
adequate and accurate information world's securities, offer investments relative to its
attractive potential performance benchmark, and may hedge back into
and opportunities for the U.S. dollar from time to time
diversification (see also "Derivatives")
- ------------------------------------------------------------------------------------------------------------------------------------
Derivatives
o Derivatives such as futures, o Hedges that correlate well with o The fund uses derivatives for
options, swaps and forward foreign underlying positions can reduce or hedging and for risk management
currency contracts that are used eliminate losses at low cost (i.e., to establish or adjust
for hedging the portfolio or exposure to particular securities,
specific securities may not fully o The fund could make money and markets or currencies); risk
offset the underlying positions(1) protect against losses if management may include management
management's analysis proves of the fund's exposure relative to
o Derivatives used for risk correct its benchmark
management may not have the
intended effects and may result in o Derivatives that involve leverage o The fund only establishes hedges
losses or missed opportunities could generate substantial gains at that it expects will be highly
low cost correlated with underlying
o The counterparty to a derivatives positions
contract could default
o While the fund may use derivatives
o Derivatives that involve leverage that incidentally involve leverage,
could magnify losses it does not use them for the
specific purpose of leveraging the
portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A futures contract is an agreement to buy or sell a set quantity of an
underlying instrument at a future date, or to make or receive a cash
payment based on changes in the value of a securities index. An option is
the right to buy or sell a set quntity of an underlying instrument at
pre-determined price. A swap is a privately negotiated agreement to
exchange one stream of payments for another. A forward foreign currency
contract is an obligation to buy or sell a given currency on a future date
and at a set price.
|
10 | FUND DETAILS
|
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Potential risks Potential rewards Policies to balance risk and reward
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Illiquid holdings
o The fund could have difficulty o These holdings may offer more o The fund may not invest more than
valuing these holdings precisely attractive yields or potential 15% of net assets in illiquid
growth than comparable widely holdings
o The fund could be unable to sell traded securities
these holdings at the time or price o To maintain adequate liquidity to
it desires meet redemptions, the fund may hold
investment-grade short-term
securities (including repurchase
agreements) and, for temporary or
extraordinary purposes, may borrow
from banks up to 33 1/3% of its
assets
- ------------------------------------------------------------------------------------------------------------------------------------
When-issued and delayed
delivery securities
o When the fund buys securities o The fund can take advantage of o The fund uses segregated accounts
before issue or for delayed attractive transaction to offset leverage risk
delivery, it could be exposed to opportunities
leverage risk if it does not use
segregated accounts
- ------------------------------------------------------------------------------------------------------------------------------------
Short-term trading
o Increased trading would raise the o The fund could realize gains in a o The fund anticipates a portfolio
fund's brokerage and related costs short period of time turnover rate of approximately 100%
o Increased short-term capital gains o The fund could protect against o The fund generally avoids
distributions would raise losses if a stock is overvalued and short-term trading, except to take
shareholders' income tax liability its value later falls advantage of attractive or
unexpected opportunities or to meet
demands generated by shareholder
activity
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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FUND DETAILS | 11
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|
12 |
|
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| 13
|
<PAGE>
================================================================================
FOR MORE INFORMATION
================================================================================
For investors who want more information on the fund, the following documents are
available free upon request:
Annual/Semi-annual Reports Contain financial statements, performance data,
information on portfolio holdings, and a written analysis of market conditions
and fund performance for the fund's most recently completed fiscal year or
half-year.
Statement of Additional Information (SAI) Provides a fuller technical and legal
description of the fund's policies, investment restrictions, and business
structure. This prospectus incorporates the SAI by reference.
Copies of the current versions of these documents, along with other information
about the fund, may be obtained by contacting:
J.P. Morgan Institutional Disciplined Equity Fund
J.P. Morgan Funds Services
522 Fifth Avenue
New York, NY 10036
Telephone: 1-800-766-7722
Hearing impaired: 1-888-468-4015
Email: [email protected]
Text-only versions of these documents and this prospectus are available, upon
payment of a duplicating fee, from the Public Reference Room of the Securities
and Exchange Commission in Washington, D.C. (1-800-SEC-0330) and may be viewed
on-screen or downloaded from the SEC's Internet site at http://www.sec.gov. The
fund's investment company and 1933 Act registration numbers are 811-07342 and
033-54642.
J.P. MORGAN INSTITUTIONAL FUNDS AND THE MORGAN TRADITION
The J.P. Morgan Institutional Funds combine a heritage of integrity and
financial leadership with comprehensive, sophisticated analysis and management
techniques. Drawing on J.P. Morgan's extensive experience and depth as an
investment manager, the J.P. Morgan Institutional Funds offer a broad array of
distinctive opportunities for mutual fund investors.
[LOGO] JPMorgan
================================================================================
J.P. Morgan Institutional Funds
Advisor Distributor
J.P. Morgan Investment Management Inc. Funds Distributor, Inc.
522 Fifth Avenue 60 State Street
New York, NY 10036 Boston, MA 02109
1-800-766-7722 1-800-221-7930
PROS304-9810
<PAGE>
PART C
ITEM 23. EXHIBITS.
(a) Declaration of Trust, as amended, was filed as Exhibit No. 1 to
Post-Effective Amendment No. 25 to the Registration Statement filed on September
26, 1996 (Accession Number 0000912057-96-021281).
(a)1 Amendment No. 5 to Declaration of Trust; Amendment and Fifth Amended
and Restated Establishment and
Designation of Series of Shares of Beneficial Interest.*
(a)2 Amendment No. 6 to Declaration of Trust; Amendment and Sixth Amended
and Restated Establishment and Designation of Series of Shares of Beneficial
Interest was filed as Exhibit No. 1(b) to Post-Effective Amendment No. 31 to the
Registration Statement on February 28, 1997 (Accession Number
0001016964-97-000041).
(a)3 Amendment No. 7 to Declaration of Trust; Amendment and Seventh Amended
and Restated Establishment and Designation of Series of Shares of Beneficial
Interest was filed as Exhibit No. 1(c) to Post-Effective Amendment No. 32 to the
Registration Statement on April 15, 1997 (Accession Number
0001016964-97-000053).
(a)4 Amendment No. 8 to Declaration of Trust; Amendment and Eighth Amended
and Restated Establishment and Designation of Series of Shares of Beneficial
Interest was filed as Exhibit No. 1(d) to Post-Effective Amendment No. 40 to the
Registration Statement on October 9, 1997 (Accession Number
0001016964-97-000158).
(a)5 Amendment No. 9 to Declaration of Trust; Amendment and Ninth Amended
and Restated Establishment and Designation of Series of Shares of Beneficial
Interest was filed as Exhibit No. 1(e) to Post-Effective Amendment No. 50 to the
Registration Statement on December 29, 1997 (Accession Number
0001041455-97-000014).
(a)6 Form of Amendment No. 10 to Declaration of Trust; Amendment to provide
dollar based voting rights filed as Exhibit (a)6 to Post Effective Amendment No.
54 to the Registration Statement on August 25, 1998 (Accession No.
0001041455-98-000053).
(b) Restated By-Laws of Registrant.*
(e) Distribution Agreement between Registrant and Funds Distributor, Inc.
("FDI").*
(g) Custodian Contract between Registrant and State Street Bank and Trust
Company ("State Street").*
(h)1 Co-Administration Agreement between Registrant and FDI.*
(h)2 Restated Shareholder Servicing Agreement between Registrant and Morgan
Guaranty Trust Company of New York ("Morgan Guaranty") filed as Exhibit (h)2 to
Post Effective Amendment No. 54 to the Registration Statement on August 25, 1998
(Accession No. 0001041455-98-000053).
(h)3 Transfer Agency and Service Agreement between Registrant and State
Street.*
(h)4 Restated Administrative Services Agreement between Registrant and
Morgan Guaranty.*
(h)5 Fund Services Agreement, as amended, between Registrant and Pierpont
Group, Inc.*
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
(h)6 Service Plan with respect to Registrant's Service Money Market Funds.**
(i) Opinion and consent of Sullivan & Cromwell.*
(j) Consent of independent accountants (filed herewith).
(l) Purchase agreements with respect to Registrant's initial shares.*
(n) Financial Data Schedules (filed herewith).
- -------------------------
* Incorporated herein by reference to Post-Effective Amendment No. 29 to
the Registration Statement filed on December 26, 1996 (Accession Number
0001016964-96-000061).
** Incorporated herein by reference to Post-Effective Amendment No. 33 to
the Registration Statement filed on April 30, 1997 (Accession Number
00001016964-97-000059).
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE FUND.
Not applicable.
ITEM 25. INDEMNIFICATION.
Reference is made to Section 5.3 of Registrant's Declaration of Trust and
Section 5 of Registrant's Distribution Agreement.
Registrant, its Trustees and officers are insured against certain expenses in
connection with the defense of claims, demands, actions, suits, or proceedings,
and certain liabilities that might be imposed as a result of such actions, suits
or proceedings.
Insofar as indemnification for liabilities arising under the Securities Act of
1933, as amended (the "1933 Act"), may be permitted to directors, trustees,
officers and controlling persons of the Registrant and the principal underwriter
pursuant to the foregoing provisions or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the 1933 Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, trustee, officer, or controlling person of the Registrant
and the principal underwriter in connection with the successful defense of any
action, suite or proceeding) is asserted against the Registrant by such
director, trustee, officer or controlling person or principal underwriter in
connection with the shares being registered, the Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the 1933 Act and
will be governed by the final adjudication of such issue.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF THE INVESTMENT ADVISER.
Not Applicable.
ITEM 27. PRINCIPAL UNDERWRITERS.
(a) Funds Distributor, Inc. (the "Distributor") is the principal
underwriter of the Registrant's shares.
Funds Distributor, Inc. acts as principal underwriter for the following
investment companies other than the Registrant:
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
American Century California Tax-Free and Municipal Funds
American Century Capital Portfolios, Inc.
American Century Government Income Trust
American Century International Bond Funds
American Century Investment Trust
American Century Municipal Trust
American Century Mutual Funds, Inc.
American Century Premium Reserves, Inc.
American Century Quantitative Equity Funds
American Century Strategic Asset Allocations, Inc.
American Century Target Maturities Trust
American Century Variable Portfolios, Inc.
American Century World Mutual Funds, Inc.
BJB Investment Funds
The Brinson Funds
Dresdner RCM Capital Funds, Inc.
Dresdner RCM Equity Funds, Inc.
Founders Funds, Inc.
Harris Insight Funds Trust
HT Insight Funds, Inc. d/b/a Harris Insight Funds
J.P. Morgan Funds
J.P. Morgan Series Trust
J.P. Morgan Series Trust II
LaSalle Partners Funds, Inc.
Monetta Fund, Inc.
Monetta Trust
The Montgomery Funds
The Montgomery Funds II
The Munder Framlington Funds Trust
The Munder Funds Trust
The Munder Funds, Inc.
Orbitex Group of Funds
St. Clair Funds, Inc.
The Skyline Funds
Waterhouse Investors Family of Funds, Inc.
WEBS Index Fund, Inc.
Funds Distributor, Inc. does not act as depositor or investment adviser to
any of the investment companies.
Funds Distributor, Inc. is registered with the Securities and Exchange
Commission as a broker-dealer and is a member of the National Association of
Securities Dealers. Funds Distributor, Inc. is located at 60 State Street, Suite
1300, Boston, Massachusetts 02109. Funds Distributor, Inc. is an indirect
wholly-owned subsidiary of Boston Institutional Group, Inc., a holding company
all of whose outstanding shares are owned by key employees.
(b) The following is a list of the executive officers, directors and
partners of Funds Distributor, Inc.:
Director, President and Chief Executive Officer: Marie E. Connolly
Executive Vice President: George Rio
Executive Vice President: Donald R. Roberson
Executive Vice President: William S. Nichols
Senior Vice President: Michael S. Petrucelli
Director, Senior Vice President, Treasurer and
Chief Financial Officer: Joseph F. Tower, III
Senior Vice President: Paula R. David
Senior Vice President: Allen B. Closser
Senior Vice President: Bernard A. Whalen
Director: William J. Nutt
(c) Not applicable.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS.
PIERPONT GROUP, INC.: 461 Fifth Avenue, New York, New York 10017 (records
relating to its assisting the Trustees in carrying out their duties in
supervising the Registrant's affairs).
MORGAN GUARANTY TRUST COMPANY OF NEW YORK: 60 Wall Street, New York, New York
10260-0060, 522 Fifth Avenue, New York, New York 10036 or 9 West 57th Street,
New York, New York 10019 (records relating to its functions as shareholder
servicing agent and administrative services agent).
STATE STREET BANK AND TRUST COMPANY: 1776 Heritage Drive, North Quincy,
Massachusetts 02171 and 40 King Street West, Toronto, Ontario, Canada M5H 3Y8
(records relating to its functions as fund accountant, custodian, transfer agent
and dividend disbursing agent).
FUNDS DISTRIBUTOR, INC.: 60 State Street, Suite 1300, Boston, Massachusetts
02109 (records relating to its functions as distributor and co-administrator).
ITEM 29. MANAGEMENT SERVICES.
Not Applicable.
ITEM 30. UNDERTAKINGS.
(a) If the information called for by Item 5A of Form N-1A is contained in
the latest annual report to shareholders, the Registrant shall furnish
each person to whom a prospectus is delivered with a copy of the
Registrant's latest annual report to shareholders upon request and
without charge.
(b) The Registrant undertakes to comply with Section 16(c) of the 1940 Act
as though such provisions of the 1940 Act were applicable to the
Registrant, except that the request referred to in the third full
paragraph thereof may only be made by shareholders who hold in the
aggregate at least 10% of the outstanding shares of the Registrant,
regardless of the net asset value of shares held by such requesting
shareholders.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant has duly caused this registration statement
to be signed on its behalf by the undersigned, thereto duly authorized, in the
City of New York and State of New York on the 28th day of September, 1998.
J.P. MORGAN INSTITUTIONAL FUNDS
By /s/ Michael S. Petrucelli
----------------------------
Michael S. Petrucelli
Vice President and Assistant Secretary
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed below by the following persons in the capacities
indicated on September 28, 1998.
/s/ Michael S. Petrucelli
- ------------------------------
Michael S. Petrucelli
Vice President and Assistant Secretary
Matthew Healey*
- -----------------------------
Matthew Healey
Trustee, Chairman and Chief Executive Officer (Principal Executive Officer)
Frederick S. Addy*
- ------------------------------
Frederick S. Addy
Trustee
William G. Burns*
- ------------------------------
William G. Burns
Trustee
Arthur C. Eschenlauer*
- ------------------------------
Arthur C. Eschenlauer
Trustee
Michael P. Mallardi*
- ------------------------------
Michael P. Mallardi
Trustee
*By /s/ Michael S. Petrucelli
----------------------------
Michael S. Petrucelli
as attorney-in-fact pursuant to a power of attorney.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
SIGNATURES
Each Portfolio has duly caused this registration statement on Form N-1A
("Registration Statement") of J.P. Morgan Institutional Funds (the "Trust")
(File No. 033-54642) to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of George Town, Grand Cayman, BWI on the 28th day of
September, 1998.
THE SSERIES PORTFOLIO, THE U.S. EQUITY PORTFOLIO AND THE U.S. SMALL COMPANY
PORTFOLIO
/s/ Jacqueline Henning
By -------------------------
Jacqueline Henning
Assistant Secretary and Assistant Treasurer
Pursuant to the requirements of the Securities Act of 1933, the Trust's
Registration Statement has been signed below by the following persons in the
capacities indicated on September 28, 1998.
George A. Rio*
- ----------------------------
George A. Rio
President and Treasurer
Officer of the Portfolios
Matthew Healey*
- ----------------------------
Matthew Healey
Trustee, Chairman and Chief Executive Officer
(Principal Executive Officer) of the Portfolios
Frederick S. Addy*
- ----------------------------
Frederick S. Addy
Trustee of the Portfolios
William G. Burns*
- ----------------------------
William G. Burns
Trustee of the Portfolios
Arthur C. Eschenlauer*
- ----------------------------
Arthur C. Eschenlauer
Trustee of the Portfolios
Michael P. Mallardi*
- ----------------------------
Michael P. Mallardi
Trustee of the Portfolios
/s/ Jacqueline Henning
*By ------------------------
Jacqueline Henning
as attorney-in-fact pursuant to a power of attorney previously filed.
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description of Exhibit
- ------------- ----------------------
EX-99.B11 Consent of Independent Accountants
EX-27.1-27.24 Financial Data Schedules
i:\dsfndlgl\institut\1098de.pea\wrapper.doc
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectuses and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 56 to the registration statement on Form N-1A (the "Registration
Statement") of our reports dated July 17, 1998, relating to the financial
statements and financial highlights of J.P. Morgan Institutional Disciplined
Equity Fund, J.P. Morgan Institutional U.S. Equity Fund and J.P. Morgan
Institutional U.S. Small Company Fund and the financial statements and
supplementary data of The Disciplined Equity Portfolio, The U.S. Equity
Portfolio and The U.S. Small Company Portfolio appearing in the May 31, 1998
Annual Reports, which are also incorporated by reference into the Registration
Statement. We also consent to the references to us under the heading "Financial
Highlights" in the Prospectuses and under the headings "Independent Accountants"
and "Financial Statements" in the Statement of Additional Information.
/s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP 1177 Avenue of the
Americas New York, New York 10036 September 24, 1998
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL PRIME MONEY
MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 012
<NAME> J.P. MORGAN INSTITUTIONAL PRIME MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 3,302,074
<RECEIVABLES> 266
<ASSETS-OTHER> 7
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,302,347
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,790
<TOTAL-LIABILITIES> 4,790
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,297,881
<SHARES-COMMON-STOCK> 3,297,871
<SHARES-COMMON-PRIOR> 1,388,102
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (38)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 3,297,557
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 56,857
<OTHER-INCOME> 0
<EXPENSES-NET> 305
<NET-INVESTMENT-INCOME> 56,552
<REALIZED-GAINS-CURRENT> (2)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 56,550
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 56,552
<DISTRIBUTIONS-OF-GAINS> (1)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,535,880
<NUMBER-OF-SHARES-REDEEMED> 9,660,086
<SHARES-REINVESTED> 33,974
<NET-CHANGE-IN-ASSETS> 1,909,765
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,006
<AVERAGE-NET-ASSETS> 2,041,360
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .028
<PER-SHARE-GAIN-APPREC> .000
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .028
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REPORT ON FORM N-SAR DATED FEBRUARY 28, 1998 FOR J.P.MORGAN INSTITUTIONAL TAX
EXEMPT MONEY MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 007
<NAME> J.P.MORGAN INSTITUTIONAL TAX EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 641,743
<INVESTMENTS-AT-VALUE> 641,743
<RECEIVABLES> 25
<ASSETS-OTHER> 5
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 641,773
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 375
<TOTAL-LIABILITIES> 375
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 641,358
<SHARES-COMMON-STOCK> 641,359
<SHARES-COMMON-PRIOR> 290,970
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 39
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 641,398
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,687
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 6,687
<REALIZED-GAINS-CURRENT> 66
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 6,753
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,687
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,433,637
<NUMBER-OF-SHARES-REDEEMED> 1,087,384
<SHARES-REINVESTED> 4,135
<NET-CHANGE-IN-ASSETS> 350,454
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 122
<AVERAGE-NET-ASSETS> 394,328
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .017
<PER-SHARE-GAIN-APPREC> .000
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .017
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL FEDERAL MONEY
MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 001
<NAME> J.P. MORGAN INSTITUTIONAL FEDERAL MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 644086
<RECEIVABLES> 54
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 644143
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 446
<TOTAL-LIABILITIES> 446
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 643698
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1)
<NET-ASSETS> 643697
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 9408
<OTHER-INCOME> 0
<EXPENSES-NET> 338
<NET-INVESTMENT-INCOME> 9070
<REALIZED-GAINS-CURRENT> 1
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 9071
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9070
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1474755
<NUMBER-OF-SHARES-REDEEMED> 975745
<SHARES-REINVESTED> 7380
<NET-CHANGE-IN-ASSETS> 506391
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 619
<AVERAGE-NET-ASSETS> 341087
<PER-SHARE-NAV-BEGIN> 1.0
<PER-SHARE-NII> .027
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .027
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.0
<EXPENSE-RATIO> .20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL SHORT TERM BOND
FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 002
<NAME> J.P. MORGAN INSTITUTIONAL SHORT TERM BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 76855
<RECEIVABLES> 113
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 76970
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 36
<TOTAL-LIABILITIES> 36
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 77117
<SHARES-COMMON-STOCK> 7818
<SHARES-COMMON-PRIOR> 2781
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 12
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 188
<ACCUM-APPREC-OR-DEPREC> 17
<NET-ASSETS> 76934
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 1806
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 1806
<REALIZED-GAINS-CURRENT> 55
<APPREC-INCREASE-CURRENT> (16)
<NET-CHANGE-FROM-OPS> 1846
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1809
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5813
<NUMBER-OF-SHARES-REDEEMED> 952
<SHARES-REINVESTED> 176
<NET-CHANGE-IN-ASSETS> 49558
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 9
<OVERDIST-NET-GAINS-PRIOR> 243
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 99
<AVERAGE-NET-ASSETS> 59114
<PER-SHARE-NAV-BEGIN> 9.84
<PER-SHARE-NII> .3
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .3
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.84
<EXPENSE-RATIO> .25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL BOND FUND AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 003
<NAME> J.P. MORGAN INSTITUTIONAL BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 910,661
<RECEIVABLES> 462
<ASSETS-OTHER> 7
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 911,130
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,839
<TOTAL-LIABILITIES> 2,839
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 889,240
<SHARES-COMMON-STOCK> 91,073
<SHARES-COMMON-PRIOR> 91,147
<ACCUMULATED-NII-CURRENT> 391
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,636
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 15,024
<NET-ASSETS> 908,291
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 29,883
<EXPENSES-NET> 558
<NET-INVESTMENT-INCOME> 29,325
<REALIZED-GAINS-CURRENT> 3,719
<APPREC-INCREASE-CURRENT> (586)
<NET-CHANGE-FROM-OPS> 32,458
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 29,384
<DISTRIBUTIONS-OF-GAINS> 5,896
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,594
<NUMBER-OF-SHARES-REDEEMED> 11,704
<SHARES-REINVESTED> 2,035
<NET-CHANGE-IN-ASSETS> (3,763)
<ACCUMULATED-NII-PRIOR> 450
<ACCUMULATED-GAINS-PRIOR> 5,813
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 558
<AVERAGE-NET-ASSETS> 895,898
<PER-SHARE-NAV-BEGIN> 10.01
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 0.03
<PER-SHARE-DIVIDEND> 0.33
<PER-SHARE-DISTRIBUTIONS> 0.07
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.97
<EXPENSE-RATIO> 0.49
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REPORT ON FORM N-SAR DATED FEBRUARY 28, 1998 FOR J.P. MORGAN INSTITUTIONAL TAX
EXEMPT BOND FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 006
<NAME> J.P. MORGAN INSTITUTIONAL TAX EXEMPT BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 243,891
<INVESTMENTS-AT-VALUE> 243,891
<RECEIVABLES> 2
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 243,897
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 674
<TOTAL-LIABILITIES> 674
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 235,394
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 44
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,785
<NET-ASSETS> 243,223
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,316
<OTHER-INCOME> 0
<EXPENSES-NET> 142
<NET-INVESTMENT-INCOME> 5,174
<REALIZED-GAINS-CURRENT> 64
<APPREC-INCREASE-CURRENT> 3,964
<NET-CHANGE-FROM-OPS> 9,202
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,174
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 66,036
<NUMBER-OF-SHARES-REDEEMED> 30,101
<SHARES-REINVESTED> 1,646
<NET-CHANGE-IN-ASSETS> 41,609
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (20)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 162
<AVERAGE-NET-ASSETS> 223,760
<PER-SHARE-NAV-BEGIN> 10.12
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> .0
<PER-SHARE-DISTRIBUTIONS> .24
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.31
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REPORT ON FORM N-SAR DATED MARCH 31, 1998 FOR J.P. MORGAN INSTITUTIONAL NEW YORK
TOTAL RETURN BOND FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 013
<NAME> J.P. MORGAN INSTITUTIONAL NEW YORK TOTAL RETURN BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 111759
<RECEIVABLES> 31
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 111792
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 374
<TOTAL-LIABILITIES> 11418
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107644
<SHARES-COMMON-STOCK> 10441
<SHARES-COMMON-PRIOR> 8809
<ACCUMULATED-NII-CURRENT> 44
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 138
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3592
<NET-ASSETS> 111418
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5140
<OTHER-INCOME> 0
<EXPENSES-NET> 510
<NET-INVESTMENT-INCOME> 4630
<REALIZED-GAINS-CURRENT> 535
<APPREC-INCREASE-CURRENT> 3136
<NET-CHANGE-FROM-OPS> 8301
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4630
<DISTRIBUTIONS-OF-GAINS> 332
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4438
<NUMBER-OF-SHARES-REDEEMED> 2899
<SHARES-REINVESTED> 91
<NET-CHANGE-IN-ASSETS> 20626
<ACCUMULATED-NII-PRIOR> 44
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 600
<AVERAGE-NET-ASSETS> 68773
<PER-SHARE-NAV-BEGIN> 10.31
<PER-SHARE-NII> .48
<PER-SHARE-GAIN-APPREC> .40
<PER-SHARE-DIVIDEND> .48
<PER-SHARE-DISTRIBUTIONS> .04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.67
<EXPENSE-RATIO> .50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON FORM
N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL U.S. EQUITY FUND AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 010
<NAME> J.P. MORGAN INSTITUTIONAL U.S EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 379,003
<RECEIVABLES> 44
<ASSETS-OTHER> 23
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 379,070
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 82
<TOTAL-LIABILITIES> 82
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 276,263
<SHARES-COMMON-STOCK> 22,652
<SHARES-COMMON-PRIOR> 21,060
<ACCUMULATED-NII-CURRENT> 790
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 42,379
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 59,556
<NET-ASSETS> 378,988
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 3,698
<EXPENSES-NET> 482
<NET-INVESTMENT-INCOME> 3,216
<REALIZED-GAINS-CURRENT> 84,156
<APPREC-INCREASE-CURRENT> 2,673
<NET-CHANGE-FROM-OPS> 90,045
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,867
<DISTRIBUTIONS-OF-GAINS> 57,684
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,995
<NUMBER-OF-SHARES-REDEEMED> 6,122
<SHARES-REINVESTED> 3,719
<NET-CHANGE-IN-ASSETS> 49,212
<ACCUMULATED-NII-PRIOR> 1,443
<ACCUMULATED-GAINS-PRIOR> 26,884
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 597
<AVERAGE-NET-ASSETS> 360,672
<PER-SHARE-NAV-BEGIN> 15.66
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 3.81
<PER-SHARE-DIVIDEND> 0.18
<PER-SHARE-DISTRIBUTIONS> 2.71
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.73
<EXPENSE-RATIO> 0.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON FORM
N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY
FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 011
<NAME> J.P. MORGAN INSTITUTIONAL U.S. SMALL COMPANY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 420072
<RECEIVABLES> 420
<ASSETS-OTHER> 14
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 420506
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 93
<TOTAL-LIABILITIES> 93
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 348593
<SHARES-COMMON-STOCK> 27474
<SHARES-COMMON-PRIOR> 28511
<ACCUMULATED-NII-CURRENT> 359
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36599
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 34862
<NET-ASSETS> 420413
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 2926
<EXPENSES-NET> 501
<NET-INVESTMENT-INCOME> 2425
<REALIZED-GAINS-CURRENT> 102704
<APPREC-INCREASE-CURRENT> (14451)
<NET-CHANGE-FROM-OPS> 90678
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2161
<DISTRIBUTIONS-OF-GAINS> 52222
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5152
<NUMBER-OF-SHARES-REDEEMED> 7445
<SHARES-REINVESTED> 1256
<NET-CHANGE-IN-ASSETS> 18616
<ACCUMULATED-NII-PRIOR> 553
<ACCUMULATED-GAINS-PRIOR> 17869
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 732
<AVERAGE-NET-ASSETS> 437716
<PER-SHARE-NAV-BEGIN> 14.09
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> 3.04
<PER-SHARE-DIVIDEND> .08
<PER-SHARE-DISTRIBUTIONS> 1.84
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.30
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL INTERNATIONAL
EQUITY FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 004
<NAME> J.P. MORGAN INSTITUTIONAL INTERNATIONAL EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 509239
<RECEIVABLES> 285
<ASSETS-OTHER> 8
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 509532
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 937
<TOTAL-LIABILITIES> 937
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 414499
<SHARES-COMMON-STOCK> 41284
<SHARES-COMMON-PRIOR> 53982
<ACCUMULATED-NII-CURRENT> 330
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4668
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 89098
<NET-ASSETS> 508595
<DIVIDEND-INCOME> 3941
<INTEREST-INCOME> 542
<OTHER-INCOME> 0
<EXPENSES-NET> 2574
<NET-INVESTMENT-INCOME> 1909
<REALIZED-GAINS-CURRENT> 4785
<APPREC-INCREASE-CURRENT> 63315
<NET-CHANGE-FROM-OPS> 70009
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 16640
<DISTRIBUTIONS-OF-GAINS> 16688
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3528
<NUMBER-OF-SHARES-REDEEMED> 17699
<SHARES-REINVESTED> 1473
<NET-CHANGE-IN-ASSETS> (106064)
<ACCUMULATED-NII-PRIOR> 15062
<ACCUMULATED-GAINS-PRIOR> 16571
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 56
<GROSS-EXPENSE> 2574
<AVERAGE-NET-ASSETS> 528377
<PER-SHARE-NAV-BEGIN> 11.39
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 1.55
<PER-SHARE-DIVIDEND> .35
<PER-SHARE-DISTRIBUTIONS> .35
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.32
<EXPENSE-RATIO> .96
<AVG-DEBT-OUTSTANDING> 2660
<AVG-DEBT-PER-SHARE> .06
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL SUMMARY DATA EXTRACTED FROM THE
REPORT ON FROM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL EMERGING
MARKETS EQUITY FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 005
<NAME> J.P. MORGAN INSTITUTIONAL EMERGING MARKETS EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 260061
<RECEIVABLES> 346
<ASSETS-OTHER> 38
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 260445
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 107
<TOTAL-LIABILITIES> 107
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 302568
<SHARES-COMMON-STOCK> 28022
<SHARES-COMMON-PRIOR> 31075
<ACCUMULATED-NII-CURRENT> (112)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (49402)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7284
<NET-ASSETS> 260338
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 1452
<EXPENSES-NET> 257
<NET-INVESTMENT-INCOME> 1195
<REALIZED-GAINS-CURRENT> (48126)
<APPREC-INCREASE-CURRENT> 47015
<NET-CHANGE-FROM-OPS> 83
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2993
<DISTRIBUTIONS-OF-GAINS> 11850
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11165
<NUMBER-OF-SHARES-REDEEMED> 15446
<SHARES-REINVESTED> 1228
<NET-CHANGE-IN-ASSETS> (46043)
<ACCUMULATED-NII-PRIOR> 1686
<ACCUMULATED-GAINS-PRIOR> 10574
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 90
<GROSS-EXPENSE> 311
<AVERAGE-NET-ASSETS> 254338
<PER-SHARE-NAV-BEGIN> 9.86
<PER-SHARE-NII> 0.07
<PER-SHARE-GAIN-APPREC> (0.01)
<PER-SHARE-DIVIDEND> (0.13)
<PER-SHARE-DISTRIBUTIONS> (0.50)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.29
<EXPENSE-RATIO> 1.46
<AVG-DEBT-OUTSTANDING> 3025
<AVG-DEBT-PER-SHARE> 0.11
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED JUNE 30, 1998 FOR J.P. MORGAN INSTITUTIONAL DIVERSIFIED
FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 008
<NAME> J.P. MORGAN INSTITUTIONAL DIVERSIFIED FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 331984
<RECEIVABLES> 184
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 332171
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 225
<TOTAL-LIABILITIES> 225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 258037
<SHARES-COMMON-STOCK> 23401
<SHARES-COMMON-PRIOR> 22115
<ACCUMULATED-NII-CURRENT> 335
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12579
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60995
<NET-ASSETS> 331946
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 9002
<EXPENSES-NET> 1
<NET-INVESTMENT-INCOME> 9001
<REALIZED-GAINS-CURRENT> 18284
<APPREC-INCREASE-CURRENT> 21984
<NET-CHANGE-FROM-OPS> 49269
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 12389
<DISTRIBUTIONS-OF-GAINS> 17151
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5286
<NUMBER-OF-SHARES-REDEEMED> 1682
<SHARES-REINVESTED> 2067
<NET-CHANGE-IN-ASSETS> 94498
<ACCUMULATED-NII-PRIOR> 160
<ACCUMULATED-GAINS-PRIOR> 608
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 508
<AVERAGE-NET-ASSETS> 288049
<PER-SHARE-NAV-BEGIN> 13.39
<PER-SHARE-NII> .39
<PER-SHARE-GAIN-APPREC> 1.89
<PER-SHARE-DIVIDEND> .59
<PER-SHARE-DISTRIBUTIONS> .9
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.18
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED MARCH 31, 1998 FOR J.P. MORGAN INSTITUTIONAL INTERNATIONAL BOND
FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 008
<NAME> J.P. MORGAN INSTITUTIONAL INTERNATIONAL BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 6229
<RECEIVABLES> 14
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6252
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 54
<TOTAL-LIABILITIES> 54
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6068
<SHARES-COMMON-STOCK> 764
<SHARES-COMMON-PRIOR> 823
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (205)
<ACCUMULATED-NET-GAINS> 477
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (142)
<NET-ASSETS> 6198
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 139
<EXPENSES-NET> 1
<NET-INVESTMENT-INCOME> 138
<REALIZED-GAINS-CURRENT> 375
<APPREC-INCREASE-CURRENT> (132)
<NET-CHANGE-FROM-OPS> 381
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 668
<DISTRIBUTIONS-OF-GAINS> 172
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 509
<NUMBER-OF-SHARES-REDEEMED> 658
<SHARES-REINVESTED> 89
<NET-CHANGE-IN-ASSETS> (928)
<ACCUMULATED-NII-PRIOR> 325
<ACCUMULATED-GAINS-PRIOR> 274
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23
<AVERAGE-NET-ASSETS> 7326
<PER-SHARE-NAV-BEGIN> 8.65
<PER-SHARE-NII> .10
<PER-SHARE-GAIN-APPREC> .32
<PER-SHARE-DIVIDEND> .76
<PER-SHARE-DISTRIBUTIONS> .20
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.11
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED JUNE 30, 1998 FOR J.P. MORGAN INSTITUTIONAL EUROPEAN
EQUITY FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 014
<NAME> J.P. MORGAN INSTITUTIONAL EUROPEAN EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 21456
<RECEIVABLES> 10
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 68
<TOTAL-ASSETS> 21534
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38
<TOTAL-LIABILITIES> 38
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20732
<SHARES-COMMON-STOCK> 1374
<SHARES-COMMON-PRIOR> 810
<ACCUMULATED-NII-CURRENT> 158
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 514
<ACCUM-APPREC-OR-DEPREC> 1120
<NET-ASSETS> 21496
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 169
<EXPENSES-NET> 7
<NET-INVESTMENT-INCOME> 162
<REALIZED-GAINS-CURRENT> 1078
<APPREC-INCREASE-CURRENT> 826
<NET-CHANGE-FROM-OPS> 2067
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 779
<NUMBER-OF-SHARES-REDEEMED> 215
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 11322
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 4
<OVERDIST-NET-GAINS-PRIOR> 1593
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 42
<AVERAGE-NET-ASSETS> 13252
<PER-SHARE-NAV-BEGIN> 12.56
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> 2.96
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.64
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 72
<AVG-DEBT-PER-SHARE> .08
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED JUNE 30, 1998 FOR J.P. MORGAN INSTITUTIONAL JAPAN EQUITY
FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 016
<NAME> J.P. MORGAN INSTITUTIONAL JAPAN EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 1334
<RECEIVABLES> 0
<ASSETS-OTHER> 5
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1339
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24
<TOTAL-LIABILITIES> 24
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3181
<SHARES-COMMON-STOCK> 221
<SHARES-COMMON-PRIOR> 305
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 14
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 2128
<ACCUM-APPREC-OR-DEPREC> 276
<NET-ASSETS> 1315
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 1
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 1
<REALIZED-GAINS-CURRENT> (908)
<APPREC-INCREASE-CURRENT> 871
<NET-CHANGE-FROM-OPS> (36)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14
<NUMBER-OF-SHARES-REDEEMED> 98
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (558)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (15)
<OVERDIST-NET-GAINS-PRIOR> (1219)
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26
<AVERAGE-NET-ASSETS> 1639
<PER-SHARE-NAV-BEGIN> 6.14
<PER-SHARE-NII> (.00)
<PER-SHARE-GAIN-APPREC> (.19)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.95
<EXPENSE-RATIO> .92
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL DISCIPLINED
EQUITY FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 0
<NAME> J.P. MORGAN INSTITUTIONAL DISCIPLINED EQUITY FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 296107
<RECEIVABLES> 229
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 296346
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 155
<TOTAL-LIABILITIES> 155
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 253085
<SHARES-COMMON-STOCK> 19799
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 779
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 11188
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 31139
<NET-ASSETS> 296191
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 2835
<EXPENSES-NET> 743
<NET-INVESTMENT-INCOME> 2092
<REALIZED-GAINS-CURRENT> 12850
<APPREC-INCREASE-CURRENT> 28026
<NET-CHANGE-FROM-OPS> 42968
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1506
<DISTRIBUTIONS-OF-GAINS> 1517
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16123
<NUMBER-OF-SHARES-REDEEMED> 893
<SHARES-REINVESTED> 233
<NET-CHANGE-IN-ASSETS> 246465
<ACCUMULATED-NII-PRIOR> 192
<ACCUMULATED-GAINS-PRIOR> (144)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1189
<AVERAGE-NET-ASSETS> 165110
<PER-SHARE-NAV-BEGIN> 11.47
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 3.62
<PER-SHARE-DIVIDEND> 0.12
<PER-SHARE-DISTRIBUTIONS> 0.13
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL INTERNATIONAL
OPPORTUNITIES FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 017
<NAME> J.P. MORGAN INSTITUTIONAL INTERNATIONAL OPPORTUNITIES FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 441052
<RECEIVABLES> 2404
<ASSETS-OTHER> 654
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 444110
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 16197
<TOTAL-LIABILITIES> 16197
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 396488
<SHARES-COMMON-STOCK> 38573
<SHARES-COMMON-PRIOR> 21257
<ACCUMULATED-NII-CURRENT> 2820
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8786
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19819
<NET-ASSETS> 427913
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 3152
<EXPENSES-NET> 292
<NET-INVESTMENT-INCOME> 2860
<REALIZED-GAINS-CURRENT> 12365
<APPREC-INCREASE-CURRENT> 27134
<NET-CHANGE-FROM-OPS> 42359
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1945
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22575
<NUMBER-OF-SHARES-REDEEMED> 5318
<SHARES-REINVESTED> 59
<NET-CHANGE-IN-ASSETS> 216684
<ACCUMULATED-NII-PRIOR> 1906
<ACCUMULATED-GAINS-PRIOR> (3579)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 311
<AVERAGE-NET-ASSETS> 376535
<PER-SHARE-NAV-BEGIN> 9.94
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 1.17
<PER-SHARE-DIVIDEND> 0.07
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.09
<EXPENSE-RATIO> 0.94
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL GLOBAL STRATEGIC
INCOME FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 019
<NAME> J.P. MORGAN INSTITUTIONAL GLOBAL STRATEGIC INCOME FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 190320
<RECEIVABLES> 8039
<ASSETS-OTHER> 28
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 198387
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 809
<TOTAL-LIABILITIES> 809
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 194919
<SHARES-COMMON-STOCK> 19156
<SHARES-COMMON-PRIOR> 10340
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 185
<ACCUMULATED-NET-GAINS> 67
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2777
<NET-ASSETS> 197578
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 5289
<EXPENSES-NET> 18
<NET-INVESTMENT-INCOME> 5271
<REALIZED-GAINS-CURRENT> (25)
<APPREC-INCREASE-CURRENT> 2775
<NET-CHANGE-FROM-OPS> 8021
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5641
<DISTRIBUTIONS-OF-GAINS> 298
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9377
<NUMBER-OF-SHARES-REDEEMED> 727
<SHARES-REINVESTED> 166
<NET-CHANGE-IN-ASSETS> 92527
<ACCUMULATED-NII-PRIOR> 185
<ACCUMULATED-GAINS-PRIOR> 389
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 140
<AVERAGE-NET-ASSETS> 146989
<PER-SHARE-NAV-BEGIN> 10.16
<PER-SHARE-NII> .39
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> .40
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.31
<EXPENSE-RATIO> .65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL SERVICE TREASURY
MONEY MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 020
<NAME> J.P. MORGAN INSTITUTIONAL SERVICE TREASURY MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 359300
<RECEIVABLES> 30
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 359340
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1808
<TOTAL-LIABILITIES> 1808
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 357534
<SHARES-COMMON-STOCK> 357534
<SHARES-COMMON-PRIOR> 35982
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 357532
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6812
<OTHER-INCOME> 0
<EXPENSES-NET> 313
<NET-INVESTMENT-INCOME> 6499
<REALIZED-GAINS-CURRENT> (2)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 6497
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6499
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2899516
<NUMBER-OF-SHARES-REDEEMED> 2578144
<SHARES-REINVESTED> 180
<NET-CHANGE-IN-ASSETS> 321550
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 467
<AVERAGE-NET-ASSETS> 252890
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> .026
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .026
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> .35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL TREASURY MONEY
MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 021
<NAME> J.P. MORGAN INSTITUTIONAL TREASURY MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 199779
<RECEIVABLES> 16
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 199805
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 554
<TOTAL-LIABILITIES> 554
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 199255
<SHARES-COMMON-STOCK> 199255
<SHARES-COMMON-PRIOR> 80922
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 199251
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3786
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 3786
<REALIZED-GAINS-CURRENT> (5)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3781
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3786
<DISTRIBUTIONS-OF-GAINS> 1
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 799866
<NUMBER-OF-SHARES-REDEEMED> 683427
<SHARES-REINVESTED> 1894
<NET-CHANGE-IN-ASSETS> 118327
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 112
<AVERAGE-NET-ASSETS> 140108
<PER-SHARE-NAV-BEGIN> 1
<PER-SHARE-NII> .027
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .027
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1
<EXPENSE-RATIO> .09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON FORM
N-SAR DATED MAY 31, 1998 FOR J.P. MORGAN INSTITUTIONAL SERVICE PRIME MONEY
MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 22
<NAME> J.P. MORGAN INSTITUTIONAL SERVICE PRIME MONEY MARKET FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 608,608
<RECEIVABLES> 57
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 608,674
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,500
<TOTAL-LIABILITIES> 2,500
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 606,176
<SHARES-COMMON-STOCK> 606,176
<SHARES-COMMON-PRIOR> 384
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 606,174
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 5,178
<OTHER-INCOME> 0
<EXPENSES-NET> 263
<NET-INVESTMENT-INCOME> 4,915
<REALIZED-GAINS-CURRENT> (1)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 4,914
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,915
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,114,425
<NUMBER-OF-SHARES-REDEEMED> 508,716
<SHARES-REINVESTED> 82
<NET-CHANGE-IN-ASSETS> 605,790
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 360
<AVERAGE-NET-ASSETS> 187,863
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .027
<PER-SHARE-GAIN-APPREC> .000
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .027
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED FEBRUARY 28, 1998 FOR J.P. MORGAN INSTITUTIONAL SERVICE TAX
EXEMPT MONEY MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 23
<NAME> INSTITUTIONAL SERVICE TAX EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 38,595
<INVESTMENTS-AT-VALUE> 38,595
<RECEIVABLES> 6,717
<ASSETS-OTHER> 10,301
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 55,613
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 37,703
<TOTAL-LIABILITIES> 37,703
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17,906
<SHARES-COMMON-STOCK> 17,906
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 17,910
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 369
<OTHER-INCOME> 0
<EXPENSES-NET> 32
<NET-INVESTMENT-INCOME> 337
<REALIZED-GAINS-CURRENT> 4
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 341
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 337
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 238,645
<NUMBER-OF-SHARES-REDEEMED> 220,739
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 17,910
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 27,441
<AVERAGE-NET-ASSETS> 28,605
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .009
<PER-SHARE-GAIN-APPREC> .000
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .009
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL SERVICE FEDERAL
MONEY MARKET FUND AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 24
<NAME> J.P. MORGAN INSTITUTIONAL SERVICE FEDERAL MONEY MARKET FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 12464
<RECEIVABLES> 6
<ASSETS-OTHER> 10
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 12480
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 51
<TOTAL-LIABILITIES> 51
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12429
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 12429
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 24
<OTHER-INCOME> 0
<EXPENSES-NET> 2
<NET-INVESTMENT-INCOME> 22
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 22
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 22
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25900
<NUMBER-OF-SHARES-REDEEMED> 13471
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12429
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39
<AVERAGE-NET-ASSETS> 880
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .026
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .026
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL DATA EXTRACTED FROM THE REPORT ON
FORM N-SAR DATED APRIL 30, 1998 FOR J.P. MORGAN INSTITUTIONAL BOND FUND - ULTRA
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH REPORT.
</LEGEND>
<CIK> 0000894088
<NAME> J.P. MORGAN INSTITUTIONAL FUNDS
<SERIES>
<NUMBER> 25
<NAME> J.P. MORGAN INSTITUTIONAL BOND FUND - ULTRA
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 68,985
<RECEIVABLES> 13
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 69,007
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 265
<TOTAL-LIABILITIES> 265
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,743
<SHARES-COMMON-STOCK> 6,845
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 13
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 343
<ACCUM-APPREC-OR-DEPREC> 329
<NET-ASSETS> 68,743
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 1,053
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 1,053
<REALIZED-GAINS-CURRENT> (343)
<APPREC-INCREASE-CURRENT> 329
<NET-CHANGE-FROM-OPS> 1,039
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,040
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,806
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 39
<NET-CHANGE-IN-ASSETS> 68,743
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46
<AVERAGE-NET-ASSETS> 41,695
<PER-SHARE-NAV-BEGIN> 10.03
<PER-SHARE-NII> 0.25
<PER-SHARE-GAIN-APPREC> 0.01
<PER-SHARE-DIVIDEND> 0.25
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.04
<EXPENSE-RATIO> 0.36
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
