J.P. Morgan Funds
J.P. Morgan Institutional Funds
Supplement dated September 28, 1998, as applicable to the following
Prospectuses:
J.P. Morgan Global Strategic Income Fund, dated March 2, 1998
J.P. Morgan Fixed Income Funds (Combined), dated March 13, 1998
Effective October 12, 1998 the fund's credit quality restrictions for emerging
market securities have been amended.
The paragraph under the heading "Investment Approach" is deleted and replaced
with the following:
The fund invests in a wide range of debt securities from the U.S. and other
markets, both developed and emerging. Issuers may include governments,
corporations, financial institutions, and supranational organizations (such as
the World Bank). The fund may invest directly in mortgages and in
mortgage-backed securities. The fund's securities may be of any maturity, but
under normal market conditions the fund's duration will generally be similar to
that of the Lehman Brothers Aggregate Bond Index (currently about four and a
half years). At least 40% of assets must be invested in securities that, at the
time of purchase, are rated investment-grade (BBB/Baa or better) or are the
unrated equivalent. The fund's emerging market component (no more than 25% of
fund assets) has no minimum credit quality rating standard and therefore may
invest without limit in securities that are in the lowest rating categories (or
are the unrated equivalent). The balance of assets must be invested in
securities rated B or higher (or are the unrated equivalent).
The following replaces the first paragraph of the "Potential Risks And Rewards"
section:
The fund's share price and total return will vary in response to changes in
global bond markets, interest rates, and currency exchange rates. How well the
fund's performance compares to that of similar fixed income funds will depend on
the success of the investment process. Because of low credit and foreign and
emerging markets investment risks, the fund's performance is likely to be more
volatile than that of most fixed income funds. Lower rated securities offer
higher potential yields, but they are speculative in that they involve greater
risk of principal loss and are more sensitive to economic changes and industry
developments than investment grade bonds. The fund's mortgage-backed investments
involve the risk of losses due to default or to prepayments that occur earlier
or later than expected. Some investments, including directly owned mortgages,
may be illiquid. The fund has the potential for long-term total returns that
exceed those of more traditional bond funds, but investors should also be
prepared for risks that exceed those of more traditional bond funds.
