J.P. Morgan Institutional Funds
Supplement dated October 13, 1999 to the following Prospectus:
J.P. MORGAN INSTITUTIONAL FIXED INCOME FUNDS, DATED AUGUST 2, 1999
The following replaces the section entitled "Performance" on page 9 with
respect to J.P. MORGAN INSTITUTIONAL TAX EXEMPT BOND FUND:
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Institutional Tax Exempt Bond Fund.
The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the fund's last ten calendar
years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past one and five years compare to those of the Lehman Brothers
1-16 Year Municipal Bond Index, the fund's current benchmark. Since this index
has not been in existence during all of the past ten years, the table also shows
the performance of the Lehman Quality Intermediate Municipal Bond Index, the
fund's previous benchmark. Both are unmanaged indices that measure municipal
bond market performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
<TABLE>
<CAPTION>
Year-by-year total return (%) Shows changes in returns by calendar year(1,2)
- -----------------------------------------------------------------------
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
20%
13.50
10.92 9.58
10% 8.25
6.87 7.47 7.58
3.71 5.65
0%
(2.53)
(10%)
</TABLE>
[_] J.P. Morgan Institutional Tax Exempt Bond Fund
The fund's year-to-date total return as of 9/30/99 is (0.64%). For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 5.16% (for the quarter ended 3/31/95); and the lowest quarterly
return was -3.08% (for the quarter ended 3/31/94).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for periods
ended December 31, 1998
- -----------------------------------------------------------------------
Past 1 yr. Past 5 yrs. Past 10 yrs.(1)
<S> <C> <C> <C>
J.P. Morgan Institutional Tax Exempt Bond Fund (after expenses) 5.65 5.45 7.02
- -----------------------------------------------------------------------
Lehman Brothers 1-16 Year Municipal Bond Index (no expenses) 6.25 5.86 N/A
- -----------------------------------------------------------------------
Lehman Quality Intermediate Municipal Bond Index (no expenses) 6.01 5.60 7.55
- -----------------------------------------------------------------------
</TABLE>
(1) The fund commenced operations on 7/12/93. For the period 1/1/88 through
7/31/93 returns reflect performance of The Pierpont Tax Exempt Bond Fund, the
predecessor of the fund, which commenced operations on 10/3/84.
(2) The fund's fiscal year end is 7/31.
IM0667
