J.P. Morgan Institutional Funds Supplement dated October 26, 2000, to the
J.P. Morgan Institutional Fixed Income Funds Prospectus dated March 1, 2000 as
revised September 1, 2000
Institutional Tax Exempt Bond Fund. The benchmark for the fund will now
be the Lehman Brothers Intermediate Competitive Bond Index (1-17), an
unmanaged index that measures municipal bond market performance and is
more widely disseminated than the Lehman Brothers 1-16 Year Municipal
Bond Index, previously used by the fund. Accordingly, the reference in
the third paragraph under the heading "Investment Approach-Principal
Strategies" on page 1, to the Lehman Brothers 1-16 Year Municipal Bond
Index is replaced with the Lehman Brothers Intermediate Competitive
Bond Index (1-17).
Institutional New York Tax Exempt Bond Fund. The benchmark for the fund
will now be the Lehman Brothers New York Competitive Intermediate Bond
Index (1-17), a state specific index that is more reflective of the mix
of securities that the fund invests in. The reference, in the third
paragraph under the heading "Investment Approach - Principal
Strategies" on page 9, to the Lehman Brothers 1-16 Year Municipal Bond
Index should be to the Lehman Brothers New York Competitive
Intermediate Bond Index (1-17). Both are unmanaged indices that measure
municipal bond market performance.
The first bullet point regarding derivatives under the column "Policies
to balance risk and reward" on page 18 is hereby replaced by the
following:
"The funds use derivatives, such as futures, options, swaps
and forward foreign currency contracts, for hedging and for
risk management (i.e., to adjust duration or yield curve
exposure, or to establish or adjust exposure to particular
securities, markets, or currencies); risk management may
include management of a fund's exposure relative to its
benchmark; the Tax Exempt Bond and New York Tax Exempt Bond
funds are permitted to enter into futures, options and swap
transactions, however, these transactions result in taxable
gains or losses so it is expected that these funds will
utilize them infrequently; forward foreign currency contracts
are not permitted to be used by the Tax Exempt Bond and New
York Tax Exempt Bond funds."
The table entitled "Investments" on pages 19 and 20 is hereby amended
to show that swaps are a permitted investment for the Institutional New
York Tax Exempt Bond Fund.
Institutional Short Term Bond Fund. The second paragraph under the
heading "Portfolio Management" on page 1 is hereby replaced with the
following:
The portfolio management team is led by Connie J. Plaehn, managing
director, who has been on the team since the fund's inception and has
been at J.P. Morgan since 1984, John Donohue, vice president, who has
been on the team since joining J.P. Morgan in June of 1997 from Goldman
Sachs & Co., where he was an institutional money market portfolio
manager, and Abigail J. Feder, vice president, who joined J.P. Morgan
in April of 2000 from Morgan Stanley Dean Witter Investment Management
where she managed short term fixed income portfolios.
Institutional Bond Fund. The second paragraph under the heading "Portfolio
Management" on page 3 is hereby replaced with the following:
The portfolio management team is led by Connie Plaehn, managing director,
who has been at J.P. Morgan since 1984, Paul Zemsky, managing director, who has
been at J.P. Morgan since 1985 and Jay Gladieux, vice president, who has been at
J.P. Morgan since 1997. Mr. Zemsky has been on the team since 1988 and Ms.
Plaehn has been on the team since 1994. Mr. Gladieux joined the team in
September of 2000.
