Prospectus Supplement dated December 12, 1997, to the following Prospectuses:
The JPM Pierpont Emerging Markets Debt Fund, dated September 2, 1997
The JPM Pierpont Emerging Markets Equity Fund, dated February 28, 1997
The JPM Pierpont European Equity Fund, dated April 30, 1997
The JPM Pierpont Japan Equity Fund, dated April 30, 1997
The JPM Pierpont U.S. Equity Fund, dated September 26, 1997
The JPM Pierpont U.S. Small Company Fund, dated September 26, 1997
Introduction. The Funds listed above invest in Portfolios along with other
investors, including non-U.S. funds managed by Morgan. These non-U.S. funds are
scheduled to reorganize by transferring their assets to other non-U.S. funds
managed by Morgan in December and January.
Portfolio Redemptions. Each Portfolio expects to receive a substantial
redemption request from its non-U.S. feeder Fund in connection with the
reorganization. These redemptions will not reduce the net assets of the Funds,
but they will reduce the size of the Portfolios by approximately the following
amounts: Emerging Markets Debt, $110.6 million; Emerging Markets Equity, $452.1
million; European Equity, $469.2 million; Japan Equity, $264.8 million; U.S.
Equity, $164.9 million; and U.S. Small Company, $521.5 million. After the
redemptions, the Portfolios' assets are expected to be approximately as follows:
Emerging Markets Debt, $7.0 million; Emerging Markets Equity, $355.6 million;
European Equity, $14.9 million; Japan Equity, $4.0 million; U.S. Equity, $745.8
million; and U.S. Small Company, $707.6 million. Morgan will continue to manage
each Fund in accordance with its prospectus.
Expense Ratios. As a result of the redemptions, the total expense ratios of two
JPM Pierpont Funds will be capped until further notice at their pre-redemption
expense ratios, currently estimated to be: The JPM Pierpont Emerging Markets
Equity Fund, 1.75% and The JPM Pierpont U.S. Small Company Fund, 1.01%. The
expense ratios of The JPM Pierpont Emerging Markets Debt, European Equity and
Japan Equity Funds will not change as they are subject to the expense caps
described in their prospectuses. The expense ratio of The JPM Pierpont U.S.
Equity Fund is not expected to be impacted by the redemption and will remain as
currently described in the prospectus.
