<PAGE> PAGE 1
000 B000000 08/31/98
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007 C010300 3
007 C010400 4
007 C010500 5
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007 C020600 J.P. MORGAN TAX EXEMPT BOND FUND
007 C030600 N
007 C010700 7
007 C020700 J.P. MORGAN TAX EXEMPT MONEY MARKET FUND
007 C030700 N
007 C010800 8
007 C010900 9
007 C011000 10
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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010 A00AA01 FUNDS DISTRIBUTOR, INC.
010 B00AA01 8-420518
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02116
010 A00AA02 MORGAN GUARANTY TRUST COMPANY OF NEW YORK
010 B00AA02 8-49999
010 C01AA02 NEW YORK
010 C02AA02 NY
010 C03AA02 10036
010 A00AA03 PIERPONT GROUP, INC.
010 C01AA03 NEW YORK
010 C02AA03 NY
010 C03AA03 10017
011 A00AA01 FUNDS DISTRIBUTOR, INC.
011 B00AA01 8-420518
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02116
012 A00AA01 STATE STREET BANK AND TRUST COMPANY
012 B00AA01 85-50003
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02101
012 A00AA02 MORGAN GUARANTY TRUST COMPANY OF NEW YORK
012 B00AA02 85-9999999
012 C01AA02 NEW YORK
012 C02AA02 NY
012 C03AA02 10036
013 A00AA01 PRICEWATERHOUSECOOPERS LLP
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10036
014 A00AA01 FUNDS DISTRIBUTOR, INC.
014 B00AA01 8-420518
014 A00AA02 J.P. MORGAN SECURITIES, INC.
014 B00AA02 8-99999
<PAGE> PAGE 4
014 A00AA03 J.P. MORGAN SECURITIES LTD.
014 B00AA03 8-99999
014 A00AA04 BOSTON INSTITUTIONAL SERVICES INC.
014 B00AA04 8-99999
015 A00AA01 STATE STREET BANK AND TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02101
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
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022 A000001 THE TAX EXEMPT MONEY MARKET PORTFOLIO
022 B000001 04-3194418
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022 A000002 THE TAX EXEMPT BOND PORTFOLIO
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<PAGE> PAGE 5
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030 C00AA00 0.00
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042 D00AA00 0
042 E00AA00 0
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<PAGE> PAGE 6
048 C01AA00 0
048 C02AA00 0.000
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048 K02AA00 0.000
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<PAGE> PAGE 7
070 E01AA00 Y
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<PAGE> PAGE 8
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055 A000600 N
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056 000600 N
057 000600 N
058 A000600 N
059 000600 Y
060 A000600 Y
060 B000600 Y
061 000600 2500
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<PAGE> PAGE 9
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074 I000600 440204
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<PAGE> PAGE 10
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074 R040600 448
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074 T000600 439225
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074 V020600 0.00
074 W000600 0.0000
074 X000600 959
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075 A000600 0
075 B000600 416756
076 000600 0.00
028 A010700 491847
028 A020700 2311
028 A030700 0
028 A040700 471140
028 B010700 406876
028 B020700 2473
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028 B040700 528192
028 C010700 356566
028 C020700 2465
028 C030700 0
028 C040700 281488
028 D010700 483668
028 D020700 2380
028 D030700 0
028 D040700 496618
028 E010700 452358
028 E020700 2369
028 E030700 0
028 E040700 400447
028 F010700 328314
028 F020700 2181
028 F030700 0
028 F040700 329544
028 G010700 2519629
028 G020700 14179
028 G030700 0
028 G040700 2507429
028 H000700 0
055 A000700 N
055 B000700 N
056 000700 N
057 000700 N
058 A000700 N
059 000700 Y
<PAGE> PAGE 11
060 A000700 Y
060 B000700 Y
061 000700 2500
071 A000700 0
071 B000700 0
071 C000700 0
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072 A000700 12
072 B000700 0
072 C000700 0
072 D000700 0
072 E000700 40736
072 F000700 0
072 G000700 421
072 H000700 0
072 I000700 1907
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072 N000700 71
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072 X000700 2540
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073 A010700 0.0318
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<PAGE> PAGE 12
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074 X000700 1534
074 Y000700 0
075 A000700 1202675
075 B000700 0
076 000700 0.00
SIGNATURE GEORGE A. RIO
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the annual report
dated August 31, 1998 for the J.P. Morgan Tax Exempt Money Market Fund and is
qualified in its entirety by reference to such annual report.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 1,241,097
<RECEIVABLES> 0
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,241,100
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,194
<TOTAL-LIABILITIES> 1,194
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,240,177
<SHARES-COMMON-STOCK> 1,239,832
<SHARES-COMMON-PRIOR> 1,103,923
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (271)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 1,239,906
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 40,736
<OTHER-INCOME> 0
<EXPENSES-NET> 2,540
<NET-INVESTMENT-INCOME> 38,196
<REALIZED-GAINS-CURRENT> 42
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 38,238
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 38,196
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,229,719
<NUMBER-OF-SHARES-REDEEMED> 5,123,034
<SHARES-REINVESTED> 29,224
<NET-CHANGE-IN-ASSETS> 135,951
<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> 2,540
<AVERAGE-NET-ASSETS> 1,202,674
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .032
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .032
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .43
<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 annual report
dated August 31, 1998 for the J.P. Morgan Tax Exempt Bond Portfolio and is
qualified in its entirety by reference to such annual report.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 440,204
<RECEIVABLES> 17
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 440,223
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 998
<TOTAL-LIABILITIES> 998
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 409,859
<SHARES-COMMON-STOCK> 36,145
<SHARES-COMMON-PRIOR> 33,828
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (117)
<ACCUMULATED-NET-GAINS> 509
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28,740
<NET-ASSETS> 439,225
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 19,622
<OTHER-INCOME> 0
<EXPENSES-NET> 1,111
<NET-INVESTMENT-INCOME> 18,511
<REALIZED-GAINS-CURRENT> 532
<APPREC-INCREASE-CURRENT> 9,584
<NET-CHANGE-FROM-OPS> 28,627
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 18,515
<DISTRIBUTIONS-OF-GAINS> 119
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 156,589
<NUMBER-OF-SHARES-REDEEMED> 143,254
<SHARES-REINVESTED> 14,890
<NET-CHANGE-IN-ASSETS> 38,218
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 287
<OVERDISTRIB-NII-PRIOR> (2)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,111
<AVERAGE-NET-ASSETS> 416,756
<PER-SHARE-NAV-BEGIN> 11.85
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> .30
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .54
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.15
<EXPENSE-RATIO> .64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
FOR J.P. MORGAN TAX EXEMPT MONEY MARKET FUND
Supplemental Proxy Information: A Joint Special Meeting of Shareholders of the
J.P. Morgan Family of Funds was held on June 25, 1998, adjourned to August 20,
1998. Each of the applicable funds voted in favor of adopting the following
proposals, therefore, the results are aggregated for the Trust unless otherwise,
specified.
1. To elect a slate of five Trustees to hold office for a term of unlimited
duration subject to the current retirement age of 70 (applicable to J.P. Morgan
Funds, J.P. Morgan Institutional Funds and J.P. Morgan Series Trust):
Votes in Votes
Favor of Against
Frederick S. Addy 2,692,335,831 18,884,648
William G. Burns 2,692,395,937 18,824,542
Arthur C. Eschenlauer 2,691,798,990 19,421,489
Matthew Healey 2,692,393,425 18,827,054
Michael P. Mallardi ,2692,488,290 18,732,189
2. To standardize the funds' and their corresponding portfolios' fundamental
investment restrictions:
2A. Diversification of investments (applicable to all funds and portfolios
except for J.P. Morgan Japan Equity, J.P. Morgan Institutional Equity, J.P.
Morgan Institutional International Bond, J.P. New York Total Return Bond, J.P.
Morgan Institutional New York Total Return Bond, J.P. Morgan Emerging Markets
Debt and J.P. Morgan California Bond Funds and their corresponding portfolios)
Votes in Votes Votes
Favor of Against Abstained
681,455,464 10,662,585 10,500,311
2B. Concentration of assets in a particular industry (applicable to all funds
and portfolios)
Votes in Votes Votes
Favor of Against Abstained
682,684,876 9,433,173 10,500,311
2C. Issuance of senior securities (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
682,685,090 9,432,959 10,500,311
2D. Borrowing (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
681,624,740 9,467,963 11,525,657
2E. Underwriting (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
686,616,760 9,501,289 10,500,311
2F. Investment in Real Estate (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
681,169,110 10,948,939 10,500,311
2G. Commodities (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
681,302,523 9,719,313 11,596,524
2H. Lending (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
681,267,519 9,754,317 11,596,524
2I. Reclassification of Other Fundamental Restrictions as Nonfundamental
(applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
680,960,613 11,050,679 10,607,068
3. Reclassification of Investment Objectives from Fundamental to
Nonfundamental (applicable to all funds and portfolios except for J.P. Morgan
Disciplined Equity, J.P. Morgan Institutional Disciplined Equity, J.P. Morgan
International Opportunities, J.P. Morgan Institutional International
Opportunities, J.P. Morgan Global Strategic Income, J.P. Morgan Institutional
Global Strategic Income, J.P. Morgan Emerging Markets Debt, J.P. Morgan U.S.
Small Company Opportunities, J.P. Morgan Tax Aware U.S. Equity, J.P. Morgan
California Bond, J.P. Morgan Institutional Treasury Money Market and J.P. Morgan
Institutional Service Treasury Money Market Funds)
Votes in Votes Votes
Favor of Against Abstained
675,572,325 17,691,431 9,354,603
4. Approval of New Investment Advisory Agreement (applicable to all funds and
portfolios)
Votes in Votes Votes
Favor of Against Abstained
678,232,942 14,913,656 9,471,762
5. Amendment of the Declaration of Trust (applicable to J.P. Morgan Funds
and J.P. Morgan Institutional Funds)
Votes in Votes Votes
Favor of Against Abstained
2,645,059,081 16,807,551 47,376,755
6. Ratification of the selection of independent accountants (applicable to
J.P. Morgan Funds, J.P. Morgan Institutional Funds and J.P. Morgan Series Trust)
Votes in Votes Votes
Favor of Against Abstained
2,682,031,391 4,303,418 24,855,671
To the Shareholders and Board of Directors of
J.P. Morgan Tax Exempt Bond Fund and
J.P. Morgan Tax Exempt Money Market Fund
October 15, 1998
Report of Independent Accountants
October 15, 1998
To the Shareholders and Trustees of
J.P. Morgan Tax Exempt Bond Fund
J.P. Morgan Tax Exempt Money Market Fund
In planning and performing our audits of the financial statements of J.P. Morgan
Tax Exempt Bond Fund and J.P. Morgan Tax Exempt Money Market Fund (the "Funds")
for the year ended August 31, 1998, we considered its internal control,
including control activities for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR, not to
provide assurance on internal control.
The management of the Funds is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
control activities. Generally, control activities that are relevant to an audit
pertain to the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those control activities include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control components does not reduce to a relatively low level
the risk that errors or fraud in amounts that would be material in relation to
the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control, including
control for safeguarding securities, that we consider to be material weaknesses
as defined above as of August 31, 1998.
This report is intended solely for the information and use of management and the
Trustees of the Funds and the Securities and Exchange Commission.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
J.P. MORGAN TAX EXEMPT BOND FUND
Supplemental Proxy Information:
A Joint Special Meeting of Shareholders of the J.P. Morgan Family of Funds was
held on June 25, 1998, adjourned to August 20, 1998. Each of the applicable
funds voted in favor of adopting the following proposals, therefore, the results
are aggregated for the Trust unless otherwise, specified.
1. To elect a slate of five Trustees to hold office for a term of unlimited
duration subject to the current retirement age of 70 (applicable to J.P. Morgan
Funds, J.P. Morgan Institutional Funds and J.P. Morgan Series Trust):
Votes in Votes
Favor of Against
Frederick S. Addy 2,692,335,831 18,884,648
William G. Burns 2,692,395,937 18,824,542
Arthur C. Eschenlauer 2,691,798,990 19,421,489
Matthew Healey 2,692,393,425 18,827,054
Michael P. Mallardi 2,692,488,290 18,732,189
2. To standardize the funds' and their corresponding portfolios' fundamental
investment restrictions:
2a. Diversification of investments (applicable to all funds and portfolios
except for J.P. Morgan Japan Equity, J.P. Morgan Institutional Equity, J.P.
Morgan Institutional International Bond, J.P. New York Total Return Bond, J.P.
Morgan Institutional New York Total Return Bond, J.P. Morgan Emerging Markets
Debt and J.P. Morgan California Bond Funds and their corresponding portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,049,870 264,758 629,517
2b Concentration of assets in a particular industry (applicable to all
funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,057,000 257,628 629,517
2c. Issuance of senior securities (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,049,627 265,001 629,517
2d. Borrowing (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,076,839 265,001 602,305
2e. Underwriting (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,057,773 284,067 602,305
2f. Investment in Real Estate (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,059,534 282,306 602,305
2g. Commodities (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,051,944 289,896 602,305
2h. Lending (applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,051,944 289,896 602,305
2i. Reclassification of Other Fundamental Restrictions as Nonfundamental
(applicable to all funds and portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,021,721 320,119 602,305
3. Reclassification of Investment Objectives from Fundamental to
Nonfundamental (applicable to all funds and portfolios except for J.P. Morgan
Disciplined Equity, J.P. Morgan Institutional Disciplined Equity, J.P. Morgan
International Opportunities, J.P. Morgan Institutional International
Opportunities, J.P. Morgan Global Strategic Income, J.P. Morgan Institutional
Global Strategic Income, J.P. Morgan Emerging Markets Debt, J.P. Morgan U.S.
Small Company Opportunities, J.P. Morgan Tax Aware U.S. Equity, J.P. Morgan
California Bond, J.P. Morgan Institutional Treasury Money Market and J.P. Morgan
Institutional Service Treasury Money Market Funds)
Votes in Votes Votes
Favor of Against Abstained
19,971,332 427,121 545,692
4. Approval of New Investment Advisory Agreement (applicable to all funds and
portfolios)
Votes in Votes Votes
Favor of Against Abstained
20,161,351 355,877 470,823
5. Amendment of the Declaration of Trust (applicable to J.P. Morgan Funds
and J.P. Morgan Institutional Funds)
Votes in Votes Votes
Favor of Against Abstained
2,645,059,081 16,807,551 47,376,755
6. Ratification of the selection of independent accountants (applicable to
J.P. Morgan Funds, J.P. Morgan Institutional Funds and J.P. Morgan Series Trust)
Votes in Votes Votes
Favor of Against Abstained
2,682,031,391 4,303,418 24,885,671
