J.P. Morgan Funds
Supplement dated September 18, 1998, as applicable to the following
Prospectuses:
J.P. Morgan Emerging Markets Debt Fund, dated March 2, 1998
J.P. Morgan Fixed Income Funds (Combined), dated March 13, 1998
The Trustees have approved the elimination of the funds, credit rating quality
restrictions effective October 5, 1998. Therefore the following changes to the
prospectus are being made.
The paragraph under the heading "Investment Approach" is deleted and replaced
with the following:
The fund invests primarily in debt securities from countries whose economies or
bond markets are less developed. This designation currently includes most
countries in the world except Australia, Canada, Hong Kong, Japan, New Zealand,
the U.S., the United Kingdom, and most Western European countries. Issuers of
portfolio securities may include foreign governments, corporations, and
financial institutions. These securities may be of any maturity and quality, but
under normal market conditions the fund's duration will generally range between
four and six years, similar to that of the Emerging Markets Bond Index Plus. The
Fund does not have any minimum quality rating standard and may therefore invest
without limit in securities that are rated in the lowest rating categories (or
are the unrated equivalent).
The following replaces the second paragraph of the "Potential Risks And Rewards"
section:
Because the fund may invest more than 5% of its assets in a single issuer
and its primary securities combine the risks of emerging markets and low credit
quality, its performance is likely to be more volatile than that of other fixed
income investments. 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 has the potential to produce high total return over time,
but investors should be prepared to ride out periods of negative total return.
