J.P. Morgan Funds
Supplement dated September 22, 1998, to the following Statement of
Additional Information:
J.P. Morgan Emerging Markets Debt Fund, dated March 2, 1998
The fourth paragraph under the heading "Primary Investments" will be replaced
with the following:
The Fund may invest without limit in fixed income securities rated
below investment grade by one or more internationally recognized rating agencies
such as Standard & Poor's Ratings Group ("S&P") or Moody's Investors Service,
Inc. ("Moody's") or in unrated securities determined to be of comparable credit
quality by the Advisor. These below investment grade securities may include
obligations of sovereign and corporate issuers. Below investment grade
obligations, commonly called "junk bonds," are considered speculative and
include obligations that are unrated or in default.
The second paragraph under the heading "Quality and Diversification
Requirements" is being replaced with the following:
The higher total return sought by the Fund is generally obtainable from
high yield risk securities in the lower rating categories of the established
rating services. These securities are rated below Baa by Moody's or below BBB by
Standard & Poor's. The Fund may invest in securities that are speculative to a
high degree and in default. Lower rated securities are generally referred to as
junk bonds. See the Appendix attached to this Statement of Additional
Information for a description of the characteristics of the various ratings
categories. The credit ratings of Moody's and Standard & Poor's (the "Rating
Agencies"), such as those ratings described in this Statement of Additional
Information, may not be changed by the Rating Agencies in a timely fashion to
reflect subsequent economic events. The credit ratings of securities do not
evaluate market risk. The Fund may also invest in unrated securities which, in
the opinion of the Advisor, offer comparable yields and risks to the rated
securities in which the Fund may invest.
