J.P. Morgan Funds
Supplement dated May 21, 1999, to the following Prospectus:
J.P. Morgan U.S. Equity Funds, dated March 1, 1999
The following replaces the section entitled "Performance" on page 3 with respect
to J.P. Morgan Disciplined Equity Fund:
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Disciplined Equity Fund.
The bar chart indicates some of the risks by showing the performance of the
fund's shares during its first complete calendar year of operations.
The table indicates some of the risks by showing how the fund's average annual
returns for the past year and for the life of the fund compare to those of the
S&P 500 Index. This is a widely recognized, unmanaged index of U.S. stocks used
as a measure of overall U.S. stock market performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
Total return (%) Shows changes in returns by calendar year(1,3)
- --------------------------------------------------------------------------------
40% 1998
- ---
30% 31.98
- ---
20%
- ---
10%
- ---
0%
- --------------------------------------------------------------------------------
/ / J.P. Morgan Disciplined Equity Fund
For the period covered by this year-by-year total return chart, the fund's
highest quarterly return was 22.83% (for the quarter ended 12/31/98); and the
lowest quarterly return was -9.96% (for the quarter ended 9/30/98).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for periods ended December 31, 1998
- ------------------------------------------------------------------------------------------------------
Past 1 yr. Life of fund( 2)
<S> <C> <C>
J.P. Morgan Disciplined Equity Fund (after expenses) 31.98 30.27
- ------------------------------------------------------------------------------------------------------
S&P 500 Index (no expenses) 28.58 28.37
- ------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund commenced operations on 12/31/97.
(2) Life of fund performance is calculated commencing 1/31/97 as follows: all
performance data from 12/31/97 is that of the fund and for the period
1/31/97 through 12/31/97, returns reflect performance of J.P. Morgan
Institutional Disciplined Equity Fund (a separate feeder fund investing in
the same master portfolio). These returns reflect lower operating expenses
than those of the fund. Therefore, these returns may be higher than the
fund's would have been had it existed during the same period.
(3) The fund's fiscal year end is 5/31.
<PAGE>
Start on page 2
The following supplements the information under "U.S. Equity Investment Process"
on page 13.
Although the J.P. Morgan Disciplined Equity Fund commenced operations on
12/31/97, J.P. Morgan has managed accounts with substantially similar objectives
and policies as the fund since 1989. The performance of these private accounts
is shown below:
<TABLE>
<CAPTION>
Total return (%) (unaudited) Shows changes in returns by calendar year(1,2)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1990 1991 1992 1993 1994 1995 1996 1997 1998
40%
37.47 32.97
30% 30.01 31.52
20% 22.90
11.42
10% 9.97
1.90
0%
3.24
(10%)
</TABLE>
/ / Disciplined Equity Private Account Composite
For the period covered by this year-by-year total return chart, the Composite's
highest quarterly return was 22.40% (for the quarter ended 12/31/98); and the
lowest quarterly return was -14.14% (for the quarter ended 9/30/90).
<TABLE>
<CAPTION>
Average annual total return (%) (unaudited) Shows performance over time, for
periods ended December 31, 1998
- -----------------------------------------------------------------------------------------------------------------
1 yr. 5 yrs. Since 10/31/89 1
<S> <C> <C> <C> <C>
Disciplined Equity Private Account
Composite (after expenses)(2) 31.52 24.66 18.76
- -----------------------------------------------------------------------------------------------------------------
S&P 500(3) (no expenses) 28.58 24.06 18.11
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The inception of the Private Account Composite is 10/31/89.
(2) The performance of the Private Account Composite does not represent the
fund's performance and should not be interpreted as indicative of the fund's
future performance. The Composite reflects the historical performance of
discretionary investment management accounts under the management of the
fund's advisor with substantially similar objectives and policies as the
fund. Historical Composite performance information reflects the deduction of
the fund's total expenses of 0.75%, after reimbursement. The performance of
accounts in the Composite might have been lower if they were subject to the
extra restrictions imposed on mutual funds. J.P. Morgan has prepared and
presented this report in compliance with the Performance Presentation
Standards of the Association for Investment Management and Research
(AIMR-PPSTM), which went into effect on 1/1/93. Prior to that date, the
Composite may not have included all discretionary accounts. AIMR has not
been involved with the preparation or review of this report.
(3) The S&P 500 is an unmanaged index of U.S. stocks widely used as a measure of
overall stock market performance.
