<PAGE>
--------------------------------------------------------------------------------
MARCH 1, 2000 |
AS REVISED | PROSPECTUS
SEPTEMBER 1, 2000 |
--------------------------------------------------------------------------------
J.P. MORGAN FIXED INCOME FUNDS
Short Term Bond Fund
Bond Fund
Global Strategic Income Fund
Emerging Markets Debt Fund
Tax Exempt Bond Fund
New York Tax Exempt Bond Fund
------------------------------------
Seeking high total return or current
income by investing primarily in
fixed income securities.
This prospectus contains essential information for anyone investing in these
funds. Please read it carefully and keep it for reference.
As with all mutual funds, the fact that these shares are registered with the
Securities and Exchange Commission does not mean that the commission approves
them or guarantees that the information in this prospectus is correct or
adequate. It is a criminal offense to state or suggest otherwise.
Distributed by Funds Distributor, Inc. JPMorgan
<PAGE>
CONTENTS
--------------------------------------------------------------------------------
1 | Each fund's goal, principal strategies, principal risks, performance and
expenses
J.P. MORGAN FIXED INCOME FUNDS
J.P. Morgan Short Term Bond Fund .......................................... 1
J.P. Morgan Bond Fund ..................................................... 3
J.P. Morgan Global Strategic Income Fund .................................. 5
J.P. Morgan Emerging Markets Debt Fund .................................... 7
J.P. Morgan Tax Exempt Bond Fund .......................................... 9
J.P. Morgan New York Tax Exempt Bond Fund ................................. 11
13 | Principles and techniques common to the funds in this prospectus
FIXED INCOME MANAGEMENT APPROACH
J.P. Morgan ............................................................... 13
J.P. Morgan fixed income funds ............................................ 13
The spectrum of fixed income funds ........................................ 13
Who may want to invest .................................................... 13
Fixed income investment process ........................................... 14
15 | Investing in the J.P. Morgan Fixed Income Funds
YOUR INVESTMENT
Investing through a financial professional ................................ 15
Investing through an employer-sponsored retirement plan ................... 15
Investing through an IRA or rollover IRA .................................. 15
Investing directly ........................................................ 15
Opening your account ...................................................... 15
Adding to your account .................................................... 15
Selling shares ............................................................ 16
Account and transaction policies .......................................... 16
Dividends and distributions ............................................... 17
Tax considerations ........................................................ 17
18 | More about risk and the funds' business operations
FUND DETAILS
Business structure ........................................................ 18
Management and administration ............................................. 18
Risk and reward elements .................................................. 19
Investments ............................................................... 21
Financial highlights ...................................................... 23
FOR MORE INFORMATION .............................................. back cover
<PAGE>
J.P. MORGAN SHORT TERM BOND FUND
[GRAPHIC OMITTED]
RISK/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide high total return, consistent with low volatility
of principal. This goal can be changed without shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests primarily in fixed income securities, including U.S. government
and agency securities, domestic and foreign corporate bonds, private placements,
asset-backed and mortgage-related securities, and money market instruments, that
it believes have the potential to provide a high total return over time. These
securities may be of any maturity, but under normal market conditions the fund's
duration will range between one and three years, similar to that of the Merrill
Lynch 1-3 Year Treasury Index. For a description of duration, please see fixed
income investment process on page 14.
Up to 25% of assets may be invested in foreign securities, including 20% in debt
securities denominated in foreign currencies of developed countries. The fund
typically hedges its non-dollar investments back to the U.S. dollar. At least
90% of assets must be invested in securities that, at the time of purchase, are
rated investment-grade (BBB/Baa or better) or are the unrated equivalent,
including at least 75% A or better. No more than 10% of assets may be invested
in securities rated B or BB.
Principal Risks
The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
duration fixed income funds will depend on the success of the investment
process, which is described on page 14.
Although any rise in interest rates is likely to cause a fall in the price of
bonds, the fund's comparatively short duration is designed to help keep its
share price within a relatively narrow range. Because it seeks to minimize risk,
the fund will generally offer less income, and during periods of declining
interest rates, may offer lower total returns than bond funds with longer
durations. Because of the sensitivity of the fund's mortgage related securities
to changes in interest rates, the performance and duration of the fund may be
more volatile than if it did not hold these securities. The fund uses futures
contracts and other derivatives to help manage duration, yield curve exposure,
and credit and spread volatility. To the extent that the fund seeks higher
returns by investing in non-investment-grade bonds, often called junk bonds, it
takes on additional risks, since these bonds are more sensitive to economic news
and their issuers have a less secure financial position. To the extent the fund
invests in foreign securities, it could lose money because of foreign government
actions, political instability, currency fluctuation or lack of adequate and
accurate information. The fund may engage in active and frequent trading,
leading to increased portfolio turnover and the possibility of increased capital
gains. See page 17 for further discussion on the tax treatment of capital gains.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: JPSBX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN SHORT TERM BOND FUND)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $55 billion using similar
strategies as the fund.
The portfolio management team is led by Connie J. Plaehn, managing director, who
has been on the team since the fund's inception and has been at J.P. Morgan
since 1984, and William G. Tennille, vice president, who joined the team in
January of 1994 and has been at J.P. Morgan since 1992.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
1 | J.P. MORGAN SHORT TERM BOND FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Short Term Bond Fund.
The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last 6 calendar years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past one year, five years and life of the fund compare to those
of the Merrill Lynch 1-3 Year Treasury Index. This is a widely recognized,
unmanaged index of U.S. Treasury notes and bonds with maturities of 1-3 years
used as a measure of overall short-term bond market performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
Year-by-year total return (%) Shows changes in returns by calendar year(1,2)
--------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999
20%
10.58
10%
6.14 6.84
4.94
2.81
0% 0.11
--------------------------------------------------------------------------------
[ ] J.P. Morgan Short Term Bond Fund
The fund's year-to-date total return as of 6/30/00 was 2.27%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 3.41% (for the quarter ended 6/30/95); and the lowest quarterly
return was -0.54% (for the quarter ended 3/31/94).
<TABLE>
<CAPTION>
Average annual total return Shows performance over time, for periods ended
December 31, 1999(1)
------------------------------------------------------------------------------------------------------------------------------------
Past 1 yr. Past 5 yrs.
Life of fund(1)
<S> <C>
<C> <C>
J.P. Morgan Short Term Bond Fund (after expenses) 2.81
6.23 5.06
------------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch 1-3 Year Treasury Index (no expenses) 3.06
6.51 5.42
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund before and after reimbursement are shown at right. The
fund has no sales, redemption, exchange, or account fees, although some
institutions may charge you a fee for shares you buy through them. The annual
fund expenses after reimbursement are deducted from fund assets prior to
performance calculations.
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.25
Marketing (12b-1) fees none
Other expenses 0.55
--------------------------------------------------------------------------------
Total operating expenses 0.80
Fee waiver and expense
reimbursement(4) 0.20
--------------------------------------------------------------------------------
Net expenses(4) 0.60
--------------------------------------------------------------------------------
Expense example(4)
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
3/1/00 through 2/28/01 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 61 235 425 971
--------------------------------------------------------------------------------
(1) The fund commenced operations on 7/8/93 and returns reflect performance of
the fund from 7/31/93.
(2) The fund's fiscal year end is 10/31.
(3) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year expressed as a percentage of the fund's average net assets.
(4) Reflects an agreement dated 7/30/99 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
operating expenses (which exclude interest, taxes, and extraordinary
expenses) exceed 0.60% of the fund's average daily net assets through
2/28/01. Actual net expenses for the fiscal year ended 10/31/99 were 0.57%
of the fund's average daily net assets.
J.P. MORGAN SHORT TERM BOND FUND | 2
<PAGE>
J.P. MORGAN BOND FUND
[GRAPHIC OMITTED]
RISK/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide high total return consistent with moderate risk of
capital and maintenance of liquidity. This goal can be changed without
shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests primarily in fixed income securities, including U.S. government
and agency securities, corporate bonds, private placements, asset-backed and
mortgage-backed securities, that it believes have the potential to provide a
high total return over time. These securities may be of any maturity, but under
normal market conditions the management team will keep the fund's duration
within one year of that of the Salomon Smith Barney Broad Investment Grade Bond
Index (currently about five years). For a description of duration, please see
fixed income investment process on page 14.
Up to 25% of assets may be invested in foreign securities, including 20% in debt
securities denominated in foreign currencies of developed countries. The fund
typically hedges its non-dollar investments back to the U.S. dollar. At least
75% of assets must be invested in securities that, at the time of purchase, are
rated investment-grade (BBB/Baa or better) or are the unrated equivalent,
including at least 65% A or better. No more than 25% of assets may be invested
in securities rated B or BB.
Principal Risks
The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
fixed income funds will depend on the success of the investment process, which
is described on page 14.
To the extent that the fund seeks higher returns by investing in
non-investment-grade bonds, often called junk bonds, it takes on additional
risks, since these bonds are more sensitive to economic news and their issuers
have a less secure financial position. The fund may use futures contracts and
other derivatives to help manage duration, yield curve exposure, and credit and
spread volatility. To the extent the fund invests in foreign securities, it
could lose money because of foreign government actions, political instability,
currency fluctuation or lack of adequate and accurate information. The fund's
mortgage-backed investments involve risk of losses due to prepayments that occur
earlier or later than expected, like any bond, due to default. The fund may
engage in active and frequent trading, leading to increased portfolio turnover
and the possibility of increased capital gains. See page 17 for further
discussion on the tax treatment of capital gains.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: PPBDX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN BOND FUND)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $31 billion using similar
strategies as the fund.
The portfolio management team is led by William G. Tennille, vice president, who
has been at J.P. Morgan since 1992, Connie J. Plaehn, managing director, who has
been at J.P. Morgan since 1984, and John Snyder, vice president, who has been at
J.P. Morgan since 1993. Mr. Tennille and Ms. Plaehn have been on the team since
January of 1994. Mr. Snyder has been a fixed income portfolio manager since
joining J.P. Morgan.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
3 | J.P. MORGAN BOND FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Bond Fund.
The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last 10 calendar years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past one, five and ten years and compare to those of the Salomon
Smith Barney Broad Investment Grade Bond Index. This is a widely recognized,
unmanaged index of U.S. Treasury and agency securities and investment-grade
mortgage and corporate bonds used as a measure of overall bond market
performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
<TABLE>
<CAPTION>
Year-by-year total return (%) Shows changes in returns by
calendar year(1)
------------------------------------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997
1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
20%
18.17
13.45
10% 10.09
9.87 9.13
7.36
3.13
0%
6.53
------------------------------------------------------------------------------------------------------------------------------------
(2.97) (0.73)
(10%)
</TABLE>
[ ] J.P. Morgan Bond Fund
The fund's year-to-date total return as of 6/30/00 was 2.83%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 6.25% (for the quarter ended 6/30/95); and the lowest quarterly
return was -2.39% (for the quarter ended 3/31/94).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for periods ended
December 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
Past 1 yr. Past 5
yrs. Past 10 yrs.
<S> <C>
<C> <C>
J.P. Morgan Bond Fund (after expenses) (0.73)
7.23 7.23
------------------------------------------------------------------------------------------------------------------------------------
Salomon Smith Barney Broad Investment Grade Bond Index (no expenses) (0.83)
7.74 7.65
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund are shown at right. The fund has no sales, redemption,
exchange, or account fees, although some institutions may charge you a fee for
shares you buy through them. The annual fund expenses are deducted from fund
assets prior to performance calculations.
Annual fund operating expenses(2)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.30
Marketing (12b-1) fees none
Other expenses 0.39
--------------------------------------------------------------------------------
Total annual fund
operating expenses 0.69
--------------------------------------------------------------------------------
Expense example
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, total operating expenses
unchanged, and all shares sold at the end of each time period. The example is
for comparison only; the fund's actual return and your actual costs may be
higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 70 221 384 859
--------------------------------------------------------------------------------
(1) The fund's fiscal year end is 10/31.
(2) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year expressed as a percentage of average net assets.
J.P. MORGAN BOND FUND | 4
<PAGE>
J.P. MORGAN GLOBAL STRATEGIC INCOME FUND
[GRAPHIC OMITTED]
RISK/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide high total return from a portfolio of fixed income
securities of foreign and domestic issuers. This goal can be changed without
shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests in a wide range of debt securities from the U.S. and other
markets, both developed and emerging. Issuers may include governments,
corporations, financial institutions, and supranational organizations (such as
the World Bank) that the fund believes have the potential to provide a high
total return over time. The fund may invest directly in mortgages and in
mortgage-backed securities. The fund's securities may be of any maturity, but
under normal market conditions its duration will generally be similar to that of
the Lehman Brothers Aggregate Bond Index (currently about four and a half
years). For a description of duration, please see fixed income investment
process on page 14. At least 40% of assets must be invested in securities that,
at the time of purchase, are rated investment-grade (BBB/Baa or better) or are
the unrated equivalent. The balance of assets must be invested in securities
rated B or higher at the time of purchase (or the unrated equivalent), except
that the fund's emerging market component has no minimum quality rating and may
invest without limit in securities that are in the lowest rating categories (or
are the unrated equivalent).
The management team uses the process described on page 14, and also makes
country allocations, based primarily on macro-economic factors. The team uses
the model allocation shown at right as a basis for its sector allocation,
although the actual allocations are adjusted periodically within the indicated
ranges. Within each sector, a dedicated team handles securities selection. The
fund typically hedges its non-dollar investments in developed countries back to
the U.S. dollar.
Principal Risks
The fund's share price and total return will vary in response to changes in
global bond markets, interest rates, and currency exchange rates. How well the
fund's performance compares to that of similar fixed income funds will depend on
the success of the investment process. Because of credit and foreign and
emerging markets investment risks, the fund's performance is likely to be more
volatile than that of most fixed income funds. Foreign and emerging market
investment risks include foreign government actions, political instability,
currency fluctuations and lack of adequate and accurate information. To the
extent that the fund seeks higher returns by investing in non-investment-grade
bonds, often called junk bonds, it takes on additional risks, since these bonds
are more sensitive to economic news and their issuers have a less secure
financial position. The fund's mortgage-backed investments involve the risk of
losses due to default or to prepayments that occur earlier or later than
expected. Some investments, including directly owned mortgages, may be illiquid.
The fund has the potential for long-term total returns that exceed those of more
traditional bond funds, but investors should also be prepared for risks that
exceed those of more traditional bond funds. The fund may engage in frequent
trading, leading to increased portfolio turnover and the possibility of
increased capital gains. See page 17 for further discussion on the tax treatment
of capital gains.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: JPGSX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN GLOBAL STRATEGIC INCOME FUND)
MODEL SECTOR ALLOCATION
9% international
non-dollar
(range 0-25%)
13% public/private
corporates
(range 5-25%)
16% emerging
markets
(range 0-25%)
27% high yield
corporates
(range 17-37%)
35% public/private
mortgages
(range 20-45%)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $3 billion using similar
strategies as the fund.
The portfolio management team is led by Mark E. Smith, managing director,
who joined J.P. Morgan in 1994 and Robert J. Morena, vice president, who joined
J.P. Morgan in 2000. Prior to joining J.P. Morgan, Mr. Smith managed fixed
income portfolios and oversaw asset allocation activities at Allied Signal, Inc.
He has been on the team since the fund's inception. Prior to joining J.P.
Morgan, Mr. Morena served as a managing director at Forest Investment Management
where he managed fixed income portfolios. Prior to that, he served as the
Department Head of The Bank of New York's Institutional Fixed Income Division.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
5 | J.P. MORGAN GLOBAL STRATEGIC INCOME FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Global Strategic Income Fund.
The bar chart indicates some of the risks by showing the performance of the
fund's(1) shares from year to year for each of the last 2 calendar years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past one year and life of the fund compare to those of the
Lehman Brothers Aggregate Bond Index. This is a widely recognized, unmanaged
index used as a measure of overall bond 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(1,2)
--------------------------------------------------------------------------------
1998 1999
20%
10%
2.31
2.08
0%
--------------------------------------------------------------------------------
[ ] J.P. Morgan Global Strategic Income Fund(1)
The fund's year-to-date total return as of 6/30/00 was 2.10%. For the period
covered by this total return chart, the fund's highest quarterly return was
3.04% (for the quarter ended 3/31/98); and the lowest quarterly return was
-1.58% (for the quarter ended 9/30/98).
<TABLE>
<CAPTION>
Average annual total return Shows performance over time, for periods ended
December 31, 1999(1)
------------------------------------------------------------------------------------------------------------------------------------
Past 1
yr. Life of fund
<S>
<C> <C>
J.P. Morgan Global Strategic Income Fund (after expenses)
2.08 5.03
------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index (no expenses)
(0.83) 6.49
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund before and after reimbursement are shown at right. The
fund has no sales, redemption, exchange, or account fees, although some
institutions may charge you a fee for shares you buy through them. The annual
fund expenses after reimbursement are deducted from fund assets prior to
performance calculations.
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.45
Marketing (12b-1) fees none
Other expenses 1.09
--------------------------------------------------------------------------------
Total operating expenses 1.54
Fee waiver and expense
reimbursement(4) 0.54
--------------------------------------------------------------------------------
Net expenses(4) 1.00
--------------------------------------------------------------------------------
Expense example(4)
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
3/1/00 through 2/28/01 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 102 433 788 1,789
--------------------------------------------------------------------------------
(1) The fund commenced operations on 11/5/97. For the period 3/31/97 through
11/30/97, returns reflect performance of the J.P. Morgan Institutional
Global Strategic Income 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.
(2) The fund's fiscal year end is 10/31.
(3) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year expressed as a percentage of average net assets.
(4) Reflects an agreement dated 7/30/99 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
operating expenses (which exclude interest, taxes, and extraordinary
expenses) exceed 1.00% of the fund's average daily net assets through
2/28/01.
J.P. MORGAN GLOBAL STRATEGIC INCOME FUND | 6
<PAGE>
J.P. MORGAN EMERGING MARKETS DEBT FUND
[GRAPHIC OMITTED]
RISKS/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide high total return from a portfolio of fixed income
securities of emerging markets issuers. This goal can be changed without
shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests primarily in debt securities that it believes have the
potential to provide a high total return 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 three
and five years, similar to that of the Emerging Markets Bond Index Plus. For a
description of duration, please see fixed income investment process on page 14.
The fund does not have any minimum quality rating and may invest without limit
in securities that are rated in the lowest rating categories (or are the unrated
equivalent).
In addition to the investment process described on page 14, the management team
makes country allocation decisions, based primarily on financial and economic
forecasts and other macro-economic factors.
Principal Risks
The fund's share price and total return will vary in response to changes in
emerging bond markets, interest rates, and currency exchange rates. How well the
fund's performance compares to that of similar fixed income funds will depend on
the success of the investment process.
Because the fund is non-diversified and 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. These risks and fund volatility are likely to
be compounded when the fund concentrates its investments in a small number of
countries. Emerging market investment risks include foreign government actions,
political instability, currency fluctuations and lack of adequate and accurate
information. The fund may engage in active and frequent trading, leading to
increased portfolio turnover and the possibility of increased capital gains. See
page 17 for further discussion on the tax treatment of capital gains. Since the
fund seeks higher returns by investing in non-investment-grade bonds, often
called junk bonds, it takes on additional risks, since these bonds are more
sensitive to economic news and their issuers have a less secure financial
position. Investors should be prepared to ride out periods of negative return.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: JEMDX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN EMERGING MARKETS DEBT FUND)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $2,420 million using similar
strategies as the fund.
The portfolio management team is led by Michael Cembalest, managing director,
who has been at J.P. Morgan from 1988 to January 1998 and since June 1998, and
Paul Dickson, vice president, who has been at J.P. Morgan since November 1999.
Prior to joining the portfolio management team, Mr. Cembalest was responsible
for sovereign debt analysis in the emerging markets group. From January 1998 to
June 1998, Mr. Cembalest was a portfolio manager at Morgan Stanley. Previously,
Mr. Dickson was the senior emerging markets debt strategist at Lehman Brothers.
From 1993 to 1997, Mr. Dickson served as a strategist with Chase Manhattan Bank.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
7 | J.P. MORGAN EMERGING MARKETS DEBT FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Emerging Markets Debt Fund.
The bar chart indicates some of the risks by showing the performance of the
fund's shares from year to year for each of the last 2 calendar years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past year and life of fund compare to those of the Emerging
Markets Bond Index Global. This is a broad-based unmanaged index which tracks
total return for U.S. dollar denominated emerging markets debt, including Brady
bonds, Eurobonds and loans. Previously, the fund's benchmark was the Emerging
Markets Bond Index Plus.
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(1,2)
--------------------------------------------------------------------------------
1998 1999
40%
25.97
20%
0%
--------------------------------------------------------------------------------
(15.93)
(20%)
[ ] J.P. Morgan Emerging Market Debt Fund
The fund's year-to-date total return as of 6/30/00 was 10.24%. For the period
covered by this total return chart, the fund's highest quarterly return was
14.16% (for the quarter ended 12/31/99) and the lowest quarterly return was
-21.73% (for the quarter ended 9/30/98).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for period ended
December 31, 1999(1)
------------------------------------------------------------------------------------------------------------------------------------
Past 1
yr. Life of fund
<S>
<C> <C>
J.P. Morgan Emerging Market Debt Fund (after expenses)
25.97 3.46
------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Bond Index Global (no expenses)
24.19 6.41
------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Bond Index Plus (no expenses)
25.98 6.24
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund before and after reimbursement are shown at right. The
fund has no sales, redemption, exchange, or account fees, although some
institutions may charge you a fee for shares you buy through them. The annual
fund expenses after reimbursement are deducted from fund assets prior to
performance calculations.
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.70
Marketing (12b-1) fees none
Other expenses 1.81
--------------------------------------------------------------------------------
Total operating expenses 2.51
Fee waiver and expense
reimbursement(4) 1.26
--------------------------------------------------------------------------------
Net expenses(4) 1.25
--------------------------------------------------------------------------------
Expense example(4)
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
8/1/99 through 11/28/00 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 127 661 1,222 2,751
--------------------------------------------------------------------------------
(1) The fund commenced operations on 4/17/97 and returns reflect performance of
the fund from 4/30/97.
(2) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 12/31.
(3) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year expressed as a percentage of average net assets.
(4) Reflects an agreement dated 7/30/99 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
operating expenses (which exclude interest, taxes, and extraordinary
expenses) exceed 1.25% of the fund's average daily net assets through
11/28/00.
J.P. MORGAN EMERGING MARKETS DEBT FUND | 8
<PAGE>
J.P. MORGAN TAX EXEMPT BOND FUND
[GRAPHIC OMITTED]
RISK/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide a high level of current income that is exempt from
federal income tax consistent with moderate risk of capital. This goal can be
changed without shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests primarily in high quality municipal securities that it believes
have the potential to provide high current income that is free from federal
personal income tax. While the fund's goal is high tax-exempt income, the fund
may invest to a limited extent in taxable securities, including U.S. government,
government agency, corporate, or taxable municipal securities. The fund's
securities may be of any maturity, but under normal market conditions the fund's
duration will generally range between four and seven years, similar to that of
the Lehman Brothers 1-16 Year Municipal Bond Index (currently 5.4 years). For a
description of duration, please see fixed income investment process on page 14.
At least 90% of assets must be invested in securities that, at the time of
purchase, are rated investment-grade (BBB/Baa or better) or are the unrated
equivalent. No more than 10% of assets may be invested in securities rated B or
BB.
Principal Risks
The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
tax-exempt funds will depend on the success of the investment process, which is
described on page 14.
Investors should be prepared for higher share price volatility than from a tax
exempt fund of shorter duration. The fund's performance could also be affected
by market reaction to proposed tax legislation. To the extent that the fund
seeks higher returns by investing in non-investment-grade bonds, often called
junk bonds, it takes on additional risks, since these bonds are more sensitive
to economic news and their issuers have a less secure financial position.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: PPTBX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN TAX EXEMPT BOND FUND)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $10 billion using similar
strategies as the fund.
The portfolio management team is led by Robert W. Meiselas, vice president, who
joined the team in June of 1997 and has been at J.P. Morgan since 1987, Benjamin
Thompson, vice president, who joined the team in June of 1999, and Kingsley
Wood, Jr., vice president, who has been on the team since January 2000. Prior to
joining J.P. Morgan, Mr. Thompson was a senior fixed income portfolio manager at
Goldman Sachs, and Mr.Wood was a senior fixed income portfolio manager at
Mercantile Bank & Trust. Prior to joining Mercantile in July of 1998, Mr. Wood
was an institutional tax-exempt trader at ABN-AMRO and Kemper Securities.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
9 | J.P. MORGAN TAX EXEMPT BOND FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Tax Exempt Bond Fund.
The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the fund's last 10 calendar
years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past one, five and ten years compare to those of the Lehman
Brothers 1-16 Year Municipal Bond Index, the fund's current benchmark. Since
this index has not been in existence during all of the past ten years, the table
also shows the performance of the Lehman Quality Intermediate Municipal Bond
Index, the fund's previous benchmark. Both are unmanaged indices that measure
municipal bond market performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
<TABLE>
<CAPTION>
Year-by-year total return (%) Shows changes in returns by
calendar year(1)
------------------------------------------------------------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995 1996 1997
1998 1999
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
20%
10.92 13.40
10% 9.58
7.47
7.42
6.87 5.47
3.54
0%
------------------------------------------------------------------------------------------------------------------------------------
(2.70) (0.88)
(10%)
</TABLE>
[ ] J.P. Morgan Tax Exempt Bond Fund
The fund's year-to-date total return as of 6/30/00 was 2.68%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 5.09% (for the quarter ended 3/31/95); and the lowest quarterly
return was -3.08% (for the quarter ended 3/31/94).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for periods ended
December 31, 1999
------------------------------------------------------------------------------------------------------------------------------------
Past 1 yr. Past 5
yrs. Past 10 yrs.
<S> <C>
<C> <C>
J.P. Morgan Tax Exempt Bond Fund (after expenses) (0.88)
5.69 6.00
------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 1-16 Year Municipal Bond Index (no expenses) (0.06)
6.32 N/A
------------------------------------------------------------------------------------------------------------------------------------
Lehman Quality Intermediate Municipal Bond Index (no expenses) 0.30
6.25 6.60
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund are shown at right. The fund has no sales, redemption,
exchange, or account fees, although some institutions may charge you a fee for
shares you buy through them. The annual fund expenses are deducted from fund
assets prior to performance calculations.
Annual fund operating expenses(2)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.30
Marketing (12b-1) fees none
Other expenses 0.38
--------------------------------------------------------------------------------
Total annual fund
operating expenses 0.68
--------------------------------------------------------------------------------
Expense example
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, total operating expenses
unchanged, and all shares sold at the end of each time period. The example is
for comparison only; the fund's actual return and your actual costs may be
higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 69 218 379 847
--------------------------------------------------------------------------------
(1) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 8/31.
(2) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year expressed as a percentage of average net assets.
J.P. MORGAN TAX EXEMPT BOND FUND | 10
<PAGE>
J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND
[GRAPHIC OMITTED]
RISK/RETURN SUMMARY
For a more detailed discussion of the fund's investments and their main risks,
as well as fund strategies, please see pages 19-22.
[GRAPHIC OMITTED]
GOAL
The fund's goal is to provide a high level of tax exempt income for New York
residents consistent with moderate risk of capital. This goal can be changed
without shareholder approval.
[GRAPHIC OMITTED]
INVESTMENT APPROACH
Principal Strategies
The fund invests primarily in New York municipal securities that it believes
have the potential to provide high current income which is free from federal,
state, and New York City personal income taxes for New York residents. The fund
may also invest to a limited extent in securities of other states or
territories. To the extent that the fund invests in municipal securities of
other states, the income from such securities would be free from federal
personal income taxes for New York residents but would be subject to New York
state and New York City personal income taxes. For non-New York residents, the
income from New York municipal securities is free from federal personal income
taxes only. The fund may also invest in taxable securities. The fund's
securities may be of any maturity, but under normal market conditions the fund's
duration will generally range between three and seven years, similar to that of
the Lehman Brothers 1-16 Year Municipal Bond Index (currently 5.4 years). For a
description of duration, please see fixed income investment process on page 14.
At least 90% of assets must be invested in securities that, at the time of
purchase, are rated investment-grade (BBB/Baa or better) or are the unrated
equivalent. No more than 10% of assets may be invested in securities rated B or
BB.
Principal Risks
The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
fixed income funds will depend on the success of the investment process, which
is described on page 14. Because most of the fund's investments will typically
be from issuers in the State of New York, its performance will be affected by
the fiscal and economic health of that state and its municipalities. The fund is
non-diversified and may invest more than 5% of assets in a single issuer, which
could further concentrate its risks. To the extent that the fund seeks higher
returns by investing in non-investment-grade bonds, often called junk bonds, it
takes on additional risks, since these bonds are more sensitive to economic news
and their issuers have a less secure financial condition.
An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.
<PAGE>
TICKER SYMBOL: PPNYX
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND)
PORTFOLIO MANAGEMENT
The fund's assets are managed by J.P. Morgan, which currently manages
approximately $369 billion, including more than $1.4 billion using similar
strategies as the fund.
The portfolio management team is led by Robert W. Meiselas, vice president, who
joined the team in June of 1997 and has been at J.P. Morgan since 1987, Benjamin
Thompson, vice president, who joined the team in June of 1999, and Kingsley
Wood, Jr., vice president, who has been on the team since January 2000. Prior to
joining J.P. Morgan, Mr. Thompson was a senior fixed income portfolio manager at
Goldman Sachs, and Mr.Wood was a senior fixed income portfolio manager at
Mercantile Bank & Trust. Prior to joining Mercantile in July of 1998, Mr. Wood
was an institutional tax-exempt trader at ABN-AMRO and Kemper Securities.
--------------------------------------------------------------------------------
Before you invest
Investors considering the fund should understand that:
o The fund seeks to achieve its goal by investing in a master portfolio, which
is another fund with the same goal.
o There is no assurance that the fund will meet its investment goal.
o The fund does not represent a complete investment program.
11 | J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND
<PAGE>
--------------------------------------------------------------------------------
PERFORMANCE (unaudited)
The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan New York Tax Exempt Bond Fund.
The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last 5 calendar years.
The table indicates some of the risks by showing how the fund's average annual
returns for the past year and the life of the fund compare to those of the
Lehman Brothers 1-16 Year Municipal Bond Index. This is a widely recognized,
unmanaged index of general obligation and revenue bonds with maturities of 1-16
years used as a measure of overall tax-exempt bond market performance.
The fund's past performance does not necessarily indicate how the fund will
perform in the future.
Year-by-year total return (%) Shows changes in returns by calendar year(1,2)
--------------------------------------------------------------------------------
1995 1996 1997 1998 1999
20%
13.03
7.41
10%
5.39
3.96
0%
--------------------------------------------------------------------------------
(0.84)
(10%)
[ ] J.P. Morgan New York Tax Exempt Bond Fund
The fund's year-to-date total return as of 6/30/00 was 2.91%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 4.80% (for the quarter ended 3/31/95) and the lowest quarterly return
was -1.83% (for the quarter ended 6/30/99).
<TABLE>
<CAPTION>
Average annual total return (%) Shows performance over time, for periods ended
December 31, 1999(1)
------------------------------------------------------------------------------------------------------------------------------------
Past 1
yr. Life of fund
<S>
<C> <C>
J.P. Morgan New York Tax Exempt Bond Fund (after expenses)
(0.84) 5.06
------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 1-16 Year Municipal Bond Index (no expenses)
(0.06) 5.95
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
INVESTOR EXPENSES
The expenses of the fund before and after reimbursement are shown at right. The
fund has no sales, redemption, exchange, or account fees, although some
institutions may charge you a fee for shares you buy through them. The annual
fund expenses after reimbursement are deducted from fund assets prior to
performance calculations.
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
--------------------------------------------------------------------------------
Management fees 0.30
Marketing (12b-1) fees none
Other expenses 0.48
--------------------------------------------------------------------------------
Total operating expenses 0.78
Fee waiver and expense
reimbursement(4) 0.08
--------------------------------------------------------------------------------
Net expenses(4) 0.70
--------------------------------------------------------------------------------
Expense example(4)
--------------------------------------------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
8/1/99 through 11/28/00 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.
--------------------------------------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.
Your cost($) 72 241 425 959
--------------------------------------------------------------------------------
(1) The fund commenced operations on 4/11/94 and returns reflect performance of
the fund from 4/30/94.
(2) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 3/31.
(3) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for the
past fiscal year, expressed as a percentage of average net assets.
(4) Reflects an agreement dated 7/30/99 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
operating expenses (which exclude interest, taxes, and extraordinary
expenses extraordinary expenses) exceed 0.70% of the fund's average daily
net assets through 11/28/00.
J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND | 12
<PAGE>
FIXED INCOME MANAGEMENT APPROACH
--------------------------------------------------------------------------------
J.P. MORGAN
Known for its commitment to proprietary research and its disciplined investment
strategies, J.P. Morgan is the asset management choice for many of the world's
most respected corporations, financial institutions, governments, and
individuals. Today, J.P. Morgan employs approximately 420 analysts and portfolio
managers around the world and has approximately $369 billion in assets under
management, including assets managed by the funds' advisor, J.P. Morgan
Investment Management Inc.
J.P. MORGAN FIXED INCOME FUNDS
These funds invest primarily in bonds and other fixed income securities, either
directly or through a master portfolio (another fund with the same goal). The
funds seek high total return or high current income.
While each fund follows its own strategy, the funds as a group share a single
investment philosophy. This philosophy, developed by the funds' advisor,
emphasizes the potential for consistently enhancing performance while managing
risk.
THE SPECTRUM OF FIXED INCOME FUNDS
The funds described in this prospectus pursue different goals and offer varying
degrees of risk and potential reward. The table below shows degrees of the
relative risk and return that these funds potentially offer. These and other
distinguishing features of each fixed income fund were described on the
preceding pages. Differences among these funds include:
o the types of securities they hold
o the tax status of the income they offer
o the relative emphasis on current income versus total return
Potential risk and return
Return (after taxes)
Emerging Markets Debt Fund o
Global Strategic Income Fund o
o New York Tax Exempt Bond Fund*
o Tax Exempt Bond Fund*
o Bond Fund
o Short Term Bond Fund
Risk
The positions of the funds in this graph reflect long-term performance goals
only, and are relative, not absolute.
* Based on tax-equivalent returns for an investor in the highest income tax
bracket.
<PAGE>
--------------------------------------------------------------------------------
Who May Want to Invest
The funds are designed for investors who:
o want to add an income investment to further diversify a portfolio
o want an investment whose risk/return potential is higher than that of money
market funds but generally less than that of stock funds
o want an investment that pays monthly dividends
o with regard to the Tax Exempt Bond Fund, are seeking income that is exempt
from federal personal income tax
o with regard to the New York Tax Exempt Bond Fund, are seeking income that is
exempt from federal, state, and local (if applicable) personal income taxes in
New York
The funds are not designed for investors who:
o are investing for aggressive long-term growth
o require stability of principal
o with regard to the Global Strategic Income or Emerging Markets Debt funds, are
not prepared to accept a higher degree of risk than most traditional bond
funds
o with regard to the federal or state tax-exempt funds, are investing through a
tax-deferred account such as an IRA
13 | FIXED INCOME MANAGEMENT APPROACH
<PAGE>
[GRAPHIC OMITTED]
The funds invest across a range of
different types of securities
[GRAPHIC OMITTED]
Each fund makes its portfolio decisions
as described earlier in this prospectus
[GRAPHIC OMITTED]
J.P. Morgan uses a disciplined process
to control each fund's sensitivity
to interest rates
<PAGE>
FIXED INCOME INVESTMENT PROCESS
J.P. Morgan seeks to generate an information advantage through the depth of its
global fixed-income research and the sophistication of its analytical systems.
Using a team-oriented approach, J.P. Morgan seeks to gain insights in a broad
range of distinct areas, and when consistent with a fund's investment approach,
takes positions in many different areas, helping the funds to limit exposure to
concentrated sources of risk.
In managing the funds described in this prospectus, J.P. Morgan employs a
three-step process that combines sector allocation, fundamental research for
identifying portfolio securities, and duration management. Sector allocation The
sector allocation team meets monthly, analyzing the fundamentals of a broad
range of sectors in which a fund may invest. The team seeks to enhance
performance and manage risk by underweighting or overweighting sectors.
Security selection Relying on the insights of different specialists, including
credit analysts, quantitative researchers, and dedicated fixed income traders,
the portfolio managers make buy and sell decisions according to each fund's goal
and strategy.
Duration management Forecasting teams use fundamental economic factors to
develop strategic forecasts of the direction of interest rates. Based on these
forecasts, strategists establish each fund's target duration, a common
measurement of a security's sensitivity to interest rate movements. For
securities owned by a fund, duration measures the average time needed to receive
the present value of all principal and interest payments by analyzing cash flows
and interest rate movements. A fund's duration is generally shorter than a
fund's average maturity because the maturity of a security only measures the
time until final payment is due. Each fund's target duration typically remains
relatively close to the duration of the market as a whole, as represented by the
fund's benchmark. The strategists closely monitor the funds and make tactical
adjustments as necessary.
FIXED INCOME MANAGEMENT APPROACH | 14
<PAGE>
YOUR INVESTMENT
--------------------------------------------------------------------------------
For your convenience, the J.P. Morgan Funds offer several ways to start and add
to fund investments.
INVESTING THROUGH A FINANCIAL PROFESSIONAL
If you work with a financial professional, either at J.P. Morgan or elsewhere,
he or she is prepared to handle your planning and transaction needs. Your
financial professional will be able to assist you in establishing your fund
account, executing transactions, and monitoring your investment. If your fund
investment is not held in the name of your financial professional and you prefer
to place a transaction order yourself, please use the instructions for investing
directly.
INVESTING THROUGH AN EMPLOYER-SPONSORED RETIREMENT PLAN Your fund investments
are handled through your plan. Refer to your plan materials or contact your
benefits office for information on buying, selling, or exchanging fund shares.
INVESTING THROUGH AN IRA OR ROLLOVER IRA
Please contact a J.P. Morgan Retirement Services Specialist at 1-888-576-4472
for information on J.P. Morgan's comprehensive IRA services, including lower
minimum investments.
INVESTING DIRECTLY
Investors may establish accounts without the help of an intermediary by using
the instructions below and at right:
o Choose a fund (or funds) and determine the amount you are investing. The
minimum amount for initial investments in a fund is $2,500 and for additional
investments $500, although these minimums may be less for some investors. For
more information on minimum investments, call 1-800-521-5411.
o Complete the application, indicating how much of your investment you want to
allocate to which fund(s). Please apply now for any account privileges you may
want to use in the future, in order to avoid the delays associated with adding
them later on.
o Mail in your application, making your initial investment as shown at right.
For answers to any questions, please speak with a J.P. Morgan Funds Services
Representative at 1-800-521-5411.
<PAGE>
--------------------------------------------------------------------------------
OPENING YOUR ACCOUNT
By wire
o Mail your completed application to the Shareholder Services Agent.
o Call the Shareholder Services Agent to obtain an account number and to place a
purchase order. Funds that are wired without a purchase order will be returned
uninvested.
o After placing your purchase order, instruct your bank to wire the amount of
your investment to:
Morgan Guaranty Trust Company of New York - Delaware
Routing number: 031-100-238
Credit: Morgan Guaranty Trust Shareholder Services
Account number: 00073-836
FFC: your account number, name of registered owner(s) and fund name
By check
o Make out a check for the investment amount payable to J.P. Morgan Funds.
o Mail the check with your completed application to the Transfer Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
ADDING TO YOUR ACCOUNT
By wire
o Call the Shareholder Services Agent to place a purchase order. Funds that are
wired without a purchase order will be returned uninvested.
o Once you have placed your purchase order, instruct your bank to wire the
amount of your investment as described above.
By check
o Make out a check for the investment amount payable to J.P. Morgan Funds.
o Mail the check with a completed investment slip to the Transfer Agent. If you
do not have an investment slip, attach a note indicating your account number
and how much you wish to invest in which fund(s).
By exchange
o Call the Shareholder Services Agent to effect an exchange.
15 | YOUR INVESTMENT
<PAGE>
--------------------------------------------------------------------------------
SELLING SHARES
By phone-- wire payment
o Call the Shareholder Services Agent to verify that the wire redemption
privilege is in place on your account. If it is not, a representative can help
you add it.
o Place your wire request. If you are transferring money to a non-Morgan
account, you will need to provide the representative with the personal
identification number (PIN) that was provided to you when you opened your fund
account.
By phone -- check payment
o Call the Shareholder Services Agent and place your request. Once your request
has been verified, a check for the net amount, payable to the registered
owner(s), will be mailed to the address of record. For checks payable to any
other party or mailed to any other address, please make your request in
writing (see below).
In writing
o Write a letter of instruction that includes the following information: The
name of the registered owner(s) of the account; the account number; the fund
name; the amount you want to sell; and the recipient's name and address or
wire information, if different from those of the account registration.
o Indicate whether you want the proceeds sent by check or by wire.
o Make sure the letter is signed by an authorized party. The Shareholder
Services Agent may require additional information, such as a signature
guarantee.
o Mail the letter to the Shareholder Services Agent.
By exchange
o Call the Shareholder Services Agent to effect an exchange.
Redemption In Kind
o Each fund reserves the right to make redemptions of over $250,000 in
securities rather than in cash.
<PAGE>
--------------------------------------------------------------------------------
ACCOUNT AND TRANSACTION POLICIES
Telephone orders The funds accept telephone orders from all shareholders. To
guard against fraud, the funds require shareholders to use a PIN, and may record
telephone orders or take other reasonable precautions. However, if a fund does
take such steps to ensure the authenticity of an order, you may bear any loss if
the order later proves fraudulent.
Exchanges You may exchange shares in these funds for shares in any other J.P.
Morgan or J.P. Morgan Institutional mutual fund at no charge (subject to the
securities laws of your state). When making exchanges, it is important to
observe any applicable minimums. Keep in mind that for tax purposes an exchange
is considered a sale.
A fund may alter, limit, or suspend its exchange policy at any time.
Business hours and NAV calculations The funds' regular business days and hours
are the same as those of the New York Stock Exchange (NYSE). Each fund
calculates its net asset value per share (NAV) every business day as of the
close of trading on the NYSE (normally 4:00 p.m. eastern time). Each fund's
securities are typically priced using pricing services or market quotes. When
these methods are not available or do not represent a security's value at the
time of pricing (e.g., when an event occurs on a foreign exchange, after the
close of trading on that exchange, that would materially impact a security's
value at the time the fund calculates its NAV), the security is valued in
accordance with the fund's fair valuation procedures.
Timing of orders Orders to buy or sell shares are executed at the next NAV
calculated after the order has been accepted. Orders are accepted until the
close of trading on the NYSE every business day and are executed the same day,
at that day's NAV. A fund has the right to suspend redemption of shares as
permitted by law and to postpone payment of proceeds for up to seven days.
--------------------------------------------------------------------------------
Transfer Agent Shareholder Services Agent
State Street Bank and Trust Company Morgan Christiana Center
P.O. Box 8411 J.P. Morgan Funds Services - 2/OPS3
Boston, MA 02266-8411 500 Stanton Christiana Road
Attention: J.P. Morgan Funds Services Newark, DE 19713
1-800-521-5411
Representatives are available 8:00
a.m. to 6:00 p.m. eastern time on
fund business days.
YOUR INVESTMENT | 16
<PAGE>
Timing of settlements When you buy shares, you will become the owner of record
when a fund receives your payment, generally the day following execution. When
you sell shares, proceeds are generally available the day following execution
and will be forwarded according to your instructions.
When you sell shares that you recently purchased by check, your order will be
executed at the next NAV but the proceeds will not be available until your check
clears. This may take up to 15 days.
Statements and reports The funds send monthly account statements as well as
confirmations after each purchase or sale of shares (except reinvestments).
Every six months each fund sends out an annual or semi-annual report containing
information on its holdings and a discussion of recent and anticipated market
conditions and fund performance.
Accounts with below-minimum balances If your account balance falls below the
minimum for 30 days as a result of selling shares (and not because of
performance), each fund reserves the right to request that you buy more shares
or close your account. If your account balance is still below the minimum 60
days after notification, each fund reserves the right to close out your account
and send the proceeds to the address of record.
DIVIDENDS AND DISTRIBUTIONS
Income dividends are typically declared daily and paid monthly. If an investor's
shares are redeemed during the month, accrued but unpaid dividends are paid with
the redemption proceeds. Shares of a fund earn dividends on the business day the
purchase is effective, but not on the business day the redemption is effective.
Each fund distributes capital gains, if any, once a year. However, a fund may
make more or fewer payments in a given year, depending on its investment results
and its tax compliance situation. Each fund's dividends and distributions
consist of most or all of its net investment income and net realized capital
gains.
Dividends and distributions are reinvested in additional fund shares.
Alternatively, you may instruct your financial professional or J.P. Morgan Funds
Services to have them sent to you by check, credited to a separate account, or
invested in another J.P. Morgan Fund.
<PAGE>
--------------------------------------------------------------------------------
TAX CONSIDERATIONS
In general, selling shares, exchanging shares, and receiving distributions
(whether reinvested or taken in cash) are all taxable events. These transactions
typically create the following tax liabilities for taxable accounts:
--------------------------------------------------------------------------------
Transaction Tax status
--------------------------------------------------------------------------------
Income dividends from the Exempt from federal, state,
New York Tax Exempt Bond and New York City personal
Fund income taxes for New York
residents only
--------------------------------------------------------------------------------
Income dividends from the Exempt from federal personal
Tax Exempt Bond Fund income taxes
--------------------------------------------------------------------------------
Income dividends from Ordinary income
all other funds
--------------------------------------------------------------------------------
Short-term capital gains Ordinary income
distributions
--------------------------------------------------------------------------------
Long-term capital gains Capital gains
distributions
--------------------------------------------------------------------------------
Sales or exchanges of Capital gains or
shares owned for more losses
than one year
--------------------------------------------------------------------------------
Sales or exchanges of Gains are treated as ordinary
shares owned for one year income; losses are subject
or less to special rules
--------------------------------------------------------------------------------
Because long-term capital gains distributions are taxable as capital gains
regardless of how long you have owned your shares, you may want to avoid making
a substantial investment when a fund is about to declare a long-term capital
gains distribution. A portion of the Tax Exempt Bond and New York Tax Exempt
Bond funds' returns may be subject to federal, state, or local tax, or the
alternative minimum tax. Every January, each fund issues tax information on its
distributions for the previous year. Any investor for whom a fund does not have
a valid taxpayer identification number will be subject to backup withholding for
taxes. The tax considerations described in this section do not apply to
tax-deferred accounts or other non-taxable entities. Because each investor's tax
circumstances are unique, please consult your tax professional about your fund
investment.
17 | YOUR INVESTMENT
<PAGE>
FUND DETAILS
--------------------------------------------------------------------------------
BUSINESS STRUCTURE
As noted earlier, each fund is a series of J.P. Morgan Funds, a Massachusetts
business trust, and a "feeder" fund that invests in a master portfolio. (Except
where indicated, this prospectus uses the term "the fund" to mean the feeder
fund and its master portfolio taken together.)
Each master portfolio accepts investments from other feeder funds, and all the
feeders of a given master portfolio bear the portfolio's expenses in proportion
to their assets. However, each feeder can set its own transaction minimums,
fund-specific expenses and other conditions. This means that one feeder could
offer access to the same master portfolio on more attractive terms, or could
experience better performance, than another feeder. Information about other
feeders is available by calling 1-800-521-5411. Generally, when a master
portfolio seeks a vote, each of its feeder funds will hold a shareholder meeting
and cast its vote proportionately, as instructed by its shareholders. Fund
shareholders are entitled to one full or fractional vote for each dollar or
fraction of a dollar invested.
Each feeder fund and its master portfolio expect to maintain consistent goals,
but if they do not, the feeder fund will withdraw from the master portfolio,
receiving its assets either in cash or securities. Each feeder fund's trustees
would then consider whether it should hire its own investment adviser, invest in
a different master portfolio, or take other action.
MANAGEMENT AND ADMINISTRATION
The feeder funds described in this prospectus, their corresponding master
portfolios, and J.P. Morgan Series Trust are all governed by the same trustees.
The trustees are responsible for overseeing all business activities. The
trustees are assisted by Pierpont Group, Inc., which they own and operate on a
cost basis; costs are shared by all funds governed by these trustees. Funds
Distributor, Inc., as co-administrator, along with J.P. Morgan, provides fund
officers. J.P. Morgan, as co-administrator, oversees each fund's other service
providers.
J.P. Morgan, subject to the expense reimbursements described earlier in this
prospectus, receives the following fees for investment advisory and other
services:
<PAGE>
--------------------------------------------------------------------------------
Advisory services Percentage of the master
portfolio's average net assets
--------------------------------------------------------------------------------
Short Term Bond 0.25%
--------------------------------------------------------------------------------
Bond 0.30%
--------------------------------------------------------------------------------
Global Strategic Income 0.45%
--------------------------------------------------------------------------------
Emerging Markets Debt 0.70%
--------------------------------------------------------------------------------
Tax Exempt Bond 0.30%
--------------------------------------------------------------------------------
New York Tax Exempt Bond 0.30%
--------------------------------------------------------------------------------
Administrative services Master portfolio's and fund's
(fee shared with Funds pro- rata portions of 0.09% of
Distributor, Inc.) the first $7 billion of
average net assets in J.P.
Morgan-advised portfolios,
plus 0.04% of average net
assets over $7 billion
--------------------------------------------------------------------------------
Shareholder services 0.25% of each fund's average
net assets
--------------------------------------------------------------------------------
J.P. Morgan may pay fees to certain firms and professionals for providing
recordkeeping or other services in connection with investments in a fund.
FUND DETAILS | 18
<PAGE>
--------------------------------------------------------------------------------
RISK AND REWARD ELEMENTS
This table discusses the main elements that make up each fund's overall risk and
reward characteristics. It also outlines each fund's policies toward various
investments, including those that are designed to help certain funds manage
risk.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Potential risks Potential rewards Policies to balance risk and reward
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Market conditions
o Each fund's share price, o Bonds have generally o Under normal circumstances the
funds plan to
yield, and total return will outperformed money market remain fully invested in bonds and
other fixed
fluctuate in response to investments over the long income securities as noted in the
table on pages
bond market movements term, with less risk than
21-22
stocks
o The value of most bonds will o The funds seek to limit risk and
enhance total
fall when interest rates o Most bonds will rise in return or yields through careful
management,
rise; the longer a bond's value when interest rates sector allocation, individual
securities
maturity and the lower its fall selection, and duration
management
credit quality, the more
its
value typically falls o Mortgage-backed and o During severe market downturns,
the funds have the
asset-backed securities can option of investing up to 100% of
assets in
o Adverse market conditions offer attractive returns investment-grade short-term
securities
may from time to time
cause
a fund to take temporary o J.P. Morgan monitors interest rate
trends, as well
defensive positions that are as geographic and demographic
information related
inconsistent with its to mortgage-backed securities and
mortgage
principal investment
prepayments
strategies and may hinder a
fund from achieving its
investment objective
o Mortgage-backed and asset-backed securities (securities representing an
interest in, or secured by, a pool of mortgages or other assets such as
receivables) could generate capital losses or periods of low yields if they
are paid off substantially earlier or later than anticipated
------------------------------------------------------------------------------------------------------------------------------------
Credit quality
o The default of an issuer o Investment-grade bonds have o Each fund maintains its own
policies for balancing
would leave a fund with a lower risk of default credit quality against potential
yields and gains
unpaid interest or principal in light of its investment
goals
o Junk bonds offer
higher
o Junk bonds (those rated yields and higher potential o J.P. Morgan develops its own
ratings of unrated
BB/Ba or lower) have a gains securities and makes a credit
quality
higher risk of default, tend determination for unrated
securities
to be less liquid, and may
be more difficult to value
------------------------------------------------------------------------------------------------------------------------------------
Foreign investments
o A fund could lose money o Foreign bonds, which o Foreign bonds are a primary
investment only for
because of foreign represent a major portion of the Global Strategic Income and
Emerging Markets
government actions, the world's fixed income Debt funds and may be a
significant investment for
political instability, or securities, offer attractive the Short Term Bond and Bond
funds; the Tax Exempt
lack of adequate and potential performance and Bond and New York Tax Exempt Bond
funds are not
accurate information opportunities for permitted to invest any assets in
foreign bonds
diversification
o Currency exchange rate o To the extent that a fund invests
in foreign
movements could reduce gains o Favorable exchange rate bonds, it may manage the currency
exposure of its
or create losses movements could generate foreign investments relative to
its benchmark, and
gains or reduce losses may hedge a portion of its foreign
currency
o Currency and investment exposure into the U.S. dollar from
time to time
risks tend to be higher in o Emerging markets can offer (see also "Derivatives"); these
currency
emerging markets higher returns management techniques may not be
available for
certain emerging markets
investments
------------------------------------------------------------------------------------------------------------------------------------
Management choices
o A fund could underperform o A fund could outperform its o J.P. Morgan focuses its active
management on those
its benchmark due to its benchmark due to these same areas where it believes its
commitment to research
sector, securities or choices can most enhance returns and
manage risks in a
duration choices consistent
way
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19 | FUND DETAILS
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Potential risks Potential rewards Policies to balance risk and reward
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Derivatives
o Derivatives such as futures, o Hedges that correlate well o The funds use derivatives, such as
futures,
options, swaps and forward with underlying positions options, swaps and forward foreign
currency
foreign currency contracts can reduce or eliminate contracts, for hedging and for
risk management
that are used for hedging losses at low cost (i.e., to adjust duration or yield
curve exposure,
the portfolio or specific or to establish or adjust exposure
to particular
securities may not fully o A fund could make money and securities, markets, or
currencies); risk
offset the underlying protect against losses if management may include management
of a fund's
positions(1) and this could management's analysis proves exposure relative to its
benchmark; the Tax Exempt
result in losses to the fund correct Bond and New York Tax Exempt Bond
funds are
that would not have permitted to enter into futures
and options
otherwise occurred o Derivatives that involve transactions, however, these
transactions result
leverage could generate in taxable gains or losses so it
is expected that
o Derivatives used for risk substantial gains at low these funds will utilize them
infrequently;
management may not have the cost forward foreign currency contracts
are not
intended effects and may permitted to be used by the Tax
Exempt Bond and
result in losses or missed New York Tax Exempt Bond
funds
opportunities
o The funds only establish hedges
that they expect
o The counterparty to a will be highly correlated with
underlying
derivatives contract could
positions
default
o While the funds may use
derivatives that
o Certain types of derivatives incidentally involve leverage,
they do not use
involve costs to the funds them for the specific purpose of
leveraging their
which can reduce returns
portfolios
o Derivatives that involve
leverage could magnify
losses
------------------------------------------------------------------------------------------------------------------------------------
Securities lending
o When a fund lends a o A fund may enhance income o J.P. Morgan maintains a list of
approved borrowers
security, there is a risk through the investment
of
that the loaned securities the collateral received from o The fund receives collateral equal
to at least
may not be returned if the the borrower 100% of the current value of
securities loaned
borrower
defaults
o The lending agents indemnify a
fund against
o The collateral will be borrower
default
subject to the risks of
the
securities in which it is o J.P. Morgan's collateral
investment guidelines
invested limit the quality and duration of
collateral
investment to minimize
losses
o Upon recall, the borrower must
return the
securities loaned within the
normal settlement
period
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Illiquid holdings
o A fund could have difficulty o These holdings may offer o No fund may invest more than 15%
of net assets in
valuing these holdings more attractive yields or illiquid
holdings
precisely potential growth
than
comparable widely traded o To maintain adequate liquidity to
meet
o A fund could be unable to securities redemptions, each fund may hold
investment-grade
sell these holdings at the short-term securities (including
repurchase
time or price desired agreements and reverse purchase
agreements) and,
for temporary or extraordinary
purposes, may
borrow from banks up to 33 1/3% of
the value of
its total
assets
------------------------------------------------------------------------------------------------------------------------------------
When-issued and delayed
delivery securities
o When a fund buys securities o A fund can take advantage of o Each fund uses segregated accounts
to offset
before issue or for delayed attractive transaction leverage
risk
delivery, it could be opportunities
exposed to leverage risk if
it does not use segregated
accounts
------------------------------------------------------------------------------------------------------------------------------------
Short-term trading
o Increased trading would o A fund could realize gains o The funds may use short-term
trading to take
raise a fund's transaction in a short period of time advantage of attractive or
unexpected
costs opportunities or to meet demands
generated by
o A fund could protect against shareholder activity. The turnover
rate for each
o Increased short-term capital losses if a bond is fund for its most recent fiscal
year end is as
gains distributions would overvalued and its value follows: Short Term Bond (398%),
Bond (465%),
raise shareholders' income later falls Global Strategic Income (318%),
Emerging Markets
tax liability Debt, for the seven months ended
7/31/99 (555%),
Tax Exempt Bond, for the eleven
months ended
7/31/99 (29%) and New York Tax
Exempt Bond, for
the four months ended 7/31/99
(8%).
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(1) A futures contract is an agreement to buy or sell a set quantity of an
underlying instrument at a future date, or to make or receive a cash payment
based on changes in the value of a securities index. An option is the right
to buy or sell a set quantity of an underlying instrument at a
pre-determined price. A swap is a privately negotiated agreement to exchange
one stream of payments for another. A forward foreign currency contract is
an obligation to buy or sell a given currency on a future date and at a set
price.
FUND DETAILS | 20
<PAGE>
--------------------------------------------------------------------------------
Investments
This table discusses the customary types of investments which can be held by
each fund. In each case the related types of risk are listed on the following
page (see below for definitions).This table reads across two pages.
<TABLE>
<CAPTION>
<S> <C>
------------------------------------------------------------------------------------------------------------------------------------
Asset-backed securities Interests in a stream of payments from specific assets,
such as auto or credit card receivables.
------------------------------------------------------------------------------------------------------------------------------------
Bank obligations Negotiable certificates of deposit, time deposits and bankers'
acceptances of domestic and foreign issuers.
------------------------------------------------------------------------------------------------------------------------------------
Commercial paper Unsecured short term debt issued by domestic and foreign banks or corporations. These securities
are usually
discounted and are rated by S&P or Moody's.
------------------------------------------------------------------------------------------------------------------------------------
Convertible securities Domestic and foreign debt securities that can be
converted into equity securities at a future time and price.
------------------------------------------------------------------------------------------------------------------------------------
Corporate bonds Debt securities of domestic and foreign industrial, utility,
banking, and other financial institutions.
------------------------------------------------------------------------------------------------------------------------------------
Mortgages (directly held) Domestic debt instrument which gives the lender a lien
on property as security for the loan payment.
------------------------------------------------------------------------------------------------------------------------------------
Mortgage-backed securities Domestic and foreign securities (such as Ginnie Maes,
Freddie Macs, Fannie Maes) which represent interests in pools of mortgages,
whereby the principal and interest paid every month is passed through to the
holder of the
securities.
------------------------------------------------------------------------------------------------------------------------------------
Mortgage dollar rolls The purchase of domestic or foreign mortgage-backed
securities with the promise to purchase similar securities upon the maturity of
the original security. Segregated accounts are used to offset leverage risk.
------------------------------------------------------------------------------------------------------------------------------------
Participation interests Interests that represent a share of domestic or foreign
bank debt or similar securities or obligations.
------------------------------------------------------------------------------------------------------------------------------------
Private placements Bonds or other investments that are sold directly to an
institutional investor.
------------------------------------------------------------------------------------------------------------------------------------
REITs and other real-estate related instruments Securities of issuers that
invest in real estate or are secured by real estate.
------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreements Contracts whereby the fund agrees to purchase a security and resell it to the seller on a
particular date and
at a specific price.
------------------------------------------------------------------------------------------------------------------------------------
Reverse repurchase agreements Contracts whereby the fund sells a security and
agrees to repurchase it from the buyer
on a particular
date and at a specific price. Considered a form of borrowing.
------------------------------------------------------------------------------------------------------------------------------------
Sovereign debt, Brady bonds, and debt of supranational organizations Dollar- or
non-dollar-denominated securities issued by foreign governments or supranational
organizations. Brady bonds are issued in connection with debt restructurings.
------------------------------------------------------------------------------------------------------------------------------------
Swaps Contractual agreement whereby a domestic or foreign party agrees to
exchange periodic payments with a
counterparty. Segregated
accounts are used to offset leverage risk.
------------------------------------------------------------------------------------------------------------------------------------
Synthetic variable rate instruments Debt instruments whereby the issuer agrees
to exchange one security for another
in order to
change the maturity or quality of a security in the fund.
------------------------------------------------------------------------------------------------------------------------------------
Tax exempt municipal securities Securities, generally issued as general
obligation and revenue bonds, whose interest is exempt from federal taxation and
state and/or local taxes in the state where the securities were issued.
------------------------------------------------------------------------------------------------------------------------------------
U.S. government securities Debt instruments (Treasury bills, notes, and bonds) guaranteed by the U.S. government for
the timely
payment of principal and interest.
------------------------------------------------------------------------------------------------------------------------------------
Zero coupon, pay-in-kind, and deferred payment securities Domestic and foreign securities offering non-cash or
delayed-cash payment.
Their prices are typically more volatile than those of some other debt
instruments and involve certain special tax considerations.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Risk related to certain investments held by J.P. Morgan fixed income funds:
Credit risk The risk a financial obligation will not be met by the issuer of a
security or the counterparty to a contract, resulting in a loss to the
purchaser.
Currency risk The risk currency exchange rate fluctuations may reduce gains or
increase losses on foreign investments.
Environmental risk The risk that an owner or operator of real estate may be
liable for the costs associated with hazardous or toxic substances located on
the property.
Extension risk The risk a rise in interest rates will extend the life of a
mortgage-backed security to a date later than the anticipated prepayment date,
causing the value of the investment to fall.
Interest rate risk The risk a change in interest rates will adversely affect the
value of an investment. The value of fixed income securities generally moves in
the opposite direction of interest rates (decreases when interest rates rise and
increases when interest rates fall).
Leverage risk The risk of gains or losses disproportionately higher than the
amount invested.
Liquidity risk The risk the holder may not be able to sell the security at the
time or price it desires.
21 | FUND DETAILS
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
0 Permitted (and if applicable, percentage limitation)
percentage of total assets - bold percentage of net assets
- italic
o Permitted, but not typically used + Permitted, but no current
intention of use -- Not permitted
Related Types of Risk
New
York
Short Global Emerging
Tax Tax
Term Strategic Markets
Exempt Exempt
Bond Bond Income Debt
Bond Bond
------------------------------------------------------------------------------------------------------------------------------------
credit, interest rate, market, prepayment 0 0 0 o
o o
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, liquidity, political 0(1) 0(1) 0 0 o
Domestic o Domestic
Only Only
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity, market, political 0(1) 0(1) o o
0 0
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity, market, political, valuation 0(1) 0(1) o 0
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity, market, political, valuation 0(1) 0(1) 0 0
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit, environmental, extension, interest rate, liquidity, market,
natural event, political, prepayment, valuation 0 0 0 +
+ +
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, extension, interest rate, leverage, market,
political,
prepayment 0(1) 0(1) 0 o
-- --
------------------------------------------------------------------------------------------------------------------------------------
currency, extension, interest rate, leverage, liquidity, market, political,
prepayment 0(1,3) 0(1,3) 0(3) --
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, extension, interest rate, liquidity, political, prepayment 0(1) 0(1) 0 0
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit, interest rate, liquidity, market, valuation 0 0 0 0
0 0
------------------------------------------------------------------------------------------------------------------------------------
credit, interest rate, liquidity, market, natural event, prepayment, valuation 0 0 0 --
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit 0 0 0 0
o o
------------------------------------------------------------------------------------------------------------------------------------
credit 0(1) 0(3) 0(3) 0(3)
o(1) o(3)
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, market, political 0(1) 0(1) 0 0
-- --
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, leverage, market, political 0(1) 0(1) 0 0
0 --
------------------------------------------------------------------------------------------------------------------------------------
credit, interest rate, leverage, liquidity, market -- -- -- --
0 0
------------------------------------------------------------------------------------------------------------------------------------
credit, interest rate, market, natural event, political o o -- --
0(2) 0(2)
------------------------------------------------------------------------------------------------------------------------------------
interest rate 0 0 0 0
0 0
------------------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity, market, political, valuation 0(1) 0(1) 0 0
0 0
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Market risk The risk that when the market as a whole declines, the value of a
specific investment will decline proportionately. This systematic risk is common
to all investments and the mutual funds that purchase them.
Natural event risk The risk a natural disaster, such as a hurricane or similar
event, will cause severe economic losses and default in payments by the issuer
of the security.
Political risk The risk governmental policies or other political actions will
negatively impact the value of the investment.
Prepayment risk The risk declining interest rates will result in unexpected
prepayments, causing the value of the investment to fall.
Valuation risk The risk the estimated value of a security does not match the
actual amount that can be realized if the security is sold.
(1) For each of the Short Term Bond and Bond funds, all foreign securities in
the aggregate may not exceed 25% of such fund's assets.
(2) At least 65% of the New York Tax Exempt Bond Fund's assets must be in New
York municipal securities, and at least 80% of the New York Tax Exempt and
Tax Exempt Bond Funds' assets must be in tax exempt securities.
(3) All forms of borrowing (including securities lending and reverse repurchase
agreements) in the aggregate may not exceed 33 1/3 of the fund's total
assets.
FUND DETAILS | 22
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand each fund's
financial performance for the past one through five fiscal years or periods, as
applicable. Certain information reflects financial results for a single fund
share. The total returns in the tables represent the rate that an investor would
have earned (or lost) on an investment in a fund (assuming reinvestment of all
dividends and distributions). Except where noted, this information has been
audited by PricewaterhouseCoopers LLP, whose reports, along with each fund's
financial statements, are included in the respective fund's annual report, which
are available upon request.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN SHORT TERM BOND FUND
Per-share data For fiscal years ended
------------------------------------------------------------------------------------------------------------------------------------
1995 1996 1997
1998 1999
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of year ($) 9.60 9.84 9.86
9.85 9.98
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.57 0.53 0.58
0.56 0.57
Net realized and unrealized gain (loss
on investment ($) 0.24 0.02 (0.01)
0.13 (0.31)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.81 0.55 0.57
0.69 0.26
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.57) (0.53) (0.58)
(0.56) (0.51)
Net realized gain ($) -- -- --
-- (0.05)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.57) (0.53) (0.58)
(0.56) (0.56)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 9.84 9.86 9.85
9.98 9.68
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%) 8.70 5.77 5.98
7.24 2.70
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 10,330 8,207 14,519
30,984 38,714
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.67 0.62 0.50
0.50 0.57
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 5.88 5.42 5.94
5.66 5.24
------------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 1.48 1.61 1.38
0.98 0.80
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Not annualized.
(2) Annualized.
23 | FUND DETAILS
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN BOND FUND
Per-share data For fiscal years ended
------------------------------------------------------------------------------------------------------------------------------------
1995 1996 1997
1998 1999
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of year ($) 9.64 10.41 10.30
10.42 10.59
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:0.64 0.62 0.66 0.65 0.58
Net realized and unrealized gain (loss)
on investment ($) 0.77 (0.11) 0.18
0.17 (0.60)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 1.41 0.51 0.84
0.82 (0.02)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income ($) (0.64) (0.62) (0.65)
(0.65) (0.59)
Net realized gain ($) -- -- (0.07)
-- (0.11)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.64) (0.62) (0.72)
(0.65) (0.70)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.41 10.30 10.42
10.59 9.87
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%) 15.10 5.13 8.58
8.06 (0.23)
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 143,004 149,207 169,233
216,285 234,874
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.69 0.66 0.68
0.66 0.69
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 6.40 6.08 6.41
6.14 5.72
------------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 0.69 0.66 0.68
0.66 0.69
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN GLOBAL STRATEGIC INCOME FUND
Per-share data For fiscal periods ended
------------------------------------------------------------------------------------------------------------------------------------
1998(1) 1999
<S>
<C> <C>
Net asset value, beginning of period ($)
10.21 9.77
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($)
0.70 0.60
Net realized and unrealized loss
on investment ($)
(0.49) (0.38)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($)
0.21 0.22
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($)
(0.63) (0.59)
Return of capital
(0.02) --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($)
(0.65) (0.59)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($)
9.77 9.40
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%)
1.97(2) 2.26
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands)
10,166 9,073
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%)
1.003 1.00
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%)
6.243 6.35
------------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%)
1.893 1.54
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund commenced operations on 11/5/97. (2) Not annualized.
(3) Annualized.
FUND DETAILS | 24
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN EMERGING MARKETS DEBT FUND
For
the seven
Per-share data For fiscal periods ended
months ended
------------------------------------------------------------------------------------------------------------------------------------
12/31/97(1) 12/31/98
7/31/99
<S> <C>
<C> <C>
Net asset value, beginning of period ($) 10.00
9.76 7.30
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.58
1.15 0.49
Net realized and unrealized loss
on investment ($) (0.05)
(2.64) 0.02
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.53
(1.49) 0.51
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.58) (0.81)
(0.52)
Excess of net investment income ($) (0.02)
(0.16) --
Net realized gain ($) (0.17)
-- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.77) (0.97)
(0.52)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 9.76
7.30 7.29
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%) 5.47(2)
(15.93) 7.27(2)
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 11,978 19,313
26,216
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 1.25(3)
1.25 1.25(3)
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 9.71(3) 10.05
12.28(3)
------------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 2.40(3)
2.09 2.51(3)
------------------------------------------------------------------------------------------------------------------------------------
Interest expense --
-- 0.02(3)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund commenced operations on 4/17/97. (2) Not annualized.
(3) Annualized.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN TAX EXEMPT BOND FUND
For the 11
Per-share data For fiscal periods
ended months ended
------------------------------------------------------------------------------------------------------------------------------------
8/31/95 8/31/96 8/31/97
8/31/98 7/31/99
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of period ($) 11.45 11.73 11.63
11.85 12.15
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.55 0.55 0.55
0.54 0.46
Net realized and unrealized gain (loss)
on investment ($) 0.29 (0.08) 0.24
0.30 (0.36)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.84 0.47 0.79
0.84 0.10
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.55) (0.55) (0.55)
(0.54) 0.46
Net realized gain ($) (0.01) (0.02) (0.02)
(0.00)(1) (0.02)
Distributions in excess of net investment income ($) -- -- --
-- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.56) (0.57) (0.57)
(0.54) (0.48)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 11.73 11.63 11.85
12.15 11.77
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%) 7.63 4.01 6.95
7.21 0.83(2)
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 352,005 369,987 401,007
439,225 431,685
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.71 0.64 0.64
0.64 0.68(3)
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.87 4.67 4.67
4.44 4.21(3)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Less than $0.01 per share.
(2) Not annualized.
(3) Annualized.
25 | FUND DETAILS
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND
For the four
Per-share data For fiscal years
ended months ended
------------------------------------------------------------------------------------------------------------------------------------
3/31/95(1) 3/31/96 3/31/97 3/31/98
3/31/99 7/31/99
<S> <C> <C> <C> <C>
<C> <C>
Net asset value, beginning of year ($) 10.00 10.11 10.34 10.28
10.62 10.66
------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.40 0.46 0.46 0.46
0.42 0.13
Net realized and unrealized gain (loss)
on investment ($) 0.11 0.26 (0.03) 0.40
0.14 (0.28)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.51 0.72 0.43 0.86
0.56 (0.15)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.40) (0.46) (0.46) (0.46)
(0.42) (0.13)
Net realized gain ($) -- (0.03) (0.03) (0.06)
(0.10) (0.03)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.40) (0.49) (0.49) (0.52)
(0.52) (0.16)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.11 10.34 10.28 10.62
10.66 10.35
------------------------------------------------------------------------------------------------------------------------------------
Ratios and supplemental data
------------------------------------------------------------------------------------------------------------------------------------
Total return (%) 5.26(2) 7.16 4.19 8.49
5.39 (1.41)(2)
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 38,137 50,523 56,198 85,161
119,152 115,690
------------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.75(3) 0.75 0.75 0.71
0.70 0.70(3)
------------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.31(3) 4.43 4.44 4.33
3.95 3.82(3)
------------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 0.97(3) 0.79 0.81 0.77
0.74 0.78(3)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The fund commenced operations on 4/11/94.
(2) Not annualized.
(3) Annualized.
FUND DETAILS | 26
<PAGE>
--------------------------------------------------------------------------------
FOR MORE INFORMATION
--------------------------------------------------------------------------------
For investors who want more information on these funds, the following documents
are available free upon request:
Annual/Semi-annual Reports Contain financial statements, performance data,
information on portfolio holdings, and a written analysis of market conditions
and fund performance for the fund's most recently completed fiscal year or
half-year.
Statement of Additional Information (SAI) Provides a fuller technical and legal
description of the fund's policies, investment restrictions, and business
structure. This prospectus incorporates each fund's SAI by reference.
Copies of the current versions of these documents, along with other information
about the fund, may be obtained by contacting:
J.P. Morgan Institutional Funds
Morgan Christiana Center
J.P. Morgan Funds Services - 2/OPS3
500 Stanton Christiana Road
Newark, DE 19713
Telephone: 1-800-766-7722
Hearing impaired: 1-888-468-4015
Email: [email protected]
Text-only versions of these documents and this prospectus are available, upon
payment of a duplicating fee, from the Public Reference Room of the Securities
and Exchange Commission in Washington, D.C. (1-202-942-8090) and may be viewed
on-screen or downloaded from the SEC's Internet site at http://www.sec.gov. The
fund's investment company and 1933 Act registration numbers are:
J.P. Morgan Short Term Bond Fund ...................... 811-07340 and 033-54632
J.P. Morgan Bond Fund ................................. 811-07340 and 033-54632
J.P. Morgan Global Strategic Income Fund .............. 811-07340 and 033-54632
J.P. Morgan Emerging Markets Debt Fund ................ 811-07340 and 033-54632
J.P. Morgan Tax Exempt Bond Fund ...................... 811-07340 and 033-54632
J.P. Morgan New York Tax Exempt Bond Fund ............. 811-07340 and 033-54632
<PAGE>
J.P. MORGAN MUTUAL FUNDS AND THE MORGAN TRADITION
The J.P. Morgan mutual funds combine a heritage of integrity and financial
leadership with comprehensive, sophisticated analysis and management techniques.
Drawing on J.P. Morgan's extensive experience and depth as an investment
manager, the J.P. Morgan mutual funds offer a broad array of distinctive
opportunities for mutual fund investors.
JPMorgan
--------------------------------------------------------------------------------
J.P. Morgan Funds
Advisor Distributor
J.P. Morgan Investment Management Inc. Funds Distributor, Inc.
522 Fifth Avenue 60 State Street
New York, NY 10036 Boston, MA 02109
1-800-521-5411 1-800-221-7930
IMPR03
