Prospectus
J.P. Morgan
Money Market Funds
Empower
Shares
June 21,
2024
INSTITUTIONAL
FUNDS
JPMorgan Prime
Money Market Fund
Ticker:
EJPXX
GOVERNMENT
FUNDS
JPMorgan 100%
U.S. Treasury Securities Money Market Fund
Ticker:
EJTXX
JPMorgan U.S.
Government Money Market Fund
Ticker:
EJGXX
JPMorgan U.S.
Treasury Plus Money Market Fund
Ticker:
EJUXX
The
Securities and Exchange Commission and the Commodity Futures Trading Commission
have not approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
JPMorgan
Prime Money Market Fund
Class/Ticker:
Empower/EJPXX
The
Fund’s Objective
The Fund
seeks current income while seeking to maintain liquidity and a low volatility of
principal.
Fees
and Expenses of the Fund
The following
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
examples below.
|
ANNUAL
FUND OPERATING EXPENSES
(Expenses
that you pay each year as a percentage of the value
of
your investment) | |
|
|
Empower |
|
Management
Fees |
0.08% |
|
Other
Expenses |
0.10 |
|
Service
Fees |
0.05 |
|
Remainder
of Other Expenses |
0.05 |
|
Total
Annual Fund Operating Expenses |
0.18 |
Example
This Example 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 that you invest $10,000 in the Fund for
the time periods indicated. The Example also assumes that your investment has a
5% return each year and that the Fund’s operating expenses remain the same. Your
actual costs may be higher or lower.
|
WHETHER
OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD
BE: | ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
EMPOWER
SHARES ($) |
18 |
58 |
101 |
230 |
The
Fund’s Main Investment Strategy
The Fund
invests in high quality, short-term money market instruments which are issued
and payable in U.S. dollars. The Fund principally invests in:
●
high quality
commercial paper and other short-term debt securities, including floating and
variable rate demand notes of U.S. and foreign corporations,
●
debt
securities issued or guaranteed by qualified U.S. and foreign banks, including
certificates of deposit, time deposits and other short-term
securities,
●
securities
issued or guaranteed by the U.S. government, its agencies or instrumentalities
or Government-Sponsored Enterprises (“GSEs”),
●
asset-backed
securities,
●
repurchase
agreements, and
●
taxable
municipal obligations.
The Fund is a
money market fund managed in the following manner:
●
The Fund
calculates its net asset value to four decimals (e.g., $1.0000) using
market-based pricing and operates with a floating net asset value.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund
invests only in U.S. dollar-denominated securities.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund may
invest significantly in securities with floating or variable rates of interest.
Their yields will vary as interest rates change. The securities in which the
Fund may invest include privately placed securities. The Fund will generally
hold a portion of its assets in cash, primarily to meet redemptions.
The Fund will
concentrate its investments in the banking industry. Therefore, under normal
conditions, the Fund will invest at least 25% of its total assets in securities
issued by companies in the banking industry. The Fund
may, however, invest less
than 25% of its total assets in this industry as a temporary defensive
measure.
The Fund may
trade securities on a when-issued, delayed settlement or forward commitment
basis. The Fund’s adviser seeks to develop an appropriate portfolio by
considering the differences in yields among securities of different maturities,
market sectors and issuers.
Liquidity
Fees
The Fund’s policies and
procedures permit the Fund
to impose
a
discretionary
liquidity fee on redemptions of up to 2% of the value of the shares redeemed if
the adviser, as the delegate of the Board, determines it is in the best
interests of the Fund.
The
Fund’s Main Investment Risks
The Fund is
subject to management risk and the Fund may not achieve its objective if the
adviser’s expectations regarding particular instruments or interest rates are
not met.
You could lose money by
investing in the Fund.
Because the
share price of the Fund will fluctuate, when you sell your shares they may be
worth more or less than what you originally paid for them.
The Fund may
impose a fee upon sale of your shares. Effective October 2,
2024,
the Fund
generally must impose a fee when net sales of Fund shares exceed certain
levels. An
investment in
the Fund is not a bank account and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not
June
21, 2024 | 1
JPMorgan
Prime Money Market Fund
(continued)
required to reimburse the
Fund for losses, and you should not expect that the sponsor will provide
financial support to the Fund at any time, including during periods of market
stress.
Any gain
resulting from the sale or exchange of Fund shares will be taxable as long-term
or short-term gain, depending upon how long you have held your
shares.
An
investment in this Fund or any other fund may not provide a complete investment
program. The suitability of an investment in the Fund should be considered based
on the investment objective, strategies and risks described in this prospectus,
considered in light of all of the other investments in your portfolio, as well
as your risk tolerance, financial goals and time horizons. You may want to
consult with a financial advisor to determine if this Fund is suitable for
you.
The Fund is
subject to the main risks noted below, any of which may adversely affect the
Fund’s performance and ability to meet its investment objective.
Interest
Rate Risk. The
Fund’s investments in bonds and other debt securities will change in value based
on changes in interest rates. If rates increase, the value of these investments
generally declines. Securities with greater interest rate sensitivity and longer
maturities generally are subject to greater fluctuations in value. The Fund may
invest in variable and floating rate securities. Although these instruments are
generally less sensitive to interest rate changes than fixed rate instruments,
the value of floating rate and variable securities may decline if their interest
rates do not rise as quickly, or as much, as general interest rates. The Fund
may face a heightened level of interest rate risk due to certain changes in
monetary policy. It is difficult to predict the pace at which central banks or
monetary authorities may change interest rates or the timing, frequency, or
magnitude of such changes. Any such changes could be sudden and could expose
debt markets to significant volatility and reduced liquidity for Fund
investments.
Credit
Risk. The Fund’s
investments are subject to the risk that issuers and/or counterparties will fail
to make payments when due or default completely. Prices of the Fund’s
investments may be adversely affected if any of the issuers or counterparties it
is invested in are subject to an actual or perceived deterioration in their
credit quality. Credit spreads may increase, which may reduce the market values
of the Fund’s securities. Credit spread risk is the risk that economic and
market conditions or any actual or perceived credit deterioration may lead to an
increase in the credit spreads (i.e., the difference in yield between two
securities of similar maturity but different credit quality) and a decline in
price of the issuer’s securities.
General
Market Risk. Economies
and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in
general
financial markets, a particular financial market or other asset classes due to a
number of factors, including inflation (or expectations for inflation),
deflation (or expectations for deflation), interest rates, global demand for
particular products or resources, market instability, financial system
instability, debt crises and downgrades, embargoes, tariffs, sanctions and other
trade barriers, regulatory events, other governmental trade or market control
programs and related geopolitical events. In addition, the value of the Fund’s
investments may be negatively affected by the occurrence of global events such
as war, terrorism, environmental disasters, natural disasters or events, country
instability, and infectious disease epidemics or pandemics.
Asset-Backed,
Mortgage-Related and Mortgage-Backed Securities Risk.
Mortgage-related and asset-backed securities are subject to certain other risks,
including prepayment and call risks. During periods of difficult or frozen
credit markets, significant changes in interest rates, or deteriorating economic
conditions, mortgage-related and asset-backed securities may decline in value,
face valuation difficulties, become more volatile and/or become illiquid. When
mortgages and other obligations are prepaid and when securities are called, the
Fund may have to reinvest in securities with a lower yield or fail to recover
additional amounts (i.e., premiums) paid for securities with higher interest
rates, resulting in an unexpected capital loss and/or a decrease in the amount
of dividends and yield. In periods of either rising or declining interest rates,
the Fund may be subject to extension risk, and may receive principal later than
expected. As a result, in periods of rising interest rates, the Fund may exhibit
additional volatility. Additionally, asset-backed, mortgage-related and
mortgage-backed securities are subject to risks associated with their structure
and the nature of the assets underlying the securities and the servicing of
those assets. Certain asset-backed, mortgage-related and mortgage-backed
securities may face valuation difficulties and may be less liquid than other
types of asset-backed, mortgage-related and mortgage-backed securities, or debt
securities.
Government
Securities Risk. The Fund
invests in securities issued or guaranteed by the U.S. government or its
agencies and instrumentalities (such as securities issued by the Government
National Mortgage Association (Ginnie Mae), the Federal National Mortgage
Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie
Mac)). U.S. government securities are subject to market risk, interest rate risk
and credit risk. Securities, such as those issued or guaranteed by Ginnie Mae or
the U.S. Treasury, that are backed by the full faith and credit of the United
States are guaranteed only as to the timely payment of interest and principal
when held to maturity and the market prices for such securities will fluctuate.
Notwithstanding that these securities are backed by the full faith and credit of
the United States, circumstances could arise that would prevent the payment of
interest or principal. This would result in losses to the Fund. Securities
issued or guaranteed by U.S. government related organizations, such as Fannie
Mae and Freddie Mac, are not backed by the full faith
2 | J.P.
Morgan Money Market Funds
and credit of
the U.S. government and no assurance can be given that the U.S. government would
provide financial support. Therefore, U.S. government-related organizations may
not have the funds to meet their payment obligations in the future.
Municipal
Obligations Risk. The risk of
a municipal obligation generally depends on the financial and credit status of
the issuer. Changes in a municipality’s financial health may make it difficult
for the municipality to make interest and principal payments when due. This
could decrease the Fund’s income or hurt the ability to preserve capital and
liquidity.
Under some
circumstances, municipal obligations might not pay interest unless the state
legislature or municipality authorizes money for that purpose. Some obligations,
including municipal lease obligations, carry additional risks.
Municipal
obligations may be more susceptible to downgrades or defaults during recessions
or similar periods of economic stress. In addition, since some municipal
obligations may be secured or guaranteed by banks and other institutions, the
risk to the Fund could increase if the banking or financial sector suffers an
economic downturn and/or if the credit ratings of the institutions issuing the
guarantee are downgraded or at risk of being downgraded by a national rating
organization. Such a downward revision or risk of being downgraded may have an
adverse effect on the market prices of the obligations and thus the value of the
Fund’s investments. To the extent that the financial institutions securing the
municipal obligations are located outside the U.S., these securities could be
riskier than those backed by U.S. institutions because of possible political,
social or economic instability, higher transaction costs, currency fluctuations,
and possible delayed settlement.
In addition
to being downgraded, an insolvent municipality may file for bankruptcy. The
reorganization of a municipality’s debts may significantly affect the rights of
creditors and the value of the obligations issued by the municipality and the
value of the Fund’s investments.
When-Issued,
Delayed Settlement and Forward Commitment Transactions Risk. The Fund may
purchase or sell securities which it is eligible to purchase or sell on a
when-issued basis, may purchase and sell such securities for delayed delivery
and may make contracts to purchase or sell such securities for a fixed price at
a future date beyond normal settlement time (forward commitments). When-issued
transactions, delayed delivery purchases and forward commitments involve the
risk that the security the Fund buys will lose value prior to its delivery.
There also is the risk that the security will not be issued or that the other
party to the transaction will not meet its obligation. If this occurs, the Fund
loses both the investment opportunity for the assets it set aside to pay for the
security and any gain in the security’s price.
LIBOR
Discontinuance and Unavailability Risk. The London Interbank
Offering Rate (“LIBOR”) was a leading floating rate benchmark used in loans,
notes, derivatives and
other
instruments and
investments.
As a
result
of benchmark
reforms,
publication of most LIBOR
settings has ceased.
Some LIBOR
settings continue to be published but
only on a
temporary,
synthetic and
non-representative basis. Regulated entities have generally ceased entering into
new LIBOR contracts in connection with regulatory guidance or prohibitions.
Public and private sector actors have worked to establish alternative reference
rates to be used in place of LIBOR. There is no assurance that any such
alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that it will have the same volume or liquidity
as did LIBOR which may affect the value, volatility, liquidity or return on
certain of the
Fund's loans,
notes, derivatives and other instruments or investments comprising some or all
of the Fund's investments and result in costs incurred in connection with
changing reference rates used for positions, closing out positions and entering
into new trades. Certain of the Fund's investments may have transitioned from
LIBOR or will transition from LIBOR in the future. The transition from LIBOR to
alternative reference rates may result in operational issues for the Fund or its
investments. No assurances can be given as to the impact of the LIBOR transition
(and the timing of any such impact) on the Fund and its
investments.
Risk of
Regulation of Money Market Funds. The SEC has
adopted
amendments to
the rules that govern money market funds. These amendments
may affect the
Fund's investment strategies, performance, yield, expenses, operations and
continued viability.
Transactions
Risk. The Fund
could experience a loss and its liquidity may be negatively impacted when
selling securities to meet redemption requests. The risk of loss increases if
the redemption requests are unusually large or frequent or occur in times of
overall market turmoil or declining prices. Similarly, large purchases of Fund
shares may adversely affect the Fund’s performance to the extent that the Fund
is delayed in investing new cash and is required to maintain a larger cash
position than it ordinarily would.
Concentration
Risk. Because the
Fund will, under ordinary circumstances, invest a significant portion of its
assets in securities of companies in the financial services industry,
developments affecting the financial services industry may have a
disproportionate impact on the Fund. These risks generally include interest rate
risk, credit risk and risk associated with regulatory changes in the financial
services industry. In addition, financial services companies are highly
dependent on the supply of short-term financing.
Foreign
Securities Risk. Because the
Fund may invest in foreign securities, it is subject to special risks in
addition to those applicable to U.S. investments. These risks include political
and economic risks, civil conflicts and war, greater volatility, expropriation
and nationalization risks, sanctions or other measures by the United States or
other governments, currency fluctuations, higher transaction costs, delayed
settlement, possible foreign controls on investment, and less stringent investor
protection and disclosure standards of foreign markets. The
June
21, 2024 | 3
JPMorgan
Prime Money Market Fund
(continued)
securities
markets of many foreign countries are relatively small, with a limited number of
companies representing a small number of industries. In certain markets where
securities and other instruments are not traded “delivery versus payment,” the
Fund may not receive timely payment for securities or other instruments it has
delivered or receive delivery of securities paid for and may be subject to
increased risk that the counterparty will fail to make payments or delivery when
due or default completely. Events and evolving conditions in certain economies
or markets may alter the risks associated with investments tied to countries or
regions that historically were perceived as comparatively stable becoming
riskier and more volatile.
Industry
and Sector Focus Risk. At times, the Fund may
increase the relative emphasis of its investments in a particular industry or
sector. The prices of securities of issuers in a particular industry or sector
may be more susceptible to fluctuations due to changes in economic or business
conditions, government regulations, availability of basic resources or supplies,
contagion risk within a particular industry or sector or to other industries or
sectors, or other events that affect that industry or sector more than
securities of issuers in other industries and sectors. To the extent that the
Fund increases the relative emphasis of its investments in a particular industry
or sector, the value of the Fund’s shares may fluctuate in response to events
affecting that industry or sector.
Floating
and Variable Rate Securities Risk. Floating and
variable rate securities provide for a periodic adjustment in the interest rate
paid on the securities. The rate adjustment intervals may be regular and range
from daily up to annually, or may be based on an event, such as a change in the
prime rate. Floating and variable rate securities may be subject to greater
liquidity risk than other debt securities, meaning that there may be limitations
on the Fund’s ability to sell the securities at any given time. Such securities
also may lose value.
Repurchase
Agreement Risk. There is a
risk that the counterparty to a repurchase agreement will default or otherwise
become unable to honor a financial obligation and the value of your investment
could decline as a result.
Risk
Associated with the Fund Holding Cash. The Fund will
generally hold a portion of its assets in cash, primarily to meet redemptions.
Cash positions may hurt performance and may subject the Fund to additional risks
and costs, such as increased exposure to the custodian bank holding the assets
and any fees imposed for large cash balances.
Prepayment
Risk. The issuer of
certain securities may repay principal in advance, especially when yields fall.
Changes in the rate at which prepayments occur can affect the return on
investment of these securities. When debt obligations are prepaid or when
securities are called, the Fund may have to reinvest in securities with a lower
yield. The Fund also may fail to recover additional amounts (i.e., premiums)
paid for securities with higher coupons, resulting in an unexpected capital
loss.
Privately
Placed Securities Risk. Privately
placed securities generally are less liquid than publicly traded securities and
the Fund may not always be able to sell such securities without experiencing
delays in finding buyers or reducing the sale price for such securities. The
disposition of some of the securities held by the Fund may be restricted under
federal securities laws. As a result, the Fund may not be able to dispose of
such investments at a time when, or at a price at which, it desires to do so and
may have to bear expenses of registering these securities, if necessary. These
securities may also be difficult to value.
Investments
in the Fund are not deposits or obligations of, or guaranteed or endorsed by,
any bank and are not insured or guaranteed by the FDIC, the Federal Reserve
Board or any other government agency.
It is possible to lose money by investing
in the Fund.
The
Fund’s Past Performance
This section
provides some indication of the risks of investing in the Fund. The bar chart
shows how the performance of the Fund’s
Empower Shares has varied from year to year for the past ten calendar years. The
table shows the average annual total returns for the past one year, five years
and ten years. The
performance
of Empower Shares is based on the performance of Capital Shares (which are not
offered in this prospectus) prior to the inception of the Empower
Shares.
To obtain
current yield information call 1-800-766-7722.
Past
performance
is not necessarily an indication of how the Fund will perform in the
future.
|
YEAR-BY-YEAR
RETURNS |
|
Best
Quarter |
4th
quarter, 2023 |
1.41% |
|
Worst
Quarter |
4th
quarter, 2020 |
0.00% |
|
The
Fund’s year-to-date total return |
through |
3/31/24 |
was |
1.31% |
. |
4 | J.P.
Morgan Money Market Funds
|
AVERAGE
ANNUAL TOTAL RETURNS
(For
periods ended December 31, 2023) | |||
|
|
Past
1
Year |
Past
5
Years |
Past
10
Years |
|
EMPOWER
SHARES |
5.25
% |
1.97
% |
1.36
% |
Management
J.P. Morgan
Investment Management Inc. (the adviser)
Purchase
and Sale of Fund Shares
The Fund’s
Empower Shares provide minority-, veteran-, and woman-owned Financial
Intermediaries that have entered into arrangements with JPMorgan Distribution
Services, Inc. and/or J.P. Morgan Investment Management Inc. (“MVW Financial
Intermediaries”) with a revenue opportunity (“Empower Shares Program”). The
Fund’s Empower Shares may be purchased through MVW Financial Intermediaries,
either directly from the Fund or through an electronic-trading platform
sponsored by JPMorgan or its affiliates, by referral from a MVW Financial
Intermediary, or through other financial intermediaries platforms for which
JPMIM has contracted with MVW Financial Intermediaries to provide marketing
support services (“Approved Financial Intermediaries”).
Purchase
minimums
|
For
Empower Shares |
|
|
To
establish a regular account |
$50,000,000 |
|
To
add to an account |
No
minimum |
Tax
Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital
gains, except when your investment is in an IRA, 401(k) plan or other
tax-advantaged investment plan, in which case you may be subject to federal
income tax upon withdrawal from the tax-advantaged investment plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the financial
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or financial
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary’s website for more
information.
June
21, 2024 | 5
JPMorgan
100% U.S. Treasury Securities Money Market Fund
Class/Ticker:
Empower/EJTXX
The
Fund’s Objective
The Fund aims
to provide the highest possible level of current income while still maintaining
liquidity and providing maximum safety of principal.
Fees
and Expenses of the Fund
The following
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the table and
examples below.
|
ANNUAL
FUND OPERATING EXPENSES
(Expenses
that you pay each year as a percentage of the value
of
your investment) | |
|
|
Empower |
|
Management
Fees |
0.08% |
|
Other
Expenses |
0.10 |
|
Service
Fees |
0.05 |
|
Remainder
of Other Expenses |
0.05 |
|
Total
Annual Fund Operating Expenses |
0.18 |
Example
This Example 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 that you invest $10,000 in the Fund for
the time periods indicated. The Example also assumes that your investment has a
5% return each year and that the Fund’s operating expenses remain the same. Your
actual costs may be higher or lower.
|
WHETHER
OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD
BE: | ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
EMPOWER
SHARES ($) |
18 |
58 |
101 |
230 |
The
Fund’s Main Investment Strategy
Under normal
conditions, the Fund invests its assets exclusively in obligations of the U.S.
Treasury, including Treasury bills, bonds and notes.
These
investments carry different interest rates, maturities and issue dates. The
interest on these securities is generally exempt from state and local income
taxes. Ordinarily, the Fund does not buy securities issued or guaranteed by
agencies of the U.S. government.
The Fund is a
money market fund managed in the following manner:
●
The Fund
seeks to maintain a net asset value (“NAV”) of $1.00 per share.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund will
generally hold a portion of its assets in cash, primarily to meet
redemptions.
The Fund intends to continue
to qualify as a “government money market fund,” as such term is defined in or
interpreted under Rule 2a-7 under the Investment Company Act of 1940, as amended
(“Investment Company Act”). “Government money market funds” are required to
invest at least 99.5% of their assets in (i) cash, (ii) securities issued or
guaranteed by the United States or certain U.S. government agencies or
instrumentalities and/or (iii) repurchase agreements that are collateralized
fully, and are exempt from requirements that permit money market funds to impose
a liquidity fee. While the J.P. Morgan Funds’ Board of Trustees (the “Board”)
may elect to subject the Fund to liquidity fee requirements in the future, the
Board has not elected to do so at this time. A government money market fund may
also include investments in other government money market funds as an eligible
investment for purposes of the 99.5% requirement above.
The Fund’s
adviser seeks to develop an appropriate portfolio by considering the differences
in yields among securities of different maturities and issue dates.
The
Fund’s Main Investment Risks
The Fund is
subject to management risk and the Fund may not achieve its objective if the
adviser’s expectations regarding particular instruments or interest rates are
not met.
You could lose money by
investing in the Fund.
Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
cannot guarantee it will do so.
An investment in
the Fund is not a bank account and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The Fund’s
sponsor is not required to reimburse the Fund for losses, and you should not
expect that the sponsor will provide financial support to the Fund at any time,
including during periods of market stress.
6 | J.P.
Morgan Money Market Funds
An
investment in this Fund or any other fund may not provide a complete investment
program. The suitability of an investment in the Fund should be considered based
on the investment objective, strategies and risks described in this prospectus,
considered in light of all of the other investments in your portfolio, as well
as your risk tolerance, financial goals and time horizons. You may want to
consult with a financial advisor to determine if this Fund is suitable for
you.
The Fund is
subject to the main risks noted below, any of which may adversely affect the
Fund’s performance and ability to meet its investment objective.
Interest
Rate Risk. The
Fund’s investments in bonds and other debt securities will change in value based
on changes in interest rates. If rates increase, the value of these investments
generally declines. Securities with greater interest rate sensitivity and longer
maturities generally are subject to greater fluctuations in value. The Fund may
invest in variable and floating rate securities. Although these instruments are
generally less sensitive to interest rate changes than fixed rate instruments,
the value of floating rate and variable securities may decline if their interest
rates do not rise as quickly, or as much, as general interest rates. The Fund
may face a heightened level of interest rate risk due to certain changes in
monetary policy. It is difficult to predict the pace at which central banks or
monetary authorities may change interest rates or the timing, frequency, or
magnitude of such changes. Any such changes could be sudden and could expose
debt markets to significant volatility and reduced liquidity for Fund
investments.
Credit
Risk. The Fund’s
investments are subject to the risk that issuers and/or counterparties will fail
to make payments when due or default completely. Prices of the Fund’s
investments may be adversely affected if any of the issuers or counterparties it
is invested in are subject to an actual or perceived deterioration in their
credit quality. Credit spreads may increase, which may reduce the market values
of the Fund’s securities. Credit spread risk is the risk that economic and
market conditions or any actual or perceived credit deterioration may lead to an
increase in the credit spreads (i.e., the difference in yield between two
securities of similar maturity but different credit quality) and a decline in
price of the issuer’s securities.
General
Market Risk. Economies
and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including inflation (or expectations
for inflation), deflation (or expectations for deflation), interest rates,
global demand for particular products or resources, market instability,
financial system instability, debt crises and downgrades, embargoes, tariffs,
sanctions and other trade barriers, regulatory events, other governmental trade
or
market
control programs and related geopolitical events. In addition, the value of the
Fund’s investments may be negatively affected by the occurrence of global events
such as war, terrorism, environmental disasters, natural disasters or events,
country instability, and infectious disease epidemics or pandemics.
Government
Securities Risk. U.S.
government securities are subject to market risk, interest rate risk and credit
risk. Securities, such as those issued or guaranteed by the U.S. Treasury, that
are backed by the full faith and credit of the United States are guaranteed only
as to the timely payment of interest and principal when held to maturity and the
market prices for such securities will fluctuate. Notwithstanding that these
securities are backed by the full faith and credit of the United States,
circumstances could arise that would prevent the payment of interest or
principal. This would result in losses to the Fund. U.S. government securities
include zero coupon securities, which tend to be subject to greater market risk
than interest-paying securities of similar maturities.
Risk of
Regulation of Money Market Funds. The SEC has
adopted
amendments to
the rules that govern money market funds. These amendments
may affect the
Fund's investment strategies, performance, yield, expenses, operations and
continued viability.
Transactions
Risk. The Fund
could experience a loss and its liquidity may be negatively impacted when
selling securities to meet redemption requests. The risk of loss increases if
the redemption requests are unusually large or frequent or occur in times of
overall market turmoil or declining prices. Similarly, large purchases of Fund
shares may adversely affect the Fund’s performance to the extent that the Fund
is delayed in investing new cash and is required to maintain a larger cash
position than it ordinarily would.
Net
Asset Value Risk. There is no
assurance that the Fund will meet its investment objective of maintaining a net
asset value of $1.00 per share on a continuous basis. Furthermore, there can be
no assurance that the Fund’s affiliates will purchase distressed assets from the
Fund, make capital infusions, enter into capital support agreements or take
other actions to ensure that the Fund maintains a net asset value of $1.00 per
share. In the event any money market fund fails to maintain a stable net asset
value, other money market funds, including the Fund, could face a universal risk
of increased redemption pressures, potentially jeopardizing the stability of
their net asset values. In general, certain other money market funds have in the
past failed to maintain stable net asset values and there can be no assurance
that such failures and resulting redemption pressures will not occur in the
future.
Risk
Associated with the Fund Holding Cash. The Fund will
generally hold a portion of its assets in cash, primarily to meet redemptions.
Cash positions may hurt performance and may subject the Fund to additional risks
and costs, such as increased exposure to the custodian bank holding the assets
and any fees imposed for large cash balances.
June
21, 2024 | 7
JPMorgan
100% U.S. Treasury Securities Money Market Fund
(continued)
Prepayment
Risk. The issuer of
certain securities may repay principal in advance, especially when yields fall.
Changes in the rate at which prepayments occur can affect the return on
investment of these securities. When debt obligations are prepaid or when
securities are called, the Fund may have to reinvest in securities with a lower
yield. The Fund also may fail to recover additional amounts (i.e., premiums)
paid for securities with higher coupons, resulting in an unexpected capital
loss.
Investments
in the Fund are not deposits or obligations of, or guaranteed or endorsed by,
any bank and are not insured or guaranteed by the FDIC, the Federal Reserve
Board or any other government agency.
Although the Fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose money by
investing in the Fund.
The
Fund’s Past Performance
This section
provides some indication of the risks of investing in the Fund. The bar chart
shows how the performance of the Fund’s
Empower Shares has varied from year to year for the past ten calendar years. The
table shows the average annual total returns for the past one year, five years
and ten years. The
performance
of Empower Shares is based on the performance of Capital Shares (which are not
offered in this prospectus) prior to the inception of the Empower
Shares.
To obtain
current yield information call 1-800-766-7722.
Past
performance
is not necessarily an indication of how the Fund will perform in the
future.
|
YEAR-BY-YEAR
RETURNS |
|
Best
Quarter |
4Q,
2023 |
1.33% |
|
Worst
Quarter |
1Q,
2Q, 3Q and 4Q 2014
1Q,
2Q, 3Q and 4Q 2015
4Q
2020
1Q,
2Q, 3Q and |
0.00% |
|
|
4Q
2021 | |
|
The
Fund’s year-to-date total return |
through |
3/31/24 |
was |
1.30% |
. |
|
AVERAGE
ANNUAL TOTAL RETURNS
(For
periods ended December 31, 2023) | |||
|
|
Past
1
Year |
Past
5
Years |
Past
10
Years |
|
EMPOWER
SHARES |
4.95
% |
1.74
% |
1.13
% |
Management
J.P. Morgan
Investment Management Inc. (the adviser)
8 | J.P.
Morgan Money Market Funds
Purchase
and Sale of Fund Shares
The Fund’s
Empower Shares provide minority-, veteran-, and woman-owned Financial
Intermediaries that have entered into arrangements with JPMorgan Distribution
Services, Inc. and/or J.P. Morgan Investment Management Inc. (“MVW Financial
Intermediaries”) with a revenue opportunity (“Empower Shares Program”). The
Fund’s Empower Shares may be purchased through MVW Financial Intermediaries,
either directly from the Fund or through an electronic-trading platform
sponsored by JPMorgan or its affiliates, by referral from a MVW Financial
Intermediary, or through other financial intermediaries platforms for which
JPMIM has contracted with MVW Financial Intermediaries to provide marketing
support services (“Approved Financial Intermediaries”).
Purchase
minimums
|
For
Empower Shares |
|
|
To
establish a regular account |
$50,000,000 |
|
To
add to an account |
No
minimum |
Tax
Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital
gains, except when your investment is in an IRA, 401(k) plan or other
tax-advantaged investment plan, in which case you may be subject to federal
income tax upon withdrawal from the tax-advantaged investment plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the financial
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or financial
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary’s website for more
information.
June
21, 2024 | 9
JPMorgan
U.S. Government Money Market Fund
|
| |
|
|
Empower |
|
Management
Fees |
|
|
Other
Expenses |
|
|
Service
Fees |
|
|
Remainder
of Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
EMPOWER
SHARES ($) |
|
|
|
|
The Fund is
subject to management risk and the Fund may not achieve its objective if the
adviser’s expectations regarding particular instruments or interest rates are
not met.
10 | J.P.
Morgan Money Market Funds
An
investment in this Fund or any other fund may not provide a complete investment
program. The suitability of an investment in the Fund should be considered based
on the investment objective, strategies and risks described in this prospectus,
considered in light of all of the other investments in your portfolio, as well
as your risk tolerance, financial goals and time horizons. You may want to
consult with a financial advisor to determine if this Fund is suitable for
you.
The Fund is
subject to the main risks noted below, any of which may adversely affect the
Fund’s performance and ability to meet its investment objective.
June
21, 2024 | 11
JPMorgan
U.S. Government Money Market Fund
(continued)
12 | J.P.
Morgan Money Market Funds
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |||
|
|
Past
1
Year |
Past
5
Years |
Past
10
Years |
|
EMPOWER
SHARES |
% |
% |
% |
Management
J.P. Morgan
Investment Management Inc. (the adviser)
Purchase
and Sale of Fund Shares
The Fund’s
Empower Shares provide minority-, veteran-, and woman-owned Financial
Intermediaries that have entered into arrangements with JPMorgan Distribution
Services, Inc. and/or J.P. Morgan Investment Management Inc. (“MVW Financial
Intermediaries”) with a revenue opportunity (“Empower Shares Program”). The
Fund’s Empower Shares may be purchased through MVW Financial Intermediaries,
either directly from the Fund or through an electronic-trading platform
sponsored by JPMorgan or its affiliates, by referral from a MVW Financial
Intermediary, or through other financial intermediaries platforms for which
JPMIM has contracted with MVW Financial Intermediaries to provide marketing
support services (“Approved Financial Intermediaries”).
Purchase
minimums
|
For
Empower Shares |
|
|
To
establish a regular account |
$50,000,000 |
|
To
add to an account |
No
minimum |
Tax
Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital
gains, except when your investment is in an IRA, 401(k) plan or other
tax-advantaged investment plan, in which case you may be subject to federal
income tax upon withdrawal from the tax-advantaged investment plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the financial
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or financial
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary’s website for more
information.
June
21, 2024 | 13
JPMorgan
U.S. Treasury Plus Money Market Fund
|
| |
|
|
Empower |
|
Management
Fees |
|
|
Other
Expenses |
|
|
Service
Fees |
|
|
Remainder
of Other Expenses |
|
|
Total
Annual Fund Operating Expenses |
|
|
| ||||
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
EMPOWER
SHARES ($) |
|
|
|
|
The Fund is
subject to management risk and the Fund may not achieve its objective if the
adviser’s expectations regarding particular instruments or interest rates are
not met.
14 | J.P.
Morgan Money Market Funds
An
investment in this Fund or any other fund may not provide a complete investment
program. The suitability of an investment in the Fund should be considered based
on the investment objective, strategies and risks described in this prospectus,
considered in light of all of the other investments in your portfolio, as well
as your risk tolerance, financial goals and time horizons. You may want to
consult with a financial advisor to determine if this Fund is suitable for
you.
The Fund is
subject to the main risks noted below, any of which may adversely affect the
Fund’s performance and ability to meet its investment objective.
June
21, 2024 | 15
JPMorgan
U.S. Treasury Plus Money Market Fund
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |||
|
|
Past
1
Year |
Past
5
Years |
Past
10
Years |
|
EMPOWER
SHARES |
% |
% |
% |
Management
J.P. Morgan
Investment Management Inc. (the adviser)
16 | J.P.
Morgan Money Market Funds
Purchase
and Sale of Fund Shares
The Fund’s
Empower Shares provide minority-, veteran-, and woman-owned Financial
Intermediaries that have entered into arrangements with JPMorgan Distribution
Services, Inc. and/or J.P. Morgan Investment Management Inc. (“MVW Financial
Intermediaries”) with a revenue opportunity (“Empower Shares Program”). The
Fund’s Empower Shares may be purchased through MVW Financial Intermediaries,
either directly from the Fund or through an electronic-trading platform
sponsored by JPMorgan or its affiliates, by referral from a MVW Financial
Intermediary, or through other financial intermediaries platforms for which
JPMIM has contracted with MVW Financial Intermediaries to provide marketing
support services (“Approved Financial Intermediaries”).
Purchase
minimums
|
For
Empower Shares |
|
|
To
establish a regular account |
$50,000,000 |
|
To
add to an account |
No
minimum |
Tax
Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital
gains, except when your investment is in an IRA, 401(k) plan or other
tax-advantaged investment plan, in which case you may be subject to federal
income tax upon withdrawal from the tax-advantaged investment plan.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Fund through a broker-dealer or other financial
intermediary, the Fund and its related companies may pay the financial
intermediary for the sale of Fund shares and related services. These payments
may create a conflict of interest by influencing the broker-dealer or financial
intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediary’s website for more
information.
June
21, 2024 | 17
More
About the Funds
Additional
Information About the Funds’ Investment Strategies
Prime
Money Market Fund
The Fund
invests in high quality, short-term money market instruments which are issued
and payable in U.S. dollars. The Fund principally invests in:
●
high quality
commercial paper and other short-term debt securities, including floating and
variable rate demand notes of U.S. and foreign corporations,
●
debt
securities issued or guaranteed by qualified U.S. and foreign banks, including
certificates of deposit, time deposits and other short-term
securities,
●
securities
issued or guaranteed by the U.S. government, its agencies or instrumentalities
or Government-Sponsored Enterprises (“GSEs”),
●
asset-backed
securities,
●
repurchase
agreements, and
●
taxable
municipal obligations.
The Fund is a
money market fund managed in the following manner:
●
The Fund
calculates its net asset value to four decimals (e.g., $1.0000) using
market-based pricing and operates with a floating net asset value.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund
invests only in U.S. dollar-denominated securities.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund may
invest significantly in securities with floating or variable rates of interest.
Their yields will vary as interest rates change. The securities in which the
Fund may invest include privately placed securities. The Fund will generally
hold a portion of its assets in cash, primarily to meet redemptions.
The Fund will
concentrate its investments in the banking industry. Therefore, under normal
conditions, the Fund will invest at least 25% of its total assets in securities
issued by companies in the banking industry. The Fund
may, however, invest less than 25% of its total assets
in this industry as a temporary defensive measure.
The Fund may
trade securities on a when-issued, delayed settlement or forward commitment
basis. The Fund’s adviser seeks to develop an appropriate portfolio by
considering the differences in yields among securities of different maturities,
market sectors and issuers.
Liquidity
Fees
The Fund’s policies and
procedures permit the Fund
to impose
a
discretionary
liquidity fee on redemptions of up to 2% of the value of the shares redeemed if
the adviser, as the delegate of the Board, determines it is in the best
interests of the Fund.
100%
U.S. Treasury Securities Money Market Fund
Under normal
conditions, the Fund invests its assets exclusively in obligations of the U.S.
Treasury, including Treasury bills, bonds and notes.
These
investments carry different interest rates, maturities and issue dates. The
interest on these securities is generally exempt from state and local income
taxes. Ordinarily, the Fund does not buy securities issued or guaranteed by
agencies of the U.S. government.
The Fund is a
money market fund managed in the following manner:
●
The Fund
seeks to maintain a net asset value (“NAV”) of $1.00 per share.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund will
generally hold a portion of its assets in cash, primarily to meet
redemptions.
18 | J.P.
Morgan Money Market Funds
The Fund intends to continue
to qualify as a “government money market fund,” as such term is defined in or
interpreted under Rule 2a-7 under the Investment Company Act of 1940, as amended
(“Investment Company Act”). “Government money market funds” are required to
invest at least 99.5% of their assets in (i) cash, (ii) securities issued or
guaranteed by the United States or certain U.S. government agencies or
instrumentalities and/or (iii) repurchase agreements that are collateralized
fully, and are exempt from requirements that permit money market funds to impose
a liquidity fee. While the J.P. Morgan Funds’ Board of Trustees (the “Board”)
may elect to subject the Fund to liquidity fee requirements in the future, the
Board has not elected to do so at this time. A government money market fund may
also include investments in other government money market funds as an eligible
investment for purposes of the 99.5% requirement above.
The Fund’s
adviser seeks to develop an appropriate portfolio by considering the differences
in yields among securities of different maturities and issue dates.
U.S.
Government Money Market Fund
Under normal
conditions, the Fund invests its assets exclusively in:
●
debt
securities issued or guaranteed by the U.S. government, or by U.S. government
agencies or instrumentalities or Government-Sponsored Enterprises (“GSEs”),
and
●
repurchase
agreements fully collateralized by U.S. Treasury and U.S. government
securities.
The Fund is a
money market fund managed in the following manner:
●
The Fund
seeks to maintain a net asset value (“NAV”) of $1.00 per share.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund
invests only in U.S. dollar-denominated securities.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund may
invest significantly in securities with floating or variable rates of interest.
Their yields will vary as interest rates change. The Fund will generally hold a
portion of its assets in cash, primarily to meet redemptions.
The Fund intends to continue
to qualify as a “government money market fund,” as such term is defined in or
interpreted under Rule 2a-7 under the Investment Company Act of 1940, as amended
(“Investment Company Act”). “Government money market funds” are required to
invest at least 99.5% of their assets in (i) cash, (ii) securities issued or
guaranteed by the United States or certain U.S. government agencies or
instrumentalities and/or (iii) repurchase agreements that are collateralized
fully, and are exempt from requirements that permit money market funds to impose
a liquidity fee. While the J.P. Morgan Funds’ Board of Trustees (the “Board”)
may elect to subject the Fund to liquidity fee requirements in the future, the
Board has not elected to do so at this time. A government money market fund may
also include investments in other government money market funds as an eligible
investment for purposes of the 99.5% requirement above.
The Fund may
trade securities on a when-issued, delayed settlement or forward commitment
basis. The Fund’s adviser seeks to develop an appropriate portfolio by
considering the differences in yields among securities of different maturities,
market sectors and issuers.
U.S.
Treasury Plus Money Market Fund
Under normal
conditions, the Fund invests its assets exclusively in:
●
obligations
of the U.S. Treasury, including Treasury bills, bonds and notes and other
obligations issued or guaranteed by the U.S. Treasury, and
●
repurchase
agreements fully collateralized by U.S. Treasury securities.
The debt
securities described above carry different interest rates, maturities and issue
dates.
The Fund is a
money market fund managed in the following manner:
●
The Fund
seeks to maintain a net asset value (“NAV”) of $1.00 per share.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the
dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will
only buy securities that have remaining maturities of 397 days or less or
securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
June
21, 2024 | 19
More
About the Funds
(continued)
●
The Fund
invests only in U.S. dollar-denominated securities.
●
The Fund
seeks to invest in securities that present minimal credit risk.
The Fund will
generally hold a portion of its assets in cash, primarily to meet
redemptions.
The Fund intends to continue
to qualify as a “government money market fund,” as such term is defined in or
interpreted under Rule 2a-7 under the Investment Company Act of 1940, as amended
(“Investment Company Act”).“Government money market funds” are required to
invest at least 99.5% of their assets in (i) cash, (ii) securities issued or
guaranteed by the United States or certain U.S. government agencies or
instrumentalities and/or (iii) repurchase agreements that are collateralized
fully, and are exempt from requirements that permit money market funds to impose
a liquidity fee. While the J.P. Morgan Funds’ Board of Trustees (the “Board”)
may elect to subject the Fund to liquidity fee requirements in the future, the
Board has not elected to do so at this time. A government money market fund may
also include investments in other government money market funds as an eligible
investment for purposes of the 99.5% requirement above.
The Fund’s
adviser seeks to develop an appropriate portfolio by considering the differences
in yields among securities of different maturities and issue dates.
Each
of the Funds
Each Fund may
utilize these investment strategies to a greater or lesser degree.
Each Fund is
a money market fund managed to meet the requirements of Rule 2a-7 under the
Investment Company Act of 1940. Within these requirements, each Fund is managed
in the following manner:
●
The
dollar-weighted average maturity of each Fund will be 60 days or less, and the
dollar-weighted average life to maturity will be 120 days or less. For a
discussion of dollar weighted average maturity and dollar-weighted average life
to maturity, please see page 47.
●
Each Fund
will only buy securities that have remaining maturities of 397 days or less as
determined under Rule 2a-7.
●
Each Fund
invests only in U.S. dollar-denominated securities.
●
Each taxable Fund will not
acquire any security other than a daily liquid asset unless, immediately
following such purchase, at least 25% of its total assets would be invested in
daily liquid assets and each Fund will not acquire any security other than a
weekly liquid asset unless, immediately following such purchase, at least 50% of
its total assets would be invested in weekly liquid assets. “Daily liquid
assets” means (i) cash; (ii) direct obligations of the U.S. Government; (iii)
securities that will mature or are subject to a demand feature that is
exercisable and payable within one business day and (iv) amounts receivable and
due unconditionally within one business day on pending sales of portfolio
securities. “Weekly liquid assets” means (i) cash; (ii) direct obligations of
the U.S. Government; (iii) Government securities issued by a person controlled
or supervised by and acting as an instrumentality of the Government of the
United States pursuant to authority granted by the Congress of the United
States, that are issued at a discount to the principal amount to be repaid at
maturity without the provision for the payment of interest and have a remaining
maturity of 60 days or less; (iv) securities that will mature or are subject to
a demand feature that is exercisable and payable within five business days and
(v) amounts receivable and due unconditionally within five business days on
pending sales of portfolio securities.
●
Each Fund
seeks to invest in securities that present minimal credit risk. With regard to
the Prime Money Market Fund, these securities will:
●
have one of
the two highest short-term ratings from at least two of Standard & Poor’s
Corporation, Moody’s Investors Service, Inc. and Fitch Ratings, or one such
rating if only one of these rating organizations rates that
security;
●
have an
additional third party guarantee in order to meet the rating requirements;
or
●
be considered
of comparable quality by J.P. Morgan Investment Management Inc. (JPMIM), the
Funds’ adviser, if the security is not rated by Standard & Poor’s
Corporation, Moody’s Investors Service, Inc., or Fitch Ratings.
All of the
Funds that are permitted to invest in repurchase agreements may engage in
repurchase agreement transactions that are collateralized by cash or government
securities. The repurchase agreements in which the Funds invest may be with
counterparties with varying degrees of credit quality. The Prime Money Market
Fund may, in addition, engage in repurchase agreement transactions that are
collateralized by money market instruments, debt securities, loan participations
or other securities, including equity securities and securities that are rated
below investment grade by nationally recognized statistical rating organizations
or unrated securities of comparable quality. High yield securities (known as
junk bonds) are considered to be speculative and are subject to greater risk of
loss, greater sensitivity to interest rate and economic changes, valuation
difficulties and potential illiquidity.
The 100% U.S.
Treasury Securities Money Market Fund will provide shareholders with at least 60
days’ prior notice of any change to its policy to, under normal conditions,
invest its assets exclusively in obligations of the U.S. Treasury, including
Treasury bills, bonds and notes.
20 | J.P.
Morgan Money Market Funds
The adviser
also integrates financially material environmental, social and governance (ESG)
factors as part of the Fund's investment process (ESG Integration). ESG
Integration is the systematic inclusion of ESG issues in investment analysis and
investment decisions. As part of its security selection strategy, for each Fund
except the 100% U.S. Treasury Securities Money Market Fund, the adviser seeks to
assess the impact of ESG factors on many issuers in the universe in which the
Funds may invest. The adviser’s assessment is based on an analysis of key
opportunities and risks across industries to seek to identify financially
material issues with respect to the Funds’ investments in securities and
ascertain key issues that merit engagement with issuers. These assessments may
not be conclusive and securities of issuers that may be negatively impacted by
such factors may be purchased and retained by the Funds while the Funds may
divest or not invest in securities of issuers that may be positively impacted by
such factors. In particular, ESG Integration does not change the Funds’
investment objective, exclude specific types of industries or companies or limit
the Funds’ investable universe. The Funds are not designed for investors who
wish to screen out particular types of companies or investments or are looking
for Funds that meet specific ESG goals.
|
FUNDAMENTAL
INVESTMENT OBJECTIVES |
|
An
investment objective is fundamental if it cannot be changed without the
consent of a majority of the outstanding shares of the
Fund.
The investment objective for each of the U.S. Government Money Market Fund
and the U.S. Treasury Plus Money Market Fund
is
fundamental. The investment objective for each of the Prime Money Market
Fund and the 100% U.S. Treasury Securities Money
Market
Fund is non-fundamental and may be changed without the consent of a
majority of the outstanding shares of that
Fund. |
Please note
that the Funds also may use strategies that are not described in this section,
but which are described in the Statement of Additional Information.
Investment
Risks
There can be
no assurance that each Fund will achieve its investment objective.
The main
risks associated with investing in each Fund are summarized in the “Risk/Return
Summaries” at the front of this prospectus. In addition to each Fund’s main
risks, each Fund may be subject to additional risks in connection with
investments and strategies used by each Fund from time to time. The table below
identifies main risks and some of the additional risks for each
Fund.
Please note
that each Fund may also be subject to other risks that are described in the
Statement of Additional Information.
An
investment in a Fund or any other fund may not provide a complete investment
program. The suitability of an investment in a Fund should be considered based
on the investment objective, strategies and risks described in this prospectus,
considered in light of all of the other investments in your portfolio, as well
as your risk tolerance, financial goals and time horizons. You may want to
consult with a financial advisor to determine if a Fund is suitable for
you.
The Funds are
subject to the main risks designated as such in the table below, any of which
may adversely affect a Fund’s net asset value (NAV), market price, performance
and ability to meet its investment objective. Each Fund may also be subject to
additional risks that are noted in the table below, as well as those that are
not described herein but which are described in the Statement of Additional
Information.
June
21, 2024 | 21
More
About the Funds
(continued)
|
|
Prime
Money Market Fund |
100%
U.S. Treasury Securities Money Market Fund |
U.S.
Government Money Market Fund |
U.S.
Treasury Plus Money Market Fund |
|
Asia
Pacific Market Risk |
○ |
|
|
|
|
Asset-Backed,
Mortgage-Related and Mortgage-Backed Securities Risk |
• |
|
• |
|
|
Concentration
Risk |
• |
|
|
|
|
Credit
Risk |
• |
• |
• |
• |
|
Cyber
Security Risk |
○ |
○ |
○ |
○ |
|
European
Market Risk |
○ |
|
|
|
|
Floating
and Variable Rate Securities Risk |
• |
○ |
• |
○ |
|
Foreign
Securities Risk |
• |
|
|
|
|
General
Market Risk |
• |
• |
• |
• |
|
Geographic
Focus Risk |
○ |
|
|
|
|
Government
Securities Risk |
• |
• |
• |
• |
|
Industry
and Sector Focus Risk |
• |
|
|
|
|
Interest
Rate Risk |
• |
• |
• |
• |
|
Interfund
Lending Risk |
|
|
• |
|
|
Japan
Risk |
○ |
|
|
|
|
LIBOR
Discontinuance or Unavailability Risk |
• |
|
|
|
|
Municipal
Obligations Risk |
• |
|
|
|
|
Net
Asset Value Risk |
|
• |
• |
• |
|
Prepayment
Risk |
• |
• |
• |
• |
|
Privately
Placed Securities Risk |
• |
|
|
|
|
Regulatory
and Legal Risk |
○ |
○ |
○ |
○ |
|
Repurchase
Agreement Risk |
• |
|
• |
• |
|
Risk
Associated with the Fund Holding Cash |
• |
• |
• |
• |
|
Risk
of Regulation of Money Market Funds |
• |
• |
• |
• |
|
State
and Local Taxation Risk |
|
|
• |
|
|
Transactions
and Liquidity Risk |
• |
• |
• |
• |
|
Volcker
Rule Risk |
○ |
○ |
○ |
○ |
|
When-Issued,
Delayed Settlement and Forward Commitment Transactions
Risk |
• |
|
• |
|
●
Main
Risks
○
Additional
Risks
22 | J.P.
Morgan Money Market Funds
Interest
Rate Risk. The Funds
invest in debt securities that increase or decrease in value based on changes in
interest rates. If rates increase, the value of these investments generally
declines. On the other hand, if rates fall, the value of these investments
generally increases. Your investment will decline in value if the value of these
investments decreases. Securities with greater interest rate sensitivity and
longer maturities generally are subject to greater fluctuations in value. Each
Fund may invest in variable and floating rate securities. Although these
instruments are generally less sensitive to interest rate changes than fixed
rate instruments, the value of variable and floating rate securities may decline
if their interest rates do not rise as quickly, or as much, as general interest
rates. Many factors can cause interest rates to rise. Some examples include
central bank monetary policy, rising inflation rates and general economic
conditions. The Funds may face a heightened level of interest rate risk due to
certain changes or uncertainty in monetary policy.
Debt market conditions are
highly unpredictable and some parts of the market are subject to dislocations.
It is difficult to accurately predict the pace at which the Federal Reserve
Board will change interest rates any further, or the timing, frequency or
magnitude of any such changes, and the evaluation of macro-economic and other
conditions could cause a change in approach in the future. Any such changes
could be sudden and could expose debt markets to significant volatility and
reduced liquidity for Fund investments.
Credit
Risk. There is a
risk that the issuer and/or a counterparty to a security, contract, repurchase
agreement or other investment, will default or otherwise become unable to honor
a financial obligation. The risk of defaults across issuers and/or
counterparties increases in adverse market and economic conditions, including
the conditions resulting from the COVID-19 pandemic. The price and liquidity of
a security can also be adversely affected if either its credit status or the
market environment generally deteriorates and the probability of default rises.
The value of your investment could decline as a result of these events. Prices
of a Fund’s investments may be adversely affected if any of the issuers or
counterparties it is invested in are subject to an actual or perceived
deterioration in their credit quality. Credit spreads may increase, which may
reduce the market values of a Fund’s securities. Credit spread risk is the risk
that economic and market conditions or any actual or perceived credit
deterioration may lead to an increase in the credit spreads (i.e., the
difference in yield between two securities of similar maturity but different
credit quality) and a decline in price of the issuer’s securities.
General
Market Risk. Economies
and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one
country or region will adversely impact markets or issuers in other countries or
regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including inflation (or expectations
for inflation), deflation (or expectations for deflation), interest rates,
global demand for particular products or resources, market instability,
financial system instability, debt crises and downgrades, embargoes, tariffs,
sanctions and other trade barriers, regulatory events, other governmental trade
or market control programs and related geopolitical events. In addition, the
value of the Fund’s investments may be negatively affected by the occurrence of
global events such as war, terrorism, environmental disasters, natural disasters
or events, country instability, and infectious disease epidemics or
pandemics.
For example, the outbreak of
COVID-19 negatively affected economies, markets and individual companies
throughout the world, including those in which a Fund invests. The effects of
any future pandemic or other global event to public health and business and
market conditions, may have a significant negative impact on the performance of
the Fund’s investments, increase the Fund’s volatility, exacerbate pre-existing
political, social and economic risks to the Fund, and negatively impact broad
segments of businesses and populations. In addition, governments, their
regulatory agencies, or self-regulatory organizations have taken or may take
actions in response to a pandemic or other global event that affect the
instruments in which the Fund invests, or the issuers of such instruments, in
ways that could have a significant negative impact on the Fund’s investment
performance. The ultimate impact of any pandemic or other global event and the
extent to which the associated conditions and governmental responses impact a
Fund will also depend on future developments, which are highly uncertain,
difficult to accurately predict and subject to frequent changes.
Asset-Backed,
Mortgage-Related and Mortgage-Backed Securities Risk. Mortgage-related
and asset-backed securities differ from conventional debt securities and are
subject to certain additional risks because principal is paid back over the life
of the security rather than at maturity. The value of these securities will be
influenced by the factors affecting the housing market and the assets underlying
such securities. As a result, during periods of difficult or frozen credit
markets, significant changes in interest rates, or deteriorating economic
conditions, mortgage-related and asset-backed securities may decline in value,
face valuation difficulties, become more volatile and/or become illiquid.
Additionally, during such periods and also under normal conditions, these
securities are also subject to prepayment and call risk. Gains and losses
associated with prepayments will increase/decrease the income available for
distributions by a Fund and the Fund’s yield. When mortgages and other
obligations are prepaid and when securities are called, a Fund may have to
reinvest in securities with a lower yield or fail to recover additional amounts
(i.e., premiums) paid for securities with higher interest rates, resulting in an
unexpected capital loss and/or a decrease in the amount of dividends and yield.
In periods of either rising or declining interest rates, a Fund may be subject
to extension risk, and may receive principal later than expected. As a result,
in periods of rising interest rates, a Fund may exhibit additional volatility.
Some of these securities may receive little or no collateral protection from the
underlying assets and are thus subject to the risk of default described under
“Credit
Risk.”
June
21, 2024 | 23
More
About the Funds
(continued)
Additionally,
asset-backed, mortgage-related and mortgage-backed securities are subject to
risks associated with their structure and the nature of the assets underlying
the securities and the servicing of those assets. Certain asset-backed,
mortgage-related and mortgage-backed securities may face valuation difficulties
and may be less liquid than other types of asset-backed, mortgage-related and
mortgage-backed securities, or debt securities.
The mortgage
loans underlying privately issued mortgage-related securities may not be subject
to the same underwriting requirements for the underlying mortgages that are
applicable to those mortgage-related securities that have government or
government-sponsored entity guarantees. As a result, the mortgage loans
underlying privately issued mortgage-related securities may have less favorable
collateral, credit risk or other underwriting characteristics than government or
government-sponsored mortgage-related securities and have wider variances in a
number of terms including interest rate, term, size, purpose and borrower
characteristics. In addition, certain mortgage-related securities which may
include loans that originally qualified under standards established by
government-sponsored entities (for example, certain REMICs that include Fannie
Mae mortgages) are not considered as government securities for purposes of a
Fund’s investment strategies or policies. There is no government or
government-sponsored guarantee for such privately issued
investments.
Government
Securities Risk. U.S.
government securities include securities issued or guaranteed by the U.S.
government or its agencies and instrumentalities (such as securities issued by
the Government National Mortgage Association (Ginnie Mae), the Federal National
Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation
(Freddie Mac) or other Government-Sponsored Enterprises (GSEs)). U.S. government
securities are subject to market risk, interest rate risk and credit risk.
Securities, such as those issued or guaranteed by Ginnie Mae or the U.S.
Treasury, that are backed by the full faith and credit of the United States are
guaranteed only as to the timely payment of interest and principal when held to
maturity and the market prices for such securities will fluctuate.
Notwithstanding that these securities are backed by the full faith and credit of
the United States, circumstances could arise that would prevent the payment of
interest or principal. This would result in losses to a Fund. Securities issued
or guaranteed by U.S. government related organizations, such as Fannie Mae and
Freddie Mac, are not backed by the full faith and credit of the U.S. government
and no assurance can be given that the U.S. government will provide financial
support. Therefore, U.S. government related organizations may not have the funds
to meet their payment obligations in the future. U.S. government securities
include zero coupon securities, which tend to be subject to greater market risk
than interest-paying securities of similar maturities.
Risk of
Regulation of Money Market Funds. The SEC has adopted
amendments to the rules that govern money market funds. These
amendments
may affect a
Fund’s investment strategies, performance, yield, expenses, operations and
continued viability.
Transactions
and Liquidity Risk. A Fund could
experience a loss when selling securities to meet redemption requests, and its
liquidity may be negatively impacted. The risk of loss increases if the
redemption requests are large or frequent, occur in times of overall market
turmoil or declining prices for the securities sold, or when the securities a
Fund wishes to, or is required to, sell are illiquid. To the extent a large
proportion of shares of a Fund are held by a small number of shareholders (or a
single shareholder) including funds or accounts over which the adviser or its
affiliates have investment discretion, a Fund is subject to the risk that these
shareholders will purchase or redeem Fund shares in large amounts rapidly or
unexpectedly, including as a result of an asset allocation decision made by the
adviser or its affiliates. In addition to the other risks described in this
section, these transactions could adversely affect the ability of a Fund to
conduct its investment program. A Fund may be unable to sell illiquid securities
at its desired time or price or the price at which the securities have been
valued for purposes of the Fund’s net asset value (“NAV”). Illiquidity can be
caused by a drop in overall market trading volume, an inability to find a ready
buyer, or legal restrictions on the securities’ resale. Other market
participants may be attempting to sell debt securities at the same time as a
Fund, causing downward pricing pressure and contributing to illiquidity. The
capacity for bond dealers to engage in trading or “make a market” in debt
securities has not kept pace with the growth of bond markets. This could
potentially lead to decreased liquidity and increased volatility in the debt
markets. Liquidity and valuation risk may be magnified in a rising interest rate
environment, when credit quality is deteriorating or in other circumstances
where investor redemptions from fixed income mutual funds may be higher than
normal. Certain securities that were liquid when purchased may later become
illiquid, particularly in times of overall economic distress. Similarly, large
purchases of Fund shares may adversely affect a Fund’s performance to the extent
that the Fund is delayed in investing new cash and is required to maintain a
larger cash position than it ordinarily would. Large redemptions also could
accelerate the realization of capital gains, increase a Fund’s transaction costs
and impact a Fund’s performance.
Repurchase
Agreement Risk. There is a
risk that the counterparty to a repurchase agreement will default or otherwise
become unable to honor a financial obligation and the value of your investment
could decline as a result.
A repurchase
agreement is subject to the risk that the seller may fail to repurchase the
security. In the event of default by the seller under a repurchase agreement
construed to be a collateralized loan, the underlying securities would not be
owned by a Fund, but would only constitute collateral for the seller’s
obligation to pay the repurchase price. Therefore, a Fund may suffer time delays
and incur costs in connection with the disposition of the collateral. For
example, certain repurchase agreements a Fund may enter into may or may not be
subject to an automatic stay in bankruptcy proceedings. As a result of the
automatic stay, to the extent applicable,
24 | J.P.
Morgan Money Market Funds
a Fund could
be prohibited from selling the collateral in the event of a counterparty’s
bankruptcy unless the Fund is able to obtain the approval of the bankruptcy
court. In addition, to the extent that a repurchase agreement is secured by
collateral other than cash and government securities (“Non-Traditional
Collateral”), these risks may be magnified and the value of Non-Traditional
Collateral may be more volatile or less liquid thereby increasing the risk that
a Fund will be unable to recover fully in the event of a counterparty’s default.
High yield securities (known as junk bonds) are considered to be speculative and
are subject to greater risk of loss, greater sensitivity to interest rate and
economic changes, valuation difficulties and potential illiquidity.
Concentration
Risk. Because the
Prime Money Market Fund will, under ordinary circumstances, invest a significant
portion of its assets in securities of companies in the banking industry,
developments affecting the banking industry may have a disproportionate impact
on the Fund.
Foreign
Securities Risk. Because the
Funds may invest in foreign securities, they are subject to special risks in
addition to those applicable to U.S. investments. These risks include political
and economic risks, civil conflicts and war, greater volatility, expropriation
and nationalization risks, sanctions or other measures by the United States or
other governments, currency fluctuations, higher transaction costs, delayed
settlement, possible foreign controls on investment, and less stringent investor
protection and disclosure standards of foreign markets. The securities markets
of many foreign countries are relatively small, with a limited number of
companies representing a small number of industries. In certain markets where
securities and other instruments are not traded “delivery versus payment,” a
Fund may not receive timely payment for securities or other instruments it has
delivered or receive delivery of securities paid for and may be subject to
increased risk that the counterparty will fail to make payments or delivery when
due or default completely. Securities registration, custody, and settlement may
in some instances be subject to delays and legal and administrative
uncertainties. Foreign investment in the securities markets of certain foreign
countries is restricted or controlled to varying degrees. These restrictions or
controls may at times limit or preclude investment in certain securities and may
increase the costs and expenses of a Fund. In addition, the repatriation of
investment income, capital or the proceeds of sales of securities from certain
of the countries is controlled under regulations, including in some cases the
need for certain advance government notification or authority, and if a
deterioration occurs in a country’s balance of payments, the country could
impose temporary restrictions on foreign capital remittances. A Fund also could
be adversely affected by delays in, or a refusal to grant, any required
governmental approval for repatriation, as well as by the application to it of
other restrictions on investment. Events and evolving conditions in certain
economies or markets may alter the risks associated with investments tied to
countries or regions that historically were perceived as comparatively stable
becoming riskier and more volatile.
Industry
and Sector Focus Risk. At times, a
Fund may increase the relative emphasis of its investments in a particular
industry or sector. The prices of securities of issuers in a particular industry
or sector may be more susceptible to fluctuations due to changes in economic or
business conditions, government regulations, availability of basic resources or
supplies, contagion risk within a particular industry or sector or to other
industries or sectors, or other events that affect that industry or sector more
than securities of issuers in other industries and sectors. To the extent that a
Fund increases the relative emphasis of its investments in a particular industry
or sector, the value of the Fund’s shares may fluctuate in response to events
affecting that industry or sector.
Floating
and Variable Rate Securities Risk. Floating and
variable rate securities provide for a periodic adjustment in the interest rate
paid on the securities. The rate adjustment intervals may be regular and range
from daily up to annually, or may be based on an event, such as a change in the
prime rate. Floating and variable rate securities may be subject to greater
liquidity risk than other debt securities, meaning that there may be limitations
on a Fund’s ability to sell the securities at any given time. Such securities
also may lose value.
Net
Asset Value Risk. There is no
assurance that a Fund will maintain a stable net asset value of $1.00 per share
on a continuous basis. Furthermore, there can be no assurance that a Fund’s
affiliates will purchase distressed assets from a Fund, make capital infusions,
enter into capital support agreements or take other actions to ensure that a
Fund maintains a stable net asset value. In the event any money market fund
fails to maintain a stable net asset value, other money market funds, including
a Fund, could face a universal risk of increased redemption pressures,
potentially jeopardizing the stability of their net asset values. In general,
certain other money market funds have in the past failed to maintain stable net
asset values and there can be no assurance that such failures and resulting
redemption pressures will not occur in the future. The Prime Money Market Fund
will not maintain a stable NAV per share. The value of the Fund’s shares is
calculated to four decimal places and fluctuates with changes in the values of
the Fund’s portfolio securities.
Municipal
Obligations Risk. The risk of
a municipal obligation generally depends on the financial and credit status of
the issuer. Changes in a municipality’s financial health may make it difficult
for the municipality to make interest and principal payments when due. A number
of municipalities have had significant financial problems recently, and these
and other municipalities could, potentially, continue to experience significant
financial problems resulting from lower tax revenues and/or decreased aid from
state and local governments in the event of an economic downturn. This could
decrease a Fund’s income or hurt the ability to preserve capital and
liquidity.
June
21, 2024 | 25
More
About the Funds
(continued)
Under some
circumstances, municipal obligations might not pay interest unless the state
legislature or municipality authorizes money for that purpose. Some obligations,
including municipal lease obligations, carry additional risks. For example, they
may be difficult to trade or interest payments may be tied only to a specific
stream of revenue.
Municipal
obligations may be more susceptible to downgrades or defaults during recessions
or similar periods of economic stress. Factors contributing to the economic
stress on municipalities may include lower property tax collections as a result
of lower home values, lower sales tax revenue as a result of consumers cutting
back spending, and lower income tax revenue as a result of a higher unemployment
rate. In addition, since some municipal obligations may be secured or guaranteed
by banks and other institutions, the risk to a Fund could increase if the
banking or financial sector suffers an economic downturn and/or if the credit
ratings of the institutions issuing the guarantee are downgraded or at risk of
being downgraded by a national rating organization. If such events were to
occur, the value of the security could decrease or the value could be lost
entirely, and it may be difficult or impossible for a Fund to sell the security
at the time and the price that normally prevails in the market. Such a downward
revision or risk of being downgraded may have an adverse effect on the market
prices of the obligations and thus the value of a Fund’s investments. To the
extent that the financial institutions securing the municipal obligations are
located outside the U.S., these obligations could be riskier than those backed
by U.S. institutions because of possible political, social or economic
instability, higher transaction costs, currency fluctuations, and possible
delayed settlement.
In addition
to being downgraded, an insolvent municipality may file for bankruptcy. For
example, Chapter 9 of the Bankruptcy Code provides a financially distressed
municipality protection from its creditors while it develops and negotiates a
plan for reorganizing its debts. “Municipality” is defined broadly by the
Bankruptcy Code as a “political subdivision or public agency or instrumentality
of a state” and may include various issuers of obligations in which a Fund
invests. The reorganization of a municipality’s debts may include extending debt
maturities, reducing the amount of principal or interest, refinancing the debt
or taking other measures, which may significantly affect the rights of creditors
and the value of the obligations issued by the municipality and the value of a
Fund’s investments.
For some
Funds, there may be times that, in the opinion of the adviser, municipal money
market securities of sufficient quality are not available for a Fund to be able
to invest in accordance with its normal investment policies.
Interest on
municipal obligations, while generally exempt from federal income tax, may not
be exempt from federal alternative minimum tax.
Geographic
Focus Risk. A Fund may
focus its investments in one or more regions or small groups of countries. As a
result, the Fund’s performance may be subject to greater volatility than a more
geographically diversified fund and may be subject to the risks facing certain
regions.
When-Issued,
Delayed Settlement and Forward Commitment Transactions Risk. A Fund may
purchase or sell securities which it is eligible to purchase or sell on a
when-issued basis, may purchase and sell such securities for delayed delivery
and may make contracts to purchase or sell such securities for a fixed price at
a future date beyond normal settlement time (forward commitments). When-issued
transactions, delayed delivery purchases and forward commitments involve the
risk that the security a Fund buys will lose value prior to its delivery. There
also is the risk that the security will not be issued or that the other party to
the transaction will not meet its obligation. If this occurs, a Fund loses both
the investment opportunity for the assets it set aside to pay for the security
and any gain in the security’s price.
Risk
Associated with the Fund Holding Cash. A Fund will
generally hold a portion of its assets in cash, primarily to meet redemptions.
Cash positions may hurt performance and may subject a Fund to additional risks
and costs, such as increased exposure to the custodian bank holding the assets
and any fees imposed for large cash balances.
Prepayment
Risk. The issuer
of certain securities may repay principal in advance, especially when yields
fall. Changes in the rate at which prepayments occur can affect the return on
investment of these securities. When debt obligations are prepaid or when
securities are called, a Fund may have to reinvest in securities with a lower
yield. A Fund also may fail to recover additional amounts (i.e., premiums) paid
for securities with higher coupons, resulting in an unexpected capital
loss.
LIBOR
Discontinuance and Unavailability Risk. The London Interbank Offering
Rate (LIBOR) was a leading floating rate benchmark used in loans, notes,
derivatives and
other
instruments or
investments.
As a
result
of benchmark
reforms, publication of most LIBOR settings has ceased.
Some LIBOR
settings continue to be published but
only on a
temporary,
synthetic and
non-representative basis. Regulated entities have generally ceased entering into
new LIBOR contracts in connection with regulatory guidance or prohibitions.
Public and private sector actors have worked to establish alternative reference
rates to be used in place of LIBOR. There is no assurance that any such
alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that it will have the same volume or liquidity
as did LIBOR which may affect the value, volatility, liquidity or return on
certain of the Fund’s loans, notes, derivatives and other instruments or
investments comprising some or all of the Fund’s investments and result in costs
incurred in connection with changing reference rates used for positions, closing
out positions and entering into new trades. Certain of
26 | J.P.
Morgan Money Market Funds
the Fund’s investments may
have transitioned from LIBOR or will transition from LIBOR in the future. The
transition from LIBOR to alternative reference rates may result in operational
issues for the Fund or its investments. No assurances can be given as to the
impact of the LIBOR transition (and the timing of any such impact) on the Fund
and its investments.
Interfund
Lending Risk. A delay in
repayment to a Fund from a borrowing fund could result in lost opportunity
costs. Interfund loans are subject to the risk that the borrowing fund could be
unable to repay the loan when due. In the case of a default by a borrowing fund
and to the extent that the loan is collateralized, a Fund could take possession
of collateral that the Fund is not permitted to hold and, therefore, would be
required to dispose of such collateral as soon as possible, which could result
in a loss to the Fund. A Fund’s interfund lending arrangements are subject to
certain conditions under an SEC exemptive order. Although the conditions of the
SEC exemptive order are designed to minimize the risks associated with interfund
lending, no lending activity is without risk.
Privately
Placed Securities Risk. Privately
placed securities generally are less liquid than publicly traded securities and
a Fund may not always be able to sell such securities without experiencing
delays in finding buyers or reducing the sale price for such securities. The
disposition of some of the securities held by a Fund may be restricted under
federal securities laws or by the relevant exchange or by a governmental or
supervisory authority. As a result, a Fund may not be able to dispose of such
investments at a time when, or at a price at which, it desires to do so and may
have to bear expenses of registering these securities, if necessary. These
securities may also be difficult to value.
State
and Local Taxation Risk. A Fund may
invest in securities whose interest is subject to state and local income taxes.
Consult your tax professional for more information.
Asia
Pacific Market Risk. The
economies in the Asia Pacific region are in all stages of economic development
and may be intertwined. The small size of securities markets and the low trading
volume in some countries in the Asia Pacific region may lead to a lack of
liquidity. The share prices of companies in the region tend to be volatile and
there is a significant possibility of loss. Many of the countries in the region
are developing, both politically and economically, and as a result companies in
the region may be subject to risks like nationalization or other forms of
government interference, and/or may be heavily reliant on only a few industries
or commodities. Investments in the region may also be subject to currency risks,
such as restrictions on the flow of money in and out of the country, extreme
volatility relative to the U.S. dollar, and devaluation, all of which could
decrease the value of a Fund. The imposition of tariffs or other trade barriers
or a downturn in the economy of a significant trading partner could adversely
impact Chinese companies.
European
Market Risk. A
Fund’s performance will be affected by political, social and economic conditions
in the various countries in which it invests in Europe and in Europe more
generally, such as growth of the economic output (the gross national product),
the rate of inflation, the rate at which capital is reinvested into European
economies, the success of governmental actions to reduce budget deficits, the
resource self-sufficiency of European countries and interest and monetary
exchange rates between European countries. European financial markets may
experience volatility due to concerns about high government debt levels, credit
rating downgrades, rising unemployment, the future of the euro as a common
currency, possible restructuring of government debt and other government
measures responding to those concerns, and fiscal and monetary controls imposed
on member countries of the European Union. The risk of investing in Europe may
be heightened due to steps taken by the United Kingdom to exit the European
Union. On January 31, 2020, the United Kingdom officially withdrew from the
European Union. As of May 1, 2021, the EU-UK Trade and Cooperation Agreement
(“TCA”)
governs certain
aspects of the European Union’s and the United Kingdom’s relationship, many of
which are still to be determined, including those related to financial services.
Notwithstanding the TCA, significant uncertainty remains in the market regarding
the ramifications of the United Kingdom’s withdrawal from the European Union.
The impact on the United Kingdom and European economies and the broader global
economy could be significant, resulting in increased volatility and illiquidity,
currency fluctuations, impacts on arrangements for trading and on other existing
cross-border cooperation arrangements (whether economic, tax, fiscal, legal,
regulatory or otherwise), and in potentially lower growth for companies in the
United Kingdom, Europe and globally, which could have an adverse effect on the
value of a Fund’s investments. In addition, if one or more other countries were
to exit the European Union or abandon the use of the euro as a currency, the
value of investments tied to those countries or the euro could decline
significantly and unpredictably.
Japan
Risk. Japan may be
subject to political, economic, nuclear and labor risks, among others. Any of
these risks, individually or in the aggregate, can impact an investment made in
Japan. The growth of Japan’s economy has recently lagged that of its Asian
neighbors and other major developed economies. Since the year 2000, Japan’s
economic growth rate has remained relatively low, and it may remain low in the
future. Furthermore, the Japanese economic growth rate could be impacted by Bank
of Japan monetary policies, rising interest rates, tax increases, budget
deficits, consumer confidence and volatility in the Japanese yen. The Japanese
economy is heavily dependent on international trade and has been adversely
affected in the past by trade tariffs, other protectionist measures, competition
from emerging economies and the economic conditions of its trading partners.
Japan is also heavily dependent on oil imports, and higher commodity prices
could therefore have a negative impact on the Japanese economy. Strained
June
21, 2024 | 27
More
About the Funds
(continued)
foreign
relations with neighboring countries (China, South Korea, North Korea and
Russia) may not only negatively impact the Japanese economy but also the
geographic region as well as globally. In addition, Japan's economy has in the
past and could in the future be significantly impacted by natural
disasters.
Cyber
Security Risk. As the use
of technology has become more prevalent in the course of business, the Funds
have become more susceptible to operational and financial risks associated with
cyber security, including: theft, loss, misuse, improper release, corruption and
destruction of, or unauthorized access to, confidential or highly restricted
data relating to a Fund and its shareholders; and compromises or failures to
systems, networks, devices and applications relating to the operations of a Fund
and its service providers. Cyber security risks may result in financial losses
to a Fund and its shareholders; the inability of a Fund to transact business
with its shareholders; delays or mistakes in the calculation of a Fund’s NAV or
other materials provided to shareholders; the inability to process transactions
with shareholders or other parties; violations of privacy and other laws;
regulatory fines, penalties and reputational damage; and compliance and
remediation costs, legal fees and other expenses. A Fund’s service providers
(including, but not limited to, the adviser, any sub-advisers, administrator,
transfer agent, and custodian or their agents), financial intermediaries,
companies in which a Fund invests and parties with which a Fund engages in
portfolio or other transactions also may be adversely impacted by cyber security
risks in their own businesses, which could result in losses to a Fund or its
shareholders. While measures have been developed which are designed to reduce
the risks associated with cyber security, there is no guarantee that those
measures will be effective, particularly since the Funds do not directly control
the cyber security defenses or plans of their service providers, financial
intermediaries and companies in which they invest or with which they do
business.
Regulatory
and Legal Risk. U.S. and
non-U.S. governmental agencies and other regulators regularly implement
additional regulations and legislators pass new laws that affect the investments
held by a Fund, the strategies used by a Fund or the level of regulation or
taxation applying to a Fund (such as regulations related to investments in
derivatives and other transactions). These regulations and laws may adversely
impact the investment strategies, performance, costs and operations of a Fund or
taxation of shareholders.
Volcker
Rule Risk.
Pursuant to section 619 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act and certain rules promulgated thereunder known as the Volcker
Rule, if the adviser and/or its affiliates own 5% or more of the outstanding
ownership interests of a Fund after the permitted seeding period from the
implementation of a Fund’s investment strategy, a Fund could be subject to
restrictions on trading that would adversely impact a Fund’s ability to execute
its investment strategy. Generally, the permitted seeding period is three years
from the implementation of a Fund’s investment strategy, with permissible
extensions under certain circumstances. As a result, the adviser and/or its
affiliates may be required to reduce their ownership interests in a Fund at a
time that is sooner than would otherwise be desirable, which may result in a
Fund’s liquidation or, if a Fund is able to continue operating, may result in
losses, increased transaction costs and adverse tax consequences as a result of
the sale of portfolio securities.
For more
information about risks associated with the types of investments that the Funds
purchase, please read the Statement of Additional Information.
Conflicts
of Interest
An investment
in a Fund is subject to a number of actual or potential conflicts of interest.
For example, the Adviser and/or its affiliates provide a variety of different
services to a Fund, for which the Fund compensates them. As a result, the
Adviser and/or its affiliates have an incentive to enter into arrangements with
a Fund, and face conflicts of interest when balancing that incentive against the
best interests of a Fund. The Adviser and/or its affiliates also face conflicts
of interest in their service as investment adviser to other clients, and, from
time to time, make investment decisions that differ from and/or negatively
impact those made by the Adviser on behalf of a Fund. In addition, affiliates of
the Adviser provide a broad range of services and products to their clients and
are major participants in the global currency, equity, commodity, fixed income
and other markets in which a Fund invests or will invest. In certain
circumstances by providing services and products to their clients, these
affiliates’ activities will disadvantage or restrict the Funds and/or benefit
these affiliates. The Adviser may also acquire material non-public information
which would negatively affect the Adviser’s ability to transact in securities
for a Fund. JPMorgan and the Funds have adopted policies and procedures
reasonably designed to appropriately prevent, limit or mitigate conflicts of
interest. In addition, many of the activities that create these conflicts of
interest are limited and/or prohibited by law, unless an exception is available.
For more information about conflicts of interest, see the Potential
Conflicts of Interest section in
the Statement of Additional Information.
Temporary
Defensive Positions
For liquidity
and to respond to unusual market conditions, the Funds may hold all or most of
their total assets in cash for temporary defensive purposes. These investments
may be inconsistent with a Fund’s main investment strategies. This may result in
a lower yield.
28 | J.P.
Morgan Money Market Funds
U.S.
Treasury Plus Money Market Fund
As a
temporary defensive measure, the Fund may invest up to 20% of its total assets
in (1) debt securities issued or guaranteed by the U.S. government or its
agencies or instrumentalities, and (2) repurchase agreements that are secured
with collateral issued or guaranteed by the U.S. government or its agencies or
instrumentalities.
Temporary
Defensive Position Risk
Prime
Money Market Fund, 100% U.S. Treasury Securities Money Market Fund and U.S.
Government Money Market Fund
If a Fund
departs from its investment policies during temporary defensive periods or to
meet redemptions, it may not achieve its investment objective.
U.S.
Treasury Plus Money Market Fund
If the Fund
departs from its investment policies during temporary defensive periods or to
meet redemptions, it may not achieve its investment objective.
Investments
in the securities enumerated as investments permissible as a temporary defensive
measure above pose additional risks. Investments in securities issued or
guaranteed by the U.S. government or its agencies and instrumentalities or
Government-Sponsored Enterprises (“GSEs”) may include Ginnie Mae, Fannie Mae, or
Freddie Mac securities. Securities issued or guaranteed by Ginnie Mae, Fannie
Mae or Freddie Mac are not issued directly by the U.S. government. Ginnie Mae is
a wholly-owned U.S. corporation that is authorized to guarantee, with the full
faith and credit of the U.S. government, the timely payment of principal and
interest of its securities. By contrast, securities issued or guaranteed by U.S.
government-related organizations such as Fannie Mae and Freddie Mac are not
backed by the full faith and credit of the U.S. government. No assurance can be
given that the U.S. government would provide financial support to its agencies
and instrumentalities if not required to do so by law.
Investments
in securities issued or guaranteed by the U.S. government or its agencies and
instrumentalities or GSEs may also be subject to prepayment and call risk. The
issuers of mortgage-backed and asset-backed securities and other callable
securities may be able to repay principal in advance, especially when interest
rates fall. Changes in prepayment rates can affect the return on investment and
yield of these securities. When mortgages and other obligations are prepaid and
when securities are called, the Fund may have to reinvest in securities with a
lower yield. Additionally, for securities issued by agencies and
instrumentalities that are not backed by the full faith and credit of the U.S.
government, the Fund may fail to recover additional amounts (i.e., premiums)
paid for securities with higher interest rates, resulting in an unexpected
capital loss. Mortgage-related and asset-backed securities are subject to
certain other risks. The value of these securities will be influenced by the
factors affecting the housing market and the assets underlying such securities.
As a result, during periods of declining asset value, difficult or frozen credit
markets, swings in interest rates, or deteriorating economic conditions,
mortgage-related and asset-backed securities may decline in value, face
valuation difficulties, become more volatile and/or become illiquid.
Furthermore, some asset-backed securities may have additional risk because they
may receive little or no collateral protection from the underlying assets, and
are also subject to the risk of default.
The addition
of repurchase agreements will cause additional state tax consequences to
shareholders of the Fund. Consult your tax professional for more
information.
Additional
Fee Waiver and/or Expense Reimbursement
Service
providers to a Fund including the Fund’s adviser and/or its affiliates may, from
time to time, voluntarily waive all or a portion of any fees to which they are
entitled and/or reimburse certain expenses as they may determine from time to
time. A Fund’s service providers may discontinue or modify these voluntary
actions at any time without notice. Performance for the Funds reflects the
voluntary waiver of fees and/or the reimbursement of expenses, if any. Without
these voluntary waivers and/or expense reimbursements, performance would have
been less favorable.
EXPENSE
LIMITATIONS
Prime
Money Market Fund
The JPMorgan Prime Money
Market Fund’s adviser and/or its affiliates have contractually agreed to waive
fees and/or reimburse expenses to the extent Total Annual Fund Operating
Expenses (excluding acquired fund fees and expenses other than certain money
market fund fees as described below, dividend and interest expenses related to
short sales, interest, taxes, expenses related to litigation and potential
litigation, expenses related to trustee elections and extraordinary expenses)
exceed 0.18% of the average daily net assets of the Empower Shares. The Fund may
invest in one or more money market funds advised by the adviser or its
affiliates (affiliated money market funds). The Fund’s adviser, shareholder
servicing agent and/or administrator have contractually agreed to waive
June
21, 2024 | 29
More
About the Funds
(continued)
fees and/or reimburse
expenses in an amount sufficient to offset the respective net fees each collects
from the affiliated money market funds on the Fund’s investment in such money
market funds. These waivers are in effect through 6/30/25, at which time it will be
determined whether such waivers will be renewed or revised. To the extent that
the Fund engages in securities lending, affiliated money market fund fees and
expenses resulting from the Fund’s investment of cash received from securities
lending borrowers are not included in Total Annual Fund Operating Expenses and
therefore, the above waivers do not apply to such investments.
100% U.S.
Treasury Securities Money Market Fund
The JPMorgan 100% U.S.
Treasury Securities Money Market Fund’s adviser and/or its affiliates have
contractually agreed to waive fees and/or reimburse expenses to the extent Total
Annual Fund Operating Expenses (excluding acquired fund fees and expenses other
than certain money market fund fees as described below, dividend and interest
expenses related to short sales, interest, taxes, expenses related to litigation
and potential litigation, expenses related to trustee elections and
extraordinary expenses) exceed 0.18% of the average daily net assets of the
Empower Shares. The Fund may invest in one or more money market funds advised by
the adviser or its affiliates (affiliated money market funds). The Fund’s
adviser, shareholder servicing agent and/or administrator have contractually
agreed to waive fees and/or reimburse expenses in an amount sufficient to offset
the respective net fees each collects from the affiliated money market funds on
the Fund’s investment in such money market funds. These waivers are in effect
through 6/30/25, at which time it will be
determined whether such waivers will be renewed or revised. To the extent that
the Fund engages in securities lending, affiliated money market fund fees and
expenses resulting from the Fund’s investment of cash received from securities
lending borrowers are not included in Total Annual Fund Operating Expenses and
therefore, the above waivers do not apply to such investments.
U.S.
Government Money Market Fund
The JPMorgan U.S. Government
Money Market Fund’s adviser and/or its affiliates have contractually agreed to
waive fees and/or reimburse expenses to the extent Total Annual Fund Operating
Expenses (excluding acquired fund fees and expenses other than certain money
market fund fees as described below, dividend and interest expenses related to
short sales, interest, taxes, expenses related to litigation and potential
litigation, expenses related to trustee elections and extraordinary expenses)
exceed 0.18% of the average daily net assets of the Empower Shares. The Fund may
invest in one or more money market funds advised by the adviser or its
affiliates (affiliated money market funds). The Fund’s adviser, shareholder
servicing agent and/or administrator have contractually agreed to waive fees
and/or reimburse expenses in an amount sufficient to offset the respective net
fees each collects from the affiliated money market funds on the Fund’s
investment in such money market funds. These waivers are in effect through
6/30/25, at which time it will be
determined whether such waivers will be renewed or revised. To the extent that
the Fund engages in securities lending, affiliated money market fund fees and
expenses resulting from the Fund’s investment of cash received from securities
lending borrowers are not included in Total Annual Fund Operating Expenses and
therefore, the above waivers do not apply to such investments.
U.S.
Treasury Plus Money Market Fund
The JPMorgan U.S. Treasury
Plus Money Market Fund’s adviser and/or its affiliates have contractually agreed
to waive fees and/or reimburse expenses to the extent Total Annual Fund
Operating Expenses (excluding acquired fund fees and expenses other than certain
money market fund fees as described below, dividend and interest expenses
related to short sales, interest, taxes, expenses related to litigation and
potential litigation, expenses related to trustee elections and extraordinary
expenses) exceed 0.18% of the average daily net assets of the Empower Shares.
The Fund may invest in one or more money market funds advised by the adviser or
its affiliates (affiliated money market funds). The Fund’s adviser, shareholder
servicing agent and/or administrator have contractually agreed to waive fees
and/or reimburse expenses in an amount sufficient to offset the respective net
fees each collects from the affiliated money market funds on the Fund’s
investment in such money market funds. These waivers are in effect through
6/30/25, at which time it will be
determined whether such waivers will be renewed or revised. To the extent that
the Fund engages in securities lending, affiliated money market fund fees and
expenses resulting from the Fund’s investment of cash received from securities
lending borrowers are not included in Total Annual Fund Operating Expenses and
therefore, the above waivers do not apply to such investments.
Additional
Historical Performance Information
Some of the
companies that provide services to the Funds have in the past agreed not to
collect some expenses and to reimburse others. Without these agreements, the
performance figures would have been lower than those shown.
30 | J.P.
Morgan Money Market Funds
Each Fund is a money market
fund managed to meet the requirements of Rule 2a-7 under the Investment Company
Act of 1940. Effective May 28, 2010, Rule 2a-7 was amended to impose new
liquidity, credit quality, and maturity requirements on all money market funds.
Effective October 14, 2014, Rule 2a-7 was amended to reflect various other
changes. Effective July 12, 2023, Rule 2a-7 was further amended to reflect
various other changes. Fund performance shown prior to the effective date of
such changes is based on SEC rules then in-effect and is not an indication of
future returns.
Prime
Money Market Fund
The
historical performance for the Empower Shares in the bar chart and the
performance table prior to their inception on 2/23/21 is based on the
performance of the Fund’s Capital Shares, which invest in the same portfolio of
securities, but are offered in a different prospectus. The actual return of
Empower Shares would have been different than those shown because Empower Shares
have different expenses than Capital Shares.
100%
U.S. Treasury Securities Money Market Fund
The
historical performance for the Empower Shares in the bar chart and the
performance table prior to their inception on 2/23/21 is based on the
performance of the Fund’s Capital Shares, which invest in the same portfolio of
securities, but are offered in a different prospectus. The actual return of
Empower Shares would have been different than those shown because Empower Shares
have different expenses than Capital Shares.
U.S.
Government Money Market Fund
The
historical performance for the Empower Shares in the bar chart and the
performance table prior to their inception on 2/23/21 is based on the
performance of the Fund’s Capital Shares, which invest in the same portfolio of
securities, but are offered in a different prospectus. The actual return of
Empower Shares would have been different than those shown because Empower Shares
have different expenses than Capital Shares.
U.S.
Treasury Plus Money Market Fund
The
historical performance for the Empower Shares in the bar chart and the
performance table prior to their inception on 2/23/21 is based on the
performance of the Fund’s Institutional Shares, which invest in the same
portfolio of securities, but are offered in a different prospectus. The actual
return of Empower Shares would have been different than those shown because
Empower Shares have different expenses than Institutional Shares.
June
21, 2024 | 31
The
Funds’ Management and Administration
The 100% U.S.
Treasury Securities Money Market Fund and the Prime Money Market Fund are a
series of JPMorgan Trust I (JPMT I), a Delaware statutory trust.
The U.S.
Government Money Market Fund and the U.S Treasury Plus Money Market Fund are a
series of JPMorgan Trust II (JPMT II), a Delaware statutory trust.
The Trusts
are governed by the Board of Trustees which is responsible for overseeing all
business activities of the Funds. In addition to the Funds, each Trust consists
of other series representing separate investment funds (each, a “J.P. Morgan
Fund”).
The Funds
operate in a multiple class structure. A multiple class fund is an open-end
investment company that issues two or more classes of shares representing
interests in the same investment portfolio.
Each class in
a multiple class fund can set its own transaction minimums and may vary with
respect to expenses for distribution, administration and shareholder services.
This means that one class could offer access to the Funds on different terms
than another class. Certain classes may be more appropriate for a particular
investor.
The Funds may
issue other classes of shares that have different expense levels and performance
and different requirements for who may invest. Call 1-800-766-7722 to obtain
more information concerning each of the Fund’s other share classes. A Financial
Intermediary (as described below) who receives compensation for selling Fund
shares may receive a different amount of compensation for sales of different
classes of shares.
The
Funds' Investment Adviser
J.P. Morgan
Investment Management Inc. (JPMIM) acts as investment adviser to the Funds and
makes the day-to-day investment decisions for the Funds. In rendering investment
advisory services to certain Funds, JPMIM uses the portfolio management,
research and other resources of a foreign (non-U.S.) affiliate of JPMIM and may
provide services to a Fund through a “participating affiliate” arrangement, as
that term is used in relief granted by the staff of the SEC. Under this relief,
U.S. registered investment advisers are allowed to use portfolio management or
research resources of advisory affiliates subject to the regulatory supervision
of the registered investment adviser.
JPMIM is a
wholly-owned subsidiary of JPMorgan Asset Management Holdings Inc., which is a
wholly-owned subsidiary of JPMorgan Chase & Co. (JPMorgan Chase), a bank
holding company. JPMIM is located at 383 Madison Avenue, New York, NY
10179.
In
conjunction with the offering and distribution of the Empower Shares, JPMIM has
established the Empower and Community Development Fund, a Donor-Advised Fund
(administered by the Chicago Community Trust) that is committed to supporting
community development to expand opportunities to underserved communities. JPMIM
will make an annual donation, out of its own legitimate profits, to the Empower
and Community Development Fund of 12.5% of its annual gross revenue received
from the management fees on the Empower Shares assets of each Fund. An annual
donation will be made throughout the life of the Empower Shares.
During the fiscal period
ended 2/29/24, JPMIM was paid management fees (net of waivers, if any), as shown
below, as a percentage of average daily net assets:
|
Prime
Money Market Fund |
0.08% |
|
100%
U.S. Treasury Securities Money Market Fund |
0.08 |
|
U.S.
Government Money Market Fund |
0.08 |
|
U.S.
Treasury Plus Money Market Fund |
0.08 |
A discussion
of the basis the Board of Trustees of the Trust used in reapproving the
investment advisory agreements for the Funds is available in the semi-annual
reports for the most recent fiscal period ended August 31.
The
Funds' Administrator
JPMIM (the
Administrator) provides administration services and oversees the other service
providers of the Funds. The Administrator receives a pro-rata portion of the
following annual fee on behalf of each Money Market Fund for administration
services: 0.070% of the first $150 billion of average daily net assets of all
money market funds in the J.P. Morgan Funds Complex, plus 0.050% of average
daily net assets of such Money Market Funds between $150 billion and $300
billion, plus 0.030% of average daily net assets of such Money Market Funds
between $300 billion and $400 billion, plus 0.010% of the average daily net
assets of such Money Market Funds over $400 billion.
32 | J.P.
Morgan Money Market Funds
The
Funds' Shareholder Servicing Agent
JPMT I and
JPMT II, on behalf of the Funds, have entered into a shareholder servicing
agreement with JPMorgan Distribution Services, Inc. (JPMDS) under which JPMDS
has agreed to provide certain support services to the Funds’ shareholders. For
performing these services, JPMDS, as shareholder servicing agent, receives an
annual fee of 0.05% of the average daily net assets of Empower Shares of each
Fund. JPMDS may enter into service agreements with MVW Financial Intermediaries
and Approved Financial Intermediaries under which it will pay all or a portion
of the annual fee to such entities for performing shareholder and administrative
services. The amount payable for “service fees” (as defined by the Financial
Industry Regulatory Authority (FINRA)) does not exceed 0.25% of the average
annual net assets attributable to the Empower Shares of each Fund.
The
Funds' Distributor
JPMDS (the
Distributor) is the distributor for the Funds. The Distributor is an affiliate
of JPMIM.
Additional
Compensation to Financial Intermediaries
JPMIM, JPMDS
and, from time to time, other affiliates of JPMorgan Chase may also, at their
own expense and out of their own legitimate profits, provide additional cash
payments to Financial Intermediaries whose customers invest in shares of the
J.P. Morgan Funds. For this purpose, Financial Intermediaries include financial
advisors, investment advisers, brokers, financial planners, banks, insurance
companies, retirement or 401(k) plan administrators and others, including
various affiliates of JPMorgan Chase, that have entered into agreements with
JPMDS. These additional cash payments are payments over and above any sales
charges (including Rule 12b-1 fees) and service fees (including sub-transfer
agency and networking fees) that are paid to such Financial Intermediaries, as
described elsewhere in this prospectus. These additional cash payments are
generally made to Financial Intermediaries that provide shareholder,
sub-transfer agency or administrative services or marketing support. Marketing
support may include access to sales meetings, sales representatives and
Financial Intermediary management representatives, inclusion of the J.P. Morgan
Funds on a sales list, or other sales programs and/or for training and educating
a Financial Intermediary’s employees. These additional cash payments also may be
made as an expense reimbursement in cases where the Financial Intermediary
provides shareholder services to J.P. Morgan Fund shareholders. JPMIM and JPMDS
may also pay cash compensation in the form of finders’ fees that vary depending
on the J.P. Morgan Fund and the dollar amount of shares sold. Such additional
compensation may provide such Financial Intermediaries with an incentive to
favor sales of shares of the J.P. Morgan Funds over other investment options
they make available to their customers. See the Statement of Additional
Information for more information.
In addition,
as part of the Empower Shares Program, JPMIM may, out of its expense and
legitimate profits, make payments to MVW Financial Intermediaries for marketing
support in connection with Fund shares that are offered through Approved
Financial Intermediaries. Marketing support may include access to sales
meetings, sales representatives and Approved Financial Intermediary management
representatives, inclusion of Empower Shares on a sales list, or other sales
programs and/or for training and educating an Approved Financial Intermediary’s
employees on the Empower Shares Program. More information about MVW Financial
Intermediaries and the Empower Shares Program is available upon
request.
June
21, 2024 | 33
How
Your Account Works
As noted
above in each Fund’s Risk/Return Summary, the Empower Shares provide MVW
Financial Intermediaries with a revenue opportunity by way of the Empower Shares
Program. The Funds’ Empower Shares may be purchased through MVW Financial
Intermediaries, either directly from a Fund or through an electronic-trading
platform sponsored by JPMorgan or its affiliates, by referral from a MVW
Financial Intermediary, or through Approved Financial Intermediary platforms for
which JPMIM has contracted with MVW Financial Intermediaries to provide
marketing support services. MVW Financial Intermediaries and Approved Financial
Intermediaries together are “Financial Intermediaries”.
Buying
Fund Shares
You do not
pay any sales charge (sometimes called a load) when you buy Empower Class Shares
of these Funds.
The price you
pay for your shares is the net asset value (NAV) per share of the class. NAV is
the value of everything a class of a Fund owns, minus everything the class owes,
divided by the number of shares of that class held by investors. Each Fund,
other than the Prime Money Market Fund, seeks to maintain a stable NAV per share
of $1.00 and each Fund uses the amortized cost method to value its portfolio of
securities provided that certain conditions are met, including that the Board
continues to believe that the amortized cost valuation fairly reflects the
market-based net asset value per share of the Fund. This method provides more
stability in valuations. However, it may also result in periods during which the
stated value of a security is different than the price the Fund would receive if
it sold the investment.
The NAV of
each class of shares is generally calculated as of each cut-off time each day
the Funds are accepting orders. You will pay the next NAV per share calculated
after the J.P. Morgan Institutional Funds Service Center accepts your
order.
Empower
Shares may be purchased by institutional investors such as corporations, pension
and profit sharing plans, financial institutions, states, municipalities and
foundations.
You may
purchase Fund shares through a Financial Intermediary. Financial Intermediaries
may include financial advisors, investment advisers, brokers, financial
planners, banks, insurance companies, retirement or 401(k) plan administrators
and others, including various affiliates of JPMorgan Chase, that have entered
into agreements with JPMDS as Distributor and/or shareholder servicing agent.
Shares purchased this way will typically be held for you by the Financial
Intermediary. Financial Intermediaries or such other organizations may impose
eligibility requirements for each of their clients or customers investing in the
Funds, including investment minimum requirements, which may be the same as or
different from the requirements for investors purchasing directly from the
Funds. You may also purchase shares directly from the J.P. Morgan Institutional
Funds Service Center.
Shares are
available on any business day that the Federal Reserve Bank of New York (Federal
Reserve) is open, except as noted below. A Fund may also close on days when the
Federal Reserve is open and the New York Stock Exchange (NYSE) is closed. On any
business day when the Securities Industry and Financial Markets Association
(SIFMA) recommends that the securities markets close trading early, a Fund may
close early.
On occasion,
the NYSE closes before 4:00 p.m. Eastern Time (ET). When the NYSE closes early,
a Fund may also elect to close early and purchase orders accepted by the Fund
after the early closing will be effective the following business day. Each Fund,
however, may elect to remain open following an early close of the NYSE. If your
purchase order is accepted by the Fund before the Fund’s close on a day when the
NYSE closes early but the Fund remains open, or on a day when the Fund is open
but the NYSE is not, it will become effective following the Fund’s next
calculation of its NAV. Purchase orders accepted after a Fund’s final
calculation of NAV for the day will be effective the following business
day.
The NAV of
each class of shares is generally calculated as of the following times each day
the Funds are accepting purchase orders and redemption requests (each such time,
including the final of such times each day, a cut-off time): for each of the
U.S. Government Money Market Fund and U.S. Treasury Plus Money Market Fund, 9:00
a.m., 10:00 a.m., 11:00 a.m., 12:00 p.m., 1:00 p.m., 2:00 p.m., 3:00 p.m., 4:00
p.m. and 5:00 p.m. ET; for the 100% U.S. Treasury Securities Money Market Fund,
9:00 a.m., 10:00 a.m., 11:00 a.m., 12:00 p.m., 1:00 p.m., 2:00 p.m. and 3:00
p.m., ET.
Until August 1, 2024, the NAV
of each class of shares of the JPMorgan Prime Money Market Fund is generally
calculated as of the following times on each day the Fund accepts purchase
orders and redemption requests: 8:00 a.m., 12:00 p.m. and 3:00 p.m.
ET.
Effective August 1, 2024, the
NAV of each class of shares of the JPMorgan Prime Money Market Fund is generally
calculated as of 3:00 p.m. ET on each day the Fund accepts purchase orders and
redemption requests.
The NAV of
each class of shares of the JPMorgan Prime Money Market Fund is calculated using
market-based values. The NAV per share of a class of the Fund is equal to the
value of all the assets attributable to that class, minus the liabilities
attributable to that class, divided by the number of outstanding shares of that
class. The following is a summary of the valuation procedures generally used to
value the J.P. Morgan Funds’ investments for market-based NAVs.
34 | J.P.
Morgan Money Market Funds
Securities
for which market quotations are readily available are generally valued at their
current market value. Other securities and assets, including securities for
which market quotations are not readily available; market quotations are
determined not to be reliable; or, their value has been materially affected by
events occurring after the close of trading on the exchange or market on which
the security is principally traded but before the Fund’s NAV is calculated, may
be valued at fair value in accordance with policies and procedures adopted by
the Board. Fair value represents a good faith determination of the value of a
security or other asset based upon specifically applied procedures. Fair
valuation may require subjective determinations. There can be no assurance that
the fair value of an asset is the price at which the asset could have been sold
during the period in which the particular fair value was used in determining the
Fund’s NAV.
Fixed income
securities are valued using prices supplied by an approved independent third
party or affiliated pricing services or broker/dealers. Those prices are
determined using a variety of inputs and factors as more fully described in the
Statement of Additional Information.
Shares of
mutual funds are valued at their respective NAVs.
If a Fund
accepts your purchase order and receives payment the same day, as described
below, your order will be processed at the price calculated at the next cut-off
time and you will be entitled to all dividends declared on that day. If the Fund
accepts your purchase order after the final cut-off time for a day, it will be
processed at the next day’s first calculated price. If the Fund does not receive
payment on the same day that your order is placed, as described below, you will
not be entitled to any dividends declared on that day.
The Funds
have the right to refuse any purchase order or to stop offering shares for sale
at any time. In addition, in its discretion, the Board may elect to calculate
the price of a Fund’s shares once per day. Under certain circumstances, the
Board has delegated to management the ability to temporarily suspend one or more
cut-off times for a Fund, other than the last cut-off time of the
day.
Share
ownership is electronically recorded; therefore, no certificate will be
issued.
Shares of the
Funds have not been registered for sale outside of the United States. This
prospectus is not intended for distribution to prospective investors outside of
the United States. The Funds generally do not market or sell shares to investors
domiciled outside of the United States, even, with regard to individuals, if
they are citizens or lawful permanent residents of the United
States.
The Funds
reserve the right to change the manner in which shares are offered at any
time.
If a
Financial Intermediary holds your shares, it is the responsibility of the
Financial Intermediary to send your purchase order and payment to a Fund by the
applicable deadlines. Your Financial Intermediary may have earlier cut-off times
for purchase orders. In addition, your Financial Intermediary may be closed at
times when the Fund is open. Your order through a Financial Intermediary will be
processed at the NAV next calculated following receipt of the order from the
Financial Intermediary and acceptance by a Fund. In the event that the order is
accepted by a Financial Intermediary that a Fund has authorized to accept orders
on its behalf, as described herein, the order will be priced at the Fund’s NAV
next calculated after it is accepted by the Financial Intermediary. In such
cases, if requested by a Fund, a Financial Intermediary will be responsible for
providing information with regard to the time that such order for purchase,
redemption or exchange was received. Orders submitted through a Financial
Intermediary that has not received such authorization will be priced at the
Fund’s NAV next calculated after it receives the order from the Financial
Intermediary and accepts it, which may not occur on the day submitted to the
Financial Intermediary.
In order to
receive a dividend on the day that you submit your order, a Fund must receive
“federal funds” or other immediately available funds by the close of the Federal
Reserve wire transfer system (normally, 6:45 p.m. ET) on the same business day
the purchase order is placed. In the event that an order is placed by a cut-off
time specified above and payment through federal funds or other immediately
available funds is not received by the Fund by the close of the Federal Reserve
wire transfer system or other immediately available funds that same day, you
will not accrue a dividend on that day and the Fund reserves the right to cancel
your purchase order and you will be liable for any resulting losses or fees
incurred by the Fund or the Fund’s transfer agent. If you pay by other
acceptable methods, before the final cut-off time on a day, we will process your
order that day, but you will not receive any dividends declared on that
day.
Payments
received electronically from Financial Intermediaries on your behalf for trades
accepted by the Fund will begin to receive dividends the day payment is received
by the Fund.
To open an
account, buy or sell shares or get fund information, call:
J.P.
Morgan Institutional Funds Service Center
1-800-766-7722
1-800-766-7722
The
JPMorgan Prime Money Market Fund does not permit Financial Intermediaries to
serve as their agent for the receipt of orders. All trades in the JPMorgan Prime
Money Market Fund are priced at the NAV next calculated by the Fund following
its receipt of the trade in proper form from the Financial Intermediary.
Additionally, a Fund must receive “federal funds” or
June
21, 2024 | 35
How
Your Account Works
(continued)
other
immediately available funds by the close of the Federal Reserve wire transfer
system (normally, 6:45 p.m. ET) on the same business day the purchase order is
placed. In the event that payment is not received by the Fund by the close of
the Federal Reserve wire transfer system or through other immediately available
funds that same day, the Fund reserves the right to cancel your purchase order
and you will be liable for any resulting losses or fees incurred by the Fund or
the Fund’s transfer agent. A shareholder that redeems shares of the JPMorgan
Prime Money Market Fund will not receive a dividend on the date of redemption,
regardless of the form of payment requested.
Minimum
Investments and Shareholder Eligibility
Empower
Shares are subject to a $50,000,000 minimum investment requirement per Fund.
Certain institutional investors may meet the minimum through the total amount of
Empower Shares of the Fund for all such institutional investors with the
Financial Intermediary. There are no minimum levels for subsequent
purchases.
The Funds
and/or the Distributor reserve the right to waive any initial or subsequent
investment minimum. The Statement of Additional Information has additional
information on investment minimum waivers for investors purchasing directly from
JPMDS, such as when additional accounts of the investor may be aggregated
together to meet the minimum requirement. For further information on investment
minimum waivers, call 1-800-766-7722.
Each “retail”
money market fund (“RMMF”) must adopt policies and procedures reasonably
designed to limit all beneficial owners of the Fund to natural persons. In order
to separate retail and non-retail investors, a RMMF may redeem investors that do
not satisfy the eligibility requirements for RMMF investors. Each of the RMMFs
will provide advance written notice of its intent to make any such involuntary
redemptions, which will include more specific information on timing. Neither a
Fund nor its investment adviser will be responsible for any loss in an
investor’s account or tax liability resulting from an involuntary
redemption.
Each RMMF
will seek to continue to qualify as “retail” by requiring that investments in
the Fund will be limited to accounts beneficially owned by natural persons.
Natural persons may invest in a RMMF through certain tax-advantaged savings
accounts, trusts and other retirement and investment accounts, which may
include, among others: participant-directed defined contribution plans;
individual retirement accounts; simplified employee pension arrangements; simple
retirement accounts; custodial accounts; deferred compensation plans for
government or tax-exempt organization employees; Archer medical savings
accounts; college savings plans; health savings account plans; ordinary trusts
and estates of natural persons; or certain other retirement and investment
accounts with ultimate investment authority held by the natural person
beneficial owner, notwithstanding having an institutional decision maker making
day to day decisions (e.g., a plan sponsor in certain retirement arrangements or
an investment adviser managing discretionary investment accounts). Only accounts
beneficially owned by natural persons are permitted to retain their shares.
Financial Intermediaries are required to take steps to remove any shareholders
on behalf of whom they hold shares in a RMMF that are not eligible to be
invested in the RMMF and must notify the RMMF of any ineligible shareholders
that continue to own shares of the RMMF. Further, Financial Intermediaries may
only submit purchase orders in RMMFs if they have implemented policies and
procedures reasonably designed to limit all investors on behalf of whom they
submit orders to accounts beneficially owned by natural persons. Financial
Intermediaries may be required by a RMMF or its shareholder servicing agent to
provide a written statement or other representation that they have in place, and
operate in compliance with, such policies and procedures prior to submitting
purchase orders. The RMMFs reserve the right to redeem shares in any account
that they cannot confirm to their satisfaction are beneficially owned by natural
persons, after providing advance notice.
Financial
Intermediaries are required, to the extent that they hold investments in a Fund
that operates as a RMMF to ensure that all shareholders on behalf of whom they
hold investments comply with the terms and conditions for investor eligibility
as set forth above. Additionally, such Financial Intermediaries are expected to
have, and upon request may be asked to provide satisfactory evidence to each of
those Funds or the shareholder servicing agent that they have policies and
procedures in place that are reasonably designed to limit all beneficial owners
of the Fund on behalf of whom they place orders to natural persons and to
provide to the Fund information or certification as to the adequacy of such
procedures and the effectiveness of their implementation, in such form as may be
reasonably requested by the Fund or the shareholder servicing agent. Financial
Intermediaries are expected to promptly report to a RMMF or the shareholder
servicing agent the identification of any shareholder of the RMMF that does not
qualify as a natural person of whom they are aware and promptly take steps to
redeem any such shareholder’s shares of the Fund upon request by the RMMF or the
shareholder servicing agent, in such manner as it may reasonably request. Where,
pursuant to authorization from a Fund, a Financial Intermediary accepts trade
orders on the MMF’s behalf (which shall not include the JPMorgan Prime Money
Market Fund), upon the Fund’s reasonable request, the Financial Intermediary is
expected to promptly provide the Fund or the shareholder servicing agent with
information regarding the timing of its acceptance of such trade orders for
purposes of, among other things, validating which NAV calculation should be
applied to such trades and determining whether the orders preceded or followed
the effective implementation time of a liquidity fee or redemption gate, or a
modification thereto.
36 | J.P.
Morgan Money Market Funds
The JPMorgan
Prime Money Market Fund does not permit Financial Intermediaries to serve as
their agent for the receipt of orders. For all other MMFs, where a Financial
Intermediary serves as a Fund’s agent for the purpose of receiving orders,
trades that are not transmitted to the Fund by the Financial Intermediary before
the time required by the Fund or the shareholder servicing agent may, in the
Fund’s discretion, be processed on an as-of basis, provided, however, that any
cost or loss to the Fund or the shareholder servicing agent or their affiliates,
from such transactions shall be borne exclusively by the Financial
Intermediary.
General
The Funds are
intended for short-term investment horizons, and do not monitor for market
timers or prohibit short-term trading activity. Although these Funds are managed
in a manner that is consistent with their investment objectives, frequent
trading by shareholders may disrupt their management and increase their
expenses.
Federal law
requires all financial institutions to obtain, verify and record information
that identifies each person who opens an account. When you open an account, we
will ask for your name, residential or business street address, date of birth
(for an individual) and other information that will allow us to identify you,
including your social security number, tax identification number or other
identifying number. The Funds cannot waive these requirements. The Funds are
required by law to reject your Account Application if the required identifying
information is not provided.
We will
attempt to collect any missing information required on the Account Application,
including any information that the Fund or the Distributor, in its sole
discretion, may require to confirm Retail Fund eligibility, by contacting either
you or your Financial Intermediary. If we cannot obtain this information within
the established time frame, your Account Application will be rejected. Amounts
received prior to receipt of the required information will be held uninvested
and will be returned to you without interest if your Account Application is
rejected. If the required information is obtained, your investment will be
accepted and you will pay the NAV per share next calculated after all of the
required information is received.
Once we have
received all of the required information, federal law requires us to verify your
identity. After an account is opened, we may restrict your ability to purchase
additional shares until your identity is verified. If we are unable to verify
your identity within a reasonable time, the Funds and/or the Distributor reserve
the right to close your account at the current NAV per share. If your account is
closed for this reason, your shares will be redeemed at the NAV per share next
calculated after the account is closed.
Send the
completed Account Application and a check to our regular or overnight mailing
address:
Regular
mailing address:
J.P. Morgan
Institutional Funds Service Center
P.O. Box 219265
Kansas City, MO 64121-9265
P.O. Box 219265
Kansas City, MO 64121-9265
Overnight
mailing address:
J.P. Morgan
Institutional Funds Service Center
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
All checks
must be in U.S. dollars. The Funds do not accept credit cards, cash, starter
checks, money orders or credit card checks. The Funds reserve the right to
refuse “third-party” checks and checks drawn on non-U.S. financial institutions
even if payment may be effected through a U.S. financial institution. Checks
made payable to any individual or company and endorsed to the J.P. Morgan Funds
or a Fund are considered third-party checks. The redemption of shares purchased
through the J.P. Morgan Institutional Funds Service Center by check or an
Automated Clearing House (ACH) transaction is subject to certain limitations.
See “Selling Fund Shares.”
In
the event that payment is not received by the JPMorgan Prime Money Market Fund
by the close of the Federal Reserve wire transfer system or through other
immediately available funds that same day, the Fund reserves the right to cancel
your purchase order and you will be liable for any resulting losses or fees
incurred by the Fund or the Fund’s transfer agent.
All
checks must be made payable to one of the following:
●
J.P. Morgan
Funds; or
●
The specific
Fund in which you are investing.
Your purchase
may be canceled if your check does not clear and you will be responsible for any
expenses and losses to the Funds.
June
21, 2024 | 37
How
Your Account Works
(continued)
If you choose
to pay by wire, please call 1-800-766-7722 to notify the Funds of your purchase
and authorize your financial institution to wire funds to:
JPMorgan
Chase Bank, N.A.
1 Chase Plaza, New York, NY 10005
ATTN: J.P. Morgan Institutional Funds Service Center
ABA: 021000021
DDA: 323125832
DDA NAME: DST as Agent for JPMorgan Funds
FBO Your Fund Number & Account Number
(EX: FUND 123-ACCOUNT 123456789)
Your Account Registration
(EX: EYX CORPORATION)
Your J.P. Morgan Fund
(EX: JPMORGAN ABC FUND-EMPOWER)
1 Chase Plaza, New York, NY 10005
ATTN: J.P. Morgan Institutional Funds Service Center
ABA: 021000021
DDA: 323125832
DDA NAME: DST as Agent for JPMorgan Funds
FBO Your Fund Number & Account Number
(EX: FUND 123-ACCOUNT 123456789)
Your Account Registration
(EX: EYX CORPORATION)
Your J.P. Morgan Fund
(EX: JPMORGAN ABC FUND-EMPOWER)
Orders paid
by wire may be canceled if the J.P. Morgan Institutional Funds Service Center
does not receive payment by a Fund’s final cut-off time on the day that you
placed your order.
You will be
responsible for any expenses and losses to the Funds.
You can buy
shares in one of two ways:
Through
Your Financial Intermediary
Tell your
Financial Intermediary which Funds you want to buy and they will contact us.
Your Financial Intermediary may charge you a fee and may offer additional
services, such as special purchase and redemption programs, “sweep” programs,
cash advances and redemption checks. Some Financial Intermediaries charge a
single fee that covers all services.
Your purchase
through a Financial Intermediary will be processed at the NAV next calculated
following receipt of the order from the Financial Intermediary and acceptance by
a Fund, which may not occur on the day submitted to the Financial Intermediary.
In addition, orders placed through a Financial Intermediary are subject to the
timing requirements relating to payment for shares described above. Your
Financial Intermediary may impose different minimum investments and earlier
cut-off times for the submission of orders.
Your
Financial Intermediary may be paid by JPMDS to assist you in establishing your
account, executing transactions and monitoring your investment. Financial
Intermediaries may provide the following services in connection with their
customers’ investments in the Funds:
●
Acting
directly or through an agent, as the sole shareholder of record.
●
Maintaining
account records for customers.
●
Processing
orders to purchase, redeem or exchange shares for customers.
●
Responding to
inquiries from shareholders.
●
Assisting
customers with investment procedures.
Certain Funds
have authorized one or more Financial Intermediaries to accept purchase and
redemption orders on their behalf. Such Financial Intermediaries are authorized
to designate other intermediaries to accept purchase and redemption orders on a
Fund’s behalf. The Funds will be deemed to have received a purchase order when
such Financial Intermediary or, if applicable, such Financial Intermediary’s
authorized designee, accepts the order. Such orders will be priced at the Fund’s
NAV next calculated after it is accepted by the Financial Intermediary. In such
cases, if requested by a Fund, a Financial Intermediary will be responsible for
providing information with regard to the time that such order for purchase was
received.
Orders
submitted through a Financial Intermediary that has not received such
authorization to accept orders on a Fund’s behalf will be priced at the Fund’s
NAV next calculated after it receives the order from the Financial Intermediary
and accepts it, which may not occur on the day submitted to the Financial
Intermediary. Since not all Financial Intermediaries have received such
authorization, you may wish to contact your Financial Intermediary to determine
if it has received such authorization.
Through
the J.P. Morgan Institutional Funds Service Center
Call
1-800-766-7722
Or
Or
38 | J.P.
Morgan Money Market Funds
Complete the
Account Application and mail it along with a check for the amount you want to
invest to our regular or overnight mailing address:
Regular
mailing address:
J.P. Morgan
Institutional Funds Service Center
P.O. Box 219265
Kansas City, MO 64121-9265
P.O. Box 219265
Kansas City, MO 64121-9265
Overnight
mailing address:
J.P. Morgan
Institutional Funds Service Center
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
The J.P.
Morgan Institutional Funds Service Center will accept your order when federal
funds, a wire, a check or ACH transaction is received together with a completed
Account Application or other instructions in proper form.
If you
purchase shares through a Financial Intermediary, you may be required to
complete additional forms or follow additional procedures. You should contact
your Financial Intermediary regarding purchases, exchanges and
redemptions.
Shares of the
Funds have not been registered for sale outside of the United States. This
prospectus is not intended for distribution to prospective investors outside of
the United States. The Funds generally do not market or sell shares to investors
domiciled outside of the United States, even, with regard to individuals, if
they are citizens or lawful permanent residents of the United States.
The Funds
reserve the right to change the manner in which shares are offered at any
time.
Selling
Fund Shares
You can sell
or redeem your shares on any day that the Funds are open for business. You will
receive the NAV per share calculated at the next cut-off time after the Fund
receives your order.
A redemption
order must be supported by all appropriate documentation and information in good
order (meaning that it includes the information required by, and complies with
security requirements implemented by, the Funds' transfer agent or the Funds),
including the name of the registered shareholder and your account number. The
Funds may refuse to honor incomplete orders.
The length of
time that the Funds typically expect to pay redemption proceeds depends on
whether payment is made by ACH, wire or check. Under normal circumstances, if a
Fund receives your order before the Fund’s final daily cut-off time, the Fund
typically expects to pay redemption proceeds to you by wire that same business
day. Proceeds may be made available throughout the day following the calculation
of NAVs. For payment by check or ACH, the Funds typically expect to mail the
check or pay redemption proceeds by ACH on the next business day following
receipt of the redemption order by the Funds. For trades submitted through a
Financial Intermediary, it is the responsibility of each Financial Intermediary
to submit orders to the Fund by the final daily cut-off time in order to receive
proceeds that same business day by wire. Otherwise, except as set forth in the
section “Suspension of Redemptions” below, your redemption proceeds will be paid
within seven days (one day for the JPMorgan Prime Money Market Fund, JPMorgan
U.S. Government Money Market Fund and JPMorgan U.S. Treasury Plus Money Market
Fund) after the Fund receives the redemption order. Shareholders that redeem
shares and purchase additional shares on the same day will receive dividends as
set forth above under “Buying Fund Shares.” Dividends will not accrue on shares
that are redeemed and paid on a same day basis or any shares of the JP Morgan
Prime Money Market Fund on the date of redemption. Other redeeming shareholders
will accrue dividends on the redemption date.
If you have
changed your address of record within the previous 15 days, the Funds will not
mail your proceeds, but rather will wire them or send them by ACH to a
pre-existing bank account on record with the Funds.
The Funds may
hold proceeds for shares purchased by ACH or check until the purchase amount has
been collected, which may be as long as five business days.
You may also
need to have medallion signature guarantees for all registered owners or their
legal representatives if:
●
You want to
redeem shares with a value of $50,000 or more and you want to receive your
proceeds in the form of a check; or
●
You want your
payment sent to an address, bank account or payee other than the one currently
designated on your Fund account.
We may also
need additional documents or a letter from a surviving joint owner before
selling the shares. Contact the J.P. Morgan Institutional Funds Service Center
for more details.
June
21, 2024 | 39
How
Your Account Works
(continued)
You can sell
your shares in one of two ways:
Through
Your Financial Intermediary
Tell your
Financial Intermediary which Fund’s shares you want to sell. Once the Fund
accepts your order, which must be submitted in good order to your Financial
Intermediary, the Fund will process it at the NAV calculated at the next cut-off
time. Your Financial Intermediary will be responsible for sending the necessary
documents to the J.P. Morgan Institutional Funds Service Center. This may not
occur on the day that an order is submitted to a Financial Intermediary. Your
Financial Intermediary may charge you for this service.
Your
Financial Intermediary may have earlier cut-off times for redemption
orders.
Certain Funds
have authorized one or more Financial Intermediaries to accept purchase and
redemption orders on their behalf. Such Financial Intermediaries are authorized
to designate other intermediaries to accept purchase and redemption orders on a
Fund’s behalf. The Funds will be deemed to have received a redemption order when
such Financial Intermediary or, if applicable, such Financial Intermediary’s
authorized designee, accepts the order. Such orders will be priced at the Fund’s
NAV next calculated after it is accepted by the Financial Intermediary. In such
cases, if requested by a Fund, a Financial Intermediary will be responsible for
providing information with regard to the time that such order for redemption was
received.
Orders
submitted through a Financial Intermediary that has not received such
authorization to accept orders on a Fund’s behalf will be priced at the Fund’s
NAV next calculated after it receives the order from the Financial Intermediary
and accepts it, which may not occur on the day submitted to the Financial
Intermediary. Since not all Financial Intermediaries have received such
authorization, you may wish to contact your Financial Intermediary to determine
if it has received such authorization.
If you hold
your Fund shares through a Financial Intermediary, the length of time that the
Funds typically expect to pay redemption proceeds depends on the method of
payment and the agreement between the Financial Intermediary and the Funds. For
redemption proceeds that are paid directly to you by a Fund, the Fund typically
expects to make payments by wire on the same business day. For payments that are
made to your Financial Intermediary for transmittal to you, the Funds expect to
pay redemption proceeds to the Financial Intermediary for transmittal to you on
the same business day or up to three business days following the Fund’s receipt
of the redemption order from the Financial Intermediary.
Except as set
forth in the section “Suspension of Redemptions” below, payment of redemption
proceeds may take longer than the time a Fund typically expects and may take up
to seven days (one day for the JPMorgan Prime Money Market Fund, JPMorgan U.S.
Government Money Market Fund and JPMorgan U.S. Treasury Plus Money Market Fund)
after the Fund receives the redemption order as permitted by the Investment
Company Act of 1940.
Through
the J.P. Morgan Institutional Funds Service Center
Call
1-800-766-7722. We will mail you a check or send the proceeds via electronic
transfer or wire to the bank account on our records.
Or
Or
Send a letter
signed by an authorized signer with your instructions to our regular or
overnight mailing address:
Regular
mailing address:
J.P. Morgan
Institutional Funds Service Center
P.O. Box 219265
Kansas City, MO 64121-9265
P.O. Box 219265
Kansas City, MO 64121-9265
Overnight
mailing address:
J.P. Morgan
Institutional Funds Service Center
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
The length of
time that the Funds typically expect to pay redemption proceeds depends on
whether payment is made by ACH, wire or check. The Funds typically expect to
make payments of redemption proceeds by wire on the same business day if the
Fund receives your order before the Fund’s final daily cut-off time. For payment
by check or ACH, the Funds typically expect to mail the check or pay redemption
proceeds by ACH on the next business day following the business day on which the
Fund receives your order before the Fund’s final daily cut-off time.
40 | J.P.
Morgan Money Market Funds
Additional
Information Regarding Redemptions
Generally,
all redemptions will be for cash. The J.P. Morgan Funds typically expect to
satisfy redemption requests by selling portfolio assets or by using holdings of
cash or cash equivalents. On a less regular basis, the Funds may also satisfy
redemption requests by borrowing from another Fund, by drawing on a line of
credit from a bank, or using other short-term borrowings from its custodian.
These methods may be used during both normal and stressed market conditions. In
addition to paying redemption proceeds in cash, if you redeem shares worth
$250,000 or more, the J.P. Morgan Funds reserve the right to pay part or all of
your redemption proceeds in readily marketable securities instead of cash. If
payment is made in securities, a Fund will value the securities selected in the
same manner in which it computes its NAV. This process minimizes the effect of
large redemptions on the Fund and its remaining shareholders. If you receive a
redemption in-kind, securities received by you may be subject to market risk and
you could incur taxable gains and brokerage or other charges in converting the
securities to cash. While the J.P. Morgan Funds do not routinely use redemptions
in-kind, the Funds reserve the right to use redemptions in-kind to manage the
impact of large redemptions on the Funds. Except as set forth in the section
“Suspension of Redemptions” below, redemption in-kind proceeds will typically be
made by delivering a pro-rata amount of a Fund’s holdings that are readily
marketable securities to the redeeming shareholder within seven days (one day
for the JPMorgan Prime Money Market Fund, JPMorgan U.S. Government Money Market
Fund and JPMorgan U.S. Treasury Plus Money Market Fund) after the Fund’s receipt
of the redemption order.
The Funds
reserve the right to change the manner in which shares are offered at any
time.
Liquidity
Fees
A Fund that does not qualify
as a Government MMF may impose a discretionary liquidity fee of up to
2%
of the value of
the shares redeemed if the adviser, as the delegate of the Board, determines it
is in the best interests of the Fund. Discretionary liquidity fees are most
likely to be imposed,
if at all,
during times of extraordinary market stress. The adviser generally expects that
a discretionary liquidity fee would be implemented, if at all, after a Fund has
notified Financial Intermediaries and shareholders that a liquidity fee will be
imposed (generally, applied to all redemption requests processed at the first
net asset value calculation on the next business day following the announcement
that the Fund will impose a liquidity fee), although the adviser, in its
discretion, may elect otherwise. In the event that a discretionary liquidity fee
is imposed, the adviser expects that for the duration of its implementation and
the day after which such is terminated, a Fund would strike only one NAV per
day, at the Fund’s last scheduled NAV calculation time.
The imposition of a
discretionary liquidity fee will be reported by a Fund to the SEC on Form N-MFP.
Such information will also be available on the Fund’s website
(www.jpmorganfunds.com). In addition, a Fund will communicate such action
through a supplement to its registration statement and may further communicate
such action through a press release or by other means. If a discretionary
liquidity fee is applied, it will be charged on all redemption orders submitted
after the effective time of the imposition of the fee. Discretionary liquidity
fees would reduce the amount you receive upon redemption of your
shares.
The adviser may,
in its
discretion, terminate a discretionary liquidity fee at any time if it believes
such action to be in the best interest of a Fund. When a discretionary liquidity
fee is in place, the Fund may elect not to permit the purchase of shares or to
subject the purchase of shares to certain conditions, which may include
affirmation of the purchaser’s knowledge that a discretionary liquidity fee is
in effect. When a discretionary liquidity fee is in place, shareholders will not
be permitted to exchange into or out of a Fund.
The Board may, in its
discretion, permanently suspend redemptions and liquidate if, among other
things, a Fund, at the end of a business day, has less than 10% of its total
assets invested in weekly liquid assets. With regard to the Retail Funds and the
Government Funds, the Board may suspend redemptions and liquidate the Fund if
the Board determines that the deviation between its amortized cost price per
share and its market-based NAV per share may result in material dilution or
other unfair results to investors or existing shareholders. Prior to suspending
redemptions, a Fund will notify the SEC of its decision to liquidate and suspend
redemptions.
There is some degree of
uncertainty with respect to the tax treatment of discretionary liquidity fees
received by Funds, and such tax treatment may be the subject of future guidance
issued by the Internal Revenue Service (“IRS”). If a Fund receives discretionary
liquidity fees, it will consider the appropriate tax treatment of such fees to
the Fund at such time.
Financial Intermediaries are
required to promptly take the steps requested by a Fund or its designees to
impose or help to implement a discretionary liquidity fee as requested from time
to time, including the rejection of orders due to the imposition of a fee or the
prompt re-confirmation of orders following a notification regarding the
implementation of a fee. If a discretionary liquidity fee is imposed, these
steps are expected to include the submission of trades on a gross, rather than
net, basis from the time of the effectiveness of the liquidity fee and the
submission of such order information to the Fund or its designee prior to the
next calculation of a Fund’s NAV. Unless otherwise agreed to between a Fund and
Financial Intermediary, the Fund will withhold discretionary liquidity fees on
behalf of Financial Intermediaries. With regard to such orders, a redemption
request that a Fund determines in its sole discretion has been received in good
order by the Fund or its designated agent prior to the imposition of a
discretionary liquidity fee may be paid by the Fund without the deduction of a
liquidity fee.
June
21, 2024 | 41
How
Your Account Works
(continued)
Exchanging
Fund Shares
Exchanges
between the JPMorgan Prime Money Market Fund and other J.P. Morgan Funds are not
permitted.
In general,
the same rules and procedures that apply to sales and purchases apply to
exchanges. An exchange order must be in good order and supported by all
appropriate documentation and information in proper form. The Funds may refuse
to honor incomplete orders. All exchanges are based upon the NAV that is next
calculated after the Fund receives your order, provided the exchange out of one
Fund must occur before the exchange into the other Fund. The redemption of your
shares will be processed at the next calculated NAV by the Fund whose shares you
are redeeming, and your purchase will be processed as of the same time if the
Fund into which you wish to exchange also calculates a NAV at such time or if
not, as of such Fund’s next calculated NAV. The exchange might not be completed
on the date on which the order is submitted and, in such case, the proceeds of
the redemption may remain uninvested until the exchange is completed. A
shareholder that exchanges out of shares of a Fund that accrues a daily
dividend, including a money market fund, will accrue a dividend on the day of
the redemption. A shareholder that exchanges into shares of a Fund that accrues
dividends daily will not accrue a dividend on the day of the purchase. However,
dividends will accrue on transactions processed as a redemption order followed
by a purchase order as set forth in the Sections “Buying Fund Shares” and
“Selling Fund Shares” above.
For all Funds
other than the Prime Money Market Fund:
Subject to
meeting any investment minimum and eligibility requirements, Empower Shares may
be exchanged for the same class of shares of another J.P. Morgan Fund, or any
other class of the same Fund.
The J.P.
Morgan Funds do not charge a fee for this privilege. In addition, the J.P.
Morgan Funds will provide 60 days’ written notice of any termination of or
material change to your exchange privilege.
Generally, an
exchange between J.P. Morgan Funds is considered a sale and generally results in
a capital gain or loss for federal income tax purposes. An exchange between
classes of shares of the same Fund is generally not taxable for federal income
tax purposes. You should consult your tax advisor before making an
exchange.
Following an
exchange, the fees and expenses of the new share class may be higher than those
of the class previously held by you. You should carefully review the prospectus
for the new share class, including information on the fees, expenses and
exchange features of the new share class, or contact your Financial Intermediary
for more information. You can obtain a prospectus for any J.P. Morgan Fund by
contacting your Financial Intermediary, by visiting www.jpmorganfunds.com, or by
calling 1-800-766-7722.
We reserve
the right to limit the number of exchanges or to refuse an exchange. Your
exchange privilege will be revoked if the exchange activity is considered
excessive.
You can
exchange your shares in one of two ways:
Through
Your Financial Intermediary
Tell your
Financial Intermediary which Fund’s shares you want to exchange. They will send
the necessary documents to the J.P. Morgan Institutional Funds Service Center.
Your Financial Intermediary may charge you for this service.
Certain Funds
have authorized one or more Financial Intermediaries to accept purchase and
redemption orders on their behalf. Such Financial Intermediaries are authorized
to designate other intermediaries to accept purchase and redemption orders on a
Fund’s behalf. The Funds will be deemed to have received an order when a
Financial Intermediary or, if applicable, that Financial Intermediary’s
authorized designee, accepts the order. Such orders will be priced at the Fund’s
NAV next calculated after it is accepted by the Financial Intermediary. In such
cases, if requested by a Fund, a Financial Intermediary will be responsible for
providing information with regard to the time that such order for exchange was
received.
Orders
submitted through a Financial Intermediary that has not received such
authorization to accept orders on a Fund’s behalf will be priced at the Fund’s
NAV next calculated after it receives the order from the Financial Intermediary
and accepts it, which may not occur on the day submitted to the Financial
Intermediary. Since not all Financial Intermediaries have received such
authorization, you may wish to contact your Financial Intermediary to determine
if it has received such authorization.
Through
the J.P. Morgan Institutional Funds Service Center
Call
1-800-766-7722 to ask for details.
The Funds
reserve the right to change the manner in which shares are offered at any
time.
42 | J.P.
Morgan Money Market Funds
Other
Information Concerning the Funds
The Funds use
reasonable procedures to confirm that instructions given by telephone are
genuine. These procedures include recording telephone instructions and asking
for personal identification. If these procedures are followed, the Funds will
not be responsible for any loss, liability, cost or expense of acting upon
unauthorized or fraudulent instructions; you bear the risk of loss.
If your
account value falls below the Funds’ minimum investment requirement, the Funds
reserve the right to redeem all of the remaining shares in your account and
close your account. Before these actions are taken, you will be given 60 days’
advance written notice in order to provide you with time to increase your
account balance to the required minimum, by purchasing sufficient shares, in
accordance with the terms of this prospectus.
You may not
always reach the J.P. Morgan Institutional Funds Service Center by telephone.
This may be true at times of unusual market changes and shareholder activity.
You can mail us your instructions or contact your Financial Intermediary. We may
modify or cancel the sale of shares by telephone without notice.
You may write
to our regular or overnight mailing address:
Regular
mailing address:
J.P. Morgan
Institutional Funds Service Center
P.O. Box 219265
Kansas City, MO 64121-9265
P.O. Box 219265
Kansas City, MO 64121-9265
Overnight
mailing address:
J.P. Morgan
Institutional Funds Service Center
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
c/o DST Systems, Inc.
Suite 219265
430 W. 7th Street
Kansas City, MO 64105-1407
Shares of the
JPMorgan U.S. Government Money Market Fund are intended to qualify as eligible
investments for federally chartered credit unions pursuant to Sections 107(7),
107(8) and 107(15) of the Federal Credit Union Act, Part 703 of the National
Credit Union Administration (NCUA) Rules and Regulations and NCUA Letter Number
155. A credit union should consult qualified legal counsel to determine whether
the Fund is a permissible investment under the laws applicable to
it.
The Funds and
their service providers may temporarily hold redemption proceeds from accounts
maintained directly with the Funds if there is a reasonable belief that
financial exploitation of a Specified Adult has occurred, is occurring, has been
attempted, or will be attempted. For purposes of this paragraph, the term
“Specified Adult” refers to an individual who is (A) a natural person age 65 and
older; or (B) a natural person age 18 and older who the member reasonably
believes has a mental or physical impairment that renders the individual unable
to protect his or her own interests.
Additional
Information that Applies to All Accounts: If unable to
verify your identity or that of any other person(s) authorized to act on your
behalf, or if potentially criminal activity is identified, the Funds and/or the
Distributor reserve the right to close your account or take such other action
they deem reasonable or required by law.
Suspension
of Redemptions
The Funds may
suspend your ability to redeem or may postpone payment for more than seven days
(more than one day for the JPMorgan Prime Money Market Fund, JPMorgan U.S.
Government Money Market Fund and JPMorgan U.S. Treasury Plus Money Market Fund)
when:
1.
Trading on
the NYSE is restricted;
2.
The NYSE is
closed (other than weekend and holiday closings);
3.
Federal
securities laws permit (with regard to JPMorgan Prime Money Market Fund,
JPMorgan U.S. Government Money Market Fund and JPMorgan U.S. Treasury Plus Money
Market Fund, upon the occurrence of any of the conditions set forth under
Section 22(e) of the Investment Company Act of 1940);
4.
The SEC has
permitted a suspension;
5.
An emergency
exists, as determined by the SEC; or
6.
The Board elects to implement
a liquidity fee on a Retail Fund or the JPMorgan Prime Money Market
Fund.
See
“Purchases, Redemptions and Exchanges” in the Statement of Additional
Information for more details about this process.
June
21, 2024 | 43
Shareholder
Information
Distributions
and Taxes
Each Fund has
elected to be treated and intends to qualify each taxable year as a regulated
investment company. A regulated investment company is not subject to tax at the
corporate level on income and gains from investments that are distributed to
shareholders. Each Fund’s failure to qualify as a regulated investment company
would result in corporate-level taxation and, consequently, a reduction in
income available for distribution to shareholders.
Each Fund can
earn income and realize capital gain. Each Fund deducts any expenses and then
pays out the earnings, if any, to shareholders as distributions.
Each Fund
declares dividends of net investment income, if any, daily, and distributes net
investment income, if any, at least monthly, so your shares can start earning
dividends on the day you buy them. Each Fund distributes such dividends monthly
in the form of additional Fund shares of the same class, unless you tell us that
you want distributions in cash or as a deposit in a pre-assigned bank account.
Such instruction must be received prior to the final calculation of the NAV on
date of payment. Dividends on a dividend reinvestment begin to accrue on the
date following the purchase date. In the event that a liquidity or redemption
gate is in place at the time that dividends are distributed, all distributions
will be made in form of cash. The taxation of dividends will not be affected by
the form in which you receive them. For each taxable year, each Fund will
distribute substantially all of its net investment income and short-term capital
gain. Net short-term capital gains, if any, may be included in a Fund’s daily
distribution. However, from time to time a Fund may not pay out all of the
income and/or gains generated from its investments, including for the purpose of
stabilizing its net asset value per share.
For federal income tax
purposes, dividends of net investment income (other than “exempt-interest
dividends” as described below) and any net short-term capital gain generally are
taxable as ordinary income. If, at the close of each quarter of its taxable
year, at least 50% of the value of the Fund’s total assets consists of
tax-exempt interest obligations, the Fund will be eligible to designate
distributions of interest derived from tax-exempt-interest obligations as
“exempt-interest dividends.” The Funds may consider certain repurchase
agreements to be U.S. Government Securities for purposes of Rule 2a-7; however,
such repurchase agreements are generally not expected to be considered as
obligations of the United States for purposes of any income tax exemption
applicable to interest paid on obligations of the United States. Accordingly,
income distributed by the Funds that is derived from repurchase agreements is
expected to be subject to federal, state and local income tax.
An additional
3.8% Medicare tax is imposed on certain net investment income (including
ordinary dividends and capital gain distributions received from a Fund and net
gains from redemptions or other taxable dispositions of Fund shares, but
excluding any exempt interest dividends from a Fund) of U.S. individuals,
estates and trusts to the extent that such person’s “modified adjusted gross
income” (in the case of an individual) or “adjusted gross income” (in the case
of an estate or trust) exceed certain threshold amounts.
Dividends of
interest earned on bonds issued by the U.S. government and its agencies may be
exempt from some types of state and local taxes.
A Fund’s
investments in certain debt obligations and asset backed securities may require
the Fund to accrue and distribute income not yet received. In order to generate
sufficient cash to make the requisite distributions, the Fund may be required to
liquidate other investments in its portfolio that it otherwise would have
continued to hold, including when it is not advantageous to do so.
If you
receive distributions that are properly reported as capital gain dividends, the
tax rate will be based on how long a Fund held a particular asset, not on how
long you have owned your shares. Each Fund expects substantially all of its
distributions of capital gain to be attributable to short-term capital gain
which is taxed as ordinary income.
Regarding the
Prime Money Market Fund, the Fund’s investment in foreign securities may be
subject to foreign withholding or other taxes. In that case, the Fund’s yield
would be decreased.
Any gain resulting from the
sale or exchange of Fund shares will be taxable as long-term or short-term gain,
depending upon how long you have held your shares. To avoid buying a dividend,
please check a Fund’s Dividend and Capital Gain Schedule before you invest.
There is some degree of uncertainty with respect to the tax treatment of
liquidity fees received by a Fund, and such tax treatment may be the subject of
future guidance issued by the IRS. If a Fund receives liquidity fees, it will
consider the appropriate tax treatment of such fees to the Fund at such
time.
Regarding the
Prime Money Market Fund, because the Fund is not expected to maintain a stable
share price, a sale or exchange of Fund shares may result in a capital gain or
loss for you. Unless you choose to adopt a simplified “NAV method” of accounting
(described below), such capital gain or loss generally will be treated either as
short-term if you held your Fund shares for one year or less, or long-term if
you held your Fund shares longer.
If you elect
to adopt the NAV method of accounting, rather than computing gain or loss on
every taxable disposition of Fund shares as described above, you would determine
your gain or loss based on the change in the aggregate value of your Fund shares
during a computation period (such as your taxable year), reduced by your net
investment (purchases minus sales) in those shares during that
44 | J.P.
Morgan Money Market Funds
period. Under
the NAV method, any resulting net capital gain or loss would be treated as
short-term capital gain or loss.
Please see
the Statement of Additional Information for additional discussion of the tax
consequences of the above-described and other investments to a Fund and its
shareholders.
The dates on
which net investment income and capital gain, if any, will be distributed are
available online at www.jpmorganfunds.com.
Early in each
calendar year, each Fund will send you a notice showing the amount of
distributions you received during the preceding calendar year and the tax status
of those distributions.
Gains, if
any, resulting from the sale or exchange of your shares generally will be
subject to tax.
Any investor
for whom a Fund does not have a valid Taxpayer Identification Number may be
subject to backup withholding.
The Funds are
not intended for foreign shareholders. Any foreign shareholders would generally
be subject to U.S. tax withholding on distributions by a Fund, as discussed in
the Statement of Additional Information.
Distributions
by the Fund to retirement plans and other entities that qualify for tax-exempt
or tax-deferred treatment under federal income tax laws will generally not be
taxable. Special tax rules apply to investments through such plans. The tax
considerations described in this section do not apply to such tax-exempt or
tax-deferred entities or accounts. You should consult your tax advisor to
determine the suitability of the Fund as an investment and the tax treatment of
distributions.
The above is
a general summary of the tax implications of investing in the Funds. Because
each investor’s tax consequences are unique, please consult your tax advisor to
see how investing in the Funds will affect your own tax situation.
|
IMPORTANT
TAX REPORTING CONSIDERATIONS |
|
Your
Financial Intermediary or the Funds (if you hold your shares in a Fund
direct account) is required to report gains and losses to
the
IRS in connection with redemptions of shares by S corporations purchased
after January 1, 2012. If a shareholder is a corporation
and
has not instructed the Fund that it is a C corporation in its account
application or by written instruction to J.P. Morgan Funds
Services,
P.O. Box 219143, Kansas City, MO 64121-9145, the Funds will treat the
shareholder as an S corporation and file a Form
1099-B. |
Shareholder
Statements and Reports
The Funds
will send you transaction confirmation statements and account statements at
least quarterly. If your account is held through a Financial Intermediary, you
may receive your statements and confirmations from your Financial Intermediary
on a different schedule. Please review these statements carefully. The Funds
will correct errors if notified within one year of the date printed on the
transaction confirmation or account statement. Your Financial Intermediary may
have a different cut-off time. J.P. Morgan Funds will charge a fee for requests
for statements that are older than two years. Please retain all of your
statements, as they could be needed for tax purposes.
To reduce
expenses and conserve natural resources, the J.P. Morgan Funds will deliver a
single copy of prospectuses and financial reports to individual investors who
share a residential address, provided they have the same last name or the J.P.
Morgan Funds reasonably believe they are members of the same family. If you
would like to receive separate mailings, please call 1-800-480-4111 and the J.P.
Morgan Funds will begin individual delivery within 30 days. If you would like to
receive these documents by e-mail, please visit www.jpmorganfunds.com and sign
up for electronic delivery.
If you are
the record owner of your Fund shares (that is, you did not use a Financial
Intermediary to buy your shares), you may access your account statements at
www.jpmorganfunds.com.
After each
fiscal halfyear you will receive a financial report from the Funds. In addition,
the Funds will periodically send you proxy statements and other
reports.
If you have
any questions or need additional information, please write to the J.P. Morgan
Institutional Funds Service Center at P.O. Box 219265, Kansas City, MO
64121-9265 or call 1-800-766-7722.
Portfolio
Holdings Disclosure
Each business
day, each Fund will make available upon request an uncertified complete schedule
of its portfolio holdings as of the prior business day.
June
21, 2024 | 45
Shareholder
Information
(continued)
Not later
than 60 days after the end of each fiscal quarter, each Fund will make
available, upon request, a complete schedule of its portfolio holdings as of the
last day of that quarter. In addition to providing hard copies upon request, the
Funds will post these quarterly schedules on the J.P. Morgan Funds’ website at
www.jpmorganfunds.com and on the SEC’s website at www.sec.gov.
Not later
than five business days after the end of each calendar month, each Fund will
post detailed information regarding its portfolio holdings, as well as its
dollar-weighted average maturity and dollar-weighted average life, as of the
last day of that month on the J.P. Morgan Funds’ website and provide a link to
the SEC website where the most recent twelve months of publicly available
information filed by the Fund may be obtained.
In addition,
not later than five business days after the end of each calendar month, each
Fund will file a schedule of detailed information regarding its portfolio
holdings as of the last day of that month with the SEC. These filings will be
publicly available on the J.P. Morgan Funds’ website at www.jpmorganfunds.com
and the SEC’s website upon filing.
Shareholders
may request portfolio holdings schedules at no charge by calling 1-800-766-7722.
A description of the Funds' policies and procedures with respect to the
disclosure of the Funds' portfolio holdings is available in the Statement of
Additional Information.
In addition,
each Fund may post portfolio holdings on the J.P. Morgan Funds’ website at
www.jpmorganfunds.com or on the J.P. Morgan external websites.
On each
business day, all Funds will post their levels of daily and weekly liquid assets
as of the final time that the net asset value was calculated for the Fund on the
previous business day and each business day during the preceding six months on
the J.P. Morgan Funds’ website.
On each
business day, all Funds will post information regarding their net
inflows/outflows and as of the final time that the net asset value was
calculated for the Fund on the previous business day and each business day
during the preceding six months on the J.P. Morgan Funds’ website.
Disclosure
of Market-Based Net Asset Value
On each
business day, each Fund will post its market-based NAV per share (Market-Based
NAV) to four decimal places shown as of the final time that the net asset value
was calculated for the Fund on the previous business day and each business day
for the Fund during the preceding six months on the J.P. Morgan Funds’
website.
The
Market-Based NAV of the Government Funds will be provided for informational
purposes only. For purposes of transactions in the shares of each Retail Fund or
Government Fund, in accordance with Rule 2a-7, the price for shares will
continue to be the NAV per share of the applicable share class, calculated using
the amortized cost method to two decimals, as described under “How Your Account
Works.”
46 | J.P.
Morgan Money Market Funds
What
the Terms Mean
Asset-backed
securities: Interests in
a stream of payments from specific assets, such as auto or credit card
receivables.
Commercial
paper: Short-term
securities with maturities of 1 to 270 days which are issued by banks,
corporations and others.
Daily
liquid assets: Means (i)
cash; (ii) direct obligations of the U.S. Government; (iii) securities that will
mature or are subject to a demand feature that is exercisable and payable within
one business day and (iv) amounts receivable and due unconditionally within one
business day on pending sales of portfolio securities.
Demand
notes: Debt
securities with no set maturity date. The investor can generally demand payment
of the principal at any time.
Distribution
fee: Covers the
cost of the distribution system used to sell shares to the public.
Dollar-weighted
average maturity: The average
maturity of the Fund is the average amount of time until the organization(s)
that issued the debt securities in the Fund’s portfolio must pay off the
principal amount of the debt. This calculation may utilize maturity shortening
provisions under applicable rules. “Dollar- weighted” means the larger the
dollar value of debt security in the Fund, the more weight it gets in
calculating this average. To calculate the dollar-weighted average maturity, the
Fund may treat a variable or floating rate security as having a maturity equal
to the time remaining to the security’s next interest rate reset date rather
than the security’s actual maturity date.
Dollar-weighted
average life: The dollar
weighted average portfolio maturity without reference to the exceptions used for
variable or floating rate securities regarding the use of the date of interest
rate resets in lieu of the security’s actual maturity date.
Financial
Intermediaries: Means MVW
Financial Intermediaries and Approved Financial Intermediaries, as defined in
the “Purchase and Sale of Fund Shares” section of each Risk/Return
Summary.
Floating
rate securities: Securities
whose interest rates adjust automatically whenever a particular interest rate
changes.
GSE: A financial
services corporation created by the United States Congress, such as Federal
National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage
Corporation, or Freddie Mac. Certain securities issued by such corporations may
be subject to mortgage-related securities risk.
Liquidity: The ability
to easily convert investments into cash without losing a significant amount of
money in the process.
Liquidity
fees: Certain
Funds’ policies and procedures permit the Fund to impose liquidity fees on
redemptions of up to 2%
of the value of
the shares redeemed if the adviser,
as the delegate
of the Board, determines it is in the best interests of the Fund.
Management
fee: A fee paid
to the investment adviser to manage the Fund and make decisions about buying and
selling the Fund’s investments.
Municipal
lease obligations: These
provide participation in municipal lease agreements and installment purchase
contracts, but are not part of general obligations of the
municipality.
Municipal
obligations: Debt
securities issued by or on behalf of states, territories and possessions or by
their agencies or other groups with authority to act for them. Interest on
certain municipal obligations, generally issued as general obligation and
revenue bonds, is exempt from federal taxation and state and/or local taxes in
the state where issued.
Other
expenses: Miscellaneous
items, including transfer agency, administration, custody and registration
fees.
Qualified
U.S. and foreign banks: These
include (i) U.S. banks with more than $1 billion in total assets, and foreign
branches of these banks; or (ii) foreign banks with the equivalent of more than
$1 billion in total assets and which have branches or agencies in the U.S. or
(iii) other U.S. or foreign commercial banks which the Fund’s adviser judges to
have comparable credit standing.
Repurchase
agreement: A special
type of a short-term investment. A dealer sells securities to a Fund and agrees
to buy them back later for a set price. This set price includes interest. In
effect, the dealer is borrowing the Fund’s money for a short time, using the
securities as collateral.
Reverse
repurchase agreement: Contract
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.
Service
fee: A fee to
cover the cost of paying Financial Intermediaries to provide certain support
services for your account.
U.S.
government securities: Debt
instruments (Treasury bills, notes, and bonds) guaranteed by the U.S. government
or its agencies or instrumentalities for the timely payment of principal and
interest.
Variable
rate securities: Securities
whose interest rates are periodically adjusted.
Weekly
liquid assets: Means (i)
cash; (ii) direct obligations of the U.S. Government; (iii) Government
securities issued by a person controlled or supervised by and acting as an
instrumentality of the Government of the United States pursuant to authority
granted by the Congress of the United States, that are issued at a discount to
the principal amount to be repaid at maturity without the provision
June
21, 2024 | 47
What
the Terms Mean
(continued)
for the
payment of interest and have a remaining maturity of 60 days or less; (iv)
securities that will mature or are subject to a demand feature that is
exercisable and payable within five business days and (v) amounts receivable and
due unconditionally within five business days on pending sales of portfolio
securities.
48 | J.P.
Morgan Money Market Funds
Financial
Highlights
The financial
highlights table is intended to help you understand each Fund’s financial
performance for the past five fiscal years or the period of a Fund’s operations,
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). The information for each period presented 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
is available upon request.
To the extent
a Fund invests in other funds, the Total Annual Operating Expenses included in
the Fee Table will not correlate to the ratio of expenses to average net assets
in the financial highlights below.
|
|
Per
share operating performance | ||||||
|
|
|
Investment
operations |
Distributions | ||||
|
|
Net asset
value,
beginning
of
period |
Net
investment
income
(loss) |
Net
realized
and
unrealized
gains
(losses) on
investments |
Total from
investment
operations |
Net
investment
income |
Net
realized
gain |
Total
distributions |
|
JPMorgan
Prime Money Market Fund |
|
|
|
|
|
|
|
|
Empower |
|
|
|
|
|
|
|
|
Year
Ended February 29, 2024 |
$1.0005 |
$0.0526 |
$(0.0001) |
$0.0525 |
$(0.0526) |
– |
$(0.0526) |
|
Year
Ended February 28, 2023 |
1.0002 |
0.0240 |
0.0003 |
0.0243 |
(0.0240) |
– |
(0.0240) |
|
Year
Ended February 28, 2022 |
1.0005 |
0.0007 |
(0.0003) |
0.0004 |
(0.0007) |
– |
(0.0007) |
|
February
23, 2021 (f) through February 28, 2021 |
1.0005 |
–(e) |
–(e) |
–(e) |
–(e) |
– |
–(e) |
(a)
Annualized for
periods less than one year, unless otherwise noted.
(b)
Not annualized
for periods less than one year.
(c)
Includes interest expense, if
applicable, which is less than 0.005% unless otherwise noted.
(d)
|
Voluntary
waivers were as follows: |
February
29, 2024 |
February
28, 2023 |
February
28, 2022 |
February
28, 2021 |
|
Empower |
— |
0.02% |
0.08% |
—(a) |
(a)Amount rounds to less than 0.005%.
(e)
Amount rounds to less than
$0.00005.
(f)
Commencement of offering of
class of shares.
(g)
Amount rounds
to less than 0.005%.
50 | J.P.
Morgan Money Market Funds
|
|
Ratios/Supplemental
data | ||||
|
|
|
|
Ratios
to average net assets(a) | ||
|
Net asset
value,
end of
period |
Total
return(b) |
Net assets,
end of
period
(000's) |
Net
expenses(c) |
Net
investment
income
(loss) |
Expenses
without
waivers and
reimbursements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.0004 |
5.38% |
$463,298 |
0.18% |
5.28% |
0.18% |
|
1.0005 |
2.46 |
355,132 |
0.16(d) |
2.15 |
0.19 |
|
1.0002 |
0.04 |
564,948 |
0.10(d) |
0.07 |
0.20 |
|
1.0005 |
0.00(g) |
25 |
0.12(d) |
0.10 |
0.19 |
June
21, 2024 | 51
Financial
Highlights
(continued)
|
|
Per
share operating performance | ||||||
|
|
|
Investment
operations |
Distributions | ||||
|
|
Net asset
value,
beginning
of
period |
Net
investment
income
(loss)(b) |
Net
realized
and
unrealized
gains
(losses) on
investments |
Total from
investment
operations |
Net
investment
income |
Net
realized
gain |
Total
distributions |
|
JPMorgan
100% U.S. Treasury Securities Money
Market
Fund |
|
|
|
|
|
|
|
|
Empower |
|
|
|
|
|
|
|
|
Year
Ended February 29, 2024 |
$1.00 |
$0.05 |
–(e) |
$0.05 |
$(0.05) |
$— |
$(0.05) |
|
Year
Ended February 28, 2023 |
1.00 |
0.02 |
–(e) |
0.02 |
(0.02) |
–(e) |
(0.02) |
|
Year
Ended February 28, 2022 |
1.00 |
–(e) |
–(e) |
–(e) |
–(e) |
–(e) |
–(e) |
|
February
23, 2021 (g) through February 28, 2021 |
1.00 |
–(e) |
–(e) |
–(e) |
–(e) |
– |
–(e) |
(a)
Annualized for
periods less than one year, unless otherwise noted.
(b)
Calculated
based upon average shares outstanding.
(c)
Not annualized
for periods less than one year.
(d)
Includes interest expense, if
applicable, which is less than 0.005% unless otherwise noted.
(e)
Amount rounds
to less than $0.005.
(f)
|
Voluntary
waivers were as follows: |
February
29, 2024 |
February
28, 2023 |
February
28, 2022 |
February
28, 2021 |
|
Empower |
— |
—(a) |
0.13% |
0.12% |
(a)Amount rounds to less than 0.005%.
(g)
Commencement
of offering of class of shares.
(h)
Amount rounds
to less than 0.005%.
52 | J.P.
Morgan Money Market Funds
|
|
Ratios/Supplemental
data | ||||
|
|
|
|
Ratios
to average net assets(a) | ||
|
Net asset
value,
end of
period |
Total
return(c) |
Net assets,
end of
period
(0.00's) |
Net
expenses(d) |
Net
investment
income
(loss) |
Expenses
without
waivers and
reimbursements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1.00 |
5.14% |
$1,083,842 |
0.18% |
5.11% |
0.18% |
|
1.00 |
2.10 |
218,952 |
0.18(f) |
3.29 |
0.19 |
|
1.00 |
0.01 |
29,519 |
0.04(f) |
0.01 |
0.18 |
|
1.00 |
0.00(h) |
25 |
0.07(f) |
0.01 |
0.20 |
June
21, 2024 | 53
Financial
Highlights
(continued)
|
|
Per
share operating performance | |||||
|
|
|
Investment
operations |
Distributions |
| ||
|
|
Net asset
value,
beginning
of
period |
Net
investment
income
(loss)(b) |
Net
realized
and
unrealized
gains
(losses) on
investments |
Total from
investment
operations |
Net
investment
income |
Net asset
value,
end of
period |
|
JPMorgan
U.S. Government Money Market Fund |
|
|
|
|
|
|
|
Empower |
|
|
|
|
|
|
|
Year
Ended February 29, 2024 |
$1.00 |
$0.05 |
$—(e) |
$0.05 |
$(0.05) |
$1.00 |
|
Year
Ended February 28, 2023 |
1.00 |
0.02 |
–(e) |
0.02 |
(0.02) |
1.00 |
|
Year
Ended February 28, 2022 |
1.00 |
–(e) |
–(e) |
—(e) |
–(e) |
1.00 |
|
February
23, 2021 (g) through February 28, 2021 |
1.00 |
–(e) |
–(e) |
—(e) |
–(e) |
1.00 |
(a)
Annualized for
periods less than one year, unless otherwise noted.
(b)
Calculated
based upon average shares outstanding.
(c)
Not annualized
for periods less than one year.
(d)
Includes interest expense, if
applicable, which is less than 0.005% unless otherwise noted.
(e)
Amount rounds
to less than $0.005.
(f)
|
Voluntary
waivers were as follows: |
February
29, 2024 |
February
28, 2023 |
February
28, 2022 |
February
28, 2021 |
|
Empower |
— |
0.03% |
0.13% |
—(a) |
(a)Amount rounds to less than 0.005%.
(g)
Commencement
of offering of class of shares.
(h)
Amount rounds
to less than 0.005%.
54 | J.P.
Morgan Money Market Funds
|
Ratios/Supplemental
data | ||||
|
|
|
Ratios
to average net assets (a) | ||
|
Total
return(c) |
Net assets,
end of
period
(000's) |
Net
expenses(d) |
Net
Investment
income
(loss) |
Expenses
without
waivers and
reimbursements |
|
|
|
|
|
|
|
|
|
|
|
|
|
5.19% |
$7,799,631 |
0.18% |
5.10% |
0.18% |
|
2.20 |
5,393,885 |
0.15(f) |
2.45 |
0.19 |
|
0.03 |
4,160,732 |
0.04(f) |
0.03 |
0.18 |
|
0.00(h) |
500,028 |
0.06(f) |
0.04 |
0.19 |
June
21, 2024 | 55
Financial
Highlights
(continued)
|
|
Per
share operating performance | |||||
|
|
|
Investment
operations |
Distributions |
| ||
|
|
Net asset
value,
beginning
of
period |
Net
investment
income
(loss)(b) |
Net
realized
and
unrealized
gains
(losses) on
investments |
Total from
investment
operations |
Net
investment
income |
Net asset
value,
end of
period |
|
JPMorgan
U.S. Treasury Plus Money Market Fund |
|
|
|
|
|
|
|
Empower |
|
|
|
|
|
|
|
Year
Ended February 29, 2024 |
$1.00 |
$0.05 |
$—(e) |
$0.05 |
$(0.05) |
$1.00 |
|
Year
Ended February 28, 2023 |
1.00 |
0.02 |
—(e) |
0.02 |
(0.02) |
1.00 |
|
Year
Ended February 28, 2022 |
1.00 |
—(e) |
—(e) |
—(e) |
—(e) |
1.00 |
|
February
23, 2021 (g) through February 28, 2021 |
1.00 |
—(e) |
—(e) |
—(e) |
—(e) |
1.00 |
(a)
Annualized for
periods less than one year, unless otherwise noted.
(b)
Calculated
based upon average shares outstanding.
(c)
Not annualized
for periods less than one year.
(d)
Includes interest expense, if
applicable, which is less than 0.005% unless otherwise noted.
(e)
Amount rounds
to less than $0.005.
(f)
|
Voluntary
waivers were as follows: |
February
29, 2024 |
February
28, 2023 |
February
28, 2022 |
February
28, 2021 |
|
Empower |
— |
0.01% |
0.13% |
—(a) |
(a)Amount rounds to less than 0.005%.
(g)
Commencement
of offering of class of shares.
(h)
Amount rounds
to less than 0.005%.
56 | J.P.
Morgan Money Market Funds
|
Ratios/Supplemental
data | ||||
|
|
|
Ratios
to average net assets(a) | ||
|
Total
return(c) |
Net assets,
end of
period
(000’s) |
Net
expenses(d) |
Net
investment
income
(loss) |
Expenses
without
waivers and
reimbursements |
|
|
|
|
|
|
|
|
|
|
|
|
|
5.18% |
$63,083 |
0.18% |
4.82% |
0.18% |
|
2.18 |
1,206,832 |
0.17(f) |
2.94 |
0.19 |
|
0.01 |
112,014 |
0.05(f) |
0.01 |
0.18 |
|
0.00(h) |
25 |
0.06(f) |
0.02 |
0.18 |
June
21, 2024 | 57
Additional
Fee and Expense Information
ADDITIONAL
FEE AND EXPENSE INFORMATION
FOR JPMT II FUNDS AND FORMER ONE GROUP MUTUAL FUNDS
FOR JPMT II FUNDS AND FORMER ONE GROUP MUTUAL FUNDS
In connection
with the 2004 final settlement between Banc One Investment Advisors Corporation
(BOIA), subsequently known as JPMorgan Investment Advisors Inc. (JPMIA), with
the New York Attorney General arising out of market timing of certain mutual
funds advised by BOIA, BOIA agreed, among other things, to disclose hypothetical
information regarding investment and expense information to Fund shareholders.
The hypothetical examples are provided for JPMT II Funds or those Funds that
have acquired the assets and liabilities of a JPMT II Fund or a series of One
Group Mutual Funds.
The “Gross
Expense Ratio” includes the contractual expenses that make up the investment
advisory, administration and service fees, Rule 12b-1 distribution fees, fees
paid to vendors not affiliated with JPMIM that provide services to the Funds and
other fees and expenses of the Funds. The “Net Expense Ratio” is Gross Expenses
less any fee waivers or expense reimbursements memorialized in a written
contract between the Funds and JPMIM and/or its affiliates, as
applicable.
|
|
|
|
|
|
|
Class |
Net
Expense Ratio |
Gross
Expense Ratio |
|
JPMorgan
Prime Money Market Fund |
Empower |
0.18
% |
0.18
% |
|
JPMorgan
100% U.S. Treasury Securities Money Market Fund |
Empower |
0.18
% |
0.18
% |
|
JPMorgan
U.S. Government Money Market Fund |
Empower |
0.18
% |
0.18
% |
|
JPMorgan
U.S. Treasury Plus Money Market Fund |
Empower |
0.18
% |
0.18
% |
A Fund’s
annual return is reduced by its fees and expenses for that year. The examples
below are intended to help you understand the annual and cumulative impact of
the Fund’s fees and expenses on your investment through a hypothetical
investment of $10,000 held for the next 10 years. The examples assume the
following:
●
On June 21, 2024, you invest
$10,000 in the Fund and you will hold the shares for the entire 10 year
period;
●
Your
investment has a 5% return each year;
●
The Fund’s
operating expenses remain at the levels discussed below and are not affected by
increases or decreases in Fund assets over time;
●
At the time
of purchase, any applicable initial sales charges (loads) are deducted;
and
●
There is no
sales charge (load) on reinvested dividends.
●
The annual
costs are calculated using the Net Expense Ratios for the period through the
expiration of any fee waivers or expense reimbursements memorialized in a
written contract between the Funds and JPMIM and/or its affiliates; and the
Gross Expense Ratios thereafter.
“Gross
Cumulative Return” shows what the cumulative return on your investment at the
end of each 12-month period (year) ended June 30 would be if Fund expenses are
not deducted. “Net Cumulative Return” shows what the cumulative return on your
investment at the end of each year would be assuming Fund expenses are deducted
each year in the amount shown under “Annual Costs.” “Net Annual Return” shows
what effect the “Annual Costs” will have on the assumed 5% annual return for
each year.
Your
actual costs may be higher or lower than those shown.
58 | J.P.
Morgan Money Market Funds
|
JPMorgan
Prime Money Market Fund | ||||
|
|
Empower
Shares | |||
|
Period
Ended |
Annual
Costs |
Gross
Cumulative
Return |
Net
Cumulative
Return |
Net
Annual
Return |
|
June
30, 2025 |
$18 |
5.00% |
4.82% |
4.82% |
|
June
30, 2026 |
19 |
10.25 |
9.87 |
4.82 |
|
June
30, 2027 |
20 |
15.76 |
15.17 |
4.82 |
|
June
30, 2028 |
21 |
21.55 |
20.72 |
4.82 |
|
June
30, 2029 |
22 |
27.63 |
26.54 |
4.82 |
|
June
30, 2030 |
23 |
34.01 |
32.64 |
4.82 |
|
June
30, 2031 |
24 |
40.71 |
39.03 |
4.82 |
|
June
30, 2032 |
26 |
47.75 |
45.73 |
4.82 |
|
June
30, 2033 |
27 |
55.13 |
52.76 |
4.82 |
|
June
30, 2034 |
28 |
62.89 |
60.12 |
4.82 |
|
JPMorgan
100% U.S. Treasury Securities Money Market Fund | ||||
|
|
Empower
Shares | |||
|
Period
Ended |
Annual
Costs |
Gross
Cumulative
Return |
Net
Cumulative
Return |
Net
Annual
Return |
|
June
30, 2025 |
$18 |
5.00% |
4.82% |
4.82% |
|
June
30, 2026 |
19 |
10.25 |
9.87 |
4.82 |
|
June
30, 2027 |
20 |
15.76 |
15.17 |
4.82 |
|
June
30, 2028 |
21 |
21.55 |
20.72 |
4.82 |
|
June
30, 2029 |
22 |
27.63 |
26.54 |
4.82 |
|
June
30, 2030 |
23 |
34.01 |
32.64 |
4.82 |
|
June
30, 2031 |
24 |
40.71 |
39.03 |
4.82 |
|
June
30, 2032 |
26 |
47.75 |
45.73 |
4.82 |
|
June
30, 2033 |
27 |
55.13 |
52.76 |
4.82 |
|
June
30, 2034 |
28 |
62.89 |
60.12 |
4.82 |
|
JPMorgan
U.S. Government Money Market Fund | ||||
|
|
Empower
Shares | |||
|
Period
Ended |
Annual
Costs |
Gross
Cumulative
Return |
Net
Cumulative
Return |
Net
Annual
Return |
|
June
30, 2025 |
$18 |
5.00% |
4.82% |
4.82% |
|
June
30, 2026 |
19 |
10.25 |
9.87 |
4.82 |
|
June
30, 2027 |
20 |
15.76 |
15.17 |
4.82 |
|
June
30, 2028 |
21 |
21.55 |
20.72 |
4.82 |
|
June
30, 2029 |
22 |
27.63 |
26.54 |
4.82 |
|
June
30, 2030 |
23 |
34.01 |
32.64 |
4.82 |
|
June
30, 2031 |
24 |
40.71 |
39.03 |
4.82 |
|
June
30, 2032 |
26 |
47.75 |
45.73 |
4.82 |
|
June
30, 2033 |
27 |
55.13 |
52.76 |
4.82 |
|
June
30, 2034 |
28 |
62.89 |
60.12 |
4.82 |
June
21, 2024 | 59
Additional
Fee and Expense Information
(continued)
|
JPMorgan
U.S. Treasury Plus Money Market Fund | ||||
|
|
Empower
Shares | |||
|
Period
Ended |
Annual
Costs |
Gross
Cumulative
Return |
Net
Cumulative
Return |
Net
Annual
Return |
|
June
30, 2025 |
$18 |
5.00% |
4.82% |
4.82% |
|
June
30, 2026 |
19 |
10.25 |
9.87 |
4.82 |
|
June
30, 2027 |
20 |
15.76 |
15.17 |
4.82 |
|
June
30, 2028 |
21 |
21.55 |
20.72 |
4.82 |
|
June
30, 2029 |
22 |
27.63 |
26.54 |
4.82 |
|
June
30, 2030 |
23 |
34.01 |
32.64 |
4.82 |
|
June
30, 2031 |
24 |
40.71 |
39.03 |
4.82 |
|
June
30, 2032 |
26 |
47.75 |
45.73 |
4.82 |
|
June
30, 2033 |
27 |
55.13 |
52.76 |
4.82 |
|
June
30, 2034 |
28 |
62.89 |
60.12 |
4.82 |
60 | J.P.
Morgan Money Market Funds
How
to Reach Us
MORE
INFORMATION
For investors
who want more information on these Funds the following documents are available
free upon request:
ANNUAL
AND SEMI-ANNUAL REPORTS
Our annual
and semi-annual reports contain more information about each Fund’s investments
and performance.
STATEMENT
OF ADDITIONAL INFORMATION (SAI)
The SAI
contains more detailed information about the Funds and their policies. It is
incorporated by reference into this prospectus. This means, by law, it is
considered to be part of this prospectus.
You can get a
free copy of these documents and other information, or ask us any questions, by
calling us at 1-800-766-7722 or writing to:
J.P.
Morgan Institutional Funds Service Center
P.O. Box 219265
Kansas City, MO 64121-9265
P.O. Box 219265
Kansas City, MO 64121-9265
If you buy
your shares through a Financial Intermediary, you should contact that Financial
Intermediary directly for more information. You can also find information online
at www.jpmorganfunds.com.
Reports, a
copy of the SAI, and other information about the Funds are also available on the
EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and
copies of this information may be obtained, after paying a duplicating fee, by
electronic request at the following E-mail address:
[email protected].
Investment
Company Act File Nos.
|
JPMorgan
Trust I |
811-21295 |
|
JPMorgan
Trust II |
811-4236 |
©JPMorgan Chase & Co. 2024.
All rights reserved. June 2024.
PR-MMEMP-724