Mutual Fund Summary Prospectus (497k)
February 11 2014 - 4:20PM
Edgar (US Regulatory)
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Summary Prospectus November 1, 2013, as supplemented February 11, 2014
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JPMorgan Disciplined Equity Fund
Class/Ticker: Institutional/JPIEX
Before you invest, you may want to review the Funds Prospectus, which contains more information about the Fund and its risks. You can find the Funds Prospectus and other information about the
Fund, including the Statement of Additional Information, online at www.jpmorganfunds.com/funddocuments. You can also get this information at no cost by calling 1-800-480-4111 or by sending an e-mail request to Funds.Website.Support@jpmorganfunds.com
or by asking any financial intermediary that offers shares of the Fund. The Funds Prospectus and Statement of Additional Information, both dated November 1, 2013, as supplemented, are incorporated by reference into this Summary Prospectus.
What is the goal of the Fund?
The Fund seeks to provide a consistently high total return from a broadly diversified portfolio of equity securities with risk characteristics similar to the Standard and Poors 500 Composite Stock
Price Index (S&P 500 Index).
Fees and Expenses of the Fund
The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.
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ANNUAL FUND OPERATING EXPENSES
(Expenses that you pay each year as a percentage of the value
of your investment)
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Institutional
Class
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Management Fees
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0.25
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%
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Distribution (Rule
12b-1)
Fees
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NONE
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Other Expenses
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0.22
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Shareholder Service Fees
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0.10
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Remainder of Other Expenses
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0.12
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Total Annual Fund Operating Expenses
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0.47
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Fee Waivers and Expense Reimbursements
1
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(0.02
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Total Annual Fund Operating Expenses After Fee Waivers and Expense Reimbursements
1
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0.45
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1
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The Funds adviser, administrator and distributor (the Service Providers) have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual
Fund Operating Expenses of Institutional Class Shares (excluding acquired fund fees and expenses, dividend expenses relating to short sales, interest, taxes, expenses related to litigation and potential litigation, extraordinary expenses and
expenses related to the Board of Trustees deferred compensation plan) exceed 0.45% of their average daily net assets. This contract cannot be terminated prior to 11/1/14 at which time the Service Providers will determine whether or not to
renew or revise it.
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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 $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table
through 10/31/14 and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.
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WHETHER OR NOT YOU SELL YOUR SHARES, YOUR
COST WOULD BE:
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1 Year
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3 Years
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5 Years
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10 Years
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INSTITUTIONAL CLASS SHARES ($)
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46
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149
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261
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590
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, or in the Example, affect the Funds performance. During the Funds most recent fiscal year,
the Funds portfolio turnover rate was 178% of the average value of its portfolio.
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What are the Funds main investment strategies?
Under normal circumstances, the Fund invests at least 80% of its Assets in equity securities. Assets means net assets plus the amount of
borrowings for investment purposes. In implementing this strategy, the Fund primarily invests in the common stocks of U.S. companies with market capitalizations similar to those within the universe of the S&P 500 Index. As of the last
reconstitution of the S&P 500 Index on September 30, 2013, the market capitalizations of the companies in the index ranged from $2.6 billion to $443 billion. Sector by sector, the Funds weightings are similar to those of the
S&P 500 Index. Within each sector, the Fund modestly overweights equity securities that it considers undervalued or fairly valued while modestly underweighting or not holding equity securities that appear overvalued. By owning a large number of
equity securities within the S&P 500 Index, with an emphasis on those that appear undervalued or fairly valued, the Fund seeks returns that modestly exceed those of the S&P 500 Index over the long term with a modest level of volatility.
Derivatives, which are instruments that have a value based on another instrument, exchange rate or index, may be used as substitutes for
securities in which the Fund can invest. To the extent the Fund uses derivatives, the Fund will primarily use futures contracts to more effectively gain targeted equity exposure from its cash positions.
Investment Process: In managing the Fund, the adviser employs a three-step process that combines research, valuation and stock selection. The adviser takes
an
in-depth
look at company prospects over a period as long as five years, which is designed to provide insight into a companys real growth potential. The research findings allow the adviser to rank the
companies in each sector group according to their relative value.
On behalf of the Fund, the adviser then buys and sells equity securities, using
the research and valuation rankings as a basis. In general, the adviser buys equity securities that are identified as undervalued and considers selling them when they appear overvalued. Along with attractive valuation, the adviser often considers a
number of other criteria:
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catalysts that could trigger a rise in a stocks price
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Impact on the overall risk of the portfolio relative to the benchmark
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high perceived potential reward compared to perceived potential risk
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possible temporary mispricings caused by apparent market overreactions
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The Funds Main Investment Risks
The Fund is subject to management risk and may not achieve
its objective if the advisers expectations regarding particular securities or markets are not met.
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.
Equity Market
Risk.
The price of equity securities may rise or fall because of changes in the broad market or changes in a companys financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting
individual companies, sectors or industries selected for the Funds portfolio or the securities market as a whole, such as changes in economic or political conditions. When the value of the Funds securities goes down, your investment in
the Fund decreases in value.
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.
Mid Cap Company Risk.
Investments in mid cap companies may be riskier, more volatile and more vulnerable to economic, market and industry changes than investments in larger, more established
companies. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short term.
Derivative Risk.
Derivatives, including futures, may be riskier than other types of investments and may increase the volatility of the Fund. Derivatives may be sensitive to changes in economic and
market conditions and may create leverage, which could result in losses that significantly exceed the Funds original investment. Derivatives expose the Fund to counterparty risk, which is the risk that the derivative counterparty will not
fulfill its contractual obligations (and includes credit risk associated with the counterparty). Certain derivatives are synthetic instruments that attempt to replicate the performance of certain reference assets. With regard to such
derivatives, the Fund does not have a claim on the reference assets and is subject to enhanced counterparty risk. Derivatives may not perform as expected, so the Fund may not realize the intended benefits. When used for hedging, the change in
value of a derivative may not correlate as expected with the security or other risk being hedged. In addition, given their complexity, derivatives expose the Fund to risks of mispricing or improper valuation.
High Portfolio Turnover Risk.
The Fund may engage in active and frequent trading leading to increased portfolio turnover, higher transaction costs,
and the possibility of increased capital
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gains, including short-term capital gains that will generally be taxable to shareholders as ordinary income.
Redemption Risk.
The Fund could experience a loss when selling securities to meet redemption requests by shareholders. 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.
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.
You could lose money investing in the Fund.
The Funds Past Performance
This section
provides some indication of the risks of investing in the Fund. The bar chart shows how the performance of the Funds Institutional Class Shares has varied from year to year for the past ten calendar years. The table shows the average annual
total returns over the past one year, five years and ten years. The table compares that performance to the S&P 500 Index and the Lipper
Large-Cap
Core Funds Index, an index based on the total returns of
certain mutual funds within the Funds designated category as determined by Lipper. Unlike the other index, the Lipper index includes the expenses of the mutual funds included in the index. Past performance (before and after taxes) is not
necessarily an indication of how any class of the Fund will perform in the future.
Updated performance information is available by visiting www.jpmorganfunds.com or by calling
1-800-480-4111
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Best Quarter
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2nd quarter, 2009
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16.82%
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Worst Quarter
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4th quarter, 2008
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21.38%
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The Funds
year-to-date
total return through 9/30/13 was 20.93%.
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AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2012)
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Past
1 Year
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Past
5 Years
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Past
10 Years
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INSTITUTIONAL CLASS SHARES
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Return Before Taxes
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17.20
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%
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2.64
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%
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7.56
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Return After Taxes on Distributions
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15.87
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2.14
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7.18
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Return After Taxes on Distributions and Sale of Fund Shares
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11.98
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2.10
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6.57
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S&P 500 INDEX
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(Reflects No Deduction for Fees, Expenses or Taxes)
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16.00
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1.66
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7.10
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LIPPER LARGE-CAP CORE FUNDS INDEX
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(Reflects No Deduction for Taxes)
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15.32
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0.97
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6.13
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After-tax
returns are calculated using the historical highest individual federal
marginal income tax rates and do not reflect the impact of state and local taxes. Actual
after-tax
returns depend on your tax situation and may differ from those shown. The
after-tax
returns shown are not relevant to investors who hold their shares through
tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
Management
J.P. Morgan Investment Management Inc.
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Portfolio
Manager
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Managed the
Fund
Since
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Primary Title with
Investment Adviser
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Raffaele Zingone
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2002
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Managing Director
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Terance Chen*
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2005
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Managing Director
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Steven G. Lee
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2013
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Managing Director
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Aryeh Glatter
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2014
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Executive Director
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*
Upcoming Portfolio Manager Change.
Terance Chen will be resigning from J.P. Morgan Investment Management Inc. (JPMIM)
in the fourth quarter of 2014. Mr. Chen will continue to serve on the portfolio management team of the Fund until such time.
Purchase and
Sale of Fund Shares
Purchase minimums
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For Institutional Class Shares
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To establish an account
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$3,000,000
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To add to an account
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No minimum levels
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In general, you may purchase or redeem shares on any business day
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Through your Financial Intermediary
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By writing to J.P. Morgan Funds Services, P.O. Box 8528, Boston, MA 02266-8528
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After you open an account, by calling J.P. Morgan Funds Services at
1-800-480-4111
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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 (such as a bank), 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 intermediarys website for more information.
SPRO-DEQ-I-1113-3
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