Mutual Fund Summary Prospectus (497k)
February 11 2014 - 04:16PM
Edgar (US Regulatory)
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Summary Prospectus November 1, 2013, as supplemented February 11, 2014
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JPMorgan U.S. Research Equity Plus Fund
Class/Ticker: R2/JEPZX R5/JEPRX R6/JEPMX
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 total return from a portfolio of selected equity securities.
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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Class R2
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Class R5
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Class R6
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Management Fees
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1.00
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%
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1.00
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%
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1.00
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%
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Distribution (Rule
12b-1)
Fees
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0.50
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NONE
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NONE
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Other Expenses
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2.92
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2.72
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2.67
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Dividend Expenses on Short Sales
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1.27
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1.27
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1.27
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Shareholder Service Fees
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0.25
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0.05
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NONE
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Remainder of Other Expenses
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1.40
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1.40
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1.40
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Total Annual Fund Operating Expenses
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4.42
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3.72
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3.67
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Fee Waivers and Expense Reimbursements
1
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(1.65
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(1.65
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(1.65
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Total Annual Fund Operating Expenses After Fee Waivers and Expense Reimbursements
1
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2.77
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2.07
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2.02
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1
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The Funds adviser, administrator and the distributor (the Service Providers) have contractually agreed to waive fees and/or reimburse expenses to the extent Total
Annual Fund Operating Expenses of Class R2, Class R5 and Class R6 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 1.50%, 0.80% and 0.75%, respectively, 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 $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table
through 10/31/14, and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.
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WHETHER OR NOT YOU SELL YOUR SHARES, YOUR
COST WOULD BE:
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1 Year
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3 Years
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5 Years
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10 Years
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CLASS R2 SHARES ($)
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280
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1,189
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2,109
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4,455
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CLASS R5 SHARES ($)
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210
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986
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1,781
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3,861
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CLASS R6 SHARES ($)
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205
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971
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1,757
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3,817
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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 (including short sales) rate was 88% of the average value of its portfolio.
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What are the Funds main investment strategies?
Under normal circumstances, at least 80% of the value of the Funds Assets, which are expected to include both long and short positions, will invest in
equity securities of large capitalization, U.S. companies. Assets means net assets, plus the amount of borrowings for investment purposes. Large capitalization companies are companies with market capitalizations of at least $4 billion at
the time of purchase. In implementing its strategy, the Fund invests primarily in common stocks, real estate investment trusts (REITs) and depositary receipts. The adviser also generally is sector neutral relative to the S&P 500 Index and
emphasizes stock selection as the primary means of generating returns.
Plus in the Funds name refers to the additional return
the Fund endeavors to add both relative to the S&P 500 Index as well as relative to traditional strategies that do not have the ability to sell stock short. Selling stock short allows the Fund to more fully exploit insights in stocks that the
Funds adviser expects to underperform, as well as enabling the Fund to establish additional long positions while keeping the Funds net exposure to the market at a level similar to a traditional long only strategy. Short sales
involve the sale of a security which the Fund does not own in hopes of purchasing the same security at a later date at a lower price. To make delivery to the buyer, the Fund must borrow the security, and the Fund is obligated to return the security
to the lender, which is accomplished by a later purchase of the security by the Fund.
The Fund intends to maintain an approximate net 100% long
exposure to the equity market (long market value minus short market value). However the long and short positions held by the Fund will vary in size as market opportunities change. The Funds long positions and their equivalents will range
between 90% and 150% of the value of the Funds net assets. The Funds short positions will range between 0% and 50% of the value of the Funds net assets.
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 buys and sells, as well as shorts and covers shorts in, equity securities and derivatives on
those securities according to its own policies, using the research and valuation rankings as a basis. In general, the adviser buys and covers shorts in equity securities that are identified as
undervalued and considers selling or shorting them when they appear overvalued. Along with attractive valuation, the adviser often considers a number of other criteria such as:
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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 potential reward compared to potential risk and
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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.
Short Selling Risk.
The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund
purchases the security to replace the borrowed security. In addition, a lender may request, or market conditions may dictate, that securities sold short be returned to the lender on short notice, and the Fund may have to buy the securities sold
short at an unfavorable price. If this occurs, any anticipated gain to the Fund may be reduced or eliminated or the
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short sale may result in a loss. The Funds losses are potentially unlimited in a short sale transaction. Short sales are speculative transactions and involve special risks, including
greater reliance on the advisers ability to accurately anticipate the future value of a security. Furthermore, taking short positions in securities results in a form of leverage which may cause the Fund to be more volatile.
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.
Foreign Securities Risk.
To the extent the Fund invests in depositary receipts, such investments are subject to additional
risks including political and economic risks, greater volatility, civil conflicts and war, currency fluctuations, expropriation and nationalization risks, higher transaction costs, delayed settlement, possible foreign controls on investment, and
less stringent investor protection and disclosure standards of foreign markets.
Real Estate Securities Risk.
The Funds investments
in real estate securities, including REITs, are subject to the same risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying real estate interests. These risks include default, prepayments,
changes in value resulting from changes in interest rates and demand for real and rental property, and the management skill and credit-worthiness of REIT issuers. The Fund will indirectly bear its proportionate share of expenses, including
management fees, paid by each REIT in which it invests in addition to the expenses of the Fund.
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 for securities held
long (or appreciating prices of securities held short).
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 Class R5 Shares has varied from year to year over the past two calendar
years. The table shows the average annual total returns for the past one year and the life of the Fund. The table compares that performance to the S&P 500
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Index and the Lipper Extended U.S. Large-Cap Core Funds Average, 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. The performance for Class R6 Shares is based on the performance of the Class R5 Shares prior to their
inception on 5/31/11. The actual returns of the Class R6 Shares would be different than those shown because Class R6 Shares have different expenses than Class R5 Shares. 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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1st quarter, 2012
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14.93%
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Worst Quarter
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3rd quarter, 2011
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15.50%
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The Funds
year-to-date
total return
through 9/30/13 was 20.03%.
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AVERAGE ANNUAL TOTAL RETURNS
(For the period ended December 31, 2012)
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Past
1 Year
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Life of
Fund
(since
4/1/10)
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CLASS R5 SHARES
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Return Before Taxes
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19.04
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%
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8.02
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Return After Taxes on Distributions
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18.64
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7.68
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Return After Taxes on Distributions and Sale of Fund Shares
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12.91
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6.82
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CLASS R2 SHARES
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Return Before Taxes
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18.23
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7.28
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CLASS R6 SHARES
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Return Before Taxes
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19.09
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8.06
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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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9.80
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LIPPER EXTENDED U.S. LARGE-CAP CORE FUNDS AVERAGE
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(Reflects No Deduction for Taxes)
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15.68
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7.64
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After-tax
returns are shown only for the Class R5 Shares, and
after-tax
returns for the other classes will vary.
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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Terance Chen*
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2010
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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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Raffaele Zingone
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2014
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Managing 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
There are no minimum or maximum purchase requirements with respect to Class R2 or Class R5 Shares.
Purchase Minimums
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For Class R6 Shares
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To establish an account
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$15,000,000 for Direct Investors
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$5,000,000 for Discretionary Accounts
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To add to an account
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No minimum levels
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There is no investment minimum for other Class R6 eligible investors.
In general, you may purchase or redeem shares on any business day
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Through your Financial Intermediary or the eligible retirement plan or college savings plan through which you invest in the Fund
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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 a 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-USREP-R2R5R6-1113-3
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