Summary
Prospectus November 1, 2024
| JPMorgan U.S. Sustainable Leaders
Fund Class/Ticker: R6/JIIGX |
Before you invest, you may want to review the Fund’s
Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s 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 Fund’s Prospectus and Statement of
Additional Information, both dated November 1, 2024, as may be supplemented from time to time are incorporated by reference into this Summary
Prospectus.
What is the goal of the Fund?
The Fund seeks to provide long-term capital appreciation.
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) |
|
| |
Class R6 |
| Management Fees
|
0.30% |
| Distribution (Rule 12b-1) Fees |
NONE |
| Other Expenses
|
0.19 |
| Service Fees
|
NONE |
| Remainder of Other
Expenses |
0.19 |
| Total Annual Fund Operating Expenses |
0.49 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.15 |
| Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimbursements 1 |
0.34 |
1
The 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 0.34% of the average daily net assets of Class R6 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 10/31/25, 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.
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 $10,000 in the Fund for
the time periods indicated. The Example
also assumes that your investment has a 5% return each year and that the Fund’s operating
expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table through 10/31/25 and total annual fund operating expenses thereafter. Your actual costs may
be higher or lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| CLASS R6 SHARES ($) |
35 |
142 |
259 |
601 |
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 Fund’s performance. During the Fund’s most recent fiscal year, the
Fund’s portfolio turnover rate was 25% of the average value of its portfolio.
What are the Fund’s main investment
strategies?
In managing the Fund, the adviser identifies
companies that, in the adviser’s opinion, are sustainable leaders based on its
sustainability criteria, and have high quality, durable franchises which the adviser believes are
attractively valued. The adviser’s sustainability criteria are based on a proprietary scoring
methodology, which includes an assessment of environmental, social and corporate governance (ESG)
characteristics, qualitative factors, and the adviser’s subjective judgment as to which
companies are sustainable leaders. The Fund seeks to invest in companies that, on a combined
basis, appear attractive when considering these sustainability and financial characteristics.
The Fund defines ESG characteristics as follows:
●
Environmental — companies that actively strive to reduce the negative impact of their business operations on the environment. In this context, the adviser analyzes factors
such as the company’s likely impact on climate change, natural resource use, pollution and
the use of clean technology
●
Social — companies that consider the social impact of their business internally and externally. In this context, the adviser
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reviews considerations
such as worker safety, product safety and integrity, healthier products, impact on the community
and human rights
●
Governance — companies that embrace corporate governance principles. In reviewing governance characteristics, the adviser considers issues such as board
accountability and diversity, shareholder rights, executive compensation, business ethics and
government and public policy
The Fund primarily invests in large-cap and mid-cap common stocks, and
under normal circumstances, the Fund invests at least 80% of its Assets in the equity securities of U.S. companies meeting the adviser’s sustainability criteria. “Assets” means net assets, plus the amount of
any borrowings for investment purposes. Because investing on the basis of sustainability/ESG
criteria involves qualitative and subjective analysis, there can be no assurance that the
methodology utilized by, or determinations made by, the adviser will align with the beliefs or values of a particular investor.
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. The Fund may use futures contracts to gain or reduce exposure to its index, maintain
liquidity and minimize transaction costs. In managing cash flows, the Fund buys futures contracts to invest incoming cash in the market or sells futures contracts in response to cash outflows, thereby gaining market
exposure while maintaining a cash balance for liquidity.
An issuer of a security will be deemed to be located in the U.S. if: (i) the principal trading market for the
security is in the United States, (ii) the issuer is organized under the laws of the United
States, or (iii) the issuer derives at least 50% of its revenues or profits from the United States or has at least 50% of its total assets situated in the U.S.
Investment Process: The Fund has an actively managed strategy. In managing the Fund, the adviser employs a
bottom-up approach to stock selection, constructing portfolios based on company financials, data
analysis and proprietary research.
In choosing securities to
purchase, the adviser evaluates and internally ranks companies to identify those companies that, in
the adviser’s view, are sustainable leaders and have high quality, durable franchises which
the adviser believes are attractively valued. The adviser assesses sustainability using a wide set of data inputs, combined with fundamental analysis. This assessment includes a review of proprietary data,
information self-reported by companies, data from third party vendors and internal fundamental
research. The adviser may vary the importance of particular ESG and investment characteristics by
industry because, in the adviser’s judgment, certain characteristics are more relevant for
certain industries. For example, an environmental characteristic, such as land use, may be more
relevant for energy companies than for technology companies. In addition, the Fund seeks to avoid investing in companies that the adviser has determined, based on its exclusionary criteria, to be significantly involved in
certain business activities or industries, including the production of alcohol, tobacco,
controversial weapons, traditional weapons, thermal coal, adult entertainment and gambling products and services. The adviser may modify the exclusionary criteria without notice
to shareholders to, among other things, modify the data inputs, change third-party data providers, or add or remove certain business activities or industries from the
screening process.
The Fund has flexibility to focus in various
industries or sectors based on the adviser’s analysis of market opportunities at a
particular time.
The Fund will sell a stock if the adviser determines that the issuer no longer meets the Fund’s
investment criteria or if the adviser believes that more attractive opportunities are available.
The Fund’s Main Investment Risks
The Fund is subject to management risk and may not achieve its objective if the adviser’s expectations regarding particular instruments or markets are not
met.
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.
Equity Market Risk. The price of equity securities may rise or fall because of changes in the broad market or changes in a
company’s financial condition, sometimes rapidly or unpredictably. These price movements
may result from factors affecting individual companies, sectors or industries selected for the
Fund’s portfolio or the securities market as a whole, such as changes in economic or
political conditions. When the value of the Fund’s portfolio 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. 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.
Sustainability (ESG) Strategy
Risk. The Fund’s ESG strategies could cause it to perform differently compared to funds
that do not have such a policy. The criteria related to this ESG policy, including the exclusion
of securities of companies in certain
2
business activities or industries, may
result in the Fund’s forgoing opportunities to buy certain securities when it might
otherwise be advantageous to do so, or selling securities for ESG reasons when it might be
otherwise disadvantageous for it to do so. In addition, there is a risk that the companies identified by the ESG policy, and identified as sustainable leaders by the adviser, do not operate as expected when
addressing ESG issues. The adviser assesses sustainability using a wide set of data inputs,
combined with fundamental analysis. While the adviser looks to data inputs that it believes to be reliable, the adviser cannot guarantee the accuracy of third party data. Under the adviser’s investment process, data
inputs may include information self-reported by companies and third party providers that may be
based on criteria that differs significantly from the criteria used by the adviser to evaluate sustainability. In addition, the criteria used by third-party providers can differ significantly, and data can vary across
providers and within the same industry for the same provider. Moreover, there are significant
differences in interpretations of what it means for a company to have positive ESG characteristics. While the adviser believes its definitions are reasonable, the portfolio decisions it makes may differ with other
investors’ or advisers’ views.
Large Cap Company Risk. Because the Fund invests in large cap company securities, it may underperform other funds during periods when the Fund’s large cap securities
are out of favor.
Smaller Company Risk. Investments in securities of smaller companies (primarily mid cap companies) may be riskier, less liquid, more volatile and more vulnerable to economic, market and industry changes than securities of larger,
more established companies. The securities of smaller companies may trade less frequently and in
smaller volumes than securities of larger companies. As a result, changes in the price of securities issued by such companies may be more sudden or erratic than the prices of securities of large capitalization
companies, especially over the short term. These risks are higher for small cap
companies.
Derivatives Risk. Derivatives, including futures contracts, 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 Fund’s original investment. Certain 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). The Fund may be more
volatile than if the Fund had not been leveraged because the leverage tends to exaggerate any effect on the value of the Fund’s portfolio securities. 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. Derivatives also can expose the Fund to derivative liquidity risk, which includes
risks involving the liquidity demands that derivatives can create to make payments of margin,
collateral, or settlement payments to counterparties, legal risk, which includes the risk of loss resulting from insuf
ficient or unenforceable contractual
documentation, insufficient capacity or authority of a Fund’s counterparty and operational
risk, which includes documentation or settlement issues, system failures, inadequate controls and
human error.
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.
Financials Sector Risk. Financial services companies are subject to extensive governmental regulation which may limit both the
amounts and types of loans and other financial commitments they can make, the interest rates and
fees they can charge, the scope of their activities, the prices they can charge and the amount of
capital they must maintain. Profitability is largely dependent on the availability and cost of capital funds and can fluctuate significantly when interest rates change or due to increased competition. In addition, deterioration
of the credit markets generally may cause an adverse impact in a broad range of markets,
including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Certain events in the financials sector may cause an unusually
high degree of volatility in the financial markets, both domestic and foreign, and cause certain
financial services companies to incur large losses. Securities of financial services companies may experience a dramatic decline in value when such companies experience substantial declines in the valuations of their
assets, take action to raise capital (such as the issuance of debt or equity securities), or
cease operations. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price
competition. Adverse economic, business or political developments could adversely affect
financial institutions engaged in mortgage finance or other lending or investing activities directly or indirectly connected to the value of real estate.
Healthcare Sector Risk. Companies in the healthcare sector are subject to extensive government regulation and their profitability can be significantly affected by
restrictions on government reimbursement for medical expenses, rising costs of medical products
and services, pricing pressure (including price discounting), limited product lines and an increased emphasis on the delivery of healthcare through outpatient services. Companies in the healthcare sector are heavily
dependent on obtaining and defending patents, which may be time consuming and costly, and the
expiration of patents may also adversely affect the profitability of these companies. Healthcare
companies are also subject to extensive litigation based on product liability and similar claims.
In addition, their products can become obsolete due to industry innovation, changes in
technologies or other market developments. Many new products in the healthcare sector require
significant research
3
and development and may be subject to
regulatory approvals, all of which may be time consuming and costly with no guarantee that any
product will come to market.
Technology Sector Risk. Market or economic factors impacting technology companies could have a major effect on the value of the Fund’s investments. The value of
stocks of technology companies is particularly vulnerable to rapid changes in technology product
cycles, rapid product obsolescence and frequent new product introduction, unpredictable changes in
growth rates and competition for the services of qualified personnel, and government regulation
and competition, both domestically and internationally, including competition from foreign
competitors with lower production costs. Stocks of technology companies, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Technology companies are heavily dependent on
patent and intellectual property rights, the loss or impairment of which may adversely affect
profitability.
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.
You could lose money 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 Class R6 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 table compares the Fund’s performance to the performance of the S&P 500 Index. The performance for the
Class R6 Shares are based on the performance of the Class I Shares (which are not offered in this
prospectus) prior to their inception. The actual returns of the Class R6 Shares would be different than those shown because Class R6 Shares have different expenses than Class I Shares. Effective 11/1/16 and subsequently
effective 8/17/20, the Fund changed its investment strategies and certain investment policies. In
view of these changes, the Fund’s performance record prior to these periods might be less
pertinent for investors considering whether to purchase shares of the Fund. 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.
The S&P 500 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its
affiliates and have been licensed for use by the adviser. Copyright © 2023. S&P Dow Jones Indices LLC, a subsidiary of S&P Global, Inc., and/or its affiliates. All rights
reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P
Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered
trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
affiliates nor their third party licensors make any representation or warranty, express or
implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
affiliates nor their third party licensors shall have any liability for any errors, omissions, or
interruptions of any index or the data included therein.
| YEAR-BY-YEAR RETURNS — CLASS R6 SHARES |
| Best Quarter |
2nd quarter, 2020 |
20.49% |
| Worst Quarter |
1st quarter, 2020 |
-17.65% |
| The Fund’s year-to-date total return |
through |
9/30/24 |
was |
23.46% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| CLASS R6 SHARES |
|
|
|
| Return Before Taxes |
25.38 % |
15.05 % |
11.29 % |
| Return After Taxes on Distributions |
25.07 |
14.16 |
10.37 |
| Return After Taxes on Distributions and Sale of Fund Shares |
15.24 |
11.93 |
9.09 |
| S&P 500 INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
26.29 |
15.69 |
12.03 |
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.
4
Management
J.P. Morgan Investment Management Inc. (the adviser)
| Portfolio Manager |
Managed the Fund Since |
Primary Title with
Investment Adviser |
| Andrew Stern |
2018 |
Executive Director |
| Wonseok Choi |
2019 |
Managing Director |
| Lei (Grace) Liu |
2023 |
Vice President |
Purchase and Sale of Fund Shares
Purchase minimums
| For Class R6 Shares |
|
| To establish an account |
$5,000,000 for Discretionary Accounts
$5,000,000 for Institutional Investors
$15,000,000 for Other Investors |
| To add to an account |
No minimum levels |
There is no investment minimum for other Class R6 eligible investors, as described in the “Investing with J.P. Morgan Funds — Choosing a Share Class
— Eligibility” section.
In general, you may purchase or redeem shares on any business day:
●
Through your Financial Intermediary or the eligible retirement plan or college savings plan through which you invest in the Fund
●
By writing to J.P. Morgan Funds Services, P.O. Box 219143, Kansas City, MO 64121-9143
●
After you open an account, by calling J.P. Morgan Funds Services at 1-800-480-4111
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 intermediary’s website for more information.
5
