Summary Prospectus July
1, 2024
| JPMorgan High Yield Municipal ETF
Ticker: JMHI |
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 1-844-457-6383 or by sending an e-mail request to jpm.xf@jpmorgan.com or by
asking any financial intermediary that offers shares of the Fund. The Fund’s Prospectus and Statement of Additional Information, both dated July 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 a high level of current income exempt from federal income taxes.
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 example
below.
| ANNUAL FUND OPERATING EXPENSES
(Expenses that you pay each year as a percentage of the
value of your investment) |
|
| Management Fees
|
0.35% |
| Other Expenses
|
0.24 |
| Total Annual Fund Operating Expenses |
0.59 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.24 |
| Total Annual Fund Operating Expenses after Fee Waiv- ers and/or Expense Reimbursements 1 |
0.35 |
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, costs of shareholder meetings, and extraordinary expenses) exceed 0.35% of the average daily net assets of the Fund. 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 has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and
expenses of the affiliated money market funds incurred by the Fund because of the Fund’s investment in such money market funds. These waivers are in effect through 7/31/26, 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 funds. The Example does not take into account brokerage
commissions that you pay when purchasing or selling Shares of the Fund. The Example assumes that
you invest $10,000 in the Fund for the time periods indicated. The Example also assumes that your
investment has a 5% return each year and that the Fund’s
operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table through 7/31/26 and total annual
fund operating expenses thereafter. Your actual costs may be higher or
lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| SHARES ($) |
36 |
137 |
278 |
689 |
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 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 90% of the average value of its portfolio.
What are the Fund’s main investment strategies?
Under normal circumstances, the Fund invests at least 80% of its Assets in municipal securities, the income from which is exempt from federal income tax. This is a
fundamental policy. For purposes of this policy, “Assets” means net assets, plus the
amount of borrowings for investment purposes. Up to 25% of the Fund’s Assets may be
invested in municipal securities, the interest on which may be subject to the federal alternative
minimum tax for individuals. Municipal securities are securities issued by or on behalf of
states, territories and possessions of the United States, including the District of Columbia, and their respective authorities, political subdivisions, agencies and instrumentalities and other groups with the
authority to act for the municipalities, the interest on which is exempt from federal income tax.
The securities are issued to raise funds for various public and private purposes. Municipal securities may include, but are not limited to, variable rate demand obligations, short-term municipal notes, municipal bonds, tax
exempt commercial paper, private activity and industrial development bonds, tax anticipation
notes, and participations in pools of municipal securities.
Municipal securities also include instruments evidencing direct ownership of interest payments or principal
payments, or both, on municipal securities, such as tender option bonds and
1
participation interests in all or part of
specific holdings of municipal obligations, provided that the applicable issuer receives
assurances from legal counsel that the interest payable on the securities is exempt from federal income tax. Additionally, municipal securities include all other instruments that directly or indirectly provide economic exposure to
income which is derived from municipalities (such as municipal leases). The securities in which
the Fund invests may have fixed rates of return or floating or variable rates.
The Fund will invest in municipal securities of any maturity. As part of its investments in municipal
securities, the Fund will also have the ability to invest up to 100% of the Fund’s total assets in below investment grade or unrated securities. Such securities are also known as “junk bonds,”
“high yield bonds” and “non-investment grade bonds.” Junk bonds also include unrated securities that the Fund’s adviser believes to be of comparable quality to debt securities that are
rated below investment grade. These securities generally are rated in the fifth or lower rating
categories (for example, BB+ or lower by Standard & Poor’s Corporation (S&P) and
Ba1 or lower by Moody’s Investors Service Inc. (Moody’s)). These securities generally offer a higher yield than investment grade securities, but involve a high degree of risk. A security’s quality is
determined at the time of purchase and securities that are rated investment grade or the unrated
equivalent may be downgraded or decline in credit quality such that subsequently they would be deemed to be below investment grade.
The Fund will
also invest in investment grade securities. Investment grade securities carry a minimum rating of Baa3, BBB–, or BBB– by Moody’s, S&P, or Fitch Ratings (Fitch), respectively, or the equivalent by another
nationally recognized statistical rating organization (NRSRO) or are unrated but deemed by the adviser to be of comparable quality. Under normal market conditions, the Fund intends to invest a significant portion
of its Assets in securities rated BBB/BB by S&P and Fitch, Baa/Ba by Moody’s or unrated
securities that the adviser deems to be of equivalent quality.
The Fund may also invest in common shares or preferred shares of unaffiliated closed-end funds. The Fund
generally will limit its investments in a single closed-end fund to 5% of its total assets and in
all registered investment companies including closed-end funds (other than money market funds) to 10% of its total assets.
The Fund may invest in shares of
exchange-traded funds (ETFs). The ETFs in which the Fund may invest include registered investment
companies that seek to track the performance of a particular market index or security. These indexes include not only broad-based market indexes but more specific indexes as well, including those relating to particular
sectors, markets, regions or industries. Ordinarily, the Fund must limit its investments in a
single ETF to 5% of its total assets and in all ETFs and other investment companies to 10% of its total assets. However, the Securities and Exchange Commission (SEC) adopted an exemptive rule that allows any fund to disregard these
5% and 10% limitations, subject to certain conditions.
The Fund may invest 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 may be exempt from state and local income taxes.
Up to 20% of the
Fund’s net assets may be invested in securities subject to federal income tax.
The Fund may also invest in zero-coupon securities, Treasury futures and credit default swaps as part of its
main investment strategy.
The Fund also invests in inverse floaters and restricted securities.
Investment Process:
The adviser buys and sells securities and investments for the Fund based on its view of individual securities and market sectors. Taking a long-term approach, the adviser primarily looks for individual fixed income
investments that it believes will perform well over market cycles. The adviser is value oriented
and makes investment decisions after performing a risk/reward analysis that includes an evaluation of interest rate risk, credit risk, duration, liquidity, any security pledge, and a review of the
security’s attributes, such as the coupon, maturity, and any redemption and tender provisions. The adviser also factors in the overall investment strategy of the Fund, including its duration and its credit
strategy, as well as the adviser’s interest rate outlook. As part of its investment process,
the adviser seeks to assess the impact of environmental, social and governance (ESG) factors on
certain issuers in the universe in which the Fund 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 Fund’s investments in municipal issues and ascertain key issues
that merit engagement with municipal issuers. These assessments may not be conclusive and
securities that may be negatively impacted by such factors may be purchased and retained by the
Fund while the Fund may divest or not invest in securities that may be positively impacted by such factors.
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 net asset value (NAV), market price,
performance and ability to meet its investment objective.
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.
2
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 bonds and thus the value of the Fund’s
investments.
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 securities issued by the municipality and the value of the
Fund’s investments. Interest on municipal bonds, while generally exempt from federal income
tax, may not be exempt from federal alternative minimum tax.
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.
Alternative Minimum Tax Risk. The Fund may invest in securities, the interest on which may be subject to the federal alternative minimum tax.
Cash
Transactions Risk. Unlike certain ETFs, the Fund may effect creations and redemptions in cash or
partially in cash. Therefore, it may be required to sell portfolio securities and subsequently
recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Shares may be less tax-efficient than an investment in an ETF that
distributes portfolio securities entirely in-kind.
High Yield Securities Risk. The Fund may invest in securities and instruments of municipal issuers that are highly leveraged, less creditworthy or financially distressed. These
investments (also known as junk bonds) are considered to be speculative and are subject to
greater risk of loss, greater sensitivity to economic changes, valuation difficulties, and potential illiquidity.
In recent years, there has been a broad trend of weaker or less restrictive covenant protections in the high yield market. Among other things, under such weaker or less
restrictive covenants, borrowers might be able to exercise more flexibility with respect to
certain activities than borrowers who are subject to stronger or more protective covenants. For example, borrowers might be able to incur more debt, including secured debt, return more capital to shareholders, remove or reduce assets
that are
designated as
collateral securing high yield securities, increase the claims against assets that are permitted against collateral securing high yield securities or otherwise manage their business in ways that could impact creditors
negatively. In addition, certain privately held borrowers might be permitted to file less
frequent, less detailed or less timely financial reporting or other information, which could
negatively impact the value of the high yield securities issued by such
borrowers.
Each of these factors might negatively impact the high yield instruments held by the Fund. No active trading market may exist for some instruments and certain investments
may be subject to restrictions on resale. The inability to dispose of the Fund’s securities
and other investments in a timely fashion could result in losses to the Fund. Because some instruments may have a more limited secondary market, liquidity and valuation risk may be more pronounced for the Fund.
When instruments are prepaid, the Fund may have to reinvest in instruments with a lower yield or
fail to recover additional amounts (i.e., premiums) paid for these instruments, resulting in an
unexpected capital loss and/or a decrease in the amount of dividends and yield.
Interest Rate Risk.
The Fund mainly invests in bonds and other debt securities. These securities will increase or
decrease in value based on changes in interest rates. If rates increase, the value of the
Fund’s investments generally declines. Securities with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. 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. If an issuer’s
or a counterparty’s financial condition worsens, the credit quality of the issuer or
counterparty may deteriorate. 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.
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.
Structured Product Risk. Structured products, such as tender option bonds, involve structural complexities and potential risks that may not be present where a municipal security is owned directly. These enhanced risks may include
additional counter-party risk (the risk that the counterparty will not fulfill its contractual
obligations) and call risk (the risk that the instruments will be called and the proceeds may need to be
3
reinvested). Additionally, an active
trading market for such instruments may not exist. To the extent that a structured product
provides a put, the Fund may receive a lower interest rate in return for such feature and will be subject to the risk that the put provider will be unable to honor the put feature (purchase the security). Finally, short-term
municipal or tax-exempt structured products may present tax issues not presented by investments
in other short-term municipal or tax-exempt securities. These issues might be resolved in a manner
adverse to the Fund.
Restricted Securities Risk. Restricted securities are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a
contractual restriction that prohibits or limits their resale. Restricted securities include
private placement securities that have not been registered under the applicable securities laws, such as Rule 144A securities, and securities of U.S. and non-U.S. issuers that are issued pursuant to Regulation S.
Private placements are generally subject to strict restrictions on resale. Restricted securities
may not be listed on an exchange and may have no active trading market. Restricted securities may be illiquid. The Fund may be unable to sell a restricted security on short notice or may be able to sell them only at a price
below current value. It may be more difficult to determine a market value for a restricted
security. Also, the Fund may get only limited information about the issuer of a restricted security, so it may be less able to predict a loss. In addition, if Fund management receives material non-public information about the
issuer, the Fund may as a result be unable to sell the securities. Certain restricted securities
may involve a high degree of business and financial risk and may result in substantial losses.
Derivatives Risk. Derivatives, such as futures contracts and swaps, 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). 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 insufficient or unenforceable contractual documentation, insufficient capacity or
authority of the Fund’s counterparty and operational risk, which includes documentation or settlement issues, system failures, inadequate controls and human error.
ETF and Other Investment Company Risk. The Fund may invest in shares of other investment companies and ETFs. Shareholders bear both their proportionate share of
Fund’s expenses and similar expenses of the underlying investment company or ETF
when the Fund invests in shares of another
investment company or ETF. The price movement of an ETF or closed end fund designed to track an
index may not track the index and may result in a loss. In addition, ETFs and closed-end investment
companies may trade at a price above (premium) or below (discount) their NAV, especially during
periods of significant market volatility or stress, causing investors to pay significantly more
or less than the value of the ETF’s underlying portfolio. If the Fund invests in closed-end investment companies, it may incur added expenses such as additional management fees and trading costs.
Government Securities Risk. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies 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 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.
Debt Securities and Other Callable Securities Risk. As part of its main investment strategy, the Fund invests in debt securities. The issuers of these 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 debt obligations are prepaid and 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 interest rates, resulting in an unexpected capital loss.
Inverse Floating Rate Instrument Risk. The market value of an inverse floater can be more volatile than that of a conventional fixed-rate bond having similar credit
quality, maturity and redemption provisions. Inverse floaters involve complex transactions and
involve risks in addition to risks associated with more conventional municipal obligations. Inverse floaters may be more sensitive to changes in economic or market conditions than other types of investments and could
result in losses that significantly exceed the Fund’s original investment. Inverse floaters
can create leverage thereby causing the Fund to be more volatile than it would be if it had not used inverse floaters.
Taxability Risk. The
Fund’s investments in municipal securities rely on the opinion of the issuer’s bond counsel that the interest paid on those securities will not be subject to federal income tax. Tax opinions are generally provided at the
time the municipal security is initially issued. However, after the Fund buys a security, the
Internal Revenue Service may determine that a bond issued as tax-exempt should in fact be taxable and the Fund’s dividends with respect to that bond might be subject to federal income tax.
Zero-Coupon Bond Risk.
The market value of a zero-coupon bond is generally more volatile than the market value of other
fixed income securities with similar maturities that pay interest periodically. In addition,
federal income tax law requires that
4
the holder of a zero-coupon bond accrue a
portion of the discount at which the bond was purchased as taxable income each year. The Fund may
consequently have to dispose of portfolio securities under disadvantageous circumstances to
generate cash to satisfy its requirement as a regulated investment company to distribute all of
its net income (including non-cash income attributable to zero-coupon securities). These actions
may reduce the assets to which the Fund’s expenses could otherwise be allocated and may reduce the Fund’s rate of return.
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.
ETF Shares Trading Risk. Shares are listed for trading on the NYSE Arca, Inc. (the Exchange) and are bought and sold in the secondary market at market prices. The market
prices of Shares are expected to fluctuate, in some cases materially, in response to changes in
the Fund’s NAV, the intraday value of the Fund’s holdings and supply and demand for Shares. The adviser cannot predict whether Shares will trade above, below or at their NAV. Disruptions to creations and redemptions, the
existence of significant market volatility or potential lack of an active trading market for the
Shares (including through a trading halt), as well as other factors, may result in the Shares trading significantly above (at a premium) or below (at a discount) to NAV or to the intraday value of the Fund’s holdings.
During such periods, you may incur significant losses if you sell your Shares.
Authorized Participant Concentration Risk. Only an authorized participant may engage in creation or redemption transactions directly with the Fund. The Fund has a limited
number of intermediaries that act as authorized participants and none of these authorized
participants is or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/or redemption
orders with respect to the Fund and no other authorized participant creates or redeems, Shares
may trade at a discount to NAV and possibly face trading halts and/or delisting.
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 Fund commenced operations after the assets of another investment company advised by the adviser,
JPMorgan High Yield Municipal Fund (the predecessor fund), were
transferred to the Fund in a tax-free reorganization as of the close of business on July 14, 2023. The Fund has the same investment objective and substantially similar
investment strategies as those of the predecessor fund. Updated performance information is
available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383 (844-4JPM ETF).
The bar chart shows how the performance of the Fund’s Shares (represented by the performance of the predecessor fund’s Class R6 Shares) has varied from year to year
for the past ten calendar years. The table shows the Fund's average annual total returns
(represented by the average annual total returns of the predecessor fund’s Class R6 Shares) for the past one year, five years and ten years. The table compares the Fund’s performance (represented by the performance of the predecessor fund’s Class R6 Shares) to the
performance of the Bloomberg US Municipal Index, the Bloomberg High Yield Municipal Bond Index
and the Bloomberg 65% High Grade/35% High Yield TR Index. The indices do not include the fees and
expenses of the mutual funds in each respective index. The performance of the Class R6 Shares of
the predecessor fund prior to their inception are based on Class I Shares. The actual returns of
the predecessor fund’s Class R6 Shares would be substantially similar to the performance of Class I Shares because the predecessor fund is invested in the same group of securities and the annual returns would differ
only to the extent that the classes do not have the same expenses. Performance for the
Fund’s Shares has not been adjusted to reflect the Fund’s Shares’ lower expenses than those of the predecessor fund’s Class R6 Shares. Performance for the predecessor fund is based on the NAV per share of the predecessor fund
shares rather than on market-determined prices. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Effective November 1, 2018, the predecessor fund’s investment strategies changed. The predecessor fund’s past performance would have been different if the predecessor fund were managed using
the current strategies.
Source: Bloomberg Index Services Limited. BLOOMBERG® is
a trademark and service mark of Bloomberg Finance L.P. and its
affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg
does not approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be
obtained therefrom and, to the maximum extent allowed by law, shall have any liability or responsibility for injury or damages arising in connection therewith.
5
| YEAR-BY-YEAR RETURNS |
| Best Quarter |
4th quarter, 2023 |
7.06% |
| Worst Quarter |
1st quarter, 2022 |
-7.14% |
| The Fund’s year-to-date total return |
through |
3/31/24 |
was |
1.29% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| SHARES |
|
|
|
| Return Before Taxes |
4.80 % |
1.33 % |
2.29 % |
| Return After Taxes on Distributions |
4.71 |
1.28 |
2.14 |
| Return After Taxes on Distributions and Sale of Fund Shares |
4.65 |
1.82 |
2.38 |
| BLOOMBERG US MUNICIPAL INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
6.40 |
2.25 |
3.03 |
| BLOOMBERG HIGH YIELD MUNICIPAL BOND INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
9.21 |
3.49 |
5.00 |
| BLOOMBERG 65% HIGH GRADE / 35% HIGH YIELD TR INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
7.39 |
2.71 |
3.74 |
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 the investor’s tax situation and may differ from those shown, and 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. (the adviser)
| Portfolio Manager |
Managed the Fund Since |
Primary Title with
Investment Adviser |
| Rachel Betton |
2023 |
Managing Director |
| Curtis White |
2024 |
Executive Director |
Purchase and Sale of Shares
Individual Shares of the Fund may only be purchased and sold in secondary market transactions through brokers
or financial intermediaries. Shares of the Fund are listed for trading on the Exchange, and
because Shares trade at market prices rather than NAV, Shares of the Fund may trade at a price greater than NAV (premium) or less than NAV (discount). Certain affiliates of the Fund and the adviser may purchase and
resell Shares pursuant to this prospectus.
An investor may incur costs attributable to the difference between the highest price a buyer is willing to pay
to purchase Shares of the Fund (bid) and the lowest price a seller is willing to accept for
Shares (ask) when buying or selling Shares in the secondary market (the bid-ask spread).
Recent information, including information about the Fund’s NAV, market price, premiums and discounts,
and bid-ask spreads, is included on the Fund’s website at
jpmorganfunds.com.
Tax Information
The
Fund’s distributions of interest on municipal bonds generally are not subject to federal income tax; however the Fund may distribute taxable dividends, including distributions of short-term capital gains, and long-term capital
gains. In addition, interest on certain bonds may be subject to the federal alternative minimum
tax. To the extent that the Fund’s distributions are derived from interest on bonds that are not exempt from applicable state and local taxes, such distributions will be subject to such state and local taxes. When
your investment is in an IRA, 401(k) plan or other tax-advantaged investment plan, you may be
subject to federal income tax on ordinary income or capital gains 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 adviser and its related companies may pay the financial intermediary for the sale of 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.
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