Summary
Prospectus November 1, 2024
| JPMorgan Small Cap Growth Fund
Class/Ticker: L/JISGX |
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.
Currently, the Fund (including Class L Shares) is publicly offered on a limited basis. (See “Investing
with J.P. Morgan Funds — FUNDS SUBJECT TO A LIMITED OFFERING” in the prospectus for
more information.)
What is the goal of the Fund?
The Fund seeks long-term capital growth primarily by investing in a portfolio of equity securities of
small-capitalization and emerging growth companies.
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 L |
| Management Fees
|
0.65% |
| Distribution (Rule 12b-1) Fees |
NONE |
| Other Expenses
|
0.20 |
| Service Fees
|
0.10 |
| Remainder of Other
Expenses |
0.10 |
| Total Annual Fund Operating Expenses |
0.85 |
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Your actual costs may be higher or lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| CLASS L SHARES ($) |
87 |
271 |
471 |
1,049 |
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 43% of the average value of its portfolio.
What are the Fund’s main investment strategies?
Under normal circumstances, at least 80% of the Fund’s Assets will be invested in the securities of small capitalization companies. “Assets” means net assets,
plus the amount of borrowings for investment purposes. Small cap companies are companies with
market capitalizations equal to those within the universe of the Russell 2000® Growth Index stocks at the time of purchase. As of the reconstitution of the Russell 2000 Growth Index on September 30, 2024, the market
capitalizations of the companies in the index ranged from $1.19 million to $13.51 billion. In
implementing its main strategies, the Fund will invest primarily in common stocks. Typically, the Fund invests in securities of companies with a history of above-average growth, as well as companies expected to have
above-average growth.
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 process that combines research, valuation and stock selection to identify companies that have a history of
above-average growth or which the adviser believes will achieve above-average growth in the
future. Growth companies purchased for the Fund include those with leading competitive positions that can achieve sustainable growth. As part of its investment process, the adviser seeks to assess the impact of
environmental, social and governance (ESG) factors on many 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 securities and
ascertain key issues that merit engagement with issuers. These assessments may not be conclusive
and securities of issuers that may be negatively
1
impacted by such factors may be purchased
and retained by the Fund while the Fund may divest or not invest in securities of issuers that
may be positively impacted by such factors.
The adviser may sell a
security for several reasons. A security may be sold due to a change in the company’s fundamentals or if the adviser believes the security is no longer attractively valued. Investments may also be sold if the
adviser identifies a stock that it believes offers a better investment opportunity.
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.
Smaller Company Risk. Investments in smaller companies may be riskier, less liquid, more volatile and more vulnerable to economic, market and industry changes than investments in 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, the share price changes may be more sudden or erratic than the prices of other
securities, especially over the short term.
Growth Investing Risk. Because growth investing attempts to identify companies that the adviser believes will experience rapid earnings growth relative to value or other
types of stocks, growth stocks may trade at higher multiples of current earnings compared to
value or other stocks, leading to inflated prices and thus potentially greater declines in value.
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. 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 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.
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.
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
2
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 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.
Industrials Sector Risk. The industrials sector may be adversely affected by changes in the supply of and demand for products and services, product obsolescence, claims for
environmental damage or product liability and general economic conditions, among other
factors.
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 L 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 the Fund’s performance to the performance of the Russell 3000® Index and Russell 2000® Growth Index. The Russell 3000® Index serves as the Fund’s regulatory index and provides a broad measure of market performance. The
Russell 2000® Growth Index is the Fund’s additional index and is more representative of the Fund’s investment
universe than the regulatory 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.
Frank Russell Company is the source and owner of the Russell Index data
contained or reflected in this material and all trademarks and copyrights related thereto. Frank Russell Company is not responsible for the formatting or configuration of this
material or for any inaccuracy in the adviser’s presentation thereof.
| YEAR-BY-YEAR RETURNS — CLASS L SHARES |
| Best Quarter |
2nd quarter, 2020 |
37.49% |
| Worst Quarter |
2nd quarter, 2022 |
-21.83% |
| The Fund’s year-to-date total return |
through |
9/30/24 |
was |
11.00% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| CLASS L SHARES |
|
|
|
| Return Before Taxes |
14.33 % |
9.98 % |
8.78 % |
| Return After Taxes on Distributions |
14.33 |
8.61 |
7.14 |
| Return After Taxes on Distributions and Sale of Fund Shares |
8.48 |
7.95 |
6.81 |
| RUSSELL 3000 INDEX1 (Reflects No Deduction for Fees, Expenses, or Taxes) |
25.96 |
15.16 |
11.48 |
| RUSSELL 2000 GROWTH INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
18.66 |
9.22 |
7.16 |
1
As a result of new regulatory requirements, the Fund's regulatory index has changed from the Russell 2000 Growth Index to the Russell 3000 Index.
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.
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Management
J.P. Morgan Investment Management Inc. (the adviser)
| Portfolio Manager |
Managed the Fund Since |
Primary Title with
Investment Adviser |
| Eytan Shapiro |
2004 |
Managing Director |
| Matthew Cohen |
2016 |
Managing Director |
| Philip D. Hart |
2023 |
Managing Director |
| Michael Stein |
2023 |
Executive Director |
Matthew Cohen, M.D. has announced his retirement from J.P. Morgan Investment Management Inc. in the spring of
2025. Dr. Cohen will continue to serve on the portfolio management team of the Fund until his
retirement, and upon his retirement the current portfolio managers, Eytan Shapiro, Phillip D. Hart and Michael Stein will assume full authority of the day-to-day management of the Fund. Mr. Shapiro will continue
as the lead portfolio manager on the Fund.
Purchase and Sale of Fund Shares
Class L Shares of the Fund are no longer generally available to new purchasers. Existing Class L shareholders
can still purchase additional shares, reinvest their dividends and exchange into the Class L
Shares from Class L Shares of other J.P. Morgan Funds. In addition, certain group employer benefit plans, certain fee-based advisory programs, college savings plans and other J.P. Morgan Funds can continue to purchase shares as
described in “Investing with J.P. Morgan Funds — FUNDS SUBJECT TO A LIMITED
OFFERING” in the prospectus.
Purchase minimums
| For Class L Shares |
|
| To establish an account |
$3,000,000 |
| To add to an account |
No minimum levels |
In general, you may purchase or redeem shares on any business day:
●
Through your Financial Intermediary
●
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 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 intermediary’s website for more information.
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SPRO-SCG-L-1124