Summary Prospectus July 1,
2025
| JPMorgan Institutional Tax Free Money Market
Fund Class/Ticker: Agency/JOAXX |
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
1-800-766-7722 or by sending an e-mail request to
global_liquidity_funds_services_us@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 July 1, 2025, as may be supplemented from time to time are incorporated by reference into this Summary
Prospectus.
The Fund’s Objective
The Fund seeks to provide current income that is exempt from federal personal income taxes, while maintaining
liquidity and a low volatility of principal.
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) |
|
| |
Agency |
| Management Fees
|
0.08% |
| Other Expenses
|
0.24 |
| Service Fees
|
0.15 |
| Remainder of Other
Expenses |
0.09 |
| Total Annual Fund Operating Expenses |
0.32 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.06 |
| Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimbursements 1 |
0.26 |
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 0.26% of the average daily net assets of Agency 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 6/30/26, 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 mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses are equal to the total annual fund operating expenses after fee waivers and expense
reimbursements shown in the fee table through 6/30/26 and total annual fund operating expenses
thereafter. Your actual costs may be higher or lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| AGENCY SHARES ($) |
27 |
97 |
174 |
400 |
The Fund’s Main Investment Strategy
Under normal conditions, the Fund invests primarily in municipal obligations, the interest on which is excluded from federal income taxes. As a fundamental policy,
under normal circumstances, the Fund will invest at least 80% of the value of its Assets in
municipal obligations. For purposes of this policy, “Assets” means net assets, plus the amount of borrowings for investment purposes.
Municipal obligations include a broad range of short-term obligations issued by or on behalf of states,
territories and possessions of the United States, the District of Columbia, and their respective
authorities, agencies, instrumentalities, political subdivisions and other groups with authority to act for the municipalities and instruments that provide economic exposure to such obligations, including beneficial
interests in municipal trust certificates and partnership trusts (“municipal obligations”). For purposes of the Fund’s 80% policy, the Fund may invest in municipal obligations by (1) purchasing
instruments evidencing direct ownership of interest payments or principal payments, or both, on
municipal obligations, such as tender option bonds, or (2) purchasing participation interests in all or part of specific holdings of municipal obligations.
The Fund generally invests in short-term money market instruments such as private activity and industrial
development bonds, tax anticipation notes, variable rate demand notes and participations in pools
of municipal obligations. These investments may include privately placed securities.
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For purposes of the 80% policy above, the
Fund will only invest in municipal obligations if the issuer receives assurances from legal
counsel that the interest payable on the securities is exempt from federal income tax.
As a non-fundamental policy, the Fund will ordinarily invest, under normal
circumstances, 100% if its total assets in weekly liquid assets (as defined under Rule 2a-7 of the Investment Company Act of 1940 (the "Investment Company Act")). The maturity restrictions applicable to weekly liquid
assets may reduce the Fund's yield and performance.
Up to 20% of the Fund’s Assets may be invested in securities subject to federal income tax or the
federal alternative minimum tax.
The Fund is a money market fund managed in the following manner:
●
The Fund calculates its net asset value to four decimals (e.g., $1.0000) using market-based pricing and operates with a floating net asset value.
●
The
dollar-weighted average maturity of the Fund will be 60 days or less and the dollar-weighted average life to maturity will be 120 days or less.
●
The Fund will only buy securities that have remaining maturities of 397 days or less or securities otherwise permitted to be purchased because of maturity shortening
provisions under applicable regulation.
●
The Fund invests only in U.S. dollar-denominated securities.
●
The
Fund seeks to invest in securities that present minimal credit risk.
The Fund may invest significantly in securities with floating or variable rates of interest. Their yields will vary as interest rates change. The Fund will at times hold some
of its assets in cash.
The Fund’s adviser seeks to develop
an appropriate portfolio by considering the differences in yields among securities of different
maturities, market sectors and issuers.
Liquidity Fees
The Fund’s policies and procedures require the Fund to
impose a mandatory liquidity fee if the Fund experiences total daily net redemptions (based on
flow information available within a reasonable period after the last computation of the Fund’s net asset value on that day) exceeding 5% of net assets, unless the amount of the mandatory liquidity fee would be
de minimis. The size of the mandatory liquidity fee to be charged will be based on a good faith
estimate, supported by data, of the costs the Fund would incur if it sold a pro rata amount of each security in its portfolio to satisfy the amount of the net redemptions. If these costs cannot be determined in good faith,
a 1% default fee will be applied. If the amount of the mandatory liquidity fee would be de
minimis (i.e., less than 0.01% of the value of the shares redeemed), the Fund is not required to charge a mandatory liquidity fee. In addition, the Fund’s policies and procedures permit the Fund to impose a
discretionary liquidity fee on redemptions of up to 2% of the value of the shares redeemed if the
adviser, as the delegate of the Board, determines it is in the best interests of the Fund.
The Fund’s Main Investment Risks
The Fund is subject to management risk and the Fund may not achieve its objective if the adviser’s
expectations regarding particular instruments or interest rates are not met.
You could lose money by
investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you
originally paid for them. The Fund may impose a fee upon sale of your shares. Effective October 2, 2024, the Fund generally must impose
a fee when net sales of Fund shares exceed certain levels. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to
the Fund at any time, including during periods of market stress.
Any gain resulting from the sale or exchange of Fund shares will be taxable as long-term or short-term gain,
depending upon how long you have held your shares.
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.
Interest Rate Risk. The Fund’s investments in bonds and other debt securities will change in value based on changes in
interest rates. If rates increase, the value of these investments generally declines. Securities
with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund may invest in variable and floating rate securities. Although these instruments are generally
less sensitive to interest rate changes than fixed rate instruments, the value of floating rate
and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. 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. Prices of the Fund’s investments may be adversely
affected if any of the issuers or counterparties it is invested in are subject to an actual or perceived deterioration in their credit quality. 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.
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
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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 or the threat or potential of one or more such factors and occurrences.
Municipal Obligations and Securities 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.
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 obligations and thus the value of the Fund’s investments. To the extent that the financial institutions securing the
municipal obligations are located outside the U.S., these securities could be riskier than those
backed by U.S. institutions because of possible political, social or economic instability, higher transaction costs, currency fluctuations, and possible delayed settlement.
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
obligations issued by the municipality and the value of the Fund’s investments.
There may be times that, in the opinion of the adviser, municipal money
market securities of sufficient quality are not available for the Fund to be able to invest in accordance with its normal investment policies. Interest on municipal bonds, while generally exempt from federal income tax, may be
subject to state and/or local income tax and may not be exempt from federal alternative minimum
tax.
Government Securities Risk. U.S. Government securities include securities issued or guaranteed by the U.S. Government or its agencies and instrumentalities (such as securities issued by the Government National Mortgage Association
(Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan
Mortgage Corporation (Freddie Mac) 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
Ginnie Mae or 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. The income generated
by investments may not keep pace with inflation. Actions by governments and central banking authorities could result in changes in interest rates. Periods of higher inflation could cause such authorities to raise
interest rates, which may adversely affect the Fund and its investments. 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. Securities
issued or guaranteed by U.S. Government-related organizations, such as Fannie Mae and Freddie
Mac, are not backed by the full faith and credit of the U.S. Government and no assurance can be
given that the U.S. Government will provide financial support. Therefore, U.S. Government-related
organizations may not have the funds to meet their payment obligations in the future. U.S.
Government securities include zero coupon securities, which tend to be subject to greater market risk than interest-paying securities of similar maturities.
Investments in Weekly Liquid Assets Risk. Because the Fund limits its purchases to weekly liquid assets (as defined under Rule 2a-7), which are generally high-quality,
short-term securities, its yield may be lower than other money market funds that purchase
longer-term securities. In addition, to the extent there are shortages in the supply of weekly liquid assets, it may be difficult for the Fund to purchase weekly liquid assets.
Tax Risk. The Fund may invest in securities whose interest is subject to federal income tax or the federal alternative minimum tax. Consult your tax professional for more
information.
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.
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.
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
3
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 counterparty 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 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.
Risk Associated with the Fund Holding Cash. The Fund will at times hold some of its assets in cash, which may hurt the Fund’s performance. Cash positions may also subject the Fund to additional risks and costs, such as increased
exposure to the custodian bank holding the assets and any fees imposed for large cash
balances.
Prepayment Risk. The issuer of certain securities may repay principal in advance, especially when yields fall. Changes in the
rate at which prepayments or redemptions occur can affect the return on investment of these
securities. When debt obligations are prepaid or 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 coupons, resulting in an unexpected capital loss.
Privately Placed Securities Risk. Privately placed securities generally are less liquid than publicly traded securities and the Fund may not always be able to sell such securities without experiencing delays in finding buyers or reducing
the sale price for such securities. The disposition of some of the securities held by the Fund
may be restricted under federal securities laws. As a result, the Fund may not be able to dispose of such investments at a time when, or at a price at which, it desires to do so and may have to bear expenses of
registering these securities, if necessary. These securities may also be difficult to
value.
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 Agency Shares has varied from
year to year for the past six calendar years. The table shows the average annual total returns
for the past one year, five years and life of the Fund.
Effective September 3, 2024, the Fund adopted a non-fundamental investment policy to ordinarily invest, under
normal circumstances, 100% of its total assets in weekly liquid assets (as defined under Rule
2a-7 of the Investment Company Act). Consequently, the performance information shown below may
have been different had the non-fundamental investment policy been in effect.
To obtain current yield information call 1-800-766-7722. Past performance is not
necessarily an indication of how the Fund will perform in the
future.
| YEAR-BY-YEAR RETURNS |
| Best Quarter |
4Q, 2023 |
0.85% |
| Worst Quarter |
4Q 2020 1Q 2021 |
-0.01% |
| |
1Q 2022 | |
| The Fund’s year-to-date total return |
through |
3/31/25 |
was |
0.54% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2024) |
|||
| |
Past |
Past |
Life of Fund
since |
| |
1 Year |
5 Years |
03/01/2018 |
| AGENCY SHARES |
3.11 % |
1.50 % |
1.43 % |
Management
J.P. Morgan Investment Management Inc. (the adviser)
Purchase and Sale of Fund Shares
Purchase minimums
| For Agency Shares | |
| To establish an account |
$5,000,000 |
| To add to an account |
No minimum levels |
You may purchase or redeem shares on any business day that the Fund is open:
●
Through your financial intermediary
●
By
writing to J.P. Morgan Institutional Funds Service Center, P.O. Box 219265, Kansas City, MO 64121-9265
●
After you open an account, by calling J.P. Morgan Institutional Funds Service Center at 1-800-766-7722
4
Tax
Information
The Fund’s distributions of interest on municipal
obligations 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 obligations may be subject to the federal alternative minimum tax. To the extent that the
Fund’s distributions are derived from interest on obligations 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 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
