Summary Prospectus July
1, 2025
| JPMorgan Core Plus Bond Fund Class/Ticker: A/ONIAX C/OBDCX I/HLIPX |
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 July 1, 2025, 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 by investing primarily in a diversified portfolio of high-,
medium- and low-grade debt securities.
Fees and Expenses of the Fund
The following tables describe 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. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $100,000 in the J.P. Morgan Funds. More information about these and other discounts is available from your
financial intermediary and in “Investing with J.P. Morgan Funds — SALES CHARGES AND FINANCIAL INTERMEDIARY COMPENSATION” on page 157 and in “Financial Intermediary-Specific Sales Charge Waivers”
in Appendix A of the prospectus and in “PURCHASES, REDEMPTIONS AND EXCHANGES” in Appendix A to Part II of the Statement of
Additional Information.
| SHAREHOLDER FEES (Fees paid directly from your investment) | |||
| |
Class A |
Class C |
Class I |
| Maximum Sales Charge
(Load) Imposed on Purchases as a % of the Offering Price |
3.75% |
NONE |
NONE |
| Maximum Deferred Sales Charge (Load) as % of Original Cost of the Shares |
NONE1 |
1.00% |
NONE |
1
For purchases under $1 million.
“Acquired Fund Fees and Expenses” are expenses incurred
indirectly by the Fund through its ownership of shares in other investment companies, including
affiliated money market funds, other mutual funds, exchange-traded funds and business development
companies. The impact of Acquired Fund Fees and Expenses is included in the total returns of the Fund. Acquired Fund Fees and Expenses are not direct costs of the Fund, are not used by the Fund to calculate its net asset value per share and are not included in the calculation of the
ratio of expenses to average net assets shown in the Financial Highlights section of the
Fund’s prospectus.
| ANNUAL FUND OPERATING EXPENSES
(Expenses that you pay each year as a percentage of the
value of your investment) |
|||
| |
Class A |
Class C |
Class I |
| Management Fees
|
0.30% |
0.30% |
0.30% |
| Distribution (Rule 12b-1) Fees |
0.25 |
0.75 |
NONE |
| Other Expenses
|
0.33 |
0.33 |
0.33 |
| Service Fees
|
0.25 |
0.25 |
0.25 |
| Remainder of Other Expenses
|
0.08 |
0.08 |
0.08 |
| Acquired Fund Fees and Expenses
|
0.02 |
0.02 |
0.02 |
| Total Annual Fund Operating Expenses
|
0.90 |
1.40 |
0.65 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.15 |
-0.02 |
-0.19 |
| Total Annual Fund Operating Expenses after Fee Waivers and/or Expense Reimburse- ments 1 |
0.75 |
1.38 |
0.46 |
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 0.75% and 0.46% of the average daily net assets of Class A and Class I Shares, respectively.
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 $10,000 in
the Fund for the time periods indicated. The Example also assumes that your investment has a 5%
return each year and that the Fund’s
1
operating expenses are equal to the total
annual fund operating expenses after fee waivers and expense reimbursements shown in the fee
table through 6/30/26 and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.
| IF YOU SELL YOUR SHARES, YOUR COST WOULD BE:
| ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| CLASS A SHARES ($) |
449 |
637 |
841 |
1,428 |
| CLASS C SHARES ($) |
240 |
441 |
764 |
1,542 |
| CLASS I SHARES ($) |
47 |
189 |
343 |
792 |
| IF YOU DO NOT SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| CLASS A SHARES ($) |
449 |
637 |
841 |
1,428 |
| CLASS C SHARES ($) |
140 |
441 |
764 |
1,542 |
| CLASS I SHARES ($) |
47 |
189 |
343 |
792 |
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 91% of the average value of its portfolio.
What are the Fund’s main investment strategies?
As part of its main investment strategy, the Fund may principally invest in corporate bonds, U.S. treasury obligations and other U.S. government and agency
securities, and asset-backed, mortgage-related and mortgage-backed securities. The Fund also may
invest in bonds, convertible securities, preferred stock, loan participations and assignments (Loans) and commitments to purchase loan assignments (Unfunded Commitments), and foreign and emerging market debt securities rated
below investment grade (i.e., high yield or junk bonds) or the unrated equivalent.
As a matter of fundamental policy, the Fund will invest at least 80% of its Assets in bonds. For purposes of this policy, “Assets” means net assets plus the amount
of borrowings for investment purposes. The Fund’s average weighted maturity will ordinarily
range between five and twenty years. The Fund may have a longer or shorter average weighted
maturity under certain market conditions and the Fund may shorten or lengthen its average
weighted maturity if deemed appropriate for temporary defensive purposes. Because of the Fund’s holdings in asset-backed, mortgage-backed and similar securities, the Fund’s average weighted maturity is
equivalent to the average weighted maturity of the cash flows in the securities held by the Fund
given certain prepayment assumptions (also known as weighted average life).
The adviser will invest across the credit spectrum to provide the Fund
exposure to various credit rating categories. Under normal conditions, at least 70% of the Fund’s total assets must be
invested in securities that, at the time of
purchase, are rated investment grade by a nationally recognized statistical rating organization
or in securities that are unrated but are deemed by the adviser to be of comparable quality. The balance of the Fund’s assets are not required to meet any minimum quality rating although the Fund will not, under
normal circumstances, invest more than 30% of its total assets in below investment grade
securities (or the unrated equivalent). Such securities may include so called “distressed debt.” Distressed debt includes securities of issuers experiencing financial or operating difficulties, securities where the issuer has
defaulted in the payment of interest or principal or in the performance of its covenants or
agreements, securities of issuers that may be involved in bankruptcy proceedings, reorganizations
or financial restructurings or securities of issuers operating in troubled industries.
The Fund may also invest in loan assignments and participations (Loans) and
commitments to purchase loan assignments (Unfunded Commitments) including below investment grade
Loans and Unfunded Commitments. Loans will typically consist of senior floating rate loans
(Senior Loans), but may also include secured and unsecured loans, second lien loans or more junior
(Junior Loans) and bridge loans. Loans may be issued by obligors in the U.S. or in foreign or
emerging markets.
The Fund may invest a significant portion of all
of its assets in mortgage-related and mortgage-backed securities at the adviser’s
discretion. Mortgage-related and mortgage-backed securities may be structured as collateralized mortgage obligations (agency and non-agency), stripped mortgage-backed securities (interest-only or principal-only), commercial
mortgage-backed securities, mortgage pass-through securities and cash and cash equivalents. The
Fund expects to invest no more than 10% of its assets in “sub-prime” mortgage-related
securities at the time of purchase. The Fund may also enter into “dollar rolls” in
which the Fund sells mortgage-backed securities and at the same time contracts to buy back very similar securities on a future date.
Up to 25% of the Fund’s Assets may be invested in foreign securities, including securities denominated
in foreign currencies (some of which may be below investment grade securities). Foreign
securities include securities issued by foreign governments or their agencies and instrumentalities and companies that are incorporated outside the United States, including securities from issuers in countries whose
economies are less developed (emerging markets), but do not include collateralized loan
obligations (CLOs) that are denominated in U.S. dollars. The Fund’s investments in below investment grade securities or the unrated equivalent including below investment grade foreign securities will not, under normal circumstances,
exceed more than 30% of the Fund’s total assets.
In addition to direct investments in securities, 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, options, swaps and forward contracts as tools in the management of portfolio assets.
The Fund may use derivatives to hedge various investments, for risk management and/or to increase income or
gain to the Fund. In addition to the mortgage dollar rolls as described above, the Fund may
utilize other relative value strategies involving credit-oriented trades, combinations of derivatives, and combinations of derivatives and fixed income securities.
2
The Fund may also utilize foreign currency
derivatives such as currency forwards to hedge its non-dollar investments back to the U.S. dollar
or use such derivatives to gain or adjust exposure to particular foreign securities, markets or currencies.
The adviser allocates the Fund’s assets among a range of sectors based on strategic positioning and other tactical considerations. In buying and selling investments for the
Fund, the adviser looks for market sectors and individual securities that it believes will
perform well over time. The adviser selects individual securities after performing a risk/reward analysis that includes an evaluation of interest rate risk, credit risk, currency risk, legal provisions and the structure
of the transactions. With respect to the high yield portion of the Fund, the adviser focuses on
value in choosing securities for the Fund by looking at individual securities against the context of broader market factors. As part of its investment process, the adviser seeks to assess the impact of environmental, social
and governance (ESG) factors on certain issuers or countries 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 issuers and
ascertain key issues that merit engagement with issuers. These assessments may not be conclusive
and securities of issuers or countries 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 of issuers or countries that may be
positively impacted by such factors.
The Fund may enter into lending agreements under which the Fund would lend money for temporary purposes directly to another J.P. Morgan Fund through a credit facility,
subject to meeting the conditions of an SEC exemptive order granted to the Fund permitting such
interfund lending.
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.
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 or the threat or
potential of one or more such factors and occurrences.
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 Loans and other variable and floating rate securities. Although these instruments
are generally less sensitive to interest rate changes than fixed rate instruments, the value of variable and floating rate Loans and other 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.
Government Securities Risk. The Fund invests in 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), or the Federal Home Loan Mortgage Corporation
(Freddie Mac)). 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
3
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.
Foreign Securities and Emerging Markets Risk. Investments in foreign issuers and foreign securities (including depositary receipts) are subject to additional risks, including political and economic risks, unstable governments, civil
conflicts and war, greater volatility, decreased market liquidity, expropriation and
nationalization risks, sanctions or other measures by the United States or other governments,
currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on
investment, and less stringent investor protection and disclosure standards of foreign markets. In certain markets where securities and other instruments are not traded “delivery versus payment,” the Fund may not
receive timely payment for securities or other instruments it has delivered or receive delivery
of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. Foreign market trading hours, clearance and settlement procedures, and holiday
schedules may limit the Fund’s ability to buy and sell securities.
Events and evolving conditions in certain economies or markets may alter
the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. These risks are magnified in “emerging markets.”
Emerging market countries typically have less established market economies than developed
countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local
capital markets and greater difficulty in determining market valuations of securities due to
limited public information on issuers. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information
related to an investment may not be available or reliable. Additionally, the Fund may have
substantial difficulties exercising its legal rights or enforcing a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular in emerging markets countries, which can increase
the risks of loss.
Foreign Issuer Risk. U.S. dollar-denominated securities of foreign issuers or U.S. affiliates of foreign issuers may be subject to
additional risks not faced by domestic issuers. These risks include political and economic risks,
civil conflicts and war, greater volatility, expropriation and nationalization risks, sanctions
or other measures by the United States or other governments, and regulatory issues facing issuers in such foreign countries. Events and evolving conditions in certain economies or markets may alter the risks associated with
investments tied to countries or regions that historically were perceived as comparatively stable
becoming riskier and more volatile. Foreign issuers may not be subject to uniform accounting, auditing and financial reporting standards and there may be less reliable and publicly available financial and other
information about such issuers as compared to domestic issuers.
Geographic Focus Risk. The Fund may focus its investments
in one or more regions or small groups of countries. As a result, the Fund’s performance
may be subject to greater volatility than a more geographically diversified fund.
Sovereign Debt
Risk. The Fund may invest in securities issued or guaranteed by foreign governmental entities
(known as sovereign debt securities). These investments are subject to the risk of payment delays
or defaults, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, large debt positions relative to the country’s economy or failure to implement economic
reforms. There is no legal or bankruptcy process for collecting sovereign debt.
Currency Risk. Changes in foreign currency exchange rates
will affect the value of the Fund’s securities and may affect the price of the Fund’s
shares. Generally, when the value of the U.S. dollar rises in value relative to a foreign currency, an investment impacted by that currency loses value because that currency is worth less in U.S. dollars. Currency exchange
rates may fluctuate significantly over short periods of time for a number of reasons, including
changes in interest rates. Devaluation of a currency by a country’s government or banking authority also will have a significant impact on the value of any investments denominated in that currency. Currency markets
generally are not as regulated as securities markets, may be riskier than other types of
investments and may increase the volatility of the Fund. Although the Fund may attempt to hedge its currency exposure into the U.S. dollar, it may not be successful in reducing the effects of currency fluctuations. The
Fund may also hedge from one foreign currency to another. In addition, the Fund’s use of
currency hedging may not be successful, including due to delays in placing trades and other operational limitations, and the use of such strategies may lower the Fund’s potential returns.
Asset-Backed, Mortgage-Related and Mortgage-Backed Securities
Risk. The Fund may invest in asset-backed, mortgage-related and mortgage-backed securities including so called “sub-prime” mortgages that are subject to
certain other risks including prepayment and call risks. When mortgages and other obligations are
prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected
capital loss and/or a decrease in the amount of dividends and yield. In periods of either rising
or declining interest rates, the Fund may be subject to extension risk, and may receive principal later than expected. As a result, in periods of rising interest rates, the Fund may exhibit additional volatility.
During periods of difficult or frozen credit markets, significant changes in interest rates or
deteriorating economic conditions, such securities may decline in value, face valuation
difficulties, become more volatile and/or become illiquid. Additionally, asset-backed, mortgage-related and mortgage-backed securities are subject to risks associated with their structure and the nature of the
assets underlying the securities and the servicing of those assets. Certain asset-backed,
mortgage-related and mortgage-backed securities may face valuation difficulties and may be less liquid than other types of asset-backed, mortgage-related and mortgage-backed securities, or debt securities.
Collateralized mortgage obligations (CMOs) and stripped mortgage-backed securities, including those structured as IOs and POs, are more volatile and may be more
sensitive to the rate of prepayments than other mortgage-related securities.
4
The risk of default, as described under
“Credit Risk,” for “sub-prime” mortgages is generally higher than other types of mortgage-backed securities. The structure of some of these securities may be complex and there may be less
available information than other types of debt securities.
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.
High Yield Securities
and Loan Risk. The Fund invests in instruments including junk bonds, Loans and instruments that
are issued by companies that are highly leveraged, less creditworthy or financially distressed.
These investments are considered to be speculative and may be subject to greater risk of loss
(including substantial or total loss), greater sensitivity to economic changes, valuation difficulties and potential illiquidity. Such investments may be subject to additional risks including subordination to other creditors, no collateral
or limited rights in collateral, lack of a regular trading market, extended settlement periods,
liquidity risks, prepayment risks, potentially less protection under the federal securities laws and lack of publicly available information.
In recent years, there has been a broad trend of weaker or less restrictive covenant protections in both the Loan and high yield markets. 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 Loans or high yield
securities, increase the claims against assets that are permitted against collateral securing Loans or 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 Loans or high yield securities issued by such borrowers. Each of these factors might negatively impact the Loans and high yield
instruments held by the Fund.
High yield securities and Loans that are deemed to be liquid at the time of purchase may become illiquid. No active trading market may exist for some Loans and other
instruments and certain investments may be subject to restrictions on resale. In addition, the
settlement period for Loans is uncertain as there is no standardized settlement schedule applicable to such investments. Certain Loans may take more than seven days to settle. 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 is more pronounced for the Fund than for funds that invest primarily in other types of fixed income instruments or equity securities.
When Loans and other 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. Certain Loans may not be considered securities
under the federal securities laws and, therefore, investments in such Loans may not be subject to certain protections under those laws. In addition, the adviser may not have access to material non-public information to which
other investors may have access.
Covenant Lite Loan Risk. The Fund may invest in, or obtain exposure to, Loans that are “covenant lite.” Covenants contained in loan documentation are
intended to protect lenders by imposing certain restrictions and other limitations on a borrower’s operations or assets and by providing certain information and consent rights to lenders. Covenant lite loans
may lack financial maintenance covenants that in certain situations can allow lenders to claim a
default on the loan to seek to protect the interests of the lenders. The absence of financial
maintenance covenants in a covenant lite loan might result in a lower recovery in the event of a
default by the borrower. Covenant lite loans have become much more prevalent in recent
years.
Derivatives Risk. Derivatives, including futures contracts, options, swaps, credit default swaps, forward contracts and currency forwards, may be riskier than other types
of investments and may increase the volatility of the Fund. Derivatives may be particularly
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 also 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 currency, 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 a Fund’s counterparty and operational risk, which includes documentation or settlement issues, system failures, inadequate controls and human error. Certain of the
Fund’s transactions in derivatives could also affect the amount, timing and character of
distributions to shareholders which may result in the Fund realizing more short-term capital gain and ordinary income subject to tax at ordinary income tax rates than it would if it did not engage in such transactions, which may
adversely impact the Fund’s after-tax returns.
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
5
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.
Convertible Securities Risk. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with
fluctuations in the market value of the underlying securities. Contingent convertible securities
or CoCos are subject to additional risk factors. A contingent convertible security is a hybrid debt security typically issued by a non-U.S. bank that may be convertible into equity or may be written down if a pre-specified
trigger event such as a decline in capital ratio below a prescribed threshold occurs. If such a
trigger event occurs, a Fund may lose the principal amount invested on a permanent or temporary basis or the contingent convertible security may be converted to equity. In addition to being subject to a possible
write-down upon the occurrence of a trigger event, contingent convertible securities may also be
subject to a permanent write-down or conversion into equity (in whole or in part), if the applicable bank regulator or other public administrative authority having responsibility for managing the orderly
dissolution of an institution (the “resolution authority”) has determined that the issuer is not viable. Even though the Fund does not invest in common stock as a principal investment strategy, the
Fund will be subject to increased equity market risk in the event that such securities are
converted to equity. Coupon payments on contingent convertibles securities may be discretionary and may be cancelled by the issuer. Holders of contingent convertible securities may suffer a loss of capital when
comparable equity holders do not. As contingent convertible securities may be perpetual or have
long-dated maturities, they may face greater interest rate sensitivity and may be subject to greater fluctuations in value than securities with shorter maturity dates. Such securities also may be subject to prepayment risk
due to optional or mandatory redemption provisions. Certain types of convertible securities may
decline in value or lose their value entirely if the issuer’s financial condition is significantly impaired.
Preferred Securities Risk. Preferred securities generally have a preference as to dividends and liquidation over an issuer’s common stock but ranks junior to debt
securities in an issuer’s capital structure. Unlike interest payments on debt securities,
dividends on preferred securities are payable only if declared by the issuer’s board of
directors. As a consequence, if the board of directors of an issuer does not declare dividends or distributions for the relevant dividend or distribution periods, the issuer will not be obligated to pay dividends or
distributions on the relevant payment date, and such dividends and distributions may be
forfeited. Holders of preferred securities typically do not have voting rights except in certain circumstances where they may be given only limited voting rights. Preferred securities also may be subject to optional or mandatory
redemption provisions.
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.
Interfund Lending Risk. A delay in repayment to the Fund from a borrowing fund could result in lost opportunity costs. Interfund
loans are subject to the risk that the borrowing fund could be unable to repay the loan when due.
In the case of a default by a borrowing fund and to the extent that the loan is collateralized,
the Fund could take possession of collateral that the Fund is not permitted to hold and,
therefore, would be required to dispose of such collateral as soon as possible, which could result in a loss to the Fund.
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 I 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 Bloomberg U.S. Aggregate 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.
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.
6
| YEAR-BY-YEAR RETURNS — CLASS I SHARES |
| Best Quarter |
4th quarter, 2023 |
6.85% |
| Worst Quarter |
1st quarter, 2022 |
-5.46% |
| The Fund’s year-to-date total return |
through |
3/31/25 |
was |
2.88% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2024) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| CLASS I SHARES |
|
|
|
| Return Before Taxes |
2.78 % |
0.51 % |
1.94 % |
| Return After Taxes on Distributions |
0.78 |
-1.03 |
0.51 |
| Return After Taxes on Distributions and Sale of Fund Shares |
1.63 |
-0.21 |
0.89 |
| CLASS A SHARES |
|
|
|
| Return Before Taxes |
-1.19 |
-0.52 |
1.29 |
| CLASS C SHARES |
|
|
|
| Return Before Taxes |
0.81 |
-0.41 |
1.15 |
| BLOOMBERG U.S. AGGREGATE INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
1.25 |
-0.33 |
1.35 |
After-tax returns are shown for only the Class I Shares and after-tax returns for the other classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state and local taxes. Actual after-tax returns depend on 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
Fund Since |
Primary Title with Investment Adviser |
| Richard D. Figuly |
2006 |
Managing Director |
| J. Andrew Norelli |
2014 |
Managing Director |
| Lisa Coleman* |
2020 |
Managing Director |
| Thomas Hauser |
2020 |
Managing Director |
| Kay Herr |
2023 |
Managing Director |
| Priya Misra |
2024 |
Managing Director |
| Vikas Pathani |
2025 |
Managing Director |
*
Ms. Coleman has announced her retirement from JPMIM effective March 2026. Until her retirement, Ms. Coleman will continue to serve on the portfolio management
team, and upon her retirement, Messrs. Figuly, Norelli, Hauser, Pathani and Mses. Herr and Misra
will continue to be responsible for the management of the Fund.
Purchase and Sale of Fund Shares
| Purchase minimums | |
| For Class A and Class C Shares | |
| To establish an account |
$1,000 |
| To add to an account |
$50 |
| For Class I Shares | |
| To establish an account |
$1,000,000 |
| 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.
7
