UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21295

JPMorgan Trust I

 (Exact name of registrant as specified in charter)

245 Park Avenue

New York, NY 10167

 (Address of principal executive offices) (Zip code)

Frank J. Nasta

245 Park Avenue

New York, NY 10167

 (Name and Address of Agent for Service)

Registrant’s telephone number, including area code:  (800) 480-4111

Date of fiscal year end:  June 30

Date of reporting period: July 1, 2009 through December 31, 2009

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).

Semi-Annual Report

J.P. Morgan Small Cap Funds

Six months ended December 31, 2009 (Unaudited)

JPMorgan Dynamic Small Cap Growth Fund
JPMorgan Small Cap Core Fund
JPMorgan Small Cap Equity Fund
JPMorgan Small Cap Growth Fund
JPMorgan Small Cap Value Fund
JPMorgan U.S. Small Company Fund

CONTENTS

President’s Letter	1
Fund Commentaries:
JPMorgan Dynamic Small Cap Growth Fund	2
JPMorgan Small Cap Core Fund	4
JPMorgan Small Cap Equity Fund	6
JPMorgan Small Cap Growth Fund	8
JPMorgan Small Cap Value Fund	10
JPMorgan U.S. Small Company Fund	12
Schedules of Portfolio Investments	14
Financial Statements	48
Financial Highlights	64
Notes to Financial Statements	76
Schedule of Shareholder Expenses	85
Board Approval of Investment Advisory Agreements	88

 

Investments in a Fund are not bank deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when the Fund’s share price is lower than when you invested.

Past performance is no guarantee for future performance. The general market views expressed in this report are opinions based on conditions through the end of the reporting period and are subject to change without notice based on market and other conditions. These views are not intended to predict the future performance of a Fund or the securities markets. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Such views are not meant as investment advice and may not be relied on as an indication of trading intent on behalf of any Fund.

Prospective investors should refer to the Funds’ prospectus for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Funds Service Center at (800)-480-4111 for a prospectus containing more complete information about a Fund including management fees and other expenses. Please read it carefully before investing.

PRESIDENT’S LETTER
JANUARY 15, 2010 (Unaudited)

Dear Shareholder:

We’ve certainly come a long way from the negative and confusing environment that we faced earlier this year, when the global financial system was in the midst of an unprecedented crisis, stock markets worldwide were crashing, and the U.S. economy was in the midst of its worst recession since World War II. In fact, as we close on the last quarter of 2009, things look better in many ways; the financial crisis has abated, stock markets are up substantially from their lows, and the economy appears to have embarked on a recovery.

  “In fact, as we close on the last quarter of 2009, things look better in many ways; the financial crisis has abated, stock markets are up substantially from their lows, and the economy appears to have embarked on a recovery.”

While this is welcomed, we, like you, are aware of how far we still have to go to return to “normal” in terms of the economy and markets. Pent-up demand — combined with monetary and fiscal stimulus — may have ignited the recovery, but the recovery will need job growth to sustain itself. While we do expect job growth to eventually materialize, the economy remains vulnerable to a relapse on the road to recovery. Therefore, it makes sense to maintain a diversified portfolio — one that can benefit from a recovery maturing into a full-fledged expansion, while still providing some protection from any potential retreat from that path.

Equity markets continue to rally

A strong second quarter stock market rally helped propel the equity markets out of negative territory for the year. This rally continued throughout the second half of the year. The Standard & Poor’s 500 Index (the “S&P500” Index) returned 22.6 for the 6-month period ended December 31, 2009.

From an equity style perspective, mid cap companies surged ahead of their small and large cap counterparts for the 6-month period (27.8%, according to the Russell Midcap Index, compared to 23.1% and 23.9%, as measured by the Russell 1000 and the Russell 2000 Indexes, respectively). Among large cap stocks, growth and value fared similarly; the Russell 1000 Growth Index returned 23.0% for the 6-month period, compared to 23.2% for the Russell 1000 Value Index. In the mid and small cap sectors, value companies performed ahead of growth, with the Russell Midcap Value returning 30.1% and the Midcap Growth returning 25.5% for the period. In the small cap segment, the Russell 2000 Value Index returned 27.2%, while the Russell 2000 Growth Index returned 20.8%.

Overseas stocks, particularly emerging markets, overcame a rough start to the year to turn in an equally impressive comeback over the six-month period. The MSCI Emerging Markets Index returned 31.4 (gross) for the period, while the MSCI EAFE Index returned 22.2 (gross) for the same period.

Investors continue to seek higher risk, higher yields

Investors continued to flee to mortgage, investment-grade corporate and high yield areas of the market, all of which posted strong gains. Treasury markets, however, declined as investors retreated from the “flight to safety” that they took in 2008. In this environment, the Barclays Capital U.S. Aggregate Index returned a modest 4.0% for the 6-month period. Meanwhile, the Barclays Capital High Yield Index returned 21.3% for the six-month period, and the Barclays Capital Emerging Markets Index returned 14.0%. Yields on longer term Treasuries continued to climb. Yields on the benchmark 10-year Treasury jumped from 3.5% six months ago to 3.9% as of the end of this reporting period. Yields on the 30-year benchmark were 4.6%, compared to 4.3% six months ago, and yields on the two-year note remained unchanged at 1.1%.

Manage risks on the road to recovery

Both the Federal Reserve and the Federal Government have taken unprecedented steps to aid the economy. Although the effectiveness of these measures will be debated for years to come, the economy appears to be improving, whether due to government stimulus or not. Less controversial, however, are the eventual negative side effects of these actions. In the long run, the debt incurred by the Federal Government to stimulate the economy should result in both higher taxes and higher long-term interest rates. While the New Year may bring investors some new investing opportunities, it’s also important to safeguard portfolios against potential risks by maintaining a balanced approach including a diverse array of fixed income and alternative asset classes.

On behalf of everyone at J.P. Morgan Asset Management, I would like to wish you a very happy and prosperous new year. We look forward to continuing to support your investment goals in 2010 and beyond. Should you have any questions, please visit our website at www.jpmorganfunds.com, or contact the J.P. Morgan Funds Service Center at 1-800-480-4111.

Sincerely yours,

 

George C.W. Gatch
President and CEO
J.P. Morgan Funds

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   1

JPMorgan Dynamic Small Cap Growth Fund
    

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	May 19, 1997
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$190,087
Primary Benchmark	Russell 2000 Growth Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Dynamic Small Cap Growth Fund, which seeks capital growth over the long term,* returned 17.41%** (Class A Shares, no sales charge) for the six month period ended December 31, 2009, compared to the 20.75% return for the Russell 2000 Growth Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter — its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

Although the Fund generated a strong absolute return during the reporting period, it lagged the Index. When the stock market began to recover in March, low-quality small cap stocks rallied significantly. For this reason, growth managers lagged the Index. As that low quality rally abated later in the six-month period, growth managers gained ground.

The Fund emphasized higher quality stocks, while the market tended to reward low-quality, low-priced, more leveraged stocks that were positioned to move higher during the economic recovery. The Fund also has a significant momentum bias. While momentum became less of a headwind as the year progressed, it was a large detractor for the period.

In terms of sectors, utilities and consumer discretionary were the biggest detractors from performance. At the individual stock level, Broadpoint Gleacher Securities Group weighed on results. The investment bank, which has historically focused on fixed-income (bonds) trading, suffered on concerns that new competitors will enter the space as the economy recovers. But we think such concerns are misplaced. Another negative contributor to Fund performance was Synaptics, Inc., which manufactures touch screen technology for electronic devices; it underperformed because of an increased competitive landscape that led to a decline in personal computer-based revenues.

On the positive side, the consumer staples and healthcare sectors contributed to performance. Insulet Corp., which manufactures a device that helps diabetics monitor their glucose levels, had very good fundamentals and has performed quite strongly during the period. Sourcefire, Inc., an internet security company, also contributed to performance. The company is well managed, has strong fundamentals and is benefitting from growing demand in the U.S. and abroad for defense systems for computer networks.

Q: HOW WAS THE FUND MANAGED?

A: We employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. Our aim was to identify growth companies with leading competitive positions, run by highly motivated and talented management. Potential investments were subjected to rigorous financial analysis. We believe that a disciplined valuation process is necessary to enhance long-term returns.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Nuance Communications, Inc.	3.0	%
2.	DSW, Inc., Class A	2.3
3.	Sourcefire, Inc.	2.1
4.	F5 Networks, Inc.	2.0
5.	HEICO Corp.	1.9
6.	Concho Resources, Inc.	1.9
7.	GEO Group, Inc. (The)	1.9
8.	Syntel, Inc.	1.9
9.	Simpson Manufacturing Co., Inc.	1.8
10.	Blackboard, Inc.	1.8

 

PORTFOLIO COMPOSITION BY SECTOR***

Information Technology	24.1	%
Health Care	23.5
Consumer Discretionary	18.5
Industrials	15.6
Financials	6.6
Energy	3.5
Telecommunication Services	2.3
Consumer Staples	1.5
Materials	0.8
Short-Term Investment	3.6

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

2   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	5/19/97
Without Sales Charge			17.41	%		27.37	%		(0.32	)%		0.99	%
With Sales Charge*			11.24			20.66			(1.38	)		0.45
CLASS B SHARES	5/19/97
Without CDSC			17.05			26.74			(0.90	)		0.49
With CDSC**			12.05			21.74			(1.32	)		0.49
CLASS C SHARES	1/7/98
Without CDSC			17.09			26.79			(0.89	)		0.37
With CDSC***			16.09			25.79			(0.89	)		0.37
SELECT CLASS SHARES	4/5/99		17.68			28.02			0.09			1.41

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Dynamic Small Cap Growth Fund, the Russell 2000 Growth Index and the Lipper Small-Cap Growth Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and includes a sales charge. The performance of the Russell 2000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Growth Index is an unmanaged index which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Small-Cap Growth Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after eight years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   3

JPMorgan Small Cap Core Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	January 1, 1997
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$455,113
Primary Benchmark	Russell 2000 Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Small Cap Core Fund, which seeks capital growth over the long term,* returned 24.50%** (Select Class Shares) for the six months ended December 31, 2009, compared to the 23.90% return for the Russell 2000 Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter, its first increase since the second quarter of 2008.

For the six-month period, small cap equities provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund outperformed the Index during the period. The Fund’s exposure to companies with attractive value characteristics helped during the period, not surprising given that value stocks generally outperformed growth stocks, as the market entered recovery. But these value factors were somewhat overshadowed by the Fund’s momentum factors that focus on stocks with strong recent performance and which hurt relative returns.

In terms of sectors, financials and industrials aided the Fund’s outperformance versus the Index during the six-month period. In the financial sector, World Acceptance Corp., which targets higher-risk consumers, performed well during the period, as it benefited from increased demand for its services. In the industrial sector, Canveo, Inc., a manufacturer of envelopes, business forms and commercial printing, reported better than expected profits, driven by increased sales across its product lines.

On the negative side, materials and consumer discretionary sectors detracted from the Fund’s performance. In the materials sector, Domtar, Inc., North America’s largest maker of paper for copiers and envelopes, reported third-quarter profits that topped analysts’ estimates and received an analyst upgrade. Its shares moved higher, and the Fund was hurt as it had an underweight exposure in the stock versus the Index. Rent-A-Center, Inc., which leases home furnishings and electronics to homeowners, also detracted from the Fund’s performance. The company reported weaker than expected same store sales, which, combined with store closings, led to a drop in overall revenue.

Q: HOW WAS THE FUND MANAGED?

A: The Fund employed a disciplined quantitative ranking methodology to identify stocks of companies in each sector that exhibited superior momentum (companies whose share values have been increasing and have the potential for continued growth) with attractive stock valuations. The managers then do in-depth fundamental research to ensure that the companies have met their original investment thesis. The portfolio continues to be run in a manner that strives to be style pure, fully invested and sector neutral.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Skyworks Solutions, Inc.	1.10	%
2.	Rock-Tenn Co.	1.03
3.	Cash America International, Inc.	1.02
4.	EXCO Resources, Inc.	0.97
5.	Chiquita Brands International, Inc.	0.96
6.	Regal-Beloit Corp.	0.91
7.	JDA Software Group, Inc.	0.91
8.	Sybase, Inc.	0.81
9.	Wabtec Corp.	0.80
10.	World Acceptance Corp.	0.74

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	20.8	%
Industrials	17.2
Consumer Discretionary	14.3
Information Technology	14.2
Health Care	13.9
Energy	4.7
Materials	4.1
Utilities	3.0
Consumer Staples	2.8
Telecommunication Services	1.6
U.S. Treasury Obligation	0.2
Short-Term Investment	3.2

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

4   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
SELECT CLASS SHARES	1/1/97		24.50	%		23.07	%		(0.97	)%		3.41	%

 

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Small Cap Core Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the Russell 2000 Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Select Class Shares have a $1,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   5

JPMorgan Small Cap Equity Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	December 20, 1994
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$1,652,220
Primary Benchmark	Russell 2000 Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Small Cap Equity Fund, which seeks capital growth over the long term,* returned 17.58%** (Class A Shares, no sales charge) for the six months ended December 31, 2009, compared to the 23.90% return for the Russell 2000 Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter — its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund, despite its 17.58% return for the six-month period, underperformed the Index as low quality and cyclical stocks outperformed the Index. In contrast, the Fund tends to focus on high-quality stocks. Sectors that detracted from performance during the period included materials and processing and consumer discretionary. Specific stocks that detracted from performance were the food retailer Winn-Dixie Stores Inc., which was impacted by weaker sales and strengthening competition among food retailers, and Myriad Genetics Inc., a biotechnology company. As more Americans lost their jobs during the period and, for many, health insurance coverage, Myriad Genetics’ revenues declined. Positive sectors included technology and producer durables. Specific stocks that positively contributed to performance included Jarden Corp., which produces a variety of consumer products, and SuccessFactors, Inc., which makes software for companies to optimize employee performance. Jarden Corp. saw its profit margins widen after cutting costs, while SuccessFactors reported improving conditions for small and medium size-businesses.

Q: HOW WAS THE FUND MANAGED?

A: The Fund employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. We looked for companies with leading competitive positions, predictable and durable business models, sustainable free cash flow generation with management committed to increasing intrinsic value.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	ProAssurance Corp.	2.8	%
2.	Jarden Corp.	2.7
3.	Silgan Holdings, Inc.	2.6
4.	PSS World Medical, Inc.	2.1
5.	TransDigm Group, Inc.	2.1
6.	Waste Connections, Inc.	1.8
7.	Papa John’s International, Inc.	1.7
8.	NTELOS Holdings Corp.	1.6
9.	Brink’s Home Security Holdings, Inc.	1.6
10.	Hansen Natural Corp.	1.6

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	17.5	%
Consumer Discretionary	14.8
Information Technology	14.0
Industrials	12.8
Health Care	12.6
Materials	7.9
Consumer Staples	5.4
Energy	5.0
Telecommunication Services	3.2
Utilities	2.9
Short-Term Investment	3.9

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

6   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	12/20/94
Without Sales Charge			17.58	%		31.76	%		5.70	%		7.23	%
With Sales Charge*			11.39			24.82			4.56			6.65
CLASS B SHARES	3/28/95
Without CDSC			17.30			31.08			5.17			6.66
With CDSC**			12.30			26.08			4.85			6.66
CLASS C SHARES	2/19/05
Without CDSC			17.34			31.07			5.16			6.55
With CDSC***			16.34			30.07			5.16			6.55
CLASS R2 SHARES	11/3/08		17.42			31.42			5.64			7.20
CLASS R5 SHARES	5/15/06		17.87			32.41			6.23			7.79
SELECT CLASS SHARES	5/7/96		17.76			32.11			6.07			7.71

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for Class C Shares prior to their inception date are based on the performance of the Class B Shares, whose expenses are substantially similar to those of Class C Shares. Returns for Class R5 Shares prior to their inception date are based on the performance of the Select Class Shares. The actual returns of Class R5 Shares would have been different than those shown because Class R5 Shares have different expenses than Select Class Shares. Returns for Class R2 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares.

The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Small Cap Equity Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and includes a sales charge. The performance of the Russell 2000 Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after eight years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   7

JPMorgan Small Cap Growth Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	July 1, 1991
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$425,138
Primary Benchmark	Russell 2000 Growth Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Small Cap Growth Fund, which seeks long-term capital growth primarily by investing in a portfolio of equity securities of small-capitalization and emerging growth companies,* returned 22.97%** (Class A Shares, no sales charge) for the six months ended December 31, 2009, compared to the 20.75% return for the Russell 2000 Growth Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter — its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

All told, the six-month period provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. Active growth managers performed better against the Index in the latter half of the year. The Fund outperformed the Index for the six-month period, aided by stock selection.

Sectors that contributed to the Fund’s outperformance included healthcare and technology. Among specific stocks that did well were Ulta Salon, a cosmetics and beauty retailer that benefited from higher sales driven, in part, by store expansion. Another contributor for the Fund was clothing retailer J. Crew Group. It generated better profit margins, due to a good product mix and better inventory management. Sectors that detracted from performance included materials and processing and financial services. Specific companies that detracted included Synaptics Inc., which manufactures touch screen technology for electronic devices, and Neutral Tandem Inc., which manufactures broadband equipment. Synaptics Inc. underperformed because of a decline in revenue connected to some of its products, while Neutral Tandem Inc. was impacted by concerns over increased competition.

Q: HOW WAS THE FUND MANAGED?

A: The Fund employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. Our aim was to identify growth companies with leading competitive positions, run by highly motivated and talented management. Potential investments were subjected to rigorous financial analysis.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Nuance Communications, Inc.	2.0	%
2.	DSW, Inc., Class A	1.9
3.	Taleo Corp., Class A	1.6
4.	Emeritus Corp.	1.5
5.	Blackboard, Inc.	1.4
6.	ViaSat, Inc.	1.4
7.	Bruker Corp.	1.4
8.	Omnicell, Inc.	1.3
9.	MedAssets, Inc.	1.3
10.	NetSuite, Inc.	1.3

 

PORTFOLIO COMPOSITION BY SECTOR***

Information Technology	26.9	%
Health Care	24.3
Consumer Discretionary	19.0
Industrials	13.2
Financials	4.9
Energy	4.2
Materials	2.8
Telecommunication Services	1.5
Short-Term Investment	3.2

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

8   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	7/1/91
Without Sales Charge			22.97	%		38.70	%		1.76	%		3.44	%
With Sales Charge*			16.46			31.50			0.66			2.89
CLASS B SHARES	9/12/94
Without CDSC			22.57			37.90			1.13			2.88
With CDSC**			17.57			32.90			0.74			2.88
CLASS C SHARES	11/4/97
Without CDSC			22.47			37.83			1.14			2.75
With CDSC***			21.47			36.83			1.14			2.75
CLASS R2 SHARES	11/3/08		22.53			38.21			1.45			2.51
INSTITUTIONAL CLASS SHARES	2/19/05		23.14			39.37			2.14			3.78
SELECT CLASS SHARES	3/26/96		23.02			39.14			2.01			3.71

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for Institutional Class Shares prior to their inception date are based on the performance of Select Class Shares. The actual returns for Institutional Class Shares would have been different than those shown because Institutional Class Shares have different expenses than Select Class Shares. Returns for Class R2 Shares prior to their inception date are based on the performance of Class A Shares. All prior class performance for Class R2 Shares has been adjusted to reflect the differences in expenses between classes.

The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Small Cap Growth Fund, the Russell 2000 Growth Index and the Lipper Small-Cap Growth Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and includes a sales charge. The performance of the Russell 2000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Growth Index is an unmanaged index which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Small-Cap Growth Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper Inc. Investors cannot invest directly in an index.

Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after eight years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   9

JPMorgan Small Cap Value Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	January 27, 1995
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$439,047
Primary Benchmark	Russell 2000 Value Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Small Cap Value Fund, which seeks long-term capital growth primarily by investing in equity securities of small-capitalization companies,* returned 27.60%** (Select Class Shares) for the six months ended December 31, 2009, compared to the 27.15% return for the Russell 2000 Value Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter, its first increase since the second quarter of 2008.

For the six-month period, small cap equities provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930’s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund outperformed the Index during the period. The Fund’s exposure to companies with attractive value characteristics helped during the period, not surprising given that value stocks generally outperformed growth stocks as the market entered recovery. However, these value factors were somewhat overshadowed by the Fund’s momentum factors that focus on stocks with strong recent performance and which hurt relative returns.

In terms of sectors, financials and utilities aided in the Fund’s outperformance versus the Index during the six-month period. In the financial sector, World Acceptance Corp., which targets higher-risk consumers, performed well during the period, as it benefited from increased demand for its services. In the utilities sector, El Paso Electric Co., a power provider in Texas and New Mexico, performed well as a result of revenue growth driven by an expanding customer base and a hotter-than expected summer.

Sectors that detracted from the Fund’s performance versus the Index included materials and healthcare. In the materials sector, steel manufacturer Worthington Industries Inc. saw profit margins compress because of rising commodity prices and a less-than-expected demand for some of its products. In the healthcare sector, Omnicare, Inc. detracted from performance. The company provides pharmaceuticals and related services to senior citizens and long-term care institutions. Omnicare lowered its profit outlook due to restructuring and the cost of divesting parts of its business. Despite this underperformance, the Fund continues to own Omnicare because we believe it has an attractive valuation and prudently deploys capital.

Q: HOW WAS THE FUND MANAGED?

A: A quantitative ranking methodology was used to identify stocks in each sector that exhibited high earnings quality, had management teams that made effective capital deployment decisions and traded at attractive valuations. The quantitative stock rankings were then implemented via a disciplined portfolio construction process, which balanced risk and return. For each trade suggested by the optimization, the portfolio managers conducted in-depth fundamental research to ensure that the trade met our original investment thesis.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	World Acceptance Corp.	1.2	%
2.	Nicor, Inc.	1.1
3.	EMCOR Group, Inc.	1.1
4.	Key Energy Services, Inc.	1.1
5.	American Greetings Corp., Class A	1.0
6.	Avista Corp.	1.0
7.	EnerSys	1.0
8.	NorthWestern Corp.	1.0
9.	FirstMerit Corp.	0.9
10.	PS Business Parks, Inc.	0.9

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	32.5	%
Industrials	15.4
Consumer Discretionary	13.6
Information Technology	11.3
Materials	7.0
Utilities	5.9
Health Care	5.5
Energy	4.8
Consumer Staples	1.8
Others (each less than 1.0%)	0.9
Short-Term Investment	1.3

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

10   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	1/27/95
Without Sales Charge			27.40	%		24.62	%		0.52	%		9.45	%
With Sales Charge*			20.76			18.09			(0.56	)		8.86
CLASS B SHARES	1/27/95
Without CDSC			27.07			23.81			(0.10	)		8.86
With CDSC**			22.07			18.81			(0.50	)		8.86
CLASS C SHARES	3/22/99
Without CDSC			27.07			23.82			(0.07	)		8.73
With CDSC***			26.07			22.82			(0.07	)		8.73
CLASS R2 SHARES	11/3/08		27.25			24.24			0.27			9.15
CLASS R5 SHARES	5/15/06		27.67			25.10			0.85			9.78
SELECT CLASS SHARES	1/27/95		27.60			24.87			0.77			9.74
ULTRA SHARES	2/22/05		27.67			25.13			0.92			9.82

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for Class R2, Class R5 and Ultra Shares prior to their inception dates are based on the performance of the Select Class Shares, the original class offered. All prior class performance for Class R2 Shares has been adjusted to reflect the differences in expenses between classes. The actual returns of Class R5 Shares and Ultra Shares would have been different than those shown because Class R5 Shares and Ultra Shares have different expenses than Select Class Shares.

The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Small Cap Value Fund, the Russell 2000 Value Index and the Lipper Small-Cap Value Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the Russell 2000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Value Index is an unmanaged index which measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Small-Cap Value Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Select Class Shares have a $1,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after eight years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   11

JPMorgan U.S. Small Company Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	November 4, 1993
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$36,805
Primary Benchmark	Russell 2000 Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan U.S. Small Company Fund, which seeks to provide high total return from a portfolio of small company stocks,* returned 27.46%** (Institutional Class Shares) for the six months ended December 31, 2009, compared to the 23.90% return for the Russell 2000 Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter, its first increase since the second quarter of 2008.

For the six-month period, small cap equities provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930’s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund outperformed the Index during the period. The Fund’s exposure to companies with attractive value characteristics helped during the period, not surprising given that value stocks generally outperformed growth stocks as the market entered recovery. However, these value factors were somewhat overshadowed by the Fund’s momentum factors that focus on stocks with strong recent performance and which hurt relative returns.

In terms of sectors, consumer discretionary and industrials aided the Fund’s outperformance versus the Index during the six-month period. In the consumer discretionary sector, American Greetings Corp., a manufacturer and distributor of greeting cards, posted better than expected earnings. We believe this was the result of cost cutting, improved inventory management and generally consistent revenues. In the industrials sector, Nordson Corp., a manufacturer of precision dispensing equipment, contributed to performance as it reported strong sales across its business lines.

On the negative side, sectors that detracted from the Fund’s performance versus the Index during the period were materials and consumer staples. In the materials sector, steel manufacturer Worthington Industries, Inc. saw its profit margins compress because of rising commodity prices and a less-than-expected demand for some of its products. In the consumer staples sector, Central Garden & Pet Co., a supplier of pet, lawn and garden supplies, experienced weakness in the lawn and garden segments of its business, which negatively impacted earnings.

Q: HOW WAS THE FUND MANAGED?

A: A quantitative ranking methodology was used to identify stocks in each sector, that exhibited high earnings quality, had management teams that made effective capital deployment decisions and traded at attractive valuations. The quantitative stock rankings were then implemented via a disciplined portfolio construction process, which balanced risk and return. For each trade suggested by the optimization, the portfolio managers conducted in-depth fundamental research to ensure that the trade met our original investment thesis.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Nordson Corp.	1.3	%
2.	EMCOR Group, Inc.	1.2
3.	Sybase, Inc.	1.1
4.	American Greetings Corp., Class A	1.1
5.	NorthWestern Corp.	1.1
6.	Minerals Technologies, Inc.	1.1
7.	Tempur-Pedic International, Inc.	1.1
8.	MicroStrategy, Inc., Class A	1.0
9.	LTC Properties, Inc.	0.9
10.	Dollar Financial Corp.	0.9

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	19.8	%
Information Technology	17.7
Consumer Discretionary	15.9
Health Care	14.7
Industrials	13.7
Materials	5.0
Energy	4.5
Utilities	2.8
Consumer Staples	2.1
Telecommunication Services	1.2
U.S. Treasury Obligation	0.3
Short-Term Investment	2.3

 

* The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

** The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

*** Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

12   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	11/1/07
Without Sales Charge			27.31	%		34.51	%		(0.22	)%		0.26	%
With Sales Charge*			20.66			27.52			(1.29	)		(0.28	)
CLASS C SHARES	11/1/07
Without CDSC			26.98			33.73			(0.43	)		0.16
With CDSC**			25.98			32.73			(0.43	)		0.16
INSTITUTIONAL CLASS SHARES	11/4/93		27.46			35.08			0.10			0.50
SELECT CLASS SHARES	9/10/01		27.28			34.64			(0.10	)		0.32

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

The Fund commenced operations on November 4, 1993 and prior to September 7, 2001, operated in a master feeder structure. Returns for the Institutional Class Shares prior to September 7, 2001 are calculated using the historical expenses of an institutional feeder, whose expenses are substantially similar to the expenses of the Institutional Class Shares.

Returns for the Select Class Shares prior to their inception date are calculated using the historical expenses of a retail feeder, that was merged out of existence and whose expenses are substantially similar to the expenses of the Select Class Shares, from June 30, 1999 to September 10, 2001.

Returns for Class A and Class C Shares prior to their inception dates are based on the performance of the Select Class Shares, the original class offered. The actual returns for Class A and Class C Shares would have been lower than those shown because Class A and Class C Shares have higher expenses than Select Class Shares.

The graph illustrates comparative performance for $3,000,000 invested in Institutional Class Shares of the JPMorgan U.S. Small Company Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the Russell 2000 Index does not reflect the deduction of expenses associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Institutional Class Shares have a $3,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   13

JPMorgan Dynamic Small Cap Growth Fund
    

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 95.6%
	Consumer Discretionary — 18.3%
	Diversified Consumer Services — 2.0%
30	American Public Education, Inc. (a) (c)		1,034
132	Lincoln Educational Services Corp. (a)		2,861
			3,895
	Hotels, Restaurants & Leisure — 3.1%
42	DineEquity, Inc. (a)		1,015
48	Life Time Fitness, Inc. (a) (c)		1,189
74	PF Chang’s China Bistro, Inc. (a) (c)		2,806
24	Vail Resorts, Inc. (a) (c)		892
			5,902
	Household Durables — 0.6%
48	Tempur-Pedic International, Inc. (a)		1,141
	Media — 1.4%
159	National CineMedia, Inc.		2,639
	Specialty Retail — 8.7%
48	Children’s Place Retail Stores, Inc. (The) (a) (c)		1,591
168	DSW, Inc., Class A (a) (c)		4,350
57	J Crew Group, Inc. (a) (c)		2,528
69	Kirkland’s, Inc. (a)		1,199
88	Men’s Wearhouse, Inc. (The)		1,855
222	OfficeMax, Inc. (a)		2,819
246	Talbots, Inc. (a) (c)		2,191
			16,533
	Textiles, Apparel & Luxury Goods — 2.5%
105	G-III Apparel Group Ltd. (a) (c)		2,267
101	Iconix Brand Group, Inc. (a) (c)		1,275
45	Under Armour, Inc., Class A (a)		1,216
			4,758
	Total Consumer Discretionary		34,868
	Consumer Staples — 1.5%
	Personal Products — 1.5%
64	NBTY, Inc. (a)		2,765
	Energy — 3.5%
	Oil, Gas & Consumable Fuels — 3.5%
72	Comstock Resources, Inc. (a)		2,933
81	Concho Resources, Inc. (a)		3,632
	Total Energy		6,565
	Financials — 6.6%
	Capital Markets — 2.9%
431	Broadpoint Gleacher Securities, Inc. (a) (c)		1,922
68	Lazard Ltd., (Bermuda), Class A		2,578
106	PennantPark Investment Corp.		947
			5,447
	Insurance — 3.2%
81	HCC Insurance Holdings, Inc. (c)		2,267
37	ProAssurance Corp. (a)		1,982
77	Tower Group, Inc.		1,812
			6,061
	Thrifts & Mortgage Finance — 0.5%
38	WSFS Financial Corp.		964
	Total Financials		12,472
	Health Care — 23.3%
	Biotechnology — 5.2%
28	Alexion Pharmaceuticals, Inc. (a)		1,381
274	Ariad Pharmaceuticals, Inc. (a)		624
128	BioMarin Pharmaceutical, Inc. (a) (c)		2,406
329	Halozyme Therapeutics, Inc. (a) (c)		1,931
113	Incyte Corp. Ltd. (a) (c)		1,028
51	Medivation, Inc. (a) (c)		1,905
106	Myriad Pharmaceuticals, Inc. (a)		533
			9,808
	Health Care Equipment & Supplies — 4.2%
156	Insulet Corp. (a) (c)		2,228
59	Masimo Corp. (a)		1,795
45	Meridian Bioscience, Inc. (c)		963
115	Thoratec Corp. (a) (c)		3,082
			8,068
	Health Care Providers & Services — 7.6%
44	DaVita, Inc. (a)		2,567
158	Emeritus Corp. (a) (c)		2,961
77	Genoptix, Inc. (a) (c)		2,730
106	Health Net, Inc. (a) (c)		2,457
116	Healthspring, Inc. (a)		2,041
77	Psychiatric Solutions, Inc. (a) (c)		1,634
			14,390
	Health Care Technology — 3.0%
23	athenahealth, Inc. (a) (c)		1,059
22	Cerner Corp. (a) (c)		1,822
124	MedAssets, Inc. (a)		2,632
19	Omnicell, Inc. (a)		217
			5,730
	Life Sciences Tools & Services — 0.8%
277	Enzo Biochem, Inc. (a)		1,491

SEE NOTES TO FINANCIAL STATEMENTS.

14   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Pharmaceuticals — 2.5%
115	Cumberland Pharmaceuticals, Inc. (a)		1,568
134	Nektar Therapeutics (a)		1,252
367	Sucampo Pharmaceuticals, Inc., Class A (a)		1,484
64	ViroPharma, Inc. (a) (c)		540
			4,844
	Total Health Care		44,331
	Industrials — 15.5%
	Aerospace & Defense — 1.9%
83	HEICO Corp. (c)		3,657
	Building Products — 3.4%
52	Lennox International, Inc.		2,014
128	Simpson Manufacturing Co., Inc. (c)		3,437
55	Trex Co., Inc. (a)		1,085
			6,536
	Commercial Services & Supplies — 3.2%
160	GEO Group, Inc. (The) (a) (c)		3,496
79	Waste Connections, Inc. (a)		2,639
			6,135
	Construction & Engineering — 0.6%
51	Orion Marine Group, Inc. (a)		1,081
	Electrical Equipment — 1.8%
54	EnerSys (a) (c)		1,170
44	Roper Industries, Inc.		2,294
			3,464
	Industrial Conglomerates — 1.1%
60	Carlisle Cos., Inc.		2,069
	Machinery — 2.5%
62	Graco, Inc.		1,777
71	Wabtec Corp. (c)		2,879
			4,656
	Road & Rail — 1.0%
49	Landstar System, Inc.		1,910
	Total Industrials		29,508
	Information Technology — 23.9%
	Communications Equipment — 5.1%
72	F5 Networks, Inc. (a)		3,796
121	Riverbed Technology, Inc. (a) (c)		2,779
100	ViaSat, Inc. (a) (c)		3,180
			9,755
	Computers & Peripherals — 1.2%
97	Compellent Technologies, Inc. (a)		2,202
	Internet Software & Services — 2.6%
42	Archipelago Learning, Inc. (a)		876
46	Digital River, Inc. (a)		1,247
28	Equinix, Inc. (a) (c)		2,930
			5,053
	IT Services — 2.3%
30	NCI, Inc., Class A (a)		841
92	Syntel, Inc. (c)		3,495
			4,336
	Semiconductors & Semiconductor Equipment — 3.0%
87	Cavium Networks, Inc. (a) (c)		2,068
48	Hittite Microwave Corp. (a)		1,968
67	Monolithic Power Systems, Inc. (a) (c)		1,611
			5,647
	Software — 9.7%
38	ANSYS, Inc. (a) (c)		1,651
73	Blackboard, Inc. (a) (c)		3,332
40	Fortinet, Inc. (a)		694
358	Nuance Communications, Inc. (a) (c)		5,566
83	SolarWinds, Inc. (a) (c)		1,908
148	Sourcefire, Inc. (a)		3,951
140	Take-Two Interactive Software, Inc. (a) (c)		1,409
			18,511
	Total Information Technology		45,504
	Materials — 0.8%
	Chemicals — 0.1%
15	STR Holdings, Inc. (a)		235
	Metals & Mining — 0.7%
85	Commercial Metals Co. (c)		1,329
	Total Materials		1,564
	Telecommunication Services — 2.2%
	Diversified Telecommunication Services — 2.2%
134	Cbeyond, Inc. (a) (c)		2,109
95	Neutral Tandem, Inc. (a) (c)		2,159
	Total Telecommunication Services		4,268
	Total Common Stocks (Cost $149,943)		181,845
Short-Term Investment — 3.6%
	Investment Company — 3.6%
6,794	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (m) (Cost $6,794)		6,794

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   15

JPMorgan Dynamic Small Cap Growth Fund
    

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Investment of Cash Collateral for Securities on Loan — 32.2%
	Investment Company — 32.2%
61,142	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l) (Cost $61,142)		61,142
	Total Investments — 131.4% (Cost $217,879)		249,781
	Liabilities in Excess of Other Assets — (31.4)%		(59,694	)
	NET ASSETS — 100.0%	$	190,087

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

16   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

JPMorgan Small Cap Core Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 96.5%
	Consumer Discretionary — 14.3%
	Auto Components — 0.7%
110	Cooper Tire & Rubber Co.		2,214
56	Spartan Motors, Inc.		315
96	Standard Motor Products, Inc. (a)		816
			3,345
	Distributors — 0.2%
23	Core-Mark Holding Co., Inc. (a)		755
	Diversified Consumer Services — 0.1%
15	Corinthian Colleges, Inc. (a)		212
10	Lincoln Educational Services Corp. (a)		210
			422
	Hotels, Restaurants & Leisure — 1.2%
27	CEC Entertainment, Inc. (a)		852
30	Cracker Barrel Old Country Store, Inc.		1,151
24	DineEquity, Inc. (a) (c)		578
87	Domino’s Pizza, Inc. (a)		727
81	Einstein Noah Restaurant Group, Inc. (a)		799
13	Isle of Capri Casinos, Inc. (a)		98
145	Ruby Tuesday, Inc. (a)		1,046
156	Ruth’s Hospitality Group, Inc. (a)		326
			5,577
	Household Durables — 1.9%
67	American Greetings Corp., Class A		1,460
1	CSS Industries, Inc.		10
35	Helen of Troy Ltd., (Bermuda) (a)		863
30	Hooker Furniture Corp.		367
24	Jarden Corp.		733
49	La-Z-Boy, Inc. (a)		470
118	Tempur-Pedic International, Inc. (a)		2,798
47	Tupperware Brands Corp.		2,189
			8,890
	Internet & Catalog Retail — 0.5%
77	HSN, Inc. (a)		1,554
57	Vitacost.com, Inc. (a)		592
			2,146
	Leisure Equipment & Products — 0.7%
95	JAKKS Pacific, Inc. (a)		1,154
48	RC2 Corp. (a)		703
231	Smith & Wesson Holding Corp. (a) (c)		945
18	Sturm Ruger & Co., Inc. (c)		172
			2,974
	Media — 1.5%
61	AH Belo Corp., Class A (a)		349
127	Belo Corp., Class A		689
71	Carmike Cinemas, Inc. (a)		534
70	Entercom Communications Corp., Class A (a)		496
184	Journal Communications, Inc., Class A		714
206	LIN TV Corp., Class A (a)		918
162	Mediacom Communications Corp., Class A (a)		722
200	Sinclair Broadcast Group, Inc., Class A (a)		804
91	Valassis Communications, Inc. (a)		1,664
			6,890
	Multiline Retail — 0.5%
78	Dillard’s, Inc., Class A		1,439
112	Saks, Inc. (a)		737
			2,176
	Specialty Retail — 3.9%
26	Aeropostale, Inc. (a)		872
107	Asbury Automotive Group, Inc. (a)		1,231
28	Brown Shoe Co., Inc.		279
82	Cabela’s, Inc. (a) (c)		1,175
74	Collective Brands, Inc. (a)		1,678
88	Finish Line, Inc. (The), Class A		1,102
33	Gymboree Corp. (a)		1,448
32	Hot Topic, Inc. (a)		202
33	J Crew Group, Inc. (a)		1,477
41	Jos. A. Bank Clothiers, Inc. (a)		1,721
70	Kirkland’s, Inc. (a)		1,207
123	Lithia Motors, Inc., Class A (a)		1,009
56	Men’s Wearhouse, Inc. (The)		1,182
123	Rent-A-Center, Inc. (a)		2,180
14	Rue21, Inc. (a)		393
74	Sonic Automotive, Inc., Class A (a)		770
			17,926
	Textiles, Apparel & Luxury Goods — 3.1%
21	Deckers Outdoor Corp. (a)		2,085
58	G-III Apparel Group Ltd. (a)		1,253
95	Iconix Brand Group, Inc. (a)		1,202
101	Jones Apparel Group, Inc.		1,629
160	Maidenform Brands, Inc. (a)		2,667
46	Oxford Industries, Inc.		957
129	Perry Ellis International, Inc. (a)		1,946
17	Steven Madden Ltd. (a)		713
32	UniFirst Corp.		1,520
			13,972
	Total Consumer Discretionary		65,073

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   17

JPMorgan Small Cap Core Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Consumer Staples — 2.8%
	Food & Staples Retailing — 0.5%
51	Andersons, Inc. (The)		1,307
10	Nash Finch Co.		352
50	Pantry, Inc. (The) (a)		684
			2,343
	Food Products — 1.8%
24	American Italian Pasta Co., Class A (a)		839
55	B&G Foods, Inc., Class A		501
242	Chiquita Brands International, Inc. (a)		4,362
84	Dole Food Co., Inc. (a) (c)		1,047
16	Sanderson Farms, Inc.		666
11	TreeHouse Foods, Inc. (a)		412
			7,827
	Household Products — 0.3%
144	Central Garden & Pet Co., Class A (a)		1,426
	Personal Products — 0.2%
69	American Oriental Bioengineering, Inc., (China) (a) (c)		323
69	Prestige Brands Holdings, Inc. (a)		539
			862
	Total Consumer Staples		12,458
	Energy — 4.7%
	Energy Equipment & Services — 1.4%
18	Bolt Technology Corp. (a)		202
73	Cal Dive International, Inc. (a)		550
48	Global Industries Ltd. (a)		345
87	Gulfmark Offshore, Inc. (a)		2,466
78	ION Geophysical Corp. (a)		459
15	Lufkin Industries, Inc.		1,098
19	Matrix Service Co. (a)		199
106	Parker Drilling Co. (a)		525
19	T-3 Energy Services, Inc. (a)		474
21	TGC Industries, Inc. (a)		80
			6,398
	Oil, Gas & Consumable Fuels — 3.3%
5	Apco Oil and Gas International, Inc.		110
7	Clayton Williams Energy, Inc. (a)		238
52	Cloud Peak Energy, Inc. (a)		757
207	EXCO Resources, Inc.		4,392
6	FX Energy, Inc. (a)		17
24	Georesources, Inc. (a)		331
278	Gran Tierra Energy, Inc., (Canada) (a)		1,595
166	Gulfport Energy Corp. (a)		1,898
49	Knightsbridge Tankers Ltd., (Bermuda)		646
138	McMoRan Exploration Co. (a)		1,107
22	Penn Virginia Corp.		460
16	Toreador Resources Corp. (a) (c)		162
103	VAALCO Energy, Inc. (a)		467
59	Western Refining, Inc. (a) (c)		276
97	World Fuel Services Corp.		2,604
			15,060
	Total Energy		21,458
	Financials — 20.7%
	Capital Markets — 1.2%
12	Artio Global Investors, Inc. (a)		296
53	BGC Partners, Inc., Class A		245
106	Knight Capital Group, Inc., Class A (a)		1,637
23	Kohlberg Capital Corp.		106
123	MCG Capital Corp. (a)		530
9	Oppenheimer Holdings, Inc., Class A		299
25	optionsXpress Holdings, Inc.		379
65	Penson Worldwide, Inc. (a) (c)		591
23	Pzena Investment Management, Inc., Class A (a)		184
82	SWS Group, Inc.		991
			5,258
	Commercial Banks — 4.9%
66	1st United Bancorp, Inc. (a)		474
3	Alliance Financial Corp.		71
4	BancFirst Corp.		163
32	Banco Latinoamericano de Comercio Exterior S.A., (Panama), Class E		450
35	City Holding Co.		1,119
12	Columbia Banking System, Inc.		197
48	Community Bank System, Inc.		927
14	Community Trust Bancorp, Inc.		343
44	CVB Financial Corp. (c)		382
35	East West Bancorp, Inc.		548
11	Farmers Capital Bank Corp.		110
16	First Bancorp		219
53	First Community Bancshares, Inc.		634
100	First Financial Bancorp		1,450
134	FNB Corp.		908
13	Hudson Valley Holding Corp.		315
57	Iberiabank Corp.		3,040
35	International Bancshares Corp.		656
19	Lakeland Financial Corp.		333
2	Merchants Bancshares, Inc.		34

SEE NOTES TO FINANCIAL STATEMENTS.

18   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Commercial Banks — Continued
123	Nara Bancorp, Inc. (a)		1,394
8	National Bankshares, Inc.		218
49	National Penn Bancshares, Inc.		286
19	NBT Bancorp, Inc.		393
8	Park National Corp. (c)		495
19	Peoples Bancorp, Inc.		185
23	Prosperity Bancshares, Inc.		911
6	Renasant Corp.		77
11	Republic Bancorp, Inc., Class A		217
26	Santander BanCorp (a)		323
7	Sierra Bancorp		55
10	Simmons First National Corp., Class A		275
14	Southside Bancshares, Inc.		280
20	Southwest Bancorp, Inc.		141
144	Sterling Bancshares, Inc.		738
19	SVB Financial Group (a)		805
11	TriCo Bancshares		175
17	Union Bankshares Corp.		216
48	Westamerica Bancorp		2,674
37	Wilshire Bancorp, Inc.		305
			22,536
	Consumer Finance — 2.9%
57	Advance America Cash Advance Centers, Inc.		318
133	Cash America International, Inc.		4,650
114	Dollar Financial Corp. (a)		2,706
37	EZCORP, Inc., Class A (a)		640
20	First Cash Financial Services, Inc. (a)		435
69	Nelnet, Inc., Class A		1,187
94	World Acceptance Corp. (a) (c)		3,375
			13,311
	Diversified Financial Services — 0.8%
12	Compass Diversified Holdings		150
60	Encore Capital Group, Inc. (a)		1,051
12	Marlin Business Services Corp. (a)		93
143	PHH Corp. (a)		2,296
			3,590
	Insurance — 3.5%
272	American Equity Investment Life Holding Co.		2,025
27	American Physicians Capital, Inc.		816
13	American Safety Insurance Holdings Ltd., (Bermuda) (a)		187
27	Amerisafe, Inc. (a)		492
20	Argo Group International Holdings Ltd., (Bermuda) (a)		574
68	Aspen Insurance Holdings Ltd., (Bermuda)		1,726
42	Assured Guaranty Ltd., (Bermuda)		907
71	Delphi Financial Group, Inc., Class A		1,584
58	Flagstone Reinsurance Holdings Ltd., (Bermuda)		629
14	Hallmark Financial Services (a)		110
16	Horace Mann Educators Corp.		196
102	Meadowbrook Insurance Group, Inc.		756
19	National Financial Partners Corp. (a)		157
1	Navigators Group, Inc. (a)		42
56	Platinum Underwriters Holdings Ltd., (Bermuda)		2,148
151	PMA Capital Corp., Class A (a)		950
52	Safety Insurance Group, Inc.		1,880
48	Selective Insurance Group		795
			15,974
	Real Estate Investment Trusts (REITs) — 6.0%
40	American Campus Communities, Inc.		1,135
32	Ashford Hospitality Trust, Inc. (a) (c)		150
79	Associated Estates Realty Corp.		887
14	BioMed Realty Trust, Inc.		227
44	CapLease, Inc.		192
42	Capstead Mortgage Corp.		575
135	CBL & Associates Properties, Inc.		1,302
31	Colonial Properties Trust		359
264	DCT Industrial Trust, Inc.		1,323
112	Developers Diversified Realty Corp.		1,040
29	EastGroup Properties, Inc.		1,114
52	Education Realty Trust, Inc.		252
8	Equity Lifestyle Properties, Inc.		424
70	First Industrial Realty Trust, Inc. (a)		367
79	Glimcher Realty Trust		213
54	Hersha Hospitality Trust		169
14	Home Properties, Inc.		668
56	LaSalle Hotel Properties		1,195
426	Lexington Realty Trust		2,589
338	MFA Financial, Inc.		2,486
9	Mid-America Apartment Communities, Inc.		439
13	Mission West Properties, Inc.		95
101	National Retail Properties, Inc.		2,145
173	NorthStar Realty Finance Corp. (c)		592
72	Omega Healthcare Investors, Inc.		1,408
28	Parkway Properties, Inc.		579
63	Pennsylvania Real Estate Investment Trust (c)		536
17	Pennymac Mortgage Investment Trust (a)		297

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   19

JPMorgan Small Cap Core Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Real Estate Investment Trusts (REITs) — Continued
22	PS Business Parks, Inc.		1,111
21	RAIT Financial Trust (a) (c)		27
26	Ramco-Gershenson Properties Trust		244
126	Senior Housing Properties Trust		2,745
85	Strategic Hotels & Resorts, Inc. (a)		157
13	Sun Communities, Inc.		259
			27,301
	Real Estate Management & Development — 0.3%
36	Altisource Portfolio Solutions S.A., (Luxembourg) (a)		753
19	Forestar Group, Inc. (a)		424
			1,177
	Thrifts & Mortgage Finance — 1.1%
13	Berkshire Hills Bancorp, Inc.		271
29	Dime Community Bancshares		339
66	First Niagara Financial Group, Inc.		912
59	Northwest Bancshares, Inc.		664
27	OceanFirst Financial Corp.		301
186	Ocwen Financial Corp. (a)		1,776
61	Trustco Bank Corp.		383
22	WSFS Financial Corp.		561
			5,207
	Total Financials		94,354
	Health Care — 13.9%
	Biotechnology — 3.8%
35	Acorda Therapeutics, Inc. (a)		873
82	Anadys Pharmaceuticals, Inc. (a)		174
222	Ariad Pharmaceuticals, Inc. (a)		506
291	AVI BioPharma, Inc. (a) (c)		425
323	Bionovo, Inc. (a)		154
28	Chelsea Therapeutics International, Inc. (a)		75
162	Cytokinetics, Inc. (a)		471
51	Exelixis, Inc. (a)		379
84	Halozyme Therapeutics, Inc. (a)		491
20	Human Genome Sciences, Inc. (a)		618
43	Idenix Pharmaceuticals, Inc. (a)		92
7	Idera Pharmaceuticals, Inc. (a) (c)		37
87	Immunomedics, Inc. (a)		280
96	Incyte Corp. Ltd. (a)		873
52	InterMune, Inc. (a)		675
68	Isis Pharmaceuticals, Inc. (a)		757
244	Lexicon Pharmaceuticals, Inc. (a)		415
28	Medivation, Inc. (a) (c)		1,043
65	Molecular Insight Pharmaceuticals, Inc. (a) (c)		146
62	Momenta Pharmaceuticals, Inc. (a)		783
85	Novavax, Inc. (a)		227
51	Onyx Pharmaceuticals, Inc. (a)		1,493
14	OSI Pharmaceuticals, Inc. (a)		447
40	Pharmasset, Inc. (a)		830
27	Progenics Pharmaceuticals, Inc. (a)		118
153	Protalix BioTherapeutics, Inc., (Israel) (a) (c)		1,015
42	Regeneron Pharmaceuticals, Inc. (a)		1,003
126	Rigel Pharmaceuticals, Inc. (a)		1,201
65	Seattle Genetics, Inc. (a)		660
41	Theravance, Inc. (a)		533
12	United Therapeutics Corp. (a)		653
			17,447
	Health Care Equipment & Supplies — 3.0%
120	American Medical Systems Holdings, Inc. (a)		2,309
60	Cantel Medical Corp. (a)		1,205
50	Electro-Optical Sciences, Inc. (a) (c)		522
65	Insulet Corp. (a)		934
2	Integra LifeSciences Holdings Corp. (a)		66
97	Invacare Corp.		2,417
73	Micrus Endovascular Corp. (a)		1,097
35	Orthofix International NV (a)		1,090
32	Sirona Dental Systems, Inc. (a)		1,025
84	STERIS Corp.		2,355
28	Thoratec Corp. (a)		746
			13,766
	Health Care Providers & Services — 4.6%
37	Allied Healthcare International, Inc. (a)		107
26	Amedisys, Inc. (a) (c)		1,282
68	AMN Healthcare Services, Inc. (a)		615
60	Centene Corp. (a)		1,279
20	Emergency Medical Services Corp., Class A (a)		1,094
31	Genoptix, Inc. (a)		1,091
71	Gentiva Health Services, Inc. (a)		1,920
71	Hanger Orthopedic Group, Inc. (a)		983
72	Healthsouth Corp. (a)		1,353
120	Healthspring, Inc. (a)		2,104
16	inVentiv Health, Inc. (a)		254
199	Nighthawk Radiology Holdings, Inc. (a)		902
48	Owens & Minor, Inc.		2,074
37	Providence Service Corp. (The) (a)		585
73	PSS World Medical, Inc. (a)		1,652
29	Psychiatric Solutions, Inc. (a)		607
26	RehabCare Group, Inc. (a)		791

SEE NOTES TO FINANCIAL STATEMENTS.

20   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Health Care Providers & Services — Continued
36	Res-Care, Inc. (a)		402
32	Team Health Holdings, Inc. (a)		444
31	Triple-S Management Corp., (Puerto Rico), Class B (a)		540
14	US Physical Therapy, Inc. (a)		244
16	WellCare Health Plans, Inc. (a)		577
			20,900
	Health Care Technology — 0.6%
13	Computer Programs & Systems, Inc.		603
39	MedAssets, Inc. (a)		817
40	Medidata Solutions, Inc. (a)		616
51	Vital Images, Inc. (a)		651
			2,687
	Life Sciences Tools & Services — 0.5%
53	Enzo Biochem, Inc. (a)		286
47	eResearchTechnology, Inc. (a)		285
98	Kendle International, Inc. (a)		1,785
			2,356
	Pharmaceuticals — 1.4%
35	Ardea Biosciences, Inc. (a)		483
8	Auxilium Pharmaceuticals, Inc. (a)		234
69	Biodel, Inc. (a)		300
27	Cardiome Pharma Corp., (Canada) (a)		118
39	Cumberland Pharmaceuticals, Inc. (a)		533
98	Inspire Pharmaceuticals, Inc. (a)		542
48	MAP Pharmaceuticals, Inc. (a)		456
12	Optimer Pharmaceuticals, Inc. (a) (c)		137
22	Par Pharmaceutical Cos., Inc. (a)		601
12	Salix Pharmaceuticals Ltd. (a)		307
56	Sucampo Pharmaceuticals, Inc., Class A (a)		227
22	Valeant Pharmaceuticals International (a)		687
89	Vivus, Inc. (a) (c)		822
37	XenoPort, Inc. (a)		694
			6,141
	Total Health Care		63,297
	Industrials — 17.2%
	Aerospace & Defense — 1.9%
20	Ceradyne, Inc. (a)		382
11	Curtiss-Wright Corp.		357
119	DynCorp International, Inc., Class A (a)		1,706
50	Esterline Technologies Corp. (a)		2,047
393	GenCorp, Inc. (a)		2,753
26	Global Defense Technology & Systems, Inc. (a)		431
11	HEICO Corp.		505
11	Triumph Group, Inc.		507
			8,688
	Air Freight & Logistics — 0.5%
21	Atlas Air Worldwide Holdings, Inc. (a)		778
49	Hub Group, Inc., Class A (a)		1,304
			2,082
	Airlines — 1.2%
445	Hawaiian Holdings, Inc. (a)		3,111
147	Republic Airways Holdings, Inc. (a)		1,085
78	SkyWest, Inc.		1,325
			5,521
	Building Products — 0.8%
114	Gibraltar Industries, Inc. (a)		1,790
48	Insteel Industries, Inc.		624
23	NCI Building Systems, Inc. (a)		41
50	Quanex Building Products Corp.		857
7	Trex Co., Inc. (a)		135
			3,447
	Commercial Services & Supplies — 3.0%
61	ACCO Brands Corp. (a)		447
55	ATC Technology Corp. (a)		1,307
261	Cenveo, Inc. (a)		2,280
21	Consolidated Graphics, Inc. (a)		743
206	Deluxe Corp.		3,048
27	Ennis, Inc.		460
59	GEO Group, Inc. (The) (a)		1,284
65	Herman Miller, Inc.		1,044
7	HNI Corp.		205
107	Knoll, Inc.		1,108
40	Metalico, Inc. (a) (c)		196
48	Standard Register Co. (The)		246
18	United Stationers, Inc. (a)		1,040
1	Waste Connections, Inc. (a)		27
			13,435
	Construction & Engineering — 1.6%
139	Comfort Systems USA, Inc.		1,719
100	EMCOR Group, Inc. (a)		2,701
69	MasTec, Inc. (a)		865
5	Michael Baker Corp. (a)		195
17	Pike Electric Corp. (a)		161
97	Tutor Perini Corp. (a)		1,757
			7,398

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   21

JPMorgan Small Cap Core Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Electrical Equipment — 2.8%
20	A.O. Smith Corp.		851
10	A123 Systems, Inc. (a) (c)		233
56	Acuity Brands, Inc.		2,010
12	American Superconductor Corp. (a) (c)		507
15	Energy Conversion Devices, Inc. (a) (c)		157
65	EnerSys (a)		1,428
212	GrafTech International Ltd. (a)		3,295
13	GT Solar International, Inc. (a) (c)		70
20	Polypore International, Inc. (a)		233
80	Regal-Beloit Corp.		4,150
			12,934
	Machinery — 2.7%
53	Barnes Group, Inc.		887
14	Chart Industries, Inc. (a)		238
57	CIRCOR International, Inc.		1,438
65	Columbus McKinnon Corp. (a)		887
57	Duoyuan Printing, Inc., (China) (a)		460
107	EnPro Industries, Inc. (a) (c)		2,826
159	Force Protection, Inc. (a)		826
8	LB Foster Co., Class A (a)		238
12	Middleby Corp. (a) (c)		608
9	SmartHeat, Inc., (China) (a) (c)		136
89	Wabtec Corp.		3,623
10	Watts Water Technologies, Inc., Class A		306
			12,473
	Marine — 0.3%
240	Horizon Lines, Inc., Class A		1,335
	Professional Services — 0.8%
17	COMSYS IT Partners, Inc. (a)		154
17	GP Strategies Corp. (a)		130
104	Kforce, Inc. (a)		1,305
55	Korn/Ferry International (a)		911
22	Spherion Corp. (a)		125
58	TrueBlue, Inc. (a)		856
			3,481
	Road & Rail — 0.7%
52	Arkansas Best Corp.		1,536
67	Avis Budget Group, Inc. (a)		874
13	Dollar Thrifty Automotive Group, Inc. (a)		341
9	Marten Transport Ltd. (a)		152
23	RailAmerica, Inc. (a)		283
			3,186
	Trading Companies & Distributors — 0.9%
140	Applied Industrial Technologies, Inc.		3,091
30	Beacon Roofing Supply, Inc. (a)		475
37	Interline Brands, Inc. (a)		632
			4,198
	Total Industrials		78,178
	Information Technology — 14.2%
	Communications Equipment — 2.1%
193	Arris Group, Inc. (a)		2,208
57	Black Box Corp.		1,618
25	Blue Coat Systems, Inc. (a)		699
33	Comtech Telecommunications Corp. (a)		1,143
37	Harris Stratex Networks, Inc. (a)		254
27	NETGEAR, Inc. (a)		594
41	Plantronics, Inc.		1,060
36	Polycom, Inc. (a)		896
78	Symmetricom, Inc. (a)		406
42	Tekelec (a)		648
			9,526
	Computers & Peripherals — 0.4%
27	Adaptec, Inc. (a)		92
30	Imation Corp. (a)		262
34	Quantum Corp. (a)		98
17	STEC, Inc. (a) (c)		283
28	Synaptics, Inc. (a) (c)		857
			1,592
	Electronic Equipment, Instruments & Components — 1.7%
52	Benchmark Electronics, Inc. (a)		976
81	Brightpoint, Inc. (a)		598
23	Checkpoint Systems, Inc. (a)		349
36	Insight Enterprises, Inc. (a)		415
26	Mercury Computer Systems, Inc. (a)		285
11	Multi-Fineline Electronix, Inc. (a)		323
39	Plexus Corp. (a)		1,097
77	RadiSys Corp. (a)		732
64	SYNNEX Corp. (a)		1,950
36	Technitrol, Inc.		159
73	TTM Technologies, Inc. (a)		846
			7,730
	Internet Software & Services — 0.7%
22	Ancestry.com, Inc. (a)		301
22	Art Technology Group, Inc. (a)		101
64	EarthLink, Inc.		529
36	Perficient, Inc. (a)		306

SEE NOTES TO FINANCIAL STATEMENTS.

22   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Internet Software & Services — Continued
181	United Online, Inc.		1,299
83	Web.com Group, Inc. (a)		539
			3,075
	IT Services — 2.1%
33	CACI International, Inc., Class A (a)		1,607
152	CIBER, Inc. (a)		524
31	CSG Systems International, Inc. (a)		598
28	Cybersource Corp. (a)		555
19	Dynamics Research Corp. (a)		198
26	Echo Global Logistics, Inc. (a) (c)		328
33	Gartner, Inc. (a)		590
20	Hackett Group, Inc. (The) (a)		55
13	iGate Corp.		129
52	Lionbridge Technologies, Inc. (a)		120
19	ManTech International Corp., Class A (a)		932
11	NCI, Inc., Class A (a)		299
22	TeleTech Holdings, Inc. (a)		445
32	Unisys Corp. (a)		1,217
47	VeriFone Holdings, Inc. (a)		770
36	Wright Express Corp. (a)		1,153
			9,520
	Semiconductors & Semiconductor Equipment — 3.5%
223	Amkor Technology, Inc. (a)		1,595
19	Applied Micro Circuits Corp. (a)		142
153	Cirrus Logic, Inc. (a)		1,042
5	DSP Group, Inc. (a)		29
13	Entegris, Inc. (a)		69
12	FEI Co. (a)		283
91	Kulicke & Soffa Industries, Inc. (a)		491
26	Lattice Semiconductor Corp. (a)		71
70	Micrel, Inc.		573
68	MIPS Technologies, Inc. (a)		296
24	MKS Instruments, Inc. (a)		421
43	Photronics, Inc. (a)		193
251	PMC-Sierra, Inc. (a)		2,177
542	RF Micro Devices, Inc. (a)		2,586
17	Sigma Designs, Inc. (a)		182
353	Skyworks Solutions, Inc. (a)		5,006
28	Tessera Technologies, Inc. (a)		645
56	TriQuint Semiconductor, Inc. (a)		335
			16,136
	Software — 3.7%
6	Actuate Corp. (a)		24
20	Ariba, Inc. (a)		245
227	Aspen Technology, Inc. (a)		2,221
28	Epicor Software Corp. (a)		211
17	Fortinet, Inc. (a)		306
20	i2 Technologies, Inc. (a)		379
162	JDA Software Group, Inc. (a)		4,118
8	Net 1 UEPS Technologies, Inc., (South Africa) (a)		146
31	Netscout Systems, Inc. (a)		449
92	Parametric Technology Corp. (a)		1,506
34	Progress Software Corp. (a)		981
47	Quest Software, Inc. (a)		870
14	Rovi Corp. (a)		449
38	Smith Micro Software, Inc. (a)		346
84	Sybase, Inc. (a)		3,663
180	THQ, Inc. (a)		909
			16,823
	Total Information Technology		64,402
	Materials — 4.1%
	Chemicals — 2.1%
49	H.B. Fuller Co.		1,122
53	Innophos Holdings, Inc.		1,223
59	Koppers Holdings, Inc.		1,808
247	Omnova Solutions, Inc. (a)		1,513
155	PolyOne Corp. (a)		1,156
27	Solutia, Inc. (a)		343
112	Spartech Corp.		1,148
58	STR Holdings, Inc. (a)		908
22	W.R. Grace & Co. (a)		555
			9,776
	Construction Materials — 0.0% (g)
23	Headwaters, Inc. (a)		151
	Containers & Packaging — 1.6%
41	Boise, Inc. (a)		216
68	Myers Industries, Inc.		618
93	Rock-Tenn Co., Class A		4,683
28	Silgan Holdings, Inc.		1,603
			7,120

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   23

JPMorgan Small Cap Core Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands, except number of contracts)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Metals & Mining — 0.2%
2	Compass Minerals International, Inc.		161
36	Globe Specialty Metals, Inc. (a)		341
58	Hecla Mining Co. (a)		361
			863
	Paper & Forest Products — 0.2%
79	Buckeye Technologies, Inc. (a)		775
2	Clearwater Paper Corp. (a)		132
			907
	Total Materials		18,817
	Telecommunication Services — 1.6%
	Diversified Telecommunication Services — 1.3%
13	Atlantic Tele-Network, Inc.		693
451	Cincinnati Bell, Inc. (a)		1,554
102	Consolidated Communications Holdings, Inc.		1,790
219	Premiere Global Services, Inc. (a)		1,803
			5,840
	Wireless Telecommunication Services — 0.3%
86	Syniverse Holdings, Inc. (a)		1,498
	Total Telecommunication Services		7,338
	Utilities — 3.0%
	Electric Utilities — 2.0%
16	Central Vermont Public Service Corp.		339
102	El Paso Electric Co. (a)		2,076
29	Idacorp, Inc.		914
15	MGE Energy, Inc.		550
82	Portland General Electric Co.		1,678
25	UniSource Energy Corp.		808
122	Westar Energy, Inc.		2,650
			9,015
	Gas Utilities — 0.9%
9	Chesapeake Utilities Corp.		276
50	New Jersey Resources Corp.		1,883
16	Northwest Natural Gas Co.		707
8	Southwest Gas Corp.		214
25	WGL Holdings, Inc.		822
			3,902
	Multi-Utilities — 0.1%
22	Avista Corp.		471
	Water Utilities — 0.0% (g)
16	Consolidated Water Co., Inc., (Cayman Islands)		224
	Total Utilities		13,612
	Total Common Stocks (Cost $420,876)		438,987

 

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
U.S. Treasury Obligation — 0.2%
1,000	U.S. Treasury Note, 1.250%, 11/30/10 (k) (Cost $1,008)		1,007

 

SHARES	SECURITY DESCRIPTION	VALUE($)
Short-Term Investment — 3.2%
	Investment Company — 3.2%
14,736	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100%, (b) (l) (m) (Cost $14,736)		14,736
Investment of Cash Collateral for Securities on Loan — 3.6%
	Investment Company — 3.6%
16,513	JPMorgan Prime Money Market Fund, Capital Shares, 0.130%, (b) (l) (Cost $16,513)		16,513
	Total Investments — 103.5% (Cost $453,133)		471,243
	Liabilities in Excess of Other Assets — (3.5)%		(16,130	)
	NET ASSETS — 100.0%	$	455,113

 

Percentages indicated are based on net assets.

Futures Contracts

NUMBER OF CONTRACTS	DESCRIPTION	EXPIRATION DATE	NOTIONAL AMOUNT AT 12/31/09		UNREALIZED APPRECIATION (DEPRECIATION)
	Long Futures Outstanding
238	E-mini Russell 2000	03/19/10	$	14,849	$	572

 

SEE NOTES TO FINANCIAL STATEMENTS.

24   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

JPMorgan Small Cap Equity Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 95.6%
	Consumer Discretionary — 14.7%
	Diversified Consumer Services — 1.6%
820	Brink’s Home Security Holdings, Inc. (a)		26,765
	Hotels, Restaurants & Leisure — 4.5%
170	Chipotle Mexican Grill, Inc. (a) (c)		14,961
731	Monarch Casino & Resort, Inc. (a)		5,923
1,188	Papa John’s International, Inc. (a)		27,754
447	Penn National Gaming, Inc. (a)		12,146
1,571	Shuffle Master, Inc. (a)		12,944
			73,728
	Household Durables — 2.6%
1,418	Jarden Corp.		43,828
	Internet & Catalog Retail — 1.4%
383	NutriSystem, Inc. (c)		11,938
607	PetMed Express, Inc. (c)		10,694
			22,632
	Leisure Equipment & Products — 0.9%
784	Pool Corp.		14,961
	Media — 2.7%
1,535	Cinemark Holdings, Inc.		22,061
616	Interactive Data Corp.		15,573
129	Morningstar, Inc. (a)		6,253
			43,887
	Textiles, Apparel & Luxury Goods — 1.0%
233	Columbia Sportswear Co.		9,112
653	Iconix Brand Group, Inc. (a)		8,264
			17,376
	Total Consumer Discretionary		243,177
	Consumer Staples — 5.4%
	Beverages — 1.6%
697	Hansen Natural Corp. (a)		26,750
	Food & Staples Retailing — 1.0%
1,584	Winn-Dixie Stores, Inc. (a)		15,905
	Food Products — 2.8%
1,373	B&G Foods, Inc., Class A		12,608
1,236	Dole Food Co., Inc. (a) (c)		15,342
321	J & J Snack Foods Corp.		12,826
1,206	Reddy Ice Holdings, Inc. (a)		5,172
			45,948
	Total Consumer Staples		88,603
	Energy — 5.0%
	Energy Equipment & Services — 2.4%
876	Exterran Holdings, Inc. (a)		18,792
581	Patterson-UTI Energy, Inc.		8,925
234	Tidewater, Inc.		11,196
			38,913
	Oil, Gas & Consumable Fuels — 2.6%
782	Approach Resources, Inc. (a)		6,039
282	Concho Resources, Inc. (a)		12,680
687	Resolute Energy Corp. (a)		7,919
480	St. Mary Land & Exploration Co.		16,444
			43,082
	Total Energy		81,995
	Financials — 17.4%
	Capital Markets — 5.0%
967	Calamos Asset Management, Inc., Class A		11,152
292	Evercore Partners, Inc., Class A		8,880
3,257	GLG Partners, Inc. (a) (c)		10,487
1,642	HFF, Inc., Class A (a)		10,261
374	JMP Group, Inc.		3,632
505	KBW, Inc. (a)		13,809
1,518	optionsXpress Holdings, Inc.		23,456
			81,677
	Commercial Banks — 2.2%
1,225	First Financial Bancorp		17,840
220	Iberiabank Corp.		11,831
1,861	Western Alliance Bancorp (a)		7,034
			36,705
	Insurance — 5.3%
380	American Physicians Capital, Inc.		11,534
1,022	eHealth, Inc. (a)		16,786
849	ProAssurance Corp. (a)		45,583
270	RLI Corp.		14,380
			88,283
	Real Estate Investment Trusts (REITs) — 3.5%
212	EastGroup Properties, Inc.		8,099
654	Franklin Street Properties Corp.		9,559
506	Mid-America Apartment Communities, Inc.		24,414
724	National Retail Properties, Inc.		15,371
			57,443

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   25

JPMorgan Small Cap Equity Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Thrifts & Mortgage Finance — 1.4%
1,244	First Niagara Financial Group, Inc.		17,302
791	Westfield Financial, Inc.		6,528
			23,830
	Total Financials		287,938
	Health Care — 12.5%
	Biotechnology — 1.4%
858	Myriad Genetics, Inc. (a)		22,382
218	Myriad Pharmaceuticals, Inc. (a) (c)		1,095
			23,477
	Health Care Equipment & Supplies — 1.8%
414	IDEXX Laboratories, Inc. (a) (c)		22,108
490	Natus Medical, Inc. (a)		7,244
			29,352
	Health Care Providers & Services — 8.0%
230	AMN Healthcare Services, Inc. (a)		2,088
504	Catalyst Health Solutions, Inc. (a)		18,393
950	Coventry Health Care, Inc. (a)		23,070
482	MWI Veterinary Supply, Inc. (a)		18,159
1,436	PharMerica Corp. (a)		22,799
1,524	PSS World Medical, Inc. (a)		34,401
665	Psychiatric Solutions, Inc. (a)		14,068
			132,978
	Health Care Technology — 0.6%
882	Omnicell, Inc. (a)		10,311
	Pharmaceuticals — 0.7%
815	Cumberland Pharmaceuticals, Inc. (a)		11,070
	Total Health Care		207,188
	Industrials — 12.8%
	Aerospace & Defense — 2.6%
103	Alliant Techsystems, Inc. (a)		9,064
712	TransDigm Group, Inc.		33,814
			42,878
	Air Freight & Logistics — 0.8%
492	Forward Air Corp.		12,335
	Building Products — 0.2%
1,718	NCI Building Systems, Inc. (a)		3,109
	Commercial Services & Supplies — 4.1%
1,518	Herman Miller, Inc.		24,251
982	KAR Auction Services, Inc. (a)		13,547
908	Waste Connections, Inc. (a)		30,270
			68,068
	Construction & Engineering — 0.9%
1,257	Comfort Systems USA, Inc.		15,512
	Machinery — 2.1%
330	Kaydon Corp.		11,795
524	RBC Bearings, Inc. (a)		12,743
496	Terex Corp. (a)		9,826
			34,364
	Professional Services — 1.2%
477	CoStar Group, Inc. (a)		19,922
	Road & Rail — 0.9%
174	Knight Transportation, Inc.		3,349
296	Landstar System, Inc.		11,480
			14,829
	Total Industrials		211,017
	Information Technology — 13.9%
	Electronic Equipment, Instruments & Components — 1.1%
389	Anixter International, Inc. (a)		18,303
	Internet Software & Services — 3.4%
251	Archipelago Learning, Inc. (a)		5,192
2,855	Dice Holdings, Inc. (a)		18,699
1,692	Liquidity Services, Inc. (a)		17,035
1,289	Travelzoo, Inc. (a) (c)		15,842
			56,768
	Semiconductors & Semiconductor Equipment — 0.5%
352	Standard Microsystems Corp. (a)		7,309
	Software — 8.9%
1,610	Aspen Technology, Inc. (a)		15,776
470	Blackboard, Inc. (a)		21,328
1,713	Deltek, Inc. (a)		13,327
566	DemandTec, Inc. (a)		4,964
573	MICROS Systems, Inc. (a)		17,783
981	Monotype Imaging Holdings, Inc. (a)		8,863
903	NetSuite, Inc. (a) (c)		14,424
463	Nuance Communications, Inc. (a)		7,190
183	SolarWinds, Inc. (a)		4,208
635	Solera Holdings, Inc.		22,862
989	SuccessFactors, Inc. (a)		16,404
			147,129
	Total Information Technology		229,509

SEE NOTES TO FINANCIAL STATEMENTS.

26   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Materials — 7.9%
	Chemicals — 1.5%
198	Airgas, Inc.		9,403
389	Scotts Miracle-Gro Co. (The), Class A		15,306
			24,709
	Containers & Packaging — 4.9%
522	Aptargroup, Inc.		18,656
769	Crown Holdings, Inc. (a)		19,659
731	Silgan Holdings, Inc.		42,335
			80,650
	Metals & Mining — 1.5%
447	Commercial Metals Co.		6,998
261	Compass Minerals International, Inc.		17,543
			24,541
	Total Materials		129,900
	Telecommunication Services — 3.1%
	Diversified Telecommunication Services — 3.1%
1,106	Cbeyond, Inc. (a)		17,426
328	Neutral Tandem, Inc. (a)		7,452
1,514	NTELOS Holdings Corp.		26,986
	Total Telecommunication Services		51,864
	Utilities — 2.9%
	Gas Utilities — 1.6%
250	Atmos Energy Corp.		7,350
432	Northwest Natural Gas Co.		19,471
			26,821
	Multi-Utilities — 1.3%
803	NorthWestern Corp.		20,906
	Total Utilities		47,727
	Total Common Stocks (Cost $1,417,200)		1,578,918
Short-Term Investment — 3.8%
	Investment Company — 3.8%
63,228	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (Cost $63,228)		63,228
Investments of Cash Collateral for Securities on Loan — 4.3%
	Investment Company — 4.3%
71,246	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l) (Cost $71,246)		71,246
	Total Investments — 103.7% (Cost $1,551,674)		1,713,392
	Liabilities in Excess of Other Assets — (3.7)%		(61,172	)
	NET ASSETS — 100.0%	$	1,652,220

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   27

JPMorgan Small Cap Growth Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 97.8%
	Consumer Discretionary — 19.2%
	Diversified Consumer Services — 1.8%
85	American Public Education, Inc. (a)		2,934
228	Lincoln Educational Services Corp. (a)		4,950
			7,884
	Hotels, Restaurants & Leisure — 3.4%
146	Cheesecake Factory, Inc. (The) (a) (c)		3,161
98	DineEquity, Inc. (a) (c)		2,390
112	Life Time Fitness, Inc. (a)		2,797
104	PF Chang’s China Bistro, Inc. (a) (c)		3,931
55	Vail Resorts, Inc. (a)		2,087
			14,366
	Household Durables — 0.6%
114	Tempur-Pedic International, Inc. (a)		2,696
	Media — 1.3%
54	Morningstar, Inc. (a)		2,596
170	National CineMedia, Inc.		2,815
			5,411
	Specialty Retail — 8.7%
158	AnnTaylor Stores Corp. (a)		2,157
89	Children’s Place Retail Stores, Inc. (The) (a)		2,925
322	DSW, Inc., Class A (a) (c)		8,339
124	J Crew Group, Inc. (a) (c)		5,539
158	Kirkland’s, Inc. (a)		2,746
63	Lumber Liquidators, Inc. (a)		1,688
110	Men’s Wearhouse, Inc. (The)		2,312
326	OfficeMax, Inc. (a)		4,133
479	Talbots, Inc. (a) (c)		4,270
154	Ulta Salon Cosmetics & Fragrance, Inc. (a)		2,789
			36,898
	Textiles, Apparel & Luxury Goods — 3.4%
240	G-III Apparel Group Ltd. (a)		5,194
241	Iconix Brand Group, Inc. (a)		3,054
107	Lululemon Athletica, Inc., (Canada) (a)		3,233
102	Under Armour, Inc., Class A (a) (c)		2,787
			14,268
	Total Consumer Discretionary		81,523
	Energy — 4.3%
	Energy Equipment & Services — 0.5%
38	Oceaneering International, Inc. (a)		2,247
	Oil, Gas & Consumable Fuels — 3.8%
106	Comstock Resources, Inc. (a)		4,309
82	Concho Resources, Inc. (a)		3,673
202	Forest Oil Corp. (a)		4,501
144	Swift Energy Co. (a)		3,455
			15,938
	Total Energy		18,185
	Financials — 4.9%
	Capital Markets — 2.1%
40	Affiliated Managers Group, Inc. (a)		2,681
495	Broadpoint Gleacher Securities, Inc. (a)		2,207
161	Calamos Asset Management, Inc., Class A		1,861
251	PennantPark Investment Corp.		2,242
			8,991
	Diversified Financial Services — 1.0%
136	MSCI, Inc., Class A (a)		4,312
	Insurance — 1.4%
61	ProAssurance Corp. (a)		3,284
120	Tower Group, Inc.		2,799
			6,083
	Thrifts & Mortgage Finance — 0.4%
61	WSFS Financial Corp.		1,558
	Total Financials		20,944
	Health Care — 24.5%
	Biotechnology — 5.7%
41	Alexion Pharmaceuticals, Inc. (a)		2,016
617	Ariad Pharmaceuticals, Inc. (a)		1,407
161	BioMarin Pharmaceutical, Inc. (a) (c)		3,032
290	Exelixis, Inc. (a)		2,134
496	Halozyme Therapeutics, Inc. (a)		2,914
108	Human Genome Sciences, Inc. (a) (c)		3,299
261	Incyte Corp. Ltd. (a)		2,381
86	Medivation, Inc. (a) (c)		3,245
250	Myriad Pharmaceuticals, Inc. (a)		1,255
45	Onyx Pharmaceuticals, Inc. (a)		1,320
103	Theravance, Inc. (a) (c)		1,352
			24,355
	Health Care Equipment & Supplies — 3.4%
353	Insulet Corp. (a)		5,037
144	Masimo Corp. (a)		4,365
71	Meridian Bioscience, Inc.		1,524
136	Thoratec Corp. (a)		3,668
			14,594
	Health Care Providers & Services — 6.3%
345	Emeritus Corp. (a) (c)		6,471
157	Genoptix, Inc. (a)		5,577

SEE NOTES TO FINANCIAL STATEMENTS.

28   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Health Care Providers & Services — Continued
239	Health Net, Inc. (a)		5,576
265	Healthspring, Inc. (a)		4,668
213	Psychiatric Solutions, Inc. (a)		4,495
			26,787
	Health Care Technology — 4.0%
46	athenahealth, Inc. (a)		2,067
266	MedAssets, Inc. (a) (c)		5,639
482	Omnicell, Inc. (a)		5,640
281	Vital Images, Inc. (a)		3,562
			16,908
	Life Sciences Tools & Services — 3.0%
499	Bruker Corp. (a)		6,022
662	Enzo Biochem, Inc. (a)		3,562
143	Icon plc, (Ireland), ADR (a)		3,100
			12,684
	Pharmaceuticals — 2.1%
266	Cumberland Pharmaceuticals, Inc. (a)		3,614
304	Nektar Therapeutics (a)		2,836
323	Sucampo Pharmaceuticals, Inc., Class A (a)		1,307
150	ViroPharma, Inc. (a)		1,254
			9,011
	Total Health Care		104,339
	Industrials — 13.3%
	Aerospace & Defense — 2.0%
129	DigitalGlobe, Inc. (a)		3,112
125	HEICO Corp.		5,552
			8,664
	Building Products — 2.4%
120	Lennox International, Inc.		4,696
76	Simpson Manufacturing Co., Inc.		2,052
175	Trex Co., Inc. (a)		3,437
			10,185
	Commercial Services & Supplies — 1.8%
196	GEO Group, Inc. (The) (a)		4,290
96	Waste Connections, Inc. (a)		3,214
			7,504
	Construction & Engineering — 0.4%
81	Orion Marine Group, Inc. (a)		1,706
	Electrical Equipment — 1.4%
120	Baldor Electric Co.		3,371
127	EnerSys (a)		2,772
			6,143
	Industrial Conglomerates — 0.9%
114	Carlisle Cos., Inc.		3,902
	Machinery — 2.2%
140	Graco, Inc.		3,994
127	Wabtec Corp.		5,191
			9,185
	Road & Rail — 2.2%
115	Landstar System, Inc.		4,445
108	Marten Transport Ltd. (a)		1,931
100	Old Dominion Freight Line, Inc. (a)		3,069
			9,445
	Total Industrials		56,734
	Information Technology — 27.2%
	Communications Equipment — 3.2%
62	F5 Networks, Inc. (a)		3,285
187	Riverbed Technology, Inc. (a)		4,291
192	ViaSat, Inc. (a)		6,099
			13,675
	Computers & Peripherals — 1.2%
224	Compellent Technologies, Inc. (a)		5,071
	Internet Software & Services — 4.5%
190	Archipelago Learning, Inc. (a)		3,933
1,145	Art Technology Group, Inc. (a)		5,164
153	DealerTrack Holdings, Inc. (a)		2,879
107	Digital River, Inc. (a)		2,900
212	Switch & Data Facilities Co., Inc. (a)		4,294
			19,170
	IT Services — 1.6%
103	NCI, Inc., Class A (a)		2,851
104	Syntel, Inc. (c)		3,940
			6,791
	Semiconductors & Semiconductor Equipment — 5.5%
200	Cavium Networks, Inc. (a)		4,757
98	Hittite Microwave Corp. (a)		3,991
202	Microsemi Corp. (a)		3,584
156	Monolithic Power Systems, Inc. (a)		3,727
114	Varian Semiconductor Equipment Associates, Inc. (a)		4,076
235	Verigy Ltd., (Singapore) (a)		3,018
			23,153
	Software — 11.2%
82	ANSYS, Inc. (a)		3,569
136	Blackboard, Inc. (a)		6,150

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   29

JPMorgan Small Cap Growth Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Software — Continued
72	Concur Technologies, Inc. (a)		3,057
93	Fortinet, Inc. (a)		1,625
351	NetSuite, Inc. (a) (c)		5,615
549	Nuance Communications, Inc. (a) (c)		8,538
193	SolarWinds, Inc. (a)		4,448
177	Sourcefire, Inc. (a)		4,732
316	Take-Two Interactive Software, Inc. (a) (c)		3,171
290	Taleo Corp., Class A (a)		6,824
			47,729
	Total Information Technology		115,589
	Materials — 2.8%
	Chemicals — 1.4%
292	Innospec, Inc., (United Kingdom)		2,947
200	STR Holdings, Inc. (a)		3,137
			6,084
	Construction Materials — 0.6%
99	Eagle Materials, Inc.		2,569
	Metals & Mining — 0.8%
209	Commercial Metals Co.		3,269
	Total Materials		11,922
	Telecommunication Services — 1.6%
	Diversified Telecommunication Services — 1.6%
172	Cbeyond, Inc. (a) (c)		2,703
172	Neutral Tandem, Inc. (a)		3,905
	Total Telecommunication Services		6,608
	Total Common Stocks (Cost $345,007)		415,844
Short-Term Investment — 3.2%
	Investment Company — 3.2%
13,698	JPMorgan Liquid Assets Money Market Fund, Institutional Class Shares, 0.170% (b) (l) (m) (Cost $13,698)		13,698

 

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
Investments of Cash Collateral for Securities on Loan — 11.5%
	Corporate Notes — 1.7%
6,000	Monumental Global Funding III, VAR, 0.312%, 05/24/10 (e)		5,945
1,000	Monumental Global Funding III, VAR, 0.395%, 03/26/10 (e)		994
			6,939

 

SHARES
	Investment Company — 9.8%
41,775	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l)		41,775
	Total Investments of Cash Collateral for Securities on Loan (Cost $48,775)		48,714
	Total Investments — 112.5% (Cost $407,480)		478,256
	Liabilities in Excess of Other Assets — (12.5)%		(53,118	)
	NET ASSETS — 100.0%	$	425,138

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

30   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

JPMorgan Small Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 97.5%
	Consumer Discretionary — 13.5%
	Auto Components — 1.1%
164	ArvinMeritor, Inc. (a)		1,833
16	Autoliv, Inc., (Sweden)		681
66	Modine Manufacturing Co. (a)		779
27	Stoneridge, Inc. (a)		243
86	Superior Industries International, Inc.		1,316
			4,852
	Distributors — 0.0% (g)
22	Audiovox Corp., Class A (a)		153
	Diversified Consumer Services — 0.5%
59	Jackson Hewitt Tax Service, Inc. (a)		261
68	Regis Corp.		1,064
192	Stewart Enterprises, Inc., Class A		987
			2,312
	Hotels, Restaurants & Leisure — 0.8%
29	Isle of Capri Casinos, Inc. (a)		219
131	O’Charley’s, Inc. (a)		859
18	PF Chang’s China Bistro, Inc. (a) (c)		667
93	Ruby Tuesday, Inc. (a)		672
101	Ruth’s Hospitality Group, Inc. (a)		210
49	Wyndham Worldwide Corp.		996
			3,623
	Household Durables — 3.8%
201	American Greetings Corp., Class A (c)		4,371
52	Blyth, Inc.		1,757
82	Furniture Brands International, Inc. (a)		448
94	Helen of Troy Ltd., (Bermuda) (a)		2,287
34	Jarden Corp.		1,060
128	La-Z-Boy, Inc. (a)		1,215
162	Leggett & Platt, Inc.		3,309
30	Tempur-Pedic International, Inc. (a)		702
32	Tupperware Brands Corp.		1,467
			16,616
	Leisure Equipment & Products — 0.4%
30	Brunswick Corp.		385
23	Hasbro, Inc.		731
56	JAKKS Pacific, Inc. (a)		683
			1,799
	Media — 1.4%
165	Belo Corp., Class A		895
8	Carmike Cinemas, Inc. (a)		59
124	Cumulus Media, Inc., Class A (a)		282
62	Entercom Communications Corp., Class A (a)		438
140	Journal Communications, Inc., Class A		545
70	RCN Corp. (a)		760
39	Scholastic Corp.		1,151
302	Sinclair Broadcast Group, Inc., Class A (a)		1,219
44	Valassis Communications, Inc. (a)		794
			6,143
	Multiline Retail — 0.6%
105	Dillard’s, Inc., Class A		1,930
54	Fred’s, Inc., Class A		548
			2,478
	Specialty Retail — 3.6%
124	AnnTaylor Stores Corp. (a)		1,689
101	Asbury Automotive Group, Inc. (a)		1,159
616	Borders Group, Inc. (a)		727
37	Build-A-Bear Workshop, Inc. (a)		181
74	Cache, Inc. (a)		340
33	Cato Corp. (The), Class A		662
197	Charming Shoppes, Inc. (a)		1,274
97	Finish Line, Inc. (The), Class A		1,219
145	Haverty Furniture Cos., Inc.		1,996
125	MarineMax, Inc. (a)		1,145
136	Midas, Inc. (a)		1,149
214	Pacific Sunwear of California, Inc. (a)		853
32	Rent-A-Center, Inc. (a)		572
12	Rue21, Inc. (a)		345
16	Signet Jewelers Ltd., (Bermuda) (a)		428
114	Sonic Automotive, Inc., Class A (a)		1,184
92	Talbots, Inc. (a) (c)		816
			15,739
	Textiles, Apparel & Luxury Goods — 1.3%
121	Jones Apparel Group, Inc.		1,937
201	Liz Claiborne, Inc. (a)		1,132
37	Maidenform Brands, Inc. (a)		621
49	Perry Ellis International, Inc. (a)		738
39	Timberland Co. (The), Class A (a)		692
18	Wolverine World Wide, Inc.		476
			5,596
	Total Consumer Discretionary		59,311
	Consumer Staples — 1.8%
	Food & Staples Retailing — 0.6%
5	Andersons, Inc. (The)		116
53	Nash Finch Co.		1,973

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   31

JPMorgan Small Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Food & Staples Retailing — Continued
26	Pantry, Inc. (The) (a)		351
			2,440
	Food Products — 0.4%
84	B&G Foods, Inc., Class A		773
92	Dole Food Co., Inc. (a) (c)		1,145
			1,918
	Household Products — 0.2%
91	Central Garden & Pet Co., Class A (a)		901
	Personal Products — 0.6%
9	Inter Parfums, Inc.		107
31	Nu Skin Enterprises, Inc., Class A		822
198	Prestige Brands Holdings, Inc. (a)		1,560
			2,489
	Total Consumer Staples		7,748
	Energy — 4.8%
	Energy Equipment & Services — 2.5%
115	Cal Dive International, Inc. (a)		872
22	Complete Production Services, Inc. (a)		282
55	Helix Energy Solutions Group, Inc. (a)		642
760	Hercules Offshore, Inc. (a) (c)		3,633
536	Key Energy Services, Inc. (a) (c)		4,707
92	Pioneer Drilling Co. (a)		727
32	TGC Industries, Inc. (a)		124
			10,987
	Oil, Gas & Consumable Fuels — 2.3%
7	Brigham Exploration Co. (a)		98
41	Cloud Peak Energy, Inc. (a)		594
16	Delta Petroleum Corp. (a) (c)		17
211	Endeavour International Corp. (a)		227
14	Frontline Ltd., (Bermuda) (c)		388
48	General Maritime Corp.		332
107	Gulfport Energy Corp. (a)		1,229
42	Mariner Energy, Inc. (a)		486
14	Overseas Shipholding Group, Inc.		629
1	PrimeEnergy Corp. (a)		29
96	Stone Energy Corp. (a)		1,731
49	Swift Energy Co. (a)		1,164
266	VAALCO Energy, Inc. (a)		1,210
160	W&T Offshore, Inc.		1,870
7	Westmoreland Coal Co. (a)		65
			10,069
	Total Energy		21,056
	Financials — 32.2%
	Capital Markets — 1.8%
23	Affiliated Managers Group, Inc. (a)		1,529
11	Artio Global Investors, Inc. (a)		280
39	Gladstone Capital Corp.		301
49	Investment Technology Group, Inc. (a)		973
39	Janus Capital Group, Inc.		523
100	MCG Capital Corp. (a)		432
27	NGP Capital Resources Co.		217
32	Oppenheimer Holdings, Inc., Class A		1,070
50	Piper Jaffray Cos. (a)		2,526
22	Pzena Investment Management, Inc., Class A (a)		179
			8,030
	Commercial Banks — 10.1%
47	1st Source Corp.		753
66	1st United Bancorp, Inc. (a)		471
2	Alliance Financial Corp.		65
38	BancFirst Corp.		1,411
39	Bancorp, Inc. (The) (a)		269
79	Bank of Hawaii Corp.		3,718
44	Banner Corp. (c)		117
15	Cardinal Financial Corp.		128
73	Cathay General Bancorp (c)		549
28	Centerstate Banks, Inc.		282
127	Central Pacific Financial Corp. (a) (c)		166
4	Century Bancorp, Inc., Class A		82
35	Chemical Financial Corp.		825
150	Citizens Republic Bancorp, Inc. (a)		104
84	City Holding Co.		2,712
66	Community Bank System, Inc. (c)		1,269
55	Community Trust Bancorp, Inc.		1,355
22	Cullen/Frost Bankers, Inc.		1,105
29	Financial Institutions, Inc.		344
84	First Bancorp (c)		194
67	First Busey Corp. (c)		259
4	First Citizens BancShares, Inc., Class A		672
21	First Community Bancshares, Inc.		255
117	First Financial Bancorp		1,706
10	First Financial Bankshares, Inc. (c)		548
11	First Merchants Corp.		65
10	First South Bancorp, Inc. (c)		107
193	FirstMerit Corp.		3,890
226	FNB Corp.		1,531
1	Fulton Financial Corp.		10
42	Guaranty Bancorp (a)		55

SEE NOTES TO FINANCIAL STATEMENTS.

32   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Commercial Banks — Continued
27	Heartland Financial USA, Inc. (c)		380
9	Hudson Valley Holding Corp.		224
51	Lakeland Bancorp, Inc.		327
13	Lakeland Financial Corp.		231
19	MB Financial, Inc.		369
65	Nara Bancorp, Inc. (a)		737
15	Northrim BanCorp, Inc.		258
15	Old National Bancorp		190
10	Old Second Bancorp, Inc. (c)		72
47	Pacific Capital Bancorp (c)		45
11	S&T Bancorp, Inc. (c)		179
48	Santander BanCorp (a)		591
9	SCBT Financial Corp.		242
8	Sierra Bancorp		63
47	Simmons First National Corp., Class A		1,301
747	South Financial Group, Inc. (The)		482
51	Southwest Bancorp, Inc.		352
8	Suffolk Bancorp		232
54	Sun Bancorp, Inc. (a)		202
115	Susquehanna Bancshares, Inc.		679
30	SVB Financial Group (a)		1,242
214	TCF Financial Corp. (c)		2,917
17	Tompkins Financial Corp. (c)		693
91	UMB Financial Corp.		3,573
49	Umpqua Holdings Corp.		661
9	Union Bankshares Corp.		107
78	United Community Banks, Inc. (a)		264
32	Washington Trust Bancorp, Inc.		495
9	West Bancorp., Inc.		44
27	Westamerica Bancorp (c)		1,484
98	Whitney Holding Corp.		888
			44,541
	Consumer Finance — 2.3%
42	Advance America Cash Advance Centers, Inc.		232
61	AmeriCredit Corp. (a)		1,169
175	CompuCredit Holdings Corp. (c)		583
11	Credit Acceptance Corp. (a)		474
116	Dollar Financial Corp. (a)		2,740
140	World Acceptance Corp. (a) (c)		5,016
			10,214
	Diversified Financial Services — 0.5%
11	Marlin Business Services Corp. (a)		91
129	PHH Corp. (a)		2,078
			2,169
	Insurance — 5.9%
96	Ambac Financial Group, Inc. (a) (c)		80
385	American Equity Investment Life Holding Co.		2,867
20	Arch Capital Group Ltd., (Bermuda) (a)		1,402
63	Assured Guaranty Ltd., (Bermuda)		1,371
38	Axis Capital Holdings Ltd., (Bermuda)		1,065
238	Conseco, Inc. (a)		1,189
78	Crawford & Co., Class B (a)		305
126	Delphi Financial Group, Inc., Class A		2,820
13	FBL Financial Group, Inc., Class A		243
21	First Mercury Financial Corp.		282
98	Harleysville Group, Inc.		3,103
191	Horace Mann Educators Corp.		2,389
59	Meadowbrook Insurance Group, Inc.		434
97	Platinum Underwriters Holdings Ltd., (Bermuda)		3,699
47	PMA Capital Corp., Class A (a)		295
34	ProAssurance Corp. (a)		1,799
56	Selective Insurance Group		913
37	StanCorp Financial Group, Inc.		1,493
			25,749
	Real Estate Investment Trusts (REITs) — 10.1%
286	Anworth Mortgage Asset Corp.		2,001
114	Apartment Investment & Management Co., Class A		1,807
136	Ashford Hospitality Trust, Inc. (a) (c)		632
21	Brandywine Realty Trust		244
101	CBL & Associates Properties, Inc.		974
23	Colonial Properties Trust		274
428	DCT Industrial Trust, Inc.		2,151
196	Developers Diversified Realty Corp.		1,812
179	DiamondRock Hospitality Co.		1,514
25	DuPont Fabros Technology, Inc.		446
15	EastGroup Properties, Inc.		567
342	Education Realty Trust, Inc.		1,654
73	First Industrial Realty Trust, Inc. (a)		379
51	Home Properties, Inc. (c)		2,443
90	Hospitality Properties Trust		2,143
46	LaSalle Hotel Properties		981
411	Lexington Realty Trust		2,502
78	LTC Properties, Inc.		2,087
425	MFA Financial, Inc.		3,123
107	Mission West Properties, Inc.		767
148	Pennsylvania Real Estate Investment Trust (c)		1,248
18	Pennymac Mortgage Investment Trust (a)		302
77	PS Business Parks, Inc. (c)		3,829

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   33

JPMorgan Small Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Real Estate Investment Trusts (REITs) — Continued
117	Ramco-Gershenson Properties Trust		1,111
25	Saul Centers, Inc.		809
80	Strategic Hotels & Resorts, Inc. (a)		148
250	Sunstone Hotel Investors, Inc. (a)		2,224
58	Taubman Centers, Inc.		2,086
36	Universal Health Realty Income Trust		1,153
430	U-Store-It Trust		3,148
			44,559
	Real Estate Management & Development — 0.3%
50	Forestar Group, Inc. (a)		1,101
	Thrifts & Mortgage Finance — 1.2%
106	Astoria Financial Corp.		1,315
12	First Financial Holdings, Inc. (c)		155
19	First Niagara Financial Group, Inc.		268
112	MGIC Investment Corp. (a) (c)		647
58	Northwest Bancshares, Inc.		655
27	OceanFirst Financial Corp.		302
79	Ocwen Financial Corp. (a)		753
100	PMI Group, Inc. (The) (a) (c)		252
78	Trustco Bank Corp.		490
13	Waterstone Financial, Inc. (a)		26
12	WSFS Financial Corp.		315
			5,178
	Total Financials		141,541
	Health Care — 5.4%
	Biotechnology — 0.9%
92	Ariad Pharmaceuticals, Inc. (a)		209
43	ArQule, Inc. (a)		157
334	Bionovo, Inc. (a)		159
21	Halozyme Therapeutics, Inc. (a)		123
49	Incyte Corp. Ltd. (a)		446
8	InterMune, Inc. (a)		104
132	Lexicon Pharmaceuticals, Inc. (a)		224
32	Nabi Biopharmaceuticals (a)		156
83	Novavax, Inc. (a) (c)		220
22	Onyx Pharmaceuticals, Inc. (a)		634
41	Protalix BioTherapeutics, Inc., (Israel) (a) (c)		274
89	Rigel Pharmaceuticals, Inc. (a)		842
24	Seattle Genetics, Inc. (a)		241
			3,789
	Health Care Equipment & Supplies — 1.1%
10	Cantel Medical Corp. (a)		206
56	Insulet Corp. (a)		801
67	Invacare Corp. (c)		1,663
24	Teleflex, Inc.		1,315
242	TomoTherapy, Inc. (a)		943
			4,928
	Health Care Providers & Services — 2.3%
28	Brookdale Senior Living, Inc. (a)		509
60	Cross Country Healthcare, Inc. (a)		594
11	Emergency Medical Services Corp., Class A (a)		596
39	Gentiva Health Services, Inc. (a)		1,048
88	Magellan Health Services, Inc. (a)		3,588
86	Omnicare, Inc.		2,070
29	PharMerica Corp. (a)		456
22	RehabCare Group, Inc. (a)		682
34	Team Health Holdings, Inc. (a)		477
			10,020
	Health Care Technology — 0.3%
20	MedAssets, Inc. (a)		433
10	Medidata Solutions, Inc. (a)		150
65	Vital Images, Inc. (a)		822
			1,405
	Life Sciences Tools & Services — 0.3%
103	Affymetrix, Inc. (a)		600
42	Harvard Bioscience, Inc. (a)		149
39	Kendle International, Inc. (a)		716
			1,465
	Pharmaceuticals — 0.5%
27	Cumberland Pharmaceuticals, Inc. (a)		372
23	Cypress Bioscience, Inc. (a)		133
33	Perrigo Co.		1,299
6	Valeant Pharmaceuticals International (a)		200
8	XenoPort, Inc. (a)		147
			2,151
	Total Health Care		23,758
	Industrials — 15.2%
	Aerospace & Defense — 0.8%
35	Cubic Corp.		1,298
158	Orbital Sciences Corp. (a)		2,407
			3,705
	Air Freight & Logistics — 0.3%
17	Atlas Air Worldwide Holdings, Inc. (a)		644
152	Pacer International, Inc. (a)		480
			1,124

SEE NOTES TO FINANCIAL STATEMENTS.

34   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Airlines — 0.9%
47	Hawaiian Holdings, Inc. (a)		329
88	Republic Airways Holdings, Inc. (a)		652
184	SkyWest, Inc.		3,120
			4,101
	Building Products — 1.2%
40	Builders FirstSource, Inc. (a) (c)		155
154	Gibraltar Industries, Inc. (a)		2,429
20	Insteel Industries, Inc.		265
34	Lennox International, Inc.		1,327
30	NCI Building Systems, Inc. (a)		54
44	Quanex Building Products Corp.		742
21	Trex Co., Inc. (a)		410
			5,382
	Commercial Services & Supplies — 2.8%
112	ACCO Brands Corp. (a)		813
7	Amrep Corp. (a)		99
48	ATC Technology Corp. (a)		1,133
157	Deluxe Corp. (c)		2,328
21	G&K Services, Inc., Class A		518
68	HNI Corp. (c)		1,884
11	ICT Group, Inc. (a)		173
31	Knoll, Inc.		324
13	M&F Worldwide Corp. (a)		510
265	Metalico, Inc. (a) (c)		1,304
88	Standard Register Co. (The)		448
146	Steelcase, Inc., Class A		929
31	United Stationers, Inc. (a)		1,762
			12,225
	Construction & Engineering — 1.2%
37	Dycom Industries, Inc. (a)		294
177	EMCOR Group, Inc. (a)		4,767
17	Integrated Electrical Services, Inc. (a)		100
			5,161
	Electrical Equipment — 1.6%
5	A123 Systems, Inc. (a) (c)		115
52	Acuity Brands, Inc.		1,853
195	EnerSys (a)		4,271
107	LSI Industries, Inc.		846
			7,085
	Industrial Conglomerates — 0.8%
58	Standex International Corp.		1,167
136	Tredegar Corp.		2,145
			3,312
	Machinery — 2.1%
62	AGCO Corp. (a)		2,005
32	Ampco-Pittsburgh Corp.		1,018
11	Cascade Corp.		300
11	CIRCOR International, Inc.		272
28	Duoyuan Printing, Inc., (China) (a)		228
40	Mueller Industries, Inc.		996
170	Mueller Water Products, Inc., Class A		885
20	NACCO Industries, Inc., Class A		986
14	Tecumseh Products Co., Class A (a)		163
46	Wabtec Corp.		1,895
12	Watts Water Technologies, Inc., Class A		368
			9,116
	Marine — 0.6%
288	Horizon Lines, Inc., Class A		1,603
34	International Shipholding Corp.		1,044
			2,647
	Professional Services — 0.9%
22	COMSYS IT Partners, Inc. (a)		199
27	GP Strategies Corp. (a)		203
57	Kforce, Inc. (a)		707
36	MPS Group, Inc. (a)		489
440	Spherion Corp. (a)		2,473
			4,071
	Road & Rail — 0.8%
33	Arkansas Best Corp.		974
29	Celadon Group, Inc. (a)		314
23	Heartland Express, Inc.		350
23	RailAmerica, Inc. (a)		278
48	Saia, Inc. (a)		711
44	Werner Enterprises, Inc.		869
			3,496
	Trading Companies & Distributors — 1.2%
91	Applied Industrial Technologies, Inc.		2,005
47	BlueLinx Holdings, Inc. (a) (c)		129
5	Houston Wire & Cable Co.		62
16	Interline Brands, Inc. (a)		276
105	WESCO International, Inc. (a)		2,839
			5,311
	Total Industrials		66,736
	Information Technology — 11.2%
	Communications Equipment — 1.2%
113	Arris Group, Inc. (a)		1,287
62	Black Box Corp.		1,766

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   35

JPMorgan Small Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Communications Equipment — Continued
60	CommScope, Inc. (a)		1,589
36	Emulex Corp. (a)		387
9	InterDigital, Inc. (a)		247
			5,276
	Computers & Peripherals — 0.6%
188	Electronics for Imaging, Inc. (a)		2,444
40	Imation Corp. (a)		350
2	Quantum Corp. (a)		5
			2,799
	Electronic Equipment, Instruments & Components — 3.1%
93	Agilysys, Inc.		842
62	Benchmark Electronics, Inc. (a)		1,163
2	Checkpoint Systems, Inc. (a)		34
90	Cognex Corp.		1,591
114	Coherent, Inc. (a)		3,374
48	CTS Corp.		465
10	DDi Corp. (a)		47
20	Electro Rent Corp.		231
129	Methode Electronics, Inc.		1,119
48	Newport Corp. (a)		438
15	OSI Systems, Inc. (a)		398
60	Park Electrochemical Corp.		1,669
46	Tech Data Corp. (a)		2,137
68	Technitrol, Inc.		299
			13,807
	Internet Software & Services — 0.6%
20	Ancestry.com, Inc. (a)		285
55	Marchex, Inc., Class B		278
81	Perficient, Inc. (a)		681
27	S1 Corp. (a)		177
77	United Online, Inc.		552
105	Web.com Group, Inc. (a)		684
			2,657
	IT Services — 1.5%
87	Acxiom Corp. (a)		1,172
128	CIBER, Inc. (a)		440
171	CSG Systems International, Inc. (a)		3,266
17	Global Cash Access Holdings, Inc. (a)		126
35	Unisys Corp. (a)		1,356
			6,360
	Semiconductors & Semiconductor Equipment — 1.8%
80	Brooks Automation, Inc. (a)		686
396	Cirrus Logic, Inc. (a)		2,702
64	DSP Group, Inc. (a)		360
84	Integrated Device Technology, Inc. (a)		545
179	Lattice Semiconductor Corp. (a)		482
59	MIPS Technologies, Inc. (a)		256
68	Novellus Systems, Inc. (a)		1,580
34	Photronics, Inc. (a)		152
22	Rudolph Technologies, Inc. (a)		151
31	Semtech Corp. (a)		532
173	Silicon Storage Technology, Inc. (a)		444
8	Zoran Corp. (a)		84
			7,974
	Software — 2.4%
311	Aspen Technology, Inc. (a)		3,043
104	EPIQ Systems, Inc. (a) (c)		1,460
32	Fair Isaac Corp.		680
10	Fortinet, Inc. (a)		170
5	i2 Technologies, Inc. (a)		94
21	MicroStrategy, Inc., Class A (a)		2,012
15	Sybase, Inc. (a)		655
72	Take-Two Interactive Software, Inc. (a) (c)		720
162	TIBCO Software, Inc. (a)		1,562
			10,396
	Total Information Technology		49,269
	Materials — 6.9%
	Chemicals — 3.3%
16	A Schulman, Inc.		325
149	H.B. Fuller Co.		3,383
31	ICO, Inc.		230
52	Innophos Holdings, Inc.		1,184
79	Innospec, Inc., (United Kingdom)		799
37	Koppers Holdings, Inc.		1,123
21	Minerals Technologies, Inc.		1,149
392	PolyOne Corp. (a)		2,924
231	Spartech Corp. (c)		2,369
43	STR Holdings, Inc. (a)		676
33	Zep, Inc.		570
			14,732
	Construction Materials — 0.1%
32	Headwaters, Inc. (a)		207
77	U.S. Concrete, Inc. (a)		70
			277

SEE NOTES TO FINANCIAL STATEMENTS.

36   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Containers & Packaging — 1.3%
20	Boise, Inc. (a)		105
81	Myers Industries, Inc.		741
69	Rock-Tenn Co., Class A		3,493
26	Silgan Holdings, Inc.		1,505
			5,844
	Metals & Mining — 1.4%
36	Globe Specialty Metals, Inc. (a)		338
269	Hecla Mining Co. (a) (c)		1,662
60	Stillwater Mining Co. (a)		569
269	Worthington Industries, Inc.		3,520
			6,089
	Paper & Forest Products — 0.8%
187	Buckeye Technologies, Inc. (a)		1,826
14	Domtar Corp., (Canada) (a)		787
66	Neenah Paper, Inc.		915
			3,528
	Total Materials		30,470
	Telecommunication Services — 0.6%
	Diversified Telecommunication Services — 0.6%
67	Consolidated Communications Holdings, Inc.		1,166
160	Frontier Communications Corp.		1,249
	Total Telecommunication Services		2,415
	Utilities — 5.9%
	Electric Utilities — 1.2%
172	El Paso Electric Co. (a)		3,488
59	UniSource Energy Corp.		1,893
			5,381
	Gas Utilities — 2.3%
1	Chesapeake Utilities Corp.		32
5	National Fuel Gas Co.		235
41	New Jersey Resources Corp.		1,545
118	Nicor, Inc. (c)		4,985
25	Piedmont Natural Gas Co., Inc.		658
87	Southwest Gas Corp.		2,482
7	UGI Corp.		157
			10,094
	Multi-Utilities — 2.2%
200	Avista Corp. (c)		4,316
39	Black Hills Corp.		1,028
164	NorthWestern Corp. (c)		4,262
			9,606
	Water Utilities — 0.2%
19	California Water Service Group		685
	Total Utilities		25,766
	Total Common Stocks (Cost $440,219)		428,070

 

NUMBER OF RIGHTS
Right — 0.0% (g)
	Industrials — 0.0% (g)
66	Builders FirstSource, Inc.,    expiring 01/14/10 (a) (c)    (Cost $—)	16

 

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
U.S. Treasury Obligation — 0.2%
1,135	U.S. Treasury Note, 1.250%, 11/30/10 (k) (Cost $1,145)		1,143

 

SHARES
Short-Term Investment — 1.3%
	Investment Company — 1.3%
5,792	JPMorgan Liquid Assets Money Market Fund, Institutional Class Shares, 0.170%, (b) (l) (m) (Cost $5,792)	5,792

 

PRINCIPAL AMOUNT($)
Investments of Cash Collateral for Securities on Loan — 9.6%
	Corporate Notes — 2.4%
10,050	Monumental Global Funding III, VAR, 0.312%, 05/24/10 (e)	9,957
500	Monumental Global Funding III, VAR, 0.395%, 03/26/10 (e)	497
		10,454

 

SHARES
	Investment Company — 7.2%
31,543	JPMorgan Prime Money Market Fund, Capital Shares, 0.130%, (b) (l)		31,543
	Total Investments of Cash Collateral for Securities on Loan (Cost $42,093)		41,997
	Total Investments — 108.6% (Cost $489,249)		477,018
	Liabilities in Excess of Other Assets — (8.6)%		(37,971	)
	NET ASSETS — 100.0%	$	439,047

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   37

JPMorgan Small Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands, except number of contracts)

Futures Contracts

NUMBER OF CONTRACTS	DESCRIPTION	EXPIRATION DATE	NOTIONAL AMOUNT AT 12/31/09		UNREALIZED APPRECIATION (DEPRECIATION)
	Long Futures Outstanding
160	E-mini Russell 2000	03/19/10	$	9,982	$	279

 

SEE NOTES TO FINANCIAL STATEMENTS.

38   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

JPMorgan U.S. Small Company Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES		SECURITY DESCRIPTION	VALUE($)
Common Stocks — 97.3%
		Consumer Discretionary — 15.9%
		Auto Components — 0.8%
8		Drew Industries, Inc. (a) (c)		155
1		Stoneridge, Inc. (a)		6
9		Superior Industries International, Inc. (c)		133
				294
		Diversified Consumer Services — 0.6%
5		Steiner Leisure Ltd., (Bahamas) (a)		211
		Hotels, Restaurants & Leisure — 1.7%
18		AFC Enterprises, Inc. (a)		148
6		Cheesecake Factory, Inc. (The) (a) (c)		132
2		DineEquity, Inc. (a) (c)		58
11		Monarch Casino & Resort, Inc. (a)		90
9		O’Charley’s, Inc. (a)		56
3		PF Chang’s China Bistro, Inc. (a)		106
6		Ruby Tuesday, Inc. (a) (c)		39
				629
		Household Durables — 5.2%
19		American Greetings Corp., Class A		412
3		Blyth, Inc.		91
1		CSS Industries, Inc.		25
6		Furniture Brands International, Inc. (a)		35
11		Helen of Troy Ltd., (Bermuda) (a)		262
7		Jarden Corp. (c)		229
12		La-Z-Boy, Inc. (a) (c)		116
16		Leggett & Platt, Inc.		316
5		Standard Pacific Corp. (a)		17
17		Tempur-Pedic International, Inc. (a)		397
				1,900
		Internet & Catalog Retail — 0.7%
9		HSN, Inc. (a)		175
2		NutriSystem, Inc. (c)		72
				247
		Media — 0.9%
11		Journal Communications, Inc., Class A		43
11		LIN TV Corp., Class A (a)		48
4		Scholastic Corp.		113
37		Sinclair Broadcast Group, Inc., Class A (a) (c)		148
				352
		Multiline Retail — 0.9%
9		Dillard’s, Inc., Class A (c)		162
18		Retail Ventures, Inc. (a)		163
				325
		Specialty Retail — 4.2%
8		AnnTaylor Stores Corp. (a) (c)		102
7		Asbury Automotive Group, Inc. (a)		83
49		Borders Group, Inc. (a)		58
—	(h)	Build-A-Bear Workshop, Inc. (a)		1
25		Cache, Inc. (a)		113
15		Charming Shoppes, Inc. (a)		96
5		Collective Brands, Inc. (a) (c)		109
2		Destination Maternity Corp. (a)		38
18		Finish Line, Inc. (The), Class A		221
9		Haverty Furniture Cos., Inc.		124
3		Kirkland’s, Inc. (a)		57
16		MarineMax, Inc. (a) (c)		142
5		Midas, Inc. (a)		41
9		OfficeMax, Inc. (a)		108
1		Rent-A-Center, Inc. (a)		12
1		Rue21, Inc. (a)		31
12		Sonic Automotive, Inc., Class A (a) (c)		129
10		Talbots, Inc. (a)		93
				1,558
		Textiles, Apparel & Luxury Goods — 0.9%
21		Liz Claiborne, Inc. (a) (c)		118
2		Oxford Industries, Inc.		43
6		Perry Ellis International, Inc. (a)		83
5		Timberland Co. (The), Class A (a)		95
				339
		Total Consumer Discretionary		5,855
		Consumer Staples — 2.1%
		Beverages — 0.1%
4		National Beverage Corp. (a)		53
		Food & Staples Retailing — 0.4%
10		Pantry, Inc. (The) (a)		134
		Food Products — 0.4%
6		B&G Foods, Inc., Class A		58
7		Dole Food Co., Inc. (a)		87
				145
		Household Products — 0.3%
13		Central Garden & Pet Co., Class A (a)		132
		Personal Products — 0.9%
6		Herbalife Ltd., (Cayman Islands)		243
11		Prestige Brands Holdings, Inc. (a)		85
				328
		Total Consumer Staples		792

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   39

JPMorgan U.S. Small Company Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES		SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
		Energy — 4.5%
		Energy Equipment & Services — 2.2%
2		Bolt Technology Corp. (a)		23
6		Cal Dive International, Inc. (a)		46
2		CARBO Ceramics, Inc. (c)		143
4		Complete Production Services, Inc. (a)		48
3		Dresser-Rand Group, Inc. (a)		82
12		Hercules Offshore, Inc. (a) (c)		59
5		ION Geophysical Corp. (a) (c)		32
24		Key Energy Services, Inc. (a) (c)		214
2		Patterson-UTI Energy, Inc.		37
16		Pioneer Drilling Co. (a)		123
				807
		Oil, Gas & Consumable Fuels — 2.3%
4		Brigham Exploration Co. (a)		48
1		Clayton Williams Energy, Inc. (a)		18
3		Cloud Peak Energy, Inc. (a)		48
27		Endeavour International Corp. (a)		29
2		Frontline Ltd., (Bermuda)		57
5		Mariner Energy, Inc. (a)		60
5		McMoRan Exploration Co. (a) (c)		42
1		PrimeEnergy Corp. (a)		51
3		Rosetta Resources, Inc. (a)		62
5		Stone Energy Corp. (a)		90
5		Swift Energy Co. (a)		110
1		Tesoro Corp. (c)		15
28		VAALCO Energy, Inc. (a)		126
1		W&T Offshore, Inc.		13
2		Westmoreland Coal Co. (a)		17
3		World Fuel Services Corp. (c)		75
				861
		Total Energy		1,668
		Financials — 19.7%
		Capital Markets — 1.6%
2		Affiliated Managers Group, Inc. (a) (c)		161
1		Artio Global Investors, Inc. (a)		25
4		Federated Investors, Inc., Class B		102
1		Janus Capital Group, Inc.		7
4		LaBranche & Co., Inc. (a) (c)		11
2		Oppenheimer Holdings, Inc., (Canada), Class A		70
3		Piper Jaffray Cos. (a)		137
9		Pzena Investment Management, Inc., Class A (a)		73
				586
		Commercial Banks — 5.5%
3		1st Source Corp.		48
5		1st United Bancorp, Inc. (a)		39
7		BancFirst Corp.		263
3		Centerstate Banks, Inc.		25
5		Central Pacific Financial Corp. (a) (c)		7
7		City Holding Co. (c)		239
3		CoBiz Financial, Inc. (c)		13
1		Farmers Capital Bank Corp.		9
2		Financial Institutions, Inc.		27
4		First Bancorp (c)		9
6		First Financial Bancorp (c)		85
2		First Merchants Corp.		11
—	(h)	First South Bancorp, Inc.		3
11		FNB Corp. (c)		75
7		Guaranty Bancorp (a)		9
3		Heartland Financial USA, Inc.		39
1		Hudson Valley Holding Corp.		19
1		Lakeland Financial Corp.		24
5		Nara Bancorp, Inc. (a)		60
3		Sierra Bancorp		24
8		Simmons First National Corp., Class A		222
19		Southwest Bancorp, Inc.		133
10		Suffolk Bancorp (c)		288
1		Sun Bancorp, Inc. (a)		5
2		SVB Financial Group (a) (c)		67
13		TCF Financial Corp. (c)		181
2		UMB Financial Corp.		67
1		Union Bankshares Corp.		17
5		West Bancorp., Inc.		22
				2,030
		Consumer Finance — 1.9%
6		Advance America Cash Advance Centers, Inc.		31
3		Credit Acceptance Corp. (a)		109
14		Dollar Financial Corp. (a) (c)		334
6		World Acceptance Corp. (a) (c)		218
				692
		Diversified Financial Services — 0.5%
9		Marlin Business Services Corp. (a)		73
8		PHH Corp. (a) (c)		131
				204
		Insurance — 3.4%
12		American Equity Investment Life Holding Co.		86
2		Argo Group International Holdings Ltd., (Bermuda) (a)		59

SEE NOTES TO FINANCIAL STATEMENTS.

40   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES		SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
		Insurance — Continued
1		Aspen Insurance Holdings Ltd., (Bermuda)		25
3		Assured Guaranty Ltd., (Bermuda) (c)		67
2		Axis Capital Holdings Ltd., (Bermuda)		60
30		Conseco, Inc. (a) (c)		152
3		Delphi Financial Group, Inc., Class A		60
8		Harleysville Group, Inc.		245
5		Meadowbrook Insurance Group, Inc.		39
2		Navigators Group, Inc. (a)		99
6		Platinum Underwriters Holdings Ltd., (Bermuda) (c)		245
2		ProAssurance Corp. (a) (c)		124
				1,261
		Real Estate Investment Trusts (REITs) — 6.1%
8		Anworth Mortgage Asset Corp.		54
1		Colonial Properties Trust		15
15		DCT Industrial Trust, Inc. (c)		73
8		DiamondRock Hospitality Co.		69
3		EastGroup Properties, Inc.		100
8		Education Realty Trust, Inc.		36
3		Home Properties, Inc. (c)		143
8		Hospitality Properties Trust		178
22		Lexington Realty Trust		132
13		LTC Properties, Inc.		334
32		MFA Financial, Inc.		237
1		Mid-America Apartment Communities, Inc. (c)		24
10		Pennsylvania Real Estate Investment Trust (c)		86
2		Pennymac Mortgage Investment Trust (a)		28
3		PS Business Parks, Inc.		165
15		Ramco-Gershenson Properties Trust		142
5		Saul Centers, Inc.		151
10		Strategic Hotels & Resorts, Inc. (a)		19
23		Sunstone Hotel Investors, Inc. (a) (c)		201
2		Taubman Centers, Inc. (c)		65
				2,252
		Real Estate Management & Development — 0.1%
1		Altisource Portfolio Solutions S.A., (Luxembourg) (a)		25
		Thrifts & Mortgage Finance — 0.6%
5		Northwest Bancshares, Inc.		54
7		OceanFirst Financial Corp.		76
9		Ocwen Financial Corp. (a) (c)		87
				217
		Total Financials		7,267
		Health Care — 14.7%
		Biotechnology — 4.0%
3		Acorda Therapeutics, Inc. (a) (c)		76
16		Anadys Pharmaceuticals, Inc. (a)		33
18		Ariad Pharmaceuticals, Inc. (a)		41
11		ArQule, Inc. (a)		42
24		AVI BioPharma, Inc. (a) (c)		35
2		BioMarin Pharmaceutical, Inc. (a) (c)		36
55		Bionovo, Inc. (a)		26
2		Chelsea Therapeutics International, Inc. (a)		6
12		Cytokinetics, Inc. (a)		34
7		Halozyme Therapeutics, Inc. (a)		43
3		Human Genome Sciences, Inc. (a)		83
7		Idenix Pharmaceuticals, Inc. (a)		15
7		Immunomedics, Inc. (a)		23
8		Incyte Corp. Ltd. (a)		70
4		InterMune, Inc. (a) (c)		57
29		Lexicon Pharmaceuticals, Inc. (a)		49
1		Martek Biosciences Corp. (a)		10
3		Medivation, Inc. (a)		113
8		Molecular Insight Pharmaceuticals, Inc. (a) (c)		18
4		Momenta Pharmaceuticals, Inc. (a)		49
—	(h)	Myriad Pharmaceuticals, Inc. (a)		3
7		Novavax, Inc. (a)		18
4		Onyx Pharmaceuticals, Inc. (a)		126
6		Osiris Therapeutics, Inc. (a)		39
3		Pharmasset, Inc. (a)		68
8		Protalix BioTherapeutics, Inc., (Israel) (a)		54
3		Regeneron Pharmaceuticals, Inc. (a)		63
10		Rigel Pharmaceuticals, Inc. (a)		92
10		Seattle Genetics, Inc. (a) (c)		97
2		Theravance, Inc. (a) (c)		26
1		United Therapeutics Corp. (a)		42
				1,487
		Health Care Equipment & Supplies — 3.6%
9		American Medical Systems Holdings, Inc. (a) (c)		164
2		Cantel Medical Corp. (a)		48
4		Electro-Optical Sciences, Inc. (a) (c)		45
5		Insulet Corp. (a)		76
9		Invacare Corp. (c)		212
6		Micrus Endovascular Corp. (a)		90
2		Orthofix International NV (a)		59
4		Sirona Dental Systems, Inc. (a)		121
3		Somanetics Corp. (a)		46
5		Teleflex, Inc. (c)		291

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   41

JPMorgan U.S. Small Company Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES		SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
		Health Care Equipment & Supplies — Continued
3		Thoratec Corp. (a) (c)		78
20		TomoTherapy, Inc. (a)		78
				1,308
		Health Care Providers & Services — 3.6%
4		America Service Group, Inc.		59
4		American Dental Partners, Inc. (a)		46
2		AMERIGROUP Corp. (a)		54
3		Brookdale Senior Living, Inc. (a) (c)		47
12		Cross Country Healthcare, Inc. (a)		123
1		Emdeon, Inc., Class A (a)		14
3		Emergency Medical Services Corp., Class A (a)		179
5		Emeritus Corp. (a)		84
8		Magellan Health Services, Inc. (a)		326
13		Nighthawk Radiology Holdings, Inc. (a)		61
10		Omnicare, Inc. (c)		234
2		RehabCare Group, Inc. (a)		64
3		Team Health Holdings, Inc. (a) (c)		36
				1,327
		Health Care Technology — 0.7%
5		MedAssets, Inc. (a) (c)		100
5		Medidata Solutions, Inc. (a)		70
6		Vital Images, Inc. (a)		72
				242
		Life Sciences Tools & Services — 1.1%
19		Affymetrix, Inc. (a)		109
16		Harvard Bioscience, Inc. (a)		57
2		Mettler-Toledo International, Inc., (Switzerland) (a) (c)		168
4		PerkinElmer, Inc.		84
				418
		Pharmaceuticals — 1.7%
3		Ardea Biosciences, Inc. (a)		39
2		Auxilium Pharmaceuticals, Inc. (a) (c)		63
8		Biodel, Inc. (a)		36
6		Cadence Pharmaceuticals, Inc. (a) (c)		54
4		Cardiome Pharma Corp., (Canada) (a)		19
8		Inspire Pharmaceuticals, Inc. (a)		45
4		MAP Pharmaceuticals, Inc. (a)		38
1		Optimer Pharmaceuticals, Inc. (a)		11
6		Pain Therapeutics, Inc. (a)		30
1		Perrigo Co.		56
7		Vivus, Inc. (a)		68
3		Watson Pharmaceuticals, Inc. (a) (c)		103
3		XenoPort, Inc. (a) (c)		58
				620
		Total Health Care		5,402
		Industrials — 13.7%
		Aerospace & Defense — 0.9%
1		DynCorp International, Inc., Class A (a)		11
8		GenCorp, Inc. (a) (c)		57
18		Orbital Sciences Corp. (a)		269
				337
		Air Freight & Logistics — 0.1%
2		Hub Group, Inc., Class A (a) (c)		54
		Airlines — 0.9%
27		Hawaiian Holdings, Inc. (a)		192
8		SkyWest, Inc.		142
				334
		Building Products — 1.0%
6		Gibraltar Industries, Inc. (a) (c)		87
4		Lennox International, Inc. (c)		160
7		Quanex Building Products Corp.		117
				364
		Commercial Services & Supplies — 2.7%
25		ACCO Brands Corp. (a)		181
13		American Reprographics Co. (a)		89
3		ATC Technology Corp. (a)		65
8		Cenveo, Inc. (a) (c)		68
9		Deluxe Corp.		133
3		G&K Services, Inc., Class A		70
2		ICT Group, Inc. (a)		34
21		Knoll, Inc.		219
4		Metalico, Inc. (a) (c)		22
2		Standard Parking Corp. (a)		32
11		Standard Register Co. (The) (c)		54
2		Steelcase, Inc., Class A		13
				980
		Construction & Engineering — 1.3%
6		Dycom Industries, Inc. (a)		52
16		EMCOR Group, Inc. (a)		441
				493
		Electrical Equipment — 0.9%
—	(h)	A123 Systems, Inc. (a)		9
4		Acuity Brands, Inc. (c)		136

SEE NOTES TO FINANCIAL STATEMENTS.

42   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Electrical Equipment — Continued
6	EnerSys (a)		133
6	LSI Industries, Inc.		47
			325
	Industrial Conglomerates — 0.6%
5	Standex International Corp.		94
7	Tredegar Corp.		111
			205
	Machinery — 2.1%
2	Cascade Corp.		52
2	Duoyuan Printing, Inc., (China) (a)		19
7	Mueller Industries, Inc.		181
8	Nordson Corp. (c)		490
7	Trimas Corp. (a)		45
			787
	Marine — 0.4%
24	Horizon Lines, Inc., Class A		131
	Professional Services — 1.4%
3	COMSYS IT Partners, Inc. (a)		28
3	GP Strategies Corp. (a)		21
15	Kforce, Inc. (a)		185
53	Spherion Corp. (a)		297
			531
	Road & Rail — 0.6%
2	Celadon Group, Inc. (a)		20
3	Con-way, Inc.		98
1	Heartland Express, Inc.		14
2	RailAmerica, Inc. (a)		24
3	Saia, Inc. (a) (c)		49
			205
	Trading Companies & Distributors — 0.8%
11	WESCO International, Inc. (a) (c)		303
	Total Industrials		5,049
	Information Technology — 17.7%
	Communications Equipment — 1.7%
5	Arris Group, Inc. (a)		60
7	Black Box Corp.		184
9	Emulex Corp. (a)		93
10	InterDigital, Inc. (a) (c)		276
1	Oplink Communications, Inc. (a)		15
			628
	Computers & Peripherals — 0.4%
11	Imation Corp. (a)		98
16	Quantum Corp. (a)		47
			145
	Electronic Equipment, Instruments & Components — 3.5%
6	Benchmark Electronics, Inc. (a)		121
31	Brightpoint, Inc. (a)		225
16	Checkpoint Systems, Inc. (a)		238
9	Coherent, Inc. (a)		279
3	CTS Corp.		30
5	DDi Corp. (a)		24
2	Electro Rent Corp.		22
21	Methode Electronics, Inc.		181
3	Newport Corp. (a)		30
3	OSI Systems, Inc. (a)		76
2	RadiSys Corp. (a)		20
6	Technitrol, Inc.		25
3	TTM Technologies, Inc. (a) (c)		36
			1,307
	Internet Software & Services — 0.7%
2	Ancestry.com, Inc. (a)		25
3	DealerTrack Holdings, Inc. (a)		53
3	Perficient, Inc. (a)		28
4	S1 Corp. (a)		23
7	ValueClick, Inc. (a) (c)		72
9	Web.com Group, Inc. (a)		61
			262
	IT Services — 1.6%
16	Acxiom Corp. (a)		213
9	CIBER, Inc. (a)		31
4	CSG Systems International, Inc. (a)		73
3	Gartner, Inc. (a)		56
5	Global Cash Access Holdings, Inc. (a)		38
5	Hackett Group, Inc. (The) (a)		15
3	Heartland Payment Systems, Inc.		35
3	Unisys Corp. (a)		128
			589
	Semiconductors & Semiconductor Equipment — 3.6%
6	Amkor Technology, Inc. (a)		40
4	Applied Micro Circuits Corp. (a)		32
35	Cirrus Logic, Inc. (a)		241
4	Cymer, Inc. (a) (c)		138

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   43

JPMorgan U.S. Small Company Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands, except number of contracts)

SHARES		SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
		Semiconductors & Semiconductor Equipment — Continued
3		DSP Group, Inc. (a)		15
8		GSI Technology, Inc. (a)		38
5		Integrated Device Technology, Inc. (a)		33
7		Kopin Corp. (a) (c)		30
53		LSI Corp. (a)		320
21		Micrel, Inc. (c)		172
1		Novellus Systems, Inc. (a) (c)		24
5		Photronics, Inc. (a) (c)		22
20		RF Micro Devices, Inc. (a) (c)		93
3		Rudolph Technologies, Inc. (a)		22
3		Semtech Corp. (a)		56
—	(h)	Veeco Instruments, Inc. (a) (c)		13
3		Zoran Corp. (a)		34
				1,323
		Software — 6.2%
29		Aspen Technology, Inc. (a)		283
13		EPIQ Systems, Inc. (a) (c)		186
3		Fair Isaac Corp. (c)		56
1		Fortinet, Inc. (a)		14
1		i2 Technologies, Inc. (a)		17
2		JDA Software Group, Inc. (a)		61
11		Manhattan Associates, Inc. (a)		253
4		MicroStrategy, Inc., Class A (a)		348
31		Monotype Imaging Holdings, Inc. (a)		280
12		Net 1 UEPS Technologies, Inc., (South Africa) (a)		237
10		Sybase, Inc. (a) (c)		421
6		Take-Two Interactive Software, Inc. (a) (c)		60
5		TIBCO Software, Inc. (a)		51
				2,267
		Total Information Technology		6,521
		Materials — 5.0%
		Chemicals — 2.4%
3		Innospec, Inc., (United Kingdom)		26
7		Minerals Technologies, Inc.		403
13		PolyOne Corp. (a)		96
28		Spartech Corp.		290
5		STR Holdings, Inc. (a)		76
				891
		Construction Materials — 0.0% (g)
1		Headwaters, Inc. (a)		5
		Containers & Packaging — 1.2%
2		Boise, Inc. (a)		9
7		Bway Holding Co. (a)		129
5		Myers Industries, Inc.		44
5		Rock-Tenn Co., Class A		267
				449
		Metals & Mining — 0.9%
3		Globe Specialty Metals, Inc. (a) (c)		29
5		Hecla Mining Co. (a) (c)		30
19		Worthington Industries, Inc. (c)		252
				311
		Paper & Forest Products — 0.5%
15		Buckeye Technologies, Inc. (a)		142
1		Domtar Corp., (Canada) (a)		39
				181
		Total Materials		1,837
		Telecommunication Services — 1.2%
		Diversified Telecommunication Services — 0.9%
8		Consolidated Communications Holdings, Inc.		135
13		Frontier Communications Corp.		99
21		PAETEC Holding Corp. (a) (c)		87
				321
		Wireless Telecommunication Services — 0.3%
10		USA Mobility, Inc.		105
		Total Telecommunication Services		426
		Utilities — 2.8%
		Electric Utilities — 0.7%
7		El Paso Electric Co. (a)		150
3		UniSource Energy Corp.		90
				240
		Gas Utilities — 1.0%
1		Chesapeake Utilities Corp.		21
3		New Jersey Resources Corp.		97
4		Nicor, Inc.		181
2		Southwest Gas Corp.		69
				368
		Multi-Utilities — 1.1%
16		NorthWestern Corp.		406
		Total Utilities		1,014
		Total Common Stocks (Cost $32,851)		35,831

 

SEE NOTES TO FINANCIAL STATEMENTS.

44   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
U.S. Treasury Obligation — 0.3%
110	U.S. Treasury Note, 1.250%, 11/30/10 (k) (Cost $111)		111

 

SHARES
Short-Term Investment — 2.3%
	Investment Company — 2.3%
834	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (m) (Cost $834)	834

 

SHARES	SECURITY DESCRIPTION	VALUE($)
Investments of Cash Collateral for Securities on Loan — 25.7%
	Investment Company — 25.7%
9,469	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l) (Cost $9,469)		9,469
	Total Investments — 125.6% (Cost $43,265)		46,245
	Liabilities in Excess of Other Assets — (25.6)%		(9,440	)
	NET ASSETS — 100.0%	$	36,805

 

Percentages indicated are based on net assets.

Futures Contracts

NUMBER OF CONTRACTS	DESCRIPTION	EXPIRATION DATE	NOTIONAL AMOUNT AT 12/31/09		UNREALIZED APPRECIATION (DEPRECIATION)
	Long Futures Outstanding
15	E-mini Russell 2000	03/19/10	$	936	$	43

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   45

JPMorgan Small Cap Funds

NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

ADR—   American Depositary Receipt

VAR—   Variable Rate Security. The interest rate shown is the rate in effect as of December 31, 2009.

(a)—   Non-income producing security.

(b)—   Investment in affiliate. Money market fund registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. or JPMorgan Investment Advisors Inc.

(c)—   Security, or a portion of the security, has been delivered to a counterparty as part of a security lending transaction.

(e)—   Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Trustees and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(g)—   Amount rounds to less than 0.1%.

(h)—   Amount rounds to less than one thousand (shares or dollars).

(k)—   Security is fully or partially segregated with the broker as collateral for futures or with brokers as initial margin for futures contracts.

(l)—   The rate shown is the current yield as of December 31, 2009.

(m)—   All or a portion of this security is reserved for current or potential holdings of futures, swaps, options, TBAs, when-issued securities, delayed delivery securities, reverse repurchase agreements, and forward foreign currency contracts.

SEE NOTES TO FINANCIAL STATEMENTS.

46   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

THIS PAGE IS INTENTIONALLY LEFT BLANK

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   47

STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands, except per share amounts)

	Dynamic Small Cap Growth Fund		Small Cap  Core Fund		Small Cap  Equity Fund
ASSETS:
Investments in non-affiliates, at value	$	181,845	$	439,994	$	1,578,918
Investments in affiliates, at value		67,936		31,249		134,474
Total investment securities, at value		249,781		471,243		1,713,392
Receivables:
Investment securities sold		—		—		610
Fund shares sold		2,978		715		15,512
Interest and dividends		51		455		1,164
Securities lending income		—		42		91
Total Assets		252,810		472,455		1,730,769
LIABILITIES:
Payables:
Due to custodian		—		10		—
Investment securities purchased		650		239		194
Collateral for securities lending program		61,142		16,513		71,246
Fund shares redeemed		334		—		5,381
Variation margin on futures contracts		—		152		—
Accrued liabilities:
Investment advisory fees		62		230		782
Administration fees		13		40		139
Shareholder servicing fees		20		—		262
Distribution fees		48		—		137
Custodian and accounting fees		10		23		11
Trustees’ and Chief Compliance Officer’s fees		7		10		10
Other		437		125		387
Total Liabilities		62,723		17,342		78,549
Net Assets	$	190,087	$	455,113	$	1,652,220

 

SEE NOTES TO FINANCIAL STATEMENTS.

48   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Dynamic Small Cap Growth Fund			Small Cap  Core Fund			Small Cap  Equity Fund
NET ASSETS:
Paid in capital	$	222,076		$	554,608		$	1,532,599
Accumulated undistributed (distributions in excess of) net investment income		(930	)		1,120			834
Accumulated net realized gains (losses)		(62,961	)		(119,297	)		(42,931	)
Net unrealized appreciation (depreciation)		31,902			18,682			161,718
Total Net Assets	$	190,087		$	455,113		$	1,652,220
Net Assets:
Class A	$	77,386		$	—		$	501,293
Class B		3,458			—			14,918
Class C		48,514			—			34,974
Class R2		—			—			3,599
Class R5		—			—			208,968
Select Class		60,729			455,113			888,468
Total	$	190,087		$	455,113		$	1,652,220
Outstanding units of beneficial interest (shares)
($0.0001 par value; unlimited number of shares authorized):
Class A		5,541			—			18,089
Class B		275			—			622
Class C		3,870			—			1,460
Class R2		—			—			131
Class R5		—			—			6,958
Select Class		4,129			15,831			29,588
Net Asset Value:
Class A — Redemption price per share	$	13.97		$	—		$	27.71
Class B — Offering price per share (a)		12.56			—			24.00
Class C — Offering price per share (a)		12.54			—			23.96
Class R2 — Offering and redemption price per share		—			—			27.54
Class R5 — Offering and redemption price per share		—			—			30.03
Select Class — Offering and redemption price per share		14.71			28.75			30.03
Class A maximum sales charge		5.25	%		—%			5.25	%
Class A maximum public offering price per share [net asset value per share/(100% – maximum sales charge)]	$	14.74		$	—		$	29.25
Cost of investments in non-affiliates	$	149,943		$	421,884		$	1,417,200
Cost of investments in affiliates		67,936			31,249			134,474
Value of securities on loan		58,911			15,925			68,552

 

(a)   Redemption price for Class B and Class C Shares varies based upon length of time the shares are held.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   49

STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands, except per share amounts)

	Small Cap Growth Fund		Small Cap Value Fund		U.S. Small Company Fund
ASSETS:
Investments in non-affiliates, at value	$	422,783	$	439,683	$	35,942
Investments in affiliates, at value		55,473		37,335		10,303
Total investment securities, at value		478,256		477,018		46,245
Receivables:
Investment securities sold		—		6,821		67
Fund shares sold		956		533		3
Interest and dividends		116		844		44
Securities lending income		19		37		—
Total Assets		479,347		485,253		46,359
LIABILITIES:
Payables:
Investment securities purchased		4,120		123		6
Collateral for securities lending program		48,775		42,093		9,469
Fund shares redeemed		731		3,292		7
Variation margin on futures contracts		—		64		10
Accrued liabilities:
Investment advisory fees		215		187		5
Administration fees		16		39		3
Shareholder servicing fees		35		48		4
Distribution fees		46		52		—	(a)
Custodian and accounting fees		18		11		11
Trustees’ and Chief Compliance Officer’s fees		5		3		2
Other		248		294		37
Total Liabilities		54,209		46,206		9,554
Net Assets	$	425,138	$	439,047	$	36,805

 

SEE NOTES TO FINANCIAL STATEMENTS.

50   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Small Cap Growth Fund			Small Cap Value Fund			U.S. Small Company Fund
NET ASSETS:
Paid in capital	$	452,984		$	543,498		$	46,214
Accumulated undistributed (distributions in excess of) net investment income		(1,339	)		214			58
Accumulated net realized gains (losses)		(97,283	)		(92,713	)		(12,490	)
Net unrealized appreciation (depreciation)		70,776			(11,952	)		3,023
Total Net Assets	$	425,138		$	439,047		$	36,805
Net Assets:
Class A	$	137,546		$	145,046		$	412
Class B		8,002			11,216			—
Class C		19,217			22,563			240
Class R2		531			191			—
Class R5		—			36,639			—
Institutional Class		161,524			—			11,429
Select Class		98,318			186,039			24,724
Ultra		—			37,353			—
Total	$	425,138		$	439,047		$	36,805
Outstanding units of beneficial interest (shares)
($0.0001 par value; unlimited number of shares authorized):
Class A		16,479			9,950			53
Class B		1,152			868			—
Class C		2,650			1,758			31
Class R2		64			13			—
Class R5		—			2,412			—
Institutional Class		18,399			—			1,461
Select Class		11,286			12,242			3,152
Ultra		—			2,458			—
Net Asset Value:
Class A — Redemption price per share	$	8.35		$	14.58		$	7.78
Class B — Offering price per share (b)		6.95			12.93			—
Class C — Offering price per share (b)		7.25			12.83			7.72
Class R2 — Offering and redemption price per share		8.33			14.56			—
Class R5 — Offering and redemption price per share		—			15.19			—
Institutional Class — Offering and redemption price per share		8.78			—			7.82
Select Class — Offering and redemption price per share		8.71			15.20			7.84
Ultra — Offering and redemption price per share		—			15.20			—
Class A maximum sales charge		5.25	%		5.25	%		5.25	%
Class A maximum public offering price per share [net asset value per share/(100% – maximum sales charge)]	$	8.81		$	15.39		$	8.21
Cost of investments in non-affiliates	$	352,007		$	451,914		$	32,962
Cost of investments in affiliates		55,473			37,335			10,303
Value of securities on loan		46,799			40,208			9,065

 

(a)   Amount rounds to less than $1,000.

(b)   Redemption price for Class B and Class C Shares varies based upon length of time the shares are held.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   51

STATEMENTS OF OPERATIONS
FOR THE SIX MONTH ENDED DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

	Dynamic Small Cap Growth Fund			Small Cap Core Fund			Small Cap Equity Fund
INVESTMENT INCOME:
Interest income from non-affiliates	$	—		$	6		$	—
Dividend income from non-affiliates		258			2,550			12,945
Dividend income from affiliates		5			8			69
Income from securities lending (net)		150			205			427
Total investment income		413			2,769			13,441
EXPENSES:
Investment advisory fees		544			1,322			4,732
Administration fees		82			200			715
Distribution fees:
Class A		77			—			568
Class B		48			—			55
Class C		171			—			128
Class R2		—			—			9
Shareholder servicing fees:
Class A		77			—			568
Class B		16			—			18
Class C		57			—			43
Class R2		—			—			5
Class R5		—			—			40
Select Class		59			508			987
Custodian and accounting fees		21			25			47
Interest expense to affiliates		—			—	(a)		—
Professional fees		27			31			39
Trustees’ and Chief Compliance Officer’s fees		1			—			—
Printing and mailing costs		34			122			130
Registration and filing fees		21			7			61
Transfer agent fees		454			—			647
Other		6			5			18
Total expenses		1,695			2,220			8,810
Less amounts waived		(363	)		(600	)		(854	)
Less earnings credits		—	(a)		—			—	(a)
Net expenses		1,332			1,620			7,956
Net investment income (loss)		(919	)		1,149			5,485

 

(a)   Amount rounds to less than $1,000.

SEE NOTES TO FINANCIAL STATEMENTS.

52   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Dynamic Small Cap Growth Fund		Small Cap Core Fund			Small Cap Equity Fund
REALIZED/UNREALIZED GAINS (LOSSES):
Net realized gain (loss) on transactions from:
Investments in non-affiliates	$	3,949	$	(4,816	)	$	18,753
Futures		—		1,384			—
Net realized gain (loss)		3,949		(3,432	)		18,753
Change in net unrealized appreciation (depreciation) of:
Investments in non-affiliates		23,062		86,405			203,394
Futures		—		676			—
Change in net unrealized appreciation (depreciation)		23,062		87,081			203,394
Net realized/unrealized gains (losses)		27,011		83,649			222,147
Change in net assets resulting from operations	$	26,092	$	84,798		$	227,632

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   53

STATEMENTS OF OPERATIONS
FOR THE SIX MONTH ENDED DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

	Small Cap Growth Fund			Small Cap Value Fund			U.S. Small Company Fund
INVESTMENT INCOME:
Interest income from non-affiliates	$	—		$	7		$	1
Dividend income from non-affiliates		453			4,046			216
Dividend income from affiliates		10			10			1
Income from securities lending (net)		241			221			11
Total investment income		704			4,284			229
EXPENSES:
Investment advisory fees		1,214			1,351			104
Administration fees		184			204			17
Distribution fees:
Class A		157			168			1
Class B		32			42			—
Class C		65			77			1
Class R2		1			—	(a)		—
Shareholder servicing fees:
Class A		157			168			1
Class B		11			14			—
Class C		22			26			—	(a)
Class R2		—	(a)		—	(a)		—
Class R5		—			7			—
Institutional Class		66			—			5
Select Class		112			245			30
Custodian and accounting fees		21			35			25
Interest expense to affiliates		—			—			—	(a)
Professional fees		22			30			30
Trustees’ and Chief Compliance Officer’s fees		2			2			—	(a)
Printing and mailing costs		42			44			3
Registration and filing fees		48			45			26
Transfer agent fees		288			388			11
Other		4			7			4
Total expenses		2,448			2,853			258
Less amounts waived		(417	)		(506	)		(91	)
Less earnings credits		—	(a)		—	(a)		—	(a)
Net expenses		2,031			2,347			167
Net investment income (loss)		(1,327	)		1,937			62

 

(a)   Amount rounds to less than $1,000.

SEE NOTES TO FINANCIAL STATEMENTS.

54   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Small Cap Growth Fund		Small Cap Value Fund			U.S. Small Company Fund
REALIZED/UNREALIZED GAINS (LOSSES):
Net realized gain (loss) on transactions from:
Investments in non-affiliates	$	3,884	$	(19,085	)	$	(266	)
Futures		—		1,432			103
Net realized gain (loss)		3,884		(17,653	)		(163	)
Change in net unrealized appreciation (depreciation) of:
Investments in non-affiliates		70,658		112,767			8,253
Futures		—		466			37
Change in net unrealized appreciation (depreciation)		70,658		113,233			8,290
Net realized/unrealized gains (losses)		74,542		95,580			8,127
Change in net assets resulting from operations	$	73,215	$	97,517		$	8,189

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   55

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED

(Amounts in thousands)

	Dynamic Small Cap Growth Fund						Small Cap Core Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	(919	)	$	(1,483	)	$	1,149		$	3,772
Net realized gain (loss)		3,949			(54,281	)		(3,432	)		(111,813	)
Change in net unrealized appreciation (depreciation)		23,062			(2,658	)		87,081			(42,628	)
Change in net assets resulting from operations		26,092			(58,422	)		84,798			(150,669	)
DISTRIBUTIONS TO SHAREHOLDERS:
Select Class
From net investment income		—			—			(3,749	)		(2,094	)
From net realized gains		—			—			—			(32,291	)
Total distributions to shareholders		—			—			(3,749	)		(34,385	)
CAPITAL TRANSACTIONS:
Change in net assets from capital transactions		19,121			5,163			36,083			(35,094	)
NET ASSETS:
Change in net assets		45,213			(53,259	)		117,132			(220,148	)
Beginning of period		144,874			198,133			337,981			558,129
End of period	$	190,087		$	144,874		$	455,113		$	337,981
Accumulated undistributed (distributions in excess of) net investment income	$	(930	)	$	(11	)	$	1,120		$	3,720

 

SEE NOTES TO FINANCIAL STATEMENTS.

56   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Small Cap Equity Fund						Small Cap Growth Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	5,485		$	413		$	(1,327	)	$	(1,274	)
Net realized gain (loss)		18,753			(17,222	)		3,884			(94,275	)
Change in net unrealized appreciation (depreciation)		203,394			(136,721	)		70,658			(12,337	)
Change in net assets resulting from operations		227,632			(153,530	)		73,215			(107,886	)
DISTRIBUTIONS TO SHAREHOLDERS:
Class A
From net investment income		(686	)		—			—			—
Class R2 (a)
From net investment income		(4	)		—	(b)		—			—
Class R5
From net investment income		(940	)		(291	)		—			—
Select Class
From net investment income		(2,992	)		(670	)		—			—
Total distributions to shareholders		(4,622	)		(961	)		—			—
CAPITAL TRANSACTIONS:
Change in net assets from capital transactions		321,200			71,829			31,608			(17,458	)
NET ASSETS:
Change in net assets		544,210			(82,662	)		104,823			(125,344	)
Beginning of period		1,108,010			1,190,672			320,315			445,659
End of period	$	1,652,220		$	1,108,010		$	425,138		$	320,315
Accumulated undistributed (distributions in excess of) net investment income	$	834		$	(29	)	$	(1,339	)	$	(12	)

 

(a)   Commencement of offering of class of shares effective November 3, 2008.

(b)   Amount rounds to less than $1,000.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   57

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)

(Amounts in thousands)

	Small Cap Value Fund						U.S. Small Company Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	1,937		$	6,572		$	62		$	378
Net realized gain (loss)		(17,653	)		(74,485	)		(163	)		(11,306	)
Change in net unrealized appreciation (depreciation)		113,233			(92,634	)		8,290			(619	)
Change in net assets resulting from operations		97,517			(160,547	)		8,189			(11,547	)
DISTRIBUTIONS TO SHAREHOLDERS:
Class A
From net investment income		(296	)		(1,920	)		(4	)		—	(a)
From net realized gains		—			(9,639	)		—			(1	)
Class B
From net investment income		(2	)		(170	)		—			—
From net realized gains		—			(1,143	)		—			—
Class C
From net investment income		(8	)		(271	)		(2	)		—	(a)
From net realized gains		—			(1,750	)		—			—	(a)
Class R2 (b)
From net investment income		—	(a)		(1	)		—			—
From net realized gains		—			(3	)		—			—
Class R5
From net investment income		(128	)		(252	)		—			—
From net realized gains		—			(540	)		—			—
Institutional Class
From net investment income		—			—			(118	)		(76	)
From net realized gains		—			—			—			(104	)
Select Class
From net investment income		(551	)		(4,086	)		(241	)		(81	)
From net realized gains		—			(17,145	)		—			(192	)
Ultra
From net investment income		(120	)		(377	)		—			—
From net realized gains		—			(1,645	)		—			—
Total distributions to shareholders		(1,105	)		(38,942	)		(365	)		(454	)
CAPITAL TRANSACTIONS:
Change in net assets from capital transactions		(26,819	)		(25,929	)		(1,137	)		(7,202	)
NET ASSETS:
Change in net assets		69,593			(225,418	)		6,687			(19,203	)
Beginning of period		369,454			594,872			30,118			49,321
End of period	$	439,047		$	369,454		$	36,805		$	30,118
Accumulated undistributed (distributions in excess of) net investment income	$	214		$	(618	)	$	58		$	361

 

(a)   Amount rounds to less than $1,000.

(b)   Commencement of offering of class of shares effective November 3, 2008.

SEE NOTES TO FINANCIAL STATEMENTS.

58   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Dynamic Small Cap Growth Fund						Small Cap Core Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CAPITAL TRANSACTIONS:
Class A
Proceeds from shares issued	$	22,987		$	13,600		$	—		$	—
Cost of shares redeemed		(7,414	)		(16,185	)		—			—
Change in net assets from Class A capital transactions	$	15,573		$	(2,585	)	$	—		$	—
Class B
Proceeds from shares issued	$	1,870		$	7,899		$	—		$	—
Cost of shares redeemed		(15,781	)		(11,493	)		—			—
Change in net assets from Class B capital transactions	$	(13,911	)	$	(3,594	)	$	—		$	—
Class C
Proceeds from shares issued	$	9,738		$	19,776		$	—		$	—
Cost of shares redeemed		(9,059	)		(20,495	)		—			—
Change in net assets from Class C capital transactions	$	679		$	(719	)	$	—		$	—
Select Class
Proceeds from shares issued	$	25,486		$	24,725		$	56,625		$	35,040
Dividends and distributions reinvested		—			—			3,093			29,990
Cost of shares redeemed		(8,706	)		(12,664	)		(23,635	)		(100,124	)
Change in net assets from Select Class capital transactions	$	16,780		$	12,061		$	36,083		$	(35,094	)
Total change in net assets from capital transactions	$	19,121		$	5,163		$	36,083		$	(35,094	)
SHARE TRANSACTIONS:
Class A
Issued		1,780			1,069			—			—
Redeemed		(565	)		(1,390	)		—			—
Change in Class A Shares		1,215			(321	)		—			—
Class B
Issued		161			741			—			—
Redeemed		(1,385	)		(1,054	)		—			—
Change in Class B Shares		(1,224	)		(313	)		—			—
Class C
Issued		832			1,838			—			—
Redeemed		(771	)		(1,893	)		—			—
Change in Class C Shares		61			(55	)		—			—
Select Class
Issued		1,832			1,958			2,074			1,445
Reinvested		—			—			109			1,331
Redeemed		(630	)		(1,042	)		(872	)		(3,860	)
Change in Select Class Shares		1,202			916			1,311			(1,084	)

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   59

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)

(Amounts in thousands)

	Small Cap Equity Fund						Small Cap Growth Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CAPITAL TRANSACTIONS:
Class A
Proceeds from shares issued	$	118,663		$	149,358		$	28,557		$	48,841
Dividends and distributions reinvested		581			—			—			—
Cost of shares redeemed		(59,048	)		(121,285	)		(23,613	)		(31,939	)
Change in net assets from Class A capital transactions	$	60,196		$	28,073		$	4,944		$	16,902
Class B
Proceeds from shares issued	$	201		$	275		$	357		$	1,322
Cost of shares redeemed		(1,303	)		(4,342	)		(1,989	)		(3,516	)
Change in net assets from Class B capital transactions	$	(1,102	)	$	(4,067	)	$	(1,632	)	$	(2,194	)
Class C
Proceeds from shares issued	$	2,908		$	3,004		$	3,526		$	4,486
Cost of shares redeemed		(3,910	)		(10,582	)		(2,063	)		(3,862	)
Change in net assets from Class C capital transactions	$	(1,002	)	$	(7,578	)	$	1,463		$	624
Class R2 (a)
Proceeds from shares issued	$	4,717		$	1,490		$	581		$	50
Dividends and distributions reinvested		1			—	(b)		—			—
Cost of shares redeemed		(3,242	)		(73	)		(155	)		—
Change in net assets from Class R2 capital transactions	$	1,476		$	1,417		$	426		$	50
Class R5
Proceeds from shares issued	$	113,557		$	36,823		$	—		$	—
Dividends and distributions reinvested		898			291			—			—
Cost of shares redeemed		(13,262	)		(15,244	)		—			—
Change in net assets from Class R5 capital transactions	$	101,193		$	21,870		$	—		$	—
Institutional Class
Proceeds from shares issued	$	—		$	—		$	46,036		$	66,502
Cost of shares redeemed		—			—			(12,897	)		(35,241	)
Change in net assets from Institutional Class capital transactions	$	—		$	—		$	33,139		$	31,261
Select Class
Proceeds from shares issued	$	269,219		$	315,244		$	20,018		$	30,155
Dividends and distributions reinvested		1,979			422			—			—
Cost of shares redeemed		(110,759	)		(283,552	)		(26,750	)		(94,256	)
Change in net assets from Select Class capital transactions	$	160,439		$	32,114		$	(6,732	)	$	(64,101	)
Total change in net assets from capital transactions	$	321,200		$	71,829		$	31,608		$	(17,458	)

 

SEE NOTES TO FINANCIAL STATEMENTS.

60   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Small Cap Equity Fund						Small Cap Growth Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
SHARE TRANSACTIONS:
Class A
Issued		4,535			6,627			3,721			7,237
Reinvested		21			—			—			—
Redeemed		(2,255	)		(5,621	)		(3,073	)		(4,904	)
Change in Class A Shares		2,301			1,006			648			2,333
Class B
Issued		9			14			57			242
Redeemed		(57	)		(232	)		(309	)		(623	)
Change in Class B Shares		(48	)		(218	)		(252	)		(381	)
Class C
Issued		130			158			526			745
Reinvested		—			—			—			—
Redeemed		(171	)		(559	)		(307	)		(688	)
Change in Class C Shares		(41	)		(401	)		219			57
Class R2 (a)
Issued		189			65			76			8
Reinvested		—	(c)		—	(c)		—			—
Redeemed		(120	)		(3	)		(20	)		—
Change in Class R2 Shares		69			62			56			8
Class R5
Issued		4,028			1,543			—			—
Reinvested		30			14			—			—
Redeemed		(461	)		(676	)		—			—
Change in Class R5 Shares		3,597			881			—			—
Institutional Class
Issued		—			—			5,608			10,062
Redeemed		—			—			(1,603	)		(5,441	)
Change in Institutional Class Shares		—			—			4,005			4,621
Select Class
Issued		9,745			12,795			2,484			4,540
Reinvested		66			19			—			—	(c)
Redeemed		(3,822	)		(10,943	)		(3,565	)		(13,837	)
Change in Select Class Shares		5,989			1,871			(1,081	)		(9,297	)

 

(a)   Commencement of offering of class of shares effective November 3, 2008.

(b)   Amount rounds to less than $1,000.

(c)   Amount rounds to less than 1,000.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   61

STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)

(Amounts in thousands)

	Small Cap Value Fund						U.S. Small Company Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
CAPITAL TRANSACTIONS:
Class A
Proceeds from shares issued	$	32,094		$	72,545		$	175		$	193
Dividends and distributions reinvested		250			9,738			4			1
Cost of shares redeemed		(26,075	)		(67,593	)		(84	)		(62	)
Change in net assets from Class A capital transactions	$	6,269		$	14,690		$	95		$	132
Class B
Proceeds from shares issued	$	177		$	1,690		$	—		$	—
Dividends and distributions reinvested		2			1,227			—			—
Cost of shares redeemed		(2,233	)		(5,205	)		—			—
Change in net assets from Class B capital transactions	$	(2,054	)	$	(2,288	)	$	—		$	—
Class C
Proceeds from shares issued	$	3,443		$	4,188		$	126		$	92
Dividends and distributions reinvested		6			1,418			2			—	(a)
Cost of shares redeemed		(3,012	)		(8,379	)		(20	)		(30	)
Change in net assets from Class C capital transactions	$	437		$	(2,773	)	$	108		$	62
Class R2 (b)
Proceeds from shares issued	$	134		$	64		$	—		$	—
Dividends and distributions reinvested		—	(a)		3			—			—
Cost of shares redeemed		(26	)		—	(a)		—			—
Change in net assets from Class R2 capital transactions	$	108		$	67		$	—		$	—
Class R5
Proceeds from shares issued	$	25,161		$	8,208		$	—		$	—
Dividends and distributions reinvested		65			792			—			—
Cost of shares redeemed		(6,044	)		(2,194	)		—			—
Change in net assets from Class R5 capital transactions	$	19,182		$	6,806		$	—		$	—
Institutional Class
Proceeds from shares issued	$	—		$	—		$	32		$	2,979
Dividends and distributions reinvested		—			—			85			72
Cost of shares redeemed		—			—			(142	)		(5,966	)
Change in net assets from Institutional Class capital transactions	$	—		$	—		$	(25	)	$	(2,915	)
Select Class
Proceeds from shares issued	$	15,916		$	73,867		$	268		$	696
Dividends and distributions reinvested		199			10,299			175			216
Cost of shares redeemed		(80,985	)		(126,001	)		(1,758	)		(5,393	)
Change in net assets from Select Class capital transactions	$	(64,870	)	$	(41,835	)	$	(1,315	)	$	(4,481	)
Ultra
Proceeds from shares issued	$	20,567		$	2,034		$	—		$	—
Dividends and distributions reinvested		—			188			—			—
Cost of shares redeemed		(6,458	)		(2,818	)		—			—
Change in net assets from Ultra capital transactions	$	14,109		$	(596	)	$	—		$	—
Total change in net assets from capital transactions	$	(26,819	)	$	(25,929	)	$	(1,137	)	$	(7,202	)

 

SEE NOTES TO FINANCIAL STATEMENTS.

62   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Small Cap Value Fund						U.S. Small Company Fund
	Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009			Six Months Ended 12/31/2009 (Unaudited)			Year Ended 6/30/2009
SHARE TRANSACTIONS:
Class A
Issued		2,387			5,209			25			29
Reinvested		17			869			—	(c)		—	(c)
Redeemed		(1,913	)		(5,546	)		(11	)		(8	)
Change in Class A Shares		491			532			14			21
Class B
Issued		15			150			—			—
Reinvested		—	(c)		124			—			—
Redeemed		(190	)		(471	)		—			—
Change in Class B Shares		(175	)		(197	)		—			—
Class C
Issued		289			373			19			14
Reinvested		1			144			—	(c)		—	(c)
Redeemed		(254	)		(751	)		(3	)		(4	)
Change in Class C Shares		36			(234	)		16			10
Class R2 (b)
Issued		10			5			—			—
Reinvested		—	(c)		—	(c)		—			—
Redeemed		(2	)		—	(c)		—			—
Change in Class R2 Shares		8			5			—			—
Class R5
Issued		1,695			672			—			—
Reinvested		5			69			—			—
Redeemed		(405	)		(181	)		—			—
Change in Class R5 Shares		1,295			560			—			—
Institutional Class
Issued		—			—			4			615
Reinvested		—			—			11			13
Redeemed		—			—			(20	)		(954	)
Change in Institutional Class Shares		—			—			(5	)		(326	)
Select Class
Issued		1,152			6,029			37			116
Reinvested		14			879			22			38
Redeemed		(5,792	)		(9,420	)		(237	)		(881	)
Change in Select Class Shares		(4,626	)		(2,512	)		(178	)		(727	)
Ultra
Issued		1,371			173			—			—
Reinvested		—			16			—			—
Redeemed		(431	)		(243	)		—			—
Change in Ultra Shares		940			(54	)		—			—

 

(a)   Amount rounds to less than $1,000.

(b)   Commencement of offering of class of shares effective November 3, 2008.

(c)   Amount rounds to less than 1,000.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   63

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED

	Per share operating performance
			Investment operations									Distributions
	Net asset value, beginning of period		Net         investment         income         (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Net realized gain			Net asset value, end of period
Dynamic Small Cap Growth Fund
Class A
Six Months Ended December 31, 2009 (Unaudited)	$	11.89	$	(0.07	)(e)	$	2.15		$	2.08		$	—		$	13.97
Year Ended June 30, 2009		16.65		(0.11	)(e)		(4.65	)		(4.76	)		—			11.89
Year Ended June 30, 2008		20.73		(0.19	)(e)		(2.09	)		(2.28	)		(1.80	)		16.65
Year Ended June 30, 2007		19.34		(0.19	)(e)		3.59			3.40			(2.01	)		20.73
January 1, 2006 through June 30, 2006 (f)		18.12		(0.09	)(e)		1.31			1.22			—			19.34
Year Ended December 31, 2005		18.46		(0.21	)(e)		1.20			0.99			(1.33	)		18.12
Year Ended December 31, 2004		16.81		(0.19	)(e)		1.84			1.65			—			18.46
Class B
Six Months Ended December 31, 2009 (Unaudited)		10.73		(0.09	)(e)		1.92			1.83			—			12.56
Year Ended June 30, 2009		15.12		(0.16	)(e)		(4.23	)		(4.39	)		—			10.73
Year Ended June 30, 2008		19.09		(0.28	)(e)		(1.89	)		(2.17	)		(1.80	)		15.12
Year Ended June 30, 2007		18.07		(0.29	)(e)		3.32			3.03			(2.01	)		19.09
January 1, 2006 through June 30, 2006 (f)		16.97		(0.14	)(e)		1.24			1.10			—			18.07
Year Ended December 31, 2005		17.47		(0.29	)(e)		1.12			0.83			(1.33	)		16.97
Year Ended December 31, 2004		16.01		(0.28	)(e)		1.74			1.46			—			17.47
Class C
Six Months Ended December 31, 2009 (Unaudited)		10.71		(0.09	)(e)		1.92			1.83			—			12.54
Year Ended June 30, 2009		15.09		(0.16	)(e)		(4.22	)		(4.38	)		—			10.71
Year Ended June 30, 2008		19.06		(0.28	)(e)		(1.89	)		(2.17	)		(1.80	)		15.09
Year Ended June 30, 2007		18.04		(0.29	)(e)		3.32			3.03			(2.01	)		19.06
January 1, 2006 through June 30, 2006 (f)		16.95		(0.14	)(e)		1.23			1.09			—			18.04
Year Ended December 31, 2005		17.44		(0.30	)(e)		1.14			0.84			(1.33	)		16.95
Year Ended December 31, 2004		15.98		(0.28	)(e)		1.74			1.46			—			17.44
Select Class
Six Months Ended December 31, 2009 (Unaudited)		12.50		(0.04	)(e)		2.25			2.21			—			14.71
Year Ended June 30, 2009		17.44		(0.06	)(e)		(4.88	)		(4.94	)		—			12.50
Year Ended June 30, 2008		21.53		(0.12	)(e)		(2.17	)		(2.29	)		(1.80	)		17.44
Year Ended June 30, 2007		19.95		(0.12	)(e)		3.71			3.59			(2.01	)		21.53
January 1, 2006 through June 30, 2006 (f)		18.65		(0.05	)(e)		1.35			1.30			—			19.95
Year Ended December 31, 2005		18.89		(0.14	)(e)		1.23			1.09			(1.33	)		18.65
Year Ended December 31, 2004		17.13		(0.13	)(e)		1.89			1.76			—			18.89

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Calculated based upon average shares outstanding.

(f)   The Fund changed its fiscal year end from December 31 to June 30.

SEE NOTES TO FINANCIAL STATEMENTS.

64   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

Ratios/Supplemental data
					Ratios to average net assets (a)
Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
	17.49	%	$	77,386		1.49	%		(1.00	)%		1.92	%		38	%
	(28.59	)		51,434		1.50			(0.86	)		2.16			83
	(11.92	)		77,384		1.50			(0.99	)		1.95			122
	18.59			87,347		1.50			(1.00	)		2.04			144
	6.73			82,529		1.50			(0.94	)		1.82			86
	5.29			75,940		1.50			(1.16	)		1.67			143
	9.82			86,000		1.50			(1.14	)		1.73			112
	17.05			3,458		2.10			(1.60	)		2.44			38
	(29.03	)		16,081		2.10			(1.46	)		2.65			83
	(12.38	)		27,388		2.10			(1.59	)		2.44			122
	17.81			35,349		2.10			(1.61	)		2.53			144
	6.48			40,478		2.10			(1.54	)		2.32			86
	4.66			41,440		2.06			(1.72	)		2.15			143
	9.12			62,000		2.12			(1.76	)		2.23			112
	17.09			48,514		2.09			(1.60	)		2.42			38
	(29.03	)		40,775		2.10			(1.46	)		2.66			83
	(12.40	)		58,290		2.10			(1.59	)		2.44			122
	17.84			72,836		2.10			(1.60	)		2.55			144
	6.43			54,608		2.10			(1.54	)		2.32			86
	4.73			43,211		2.06			(1.72	)		2.18			143
	9.14			34,000		2.12			(1.76	)		2.23			112
	17.68			60,729		1.09			(0.60	)		1.67			38
	(28.33	)		36,584		1.10			(0.46	)		1.92			83
	(11.50	)		35,071		1.10			(0.60	)		1.70			122
	19.00			31,603		1.10			(0.60	)		1.80			144
	6.97			28,212		1.10			(0.54	)		1.57			86
	5.70			21,753		1.10			(0.77	)		1.43			143
	10.27			10,000		1.10			(0.74	)		1.32			112

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   65

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)

	Per share operating performance
			Investment operations								Distributions
	Net asset value, beginning of period		Net investment income (loss)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Net investment income			Net realized gain			Total distributions
Small Cap Core Fund
Six Months Ended December 31, 2009 (Unaudited)	$	23.28	$	0.05	$	5.66		$	5.71		$	(0.24	)	$	—		$	(0.24	)
Year Ended June 30, 2009		35.77		0.27		(10.26	)(e)(f)		(9.99	)		(0.14	)		(2.36	)		(2.50	)
Year Ended June 30, 2008		51.34		0.34		(9.43	)		(9.09	)		(0.27	)		(6.21	)		(6.48	)
Year Ended June 30, 2007		47.21		0.25		7.07			7.32			(0.22	)		(2.97	)		(3.19	)
January 1, 2006 through June 30, 2006 (g)		43.99		0.09		3.13			3.22			—			—			—
Year Ended December 31, 2005		43.46		0.18		1.52			1.70			(0.19	)		(0.98	)		(1.17	)
Year Ended December 31, 2004		44.39		0.09		9.51			9.60			(0.07	)		(10.46	)		(10.53	)

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Includes gains resulting from litigation payments on securities owned in prior year. Without these gains, the net realized and unrealized gains (losses) on investments per share would have been $(10.30), and the total return would have been (27.78)%.

(f)   An affiliate of JPMorgan Chase & Co. reimbursed the Fund for losses incurred from an operational error. Without this payment, the net and unrealized gains (losses) on investments per share would have been $(10.27), and the total return would have been (27.69)%.

(g)   The Fund changed its fiscal year end from December 31 to June 30.

SEE NOTES TO FINANCIAL STATEMENTS.

66   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Ratios/Supplemental data
						Ratios to average net assets (a)
Net asset value, end of period	Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
$28.75		24.54	%	$	455,113		0.80	%		0.56	%		1.09	%		23	%
23.28		(27.66	) (e)(f)		337,981		0.80			0.96			1.10			42
35.77		(18.23	)		558,129		0.80			0.77			1.07			35
51.34		15.99			1,016,826		0.80			0.49			1.08			37
47.21		7.32			1,105,086		0.80			0.37			1.04			24
43.99		3.90			815,905		0.80			0.39			1.06			37
43.46		22.31			904,000		0.64			0.25			1.12			170

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   67

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)

	Per share operating performance
			Investment operations									Distributions
	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Net investment income			Net realized gain			Total distributions
Small Cap Equity Fund
Class A
Six Months Ended December 31, 2009 (Unaudited)	$	23.59	$	0.07	(e)	$	4.09		$	4.16		$	(0.04	)	$	—		$	(0.04	)
Year Ended June 30, 2009		27.42		(0.03	)(e)		(3.80	)		(3.83	)		—			—			—
Year Ended June 30, 2008		33.16		0.05	(e)		(3.91	)		(3.86	)		(0.12	)		(1.76	)		(1.88	)
Year Ended June 30, 2007		28.30		0.13	(e)		6.01			6.14			—	(f)		(1.28	)		(1.28	)
January 1, 2006 through June 30, 2006 (g)		26.30		(0.01	)(e)		2.01			2.00			—			—			—
Year Ended December 31, 2005		26.44		(0.08	)(e)		3.36			3.28			—			(3.42	)		(3.42	)
Year Ended December 31, 2004		24.11		(0.17	)(e)		6.33			6.16			—			(3.83	)		(3.83	)
Class B
Six Months Ended December 31, 2009 (Unaudited)		20.46		—	(e)(f)		3.54			3.54			—			—			—
Year Ended June 30, 2009		23.90		(0.12	)(e)		(3.32	)		(3.44	)		—			—			—
Year Ended June 30, 2008		29.17		(0.08	)(e)		(3.43	)		(3.51	)		—			(1.76	)		(1.76	)
Year Ended June 30, 2007		25.16		(0.03	)(e)		5.32			5.29			—			(1.28	)		(1.28	)
January 1, 2006 through June 30, 2006 (g)		23.44		(0.07	)(e)		1.79			1.72			—			—			—
Year Ended December 31, 2005		24.01		(0.20	)(e)		3.05			2.85			—			(3.42	)		(3.42	)
Year Ended December 31, 2004		22.34		(0.34	)(e)		5.84			5.50			—			(3.83	)		(3.83	)
Class C
Six Months Ended December 31, 2009 (Unaudited)		20.42		—	(e)(f)		3.54			3.54			—			—			—
Year Ended June 30, 2009		23.86		(0.12	)(e)		(3.32	)		(3.44	)		—			—			—
Year Ended June 30, 2008		29.15		(0.08	)(e)		(3.43	)		(3.51	)		(0.02	)		(1.76	)		(1.78	)
Year Ended June 30, 2007		25.14		(0.02	)(e)		5.31			5.29			—			(1.28	)		(1.28	)
January 1, 2006 through June 30, 2006 (g)		23.43		(0.06	)(e)		1.77			1.71			—			—			—
February 18, 2005 (h) through December 31, 2005		24.08		(0.14	)(e)		2.91			2.77			—			(3.42	)		(3.42	)
Class R2
Six Months Ended December 31, 2009 (Unaudited)		23.48		0.02	(e)		4.07			4.09			(0.03	)		—			(0.03	)
November 3, 2008 (h) through June 30, 2009		20.98		(0.06	)(e)		2.63			2.57			(0.07	)		—			(0.07	)
Class R5
Six Months Ended December 31, 2009 (Unaudited)		25.60		0.16	(e)		4.41			4.57			(0.14	)		—			(0.14	)
Year Ended June 30, 2009		29.72		0.09	(e)		(4.12	)		(4.03	)		(0.09	)		—			(0.09	)
Year Ended June 30, 2008		35.75		0.21	(e)		(4.21	)		(4.00	)		(0.27	)		(1.76	)		(2.03	)
Year Ended June 30, 2007		30.38		0.32	(e)		6.45			6.77			(0.12	)		(1.28	)		(1.40	)
May 15, 2006 (h) through June 30, 2006		31.21		0.05	(e)		(0.88	)		(0.83	)		—			—			—
Select Class
Six Months Ended December 31, 2009 (Unaudited)		25.58		0.12	(e)		4.43			4.55			(0.10	)		—			(0.10	)
Year Ended June 30, 2009		29.68		0.04	(e)		(4.11	)		(4.07	)		(0.03	)		—			(0.03	)
Year Ended June 30, 2008		35.71		0.15	(e)		(4.22	)		(4.07	)		(0.20	)		(1.76	)		(1.96	)
Year Ended June 30, 2007		30.38		0.25	(e)		6.45			6.70			(0.09	)		(1.28	)		(1.37	)
January 1, 2006 through June 30, 2006 (g)		28.17		0.06	(e)		2.15			2.21			—			—			—
Year Ended December 31, 2005		27.96		0.05	(e)		3.58			3.63			—			(3.42	)		(3.42	)
Year Ended December 31, 2004		25.18		(0.05	)(e)		6.66			6.61			—			(3.83	)		(3.83	)

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Calculated based upon average shares outstanding.

(f)   Amount rounds to less than $0.01.

(g)   The Fund changed its fiscal year end from December 31 to June 30.

(h)   Commencement of offering of class of shares.

SEE NOTES TO FINANCIAL STATEMENTS.

68   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Ratios/Supplemental data
						Ratios to average net assets (a)
Net asset value, end of period	Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
$27.71		17.63	%	$	501,293		1.29	%		0.56	%		1.38	%		14	%
23.59		(13.97	)		372,525		1.30			(0.13	)		1.44			45
27.42		(11.80	)		405,375		1.25			0.18			1.40			52
33.16		22.23			522,428		1.15			0.41			1.39			26
28.30		7.60			284,104		1.28			(0.05	)		1.36			21
26.30		12.39			209,321		1.35			(0.28	)		1.41			70
26.44		26.13			129,000		1.38			(0.66	)		1.62			44
24.00		17.30			14,918		1.79			0.03			1.88			14
20.46		(14.39	)		13,711		1.80			(0.64	)		1.94			45
23.90		(12.21	)		21,212		1.75			(0.32	)		1.90			52
29.17		21.60			30,769		1.65			(0.10	)		1.89			26
25.16		7.34			22,370		1.78			(0.55	)		1.86			21
23.44		11.85			17,106		1.87			(0.83	)		1.91			70
24.01		25.22			17,000		2.12			(1.43	)		2.12			44
23.96		17.34			34,974		1.79			0.04			1.88			14
20.42		(14.42	)		30,661		1.80			(0.64	)		1.94			45
23.86		(12.21	)		45,375		1.75			(0.32	)		1.90			52
29.15		21.61			64,603		1.65			(0.07	)		1.89			26
25.14		7.30			22,209		1.77			(0.51	)		1.86			21
23.43		11.48			10,678		1.85			(0.49	)		1.91			70
27.54		17.42			3,599		1.54			0.15			1.63			14
23.48		12.30			1,461		1.55			(0.39	)		1.75			45
30.03		17.87			208,968		0.79			1.10			0.93			14
25.60		(13.50	)		86,024		0.80			0.38			0.99			45
29.72		(11.35	)		73,737		0.76			0.68			0.96			52
35.75		22.84			16,692		0.65			0.95			0.94			26
30.38		(2.66	)		4,297		0.65			1.21			0.90			21
30.03		17.80			888,468		0.99			0.84			1.13			14
25.58		(13.69	)		603,628		1.00			0.17			1.19			45
29.68		(11.54	)		644,973		0.94			0.48			1.15			52
35.71		22.58			875,737		0.85			0.74			1.14			26
30.38		7.85			358,568		0.85			0.38			1.11			21
28.17		12.98			243,437		0.85			0.18			1.14			70
27.96		26.81			211,000		0.85			(0.17	)		1.11			44

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   69

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)

	Per share operating performance
			Investment operations									Distributions
	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Net realized gain			Net asset value, end of period
Small Cap Growth Fund
Class A
Six Months Ended December 31, 2009 (Unaudited)	$	6.80	$	(0.03	)(e)	$	1.58		$	1.55		$	—		$	8.35
Year Ended June 30, 2009		8.94		(0.04	)(e)		(2.10	)(f)		(2.14	)		—			6.80
Year Ended June 30, 2008		11.98		(0.06	)(e)		(1.28	)		(1.34	)		(1.70	)		8.94
Year Ended June 30, 2007		11.91		(0.07	)(e)		1.93			1.86			(1.79	)		11.98
Year Ended June 30, 2006		12.54		(0.08	)		2.03			1.95			(2.58	)		11.91
Year Ended June 30, 2005		11.73		(0.11	)		0.98			0.87			(0.06	)		12.54
Class B
Six Months Ended December 31, 2009 (Unaudited)		5.67		(0.05	)(e)		1.33			1.28			—			6.95
Year Ended June 30, 2009		7.52		(0.07	)(e)		(1.78	)(f)		(1.85	)		—			5.67
Year Ended June 30, 2008		10.41		(0.11	)(e)		(1.08	)		(1.19	)		(1.70	)		7.52
Year Ended June 30, 2007		10.62		(0.13	)(e)		1.71			1.58			(1.79	)		10.41
Year Ended June 30, 2006		11.50		(0.23	)		1.93			1.70			(2.58	)		10.62
Year Ended June 30, 2005		10.84		(0.23	)		0.95			0.72			(0.06	)		11.50
Class C
Six Months Ended December 31, 2009 (Unaudited)		5.92		(0.05	)(e)		1.38			1.33			—			7.25
Year Ended June 30, 2009		7.84		(0.07	)(e)		(1.85	)(f)		(1.92	)		—			5.92
Year Ended June 30, 2008		10.78		(0.11	)(e)		(1.13	)		(1.24	)		(1.70	)		7.84
Year Ended June 30, 2007		10.94		(0.13	)(e)		1.76			1.63			(1.79	)		10.78
Year Ended June 30, 2006		11.77		(0.09	)		1.84			1.75			(2.58	)		10.94
Year Ended June 30, 2005		11.09		(0.15	)		0.89			0.74			(0.06	)		11.77
Class R2
Six Months Ended December 31, 2009 (Unaudited)		6.79		(0.04	)(e)		1.58			1.54			—			8.33
November 3, 2008 (h) through June 30, 2009		6.28		(0.03	)(e)		0.54			0.51			—			6.79
Institutional Class
Six Months Ended December 31, 2009 (Unaudited)		7.13		(0.02	)(e)		1.67			1.65			—			8.78
Year Ended June 30, 2009		9.36		(0.01	)(e)		(2.22	)(f)		(2.23	)		—			7.13
Year Ended June 30, 2008		12.41		(0.02	)(e)		(1.33	)		(1.35	)		(1.70	)		9.36
Year Ended June 30, 2007		12.23		(0.03	)(e)		2.00			1.97			(1.79	)		12.41
Year Ended June 30, 2006		12.77		(0.03	)		2.07			2.04			(2.58	)		12.23
February 18, 2005 (h) through June 30, 2005		12.57		(0.01	)		0.21			0.20			—			12.77
Select Class
Six Months Ended December 31, 2009 (Unaudited)		7.08		(0.02	)(e)		1.65			1.63			—			8.71
Year Ended June 30, 2009		9.30		(0.03	)(e)		(2.19	)(f)		(2.22	)		—			7.08
Year Ended June 30, 2008		12.37		(0.04	)(e)		(1.33	)		(1.37	)		(1.70	)		9.30
Year Ended June 30, 2007		12.21		(0.05	)(e)		2.00			1.95			(1.79	)		12.37
Year Ended June 30, 2006		12.77		(0.07	)		2.09			2.02			(2.58	)		12.21
Year Ended June 30, 2005		11.91		(0.06	)		0.98			0.92			(0.06	)		12.77

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Calculated based upon average shares outstanding.

(f)   An affiliate of JPMorgan Chase & Co. reimbursed the Fund for losses incurred from an operational error. There was no impact to the total return and the net realized and unrealized gains (losses) on investments per share.

(g)   Includes a gain resulting from a payment by affiliate. The effect is less than 0.01% on total return.

(h)   Commencement of offering of class of shares.

SEE NOTES TO FINANCIAL STATEMENTS.

70   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

Ratios/Supplemental data
					Ratios to average net assets (a)
Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
	22.79	%	$	137,546		1.25	%		(0.87	)%		1.48	%		39	%
	(23.94	) (f)		107,591		1.25			(0.55	)		1.58			83
	(12.93	) (g)		120,723		1.25			(0.56	)		1.39			71
	16.90			108,013		1.25			(0.65	)		1.36			86
	16.96			90,963		1.25			(0.82	)		1.39			97
	7.40			82,281		1.24			(0.78	)		1.36			129
	22.57			8,002		1.85			(1.47	)		1.98			39
	(24.60	) (f)		7,967		1.85			(1.15	)		2.06			83
	(13.48	) (g)		13,420		1.85			(1.18	)		1.89			71
	16.26			20,719		1.84			(1.25	)		1.86			86
	16.25			24,434		1.85			(1.43	)		1.89			97
	6.62			28,918		1.94			(1.48	)		1.96			129
	22.47			19,217		1.84			(1.47	)		1.98			39
	(24.49	) (f)		14,396		1.85			(1.15	)		2.07			83
	(13.49	) (g)		18,615		1.85			(1.17	)		1.89			71
	16.25			20,280		1.84			(1.24	)		1.86			86
	16.31			16,589		1.85			(1.42	)		1.89			97
	6.65			12,794		1.93			(1.47	)		1.95			129
	22.68			531		1.49			(1.13	)		1.72			39
	8.12			54		1.50			(0.72	)		1.93			83
	23.14			161,524		0.85			(0.47	)		1.07			39
	(23.82	) (f)		102,695		0.85			(0.15	)		1.19			83
	(12.53	) (g)		91,439		0.85			(0.15	)		0.99			71
	17.39			66,811		0.85			(0.25	)		0.96			86
	17.42			62,362		0.85			(0.42	)		0.99			97
	1.59			56,395		0.85			(0.37	)		1.07			129
	23.02			98,318		1.00			(0.62	)		1.23			39
	(23.87	) (f)		87,612		1.00			(0.31	)		1.30			83
	(12.74	) (g)		201,462		1.00			(0.34	)		1.13			71
	17.25			373,174		1.00			(0.40	)		1.11			86
	17.25			382,257		1.00			(0.58	)		1.14			97
	7.62			460,265		0.99			(0.53	)		1.04			129

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   71

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)

	Per share operating performance
			Investment operations									Distributions
	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Net investment income			Net realized gain			Total distributions
Small Cap Value Fund
Class A
Six Months Ended December 31, 2009 (Unaudited)	$	11.46	$	0.05	(e)	$	3.10		$	3.15		$	(0.03	)	$	—		$	(0.03	)
Year Ended June 30, 2009		17.45		0.18	(e)		(4.93	)(f)		(4.75	)		(0.21	)		(1.03	)		(1.24	)
Year Ended June 30, 2008		24.56		0.17	(e)		(4.61	)		(4.44	)		(0.16	)		(2.51	)		(2.67	)
Year Ended June 30, 2007		23.89		0.11	(e)		3.70			3.81			(0.14	)		(3.00	)		(3.14	)
Year Ended June 30, 2006		25.00		0.11	(e)		3.11			3.22			(0.13	)		(4.20	)		(4.33	)
Year Ended June 30, 2005		24.38		0.13			2.78			2.91			(0.11	)		(2.18	)		(2.29	)
Class B
Six Months Ended December 31, 2009 (Unaudited)		10.17		0.01	(e)		2.75			2.76			—	(h)		—			—	(h)
Year Ended June 30, 2009		15.72		0.09	(e)		(4.45	)(f)		(4.36	)		(0.16	)		(1.03	)		(1.19	)
Year Ended June 30, 2008		22.47		0.03	(e)		(4.18	)		(4.15	)		(0.09	)		(2.51	)		(2.60	)
Year Ended June 30, 2007		22.13		(0.03	)(e)		3.40			3.37			(0.03	)		(3.00	)		(3.03	)
Year Ended June 30, 2006		23.49		(0.04	)(e)		2.90			2.86			(0.02	)		(4.20	)		(4.22	)
Year Ended June 30, 2005		23.11		(0.09	)		2.68			2.59			(0.03	)		(2.18	)		(2.21	)
Class C
Six Months Ended December 31, 2009 (Unaudited)		10.10		0.01	(e)		2.72			2.73			—	(h)		—			—	(h)
Year Ended June 30, 2009		15.61		0.09	(e)		(4.41	)(f)		(4.32	)		(0.16	)		(1.03	)		(1.19	)
Year Ended June 30, 2008		22.34		0.03	(e)		(4.16	)		(4.13	)		(0.09	)		(2.51	)		(2.60	)
Year Ended June 30, 2007		22.02		(0.03	)(e)		3.39			3.36			(0.04	)		(3.00	)		(3.04	)
Year Ended June 30, 2006		23.39		(0.04	)(e)		2.89			2.85			(0.02	)		(4.20	)		(4.22	)
Year Ended June 30, 2005		23.02		(0.08	)		2.66			2.58			(0.03	)		(2.18	)		(2.21	)
Class R2
Six Months Ended December 31, 2009 (Unaudited)		11.45		0.06	(e)		3.07			3.13			(0.02	)		—			(0.02	)
November 3, 2008 (i) through June 30, 2009		13.84		0.10	(e)		(1.29	)		(1.19	)		(0.17	)		(1.03	)		(1.20	)
Class R5
Six Months Ended December 31, 2009 (Unaudited)		11.94		0.09	(e)		3.21			3.30			(0.05	)		—			(0.05	)
Year Ended June 30, 2009		18.08		0.22	(e)		(5.09	)(f)		(4.87	)		(0.24	)		(1.03	)		(1.27	)
Year Ended June 30, 2008		25.32		0.24	(e)		(4.75	)		(4.51	)		(0.22	)		(2.51	)		(2.73	)
Year Ended June 30, 2007		24.54		0.20	(e)		3.80			4.00			(0.22	)		(3.00	)		(3.22	)
May 15, 2006 (i) through June 30, 2006		24.98		0.08	(e)		(0.46	)		(0.38	)		(0.06	)		—			(0.06	)
Select Class
Six Months Ended December 31, 2009 (Unaudited)		11.94		0.07	(e)		3.23			3.30			(0.04	)		—			(0.04	)
Year Ended June 30, 2009		18.09		0.22	(e)		(5.11	)(f)		(4.89	)		(0.23	)		(1.03	)		(1.26	)
Year Ended June 30, 2008		25.33		0.22	(e)		(4.75	)		(4.53	)		(0.20	)		(2.51	)		(2.71	)
Year Ended June 30, 2007		24.55		0.18	(e)		3.79			3.97			(0.19	)		(3.00	)		(3.19	)
Year Ended June 30, 2006		25.57		0.17	(e)		3.20			3.37			(0.19	)		(4.20	)		(4.39	)
Year Ended June 30, 2005		24.87		0.21			2.83			3.04			(0.16	)		(2.18	)		(2.34	)
Ultra
Six Months Ended December 31, 2009 (Unaudited)		11.95		0.09	(e)		3.21			3.30			(0.05	)		—			(0.05	)
Year Ended June 30, 2009		18.09		0.24	(e)		(5.11	)(f)		(4.87	)		(0.24	)		(1.03	)		(1.27	)
Year Ended June 30, 2008		25.34		0.25	(e)		(4.76	)		(4.51	)		(0.23	)		(2.51	)		(2.74	)
Year Ended June 30, 2007		24.55		0.21	(e)		3.81			4.02			(0.23	)		(3.00	)		(3.23	)
Year Ended June 30, 2006		25.57		0.21	(e)		3.19			3.40			(0.22	)		(4.20	)		(4.42	)
February 22, 2005 (i) through June 30, 2005		24.63		0.12			0.92			1.04			(0.10	)		—			(0.10	)

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Calculated based upon average shares outstanding.

(f)   An affiliate of JPMorgan Chase & Co. reimbursed the Fund for losses incurred from an operational error. There was no impact to the total return and the net realized and unrealized gains (losses) on investments per share.

(g)   Includes a gain resulting from a payment by affiliate. The effect is less than 0.01% on total return.

(h)   Amount rounds to less than $0.01.

(i)   Commencement of offering of class of shares.

SEE NOTES TO FINANCIAL STATEMENTS.

72   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Ratios/Supplemental data
						Ratios to average net assets (a)
Net asset value, end of period	Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
$14.58		27.49	%	$	145,046		1.25	%		0.82	%		1.51	%		23	%
11.46		(26.91	) (f)		108,414		1.25			1.42			1.55			33
17.45		(18.44	) (g)		155,745		1.25			0.82			1.41			35
24.56		16.73			208,767		1.24			0.47			1.35			38
23.89		14.07			164,506		1.25			0.43			1.36			45
25.00		12.20			149,283		1.25			0.53			1.37			57
12.93		27.17			11,216		1.85			0.18			2.01			23
10.17		(27.42	) (f)		10,614		1.86			0.79			2.04			33
15.72		(18.93	) (g)		19,488		1.87			0.18			1.91			35
22.47		16.02			33,326		1.84			(0.14	)		1.85			38
22.13		13.36			34,158		1.85			(0.18	)		1.86			45
23.49		11.42			34,648		1.94			(0.17	)		1.96			57
12.83		27.07			22,563		1.85			0.21			2.01			23
10.10		(27.34	) (f)		17,402		1.86			0.79			2.04			33
15.61		(18.95	) (g)		30,533		1.87			0.18			1.91			35
22.34		16.03			53,186		1.84			(0.13	)		1.85			38
22.02		13.38			47,012		1.85			(0.18	)		1.86			45
23.39		11.42			44,749		1.92			(0.17	)		1.95			57
14.56		27.34			191		1.49			0.83			1.76			23
11.45		(8.17	)		59		1.50			1.34			1.91			33
15.19		27.67			36,639		0.91			1.21			1.06			23
11.94		(26.63	) (f)		13,342		0.91			1.74			1.14			33
18.08		(18.17	) (g)		10,077		0.91			1.17			0.96			35
25.32		17.10			11,270		0.89			0.81			0.91			38
24.54		(1.51	)		3,087		0.91			2.71			0.91			45
15.20		27.68			186,039		1.00			1.04			1.26			23
11.94		(26.72	) (f)		201,486		1.00			1.64			1.30			33
18.09		(18.24	) (g)		350,596		1.00			1.05			1.16			35
25.33		16.98			592,724		0.99			0.71			1.10			38
24.55		14.37			587,203		1.00			0.68			1.11			45
25.57		12.50			611,925		0.98			0.75			1.02			57
15.20		27.67			37,353		0.86			1.25			1.01			23
11.95		(26.59	) (f)		18,137		0.86			1.80			1.05			33
18.09		(18.16	) (g)		28,433		0.86			1.21			0.91			35
25.34		17.19			59,684		0.84			0.86			0.85			38
24.55		14.52			58,933		0.85			0.83			0.85			45
25.57		4.21			33,520		0.82			1.30			0.86			57

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   73

FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)

	Per share operating performance
			Investment operations									Distributions
	Net asset value, beginning of period		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Net investment income			Net realized gain			Total distributions
U.S. Small Company Fund
Class A
Six Months Ended December 31, 2009 (Unaudited)	$	6.17	$	—	(e)(k)	$	1.68(k)		$	1.68		$	(0.07	)	$	—		$	(0.07	)
Year Ended June 30, 2009		8.37		0.05	(f)		(2.17	)(g)		(2.12	)		(0.02	)		(0.06	)		(0.08	)
November 1, 2007 (h) through June 30, 2008		9.73		0.03	(f)		(1.14	)		(1.11	)		(0.08	)		(0.17	)		(0.25	)
Class C
Six Months Ended December 31, 2009 (Unaudited)		6.14		—	(e)(k)		1.66	(k)		1.66			(0.08	)		—			(0.08	)
Year Ended June 30, 2009		8.34		0.02	(f)		(2.16	)(g)		(2.14	)		—	(e)		(0.06	)		(0.06	)
November 1, 2007 (h) through June 30, 2008		9.73		—	(e)(f)		(1.14	)		(1.14	)		(0.08	)		(0.17	)		(0.25	)
Institutional Class
Six Months Ended December 31, 2009 (Unaudited)		6.20		0.02	(k)		1.68	(k)		1.70			(0.08	)		—			(0.08	)
Year Ended June 30, 2009		8.39		0.07	(f)		(2.16	)(g)		(2.09	)		(0.04	)		(0.06	)		(0.10	)
Year Ended June 30, 2008		14.02		0.08	(f)		(2.32	)		(2.24	)		(0.09	)		(3.30	)		(3.39	)
Year Ended June 30, 2007		13.90		0.07	(f)		2.01			2.08			(0.09	)		(1.87	)		(1.96	)
January 1, 2006 through June 30, 2006 (j)		12.93		0.01			0.96			0.97			—			—			—
Year Ended December 31, 2005		13.77		0.05	(f)		0.56			0.61			(0.03	)		(1.42	)		(1.45	)
Year Ended December 31, 2004		13.88		—	(e)(f)		1.89			1.89			—			(2.00	)		(2.00	)
Select Class
Six Months Ended December 31, 2009 (Unaudited)		6.22		0.01	(k)		1.69	(k)		1.70			(0.08	)		—			(0.08	)
Year Ended June 30, 2009		8.40		0.07	(f)		(2.17	)(g)		(2.10	)		(0.02	)		(0.06	)		(0.08	)
Year Ended June 30, 2008		14.03		0.06	(f)		(2.33	)		(2.27	)		(0.06	)		(3.30	)		(3.36	)
Year Ended June 30, 2007		13.89		0.04	(f)		2.02			2.06			(0.05	)		(1.87	)		(1.92	)
January 1, 2006 through June 30, 2006 (j)		12.94		0.01			0.94			0.95			—			—			—
Year Ended December 31, 2005		13.78		0.02	(f)		0.57			0.59			(0.01	)		(1.42	)		(1.43	)
Year Ended December 31, 2004		13.90		(0.03	)(f)		1.91			1.88			—			(2.00	)		(2.00	)

 

(a)   Annualized for periods less than one year.

(b)   Not annualized for periods less than one year.

(c)   Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions.

(d)   Includes earnings credits and interest expense, each of which is less than 0.01%, if applicable or unless otherwise noted.

(e)   Amount rounds to less than $0.01.

(f)   Calculated based upon average shares outstanding.

(g)   Includes gains resulting from litigation payments on securities owned in a prior year. Without these gains, the net realized and unrealized gains (losses) on investments per share would have been $(2.24), $(2.23), $(2.24) and $(2.25), and the total returns would have been (26.15)%, (26.47)%, (25.81)% and (25.88)%, for Class A, Class C, Institutional Class and Select Class Shares, respectively.

(h)   Commencement of offering of class of shares.

(i)   Includes interest expense of 0.01%.

(j)   The Fund changed its fiscal year end from December 31 to June 30.

(k)   Includes gains resulting from litigation payments on securities owned in a prior year. Without these gains, the net realized and unrealized gains (losses) on investments per share would have been $1.66, $1.64, $1.66 and $1.67 and the total returns would have been 26.99%, 26.65%, 27.13% and 26.96% for Class A, Class C, Institutional Class and Select Class Shares, respectively. The impact on the net investment income (loss) per share and the net investment income (loss) ratio was less than $0.01 and 0.01, respectively for Class A, Class C, Institutional Class and Select Class Shares.

SEE NOTES TO FINANCIAL STATEMENTS.

74   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Ratios/Supplemental data
						Ratios to average net assets (a)
Net asset value, end of period	Total return (excludes sales charge) (b)(c)			Net assets, end of period (000’s)		Net expenses (d)			Net investment income (loss)			Expenses without waivers, reimbursements and earning credits			Portfolio turnover rate (b)
$7.78		27.31	%(k)	$	412		1.26	%		0.07	%		1.77	%		24	%
6.17		(25.30	) (g)		240		1.26			0.75			1.70			52
8.37		(11.51	)		149		1.26			0.56			1.62			130
7.72		26.98	(k)		240		1.76			(0.41	)		2.27			24
6.14		(25.62	) (g)		94		1.76			0.27			2.20			52
8.34		(11.82	)		45		1.75			0.03			2.18			130
7.82		27.46	(k)		11,429		0.83			0.49			1.37			24
6.20		(24.84	) (g)		9,086		0.83			1.17			1.30			52
8.39		(19.41	)		15,035		0.84	(i)		0.78			1.18			130
14.02		16.06			40,769		0.83			0.49			0.99			46
13.90		7.50			54,551		0.83			0.37			1.02			22
12.93		4.34			46,690		0.83			0.39			0.98			32
13.77		13.82			92,000		0.83			—			0.97			129
7.84		27.28	(k)		24,724		1.01			0.31			1.52			24
6.22		(24.92	) (g)		20,698		1.01			1.00			1.44			52
8.40		(19.62	)		34,092		1.02	(i)		0.59			1.33			130
14.03		15.87			81,115		1.01			0.31			1.14			46
13.89		7.34			95,318		1.01			0.18			1.17			22
12.94		4.18			102,003		1.01			0.18			1.14			32
13.78		13.73			119,000		1.01			(0.18	)		1.15			129

 

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   75

NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

1. Organization

JPMorgan Trust I (“JPM I”) and JPMorgan Trust II (“JPM II”) (the “Trusts”) were each formed on November 12, 2004, as a Delaware statutory trust, pursuant to a Declaration of Trust dated November 5, 2004 and each is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are 6 separate funds of the Trusts (collectively, the “Funds”) covered by this report:

	Class Offered	Trust	Diversified/Non-Diversified
Dynamic Small Cap Growth Fund	Class A, Class B, Class C and Select Class	JPM I	Diversified
Small Cap Core Fund	Select Class	JPM I	Diversified
Small Cap Equity Fund	Class A, Class B, Class C, Class R2, Class R5 and Select Class	JPM I	Diversified
Small Cap Growth Fund	Class A, Class B, Class C, Class R2, Institutional Class and Select Class	JPM II	Diversified
Small Cap Value Fund	Class A, Class B, Class C, Class R2, Class R5, Select Class and Ultra	JPM II	Diversified
U.S. Small Company Fund	Class A, Class C, Institutional Class and Select Class	JPM I	Diversified

 

All share classes of the Small Cap Equity Fund are publicly offered only on a limited basis. Investors are not eligible to purchase shares of the Fund unless they meet certain requirements as described in their prospectuses.

Effective November 1, 2009, Class B Shares of the Dynamic Small Cap Growth Fund, Small Cap Equity Fund, Small Cap Growth Fund and Small Cap Value Fund may not be purchased or acquired by new or existing shareholders, except through exchanges from Class B Shares of another J.P. Morgan Fund and dividend reinvestments. Shareholders who have invested in Class B Shares prior to November 1, 2009 may continue to hold their Class B Shares until they convert automatically to Class A Shares.

Class A Shares generally provide for a front-end sales charge while Class B and Class C Shares provide for a contingent deferred sales charge (“CDSC”). Class B Shares automatically convert to Class A Shares after eight years. No sales charges are assessed with respect to the Class R2, Class R5, Institutional Class, Select Class and Ultra Shares. All classes of shares have equal rights as to earnings, assets and voting privileges except that each class may bear different distribution and shareholder servicing fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements. Certain Class A Shares, for which front-end sales charges have been waived, may be subject to a CDSC as described in the Funds’ prospectus.

2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Trusts in preparation of their financial statements. The policies are in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

A.  Valuation of Investments — Equity securities listed on a North American, Central American, South American or Caribbean securities exchange shall generally be valued at the last sale price on the exchange on which the security is principally traded that is reported before the time when the net assets of the Funds are valued. The value of securities listed on The NASDAQ Stock Market LLC shall generally be the NASDAQ Official Closing Price. Fixed income securities (other than certain short-term investments maturing in less than 61 days) are valued each day based on readily available market quotations received from third party broker-dealers of comparable securities or independent or affiliated pricing services approved by the Board of Trustees. Such pricing services and broker-dealers will generally provide bid-side quotations. Generally, short-term investments (other than certain high yield securities) maturing in less than 61 days are valued at amortized cost, which approximates market value. Certain investments of the Funds may, depending upon market conditions, trade in relatively thin markets and/or in markets that experience significant volatility. As a result of these conditions, the prices used by the Funds to value securities may differ from the value that would be realized if these securities were sold and the differences could be material. Futures and options shall generally be valued on the basis of available market quotations. Swaps and other derivatives are valued daily primarily using independent or affiliated pricing services approved by the Board of Trustees. If valuations are not available from such services or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or counterparty. Investments in other open-end investment companies are valued at such investment company’s current day closing net asset value per share.

Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing (including certain illiquid securities) are fair valued in accordance with procedures established by and under the supervision and responsibility of the Board of Trustees. It is possible that the estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and such differences could have been material. Trading in securities on most foreign exchanges and over-the-counter markets is normally completed before the close of the domestic market and may also take place on days when the domestic market is closed. In accordance with procedures adopted by the Board of Trustees, the Funds apply fair value pricing on equity securities on a daily basis except for North American, Central American, South American and Caribbean equity securities held in their portfolios by utilizing the quotations of an independent pricing service, unless a Fund’s advisor determines that use of another valuation methodology is appropriate. The pricing service

76   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

uses statistical analyses and quantitative models to adjust local market prices using factors such as subsequent movement and changes in the prices of indices, securities and exchange rates in other markets, in determining fair value as of the time a Fund calculates its net asset value.

Valuations reflected in this report are as of the report date. As a result, changes in valuation due to significant market events and/or issuer related events after the report date and prior to issuance of the report are not reflected herein.

The various inputs that are used in determining the fair value of the Funds’ investments are summarized into the three broad levels listed below.

•  Level 1 — quoted prices in active markets for identical securities

•  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table represents each valuation input by sector as presented on the Schedules of Portfolio Investments (amounts in thousands):

Dynamic Small Cap Growth Fund #	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	249,781	$	—	$	—	$	249,781

 

Small Cap Core Fund ##	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	470,236	$	1,007	$	—	$	471,243
Appreciation in Other Financial Instruments
Futures Contracts	$	572	$	—	$	—	$	572

 

Small Cap Equity Fund #	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	1,713,392	$	—	$	—	$	1,713,392

 

Small Cap Growth Fund ###	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	471,317	$	6,939	$	—	$	478,256

 

Small Cap Value Fund ####	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	465,405	$	11,613	$	—	$	477,018
Appreciation in Other Financial Instruments
Futures Contracts	$	279	$	—	$	—	$	279

 

U.S. Small Company Fund ##	Level 1 Quoted prices		Level 2 Other significant observable inputs		Level 3 Significant unobservable inputs		Total
Investments in Securities	$	46,134	$	111	$	—	$	46,245
Appreciation in Other Financial Instruments
Futures Contracts	$	43	$	—	$	—	$	43

 

# All portfolio holdings designated as Level 1 are disclosed individually in the Schedule of Portfolio Investments (“SOI”). Please refer to the SOI for industry specifics of the portfolio holdings.

## Portfolio holdings designated as Level 1 and Level 2 are disclosed individually in the SOI. Level 2 consists of a U.S. Treasury Note that is held for futures collateral. Please refer to the SOI for industry specifics of the portfolio holdings.

### Portfolio holdings designated as Level 1 and Level 2 are disclosed individually in the SOI. Level 2 consists of corporate notes that are held as investments of cash collateral for securities on loan. Please refer to the SOI for industry specifics of the portfolio holdings.

#### Portfolio holdings designated as Level 1 and Level 2 are disclosed individually in the SOI. Level 2 consists of a Right, U.S. Treasury Note that is held for futures collateral and corporate notes that are held as investments of cash collateral for securities on loan. Please refer to the SOI for industry specifics of the portfolio holdings.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   77

NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

B.  Futures Contracts — The Funds use index futures contracts to gain or reduce exposure to the stock market, enhance returns, maintain liquidity and minimize transaction costs. The Funds buy futures contracts to immediately invest incoming cash in the market or sell futures in response to cash outflows, thereby simulating an invested position in the underlying index while maintaining a cash balance for liquidity.

Futures contracts provide for the delayed delivery of securities at a fixed price at some future date or for the change in the value of a specified security or financial index over a predetermined time period. Upon entering into a futures contract, the Funds are required to deposit with the broker cash or securities in an amount equal to a certain percentage of the contract amount. This is known as the initial margin deposit. Subsequent payments, referred to as variation margin, are made or received by the Funds periodically and are based on changes in the market value of open futures contracts. Changes in the market value of open futures contracts are recorded as unrealized appreciation or depreciation in the Statements of Operations. Realized gains or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported in the Statements of Operations at the closing or expiration of futures contracts. Securities deposited as initial margin are designated in the Schedules of Portfolio Investments and cash deposited is recorded on the Statements of Assets and Liabilities. Receivable and/or payable to brokers for the daily variation margin is also recorded on the Statements of Assets and Liabilities.

The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying index. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, future exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

Futures contracts notional amounts and values as of December 31, 2009 for Small Cap Core Fund, Small Cap Value Fund and U.S. Small Company Fund, which are disclosed in the accompanying Schedules of Portfolio Investments, are indicative of the volume of the Funds’ futures contracts activities over the reporting period.

C.  Securities Lending — Each Fund may lend securities to brokers, approved by its advisor, in order to generate additional income. Goldman Sachs Bank USA (“GS Bank”) serves as lending agent for Dynamic Small Cap Growth Fund and U.S. Small Company Fund. J.P. Morgan Chase Bank, N.A. (“JPMCB”) serves as lending agent for Small Cap Core Fund, Small Cap Equity Fund, Small Cap Growth Fund and Small Cap Value Fund. Securities loaned are collateralized by cash, which is invested in approved instruments (“collateral investments”), in accordance with investment guidelines. Upon termination of the loan, the Funds are required to return to the borrower the posted cash collateral. Loans are subject to termination by the Funds or the borrower at any time.

Securities lending income is comprised of income earned on cash collateral investments, net of a rebate received from or paid to borrowers for use of cash collateral and lending agent fees. This amount is recorded as Income from securities lending (net) on the Statements of Operations. The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as dividend or interest income, respectively, on the Statements of Operations.

For the six months ended December 31, 2009, the Funds earned the following amounts from the investment of cash collateral, prior to rebates or fees, from an investment in an affiliated fund as described below (amounts in thousands):

Dynamic Small Cap Growth Fund	$	47
Small Cap Core Fund		25
Small Cap Equity Fund		95
Small Cap Growth Fund		18
Small Cap Value Fund		11
U.S. Small Company Fund		9

 

Under the securities lending agreement with GS Bank, at the inception of a loan, securities are exchanged for cash collateral equal to at least 102% of the value of loaned U.S. securities plus accrued interest. The securities lending agreement with GS Bank requires that the loaned securities be marked to market on a daily basis and additional cash collateral is requested from borrowers when the cash received from borrowers becomes less than 102% of the value of loaned securities. Under the securities lending agreement with JPMCB, at the inception of a loan, securities are exchanged for cash collateral equal to at least 102% of the value of loaned U.S. securities plus accrued interest and 105% of the value of loaned non-U.S. securities, plus accrued interest. Although JPMCB has agreed to maintain collateral from borrowers equal to at least 102% and 105% of the value of loaned U.S. and international securities, respectively; due to market volatility coupled with provisions in the Securities Lending Agreement, collateral amounts may fall below these levels. The securities lending agreement with JPMCB requires that the loaned securities be marked to market on a daily basis and additional cash collateral is requested from borrowers when the cash received from borrowers becomes less than 100% of the value of loaned securities.

78   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of cash collateral investments are disclosed in the Schedules of Portfolio Investments. At December 31, 2009, the value of outstanding securities on loan and the value of collateral investments were as follows (amount in thousands):

	Value of Loaned Securities		Cash Collateral Posted by Borrower		Unrealized (Loss) on Cash Collateral Investments			Total Value of Collateral Investments
Dynamic Small Cap Growth Fund	$	58,911	$	61,142	$	—		$	61,142
Small Cap Core Fund		15,925		16,513		—			16,513
Small Cap Equity Fund		68,552		71,246		—			71,246
Small Cap Growth Fund		46,799		48,775		(61	)		48,714
Small Cap Value Fund		40,208		42,093		(96	)		41,997
U.S. Small Company Fund		9,065		9,469		—			9,469

 

The Funds bear the risk of loss associated with the investment of the cash collateral and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, a Fund may incur losses that exceed the amount it earned on lending the security. Upon termination of a loan, a Fund may use leverage (borrow money) to repay the borrower for cash collateral posted, when the advisors do not believe that it is prudent to sell the cash collateral investments to fund this liability.

Securities lending involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, GS Bank and JPMCB each have agreed to indemnify the Funds from losses resulting from a borrower failure to return a loaned security.

The Funds invest cash collateral amounts received from borrowers in the JPMorgan Prime Money Market Fund — Capital Shares. The Advisors of the Funds waived fees associated with the Funds’ investment in JPMorgan Prime Money Market Fund as follows (amounts in thousands).

Dynamic Small Cap Growth Fund	$	18
Small Cap Core Fund		6
Small Cap Equity Fund		23
Small Cap Growth Fund		5
Small Cap Value Fund		4
U.S. Small Company Fund		3

 

These amounts offset the administration fees and shareholder servicing fees incurred by JPMorgan Prime Money Market Fund related to the Funds’ investment in such fund. A portion of the waiver is voluntary.

JPMCB is entitled to lending agent fees, in accordance with the securities lending agreement, equal to 0.03% and 0.09% of the average dollar value of loans outstanding during the month of U.S. and non-U.S. securities, respectively.

The Funds incurred lending agent fees to JPMCB as follows for the six months ended December 31, 2009 (amounts in thousands):

Small Cap Core Fund	$	2
Small Cap Equity Fund		9
Small Cap Growth Fund		5
Small Cap Value Fund		7

 

D.  Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis. Interest income is determined on the basis of coupon interest accrued using the effective interest method adjusted for amortization of premiums and accretion of discounts. Dividend income less foreign taxes withheld, if any, is recorded on the ex-dividend date or when the Funds first learn of the dividend.

The Funds record distributions received in excess of income from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.

E.  Allocation of Income and Expenses — In calculating the net asset value per share of each class, investment income, realized and unrealized gains and losses and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Expenses directly attributable to a fund are charged directly to that fund while the expenses attributable

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   79

NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

to more than one fund of the Trusts are allocated among the respective funds. Each class of shares bears its pro-rata portion of expenses attributable to its Fund, except that each class separately bears expenses related specifically to that class, such as distribution and shareholder servicing fees.

F.  Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized gain on investments. Accordingly, no provision for Federal income tax is necessary. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, the Funds’ conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each of the Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

G.  Dividends and Distributions to Shareholders — Dividends from net investment income are declared and paid at least annually, except for Small Cap Value Fund, which are declared and paid quarterly. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in separate class expenses. Net realized capital gains, if any, are distributed at least annually. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax-basis treatment.

3. Fees and Other Transactions with Affiliates

A.  Investment Advisory Fee — Pursuant to separate Investment Advisory Agreements, J.P. Morgan Investment Management Inc. (“JPMIM”) acts as the investment advisor to the Dynamic Small Cap Growth Fund, Small Cap Core Fund, Small Cap Equity Fund and U.S. Small Company Fund and JPMorgan Investment Advisors Inc. (“JPMIA”, together with JPMIM each an “Advisor” and collectively the “Advisors”) acts as the investment advisor to the Small Cap Growth Fund and Small Cap Value Fund. JPMIM is a wholly-owned subsidiary of JPMorgan Asset Management Holdings Inc., which is a wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”). JPMIA is an indirect, wholly-owned subsidiary of JPMorgan. The Advisors supervise the investments of each respective Fund and for such services are paid a fee. The fee is accrued daily and paid monthly based on each Fund’s respective average daily net assets. The annual fee rate for each Fund is as follows:

Dynamic Small Cap Growth Fund	0.65	%
Small Cap Core Fund	0.65
Small Cap Equity Fund	0.65
Small Cap Growth Fund	0.65
Small Cap Value Fund	0.65
U.S. Small Company Fund	0.60

 

Effective January 1, 2010, the investment advisory business of JPMIA was transferred to JPMIM and JPMIM became the investment advisor for the Small Cap Growth Fund and Small Cap Value Fund, assuming all rights and responsibilities of JPMIA with respect to the Small Cap Growth Fund and Small Cap Value Fund. The appointment of JPMIM did not change the portfolio management team, investment strategies, investment advisory fees charged to the Small Cap Growth Fund and Small Cap Value Fund or the terms of the investment advisory agreement (other than the identity of the advisor).

The Advisors waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.

B.  Administration Fee — Pursuant to an Administration Agreement, JPMorgan Funds Management, Inc. (the “Administrator”), an indirect, wholly-owned subsidiary of JPMorgan, provides certain administration services to the Funds. In consideration of these services, the Administrator receives a fee computed daily and paid monthly at the annual rate of 0.15% of the first $25 billion of the average daily net assets of all funds in the J.P. Morgan Funds Complex (excluding funds of funds and money market funds) and 0.075% of the average daily net assets in excess of $25 billion of all such funds. For the six months ended December 31, 2009, the annualized effective rate was 0.10% of each Fund’s average daily net assets.

The Administrator waived Administration fees as outlined in Note 3.F.

J.P. Morgan Investor Services, Co. (“JPMIS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Funds’ Sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMIS receives a portion of the fees payable to the Administrator.

C.  Distribution Fees — Pursuant to a Distribution Agreement, JPMorgan Distribution Services, Inc. (“the Distributor”), a wholly-owned subsidiary of JPMorgan, serves as the Trusts’ exclusive underwriter and promotes and arranges for the sale of each Fund’s shares.

80   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

The Board of Trustees has adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class B, Class C and Class R2 Shares of the Funds in accordance with Rule 12b-1 under the 1940 Act. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to the Distributor, at annual rates of the average daily net assets as shown in the table below:

	Class A			Class B			Class C			Class R2
Dynamic Small Cap Growth Fund		0.25	%		0.75	%		0.75	%		n/a
Small Cap Equity Fund		0.25			0.75			0.75			0.50	%
Small Cap Growth Fund		0.25			0.75			0.75			0.50
Small Cap Value Fund		0.25			0.75			0.75			0.50
U.S. Small Company Fund		0.25			n/a			0.75			n/a

 

In addition, the Distributor is entitled to receive the front-end sales charges from purchases of Class A and the CDSC from redemptions of Class B and Class C Shares and certain Class A Shares for which front-end sales charges have been waived. For the six months ended December 31, 2009, the Distributor retained the following amounts (in thousands):

	Front-End Sales Charge			CDSC
Dynamic Small Cap Growth Fund	$	2		$	1
Small Cap Equity Fund		4			7
Small Cap Growth Fund		16			9
Small Cap Value Fund		36			8
U.S. Small Company Fund		—	(a)		—	(a)

 

(a)   Amount rounds to less than $1,000.

D.  Shareholder Servicing Fees — The Trusts, on behalf of the Funds, have entered into Shareholder Servicing Agreements with the Distributor under which the Distributor provides certain support services to the shareholders. The Ultra Shares do not participate in the Shareholder Servicing Agreement. For performing these services, the Distributor receives a fee that is computed daily and paid monthly equal to a percentage of the average daily net assets as shown in the table below:

	Class A			Class B			Class C			Class R2			Class R5			Institutional Class			Select Class
Dynamic Small Cap Growth Fund		0.25	%		0.25	%		0.25	%		n/a			n/a			n/a			0.25	%
Small Cap Core Fund		n/a			n/a			n/a			n/a			n/a			n/a			0.25
Small Cap Equity Fund		0.25			0.25			0.25			0.25	%		0.05	%		n/a			0.25
Small Cap Growth Fund		0.25			0.25			0.25			0.25			n/a			0.10	%		0.25
Small Cap Value Fund		0.25			0.25			0.25			0.25			0.05			n/a			0.25
U.S. Small Company Fund		0.25			n/a			0.25			n/a			n/a			0.10			0.25

 

The Distributor has entered into shareholder services contracts with affiliated and unaffiliated financial intermediaries who provide shareholder services and other related services to their clients or customers who invest in the Funds under which the Distributor will pay all or a portion of such fees earned to financial intermediaries for performing such services.

The Distributor waived Shareholder Servicing fees as outlined in Note 3.F.

E.  Custodian and Accounting Fees — JPMCB provides portfolio custody and accounting services for the Funds. The amounts paid directly to JPMCB by the Funds for custody and accounting services are included in Custodian and accounting fees in the Statements of Operations. The custodian fees may be reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits are presented separately in the Statements of Operations.

Interest expense, if any, paid to the custodian related to cash overdrafts is included in Interest expense to affiliates in the Statements of Operations.

F.  Waivers and Reimbursements — The Advisors, Administrator and Distributor have contractually agreed to waive fees and/or reimburse the Funds to the extent that total annual operating expenses (excluding acquired fund fees and expenses, dividend expense related to short sales, interest, taxes, extraordinary expenses and expenses related to the Board of Trustees’ deferred compensation plan) exceed the percentages of the Funds’ respective average daily net assets as shown in the table below:

	Class A			Class B			Class C			Class R2			Class R5			Institutional Class			Select Class			Ultra
Dynamic Small Cap Growth Fund		1.50	%		2.12	%		2.12	%		n/a			n/a			n/a			1.10	%		n/a
Small Cap Core Fund		n/a			n/a			n/a			n/a			n/a			n/a			1.00			n/a
Small Cap Equity Fund		1.38			2.12			2.12			1.63	%		0.80	%		n/a			1.00			n/a
Small Cap Growth Fund		1.25			1.87			1.87			1.50			n/a			0.85	%		1.00			n/a

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   81

NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

	Class A			Class B			Class C			Class R2			Class R5			Institutional Class			Select Class			Ultra
Small Cap Value Fund		1.25	%		2.00	%		2.00	%		1.50	%		0.91	%		n/a			1.00	%		0.86	%
U.S. Small Company Fund		1.26			n/a			1.76			n/a			n/a			0.83	%		1.01			n/a

 

The contractual expense limitation agreements were in effect for the six months ended December 31, 2009. The expense limitation percentages in the table above are in place until at least October 31, 2010.

For the six months ended December 31, 2009, the Funds’ service providers waived fees and/or reimbursed expenses for each of the Funds as follows (amounts in thousands). None of these parties expects the Funds to repay any such waived fees and reimbursed expenses in future years.

	Contractual Waivers
	Investment Advisory		Administration		Shareholder Servicing		Total
Dynamic Small Cap Growth Fund	$	237	$	27	$	90	$	354
Small Cap Core Fund		—		—		187		187
Small Cap Equity Fund		379		3		237		619
Small Cap Growth Fund		109		125		174		408
Small Cap Value Fund		246		50		182		478
U.S. Small Company Fund		73		4		14		91

 

	Voluntary Waivers
	Investment Advisory		Administration		Shareholder Servicing		Total
Dynamic Small Cap Growth Fund	$	1	$	5	$	—	$	6
Small Cap Core Fund		75		11		321		407
Small Cap Equity Fund		181		2		—		183
Small Cap Growth Fund		—		3		—		3
Small Cap Value Fund		18		4		—		22

 

Additionally, the Funds may invest in one or more money market funds advised by the Advisors or their affiliates. The Advisors, Administrator and Shareholder Servicing Agent waive fees in an amount sufficient to offset the respective fees each charges to the affiliated money market fund on the Funds’ investment in such affiliated money market fund. A portion of the waiver is voluntary.

The amounts of waivers resulting from investments in the money market funds for the six months ended December 31, 2009 were as follows (excluding the waiver disclosed in Note 2.C. regarding cash collateral for securities lending invested in the JPMorgan Prime Money Market Fund) (amounts in thousands):

Dynamic Small Cap Growth Fund	$	3
Small Cap Core Fund		6
Small Cap Equity Fund		52
Small Cap Growth Fund		6
Small Cap Value Fund		6
U.S. Small Company Fund		—	(a)

 

(a)   Amount rounds to less than $1,000.

G.  Other — Certain officers of the Trusts are affiliated with the Advisors, the Administrator and the Distributor. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.

The Board of Trustees appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. Each Fund, along with other affiliated funds, makes reimbursement payments, on a pro-rata basis, to the Administrator for a portion of the fees associated with Office of the Chief Compliance Officer. Such fees are included in Trustees’ and Chief Compliance Officer’s fees in the Statements of Operations.

The Trusts adopted a Trustee Deferred Compensation Plan (the “Plan”) which allows the independent Trustees to defer the receipt of all or portion of compensation related to performance of their duties as a Trustee. The deferred fees are invested in various J.P. Morgan Funds until distribution in accordance with the Plan.

During the six months ended December 31, 2009, certain Funds may have purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate are affiliated with the Advisors.

82   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

The Funds may use related party broker/dealers. For the six months ended December 31, 2009, the Funds did not incur any brokerage commissions with broker/dealers affiliated with the Advisors.

The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments subject to certain conditions.

4. Investment Transactions

During the six months ended December 31, 2009, purchases and sales of investments (excluding short-term investments) were as follows (amounts in thousands):

	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)		Purchases of U.S. Government		Sales of U.S. Government
Dynamic Small Cap Growth Fund	$	75,230	$	60,041	$	—	$	—
Small Cap Core Fund		118,688		90,115		909		1,505
Small Cap Equity Fund		481,934		186,998		—		—
Small Cap Growth Fund		167,887		140,775		—		—
Small Cap Value Fund		90,879		117,400		1,146		276
U.S. Small Company Fund		7,969		8,916		86		15

 

5. Federal Income Tax Matters

For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at December 31, 2009, were as follows (amounts in thousands):

	Aggregate Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Dynamic Small Cap Growth Fund	$	217,879	$	37,667	$	5,765	$	31,902
Small Cap Core Fund		453,133		76,094		57,984		18,110
Small Cap Equity Fund		1,551,674		283,623		121,905		161,718
Small Cap Growth Fund		407,480		88,900		18,124		70,776
Small Cap Value Fund		489,249		68,652		80,883		(12,231	)
U.S. Small Company Fund		43,265		6,865		3,885		2,980

 

6. Borrowings

The Funds rely upon an exemptive order (“Order”) permitting the establishment and operation of an Interfund Lending Facility (“Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. The Interfund Loan Rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPM II and may be relied upon by the Funds because they are investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).

In addition, the Trusts and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until November 16, 2010.

The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility at December 31, 2009. Average borrowings from the Facility for the six months ended December 31, 2009, were as follows (amounts in thousands):

	Average Loans		Average Number of Days Outstanding		Interest Earned
Small Cap Value Fund	$	14,740		1	$	— (a)

 

(a)   Amount rounds to less than $1,000.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   83

NOTES TO FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

Interest expense paid, if any, as a result of borrowings from another fund or from the unsecured, uncommitted credit facility is included in Interest expense to affiliates in the Statements of Operations.

7. Risks, Concentrations and Indemnifications

In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against each Fund that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

One or more affiliates of the Funds’ investment advisors have investment discretion with respect to their clients’ holdings in the Funds, which collectively represent a significant portion of the Funds’ assets for Small Cap Core Fund, Small Cap Growth Fund, Small Cap Value Fund and U.S. Small Company Fund. In addition, the J.P. Morgan Investor Funds, which are affiliated funds of funds, own, in the aggregate approximately 15.5%, of the net assets of Small Cap Value Fund. Significant shareholder transactions, if any, may impact the Funds’ performance.

8. Legal Matters

Prior to becoming an affiliate of JPMorgan, on June 29, 2004, Banc One Investment Advisors Corporation (“BOIA”) subsequently known as JPMorgan Investment Advisors Inc. (JPMIA), entered into agreements with the SEC and the New York Attorney General (“NYAG”) in resolution of investigations conducted by the SEC and the NYAG into market timing of certain mutual funds advised by BOIA which were series of One Group Mutual Funds, possible late trading of certain of the funds and related matters. JPMIA was investment advisor to certain of the Funds until January 1, 2010. Effective January 1, 2010, JPMIA transferred its investment advisory business to JPMIM and JPMIM became investment advisor to the Funds.

In its settlement with the SEC, BOIA consented to the entry of an order by the SEC (the “SEC Order”) instituting and settling administrative and cease and desist proceedings against it. Under the terms of the SEC Order and the NYAG settlement agreement, BOIA agreed to pay disgorgement of $10 million and a civil money penalty of $40 million for a total payment of $50 million, which has been distributed to certain current and former shareholders of certain funds. Pursuant to the settlement agreement with the NYAG, BOIA reduced its management fee for certain mutual funds which were series of One Group Mutual Funds (now known as JPM II) in the aggregate amount of approximately $8 million annually (based on assets under management as of June 30, 2004) over a five year period commencing September 27, 2004 through September 27, 2009.

In addition to the matters involving the SEC and NYAG, various lawsuits were filed by private plaintiffs in connection with these circumstances in various state and federal courts. These actions were transferred to the United States District Court for the District of Maryland for coordinated or consolidated pretrial proceedings by the orders of the Judicial Panel on Multidistrict Litigation, a federal judicial body that assists in the administration of such actions. The plaintiffs filed consolidated amended complaints, naming as defendants, among others, BOIA, Bank One Corporation and JPMorgan (the former and current corporate parent of BOIA), the Distributor, One Group Services Company (the former distributor of One Group Mutual Funds), certain officers of One Group Mutual Funds and BOIA, and certain current and former Trustees of One Group Mutual Funds. These complaints alleged, among other things, that various defendants (i) violated various antifraud and other provisions of federal securities laws, (ii) breached their fiduciary duties, (iii) unjustly enriched themselves, (iv) breached Fund-related contracts, and (v) conspired to commit unlawful acts.

As of June 14, 2006, all claims against One Group Mutual Funds and current and former trustees were dismissed by the United States District Court in Maryland. Certain claims against BOIA and its affiliates have also been dismissed, and a settlement in principle has been reached for the purpose of resolving all remaining claims in the litigation in Maryland. The settlement is subject to court approval.

The Funds will be reimbursed for all costs associated with these matters to ensure that they incur no expense as it relates to the matters described above. A portion of these reimbursements may be from related parties.

As noted above, the settlement agreement with the NYAG requires BOIA to establish reduced “net management fee rates” for certain Funds (“Reduced Rate Funds”). “Net Management Fee Rates” means the percentage fee rates specified in contracts between BOIA and its affiliates and the Reduced Rate Funds, less waivers and reimbursements by BOIA and its affiliates, in effect as of June 30, 2004. The settlement agreement requires that the reduced Net Management Fee Rates must result in a reduction of $8 million annually based upon assets under management as of June 30, 2004, for a total reduction over five years of $40 million from that which would have been paid by the Reduced Rate Funds on the Net Management Fee Rates as of June 30, 2004. To the extent that BOIA and its affiliates have agreed as part of the settlement with the NYAG to waive or reimburse expenses of a Fund in connection with the settlement with the NYAG, those reduced Net Management Fee Rates are referred to as “Reduced Rates.” The Reduced Rates were implemented on September 27, 2004 and remained in place through September 27, 2009. Thus, the Reduced Rates are no longer in effect.

9. Subsequent Event

Management has evaluated all subsequent transactions and events after the balance sheet date through February 22, 2010, the date on which these financial statements were issued and, except as already included in the notes to these financial statements, has determined that no additional items require disclosure.

84   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited)

Hypothetical $1,000 Investment

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees and (2) ongoing costs, including investment advisory, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, July 1, 2009, and continued to hold your shares at the end of the reporting period, December 31, 2009.

Actual Expenses

For each Class of each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

	Beginning Account Value, July 1, 2009		Ending Account Value, December 31, 2009		Expenses Paid During July 1, 2009 to December 31, 2009*		Annualized Expense Ratio
Dynamic Small Cap Growth Fund
Class A
Actual	$	1,000.00	$	1,174.90	$	8.17		1.49	%
Hypothetical		1,000.00		1,017.69		7.58		1.49
Class B
Actual		1,000.00		1,170.50		11.49		2.10
Hypothetical		1,000.00		1,014.62		10.66		2.10
Class C
Actual		1,000.00		1,170.90		11.44		2.09
Hypothetical		1,000.00		1,014.67		10.61		2.09
Select Class
Actual		1,000.00		1,176.80		5.98		1.09
Hypothetical		1,000.00		1,019.71		5.55		1.09
Small Cap Core Fund
Select Class
Actual		1,000.00		1,255.40		4.55		0.80
Hypothetical		1,000.00		1,021.17		4.08		0.80

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   85

SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)

Hypothetical $1,000 Investment

	Beginning Account Value, July 1, 2009		Ending Account Value, December 31, 2009		Expenses Paid During July 1, 2009 to December 31, 2009*		Annualized Expense Ratio
Small Cap Equity Fund
Class A
Actual	$	1,000.00	$	1,176.30	$	7.08		1.29	%
Hypothetical		1,000.00		1,018.70		6.56		1.29
Class B
Actual		1,000.00		1,173.00		9.80		1.79
Hypothetical		1,000.00		1,016.18		9.10		1.79
Class C
Actual		1,000.00		1,173.40		9.81		1.79
Hypothetical		1,000.00		1,016.18		9.10		1.79
Class R2
Actual		1,000.00		1,174.20		8.44		1.54
Hypothetical		1,000.00		1,017.44		7.83		1.54
Class R5
Actual		1,000.00		1,178.70		4.34		0.79
Hypothetical		1,000.00		1,021.22		4.02		0.79
Select Class
Actual		1,000.00		1,178.00		5.43		0.99
Hypothetical		1,000.00		1,020.21		5.04		0.99
Small Cap Growth Fund
Class A
Actual		1,000.00		1,227.90		7.02		1.25
Hypothetical		1,000.00		1,018.90		6.36		1.25
Class B
Actual		1,000.00		1,225.70		10.38		1.85
Hypothetical		1,000.00		1,015.88		9.40		1.85
Class C
Actual		1,000.00		1,224.70		10.32		1.84
Hypothetical		1,000.00		1,015.93		9.35		1.84
Class R2
Actual		1,000.00		1,226.80		8.36		1.49
Hypothetical		1,000.00		1,017.69		7.58		1.49
Institutional Class
Actual		1,000.00		1,231.40		4.78		0.85
Hypothetical		1,000.00		1,020.92		4.33		0.85
Select Class
Actual		1,000.00		1,230.20		5.62		1.00
Hypothetical		1,000.00		1,020.16		5.09		1.00

86   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

	Beginning Account Value, July 1, 2009		Ending Account Value, December 31, 2009		Expenses Paid During July 1, 2009 to December 31, 2009*		Annualized Expense Ratio
Small Cap Value Fund
Class A
Actual	$	1,000.00	$	1,274.90	$	7.17		1.25	%
Hypothetical		1,000.00		1,018.90		6.36		1.25
Class B
Actual		1,000.00		1,271.70		10.59		1.85
Hypothetical		1,000.00		1,015.88		9.40		1.85
Class C
Actual		1,000.00		1,270.70		10.59		1.85
Hypothetical		1,000.00		1,015.88		9.40		1.85
Class R2
Actual		1,000.00		1,273.40		8.54		1.49
Hypothetical		1,000.00		1,017.69		7.58		1.49
Class R5
Actual		1,000.00		1,276.70		5.22		0.91
Hypothetical		1,000.00		1,020.62		4.63		0.91
Select Class
Actual		1,000.00		1,276.80		5.74		1.00
Hypothetical		1,000.00		1,020.16		5.09		1.00
Ultra
Actual		1,000.00		1,276.70		4.94		0.86
Hypothetical		1,000.00		1,020.87		4.38		0.86
U.S. Small Company Fund
Class A
Actual		1,000.00		1,273.10		7.22		1.26
Hypothetical		1,000.00		1,018.85		6.41		1.26
Class C
Actual		1,000.00		1,269.80		10.07		1.76
Hypothetical		1,000.00		1,016.33		8.94		1.76
Institutional Class
Actual		1,000.00		1,274.60		4.76		0.83
Hypothetical		1,000.00		1,021.02		4.23		0.83
Select Class
Actual		1,000.00		1,272.80		5.79		1.01
Hypothetical		1,000.00		1,020.11		5.14		1.01

 

*   Expenses are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   87

BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited)

The Board of Trustees held meetings in person in June and August 2009, at which the Trustees considered the continuation of each of the investment advisory agreements for the Funds whose semi-annual report is contained herein (each an “Advisory Agreement” and collectively, the “Advisory Agreements”). At the June meeting, the Board’s investment subcommittees (money market and alternative products, equity, and fixed income) met to review and consider performance and expense information for the J.P. Morgan Funds. Each investment subcommittee reported to the full Board, which then considered the investment subcommittee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not “interested persons” (as defined in the 1940 Act) of any party to the Advisory Agreements or any of their affiliates, approved the continuation of each Advisory Agreement on August 19, 2009.

The Trustees, as part of their review of the investment advisory arrangements for the Funds, receive from the Advisor and review on a regular basis over the course of the year, information regarding the performance of the Funds. This information includes the Funds’ performance against the Funds’ peers and benchmarks and analyses by the Advisor of the Funds’ performance. In addition, the Trustees have engaged an independent consultant to similarly review the performance of each of the Funds, at each of the Trustees’ regular meetings. The Advisor also periodically provides comparative information regarding the Funds’ expense ratios and those of the peer groups. In addition, in preparation for the June and August meetings, the Trustees requested and evaluated extensive materials from the Advisor, including, with respect to certain Funds, performance and expense information compiled by Lipper Inc. (“Lipper”), an independent provider of investment company data. The Trustees also engaged an independent consultant to provide a special analysis of the performance of Funds with greater than two years of performance history in connection with the review of the investment advisory arrangements. Prior to voting, the Trustees reviewed the proposed approval of the Advisory Agreement with representatives of the Advisor and with counsels to the Trust and independent Trustees and received a memorandum from independent counsel to the Trustees discussing the legal standards for their consideration of the proposed approval. The Trustees also discussed the proposed approval in private sessions with counsels to the Trust and independent Trustees at which no representatives of the Advisor were present. Set forth below is a summary of the material factors evaluated by the Trustees in determining to approve each Advisory Agreement.

In their deliberations, each Trustee attributed different weights to the various factors, and no factor alone was considered determinative. The Trustees determined that the overall arrangement between the Funds and the applicable Advisor, as provided in each Advisory Agreement, was fair and reasonable and that the continuance of the investment advisory contract was in the best interests of each Fund and its shareholders.

The matters discussed below were considered and discussed by the Trustees in reaching their conclusions:

Nature, Extent and Quality of Services Provided by the Advisor

The Trustees received and considered information regarding the nature, extent and quality of the services provided to each Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee Meetings, as well as the materials furnished specifically in connection with this annual review process. The Trustees considered the background and experience of the Advisor’s senior management and expertise of, and the amount of attention given to each Fund by, investment personnel of the Advisor. In addition, the Trustees reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-today management of each Fund and the infrastructure supporting the team. The quality of the administrative services provided by JPMorgan Funds Management, Inc. (“JPMFM”), an affiliate of the Advisor, was also considered. The Board of Trustees also considered its knowledge of the nature and quality of the services provided by the Advisor to the Funds gained from their experience as Trustees of the Funds. In addition, they considered the overall reputation and capabilities of the Advisor and its affiliates, the commitment of the Advisor to provide high quality service to the Funds, their overall confidence in the Advisor’s integrity and the Advisor’s responsiveness to concerns raised by them, including the Advisor’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.

Based on these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the investment advisory services provided to the Funds by the Advisor.

Costs of Services Provided and Profitability to the Advisor

At the request of the Trustees, the Advisor provided information regarding the profitability to the Advisor and its affiliates in providing services to each of the Funds. The Trustees reviewed and discussed this data. The Trustees recognized that this data is not audited and represents the Advisor’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Advisor. The

88   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular advisor, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based on their review, the Trustees concluded that the profitability to the Advisor of each of the Advisory Agreements was not unreasonable in light of the services and benefits provided to each Fund.

Fall-Out Benefits

The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. The Board considered that the Advisor does not currently use third-party soft dollar arrangements with respect to securities transactions it executes for certain of the J.P. Morgan Funds.

The Trustees also considered that JPMFM and JPMorgan Distribution Services, Inc. (“JPMDS”), affiliates of the Advisor, earn fees from the Funds for providing administrative and shareholder services. These fees were shown separately in the profitability analysis presented to the Trustees. The Trustees also considered the payments of Rule 12b-1 fees to JPMDS, which also acts as the Funds’ distributor and that these fees are in turn generally paid to financial intermediaries that sell the Funds, including financial intermediaries that are affiliates of the Advisor. The Trustees also considered the fees paid to JPMorgan Chase Bank, NA for custody and fund accounting, securities lending, and other related services.

Economies of Scale

The Trustees noted that the proposed investment advisory fee schedule for each Fund does not contain breakpoints. The Trustees considered whether it would be appropriate to add advisory fee breakpoints and the Trustees concluded that the current fee structure was reasonable in light of the fee waivers and expense limitations that the Advisor has in place that serve to limit the overall net expense ratio at competitive levels. The Trustees also recognized that the fee schedule for the administrative services provided by JPMFM does include a fee breakpoint, which is tied to the overall level of money market assets or non-money market fund assets excluding funds-of-funds, as applicable, advised by the Advisor, and that the Funds would benefit from that breakpoint. The Trustees concluded that shareholders benefited from the lower expense ratios which resulted from these factors.

Independent Written Evaluation of the Funds’ Senior Officer/Chief Compliance Officer

The Trustees noted that, upon their direction, the Senior Officer for the Small Cap Growth Fund and Small Cap Value Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees. The Trustees considered the written evaluation in determining whether to continue the Advisory Agreements.

The Trustees noted that, upon their direction, the Chief Compliance Officer for the Dynamic Small Cap Growth Fund, Small Cap Core Fund, Small Cap Equity Fund, and U.S. Small Company Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees of these Funds. The Trustees considered the written evaluation in determining whether to continue the Advisory Agreements.

Fees Relative to Advisor’s Other Clients

The Trustees received and considered information about the nature, extent and quality of services and fee rates offered and actually charged to other clients of the Advisor for comparable services. The Trustees also considered the complexity of investment management for the Funds relative to the Advisor’s other clients and the differences in the nature, extent and quality of the services provided to the different clients. The Trustees noted that the fee rates charged to the Funds in comparison to those charged to the Advisor’s other clients were reasonable.

Investment Performance

The Trustees received and considered relative performance and expense information for Funds which had at least one full year of performance at the time of the review in a report prepared by Lipper. The Trustees considered the total return performance information, which included the ranking of those Funds which had at least one full year of performance at the time of the review within a performance universe made up of funds with the same Lipper investment classification and objective (the “Universe Group”) by total return for applicable one-, three- and five-year periods. The Trustees reviewed a description of Lipper’s methodology for selecting mutual funds in each Fund’s Universe Group. The Lipper materials provided to the Trustees highlighted information with respect to certain representative classes to assist the Trustees in their review. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark and considered the performance information provided for the Funds at regular Board meetings by the Advisor and the independent consultant and also considered the special analysis by the independent consultant. The Lipper performance data noted by the Trustees as part of their

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   89

BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited) (continued)

review and the determinations made by the Trustees with respect to each Fund’s performance for certain representative classes are summarized below:

The Trustees noted that the Dynamic Small Cap Growth Fund’s performance was in the fourth, second and third quintiles for Class A shares and in the fourth, second and second quintiles for the Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that the overall performance was satisfactory. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and, based upon this discussion and other factors, concluded that they were satisfied with the Advisor’s analysis of the Fund’s performance. However, they requested that the Fund’s Advisor provide additional Fund performance information to be reviewed with the members of the Equity Subcommittee at each of their regular meetings over the course of the next year.

The Trustees noted that the Small Cap Core Fund’s performance was in the second, third and third quintiles for the Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that the overall performance needed enhancement. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and concluded that they were satisfied with the Advisor’s analysis of the Fund’s performance.

The Trustees noted that the Small Cap Equity Fund’s performance was in the first quintile for Class A and Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that the overall performance was attractive. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and, based upon this discussion and other factors, concluded that the performance was reasonable.

The Trustees noted that the Small Cap Growth Fund’s performance was in the third, second and first quintiles for Class A and Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that the overall performance was satisfactory. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and, based upon this discussion and other factors, concluded that the performance was reasonable.

The Trustees noted that the Small Cap Value Fund’s performance was in the second, second and third quintiles for Class A and Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that overall performance was satisfactory. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and, based upon this discussion and other factors, concluded that the performance was reasonable.

The Trustees noted that the U.S. Small Company Fund’s performance was in the third quintile for Class A shares for the one-year period ended December 31, 2008 and in the second, fourth and fourth quintiles for the Select Class shares for the one-, three-, and five-year periods ended December 31, 2008, respectively, and that the independent consultant indicated that the overall performance needed enhancement. The Trustees discussed the performance and investment strategy of the Fund with the Advisor and concluded that they were satisfied with the Advisor’s analysis of the Fund’s performance.

Advisory Fees and Expense Ratios

The Trustees considered the contractual advisory fee rate paid by each Fund to the Advisor by comparing that rate to the information prepared by Lipper concerning management fee rates paid by other funds in the same Lipper category as each Fund. The Trustees recognized that Lipper reported each Fund’s management fee rate as the combined contractual advisory fee and administration fee rate. The Trustees also considered the fee waiver and/or expense reimbursement arrangements currently in place for each Fund and considered the net advisory fee rate after taking waivers and reimbursements into account. The Trustees recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The attention that was given to the Lipper reports and the Trustees’ determination as a result of the review of each Fund’s advisory fees and expense ratios for certain representative classes are summarized below:

The Trustees noted that the Dynamic Small Cap Growth Fund’s net advisory fee for Class A and Select Class shares was in the first quintile and that the actual total expenses for Class A and Select Class shares were in the third and second quintiles, respectively, of their Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

The Trustees noted that the Small Cap Core Fund’s net advisory fee and actual total expenses for the Select Class shares were in the second and first quintiles, respectively, of their Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

90   J.P. MORGAN SMALL CAP FUNDS        DECEMBER 31, 2009

The Trustees noted that the Small Cap Equity Fund’s net advisory fee for Class A and Select Class shares was in the first quintile and that the actual total expenses for Class A and Select Class shares were in the second quintile of their respective Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

The Trustees noted that the Small Cap Growth Fund’s net advisory fee for Class A and Select Class shares was in the first quintile and that the actual total expenses for the Class A and Select Class shares were in the first and second quintiles, respectively, of their Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

The Trustees noted that the Small Cap Value Fund’s net advisory fee for Class A and Select Class shares was in the first and second quintiles, respectively, and that the actual total expenses for Class A and Select Class shares were in the first and second quintiles, respectively, of their Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

The Trustees noted that the U.S. Small Company Fund’s net advisory fee for Class A and Select Class shares was in the first quintile and that the actual total expenses for Class A and Select Class shares were in the first and second quintiles, respectively, of their Universe Group. The Trustees also considered information provided by JPMFM and JPMDS related to the structure and distribution strategy of the Fund and, in light of this information, concluded that the advisory fees were reasonable.

DECEMBER 31, 2009        J.P. MORGAN SMALL CAP FUNDS   91

THIS PAGE IS INTENTIONALLY LEFT BLANK

J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds.

Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risk as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing.

Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure by visiting www.sipc.org or by calling SIPC at 202-371-8300.

Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. Shareholders may request the Form N-Q without charge by calling 1-800-480-4111 or by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.

A description of each Fund’s policies and procedures with respect to the disclosure of each Fund’s holdings is available in the prospectus and Statement of Additional Information.

A copy of proxy policies and procedures is available without charge upon request by calling 1-800-480-4111 and a description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Advisor. A copy of the Funds’ voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds’ website at www.jpmorganfunds.com no later than August 31 of each year. The Funds’ proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.

 

  

© JPMorgan Chase & Co., 2009    All rights reserved. December 2009. SAN-SC-1209

 

Semi-Annual Report

J.P. Morgan Mid Cap/Multi-Cap Funds

Six months ended December 31, 2009 (Unaudited)

JPMorgan Growth Advantage Fund
JPMorgan Mid Cap Equity Fund
JPMorgan Mid Cap Growth Fund
JPMorgan Mid Cap Value Fund
JPMorgan Multi-Cap Market Neutral Fund
JPMorgan Value Advantage Fund

CONTENTS

President’s Letter	1
Fund Commentaries:
JPMorgan Growth Advantage Fund	2
JPMorgan Mid Cap Equity Fund	4
JPMorgan Mid Cap Growth Fund	7
JPMorgan Mid Cap Value Fund	10
JPMorgan Multi-Cap Market Neutral Fund	13
JPMorgan Value Advantage Fund	16
Schedules of Portfolio Investments	19
Financial Statements	50
Financial Highlights	66
Notes to Financial Statements	78
Schedule of Shareholder Expenses	89
Board Approval of Investment Advisory Agreements	92

 

Investments in a Fund are not bank deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when the Fund’s share price is lower than when you invested.

Past performance is no guarantee for future performance. The general market views expressed in this report are opinions based on conditions through the end of the reporting period and are subject to change without notice based on market and other conditions. These views are not intended to predict the future performance of a Fund or the securities markets. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Such views are not meant as investment advice and may not be relied on as an indication of trading intent on behalf of any Fund.

Prospective investors should refer to the Funds’ prospectus for a discussion of the Funds’ investment objective, strategies and risks. Call J.P. Morgan Funds Service Center at 1-800-480-4111 for a prospectus containing more complete information about a Fund including management fees and other expenses. Please read it carefully before investing.

PRESIDENT’S LETTER
JANUARY 15, 2010 (Unaudited)

Dear Shareholder:

We’ve certainly come a long way from the negative and confusing environment that we faced earlier this year, when the global financial system was in the midst of an unprecedented crisis, stock markets worldwide were crashing, and the U.S. economy was in the midst of its worst recession since World War II. In fact, as we close on the last quarter of 2009, things look better in many ways; the financial crisis has abated, stock markets are up substantially from their lows, and the economy appears to have embarked on a recovery.

  “In fact, as we close on the last quarter of 2009, things look better in many ways; the financial crisis has abated, stock markets are up substantially from their lows, and the economy appears to have embarked on a recovery.”

While this is welcomed, we, like you, are aware of how far we still have to go to return to “normal” in terms of the economy and markets. Pent-up demand — combined with monetary and fiscal stimulus — may have ignited the recovery, but the recovery will need job growth to sustain itself. While we do expect job growth to eventually materialize, the economy remains vulnerable to a relapse on the road to recovery. Therefore, it makes sense to maintain a diversified portfolio — one that can benefit from a recovery maturing into a full-fledged expansion, while still providing some protection from any potential retreat from that path.

Equity markets continue to rally

A strong second quarter stock market rally helped propel the equity markets out of negative territory for the year. This rally continued throughout the second half of the year. The Standard & Poor’s 500 Index returned 22.6% for the 6-month period ended December 31, 2009.

From an equity style perspective, mid cap companies surged ahead of their small and large cap counterparts for the 6-month period (27.8%, according to the Russell Midcap Index, compared to 23.1% and 23.9%, as measured by the Russell 1000 and the Russell 2000 Indexes, respectively). Among large cap stocks, growth and value fared similarly; the Russell 1000 Growth Index returned 23.0% for the 6-month period, compared to 23.2% for the Russell 1000 Value Index. In the mid and small cap sectors, value companies performed ahead of growth, with the Russell Midcap Value returning 30.1% and the Midcap Growth returning 25.5% for the period. In the small cap segment, the Russell 2000 Value Index returned 27.2%, while the Russell 2000 Growth Index returned 20.8%.

Overseas stocks, particularly emerging markets, overcame a rough start to the year to turn in an equally impressive comeback over the six-month period. The MSCI Emerging Markets Index returned 31.4% (gross) for the period, while the MSCI EAFE Index returned 22.2% (gross) for the same period.

Investors continue to seek higher risk, higher yields

Investors continued to flee to mortgage, investment-grade corporate and high yield areas of the market, all of which posted strong gains. Treasury markets, however, declined as investors retreated from the “flight to safety” that they took in 2008. In this environment, the Barclays Capital U.S. Aggregate Index returned a modest 4.0% for the 6-month period. Meanwhile, the Barclays Capital High Yield Index returned 21.3% for the six-month period, and the Barclays Capital Emerging Markets Index returned 14.0%. Yields on longer term Treasuries continued to climb. Yields on the benchmark 10-year Treasury jumped from 3.5% six months ago to 3.9% as of the end of this reporting period. Yields on the 30-year benchmark were 4.6%, compared to 4.3% six months ago, and yields on the two-year note remained unchanged at 1.1%.

Manage risks on the road to recovery

Both the Federal Reserve and the Federal Government have taken unprecedented steps to aid the economy. Although the effectiveness of these measures will be debated for years to come, the economy appears to be improving, whether due to government stimulus or not. Less controversial, however, are the eventual negative side effects of these actions. In the long run, the debt incurred by the Federal Government to stimulate the economy should result in both higher taxes and higher long-term interest rates. While the New Year may bring investors some new investing opportunities, it’s also important to safeguard portfolios against potential risks by maintaining a balanced approach including a diverse array of fixed income and alternative asset classes.

On behalf of everyone at J.P. Morgan Asset Management, I would like to wish you a very happy and prosperous new year. We look forward to continuing to support your investment goals in 2010 and beyond. Should you have any questions, please visit our website at www.jpmorganfunds.com, or contact the J.P. Morgan Funds Service Center at 1-800-480-4111.

Sincerely yours,

 

George C.W. Gatch
President and CEO
J.P. Morgan Funds

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   1

JPMorgan Growth Advantage Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	October 29, 1999
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$786,410
Primary Benchmark	Russell 3000 Growth Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Growth Advantage Fund, which seeks to provide long-term capital growth,* returned 22.45%** (Class A Shares, no sales charge) for the six months ended December 31, 2009, compared to the 22.85% return for the Russell 3000 Growth Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter — its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The market recovery provided investors with solid returns during the period, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. Because of the Fund’s momentum bias and quality bias — both of which were facing headwinds during much of the last six months — the Fund slightly underperformed against the Index.

In terms of sectors, healthcare, utilities and producer durables were the biggest detractors to Fund performance. Among specific stocks that detracted was Leap Wireless International, Inc. The company, which operates wireless networks through a subsidiary, Cricket Communications, was negatively impacted by growing competition within the pre-paid wireless market. Illumina Inc., a biotechnology firm that designs and develops analytical tools for use in genetic research, was hurt by delays related to the disbursement of funds from the federal government’s economic stimulus plan, a slowdown in basic research and weaker sales due to manufacturing problems.

On the positive side, stock selection in the consumer discretionary, energy and technology sectors positively contributed to performance. One consumer discretionary company that benefited results was the clothing retailer J. Crew Group. The company posted improving profit margins, driven by a good product mix and better inventory management. Concho Resources Inc., which produces oil and natural gas, benefited from strong oil prices while a weak U.S. natural gas price lowered their service costs.

Q: HOW WAS THE FUND MANAGED?

A: The Fund utilized a bottom-up approach to construct the Fund’s portfolio, basing stock selection on a combination of proprietary company research complemented by research derived from third-party sources. The research process was designed to identify companies with predictable and durable business models deemed capable of achieving sustainable growth. Potential investments were subjected to rigorous financial analysis and a disciplined approach to valuation. The Fund, which can invest in small, mid and large cap stocks, is now finding more attractive companies in the large cap arena, on both a valuation and fundamental basis, particularly in the technology sector.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Apple, Inc.	4.4	%
2.	Microsoft Corp.	4.4
3.	Google, Inc., Class A	4.3
4.	Cisco Systems, Inc.	2.6
5.	Merck & Co., Inc.	2.6
6.	UnitedHealth Group, Inc.	2.4
7.	Hewlett-Packard Co.	2.3
8.	Coca-Cola Co. (The)	1.9
9.	MasterCard, Inc., Class A	1.9
10.	Amdocs Ltd., (United Kingdom)	1.8

 

PORTFOLIO COMPOSITION BY SECTOR***

Information Technology	37.0	%
Consumer Discretionary	17.8
Health Care	14.8
Industrials	10.6
Financials	8.4
Energy	5.1
Consumer Staples	3.9
Materials	1.6
Short-Term Investment	0.8

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

2   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	10/29/99
Without Sales Charge			22.45	%		36.62	%		4.64	%		(6.35	)%
With Sales Charge*			15.94			29.50			3.51			(6.85	)
CLASS B SHARES	10/29/99
Without CDSC			22.14			35.69			3.97			(6.87	)
With CDSC**			17.14			30.69			3.62			(6.87	)
CLASS C SHARES	5/1/06
Without CDSC			22.10			35.89			4.00			(6.96	)
With CDSC***			21.10			34.89			4.00			(6.96	)
CLASS R5 SHARES	1/8/09		22.77			37.10			4.87			(6.24	)
SELECT CLASS SHARES	5/1/06		22.60			36.91			4.84			(6.26	)

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

As of August 17, 2005, the Fund changed its name, investment objective, certain investment policies and benchmark. Prior to that time, the Fund operated as JPMorgan Mid Cap Growth Fund. Although past performance is not necessarily an indication of how the Fund will perform in the future, in view of these changes, the Fund’s performance record prior to August 17, 2005 might be less pertinent for investors considering whether to purchase shares of the Fund. The performance for the Class A and Class B Shares before March 23, 2001 is based on the performance of the Class A and Class B Shares of the Fund’s predecessor, H&Q IPO & Emerging Company Fund, a series of Hambrecht & Quist Fund Trust, which transferred all of its assets and liabilities to the Fund pursuant to a reorganization on that date. The predecessor’s investment program was identical to that of the Fund prior to December 3, 2001. The predecessor’s Class A and Class B expenses were substantially similar to those of Class A and Class B of the Fund. Returns for the Class C Shares prior to their inception date are based on the performance of Class B Shares, whose expenses are substantially similar to those of Class C Shares. Returns for the Select Class Shares prior to their inception date are based on the performance of Class A Shares. During this period, the actual returns of Select Class Shares would have been different because Select Class Shares have different expenses than Class A Shares. Returns for Class R5 Shares prior to its inception date are based on the performance of Select Class Shares from May 1, 2006 to June 30, 2009 and Class A Shares prior to May 1, 2006. The actual returns of Class R5 Shares would have been lower than those shown because Class R5 Shares have higher expenses than Select Class and Class A Shares.

The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Growth Advantage Fund, the Russell 3000 Growth Index and the Lipper Multi-Cap Growth Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and includes a sales charge. The performance of the indices reflects an initial investment at the end of the month following the Fund’s inception. The performance of the Russell 3000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Multi-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 3000 Growth Index is an unmanaged index which measures the performance of those Russell 3000 Index companies (largest 3000 U.S. companies) with higher price-to-book ratios and higher forecasted growth values. The Lipper Multi-Cap Growth Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after 8 years, the 10 year annual average total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   3

JPMorgan Mid Cap Equity Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	January 1, 1997
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$347,212
Primary Benchmark	Russell Midcap Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Mid Cap Equity Fund, which seeks long-term capital growth,* returned 24.88%** (Select Class Shares) for the six months ended December 31, 2009. This compares to the 27.76% return for the Russell Midcap Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter of 2009 — its first increase since the second quarter of 2008.

For the six-month period, U.S. mid-cap equities provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

Although the Fund generated a strong absolute return during the reporting period, it lagged the Index. This was partially the result of stock selection in the financials and materials sectors, which more than offset the positive impact from stock selection in the utilities and consumer discretionary sectors.

In terms of individual stocks, the Fund’s position in regional bank, Synovus Financial Corp., was a detractor from performance. It generated poor results given larger than expected credit losses in its construction loan portfolio. As a result, we subsequently eliminated the stock from the portfolio. Another detractor from performance was the Fund’s lack of exposure to a number of highly cyclical materials companies that generated strong performance during the reporting period. For example, the Fund did not own International Paper Co., a stock that rallied sharply during the period in anticipation of a global economic rebound. The Fund’s position in wireless telephone service company Leap Wireless International, Inc. also hurt results. The company reported disappointing earnings during the period due to the rising costs associated with acquiring new subscribers and increased competition from pre-paid wireless providers. We sold the stock given our deteriorating earnings outlook for the company.

Examples of stocks that positively contributed to the Fund’s results were Energen Corp., Nordstrom, Inc. and Precision Castparts Corp. Energen is a natural gas exploration and production company. It also has a natural gas utility business, servicing customers in Alabama. Given the strong demand for natural gas, the company was able to boost its production levels. In addition, despite the challenging economic environment, Energen continued to generate a steady stream of cash flows from its utility. Upscale fashion retailer Nordstom’s shares rebounded during the period as it experienced increased consumer traffic in its stores, improving sales trends and rising margins. In addition, we believe the company did a good job at managing its expenses. Industrial company Precision Castparts is a manufacturer of complex metal components that are typically used in the aerospace and power generation industries. We feel its share price rose given expectations for higher demand for its products.

Q: HOW WAS THE FUND MANAGED?

A: The Fund employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. We looked for dominant franchises with predictable business models deemed capable of achieving sustained growth while also looking to identify undervalued mid cap companies with the potential to grow their intrinsic value per share.

4   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Precision Castparts Corp.	1.4	%
2.	Amphenol Corp., Class A	1.4
3.	Tyco Electronics Ltd. (Switzerland)	1.1
4.	Amdocs Ltd. (United Kingdom)	1.1
5.	Roper Industries, Inc.	1.0
6.	Cognizant Technology Solutions Corp., Class A	1.0
7.	T. Rowe Price Group, Inc.	1.0
8.	Old Republic International Corp.	0.9
9.	Cincinnati Financial Corp.	0.9
10.	Williams Cos., Inc. (The)	0.9

 

PORTFOLIO COMPOSITION BY SECTOR***

Consumer Discretionary	18.9	%
Financials	16.8
Information Technology	16.7
Industrials	13.0
Health Care	9.6
Utilities	6.5
Energy	5.7
Materials	4.1
Consumer Staples	3.6
Telecommunication Services	1.9
Short-Term Investment	3.2

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   5

JPMorgan Mid Cap Equity Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	11/2/09
Without Sales Charge			24.81	%		34.10	%		2.54	%		5.50	%
With Sales Charge*			18.27			27.04			1.44			4.93
CLASS C SHARES	11/2/09
Without CDSC			24.69			33.97			2.52			5.49
With CDSC**			23.69			32.97			2.52			5.49
SELECT CLASS SHARES	1/1/97		24.88			34.18			2.55			5.51

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for Class A and Class C Shares prior to their inception date were based on the performance of Select Class Shares. The actual returns of Class A and Class C Shares would have been lower than those shown because Class A and Class C Shares have higher expenses than Select Class Shares.

The graph illustrates comparative performance for $1,000,000 invested in the Select Class Shares of JPMorgan Mid Cap Equity Fund, the Russell Midcap Index, and the Lipper Mid-Cap Core Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any. The performance of the Russell Midcap Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Mid-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell Midcap Index is an unmanaged index which measures the performance of the 800 smallest companies of the Russell 1000 Index. The Lipper Mid-Cap Core Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an Index.

Select Class Shares have a $1,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

6   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

JPMorgan Mid Cap Growth Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	March 2, 1989
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$1,396,528
Primary Benchmark	Russell Midcap Growth Index

 

Q: HOW DID THE PORTFOLIO PERFORM?

A: The JPMorgan Mid Cap Growth Fund, which seeks growth of capital and secondarily, current income by investing primarily in equity securities,* returned 25.82%** (Select Class Shares) for the six months ended December 31, 2009, compared to the 25.45% return for the Russell Midcap Growth Index (the “Index”) for the same period.

Q: WHY DID THE PORTFOLIO PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter — its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The market recovery provided investors with solid returns during the period, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930’s. The Fund was able to slightly outperform the Index, due to favorable stock selection as the low quality rally, which dominated the year, abated in the fourth quarter.

Among the sectors that contributed to performance were consumer discretionary and materials and processing. A specific example of a company that contributed to the Fund’s performance was Marvell Technology Group Ltd., a semiconductor company. Marvell Technology Group Ltd. benefited from strong demand for its controller chips used in storage devices. It also improved its product mix and embarked on a successful cost-cutting campaign. Another meaningful contributor was Amdocs Ltd., a provider of software services for the communications, media and entertainment industries. Shares of Amdocs moved higher as it experienced stabilization in its discretionary business, combined with strong recurring revenues.

Sectors that detracted from the Fund’s performance during the six-month period included healthcare and financial services. Among specific stocks that detracted from the Fund’s performance was Leap Wireless International, Inc. The company, which operates wireless networks through a subsidiary, Cricket Communications, was negatively impacted by growing competition within the pre-paid wireless market. Illumina Inc., a biotechnology firm that designs and develops analytical tools for use in genetic research, was hurt by delays related to the disbursement of funds from the federal government’s economic stimulus plan, a slowdown in basic research and weaker sales due to manufacturing problems.

Q: HOW WAS THE PORTFOLIO MANAGED?

A: The Fund employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. We looked for dominant franchises with predictable business models deemed capable of achieving sustained growth. Potential investments were subjected to rigorous financial analysis. We attempted to maintain sector diversification in the Fund by avoiding large allocations that were contingent on macroeconomic or sector trends.

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Amdocs Ltd. (United Kingdom)	2.3	%
2.	Cognizant Technology Solutions Corp., Class A	1.9
3.	Marvell Technology Group Ltd. (Bermuda)	1.8
4.	UnitedHealth Group, Inc.	1.7
5.	Amphenol Corp., Class A	1.6
6.	Precision Castparts Corp.	1.5
7.	NetApp, Inc.	1.4
8.	Southwestern Energy Co.	1.3
9.	Express Scripts, Inc.	1.3
10.	Equinix, Inc.	1.3

 

PORTFOLIO COMPOSITION BY SECTOR***

Information Technology	27.4	%
Consumer Discretionary	19.8
Industrials	17.9
Health Care	13.6
Financials	9.9
Energy	5.7
Materials	2.3
Consumer Staples	1.2
Telecommunication Services	1.0
Short-Term Investment	1.2

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   7

JPMorgan Mid Cap Growth Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

8   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	2/18/92
Without Sales Charge			25.68	%		42.93	%		2.83	%		2.06	%
With Sales Charge*			19.06			35.38			1.73			1.51
CLASS B SHARES	1/14/94
Without CDSC			25.28			42.05			2.19			1.48
With CDSC**			20.28			37.05			1.82			1.48
CLASS C SHARES	11/4/97
Without CDSC			25.28			42.03			2.19			1.36
With CDSC***			24.28			41.03			2.19			1.36
CLASS R2 SHARES	6/19/09		25.48			42.57			2.66			1.87
SELECT CLASS SHARES	3/2/89		25.82			43.24			3.09			2.32

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for the Class R2 Shares prior to its inception date are based on the performance of Select Class Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Select Class Shares.

The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Mid Cap Growth Fund, the Russell Midcap Growth Index and the Lipper Mid-Cap Growth Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the Russell Midcap Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Mid-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell Midcap Growth Index is an unmanaged index which measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Mid-Cap Growth Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Select Class Shares have a $1,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after 8 years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   9

JPMorgan Mid Cap Value Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	November 13, 1997
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$5,187,545
Primary Benchmark	Russell Midcap Value Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Mid Cap Value Fund, which seeks growth from capital appreciation,* returned 24.94%** (Institutional Class Shares) for the six months ended December 31, 2009. This compares to the 30.05% return for the Russell Midcap Value Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter of 2009 — its first increase since the second quarter of 2008.

For the six-month period, U.S. mid-cap equities provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

Although the Fund generated a strong absolute return during the reporting period, it lagged its benchmark. This was partially the result of stock selection in the financials and materials sectors, which more than offset the positive impact from stock selection in the utilities and information technology sectors.

In terms of individual stocks, the Fund’s position in regional bank, Synovus Financial Corp., was a detractor from performance. It generated poor results, given larger than expected credit losses in its construction loan portfolio. As a result, we eliminated the stock from the portfolio during the reporting period. Another detractor was the Fund’s lack of exposure to a number of highly cyclical materials companies which generated strong performance during the reporting period. For example, the Fund did not own International Paper Co., a stock that rallied sharply during the period in anticipation of a global economic rebound. The Fund’s overweight position in Burger King Holdings, Inc. was also a detriment to performance. Its stock lagged the Index as it experienced same-store sales declines and continues to lose market share to McDonald’s. We felt prudent to remove the stock from the portfolio and use proceeds to invest in higher conviction names.

An example of a stock that positively contributed to the Fund’s results included an overweight position in CMS Energy Corp., an electric utility headquartered in Michigan. The company benefited from the restructuring it has instituted in recent years, which included the sale of most of its unregulated assets. The company now more closely resembles a regulated utility resulting in increased earnings visibility. This has resulted in the consistent generation of free cash flow, which allowed CMS Energy to increase its dividend in early 2009. In addition, CMS Energy has increased its capital investments in renewable forms of energy, such as wind and solar.

Another meaningful contributor to the Fund’s performance was its position in Amphenol Corp. The company manufactures electrical, electronic and fiber optic connectors, coaxial and flat-ribbon cable. With the economy rebounding, we believe its share price moved higher given expectations for stronger demand for its products from its diversified customer base. These include mobile communications, automotive, aerospace and medical-related companies. Elsewhere, in the healthcare sectors, Lincare Holdings, Inc. was strong performer for the Fund. Among its services, Lincare provides respiratory care to patients in their home. While concerns exist that healthcare reform may lead to significant Medicare cuts for respiratory services, Lincare stands to gain market share as marginal players exit the business.

Q: HOW WAS THE FUND MANAGED?

A: The cornerstone of our investment philosophy is the belief that companies possessing the ability to consistently generate free cash flow and effectively allocate capital to generate growth in value per share will maximize the probability of providing consistent returns for the Fund and lower levels of volatility over the long term. We employ a bottom-up approach to stock selection, constructing portfolios based on company fundamentals, quantitative screening and proprietary fundamental analysis. Our purpose is to discover those companies offering the greatest potential against their current market value. Many companies may be considered cheap, and our research process helps us eliminate those that do not possess the characteristics of a sound, long-term business and identify those we believe are underrated or overlooked by the market.

10   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Old Republic International Corp.	1.9	%
2.	Cincinnati Financial Corp.	1.9
3.	Williams Cos., Inc. (The)	1.9
4.	American Electric Power Co., Inc.	1.8
5.	Republic Services, Inc.	1.8
6.	M&T Bank Corp.	1.7
7.	Safeway, Inc.	1.7
8.	Energen Corp.	1.7
9.	Becton, Dickinson & Co.	1.7
10.	Lincare Holdings, Inc.	1.6

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	24.5	%
Consumer Discretionary	18.4
Utilities	13.2
Industrials	8.4
Information Technology	6.5
Consumer Staples	6.1
Materials	6.0
Health Care	5.9
Energy	5.9
Telecommunication Services	2.9
Short-Term Investment	2.2

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total investments (excluding Investments of Cash Collateral for Securities on Loan) as of December 31, 2009. The Fund’s composition is subject to change.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   11

JPMorgan Mid Cap Value Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			10 YEAR
CLASS A SHARES	4/30/01
Without Sales Charge			24.54	%		26.05	%		1.83	%		10.05	%
With Sales Charge*			18.03			19.44			0.74			9.46
CLASS B SHARES	4/30/01
Without CDSC			24.31			25.49			1.32			9.53
With CDSC**			19.31			20.49			0.94			9.53
CLASS C SHARES	4/30/01
Without CDSC			24.23			25.46			1.32			9.52
With CDSC***			23.23			24.46			1.32			9.52
CLASS R2 SHARES	11/3/08		24.37			25.75			1.77			10.02
INSTITUTIONAL CLASS SHARES	11/13/97		24.94			26.75			2.34			10.54
SELECT CLASS SHARES	10/31/01		24.67			26.33			2.08			10.31

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

TEN YEAR PERFORMANCE (12/31/99 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

Returns for the Class A, Class B, Class C and Select Class Shares prior to their inception dates are based on the performance of Institutional Class Shares. During these periods, the actual returns of Class A, Class B, Class C and Select Class Shares would have been lower than shown because Class A, Class B, Class C and Select Class Shares have higher expenses than Institutional Class Shares. Returns for Class R2 Shares prior to its inception date are based on the performance of Class A Shares from April 30, 2001 to December 31, 2008 and Institutional Class Shares prior to April 30, 2001. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A and Institutional Class Shares.

The graph illustrates comparative performance for $3,000,000 invested in Institutional Class Shares of the JPMorgan Mid Cap Value Fund, the Russell Midcap Value Index, the Lipper Mid-Cap Core Funds Index and the Lipper Mid-Cap Value Funds Index from December 31, 1999 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the Russell Midcap Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Mid-Cap Core Funds Index and the Lipper Mid-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell Midcap Value Index is an unmanaged index which measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Mid-Cap Core Funds Index and the Lipper Mid-Cap Value Funds Index are indexes based on total returns of certain groups of mutual funds as determined by Lipper, Inc. The Fund’s Lipper Index changed to the Lipper Mid-Cap Core Funds Index because Lipper recategorized the Fund. Investors cannot invest directly in an index.

Institutional Class Shares have a $3,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Because Class B Shares automatically convert to Class A Shares after 8 years, the 10 year average annual total return shown above for Class B reflects Class A performance for the period after conversion.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

12   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

JPMorgan Multi-Cap Market Neutral Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	May 23, 2003
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$638,097
Primary Benchmark	BofA Merrill Lynch 3-Month U.S. Treasury Bill Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Multi-Cap Market Neutral Fund (the “Fund”), which seeks long-term capital preservation and growth by using strategies designed to produce returns that have no correlation with general domestic market performance,* returned –1.56%**(Select Class Shares) for the six months ended December 31, 2009. This compares to the 0.11% return for the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meantime, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter, its first increase since the second quarter of 2008. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund underperformed the Index during the reporting period. Stock selection remained the primary source of returns for the Fund, as we continued to neutralize macro and sector influences on performance. The overall stock-selection process uses a quantitative, bottom-up approach, which looks at stocks from a valuation standpoint (how a stock is priced relative to its intrinsic value) and from a fundamentals standpoint (how healthy a company’s short- term operating trends are judged to be). This quantitative investment environment proved to be difficult over the six-month period. However, we believe that over the long-term, such an approach can help diversify a client’s overall investment portfolio.

The Fund, which attempts to neutralize exposure to general domestic market risk by primarily investing in common stocks considered to be attractive and ‘short selling’ stocks considered to be unattractive, categorizes its universe of stocks into five so-called “supersectors” and twenty sectors within the supersectors. Of the Fund’s five supersector categories, healthcare and financials produced positive returns during the six-month period, contributing the most to performance. However, their contribution was negated by the performance of industrials and technology. The fundamental metrics for both of those sectors were quite poor, and were the main drivers of the Fund’s overall negative return.

Q: HOW WAS THE FUND MANAGED?

A: We ranked stocks within a universe of approximately 1,300 large-cap, mid-cap and high-end small-cap stocks. We owned more than 350 positions each on the long and short sides of the Fund during the period. Our disciplined investment process involves assessing and applying approximately equal emphasis to the valuation of each stock within its respective sector in the portfolio utilizing a quantitative model, with the help of several factors. On a long-term basis, this quantitative approach of using valuation factors and fundamentals factors in creating long and short portfolios is designed in an effort to generate a positive spread return (net return) between the long and short portfolios across all the sectors. The Fund was well diversified and sector-neutral. In essence, we sought to go long on inexpensive stocks with improving fundamentals and short on expensive stocks with deteriorating fundamentals. We continued to pursue our objective of long-term capital preservation and growth by using strategies designed to produce returns that have no correlation with general domestic market performance. We looked to generate returns above the Index over the long-term investment horizon.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   13

JPMorgan Multi-Cap Market Neutral Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

TOP TEN EQUITY LONG HOLDINGS OF THE PORTFOLIO***

1.	Unit Corp.	0.5	%
2.	Gannett Co., Inc.	0.5
3.	Bucyrus International, Inc.	0.5
4.	Computer Sciences Corp.	0.5
5.	Amedisys, Inc.	0.5
6.	STEC, Inc.	0.4
7.	Forest Laboratories, Inc.	0.4
8.	Avnet, Inc.	0.4
9.	World Fuel Services Corp.	0.4
10.	Harris Corp.	0.4

 

TOP TEN EQUITY SHORT HOLDINGS OF THE PORTFOLIO****

1.	EQT Corp.	0.5	%
2.	United Therapeutics Corp.	0.5
3.	Continental Airlines, Inc., Class B	0.5
4.	Kansas City Southern	0.5
5.	Sotheby’s	0.5
6.	Cleco Corp.	0.5
7.	Spectra Energy Corp.	0.5
8.	Weyerhaeuser Co.	0.5
9.	Northeast Utilities	0.5
10.	Dril-Quip, Inc.	0.4

 

PORTFOLIO COMPOSITION BY SECTOR LONG POSITIONS***

Information Technology	18.0	%
Consumer Discretionary	17.2
Industrials	14.1
Health Care	11.3
Financials	9.3
Energy	7.0
Materials	6.3
Utilities	5.8
Consumer Staples	4.7
Telecommunication Services	1.4
Short-Term Investment	4.9

 

PORTFOLIO COMPOSITION BY SECTOR SHORT POSITIONS****

Industrials	18.0	%
Information Technology	15.5
Consumer Discretionary	13.2
Financials	12.1
Health Care	11.5
Energy	7.5
Materials	7.3
Utilities	7.1
Consumer Staples	6.0
Telecommunication Services	1.8

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total long investments as of December 31, 2009. The Fund’s composition is subject to change.

****   Percentages indicated are based upon total short investments as of December 31, 2009. The Fund’s composition is subject to change.

14   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			5 YEAR			SINCE INCEPTION
CLASS A SHARES	5/23/03
Without Sales Charge			(1.67	)%		(0.30	)%		1.58	%		2.22	%
With Sales Charge*			(6.86	)		(5.55	)		0.50			1.39
CLASS B SHARES	5/23/03
Without CDSC			(2.10	)		(1.01	)		0.83			1.46
With CDSC**			(7.10	)		(6.01	)		0.44			1.46
CLASS C SHARES	5/23/03
Without CDSC			(2.10	)		(1.11	)		0.82			1.45
With CDSC***			(3.10	)		(2.11	)		0.82			1.45
SELECT CLASS SHARES	5/23/03		(1.56	)		0.00			1.83			2.47

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 2% CDSC for the five year period and 0% CDSC thereafter.

***   Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.

LIFE OF FUND PERFORMANCE (5/23/03 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

The Fund commenced operations on May 23, 2003.

The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Multi-Cap Market Neutral Fund, the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index and the Lipper Equity Market-Neutral Funds Average from May 23, 2003 to December 31, 2009. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and does not include a sales charge. The performance of the indices reflects an initial investment at the end of the month following the Fund’s inception. The performance of the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Equity Market-Neutral Funds Average includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Merrill Lynch 3-Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the index is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond 3 months from the rebalancing date. The Lipper Equity Market-Neutral Funds Average is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Select Class Shares have a $1,000,000 minimum initial investment and carry no sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net assets value in accordance with accounting principles generally accepted in the United States of America.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   15

JPMorgan Value Advantage Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited)

FUND FACTS
Fund Inception	February 28, 2005
Fiscal Year End	June 30
Net Assets as of 12/31/2009 (In Thousands)	$447,961
Primary Benchmark	Russell 3000 Value Index

 

Q: HOW DID THE FUND PERFORM?

A: The JPMorgan Value Advantage Fund, which seeks to provide long-term total return from a combination of income and capital gains,* returned 28.77%** (Class A Shares, no sales charge) for the six months ended December 31, 2009. This compares to the 23.53% for the Russell 3000 Value Index (the “Index”) for the same period.

Q: WHY DID THE FUND PERFORM THIS WAY?

A: The stock market rally that began in March 2009 spanned the entire U.S. equity spectrum and continued for the remainder of the year, enabling stocks to recoup significant portions of their losses from the bear market that began in the fall of 2007. Meanwhile, the U.S. economy showed signs of life by expanding at an annualized 2.2% rate in the third quarter of 2009 — its first increase since the second quarter of 2008.

For the six-month period, U.S. equity markets provided investors with solid returns, a welcome change after what had arguably been one of the worst market downturns since the Great Depression of the 1930s. During the period, there were indications that the worst of the housing market’s woes, which helped start the market selloff in 2007, were beginning to ease. The price of many commodities rose, signaling renewed demand for energy and raw materials, and consumer spending, while off its previous highs, showed signs of stabilizing.

The Fund generated a strong absolute return during the reporting period and outperformed the Index. This was partially the result of favorable stock selection in the consumer discretionary and energy sectors. These positives more than offset the negative impact from stock selection in financials, as well as stock selection and an underweight in the strong performing information technology sector.

Examples of stocks that positively contributed to the Fund’s results were A. H. Belo Corp., Enterprise Group Holdings LP and J.M. Smucker’s. A. H. Belo Corp. owns and operates four daily newspapers, including The Dallas Morning News. Its stock price had fallen sharply as subscriber rates and advertising revenue declined. Despite these negatives, we found the stock to be attractively valued, especially given A. H. Belo’s lack of debt on its balance sheet. As the economy stabilized and expanded, its stock price rallied sharply. Enterprise Group Holdings LP is an energy company that provides a wide range of services to producers and consumers of natural gas and crude oil. More specifically, its operations include the processing, transportation and storage of natural gas and oil. Its stock performed well as volumes increased during the reporting period. J.M. Smucker’s Company owns a wide range of well-known food brands, including various jams and jellies, Crisco, Pillsbury and Dunkin’ Donuts. In 2008, Smucker’s purchased Folger’s coffee from Procter & Gamble. Since that time, Folger’s market share has increased, which we believe has been one of the catalysts driving Smucker’s strong results.

Examples of stocks that detracted from the Fund’s performance during the reporting were Synovus Financial Corp., QUALCOMM Inc. and United Community Bank. Regional Bank, Synovus Financial Corp. generated poor results given larger than expected credit losses in its construction loan portfolio. QUALCOMM Inc. is a wireless telecommunications research and development company. It is also the designer and supplier of Code Division Multiple Access (CDMA) chipsets, system software, network base stations, handsets, modems and other products. While the share price of this high quality company rose during the reporting period, it lagged the Index as lower quality stocks, in general, generated better returns during the reporting period. United Community Bank is a regional bank headquartered in Georgia. The company’s stock was pressured as it posted a third quarter loss that was greater than expected. In addition, sentiment for the company appeared to wane as a regulatory investigation by the FDIC required United Community Bank to raise additional capital. While this announcement raised our concern, the FDIC assisted acquisition of a failed Georgia bank in June led us to believe these actions were most likely cautionary in nature.

Q: HOW WAS THE FUND MANAGED?

A: The Fund employed a bottom-up approach to stock selection. We look to identify undervalued companies that have the potential to grow intrinsic value per share. The research process is designed to find companies with durable business models deemed capable of generating significant free cash flow. All potential investments are subjected to rigorous financial analysis and a disciplined approach to valuation.

16   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO***

1.	Wells Fargo & Co.	3.5	%
2.	Loews Corp.	3.3
3.	Devon Energy Corp.	2.6
4.	Berkshire Hathaway, Inc., Class A	2.4
5.	Teekay Corp. (Canada)	2.4
6.	ONEOK, Inc.	2.0
7.	Williams Cos., Inc. (The)	2.0
8.	JM Smucker Co. (The)	1.9
9.	Telephone & Data Systems, Inc.	1.8
10.	Old Republic International Corp.	1.8

 

PORTFOLIO COMPOSITION BY SECTOR***

Financials	35.7	%
Energy	14.0
Consumer Discretionary	13.7
Health Care	9.2
Utilities	5.9
Consumer Staples	5.8
Telecommunication Services	4.1
Industrials	4.0
Investment Company	1.8
Information Technology	1.7
Materials	1.0
Short-Term Investment	3.1

 

*   The advisor seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.

**   The return shown is based on net asset value calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America.

***   Percentages indicated are based upon total investments as of December 31, 2009. The Fund’s composition is subject to change.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   17

JPMorgan Value Advantage Fund

FUND COMMENTARY
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2009

	INCEPTION DATE OF CLASS	6 MONTH			1 YEAR			3 YEAR			SINCE INCEPTION
CLASS A SHARES	2/28/05
Without Sales Charge			28.77	%		35.07	%		(3.72	)%		3.30	%
With Sales Charge*			21.96			28.02			(5.43	)		2.16
CLASS C SHARES	2/28/05
Without CDSC			28.48			34.31			(4.20	)		2.79
With CDSC**			27.48			33.31			(4.20	)		2.79
INSTITUTIONAL CLASS SHARES	2/28/05		29.19			35.87			(3.18	)		3.73
SELECT CLASS SHARES	2/28/05		28.96			35.36			(3.45	)		3.58

 

*   Sales Charge for Class A Shares is 5.25%.

**   Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter.

LIFE OF FUND PERFORMANCE (2/28/05 TO 12/31/09)

 

Source: Lipper, Inc. The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.

The Fund commenced operations on February 28, 2005.

The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Value Advantage Fund, the Russell 3000 Value Index and the Lipper Multi-Cap Value Funds Index from February 28, 2005 to December 31, 2009. The Fund has changed the class used in the graph from Class C to Class A because Class A is now the Fund’s largest class and both classes commenced operations at the same time. The performance of the Fund assumes reinvestment of all dividends and capital gains, if any, and includes a sales charge. The performance of the Russell 3000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The performance of the Lipper Multi-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses charged by the Fund. The Russell 3000 Value Index is an unmanaged index which measures the performance of those Russell 3000 Index companies (largest 3000 U.S. companies) with lower price-to-book ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.

Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.

Performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

18   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

JPMorgan Growth Advantage Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 98.7%
	Consumer Discretionary — 17.7%
	Auto Components — 1.0%
445	Gentex Corp. (c)		7,934
	Automobiles — 0.7%
211	Harley-Davidson, Inc. (c)		5,317
	Diversified Consumer Services — 1.7%
315	Education Management Corp. (a) (c)		6,929
284	Lincoln Educational Services Corp. (a)		6,144
			13,073
	Hotels, Restaurants & Leisure — 3.8%
348	Cheesecake Factory, Inc. (The) (a) (c)		7,504
188	Penn National Gaming, Inc. (a)		5,099
371	Royal Caribbean Cruises Ltd. (a) (c)		9,369
206	Starwood Hotels & Resorts Worldwide, Inc. (c)		7,526
			29,498
	Internet & Catalog Retail — 1.7%
100	Amazon.com, Inc. (a) (c)		13,506
	Media — 1.5%
362	Walt Disney Co. (The)		11,658
	Multiline Retail — 1.8%
148	Kohl’s Corp. (a) (c)		7,976
169	Nordstrom, Inc. (c)		6,363
			14,339
	Specialty Retail — 4.6%
181	DSW, Inc., Class A (a)		4,682
172	J Crew Group, Inc. (a) (c)		7,686
141	Sherwin-Williams Co. (The) (c)		8,693
327	Staples, Inc. (c)		8,036
349	Williams-Sonoma, Inc. (c)		7,244
			36,341
	Textiles, Apparel & Luxury Goods — 0.9%
99	V.F. Corp.		7,236
	Total Consumer Discretionary		138,902
	Consumer Staples — 3.9%
	Beverages — 1.9%
257	Coca-Cola Co. (The)		14,620
	Food & Staples Retailing — 2.0%
124	Costco Wholesale Corp.		7,331
236	Walgreen Co.		8,648
			15,979
	Total Consumer Staples		30,599
	Energy — 5.1%
	Energy Equipment & Services — 1.0%
184	Cameron International Corp. (a)		7,707
	Oil, Gas & Consumable Fuels — 4.1%
66	Apache Corp.		6,840
152	Concho Resources, Inc. (a)		6,825
97	Noble Energy, Inc. (c)		6,887
240	Southwestern Energy Co. (a)		11,568
			32,120
	Total Energy		39,827
	Financials — 8.3%
	Capital Markets — 4.0%
34	BlackRock, Inc. (c)		7,872
64	Goldman Sachs Group, Inc. (The)		10,721
383	Och-Ziff Capital Management Group LLC, Class A		5,264
150	T. Rowe Price Group, Inc. (c)		7,971
			31,828
	Commercial Banks — 2.7%
233	BB&T Corp. (c)		5,911
222	U.S. Bancorp		5,000
385	Wells Fargo & Co.		10,402
			21,313
	Diversified Financial Services — 0.7%
175	MSCI, Inc., Class A (a)		5,555
	Insurance — 0.9%
134	ACE Ltd., (Switzerland) (a)		6,754
	Total Financials		65,450
	Health Care — 14.7%
	Biotechnology — 2.1%
105	Alexion Pharmaceuticals, Inc. (a)		5,141
209	Celgene Corp. (a) (c)		11,648
			16,789
	Health Care Equipment & Supplies — 1.3%
338	Insulet Corp. (a) (c)		4,824
189	Thoratec Corp. (a) (c)		5,077
			9,901
	Health Care Providers & Services — 5.9%
235	Emeritus Corp. (a) (c)		4,397
126	Express Scripts, Inc. (a)		10,875
120	McKesson Corp.		7,506
230	Psychiatric Solutions, Inc. (a) (c)		4,864
618	UnitedHealth Group, Inc.		18,825
			46,467

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   19

JPMorgan Growth Advantage Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Health Care Technology — 0.8%
295	MedAssets, Inc. (a) (c)		6,249
	Life Sciences Tools & Services — 0.7%
488	Bruker Corp. (a)		5,890
	Pharmaceuticals — 3.9%
561	Merck & Co., Inc.		20,503
181	Teva Pharmaceutical Industries Ltd., (Israel), ADR		10,140
			30,643
	Total Health Care		115,939
	Industrials — 10.6%
	Aerospace & Defense — 1.8%
115	HEICO Corp. (c)		5,094
82	Precision Castparts Corp. (c)		9,098
			14,192
	Building Products — 1.3%
163	Lennox International, Inc.		6,367
187	Trex Co., Inc. (a) (c)		3,659
			10,026
	Commercial Services & Supplies — 1.5%
78	Stericycle, Inc. (a) (c)		4,320
232	Waste Connections, Inc. (a)		7,736
			12,056
	Construction & Engineering — 0.9%
249	Aecom Technology Corp. (a)		6,848
	Electrical Equipment — 1.4%
25	First Solar, Inc. (a) (c)		3,344
140	Roper Industries, Inc. (c)		7,348
			10,692
	Machinery — 0.7%
138	Wabtec Corp. (c)		5,636
	Road & Rail — 1.9%
151	Canadian National Railway Co., (Canada)		8,219
184	Landstar System, Inc.		7,130
			15,349
	Trading Companies & Distributors — 1.1%
86	W.W. Grainger, Inc. (c)		8,279
	Total Industrials		83,078
	Information Technology — 36.8%
	Communications Equipment — 4.2%
861	Cisco Systems, Inc. (a)		20,617
261	QUALCOMM, Inc.		12,060
			32,677
	Computers & Peripherals — 8.5%
163	Apple, Inc. (a)		34,275
417	Dell, Inc. (a)		5,990
342	Hewlett-Packard Co.		17,591
271	NetApp, Inc. (a) (c)		9,316
			67,172
	Electronic Equipment, Instruments & Components — 1.1%
190	Amphenol Corp., Class A		8,751
	Internet Software & Services — 5.3%
75	Equinix, Inc. (a) (c)		7,940
54	Google, Inc., Class A (a) (c)		33,479
			41,419
	IT Services — 7.7%
119	Alliance Data Systems Corp. (a) (c)		7,680
486	Amdocs Ltd., (United Kingdom) (a)		13,863
252	Cognizant Technology Solutions Corp., Class A (a)		11,429
141	Hewitt Associates, Inc., Class A (a)		5,975
56	MasterCard, Inc., Class A (c)		14,437
396	Western Union Co. (The)		7,463
			60,847
	Semiconductors & Semiconductor Equipment — 4.3%
247	Broadcom Corp., Class A (a)		7,780
505	Intel Corp.		10,294
162	Lam Research Corp. (a) (c)		6,356
453	Marvell Technology Group Ltd., (Bermuda) (a) (c)		9,402
			33,832
	Software — 5.7%
141	Blackboard, Inc. (a) (c)		6,396
1,117	Microsoft Corp.		34,042
182	Taleo Corp., Class A (a)		4,271
			44,709
	Total Information Technology		289,407
	Materials — 1.6%
	Containers & Packaging — 0.8%
118	Greif, Inc., Class A		6,353
	Metals & Mining — 0.8%
79	Freeport-McMoRan Copper & Gold, Inc. (a)		6,359
	Total Materials		12,712
	Total Common Stocks (Cost $622,839)		775,914

SEE NOTES TO FINANCIAL STATEMENTS.

20   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Short-Term Investment — 0.8%
	Investment Company — 0.8%
6,492	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (Cost $6,492)		6,492
Investment of Cash Collateral for Securities on Loan — 28.2%
	Investment Company — 28.2%
221,599	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l) (Cost $221,599)		221,599
	Total Investments — 127.7% (Cost $850,930)		1,004,005
	Liabilities in Excess of Other Assets — (27.7)%		(217,595	)
	NET ASSETS — 100.0%	$	786,410

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   21

JPMorgan Mid Cap Equity Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 96.3%
	Consumer Discretionary — 18.8%
	Auto Components — 0.9%
110	Gentex Corp. (c)		1,964
45	WABCO Holdings, Inc.		1,158
			3,122
	Automobiles — 0.4%
47	Harley-Davidson, Inc. (c)		1,189
	Distributors — 0.5%
48	Genuine Parts Co.		1,810
	Diversified Consumer Services — 1.1%
93	Education Management Corp. (a) (c)		2,051
78	H&R Block, Inc.		1,757
			3,808
	Hotels, Restaurants & Leisure — 2.5%
8	Chipotle Mexican Grill, Inc. (a)		723
39	Darden Restaurants, Inc.		1,367
39	Marriott International, Inc., Class A		1,060
42	Penn National Gaming, Inc. (a) (c)		1,139
81	Royal Caribbean Cruises Ltd. (a) (c)		2,050
52	Starwood Hotels & Resorts Worldwide, Inc. (c)		1,887
17	Yum! Brands, Inc.		594
			8,820
	Household Durables — 1.0%
60	Fortune Brands, Inc.		2,583
33	Jarden Corp.		1,008
			3,591
	Internet & Catalog Retail — 0.8%
12	Amazon.com, Inc. (a) (c)		1,628
42	Expedia, Inc. (a)		1,082
			2,710
	Media — 2.7%
53	Cablevision Systems Corp., Class A		1,379
94	Clear Channel Outdoor Holdings, Inc., Class A (a)		980
43	Discovery Communications, Inc., Class A (a)		1,313
59	Lamar Advertising Co., Class A (a)		1,822
22	Omnicom Group, Inc.		869
33	Scripps Networks Interactive, Inc., Class A		1,374
3	Washington Post Co. (The), Class B		1,519
			9,256
	Multiline Retail — 1.0%
16	Dollar General Corp. (a)		354
23	Kohl’s Corp. (a) (c)		1,262
45	Nordstrom, Inc. (c)		1,676
			3,292
	Specialty Retail — 6.8%
49	AutoNation, Inc. (a)		933
10	AutoZone, Inc. (a)		1,565
79	Bed Bath & Beyond, Inc. (a)		3,056
52	CarMax, Inc. (a) (c)		1,266
91	Chico’s FAS, Inc. (a) (c)		1,271
72	Dick’s Sporting Goods, Inc. (a) (c)		1,801
125	Gap, Inc. (The)		2,617
38	J Crew Group, Inc. (a) (c)		1,678
41	Sherwin-Williams Co. (The) (c)		2,540
103	Staples, Inc. (c)		2,520
35	Tiffany & Co.		1,492
41	TJX Cos., Inc.		1,488
67	Williams-Sonoma, Inc. (c)		1,400
			23,627
	Textiles, Apparel & Luxury Goods — 1.1%
23	Phillips-Van Heusen Corp.		944
41	V.F. Corp.		2,981
			3,925
	Total Consumer Discretionary		65,150
	Consumer Staples — 3.6%
	Beverages — 0.3%
19	Brown-Forman Corp., Class B		1,028
	Food & Staples Retailing — 1.0%
138	Safeway, Inc.		2,938
24	Whole Foods Market, Inc. (a)		656
			3,594
	Food Products — 0.9%
42	JM Smucker Co. (The)		2,575
10	McCormick & Co., Inc. (Non-Voting)		347
			2,922
	Household Products — 0.7%
19	Clorox Co.		1,171
19	Energizer Holdings, Inc. (a)		1,164
			2,335
	Personal Products — 0.4%
46	Avon Products, Inc.		1,452
	Tobacco — 0.3%
14	Lorillard, Inc.		1,099
	Total Consumer Staples		12,430

SEE NOTES TO FINANCIAL STATEMENTS.

22   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Energy — 5.7%
	Energy Equipment & Services — 0.9%
44	Cameron International Corp. (a)		1,854
20	Oceaneering International, Inc. (a) (c)		1,195
			3,049
	Oil, Gas & Consumable Fuels — 4.8%
40	Cabot Oil & Gas Corp.		1,741
90	CVR Energy, Inc. (a)		617
35	Devon Energy Corp.		2,595
64	Forest Oil Corp. (a) (c)		1,434
40	Kinder Morgan Management LLC (a)		2,201
17	Noble Energy, Inc. (c)		1,189
47	Southwestern Energy Co. (a)		2,289
66	Teekay Corp., (Canada)		1,534
149	Williams Cos., Inc. (The)		3,143
			16,743
	Total Energy		19,792
	Financials — 16.7%
	Capital Markets — 3.2%
9	Affiliated Managers Group, Inc. (a)		616
15	Ameriprise Financial, Inc.		582
6	BlackRock, Inc. (c)		1,440
46	Northern Trust Corp.		2,418
96	Och-Ziff Capital Management Group LLC, Class A		1,314
62	T. Rowe Price Group, Inc. (c)		3,310
76	TD AMERITRADE Holding Corp. (a)		1,473
			11,153
	Commercial Banks — 3.8%
27	BancorpSouth, Inc.		629
109	BB&T Corp.		2,758
26	BOK Financial Corp. (c)		1,212
19	City National Corp.		853
26	Cullen/Frost Bankers, Inc.		1,310
75	KeyCorp		414
44	M&T Bank Corp.		2,950
61	SunTrust Banks, Inc.		1,244
75	TCF Financial Corp.		1,027
30	Wilmington Trust Corp.		375
34	Zions Bancorp		437
			13,209
	Diversified Financial Services — 1.1%
8	IntercontinentalExchange, Inc. (a)		943
55	Moody’s Corp. (c)		1,471
45	MSCI, Inc., Class A (a) (c)		1,444
			3,858
	Insurance — 5.9%
34	ACE Ltd., (Switzerland) (a)		1,734
57	Assurant, Inc.		1,677
121	Cincinnati Financial Corp.		3,184
44	HCC Insurance Holdings, Inc. (c)		1,222
69	Loews Corp.		2,504
319	Old Republic International Corp.		3,198
98	OneBeacon Insurance Group Ltd., Class A		1,356
73	Principal Financial Group, Inc.		1,755
40	Transatlantic Holdings, Inc.		2,090
70	W.R. Berkley Corp.		1,735
			20,455
	Real Estate Investment Trusts (REITs) — 2.0%
128	Kimco Realty Corp.		1,732
10	Public Storage		839
40	Regency Centers Corp.		1,402
32	Ventas, Inc.		1,386
24	Vornado Realty Trust		1,704
			7,063
	Real Estate Management & Development — 0.4%
108	Brookfield Properties Corp., (Canada)		1,306
	Thrifts & Mortgage Finance — 0.3%
50	People’s United Financial, Inc.		832
	Total Financials		57,876
	Health Care — 9.6%
	Biotechnology — 1.0%
24	Alexion Pharmaceuticals, Inc. (a)		1,186
71	BioMarin Pharmaceutical, Inc. (a) (c)		1,343
38	Myriad Genetics, Inc. (a)		992
			3,521
	Health Care Equipment & Supplies — 1.6%
36	Becton, Dickinson & Co.		2,807
37	DENTSPLY International, Inc. (c)		1,295
23	Zimmer Holdings, Inc. (a)		1,348
			5,450
	Health Care Providers & Services — 5.3%
71	Brookdale Senior Living, Inc. (a)		1,299
52	Community Health Systems, Inc. (a)		1,855
66	Coventry Health Care, Inc. (a)		1,595
28	DaVita, Inc. (a)		1,668
25	Express Scripts, Inc. (a)		2,178
33	Humana, Inc. (a)		1,451
75	Lincare Holdings, Inc. (a)		2,795
98	UnitedHealth Group, Inc.		2,984

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   23

JPMorgan Mid Cap Equity Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Health Care Providers & Services — Continued
109	VCA Antech, Inc. (a) (c)		2,719
			18,544
	Health Care Technology — 0.4%
16	Cerner Corp. (a) (c)		1,296
	Life Sciences Tools & Services — 1.0%
30	Covance, Inc. (a) (c)		1,631
28	Illumina, Inc. (a) (c)		873
15	Life Technologies Corp. (a)		789
			3,293
	Pharmaceuticals — 0.3%
82	Biovail Corp., (Canada)		1,145
	Total Health Care		33,249
	Industrials — 12.9%
	Aerospace & Defense — 2.7%
12	Alliant Techsystems, Inc. (a)		1,024
22	Goodrich Corp. (c)		1,388
22	L-3 Communications Holdings, Inc.		1,947
45	Precision Castparts Corp. (c)		4,925
			9,284
	Airlines — 0.6%
176	Delta Air Lines, Inc. (a) (c)		2,002
	Building Products — 0.5%
45	Lennox International, Inc. (c)		1,772
	Commercial Services & Supplies — 2.3%
73	Corrections Corp. of America (a) (c)		1,798
105	Republic Services, Inc.		2,961
29	Stericycle, Inc. (a) (c)		1,575
52	Waste Connections, Inc. (a)		1,746
			8,080
	Construction & Engineering — 0.4%
53	Aecom Technology Corp. (a) (c)		1,455
	Electrical Equipment — 1.5%
31	Cooper Industries plc		1,318
5	First Solar, Inc. (a) (c)		682
64	Roper Industries, Inc. (c)		3,332
			5,332
	Industrial Conglomerates — 1.3%
89	Carlisle Cos., Inc. (c)		3,049
56	McDermott International, Inc. (a)		1,338
			4,387
	Machinery — 1.1%
29	Cummins, Inc.		1,345
21	Snap-On, Inc.		896
37	Wabtec Corp. (c)		1,514
			3,755
	Professional Services — 0.7%
30	FTI Consulting, Inc. (a) (c)		1,398
40	Robert Half International, Inc. (c)		1,069
			2,467
	Road & Rail — 1.2%
30	Canadian National Railway Co., (Canada)		1,604
53	Landstar System, Inc. (c)		2,039
13	Norfolk Southern Corp.		676
			4,319
	Trading Companies & Distributors — 0.6%
22	W.W. Grainger, Inc. (c)		2,130
	Total Industrials		44,983
	Information Technology — 16.6%
	Communications Equipment — 0.9%
48	CommScope, Inc. (a)		1,271
35	F5 Networks, Inc. (a)		1,875
			3,146
	Computers & Peripherals — 1.0%
38	Lexmark International, Inc., Class A (a)		975
70	NetApp, Inc. (a)		2,407
			3,382
	Electronic Equipment, Instruments & Components — 3.3%
105	Amphenol Corp., Class A		4,841
55	Arrow Electronics, Inc. (a)		1,617
25	Dolby Laboratories, Inc., Class A (a) (c)		1,173
160	Tyco Electronics Ltd., (Switzerland)		3,933
			11,564
	Internet Software & Services — 0.6%
20	Equinix, Inc. (a) (c)		2,155
	IT Services — 4.0%
26	Alliance Data Systems Corp. (a) (c)		1,673
137	Amdocs Ltd., (United Kingdom) (a)		3,916
73	Cognizant Technology Solutions Corp., Class A (a)		3,321
31	Hewitt Associates, Inc., Class A (a) (c)		1,314
8	MasterCard, Inc., Class A (c)		2,035
87	Western Union Co. (The)		1,644
			13,903

SEE NOTES TO FINANCIAL STATEMENTS.

24   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Semiconductors & Semiconductor Equipment — 3.1%
53	Avago Technologies Ltd., (Singapore) (a)		970
54	Broadcom Corp., Class A (a)		1,711
36	Lam Research Corp. (a) (c)		1,404
149	Marvell Technology Group Ltd., (Bermuda) (a) (c)		3,087
89	MEMC Electronic Materials, Inc. (a)		1,216
41	Microchip Technology, Inc. (c)		1,194
37	Varian Semiconductor Equipment Associates, Inc. (a)		1,317
			10,899
	Software — 3.7%
37	ANSYS, Inc. (a) (c)		1,625
219	Cadence Design Systems, Inc. (a)		1,314
38	Concur Technologies, Inc. (a) (c)		1,637
74	Jack Henry & Associates, Inc.		1,716
29	MICROS Systems, Inc. (a) (c)		903
88	Nuance Communications, Inc. (a) (c)		1,373
19	Salesforce.com, Inc. (a) (c)		1,372
40	Sybase, Inc. (a) (c)		1,749
49	Synopsys, Inc. (a)		1,089
			12,778
	Total Information Technology		57,827
	Materials — 4.0%
	Chemicals — 2.3%
35	Airgas, Inc.		1,652
60	Albemarle Corp.		2,172
28	PPG Industries, Inc.		1,657
15	Praxair, Inc.		1,221
29	Sigma-Aldrich Corp.		1,465
			8,167
	Construction Materials — 0.2%
12	Vulcan Materials Co.		648
	Containers & Packaging — 1.2%
50	Ball Corp.		2,585
30	Greif, Inc., Class A		1,619
			4,204
	Metals & Mining — 0.3%
13	Freeport-McMoRan Copper & Gold, Inc. (a)		1,044
	Total Materials		14,063
	Telecommunication Services — 1.9%
	Diversified Telecommunication Services — 1.3%
50	CenturyTel, Inc.		1,810
96	tw telecom, inc. (a) (c)		1,653
88	Windstream Corp.		969
			4,432
	Wireless Telecommunication Services — 0.6%
70	Telephone & Data Systems, Inc.		2,102
	Total Telecommunication Services		6,534
	Utilities — 6.5%
	Electric Utilities — 1.5%
89	American Electric Power Co., Inc.		3,093
92	Westar Energy, Inc.		1,996
			5,089
	Gas Utilities — 2.0%
63	Energen Corp.		2,925
50	EQT Corp.		2,209
44	ONEOK, Inc.		1,948
			7,082
	Multi-Utilities — 2.5%
168	CMS Energy Corp.		2,623
36	NSTAR		1,314
50	PG&E Corp.		2,247
114	Xcel Energy, Inc.		2,427
			8,611
	Water Utilities — 0.5%
73	American Water Works Co., Inc.		1,643
	Total Utilities		22,425
	Total Common Stocks (Cost $273,230)		334,329
Short-Term Investment — 3.1%
	Investment Company — 3.1%
10,977	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (m) (Cost $10,977)		10,977
Investment of Cash Collateral for Securities on Loan — 21.0%
	Investment Company — 21.0%
72,813	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l) (Cost $72,813)		72,813
	Total Investments — 120.4% (Cost $357,020)		418,119
	Liabilities in Excess of Other Assets — (20.4)%		(70,907	)
	NET ASSETS — 100.0%	$	347,212

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   25

JPMorgan Mid Cap Growth Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 99.3%
	Consumer Discretionary — 19.9%
	Auto Components — 1.2%
902	Gentex Corp.		16,105
	Automobiles — 0.7%
387	Harley-Davidson, Inc.		9,750
	Diversified Consumer Services — 1.2%
784	Education Management Corp. (a)		17,251
	Hotels, Restaurants & Leisure — 3.4%
67	Chipotle Mexican Grill, Inc. (a) (c)		5,924
343	Penn National Gaming, Inc. (a)		9,334
665	Royal Caribbean Cruises Ltd. (a)		16,814
423	Starwood Hotels & Resorts Worldwide, Inc.		15,465
			47,537
	Internet & Catalog Retail — 1.0%
99	Amazon.com, Inc. (a)		13,304
	Media — 1.8%
351	Discovery Communications, Inc., Class A (a)		10,753
481	Lamar Advertising Co., Class A (a)		14,945
			25,698
	Multiline Retail — 1.7%
192	Kohl’s Corp. (a)		10,355
366	Nordstrom, Inc.		13,750
			24,105
	Specialty Retail — 7.5%
415	Bed Bath & Beyond, Inc. (a)		16,016
428	CarMax, Inc. (a)		10,372
742	Chico’s FAS, Inc. (a)		10,422
593	Dick’s Sporting Goods, Inc. (a)		14,753
307	J Crew Group, Inc. (a)		13,753
256	Sherwin-Williams Co. (The)		15,770
484	Staples, Inc.		11,907
553	Williams-Sonoma, Inc.		11,487
			104,480
	Textiles, Apparel & Luxury Goods — 1.4%
190	Phillips-Van Heusen Corp.		7,746
170	V.F. Corp.		12,451
			20,197
	Total Consumer Discretionary		278,427
	Consumer Staples — 1.2%
	Food & Staples Retailing — 0.4%
196	Whole Foods Market, Inc. (a)		5,375
	Personal Products — 0.8%
378	Avon Products, Inc.		11,907
	Total Consumer Staples		17,282
	Energy — 5.7%
	Energy Equipment & Services — 1.8%
363	Cameron International Corp. (a)		15,180
167	Oceaneering International, Inc. (a)		9,779
			24,959
	Oil, Gas & Consumable Fuels — 3.9%
328	Cabot Oil & Gas Corp.		14,287
529	Forest Oil Corp. (a)		11,761
137	Noble Energy, Inc.		9,750
389	Southwestern Energy Co. (a)		18,767
			54,565
	Total Energy		79,524
	Financials — 9.9%
	Capital Markets — 4.4%
51	BlackRock, Inc.		11,889
229	Northern Trust Corp.		11,974
784	Och-Ziff Capital Management Group LLC, Class A		10,766
290	T. Rowe Price Group, Inc.		15,434
623	TD AMERITRADE Holding Corp. (a)		12,082
			62,145
	Commercial Banks — 1.5%
424	BB&T Corp.		10,754
209	BOK Financial Corp.		9,932
			20,686
	Diversified Financial Services — 2.3%
69	IntercontinentalExchange, Inc. (a)		7,749
450	Moody’s Corp. (c)		12,055
372	MSCI, Inc., Class A (a)		11,842
			31,646
	Insurance — 1.7%
282	ACE Ltd., (Switzerland) (a)		14,198
358	HCC Insurance Holdings, Inc.		10,024
			24,222
	Total Financials		138,699
	Health Care — 13.7%
	Biotechnology — 2.1%
199	Alexion Pharmaceuticals, Inc. (a)		9,710
585	BioMarin Pharmaceutical, Inc. (a)		11,012
311	Myriad Genetics, Inc. (a)		8,122
			28,844

SEE NOTES TO FINANCIAL STATEMENTS.

26   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Health Care Equipment & Supplies — 1.5%
302	DENTSPLY International, Inc.		10,613
187	Zimmer Holdings, Inc. (a)		11,059
			21,672
	Health Care Providers & Services — 6.7%
591	Brookdale Senior Living, Inc. (a)		10,741
232	DaVita, Inc. (a)		13,654
206	Express Scripts, Inc. (a)		17,843
271	Humana, Inc. (a)		11,900
803	UnitedHealth Group, Inc.		24,463
603	VCA Antech, Inc. (a)		15,031
			93,632
	Health Care Technology — 0.8%
129	Cerner Corp. (a)		10,610
	Life Sciences Tools & Services — 1.9%
245	Covance, Inc. (a)		13,367
234	Illumina, Inc. (a)		7,163
123	Life Technologies Corp. (a)		6,440
			26,970
	Pharmaceuticals — 0.7%
672	Biovail Corp., (Canada)		9,378
	Total Health Care		191,106
	Industrials — 18.1%
	Aerospace & Defense — 2.3%
177	Goodrich Corp.		11,360
185	Precision Castparts Corp.		20,442
			31,802
	Airlines — 1.2%
1,442	Delta Air Lines, Inc. (a)		16,415
	Building Products — 1.0%
372	Lennox International, Inc.		14,515
	Commercial Services & Supplies — 3.0%
601	Corrections Corp. of America (a)		14,745
234	Stericycle, Inc. (a)		12,897
430	Waste Connections, Inc. (a)		14,325
			41,967
	Construction & Engineering — 0.9%
434	Aecom Technology Corp. (a)		11,927
	Electrical Equipment — 1.6%
42	First Solar, Inc. (a) (c)		5,638
317	Roper Industries, Inc.		16,619
			22,257
	Industrial Conglomerates — 1.6%
325	Carlisle Cos., Inc.		11,121
457	McDermott International, Inc. (a)		10,968
			22,089
	Machinery — 1.7%
240	Cummins, Inc.		11,022
304	Wabtec Corp.		12,400
			23,422
	Professional Services — 1.4%
243	FTI Consulting, Inc. (a)		11,446
328	Robert Half International, Inc.		8,771
			20,217
	Road & Rail — 2.1%
242	Canadian National Railway Co., (Canada)		13,144
432	Landstar System, Inc.		16,729
			29,873
	Trading Companies & Distributors — 1.3%
181	W.W. Grainger, Inc.		17,497
	Total Industrials		251,981
	Information Technology — 27.5%
	Communications Equipment — 1.8%
393	CommScope, Inc. (a)		10,413
290	F5 Networks, Inc. (a)		15,359
			25,772
	Computers & Peripherals — 1.4%
574	NetApp, Inc. (a)		19,736
	Electronic Equipment, Instruments & Components — 3.1%
478	Amphenol Corp., Class A		22,068
202	Dolby Laboratories, Inc., Class A (a)		9,622
501	Tyco Electronics Ltd., (Switzerland)		12,302
			43,992
	Internet Software & Services — 1.3%
167	Equinix, Inc. (a)		17,686
	IT Services — 8.2%
213	Alliance Data Systems Corp. (a) (c)		13,732
1,126	Amdocs Ltd., (United Kingdom) (a)		32,114
601	Cognizant Technology Solutions Corp., Class A (a)		27,225
255	Hewitt Associates, Inc., Class A (a)		10,781
65	MasterCard, Inc., Class A		16,659
715	Western Union Co. (The)		13,468
			113,979

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   27

JPMorgan Mid Cap Growth Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Semiconductors & Semiconductor Equipment — 5.8%
446	Broadcom Corp., Class A (a)		14,029
294	Lam Research Corp. (a)		11,512
1,220	Marvell Technology Group Ltd., (Bermuda) (a)		25,307
732	MEMC Electronic Materials, Inc. (a)		9,967
337	Microchip Technology, Inc.		9,779
301	Varian Semiconductor Equipment Associates, Inc. (a)		10,800
			81,394
	Software — 5.9%
307	ANSYS, Inc. (a)		13,330
1,798	Cadence Design Systems, Inc. (a)		10,772
314	Concur Technologies, Inc. (a)		13,432
238	MICROS Systems, Inc. (a)		7,397
724	Nuance Communications, Inc. (a) (c)		11,247
152	Salesforce.com, Inc. (a)		11,235
331	Sybase, Inc. (a)		14,344
			81,757
	Total Information Technology		384,316
	Materials — 2.3%
	Chemicals — 0.7%
125	Praxair, Inc.		10,023
	Containers & Packaging — 1.0%
246	Greif, Inc., Class A		13,252
	Metals & Mining — 0.6%
107	Freeport-McMoRan Copper & Gold, Inc. (a)		8,551
	Total Materials		31,826
	Telecommunication Services — 1.0%
	Diversified Telecommunication Services — 1.0%
804	tw telecom, inc. (a)		13,780
	Total Common Stocks (Cost $1,074,813)		1,386,941
Short-Term Investment — 1.3%
	Investment Company — 1.3%
17,468	JPMorgan Liquid Assets Money Market Fund, Institutional Class Shares, 0.170% (b) (l) (Cost $17,468)		17,468

 

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
Investments of Cash Collateral for Securities on Loan — 1.9%
	Corporate Notes — 0.6%
7,000	Monumental Global Funding III, VAR, 0.312%, 05/24/10 (e)		6,936
1,000	Monumental Global Funding III, VAR, 0.395%, 03/26/10 (e)		993
			7,929

 

SHARES	SECURITY DESCRIPTION	VALUE($)
	Investment Company — 1.3%
18,521	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l)		18,521
	Total Investments of Cash Collateral for Securities on Loan (Cost $26,521)		26,450
	Total Investments — 102.5% (Cost $1,118,802)		1,430,859
	Liabilities in Excess of Other Assets — (2.5)%		(34,331	)
	NET ASSETS — 100.0%	$	1,396,528

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

28   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

JPMorgan Mid Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — 98.1%
	Consumer Discretionary — 18.5%
	Auto Components — 0.7%
1,369	WABCO Holdings, Inc.		35,296
	Distributors — 1.1%
1,461	Genuine Parts Co.		55,475
	Diversified Consumer Services — 1.0%
2,377	H&R Block, Inc.		53,772
	Hotels, Restaurants & Leisure — 1.8%
1,189	Darden Restaurants, Inc.		41,700
1,188	Marriott International, Inc., Class A		32,362
522	Yum! Brands, Inc.		18,251
			92,313
	Household Durables — 2.1%
1,833	Fortune Brands, Inc.		79,190
992	Jarden Corp.		30,673
			109,863
	Internet & Catalog Retail — 0.6%
1,284	Expedia, Inc. (a)		33,004
	Media — 3.7%
1,631	Cablevision Systems Corp., Class A		42,105
3,297	Clear Channel Outdoor Holdings, Inc., Class A (a)		34,257
676	Omnicom Group, Inc.		26,450
1,011	Scripps Networks Interactive, Inc., Class A		41,944
106	Washington Post Co. (The), Class B		46,611
			191,367
	Multiline Retail — 0.2%
485	Dollar General Corp. (a)		10,879
	Specialty Retail — 6.4%
1,481	AutoNation, Inc. (a)		28,360
303	AutoZone, Inc. (a)		47,892
868	Bed Bath & Beyond, Inc. (a)		33,535
3,833	Gap, Inc. (The)		80,301
303	Sherwin-Williams Co. (The)		18,654
1,323	Staples, Inc.		32,540
1,060	Tiffany & Co.		45,582
1,245	TJX Cos., Inc.		45,505
			332,369
	Textiles, Apparel & Luxury Goods — 0.9%
611	V.F. Corp.		44,746
	Total Consumer Discretionary		959,084
	Consumer Staples — 6.1%
	Beverages — 0.6%
586	Brown-Forman Corp., Class B		31,385
	Food & Staples Retailing — 1.7%
4,234	Safeway, Inc.		90,142
	Food Products — 1.7%
1,283	JM Smucker Co. (The)		79,201
296	McCormick & Co., Inc. (Non-Voting)		10,687
			89,888
	Household Products — 1.4%
586	Clorox Co.		35,731
581	Energizer Holdings, Inc. (a)		35,622
			71,353
	Tobacco — 0.7%
418	Lorillard, Inc.		33,560
	Total Consumer Staples		316,328
	Energy — 6.0%
	Oil, Gas & Consumable Fuels — 6.0%
2,722	CVR Energy, Inc. (a)		18,674
1,082	Devon Energy Corp.		79,537
1,232	Kinder Morgan Management LLC (a)		67,306
2,021	Teekay Corp., (Canada)		46,911
4,577	Williams Cos., Inc. (The)		96,481
	Total Energy		308,909
	Financials — 24.6%
	Capital Markets — 2.1%
278	Affiliated Managers Group, Inc. (a)		18,700
454	Ameriprise Financial, Inc.		17,616
558	Northern Trust Corp.		29,255
819	T. Rowe Price Group, Inc.		43,616
			109,187
	Commercial Banks — 6.6%
810	BancorpSouth, Inc.		18,996
1,742	BB&T Corp.		44,194
568	City National Corp. (c)		25,887
800	Cullen/Frost Bankers, Inc.		39,995
2,243	KeyCorp		12,449
1,352	M&T Bank Corp. (c)		90,458
1,871	SunTrust Banks, Inc.		37,963
2,664	TCF Financial Corp. (c)		36,282
1,756	Wilmington Trust Corp. (c)		21,665
1,025	Zions Bancorp (c)		13,155
			341,044
	Insurance — 10.4%
1,753	Assurant, Inc.		51,665
3,725	Cincinnati Financial Corp.		97,735
2,114	Loews Corp.		76,858

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   29

JPMorgan Mid Cap Value Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Insurance — Continued
9,780	Old Republic International Corp.		98,195
3,191	OneBeacon Insurance Group Ltd., Class A		43,977
2,236	Principal Financial Group, Inc.		53,758
1,227	Transatlantic Holdings, Inc.		63,955
2,156	W.R. Berkley Corp.		53,129
			539,272
	Real Estate Investment Trusts (REITs) — 4.2%
3,917	Kimco Realty Corp.		52,993
323	Public Storage		26,304
1,221	Regency Centers Corp.		42,812
995	Ventas, Inc.		43,499
764	Vornado Realty Trust		53,458
			219,066
	Real Estate Management & Development — 0.8%
3,305	Brookfield Properties Corp., (Canada) (c)		40,062
	Thrifts & Mortgage Finance — 0.5%
1,513	People’s United Financial, Inc.		25,264
	Total Financials		1,273,895
	Health Care — 5.9%
	Health Care Equipment & Supplies — 1.7%
1,093	Becton, Dickinson & Co.		86,178
	Health Care Providers & Services — 4.2%
1,596	Community Health Systems, Inc. (a)		56,822
2,010	Coventry Health Care, Inc. (a)		48,811
2,309	Lincare Holdings, Inc. (a) (c)		85,721
1,081	VCA Antech, Inc. (a)		26,946
			218,300
	Total Health Care		304,478
	Industrials — 8.4%
	Aerospace & Defense — 3.2%
353	Alliant Techsystems, Inc. (a)		31,154
685	L-3 Communications Holdings, Inc.		59,578
677	Precision Castparts Corp.		74,685
			165,417
	Commercial Services & Supplies — 1.8%
3,284	Republic Services, Inc.		92,980
	Electrical Equipment — 1.5%
943	Cooper Industries plc		40,227
761	Roper Industries, Inc.		39,832
			80,059
	Industrial Conglomerates — 1.0%
1,520	Carlisle Cos., Inc.		52,058
	Machinery — 0.5%
643	Snap-On, Inc.		27,172
	Road & Rail — 0.4%
390	Norfolk Southern Corp.		20,454
	Total Industrials		438,140
	Information Technology — 6.5%
	Computers & Peripherals — 0.6%
1,142	Lexmark International, Inc., Class A (a)		29,662
	Electronic Equipment, Instruments & Components — 3.7%
1,427	Amphenol Corp., Class A		65,908
1,714	Arrow Electronics, Inc. (a)		50,749
3,038	Tyco Electronics Ltd., (Switzerland)		74,585
			191,242
	Semiconductors & Semiconductor Equipment — 0.6%
1,613	Avago Technologies Ltd., (Singapore)		29,499
	Software — 1.6%
2,273	Jack Henry & Associates, Inc.		52,540
1,508	Synopsys, Inc. (a)		33,592
			86,132
	Total Information Technology		336,535
	Materials — 6.0%
	Chemicals — 4.1%
1,061	Airgas, Inc.		50,487
1,877	Albemarle Corp.		68,275
866	PPG Industries, Inc.		50,690
886	Sigma-Aldrich Corp.		44,749
			214,201
	Construction Materials — 0.4%
371	Vulcan Materials Co.		19,551
	Containers & Packaging — 1.5%
1,533	Ball Corp.		79,260
	Total Materials		313,012
	Telecommunication Services — 2.9%
	Diversified Telecommunication Services — 1.7%
1,531	CenturyTel, Inc.		55,441
2,770	Windstream Corp.		30,444
			85,885
	Wireless Telecommunication Services — 1.2%
2,140	Telephone & Data Systems, Inc.		64,615
	Total Telecommunication Services		150,500

SEE NOTES TO FINANCIAL STATEMENTS.

30   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Common Stocks — Continued
	Utilities — 13.2%
	Electric Utilities — 3.0%
2,730	American Electric Power Co., Inc.		94,987
2,814	Westar Energy, Inc.		61,122
			156,109
	Gas Utilities — 4.2%
1,917	Energen Corp.		89,697
1,543	EQT Corp.		67,777
1,338	ONEOK, Inc.		59,652
			217,126
	Multi-Utilities — 5.1%
5,138	CMS Energy Corp.		80,461
1,089	NSTAR		40,075
1,544	PG&E Corp.		68,939
3,509	Xcel Energy, Inc.		74,463
			263,938
	Water Utilities — 0.9%
2,243	American Water Works Co., Inc.		50,272
	Total Utilities		687,445
	Total Common Stocks (Cost $4,676,635)		5,088,326
Short-Term Investment — 2.2%
	Investment Company — 2.2%
113,894	JPMorgan Prime Money Market Fund, Institutional Class Shares, 0.100% (b) (l) (Cost $113,894)		113,894

 

PRINCIPAL AMOUNT($)	SECURITY DESCRIPTION	VALUE($)
Investments of Cash Collateral for Securities on Loan — 2.4%
	Corporate Note — 0.1%
3,000	Monumental Global Funding III, VAR, 0.312%, 05/24/10 (e)		2,972

 

SHARES	SECURITY DESCRIPTION	VALUE($)
	Investment Company — 2.3%
120,749	JPMorgan Prime Money Market Fund, Capital Shares, 0.130% (b) (l)		120,749
	Total Investments of Cash Collateral for Securities on Loan (Cost $123,749)		123,721
	Total Investments — 102.7% (Cost $4,914,278)		5,325,941
	Liabilities in Excess of Other Assets — (2.7)%		(138,396	)
	NET ASSETS — 100.0%	$	5,187,545

 

Percentages indicated are based on net assets.

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   31

JPMorgan Multi-Cap Market Neutral Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — 98.2% (j)
	Common Stocks — 93.4%
	Consumer Discretionary — 16.9%
	Auto Components — 1.0%
98	Cooper Tire & Rubber Co.		1,966
109	Goodyear Tire & Rubber Co. (The) (a)		1,532
79	TRW Automotive Holdings Corp. (a)		1,890
44	WABCO Holdings, Inc.		1,126
			6,514
	Automobiles — 0.5%
231	Ford Motor Co. (a)		2,311
29	Thor Industries, Inc.		898
			3,209
	Diversified Consumer Services — 1.3%
20	Apollo Group, Inc., Class A (a)		1,196
17	Career Education Corp. (a)		386
17	Coinstar, Inc. (a)		480
121	Corinthian Colleges, Inc. (a)		1,662
87	Regis Corp.		1,356
168	Service Corp. International		1,380
59	Weight Watchers International, Inc.		1,727
			8,187
	Hotels, Restaurants & Leisure — 2.1%
60	Ameristar Casinos, Inc.		912
35	Bally Technologies, Inc. (a)		1,434
51	Bob Evans Farms, Inc.		1,473
95	Brinker International, Inc.		1,411
92	Cheesecake Factory, Inc. (The) (a)		1,988
30	Darden Restaurants, Inc.		1,065
63	Jack in the Box, Inc. (a)		1,235
61	Penn National Gaming, Inc. (a)		1,646
120	Wyndham Worldwide Corp.		2,423
			13,587
	Household Durables — 2.7%
128	D.R. Horton, Inc.		1,395
34	Fortune Brands, Inc.		1,472
65	Garmin Ltd., (Cayman Islands)		1,986
83	Jarden Corp.		2,570
64	KB Home		876
94	Leggett & Platt, Inc.		1,917
31	Mohawk Industries, Inc. (a)		1,498
110	Newell Rubbermaid, Inc.		1,656
3	NVR, Inc. (a)		1,897
64	Tempur-Pedic International, Inc. (a)		1,513
			16,780
	Internet & Catalog Retail — 1.3%
14	Amazon.com, Inc. (a)		1,838
101	Expedia, Inc. (a)		2,597
39	Netflix, Inc. (a)		2,175
8	priceline.com, Inc. (a)		1,739
			8,349
	Leisure Equipment & Products — 0.2%
57	Pool Corp.		1,093
	Media — 1.9%
82	DISH Network Corp., Class A		1,694
194	Gannett Co., Inc.		2,887
67	Liberty Global, Inc., Class A (a)		1,477
70	Liberty Media Corp. - Capital, Class A (a)		1,670
90	New York Times Co. (The), Class A (a)		1,117
38	Scripps Networks Interactive, Inc., Class A		1,559
63	Time Warner, Inc.		1,840
			12,244
	Multiline Retail — 0.9%
53	Big Lots, Inc. (a)		1,539
36	Dollar Tree, Inc. (a)		1,719
15	Family Dollar Stores, Inc.		429
133	Macy’s, Inc.		2,237
			5,924
	Specialty Retail — 3.6%
44	Aaron’s, Inc.		1,214
37	Advance Auto Parts, Inc.		1,511
59	Aeropostale, Inc. (a)		2,017
100	AutoNation, Inc. (a)		1,908
15	Buckle, Inc. (The)		448
107	Cabela’s, Inc. (a)		1,528
37	Collective Brands, Inc. (a)		851
39	Dick’s Sporting Goods, Inc. (a)		969
84	Dress Barn, Inc. (a)		1,934
165	Foot Locker, Inc.		1,833
28	Gymboree Corp. (a)		1,239
124	Limited Brands, Inc.		2,384
108	Penske Auto Group, Inc. (a)		1,636
69	Rent-A-Center, Inc. (a)		1,223
37	Ross Stores, Inc.		1,598
9	Sherwin-Williams Co. (The)		526
			22,819
	Textiles, Apparel & Luxury Goods — 1.4%
79	Carter’s, Inc. (a)		2,067
25	Deckers Outdoor Corp. (a)		2,531
48	Fossil, Inc. (a)		1,599

SEE NOTES TO FINANCIAL STATEMENTS.

32   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
	Textiles, Apparel & Luxury Goods — Continued
130	Jones Apparel Group, Inc.		2,085
18	Phillips-Van Heusen Corp.		739
			9,021
	Total Consumer Discretionary		107,727
	Consumer Staples — 4.6%
	Beverages — 0.4%
88	Coca-Cola Enterprises, Inc.		1,870
31	Constellation Brands, Inc., Class A (a)		497
6	Dr. Pepper Snapple Group, Inc.		164
			2,531
	Food & Staples Retailing — 0.7%
953	Rite Aid Corp. (a)		1,440
121	SUPERVALU, Inc.		1,536
42	SYSCO Corp.		1,173
			4,149
	Food Products — 2.0%
17	Archer-Daniels-Midland Co.		523
44	Dean Foods Co. (a)		792
169	Del Monte Foods Co.		1,914
78	Fresh Del Monte Produce, Inc., (Cayman Islands) (a)		1,713
30	Kraft Foods, Inc., Class A		825
27	Lancaster Colony Corp.		1,325
34	Sanderson Farms, Inc.		1,436
201	Sara Lee Corp.		2,453
141	Tyson Foods, Inc., Class A		1,735
			12,716
	Household Products — 0.0% (g)
3	Kimberly-Clark Corp.		197
	Personal Products — 0.9%
102	Bare Escentuals, Inc. (a)		1,244
25	Estee Lauder Cos., Inc. (The), Class A		1,210
51	Herbalife Ltd., (Cayman Islands)		2,072
19	NBTY, Inc. (a)		823
15	Nu Skin Enterprises, Inc., Class A		404
			5,753
	Tobacco — 0.6%
43	Reynolds American, Inc.		2,257
34	Universal Corp.		1,555
			3,812
	Total Consumer Staples		29,158
	Energy — 6.9%
	Energy Equipment & Services — 2.9%
5	Diamond Offshore Drilling, Inc.		491
26	Dresser-Rand Group, Inc. (a)		814
21	Exterran Holdings, Inc. (a)		440
214	Global Industries Ltd. (a)		1,523
43	Gulfmark Offshore, Inc. (a)		1,226
17	Nabors Industries Ltd., (Bermuda) (a)		367
43	National Oilwell Varco, Inc.		1,887
53	Noble Corp., (Switzerland)		2,152
54	Oil States International, Inc. (a)		2,140
55	Pride International, Inc. (a)		1,739
85	Rowan Cos., Inc. (a)		1,935
12	Tidewater, Inc.		560
4	Transocean Ltd., (Switzerland) (a)		320
71	Unit Corp. (a)		2,997
			18,591
	Oil, Gas & Consumable Fuels — 4.0%
47	Berry Petroleum Co., Class A		1,370
32	Cabot Oil & Gas Corp.		1,397
37	ConocoPhillips		1,907
225	El Paso Corp.		2,211
24	Hess Corp.		1,429
52	Newfield Exploration Co. (a)		2,506
13	Noble Energy, Inc.		893
20	Occidental Petroleum Corp.		1,611
29	Peabody Energy Corp.		1,331
10	Pioneer Natural Resources Co.		484
96	Quicksilver Resources, Inc. (a)		1,443
67	St. Mary Land & Exploration Co.		2,284
78	Tesoro Corp.		1,057
43	Williams Cos., Inc. (The)		907
99	World Fuel Services Corp.		2,642
43	XTO Energy, Inc.		2,004
			25,476
	Total Energy		44,067
	Financials — 9.1%
	Capital Markets — 0.9%
60	American Capital Ltd. (a)		147
16	Ameriprise Financial, Inc.		638
45	Apollo Investment Corp.		432
41	Bank of New York Mellon Corp. (The)		1,138
10	Goldman Sachs Group, Inc. (The)		1,753
1	Jefferies Group, Inc. (a)		18
8	Northern Trust Corp.		439

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   33

JPMorgan Multi-Cap Market Neutral Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES		SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
		Capital Markets — Continued
25		State Street Corp.		1,068
				5,633
		Commercial Banks — 1.7%
79		Associated Banc-Corp.		873
10		Bank of Hawaii Corp.		458
26		BOK Financial Corp.		1,214
17		Commerce Bancshares, Inc.		639
—	(h)	FirstMerit Corp.		—	(h)
18		M&T Bank Corp.		1,217
13		PNC Financial Services Group, Inc.		680
31		Prosperity Bancshares, Inc.		1,239
16		SVB Financial Group (a)		684
49		TCF Financial Corp.		666
65		Trustmark Corp.		1,475
61		United Bankshares, Inc.		1,219
28		Wells Fargo & Co.		749
				11,113
		Consumer Finance — 0.6%
67		AmeriCredit Corp. (a)		1,280
36		Cash America International, Inc.		1,244
122		SLM Corp. (a)		1,377
				3,901
		Diversified Financial Services — 0.1%
27		MSCI, Inc., Class A (a)		854
		Insurance — 5.1%
25		ACE Ltd., (Switzerland) (a)		1,250
32		Aflac, Inc.		1,488
36		Allied World Assurance Co. Holdings Ltd., (Bermuda)		1,668
5		Allstate Corp. (The)		150
56		American Financial Group, Inc.		1,391
20		Arch Capital Group Ltd., (Bermuda) (a)		1,431
59		Aspen Insurance Holdings Ltd., (Bermuda)		1,501
40		Assurant, Inc.		1,175
14		Chubb Corp.		687
62		CNA Financial Corp. (a)		1,484
198		Conseco, Inc. (a)		992
61		Delphi Financial Group, Inc., Class A		1,355
43		Endurance Specialty Holdings Ltd., (Bermuda)		1,587
16		Everest Re Group Ltd., (Bermuda)		1,347
36		Hartford Financial Services Group, Inc.		844
32		HCC Insurance Holdings, Inc.		888
85		Montpelier Re Holdings Ltd., (Bermuda)		1,469
18		PartnerRe Ltd., (Bermuda)		1,339
44		Platinum Underwriters Holdings Ltd., (Bermuda)		1,684
25		ProAssurance Corp. (a)		1,331
63		Protective Life Corp.		1,050
28		Prudential Financial, Inc.		1,375
29		RenaissanceRe Holdings Ltd., (Bermuda)		1,554
10		StanCorp Financial Group, Inc.		408
21		Transatlantic Holdings, Inc.		1,090
11		Unum Group		214
88		XL Capital Ltd., (Bermuda), Class A		1,616
				32,368
		Real Estate Investment Trusts (REITs) — 0.5%
17		AMB Property Corp.		425
14		Liberty Property Trust		449
19		Macerich Co. (The)		677
13		Mack-Cali Realty Corp.		452
7		Taubman Centers, Inc.		257
9		Vornado Realty Trust		636
				2,896
		Thrifts & Mortgage Finance — 0.2%
105		New York Community Bancorp, Inc.		1,522
		Total Financials		58,287
		Health Care — 11.2%
		Biotechnology — 1.3%
77		Alkermes, Inc. (a)		728
33		Amgen, Inc. (a)		1,880
27		Amylin Pharmaceuticals, Inc. (a)		386
11		Biogen Idec, Inc. (a)		591
30		Cephalon, Inc. (a)		1,868
33		Cubist Pharmaceuticals, Inc. (a)		625
61		Isis Pharmaceuticals, Inc. (a)		681
72		PDL BioPharma, Inc.		491
37		Regeneron Pharmaceuticals, Inc. (a)		905
				8,155
		Health Care Equipment & Supplies — 2.0%
42		Align Technology, Inc. (a)		741
106		American Medical Systems Holdings, Inc. (a)		2,053
15		CareFusion Corp. (a)		368
81		ev3, Inc. (a)		1,083
21		Hill-Rom Holdings, Inc.		508
109		Hologic, Inc. (a)		1,581
38		Hospira, Inc. (a)		1,948
34		Integra LifeSciences Holdings Corp. (a)		1,234
25		Inverness Medical Innovations, Inc. (a)		1,055

SEE NOTES TO FINANCIAL STATEMENTS.

34   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
	Health Care Equipment & Supplies — Continued
52	Kinetic Concepts, Inc. (a)		1,945
			12,516
	Health Care Providers & Services — 4.7%
59	Amedisys, Inc. (a)		2,868
76	AmerisourceBergen Corp.		1,988
98	Centene Corp. (a)		2,079
61	Community Health Systems, Inc. (a)		2,184
92	Coventry Health Care, Inc. (a)		2,229
66	Health Management Associates, Inc., Class A (a)		478
78	Health Net, Inc. (a)		1,815
101	Healthsouth Corp. (a)		1,898
118	Healthspring, Inc. (a)		2,078
52	Humana, Inc. (a)		2,283
15	McKesson Corp.		954
16	Medco Health Solutions, Inc. (a)		1,042
79	Omnicare, Inc.		1,901
40	PSS World Medical, Inc. (a)		895
230	Tenet Healthcare Corp. (a)		1,242
13	UnitedHealth Group, Inc.		389
31	WellCare Health Plans, Inc. (a)		1,152
37	WellPoint, Inc. (a)		2,140
			29,615
	Life Sciences Tools & Services — 0.2%
27	Life Technologies Corp. (a)		1,394
	Pharmaceuticals — 3.0%
53	Eli Lilly & Co.		1,901
101	Endo Pharmaceuticals Holdings, Inc. (a)		2,076
84	Forest Laboratories, Inc. (a)		2,685
162	King Pharmaceuticals, Inc. (a)		1,987
86	Medicis Pharmaceutical Corp., Class A		2,330
73	Mylan, Inc. (a)		1,348
27	Perrigo Co.		1,056
132	Pfizer, Inc.		2,395
41	Salix Pharmaceuticals Ltd. (a)		1,031
67	Valeant Pharmaceuticals International (a)		2,126
12	Watson Pharmaceuticals, Inc. (a)		466
			19,401
	Total Health Care		71,081
	Industrials — 13.9%
	Aerospace & Defense — 2.6%
21	Alliant Techsystems, Inc. (a)		1,862
33	Cubic Corp.		1,217
32	Esterline Technologies Corp. (a)		1,310
29	General Dynamics Corp.		2,001
39	ITT Corp.		1,940
26	L-3 Communications Holdings, Inc.		2,227
18	Lockheed Martin Corp.		1,341
35	Northrop Grumman Corp.		1,962
64	Orbital Sciences Corp. (a)		976
34	Raytheon Co.		1,765
			16,601
	Air Freight & Logistics — 0.8%
25	C.H. Robinson Worldwide, Inc.		1,440
9	FedEx Corp.		756
23	United Parcel Service, Inc., Class B		1,295
104	UTi Worldwide, Inc., (United Kingdom)		1,484
			4,975
	Airlines — 0.8%
298	AirTran Holdings, Inc. (a)		1,555
56	Alaska Air Group, Inc. (a)		1,928
42	Allegiant Travel Co. (a)		1,964
			5,447
	Building Products — 0.6%
47	Armstrong World Industries, Inc. (a)		1,824
155	Masco Corp.		2,137
			3,961
	Commercial Services & Supplies — 0.7%
21	Brink’s Co. (The)		520
16	HNI Corp.		449
46	Pitney Bowes, Inc.		1,054
104	R.R. Donnelley & Sons Co.		2,312
			4,335
	Construction & Engineering — 1.7%
95	EMCOR Group, Inc. (a)		2,559
10	Fluor Corp.		430
107	KBR, Inc.		2,025
72	Shaw Group, Inc. (The) (a)		2,074
99	Tutor Perini Corp. (a)		1,794
42	URS Corp. (a)		1,871
			10,753
	Electrical Equipment — 1.2%
11	Cooper Industries Ltd., Class A		449
89	EnerSys (a)		1,945
49	General Cable Corp. (a)		1,448
39	Hubbell, Inc., Class B		1,866
62	Thomas & Betts Corp. (a)		2,232
			7,940

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   35

JPMorgan Multi-Cap Market Neutral Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
	Industrial Conglomerates — 0.6%
49	Carlisle Cos., Inc.		1,670
54	Tyco International Ltd., (Switzerland) (a)		1,915
			3,585
	Machinery — 2.6%
51	Bucyrus International, Inc.		2,884
44	Crane Co.		1,352
20	Illinois Tool Works, Inc.		953
46	Ingersoll-Rand plc, (Ireland)		1,653
31	Joy Global, Inc.		1,622
11	Lincoln Electric Holdings, Inc.		597
51	Navistar International Corp. (a)		1,961
60	Oshkosh Corp.		2,207
3	Snap-On, Inc.		116
35	SPX Corp.		1,936
14	Timken Co.		324
10	Valmont Industries, Inc.		764
			16,369
	Marine — 0.2%
39	Kirby Corp. (a)		1,366
	Professional Services — 0.3%
25	Manpower, Inc.		1,361
6	Watson Wyatt Worldwide, Inc., Class A		279
			1,640
	Road & Rail — 1.5%
168	Avis Budget Group, Inc. (a)		2,203
56	Con-way, Inc.		1,965
32	CSX Corp.		1,552
162	Hertz Global Holdings, Inc. (a)		1,931
11	Landstar System, Inc.		428
70	Werner Enterprises, Inc.		1,376
			9,455
	Trading Companies & Distributors — 0.3%
80	WESCO International, Inc. (a)		2,147
	Total Industrials		88,574
	Information Technology — 17.6%
	Communications Equipment — 2.1%
251	ADC Telecommunications, Inc. (a)		1,559
199	Arris Group, Inc. (a)		2,272
71	CommScope, Inc. (a)		1,887
55	Harris Corp.		2,633
62	InterDigital, Inc. (a)		1,644
61	Plantronics, Inc.		1,574
89	Tekelec (a)		1,365
64	Tellabs, Inc. (a)		361
			13,295
	Computers & Peripherals — 2.3%
63	Diebold, Inc.		1,791
64	Lexmark International, Inc., Class A (a)		1,663
45	NetApp, Inc. (a)		1,542
84	SanDisk Corp. (a)		2,442
121	Seagate Technology, (Cayman Islands)		2,203
169	STEC, Inc. (a)		2,768
10	Synaptics, Inc. (a)		297
52	Western Digital Corp. (a)		2,292
			14,998
	Electronic Equipment, Instruments & Components — 2.8%
88	Avnet, Inc. (a)		2,655
97	Benchmark Electronics, Inc. (a)		1,837
250	Celestica, Inc., (Canada) (a)		2,362
296	Flextronics International Ltd., (Singapore) (a)		2,167
129	Ingram Micro, Inc., Class A (a)		2,243
129	Jabil Circuit, Inc.		2,234
51	SYNNEX Corp. (a)		1,556
56	Tech Data Corp. (a)		2,610
			17,664
	Internet Software & Services — 0.4%
6	AOL, Inc. (a)		134
171	EarthLink, Inc.		1,420
133	ValueClick, Inc. (a)		1,348
			2,902
	IT Services — 3.5%
12	Accenture plc, (Ireland), Class A		518
17	Amdocs Ltd., (United Kingdom) (a)		497
106	Broadridge Financial Solutions, Inc.		2,390
24	CACI International, Inc., Class A (a)		1,175
50	Computer Sciences Corp. (a)		2,880
146	Convergys Corp. (a)		1,567
9	DST Systems, Inc. (a)		399
40	Euronet Worldwide, Inc. (a)		886
16	Fidelity National Information Services, Inc.		375
26	Global Payments, Inc.		1,391
26	Hewitt Associates, Inc., Class A (a)		1,095
32	Lender Processing Services, Inc.		1,282
52	NeuStar, Inc., Class A (a)		1,192
83	SAIC, Inc. (a)		1,573
57	Unisys Corp. (a)		2,191

SEE NOTES TO FINANCIAL STATEMENTS.

36   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
	IT Services — Continued
83	VeriFone Holdings, Inc. (a)		1,367
51	Wright Express Corp. (a)		1,616
			22,394
	Office Electronics — 0.3%
198	Xerox Corp.		1,679
	Semiconductors & Semiconductor Equipment — 3.5%
334	Amkor Technology, Inc. (a)		2,389
47	Atheros Communications, Inc. (a)		1,599
185	Cypress Semiconductor Corp. (a)		1,958
133	Fairchild Semiconductor International, Inc. (a)		1,325
290	Integrated Device Technology, Inc. (a)		1,873
30	Intersil Corp., Class A		467
292	LSI Corp. (a)		1,756
94	Marvell Technology Group Ltd., (Bermuda) (a)		1,960
247	Micron Technology, Inc. (a)		2,608
13	ON Semiconductor Corp. (a)		118
366	RF Micro Devices, Inc. (a)		1,746
21	Silicon Laboratories, Inc. (a)		1,035
51	STMicroelectronics N.V., (Switzerland), ADR		471
82	Tessera Technologies, Inc. (a)		1,918
233	TriQuint Semiconductor, Inc. (a)		1,395
			22,618
	Software — 2.7%
85	CA, Inc.		1,901
265	Cadence Design Systems, Inc. (a)		1,585
65	Fair Isaac Corp.		1,393
41	Net 1 UEPS Technologies, Inc., (South Africa) (a)		806
390	Novell, Inc. (a)		1,617
29	Pegasystems, Inc.		973
107	Quest Software, Inc. (a)		1,969
45	Rovi Corp. (a)		1,439
101	Symantec Corp. (a)		1,799
25	Synopsys, Inc. (a)		552
152	TIBCO Software, Inc. (a)		1,466
85	Websense, Inc. (a)		1,486
			16,986
	Total Information Technology		112,536
	Materials — 6.2%
	Chemicals — 2.6%
50	Ashland, Inc.		1,983
72	Cabot Corp.		1,881
16	Celanese Corp., Class A		510
30	Eastman Chemical Co.		1,824
65	H.B. Fuller Co.		1,490
47	Huntsman Corp.		526
29	Lubrizol Corp.		2,131
14	Nalco Holding Co.		355
18	NewMarket Corp.		2,119
67	OM Group, Inc. (a)		2,090
74	RPM International, Inc.		1,510
16	Valspar Corp.		446
			16,865
	Containers & Packaging — 1.2%
56	Owens-Illinois, Inc. (a)		1,856
63	Pactiv Corp. (a)		1,529
37	Rock-Tenn Co., Class A		1,882
27	Silgan Holdings, Inc.		1,569
27	Temple-Inland, Inc.		571
			7,407
	Metals & Mining — 1.9%
31	AK Steel Holding Corp.		663
126	Commercial Metals Co.		1,971
20	Freeport-McMoRan Copper & Gold, Inc. (a)		1,604
14	Newmont Mining Corp.		639
56	Reliance Steel & Aluminum Co.		2,401
21	Schnitzer Steel Industries, Inc., Class A		990
51	Steel Dynamics, Inc.		907
20	Walter Energy, Inc.		1,479
115	Worthington Industries, Inc.		1,500
			12,154
	Paper & Forest Products — 0.5%
35	Domtar Corp., (Canada) (a)		1,948
35	International Paper Co.		943
			2,891
	Total Materials		39,317
	Telecommunication Services — 1.3%
	Diversified Telecommunication Services — 0.6%
60	AT&T, Inc.		1,694
510	Qwest Communications International, Inc.		2,146
21	tw telecom, inc. (a)		367
			4,207
	Wireless Telecommunication Services — 0.7%
56	Crown Castle International Corp. (a)		2,181
29	Leap Wireless International, Inc. (a)		501
442	Sprint Nextel Corp. (a)		1,619
			4,301
	Total Telecommunication Services		8,508

SEE NOTES TO FINANCIAL STATEMENTS.

DECEMBER 31, 2009        J.P. MORGAN MID CAP/MULTI-CAP FUNDS   37

JPMorgan Multi-Cap Market Neutral Fund

SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF DECEMBER 31, 2009 (Unaudited) (continued)

(Amounts in thousands)

SHARES	SECURITY DESCRIPTION	VALUE($)
Long Positions — Continued
	Utilities — 5.7%
	Electric Utilities — 1.8%
53	Edison International		1,828
40	FirstEnergy Corp.		1,850
147	NV Energy, Inc.		1,820
83	Pepco Holdings, Inc.		1,399
54	Pinnacle West Capital Corp.		1,989
107	PNM Resources, Inc.		1,355
44	UniSource Energy Corp.		1,426
			11,667
	Gas Utilities — 0.7%
44	ONEOK, Inc.		1,982
28	Southwest Gas Corp.		806
77	UGI Corp.		1,860
			4,648
	Independent Power Producers & Energy Traders — 1.3%
130	AES Corp. (The) (a)		1,735
74	Constellation Energy Group, Inc.		2,612
146	Mirant Corp. (a)		2,235
70	NRG Energy, Inc. (a)		1,646
			8,228
	Multi-Utilities — 1.8%
73	Ameren Corp.		2,047
61	CenterPoint Energy, Inc.		883
139	CMS Energy Corp.		2,184
49	DTE Energy Co.		2,157
74	MDU Resources Group, Inc.		1,752
17	NiSource, Inc.		257
10	PG&E Corp.		429
51	Public Service Enterprise Group, Inc.		1,687
			11,396
	Water Utilities — 0.1%
23	American Water Works Co., Inc.		516
	Total Utilities		36,455
	Total Common Stocks (Cost $470,302)		595,710
Short-Term Investment — 4.8%
	Investment Company — 4.8%
30,808	JPMorgan Liquid Assets Money Market Fund, Institutional Class Shares, 0.170% (b) (l) (Cost $30,808)		30,808
	Total Investments — 98.2% (Cost $501,110)		626,518
	Other Assets in Excess of Liabilities — 1.8%		11,579
	NET ASSETS — 100.0%	$	638,097
Short Positions — 93.3%
	Common Stocks — 93.3%
	Consumer Discretionary — 12.3%
	Auto Components — 0.3%
60	BorgWarner, Inc.		1,983
	Automobiles — 0.4%
91	Harley-Davidson, Inc.		2,296
	Distributors — 0.3%
87	LKQ Corp. (a)		1,714
	Diversified Consumer Services — 1.0%
48	Brink’s Home Security Holdings, Inc. (a)		1,571
34	H&R Block, Inc.		765
125	Sotheby’s		2,820
7	Strayer Education, Inc.		1,482
			6,638
	Hotels, Restaurants & Leisure — 2.8%
101	Burger King Holdings, Inc.		1,910
22	Gaylord Entertainment Co. (a)		427
18	International Game Technology		346
66	Las Vegas Sands Corp. (a)		981
18	McDonald’s Corp.		1,118
158	MGM Mirage (a)		1,437
87	Royal Caribbean Cruises Ltd. (a)		2,195
63	Starwood Hotels & Resorts Worldwide, Inc.		2,310
38	Vail Resorts, Inc. (a)		1,455
412	Wendy’s/Arby’s Group, Inc., Class A		1,931
31	Wynn Resorts Ltd.		1,784
60	Yum! Brands, Inc.		2,100
			17,994
	Household Durables — 0.9%
56	Harman International Industries, Inc.		1,992
63	Lennar Corp., Class A		802
78	Pulte Homes, Inc. (a)		776
100	Toll Brothers, Inc. (a)		1,880
			5,450
	Leisure Equipment & Products — 0.5%
155	Brunswick Corp.		1,966
327	Eastman Kodak Co. (a)		1,379
			3,345
	Media — 2.2%
53	Central European Media Enterprises Ltd., (Bermuda), Class A (a)		1,249
78	Discovery Communications, Inc., Class A (a)		2,387
60	DreamWorks Animation SKG, Inc., Class A (a)		2,403
36	Interactive Data Corp.		899

SEE NOTES TO FINANCIAL STATEMENTS.

38   J.P. MORGAN MID CAP/MULTI-CAP FUNDS        DECEMBER 31, 2009

SHARES	SECURITY DESCRIPTION	VALUE($)
Short Positions — Continued
	Media — Continued
85	Lamar Advertising Co., Class A (a)		2,631
15	Meredith Corp.		470
32	Morningstar, Inc. (a)		1,542
266	Sirius XM Radio, Inc. (a)		160
64	Walt Disney Co. (The)		2,068
			13,809
	Multiline Retail — 0.3%
27	99 Cents Only Stores (a)		352
261	Saks, Inc. (a)		1,711
			2,063
	Specialty Retail — 2.7%
67	Abercrombie & Fitch Co., Class A		2,335
118	American Eagle Outfitters, Inc.		1,997
72	CarMax, Inc. (a)		1,753
14	Children’s Place Retail Stores, Inc. (The) (a)		447
9	Guess?, Inc.		369
60	Home Depot, Inc.		1,724
15	J Crew Group, Inc. (a)		671
89	Lowe’s Cos., Inc.		2,071
49	O’Reilly Automotive, Inc. (a)		1,867
33	Tiffany & Co.		1,437
72	Urban Outfitters, Inc. (a)		2,502
			17,173
	Textiles, Apparel & Luxury Goods — 0.9%
9	Columbia Sportswear Co.		367
29	Nike, Inc., Class B		1,924
11	Under Armour, Inc., Class A (a)		303
21	V.F. Corp.