-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TOZpIrROx12Ll4iB/uu1GDsWGvE7x0GqNxxnnZIp8FWi8hpbuxA7UO9c8hpmUoRJ DfiJutftx+UCR5WKUdC0bQ== 0001047469-03-023526.txt : 20030708 0001047469-03-023526.hdr.sgml : 20030708 20030707180653 ACCESSION NUMBER: 0001047469-03-023526 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030708 EFFECTIVENESS DATE: 20030708 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JP MORGAN MUTUAL FUND SELECT GROUP CENTRAL INDEX KEY: 0001023771 IRS NUMBER: 131481191 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07843 FILM NUMBER: 03777574 BUSINESS ADDRESS: STREET 1: 522 FIFTH AVENUE STREET 2: 16TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 800-348-4782 MAIL ADDRESS: STREET 1: J.P. MORGAN FLEMING ASSET MANAGEMENT STREET 2: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: MUTUAL FUND SELECT GROUP DATE OF NAME CHANGE: 19960926 N-CSR 1 a2113457zn-csr.txt N-CSR OMB APPROVAL OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response. . . . . . . 5.0 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 811-07843 -------------------------------------------- J.P. Morgan Mutual Fund Select Group - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 522 Fifth Avenue, New York, NY 10036 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219 ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-800-348-4782 ----------------------------- Date of fiscal year end: October 31, 2003 ------------------------------------------------------- Date of reporting period: November 1, 2002 through April 30, 2003 ------------------------------------------------------- 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. Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). [GRAPHIC] SEMI-ANNUAL REPORT APRIL 30, 2003 (UNAUDITED) JPMORGAN FUNDS INTERNATIONAL EQUITY FUNDS FLEMING EUROPEAN FUND FLEMING JAPAN FUND FLEMING INTERNATIONAL GROWTH FUND FLEMING INTERNATIONAL VALUE FUND FLEMING INTERNATIONAL OPPORTUNITIES FUND FLEMING EMERGING MARKETS EQUITY FUND FLEMING ASIA EQUITY FUND FLEMING INTERNATIONAL EQUITY FUND [JPMORGAN FLEMING ASSET MANAGEMENT LOGO] President's Letter 1 Fund Commentaries Fleming European Fund 3 Fleming Japan Fund 6 Fleming International Growth Fund 9 Fleming International Value Fund 12 Fleming International Opportunities Fund 15 Fleming Emerging Markets Equity Fund 18 Fleming Asia Equity Fund 21 Fleming International Equity Fund 24 Portfolio of Investments 27 Financial Statements 57 Notes to Financial Statements 69 Financial Highlights 90
HIGHLIGHTS - "Baghdad bounce" revives international markets - International equity returns aided by weak dollar - Highly variable market performances - Earnings expansion key to equity price rises 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 current market conditions and are subject to change without notice. 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 Fund's prospectus for a discussion of the Fund's investment objective, strategies and risks. Call JPMorgan Funds Service Center at (800) 348-4782 for a prospectus containing more complete information about a Fund including management fees and other expenses. Please read it carefully before investing. JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc. JPMORGAN INTERNATIONAL EQUITY FUNDS PRESIDENT'S LETTER JUNE 2, 2003 DEAR SHAREHOLDER: We are pleased to present this semi-annual report for the JPMorgan Fleming International Equity Funds. Inside, you'll find information detailing the performance of the Funds for the six months ended April 30, 2003, along with a report from the Portfolio Managers. SWIFT WAR DRIVES POSITIVE RETURNS The past few months served as a reminder of the old investment maxim "buy when the shooting starts." After months of uncertainty, equity markets around the world started to rally in early March, once it became clear that war in Iraq was inevitable. In the weeks that followed, oil prices fell, reducing the threat that war in Iraq would have serious economic ramifications. Equities retraced much of their earlier losses to the relief of investors. Even so, the performance of international markets was highly variable. Broadly speaking, Europe outperformed Asia, where geopolitical worries, the emergence of SARS and a weak Japanese economy all held back markets. The broad-based MSCI EAFE Index of international markets rose 1.8% in U.S. dollar terms for the six months, which compares with an appreciation of 4.5% for the S&P 500 Index. It should be noted that the MSCI EAFE return benefited from the sustained fall of the U.S. dollar during the period. Economically, growth continued to be poor almost everywhere, with fears of deflation stalking Japan in particular, and Germany to a lesser extent. Perhaps the most positive sign was that corporate earnings did not disappoint, although there are no expectations of large rebounds in earnings. VARIABLE PERFORMANCES Within the international arena, different markets posted a considerable variety of returns. At one extreme, the MSCI EMF Latin America Index rose by 24.5%, while in Asia the MSCI Japan Index fell 7.3%. Brazil performed exceptionally well with high hopes for fiscal reform from the Lula government. Meanwhile, Japan suffered as economic growth remained flat and pension funds sold their blue-chip stocks for technical reasons. OUTLOOK Following the end of the war, the world's financial markets are more relaxed. There are, however, some issues that still need to be resolved before equities can resume an upward course. These include: lack of economic growth, deflation 1 concerns, U.S. equity market valuations, excess capacity and a debt ridden U.S. consumer. The key to a strong and prolonged rise in prices is resumption in corporate earnings growth -- both in the United States and international markets. The portfolio management team and all of us here at JPMorgan Fleming Asset Management thank you for your continued business and anticipate serving your investment needs for many years to come. Should you have any questions, please feel free to contact your financial advisor or the JPMorgan Funds Service Center at 1-800-348-4782. Sincerely yours, /s/ George C.W. Gatch George C.W. Gatch President JPMorgan Funds International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations. 2 JPMORGAN FLEMING EUROPEAN FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming European Fund, which seeks capital appreciation from a portfolio of European stocks, returned 4.7% (Class A Shares, without sales charge) in the six months ended April 30, 2003. This compares with a rise of 4.2% for the MSCI Europe Index (in U.S. dollars). Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK? A. The Fund slightly outperformed its benchmark chiefly due to judicious and timely stock selection among oil, telecommunications, utilities and cyclical companies. For most of the period, the Fund maintained an overweight exposure to oil producers, where the combination of cheap valuations and rising oil prices proved very attractive. Holdings in Norwegian producer Statoil ASA, Finnish supplier Fortum OYJ and Spanish company Repsol worked particularly well as all three benefited from low multiples, high dividend yields and earnings upgrades. In telecommunications, overweight positions in many operators were established during the final quarter of 2002 as the sector began to report improved quarterly earnings. Holdings in Scandinavian operators TDC and TeliaSonera AB added to performance. Midway through the review period, we increased exposure to the Utilities sector, where cheap valuations juxtaposed with strong earnings upgrades led us to identify opportunities. Holdings such as Scottish Power from the U.K., Endesa SA from Spain, and U.K. water company Severn Trent PLC all worked well. During April we moved into cyclical companies, many of which are generating strong earnings growth yet remain on attractive valuations. We found opportunities in both growth and value cyclical companies, including consumer-related stocks like French women's clothing retailer Etam Developpement SA, and media companies such as Spanish telephone directory publisher Telefonica Publicidad e Informacion. Q. HOW WAS THE FUND MANAGED? A. The Fund seeks to invest in the best European growth and value stocks, focusing only on those stocks that we have identified as the most attractive. No company is owned simply to reduce risk against the benchmark. Instead, risk continues to be managed by holding a large number of stocks (50-100) and by ensuring that the fund always has positive tilts to both growth and value compared to the broad market. (UNAUDITED) 3 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS Germany 17.40% United Kingdom 16.80% France 13.30% Italy 12.20% The Netherlands 4.90% Finland 4.70% Sweden 4.50% Portugal 4.40% Spain 4.40% Austria 4.00% Norway 3.80% Denmark 2.80% Greece 2.10% Belgium 2.00% Ireland 2.00% Croatia 0.60% Switzerland 0.10%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. FRANCE TELECOM (FRANCE) (4.3%) 2. FORTUM OYJ (FINLAND) (4.0%) 3. SCHWARZ PHARMA AG (GERMANY) (3.6%) 4. BT GROUP PLC (UNITED KINGDOM) (3.4%) 5. DEUTSCHE TELEKOM AG (GERMANY) (3.3%) 6. FRESENIUS MEDICAL CARE AG (GERMANY) (2.9%) 7. SEAT-PAGINE GIALLE SPA (ITALY) (2.7%) 8. VINCI SA (FRANCE) (2.7%) 9. TELEKOM AUSTRIA AG (AUSTRIA) (2.6%) 10. SAAB AB, CLASS B (SWEDEN) (2.5%) TOP 10 EQUITY HOLDINGS COMPRISED 32.0% OFTHE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($18,148,345). AS OF APRIL 30, 2003, THE FUND HELD 82 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR 3 YEARS 5 YEARS (11/2/95) - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge (8.84%) (9.96%) (0.17%) 9.79% With Sales Charge* (14.10%) (11.72%) (1.35%) 8.93% - -------------------------------------------------------------------------------- Class B Shares Without CDSC (9.51%) (10.63%) (0.90%) 9.00% With CDSC** (14.01%) (11.43%) (1.25%) 9.00% - -------------------------------------------------------------------------------- Class C Shares Without CDSC (9.57%) (10.67%) (0.93%) 8.98% With CDSC*** (10.47%) (10.67%) (0.93%) 8.98% - -------------------------------------------------------------------------------- Institutional Shares (8.31%) (9.65%) 0.04% 9.95% - -------------------------------------------------------------------------------- Select Shares (8.74%) (9.88%) (0.12%) 9.83% - --------------------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% for the period since inception. *** Assumes a 1% CDSC for the one year period and 0% CDSC thereafter. (UNAUDITED) 4 [CHART] LIFE OF FUND PERFORMANCE (11/2/95 TO 4/30/03)
JPMORGAN FLEMING EUROPEAN FUND (CLASS A SHARES) MSCI EUROPE INDEX LIPPER EUROPEAN FUNDS INDEX 11/2/95 $ 9,425 $ 10,000 $ 10,000 $ 9,444 $ 10,000 $ 10,000 $ 9,598 $ 10,317 $ 10,210 $ 9,664 $ 10,384 $ 10,287 $ 10,013 $ 10,573 $ 10,633 $ 10,333 $ 10,700 $ 10,887 4/30/96 $ 10,532 $ 10,777 $ 11,097 $ 10,701 $ 10,860 $ 11,378 $ 11,099 $ 10,979 $ 11,483 $ 10,720 $ 10,842 $ 11,175 $ 10,966 $ 11,164 $ 11,540 $ 11,223 $ 11,399 $ 11,686 $ 11,385 $ 11,663 $ 11,930 $ 11,936 $ 12,254 $ 12,433 $ 12,296 $ 12,492 $ 12,711 $ 12,451 $ 12,526 $ 12,843 $ 12,730 $ 12,691 $ 13,036 $ 12,988 $ 13,101 $ 13,341 4/30/97 $ 12,905 $ 13,036 $ 13,172 $ 13,060 $ 13,592 $ 13,693 $ 13,836 $ 14,272 $ 14,338 $ 14,363 $ 14,941 $ 14,758 $ 13,732 $ 14,088 $ 14,035 $ 14,788 $ 15,455 $ 15,298 $ 14,592 $ 14,694 $ 14,659 $ 14,541 $ 14,921 $ 14,769 $ 14,924 $ 15,465 $ 15,113 $ 15,760 $ 16,108 $ 15,676 $ 17,182 $ 17,368 $ 16,968 $ 18,580 $ 18,605 $ 18,253 4/30/98 $ 19,142 $ 18,966 $ 18,672 $ 19,643 $ 19,351 $ 19,141 $ 19,824 $ 19,564 $ 19,197 $ 20,603 $ 19,951 $ 19,563 $ 17,179 $ 17,441 $ 16,738 $ 16,461 $ 16,743 $ 15,801 $ 17,323 $ 18,083 $ 16,906 $ 18,257 $ 19,045 $ 17,869 $ 19,128 $ 19,877 $ 18,702 $ 20,145 $ 19,750 $ 19,035 $ 18,981 $ 19,248 $ 18,479 $ 18,945 $ 19,458 $ 18,531 4/30/99 $ 19,587 $ 20,038 $ 19,061 $ 18,569 $ 19,076 $ 18,369 $ 18,932 $ 19,399 $ 18,835 $ 19,271 $ 19,579 $ 19,152 $ 19,478 $ 19,779 $ 19,307 $ 19,515 $ 19,626 $ 19,096 $ 20,024 $ 20,349 $ 19,744 $ 22,727 $ 20,898 $ 21,116 $ 26,025 $ 23,040 $ 23,844 $ 25,715 $ 21,400 $ 23,076 $ 28,207 $ 22,515 $ 26,256 $ 27,615 $ 23,057 $ 26,275 E4/30/00 $ 25,999 $ 22,040 $ 24,851 $ 25,050 $ 21,860 $ 24,349 $ 25,396 $ 22,330 $ 24,926 $ 24,865 $ 21,972 $ 24,734 $ 24,656 $ 21,713 $ 24,828 $ 23,423 $ 20,697 $ 23,547 $ 22,053 $ 20,540 $ 22,831 $ 20,869 $ 19,745 $ 21,609 $ 22,194 $ 21,105 $ 23,232 $ 22,125 $ 21,116 $ 23,163 $ 20,893 $ 19,262 $ 21,210 $ 18,906 $ 17,825 $ 19,348 E4/30/01 $ 19,838 $ 19,092 $ 20,629 $ 19,413 $ 18,160 $ 19,834 $ 18,454 $ 17,474 $ 19,027 $ 18,139 $ 17,518 $ 18,835 $ 18,632 $ 17,062 $ 18,351 $ 17,181 $ 15,359 $ 16,292 $ 17,756 $ 15,848 $ 16,862 $ 19,386 $ 16,483 $ 17,592 $ 19,454 $ 16,905 $ 17,967 $ 18,838 $ 16,021 $ 17,180 $ 19,331 $ 16,018 $ 17,192 $ 20,249 $ 16,886 $ 18,052 E4/30/02 $ 20,824 $ 16,758 $ 18,003 $ 21,399 $ 16,706 $ 18,014 $ 21,070 $ 16,126 $ 17,531 $ 19,713 $ 14,331 $ 15,699 $ 19,315 $ 14,328 $ 15,594 $ 17,918 $ 12,443 $ 13,662 $ 18,125 $ 13,646 $ 14,708 $ 19,481 $ 14,316 $ 15,404 $ 17,976 $ 13,796 $ 14,835 $ 17,576 $ 13,144 $ 14,187 $ 17,121 $ 12,715 $ 13,645 $ 17,288 $ 12,526 $ 13,479 E4/30/03 $ 18,982 $ 14,216 $ 15,173
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 11/2/95. Returns for the Institutional and Select Shares prior to 9/10/01 (offering date of the Institutional and Select Shares) are calculated using the historical expenses of the Class A Shares, which are higher than the expenses of the Institutional and Select Shares. Returns for the Class B Shares prior to 11/3/95 (offering date of the Class B Shares) are calculated using the historical expenses of the Class A Shares, which are lower than the expenses of the Class B Shares. Returns for the Class C Shares prior to 11/1/98 (offering date of the Class C Shares) are calculated using the historical expenses of the Class A Shares, which are lower than the expenses of the Class C Shares. The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Fleming European Fund, MSCI Europe Index, and Lipper European Funds Index from November 2, 1995 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI Europe Index is a replica (or model) of the performance of the European markets. The Lipper European Funds Index represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 5 JPMORGAN FLEMING JAPAN FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming Japan Fund, which seeks to provide long-term capital appreciation from a portfolio of Japanese stocks, declined 6.3% (Class A Shares, without sales charge) in the six months ended April 30, 2003. This compares with a fall of 7.3% for the MSCI Japan Index (in U.S. dollars). Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK? A. While this was a period unsuited to its preference for investing in the highest quality blue-chip Japanese companies, the Fund succeeded in outperforming its MSCI Japan Index benchmark by switching a significant percentage of the portfolio into smaller companies. Consequently, it minimized capital losses during a period of market uncertainty. The Fund was able to acquire a number of undervalued smaller companies that were trading on low valuations and generating strong earnings growth. As a result, they either rose in price or at least were resilient to the broader equity market's falls. Examples of these smaller companies include: Geo Co., LTD, a video rental chain (up 58% in Yen); Goodwill Group, Inc., Japan's largest supplier of temporary labor (up 6.3% in Yen); and Phoenix Electric Co., LTD, a supplier of lighting equipment (up 12% in Yen since listing in December). There were considerable share-price losses among the high-quality blue-chip companies. The share prices of companies such as Canon, Inc. and Honda Motor Co., LTD, which make a substantial percentage of their sales in the United States and Europe, were depressed by data suggesting weak consumer demand in the buildup to the Iraq war. Those blue chips generally reported earnings for the period slightly ahead of investors' expectations. Blue-chip stock prices were also harmed by a measure that encouraged pension fund managers to sell stocks and instead participate in a pooled government run pension scheme. Q. HOW WAS THE FUND MANAGED? A. While the portfolio management team remains convinced that Japan's high quality blue chip stocks may outperform over the long-term, much of the Fund was switched into smaller companies to suit the short-term mood of the market. The Fund's top holdings remain names such as Canon, Inc., NTT Docomo, Inc., Fuji Photo Film Co., LTD and Shin-Etsu Chemical Co., LTD. However, a fifth of the fund's holdings have a capitalization of less than $425 million. (UNAUDITED) 6 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS Industrial Products & Services 34.70% Consumer Goods & Services 34.00% Technology 26.00% Telecommunications 5.30%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. CANON, INC. (5.8%) 2. NTT DOCOMO, INC. (4.0%) 3. FUJI PHOTO FILM CO., LTD (3.7%) 4. SHIN-ETSU CHEMICAL CO., LTD (3.4%) 5. SMC CORP. (3.2%) 6. FANUC LTD (2.9%) 7. MABUCHI MOTOR CO., LTD (2.7%) 8. TDK CORP. (2.5%) 9. BRIDGESTONE CORP. (2.4%) 10. DAIKIN INDUSTRIES LTD (2.4%) TOP 10 EQUITY HOLDINGS COMPRISED 33.0% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($460,877). AS OF APRIL 30, 2003, THE FUND HELD 57 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR 3 YEARS 5 YEARS 11/2/95) - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge (26.55%) (25.18%) (12.19%) (10.15%) With Sales Charge* (30.72%) (26.64%) (13.24%) (10.86%) - -------------------------------------------------------------------------------- Class B Shares Without CDSC (27.29%) (25.78%) (12.79%) (10.79%) With CDSC** (30.92%) (26.53%) (13.14%) (10.79%) - --------------------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% for the period since inception. (UNAUDITED) 7 [CHART] LIFE OF FUND PERFORMANCE (11/2/95 TO 4/30/03)
JPMORGAN FLEMING JAPAN TOKYO STOCK EXCHANGE FUND (CLASS A SHARES) MSCI JAPAN INDEX (TOPIX) 1ST SECTION INDEX LIPPER JAPAN EQUITY FUNDS AVERAGE 11/2/95 $ 9,425 $ 10,000 $ 10,000 $ 10,000 $ 9,425 $ 10,000 $ 10,000 $ 10,000 $ 9,679 $ 10,511 $ 10,479 $ 10,444 $ 9,802 $ 10,373 $ 10,338 $ 10,459 $ 9,604 $ 10,189 $ 10,168 $ 10,243 $ 10,038 $ 10,548 $ 10,544 $ 10,618 4/30/96 $ 10,518 $ 11,149 $ 11,246 $ 11,294 $ 10,057 $ 10,574 $ 10,697 $ 10,888 $ 10,179 $ 10,630 $ 10,744 $ 11,064 $ 9,699 $ 10,154 $ 10,216 $ 10,576 $ 9,190 $ 9,700 $ 9,782 $ 10,173 $ 9,473 $ 10,036 $ 10,086 $ 10,372 $ 8,879 $ 9,363 $ 9,409 $ 9,784 $ 8,973 $ 9,541 $ 9,479 $ 9,873 $ 8,605 $ 8,882 $ 8,749 $ 9,426 $ 8,470 $ 7,916 $ 7,806 $ 8,916 $ 8,768 $ 8,101 $ 7,957 $ 9,068 $ 8,633 $ 7,834 $ 7,696 $ 8,906 4/30/97 $ 8,951 $ 8,119 $ 7,880 $ 9,257 $ 9,779 $ 9,015 $ 8,853 $ 10,384 $ 10,260 $ 9,688 $ 9,423 $ 10,865 $ 10,789 $ 9,393 $ 9,050 $ 11,054 $ 9,573 $ 8,579 $ 8,239 $ 9,835 $ 9,718 $ 8,449 $ 8,006 $ 9,777 $ 9,187 $ 7,662 $ 7,392 $ 9,121 $ 9,033 $ 7,191 $ 6,831 $ 8,677 $ 8,745 $ 6,780 $ 6,293 $ 8,224 $ 8,643 $ 7,385 $ 6,961 $ 8,858 $ 8,368 $ 7,423 $ 7,016 $ 8,782 $ 8,205 $ 6,918 $ 6,572 $ 8,397 4/30/98 $ 8,094 $ 6,891 $ 6,481 $ 8,456 $ 8,185 $ 6,512 $ 6,172 $ 8,248 $ 8,114 $ 6,603 $ 6,209 $ 8,253 $ 8,022 $ 6,516 $ 6,122 $ 8,423 $ 7,279 $ 5,773 $ 5,489 $ 7,752 $ 7,086 $ 5,615 $ 5,390 $ 7,495 $ 6,526 $ 6,557 $ 6,248 $ 7,983 $ 6,821 $ 6,857 $ 6,541 $ 8,586 $ 7,025 $ 7,122 $ 6,777 $ 8,869 $ 6,913 $ 7,174 $ 6,807 $ 8,942 $ 6,689 $ 7,017 $ 6,641 $ 8,896 $ 7,616 $ 7,990 $ 7,562 $ 10,153 4/30/99 $ 7,921 $ 8,323 $ 7,917 $ 10,718 $ 7,575 $ 7,854 $ 7,527 $ 10,384 $ 8,206 $ 8,598 $ 8,270 $ 11,994 $ 8,929 $ 9,456 $ 9,108 $ 13,284 $ 9,132 $ 9,389 $ 9,393 $ 13,985 $ 9,631 $ 9,959 $ 10,030 $ 14,800 $ 10,018 $ 10,387 $ 10,621 $ 15,395 $ 10,537 $ 10,832 $ 11,386 $ 16,881 $ 11,260 $ 11,505 $ 11,928 $ 18,235 $ 10,476 $ 11,007 $ 11,311 $ 17,336 $ 10,394 $ 10,722 $ 11,094 $ 17,641 $ 10,934 $ 11,606 $ 11,830 $ 18,592 E4/30/00 $ 10,089 $ 10,733 $ 10,852 $ 16,866 $ 9,193 $ 10,187 $ 10,060 $ 15,601 $ 9,682 $ 10,887 $ 10,704 $ 16,625 $ 8,460 $ 9,633 $ 9,436 $ 14,568 $ 9,152 $ 10,256 $ 10,086 $ 15,747 $ 8,979 $ 9,746 $ 9,711 $ 14,900 $ 8,266 $ 9,181 $ 9,017 $ 13,593 $ 8,083 $ 8,800 $ 8,777 $ 13,021 $ 7,442 $ 8,265 $ 8,022 $ 11,879 $ 7,422 $ 8,167 $ 7,980 $ 11,795 $ 6,800 $ 7,799 $ 7,556 $ 10,899 $ 6,739 $ 7,567 $ 7,306 $ 10,745 E4/30/01 $ 7,146 $ 8,081 $ 7,929 $ 11,616 $ 7,238 $ 8,062 $ 7,908 $ 11,489 $ 6,759 $ 7,581 $ 7,481 $ 10,867 $ 6,240 $ 7,017 $ 6,835 $ 9,894 $ 5,976 $ 6,841 $ 6,652 $ 9,407 $ 5,375 $ 6,202 $ 6,184 $ 8,559 $ 5,385 $ 6,189 $ 6,229 $ 8,792 $ 5,599 $ 6,257 $ 6,140 $ 8,822 $ 5,253 $ 5,834 $ 5,668 $ 8,308 $ 4,937 $ 5,377 $ 5,229 $ 7,654 $ 5,212 $ 5,601 $ 5,454 $ 7,937 $ 5,569 $ 5,922 $ 5,787 $ 8,483 E4/30/02 $ 5,752 $ 6,266 $ 6,096 $ 8,805 $ 6,017 $ 6,657 $ 6,529 $ 9,302 $ 5,701 $ 6,310 $ 6,186 $ 8,790 $ 5,212 $ 5,871 $ 5,831 $ 8,169 $ 5,080 $ 5,809 $ 5,749 $ 8,035 $ 4,764 $ 5,549 $ 5,496 $ 7,610 $ 4,510 $ 5,163 $ 5,113 $ 7,094 $ 4,754 $ 5,372 $ 5,294 $ 7,343 $ 4,622 $ 5,234 $ 5,165 $ 7,114 $ 4,531 $ 5,022 $ 4,976 $ 6,827 $ 4,541 $ 5,051 $ 5,035 $ 6,874 $ 4,195 $ 4,822 $ 4,863 $ 6,557 E4/30/03 $ 4,225 $ 4,784 $ 4,888 $ 6,567
Source: Lipper AnalyticalServices, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 11/2/95. Returns for the Class B Shares prior to 11/3/95 (offering date of the Class B Shares) are calculated using the historical expenses of the Class A Shares, which are lower than the expenses of the Class B Shares. The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Fleming Japan Fund, MSCI Japan Index, Tokyo Stock Exchange (TOPIX) 1st Section Index and Lipper Japan Equity Funds Average from November 2, 1995 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI Japan Index is a replica (or model) of the performance of the Japan Equity Markets. The Tokyo Stock Exchange (TOPIX) 1st Section Index, also known as the Tokyo Price Index, is an unmanaged capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The Lipper Japan Equity Funds Average describes the average total returns for all of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 8 JPMORGAN FLEMING INTERNATIONAL GROWTH FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming International Growth Fund, which seeks to provide long-term capital appreciation from a portfolio of foreign growth stocks, appreciated 3.0% (Class A shares, without sales charge) in the six months ended April 30, 2003. This compares with a rise of 0.6% for the MSCI EAFE Growth Index (in U.S. dollars). Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK? A. The Fund outperformed its MSCI EAFE Growth Index benchmark, demonstrating exceptionally strong performance as the markets rallied from mid-March onward with relief that the Iraq war had reached a swift conclusion. Many of the stocks that performed well for the portfolio benefited particularly from increased confidence in financial markets. The most direct beneficiaries were European financial stocks such as BNP Paribas, Nordea AB and Royal Bank of Scotland Group PLC. The stock prices of these companies bounced with improved perceptions about the quality of their loan books, increased optimism about capital markets activity, and in sympathy with stronger equity prices. Another financial stock that made a significant positive impact was Brazilian bank Unibanco, which rallied in line with the Brazilian equity market. Otherwise, performance was boosted by an eclectic group of growth stocks. French software company Dassault Systemes SA performed well, reporting first quarter results in excess of market expectations. French basic materials company Saint-Gobain was a strong performer both as its results demonstrated strong cash flow, and as investors anticipated increased profits from any pickup in economic growth. U.K. cellular phone company Vodafone Group PLC also did well as European telecom stocks recovered from low valuations. Not all holdings performed well, however. There was weak performance from Asian growth stocks. Korean stocks Kookmin Bank and Samsung Electronics Co., LTD fell as North Korea threatened to step up its nuclear program. In Japan, Nikko Cordial Corp. made a full year loss as a result of the local stock market malaise. In the U.K., defense contractor BAE Systems PLC warned of cost overruns and delays on U.K. defense projects. Additionally, Dutch publisher Wolters Kluwer NV fell significantly after making a downbeat profit outlook. Q. HOW WAS THE FUND MANAGED? A. There were only modest changes to the Portfolio during the period. The Fund continued to be managed using a bottom-up, active approach focusing on proprietary fundamental research at both the local and global sector levels. It is diversified across a broad range of countries and industrial sectors to ensure appropriate diversification. (UNAUDITED) 9 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS United Kingdom 31.70% France 17.10% Japan 13.80% Germany 7.40% South Korea 5.80% The Netherlands 4.40% Finland 3.70% Hong Kong 2.70% Sweden 2.60% Switzerland 2.50% Belgium 2.00% Italy 1.90% Spain 1.90% Taiwan 1.40% Brazil 1.10%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. VODAFONE GROUP PLC (UNITED KINGDOM) (5.0%) 2. GLAXOSMITHKLINE PLC (UNITED KINGDOM) (4.5%) 3. TOTAL FINA ELF SA (FRANCE) (4.2%) 4. AVENTIS SA (FRANCE) (4.0%) 5. CANON, INC. (JAPAN) (3.8%) 6. ROYAL BANK OF SCOTLAND GROUP PLC (UNITED KINGDOM) (3.7%) 7. NOKIA OYJ (FINLAND) (3.7%) 8. DASSAULT SYSTEMES SA (FRANCE) (3.5%) 9. BG GROUP PLC (UNITED KINGDOM) (3.0%) 10. BARCLAYS PLC (UNITED KINGDOM) (3.0%) TOP 10 EQUITY HOLDINGS COMPRISED 38.4% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($1,237,697). AS OF APRIL 30, 2003, THE FUND HELD 44 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR (12/29/00) - ------------------------------------------------------------------- Class A Shares Without Sales Charge (19.20%) (17.12%) With Sales Charge* (23.88%) (19.20%) - ------------------------------------------------------------------- Class B Shares Without CDSC (19.55%) (17.51%) With CDSC** (23.57%) (18.58%) - -------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period and 3% CDSC for the period since inception. (UNAUDITED) 10 [CHART] LIFE OF FUND PERFORMANCE (12/29/00 TO 4/30/03)
JPMORGAN FLEMING INTERNATIONAL GROWTH FUND (CLASS A SHARES) MSCI EAFE GROWTH INDEX LIPPER INTERNATIONAL FUNDS INDEX E12/29/00 $ 9,425 $ 10,000 $ 10,000 $ 9,425 $ 10,000 $ 10,000 $ 9,595 $ 9,972 $ 10,059 $ 8,624 $ 8,960 $ 9,353 $ 7,907 $ 8,340 $ 8,695 E4/30/01 $ 8,633 $ 8,911 $ 9,224 $ 8,275 $ 8,552 $ 9,001 $ 7,845 $ 8,136 $ 8,747 $ 7,543 $ 7,939 $ 8,520 $ 7,307 $ 7,577 $ 8,348 $ 6,429 $ 6,860 $ 7,438 $ 6,816 $ 7,133 $ 7,640 $ 7,316 $ 7,500 $ 7,925 $ 7,533 $ 7,543 $ 8,066 $ 7,137 $ 7,136 $ 7,740 $ 7,156 $ 7,233 $ 7,848 $ 7,543 $ 7,508 $ 8,264 E4/30/02 $ 7,524 $ 7,548 $ 8,321 $ 7,439 $ 7,563 $ 8,440 $ 7,203 $ 7,368 $ 8,107 $ 6,438 $ 6,583 $ 7,298 $ 6,428 $ 6,532 $ 7,304 $ 5,494 $ 5,964 $ 6,517 $ 5,900 $ 6,301 $ 6,855 $ 6,325 $ 6,486 $ 7,180 $ 6,013 $ 6,335 $ 6,950 $ 5,654 $ 6,022 $ 6,696 $ 5,531 $ 5,892 $ 6,497 $ 5,418 $ 5,830 $ 6,338 E4/30/03 $ 6,080 $ 6,335 $ 6,966
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 12/29/00. The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Fleming International Growth Fund, MSCI EAFE Growth Index and Lipper International Funds Index from December 29, 2000 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI EAFE Growth Index is a market capitalization-weighted index representing all 20 developed markets that make up that index. The Lipper International Funds Index represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 11 JPMORGAN FLEMING INTERNATIONAL VALUE FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming International Value Fund, which seeks to provide long-term capital appreciation from a portfolio of foreign value stocks, appreciated 0.8% (Institutional Shares) in the six months ended April 30, 2003. This compares with a rise of 1.7% for the Salomon Smith Barney PMI Value EPAC Index (in U.S. dollars). Q. WHY DID THE FUND PERFORM THIS WAY? A. The Fund trailed its SSB PMI Value EPAC Index benchmark by a small margin in six months when the U.S. dollar-denominated benchmark achieved a small rise chiefly as a result of dollar weakness. While stock selection was mixed, an overweight position in the stock markets of East Asia contributed to the small underperformance. European financial services companies such as BNP Paribas, Royal Bank of Scotland Group PLC and Zurich Financial Services performed well. The stock prices of these companies bounced with improved perceptions about the quality of loan books, increased optimism about capital markets activity, and in sympathy with stronger equity prices. In the case of Zurich Financial Services, new management took decisive action to return the loss making group to profit by pulling out of non-core businesses. It also launched a successful rights issue. Iberdrola SA, the Spanish electricity company, was one of the biggest individual contributors to portfolio performance. The company reported strong profits in spite of a decline in Spanish wholesale electricity prices. This follows a recent change in management, which has had a positive impact on the way in which the group is managed. From a negative perspective, unpredictable events in Asia caused the Fund's overweight position to detract from performance. In particular, rising tensions over North Korea's nuclear ambitions hurt stock prices in South Korea. Additionally, the outbreak of Severe Acute Respiratory Syndrome (SARS) prevented stocks in the region from participating in the post Iraq war global equity market rally. In Hong Kong, the stock price of property, ports and telecommunications group Wharf Holdings fell as its earnings were judged particularly vulnerable to SARS. Q. HOW WAS THE FUND MANAGED? A. From a geographical perspective, the Fund was overweight in East Asia and underweight in Japan. Recent stock price falls in East Asia led us to such an allocation, and we believe the Fund will be well positioned for a recovery. (UNAUDITED) 12 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS United Kingdom 21.60% Japan 13.60% The Netherlands 11.80% Germany 9.40% Switzerland 8.60% France 7.20% Spain 6.40% Australia 5.00% Singapore 3.60% Italy 3.00% Russia 2.20% India 1.40% Brazil 1.30% South Korea 1.20% Hong Kong 1.10% Denmark 1.00% Belgium 0.90% United States 0.70%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. IBERDROLA SA (SPAIN) (3.6%) 2. BNP PARIBAS (FRANCE) (3.6%) 3. UNILEVER PLC (UNITED KINGDOM) (3.4%) 4. E.ON AG (GERMANY) (3.3%) 5. ROYAL DUTCH PETROLEUM CO. (THE NETHERLANDS) (3.3%) 6. ING GROEP NV (THE NETHERLANDS) (3.1%) 7. BARCLAYS PLC (UNITED KINGDOM) (3.1%) 8. UBS AG (SWITZERLAND) (3.0%) 9. TELEFONICA SA (SPAIN) (2.8%) 10 AUSTRALIA & NEW ZEALAND BANKING GROUP LTD (AUSTRALIA) (2.8%) TOP 10 EQUITY HOLDINGS COMPRISED 32.0% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($11,467,714). AS OF APRIL 30, 2003, THE FUND HELD 50 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 3 YEARS 5 YEARS 10 YEARS - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge (18.94%) (17.93%) (7.55%) 0.06% With Sales Charge* (23.62%) (19.52%) (8.64%) (0.53%) - -------------------------------------------------------------------------------- Class B Shares Without CDSC (19.37%) (18.11%) (7.67%) (0.01%) With CDSC** (23.26%) (18.94%) (7.99%) (0.01%) - -------------------------------------------------------------------------------- Institutional Shares (18.59%) (17.42%) (7.14%) 0.40% - -------------------------------------------------------------------------------- Select Shares (18.87%) (17.82%) (7.47%) 0.10% - --------------------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% for the ten year period. (UNAUDITED) 13 [CHART] 10-YEAR PERFORMANCE (4/30/93 TO 4/30/03)
JPMORGAN FLEMING INTERNATIONAL VALUE FUND (INSTITUTIONAL SHARES) SSB PMI VALUE EPAC INDEX LIPPER INTERNATIONAL FUNDS INDEX 4/30/93 $ 3,000,000 $ 3,000,000 $ 3,000,000 5/31/93 $ 3,084,300 $ 3,057,900 $ 3,069,300 6/30/93 $ 2,991,154 $ 2,974,419 $ 3,008,835 7/31/93 $ 3,119,176 $ 3,113,920 $ 3,104,215 8/31/93 $ 3,258,603 $ 3,266,190 $ 3,309,714 9/30/93 $ 3,173,879 $ 3,189,761 $ 3,297,468 10/31/93 $ 3,243,704 $ 3,280,670 $ 3,460,363 11/30/93 $ 2,963,448 $ 3,019,856 $ 3,322,986 12/31/93 $ 3,138,292 $ 3,226,113 $ 3,656,282 1/31/94 $ 3,402,222 $ 3,509,365 $ 3,884,068 2/28/94 $ 3,383,170 $ 3,491,467 $ 3,790,462 3/31/94 $ 3,252,918 $ 3,368,568 $ 3,616,859 4/30/94 $ 3,386,613 $ 3,514,764 $ 3,712,706 5/31/94 $ 3,408,964 $ 3,510,897 $ 3,707,137 6/30/94 $ 3,408,964 $ 3,577,253 $ 3,648,564 7/31/94 $ 3,447,145 $ 3,617,676 $ 3,760,940 8/31/94 $ 3,488,510 $ 3,694,371 $ 3,891,068 9/30/94 $ 3,364,319 $ 3,588,712 $ 3,790,679 10/31/94 $ 3,443,717 $ 3,726,878 $ 3,858,532 11/30/94 $ 3,281,518 $ 3,533,825 $ 3,678,339 12/31/94 $ 3,326,803 $ 3,553,968 $ 3,629,417 1/31/95 $ 3,198,056 $ 3,423,893 $ 3,449,398 2/28/95 $ 3,162,557 $ 3,394,105 $ 3,448,363 3/31/95 $ 3,310,565 $ 3,620,831 $ 3,539,055 4/30/95 $ 3,407,234 $ 3,755,526 $ 3,669,292 5/31/95 $ 3,339,770 $ 3,724,731 $ 3,705,251 6/30/95 $ 3,262,622 $ 3,653,961 $ 3,719,331 7/31/95 $ 3,471,756 $ 3,898,045 $ 3,923,894 8/31/95 $ 3,407,528 $ 3,734,328 $ 3,857,580 9/30/95 $ 3,436,492 $ 3,822,458 $ 3,922,002 10/31/95 $ 3,359,171 $ 3,711,606 $ 3,840,424 11/30/95 $ 3,436,432 $ 3,837,059 $ 3,880,365 12/31/95 $ 3,591,759 $ 3,997,831 $ 3,992,895 1/31/96 $ 3,634,860 $ 3,989,436 $ 4,087,128 2/29/96 $ 3,621,774 $ 4,001,005 $ 4,104,702 3/31/96 $ 3,704,351 $ 4,097,430 $ 4,168,736 4/30/96 $ 3,823,261 $ 4,225,269 $ 4,304,636 5/31/96 $ 3,776,999 $ 4,169,918 $ 4,299,901 6/30/96 $ 3,820,057 $ 4,200,776 $ 4,339,030 7/31/96 $ 3,690,939 $ 4,089,875 $ 4,192,805 8/31/96 $ 3,704,226 $ 4,127,502 $ 4,247,311 9/30/96 $ 3,803,500 $ 4,237,294 $ 4,342,451 10/31/96 $ 3,780,298 $ 4,218,650 $ 4,325,081 11/30/96 $ 3,916,011 $ 4,390,349 $ 4,528,360 12/31/96 $ 3,896,431 $ 4,342,494 $ 4,568,663 1/31/97 $ 3,806,813 $ 4,154,030 $ 4,574,602 2/28/97 $ 3,847,927 $ 4,225,479 $ 4,657,402 3/31/97 $ 3,882,173 $ 4,256,748 $ 4,682,086 4/30/97 $ 3,895,761 $ 4,260,153 $ 4,702,688 5/31/97 $ 4,112,755 $ 4,578,386 $ 4,967,919 6/30/97 $ 4,291,659 $ 4,837,523 $ 5,206,379 7/31/97 $ 4,336,293 $ 4,896,057 $ 5,373,504 8/31/97 $ 4,023,212 $ 4,600,825 $ 4,986,074 9/30/97 $ 4,226,385 $ 4,852,950 $ 5,306,180 10/31/97 $ 3,919,972 $ 4,522,949 $ 4,903,441 11/30/97 $ 3,892,532 $ 4,445,607 $ 4,862,252 12/31/97 $ 3,952,866 $ 4,469,613 $ 4,900,178 1/31/98 $ 4,095,960 $ 4,681,026 $ 5,018,762 2/28/98 $ 4,320,009 $ 4,965,164 $ 5,337,454 3/31/98 $ 4,452,201 $ 5,181,149 $ 5,627,277 4/30/98 $ 4,522,101 $ 5,210,681 $ 5,713,938 5/31/98 $ 4,525,718 $ 5,219,018 $ 5,725,365 6/30/98 $ 4,555,136 $ 5,255,030 $ 5,675,555 7/31/98 $ 4,566,068 $ 5,301,274 $ 5,762,391 8/31/98 $ 3,949,649 $ 4,563,867 $ 4,933,183 9/30/98 $ 3,736,763 $ 4,385,420 $ 4,779,761 10/31/98 $ 4,114,923 $ 4,877,464 $ 5,131,073 11/30/98 $ 4,316,966 $ 5,127,678 $ 5,388,140 12/31/98 $ 4,492,235 $ 5,222,027 $ 5,520,688 1/31/99 $ 4,488,641 $ 5,166,151 $ 5,554,364 2/28/99 $ 4,375,078 $ 5,102,091 $ 5,411,617 3/31/99 $ 4,568,019 $ 5,388,318 $ 5,591,824 4/30/99 $ 4,757,135 $ 5,721,316 $ 5,852,403 5/31/99 $ 4,537,831 $ 5,412,365 $ 5,634,694 6/30/99 $ 4,753,378 $ 5,587,726 $ 5,901,778 7/31/99 $ 4,901,208 $ 5,770,444 $ 6,033,388 8/31/99 $ 4,923,754 $ 5,834,496 $ 6,081,052 9/30/99 $ 4,942,464 $ 5,857,834 $ 6,100,511 10/31/99 $ 5,131,760 $ 6,051,729 $ 6,313,419 11/30/99 $ 5,354,992 $ 6,092,880 $ 6,776,192 12/31/99 $ 5,849,793 $ 6,440,784 $ 7,608,986 E1/31/00 $ 5,528,640 $ 5,875,283 $ 7,163,861 E2/29/00 $ 5,797,884 $ 5,810,067 $ 7,636,675 E3/31/00 $ 5,897,028 $ 6,230,716 $ 7,656,531 E4/30/00 $ 5,544,386 $ 6,018,249 $ 7,171,107 E5/31/00 $ 5,354,214 $ 6,016,443 $ 6,973,901 E6/30/00 $ 5,552,319 $ 6,287,183 $ 7,296,793 E7/31/00 $ 5,354,102 $ 6,048,899 $ 7,060,377 E8/31/00 $ 5,354,102 $ 6,174,716 $ 7,179,697 E9/30/00 $ 5,072,476 $ 5,959,219 $ 6,761,121 E10/31/00 $ 4,866,533 $ 5,881,153 $ 6,531,243 E11/30/00 $ 4,636,833 $ 5,720,597 $ 6,255,624 E12/31/00 $ 4,811,178 $ 6,004,339 $ 6,488,959 E1/31/01 $ 4,798,188 $ 5,986,926 $ 6,527,244 E2/28/01 $ 4,420,091 $ 5,696,560 $ 6,069,031 E3/31/01 $ 4,111,568 $ 5,330,272 $ 5,642,379 E4/30/01 $ 4,407,190 $ 5,694,862 $ 5,985,435 E5/31/01 $ 4,281,144 $ 5,556,477 $ 5,840,588 E6/30/01 $ 4,076,934 $ 5,415,343 $ 5,675,883 E7/31/01 $ 3,959,518 $ 5,279,417 $ 5,528,310 E8/31/01 $ 3,902,897 $ 5,227,679 $ 5,417,191 E9/30/01 $ 3,528,999 $ 4,689,228 $ 4,826,717 E10/31/01 $ 3,598,521 $ 4,772,228 $ 4,957,521 E11/30/01 $ 3,728,787 $ 4,890,579 $ 5,142,437 E12/31/01 $ 3,756,380 $ 4,914,543 $ 5,233,972 E1/31/02 $ 3,588,470 $ 4,691,422 $ 5,022,520 E2/28/02 $ 3,544,332 $ 4,748,189 $ 5,092,835 E3/31/02 $ 3,765,144 $ 5,018,835 $ 5,362,246 E4/30/02 $ 3,835,928 $ 5,099,639 $ 5,399,782 E5/31/02 $ 3,937,580 $ 5,240,899 $ 5,476,999 E6/30/02 $ 3,761,177 $ 5,034,407 $ 5,260,657 E7/31/02 $ 3,399,352 $ 4,561,676 $ 4,735,644 E8/31/02 $ 3,372,837 $ 4,573,993 $ 4,739,432 E9/30/02 $ 2,975,517 $ 4,068,109 $ 4,228,995 E10/31/02 $ 3,099,001 $ 4,234,495 $ 4,448,480 E11/30/02 $ 3,235,976 $ 4,433,940 $ 4,658,893 E12/31/02 $ 3,104,919 $ 4,272,544 $ 4,509,809 E1/31/03 $ 3,017,982 $ 4,110,615 $ 4,344,750 E2/28/03 $ 2,921,708 $ 4,018,948 $ 4,216,145 E3/31/03 $ 2,825,584 $ 3,918,474 $ 4,112,849 E4/30/03 $ 3,122,386 $ 4,305,228 $ 4,520,022
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 10/4/93. Returns for the Institutional Shares prior to 10/4/93 (offering date of the Institutional Shares) are calculated using the historical expenses of the J.P. Morgan International Equity Fund, which are higher than the expenses of the Institutional Shares. Returns for the Select Shares prior to 9/10/01 (offering date of the Select Shares) are calculated using the historical expenses of the J.P. Morgan International Equity Fund, which were lower than the expenses of the Select Share. Returns for the Class A and B Shares prior to 9/28/01 (offering date of the Class A and B Shares) are calculated using the historical expenses of the Select Shares, which are lower than the expenses of the Class A and B Shares. The graph illustrates comparative performance for $3,000,000 invested in of the JPMorgan Fleming International Value Fund, Salomon Smith Barney PMI Value EPAC Index, and Lipper International Funds Index from April 30, 1993 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The Salomon Smith Barney PMI Value EPAC Index consists of stocks in the Euro Pacific region of the Primary Market Index (The Primary Market Index are stocks that fall in the top 80% of each country's cumulative available capital) that have a value style. The Lipper International Funds Index represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Institutional Shares have a $3,000,000 minimum initial deposit and carry no sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 14 JPMORGAN FLEMING INTERNATIONAL OPPORTUNITIES FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming International Opportunities Fund, which seeks long-term capital appreciation through investing in foreign equities, declined by 0.9% (Institutional Shares) in the six months ended April 30, 2003. This compares with a rise of 1.8% for the MSCI EAFE Index (in U.S. dollars). Please note that the Fund's benchmark was changed to the MSCI EAFE Index on February 28, 2003. Q. WHY DID THE FUND PERFORM THIS WAY? A. The Fund trailed its MSCI EAFE Index benchmark in a six months when the U.S. dollar denominated benchmark achieved a small rise chiefly as a result of dollar weakness. Stock price movements were mixed. The portfolio was caught out by a combination of difficulties in just a few holdings, and its Asian country allocation. These negatives were partially offset by strong performances from some European stocks. The greatest problems occurred at holdings in the U.K. and the Netherlands. U.K. electrical retailer Dixons Group PLC fell back sharply following poor Christmas trading and the announcement of a monopolies inquiry into its sale of extended warranties, from which it makes significant profits. At Corus, the Anglo-Dutch steel group, the Dutch Supervisory Board stopped the sale of the aluminum business, so preventing it from paying down debt and focusing on its carbon steel business. Dutch insurer Aegon NV was caught up in the confusion surrounding accounting fraud at Ahold, the Dutch food retailer where it holds a 5% stake. There was also a disappointment in Japan, where miniature ball bearings manufacturer Minebea Co., LTD fell in price following poor demand for the consumer electronics goods in which these components are used. Asset allocation caused the Fund to be vulnerable to rising tensions in East Asia. An overweight position in South Korea hurt performance as North Korea publicized its nuclear ambitions. There was, however, strong performance from a number of European holdings. In particular, the retail banks Barclays PLC, BNP Paribas and UniCredito Italiano SPA performed well. Additionally, Spanish utility Iberdrola SA showed signs of benefiting from the actions of new management. Q. HOW WAS THE FUND MANAGED? A. Current positions reflect a fairly neutral view regarding the economic cycle, with holdings fairly well balanced between defensive and cyclical stocks. The biggest sector overweights are in the Banking and Telecommunications sectors, while the greatest underweight is in Energy. (UNAUDITED) 15 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS United Kingdom 28.20% Japan 14.80% France 11.90% Switzerland 9.20% The Netherlands 5.00% Australia 4.20% Spain 3.30% Germany 3.20% Italy 3.10% Hong Kong 2.60% Finland 2.40% India 2.40% Sweden 2.10% Russia 2.00% South Korea 1.60% Belgium 1.20% Mexico 1.10% Singapore 1.00% United States 0.70%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. VODAFONE GROUP PLC (UNITED KINGDOM) (3.8%) 2. BNP PARIBAS (FRANCE) (2.8%) 3. UNILEVER PLC (UNITED KINGDOM) (2.6%) 4. NOKIA OYJ (FINLAND) (2.4%) 5. UNICREDITO ITALIANO SPA (ITALY) (2.4%) 6. TOTAL FINA ELF SA (FRANCE) (2.3%) 7. NOVARTIS AG (SWITZERLAND) (2.3%) 8. IBERDROLA SA (SPAIN) (2.2%) 9. ASTRAZENECA PLC (UNITED KINGDOM) (2.1%) 10. LUKOIL, ADR (RUSSIA) (2.0%) TOP 10 EQUITY HOLDINGS COMPRISED 24.9% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($50,178,323). AS OF APRIL 30, 2003, THE FUND HELD 105 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR 3 YEARS 5 YEARS (2/26/97) - --------------------------------------------------------------------------------- Class A Shares Without Sales Charge (20.02%) (16.60%) (7.02%) (3.63%) With Sales Charge* (24.59%) (18.24%) (8.11%) (4.55%) - --------------------------------------------------------------------------------- Class B Shares Without CDSC (20.50%) (16.82%) (7.16%) (3.75%) With CDSC** (24.43%) (17.63%) (7.51%) (3.75%) - --------------------------------------------------------------------------------- Institutional Shares (19.28%) (15.91%) (6.52%) (3.17%) - --------------------------------------------------------------------------------- Select Shares (19.44%) (16.25%) (6.78%) (3.44%) - ---------------------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% CDSC for the period since inception. (UNAUDITED) 16 [CHART] LIFE OF FUND PERFORMANCE (2/26/97 TO 4/30/03)
JPMORGAN FLEMING INTERNATIONAL MSCI ALL COUNTRY WORLD LIPPER INTERNATIONAL OPPORTUNITIES FUND (INSTITUTIONAL SHARES) MSCI EAFE INDEX INDEX FREE (EX - U.S.) FUNDS INDEX 2/26/97 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 2,988,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,002,940 $ 3,010,800 $ 2,993,700 $ 3,015,900 4/30/97 $ 3,023,961 $ 3,026,757 $ 3,019,146 $ 3,029,170 $ 3,140,988 $ 3,223,799 $ 3,205,428 $ 3,200,015 $ 3,284,845 $ 3,401,430 $ 3,382,367 $ 3,353,616 $ 3,374,850 $ 3,456,534 $ 3,450,691 $ 3,461,267 $ 3,137,935 $ 3,198,331 $ 3,179,122 $ 3,211,710 $ 3,314,915 $ 3,377,437 $ 3,351,112 $ 3,417,901 $ 3,008,948 $ 3,117,712 $ 3,065,598 $ 3,158,483 $ 2,981,868 $ 3,085,912 $ 3,027,278 $ 3,131,951 $ 3,052,240 $ 3,112,759 $ 3,062,091 $ 3,156,381 $ 3,091,614 $ 3,255,012 $ 3,153,648 $ 3,232,765 $ 3,263,817 $ 3,463,984 $ 3,363,996 $ 3,438,046 $ 3,408,730 $ 3,570,675 $ 3,480,390 $ 3,624,731 4/30/98 $ 3,444,863 $ 3,598,883 $ 3,505,449 $ 3,680,552 $ 3,351,162 $ 3,581,248 $ 3,441,650 $ 3,687,913 $ 3,299,890 $ 3,608,466 $ 3,428,916 $ 3,655,829 $ 3,312,099 $ 3,644,911 $ 3,461,491 $ 3,711,763 $ 2,722,877 $ 3,193,307 $ 2,973,420 $ 3,177,640 $ 2,595,718 $ 3,095,272 $ 2,910,681 $ 3,078,816 $ 2,922,779 $ 3,417,800 $ 3,215,430 $ 3,305,108 $ 3,062,195 $ 3,592,791 $ 3,388,098 $ 3,470,694 $ 3,169,066 $ 3,734,347 $ 3,504,988 $ 3,556,073 $ 3,196,954 $ 3,723,144 $ 3,501,132 $ 3,577,766 $ 3,100,406 $ 3,634,533 $ 3,422,707 $ 3,485,817 $ 3,293,251 $ 3,786,093 $ 3,588,023 $ 3,601,895 4/30/99 $ 3,461,207 $ 3,939,430 $ 3,767,425 $ 3,769,743 $ 3,361,524 $ 3,736,549 $ 3,590,356 $ 3,629,508 $ 3,557,501 $ 3,882,275 $ 3,755,512 $ 3,801,547 $ 3,674,899 $ 3,997,578 $ 3,843,767 $ 3,886,322 $ 3,712,382 $ 4,012,369 $ 3,857,220 $ 3,917,024 $ 3,749,878 $ 4,052,894 $ 3,883,449 $ 3,929,558 $ 3,849,999 $ 4,204,878 $ 4,027,913 $ 4,066,700 $ 4,037,494 $ 4,350,787 $ 4,189,030 $ 4,364,789 $ 4,432,765 $ 4,741,488 $ 4,588,663 $ 4,901,221 $ 4,157,047 $ 4,440,403 $ 4,339,499 $ 4,614,500 $ 4,293,398 $ 4,559,850 $ 4,456,665 $ 4,919,057 $ 4,325,169 $ 4,736,772 $ 4,624,236 $ 4,931,846 E4/30/00 $ 4,134,862 $ 4,487,618 $ 4,366,203 $ 4,619,167 $ 4,071,598 $ 4,378,120 $ 4,254,429 $ 4,492,140 $ 4,267,849 $ 4,549,305 $ 4,435,667 $ 4,700,126 $ 4,141,094 $ 4,358,689 $ 4,260,458 $ 4,547,842 $ 4,210,665 $ 4,396,609 $ 4,313,288 $ 4,624,701 $ 3,985,394 $ 4,182,494 $ 4,073,901 $ 4,355,081 $ 3,814,022 $ 4,083,788 $ 3,944,351 $ 4,207,008 $ 3,611,116 $ 3,930,646 $ 3,767,249 $ 4,029,472 $ 3,713,672 $ 4,070,183 $ 3,896,089 $ 4,179,772 $ 3,726,670 $ 4,068,148 $ 3,954,530 $ 4,204,432 $ 3,441,580 $ 3,763,037 $ 3,641,332 $ 3,909,281 $ 3,169,695 $ 3,512,043 $ 3,383,889 $ 3,634,459 E4/30/01 $ 3,402,667 $ 3,756,130 $ 3,613,994 $ 3,855,434 $ 3,383,272 $ 3,623,538 $ 3,514,248 $ 3,762,132 $ 3,273,316 $ 3,475,336 $ 3,379,301 $ 3,656,040 $ 3,129,617 $ 3,412,084 $ 3,304,280 $ 3,560,983 $ 3,113,343 $ 3,325,759 $ 3,222,334 $ 3,489,407 $ 2,742,855 $ 2,988,859 $ 2,880,444 $ 3,109,062 $ 2,807,861 $ 3,065,374 $ 2,961,097 $ 3,193,317 $ 2,957,239 $ 3,178,486 $ 3,096,419 $ 3,312,428 $ 3,005,738 $ 3,197,240 $ 3,136,363 $ 3,371,389 $ 2,851,243 $ 3,027,466 $ 3,002,126 $ 3,235,185 $ 2,851,243 $ 3,048,658 $ 3,023,742 $ 3,280,478 $ 3,008,917 $ 3,213,591 $ 3,187,931 $ 3,454,015 E4/30/02 $ 3,045,024 $ 3,234,800 $ 3,208,652 $ 3,478,193 $ 3,097,703 $ 3,275,882 $ 3,243,627 $ 3,527,931 $ 2,933,524 $ 3,145,502 $ 3,103,502 $ 3,388,578 $ 2,641,052 $ 2,835,041 $ 2,800,911 $ 3,050,398 $ 2,670,632 $ 2,828,521 $ 2,801,191 $ 3,052,838 $ 2,348,821 $ 2,524,738 $ 2,504,265 $ 2,724,048 $ 2,480,120 $ 2,660,316 $ 2,638,493 $ 2,865,426 $ 2,611,566 $ 2,781,094 $ 2,765,405 $ 3,000,960 $ 2,487,778 $ 2,687,650 $ 2,676,082 $ 2,904,930 $ 2,364,882 $ 2,575,575 $ 2,582,152 $ 2,798,609 $ 2,305,050 $ 2,516,594 $ 2,529,734 $ 2,715,770 $ 2,235,207 $ 2,467,269 $ 2,480,657 $ 2,649,234 E4/30/03 $ 2,458,936 $ 2,709,061 $ 2,719,792 $ 2,911,508
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 2/26/97. Returns for the Institutional Shares prior to 9/10/01 (offering date of the Institutional Shares) are calculated using the historical expenses of the J.P. Morgan Institutional International Opportunities Fund, which are higher than the expenses of the Institutional Shares. Returns for the Select Shares prior to 9/10/01 (offering date of the Select Shares) are calculated using the historical expenses of the J.P. Morgan International Opportunities Fund, which are similar to the expenses of the Select Shares. Returns for the Class A and B Shares prior to 9/10/01 (offering date of the Class A and B Shares) are calculated using the historical expenses of the J.P. Morgan International Opportunities Fund, which are lower than the expenses of the Class A and B Shares. The graph illustrates comparative performance for $3,000,000 invested in Institutional Shares of the JPMorgan Fleming International Opportunities Fund, MSCI EAFE Index, MSCI All Country World Index Free (ex-U.S.), and Lipper International Funds Index from February 26, 1997 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI EAFE (Europe, Australasia, Far East) Index is a replica (or model) of the performance of the worlds equity markets, excluding the U.S. and Canada. The MSCI All Country World Index Free (ex-U.S.) is an unmanaged index that measures developed and emerging foreign stock market performance. The Lipper International Funds Index represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Institutional Shares have a $3,000,000 minimum initial deposit and carry no sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 17 JPMORGAN FLEMING EMERGING MARKETS EQUITY FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming Emerging Markets Equity Fund, which seeks capital appreciation from a portfolio of emerging market equities, rose 4.3% (Institutional Shares) in the six months ended April 30, 2003. This compares with a rise of 5.9% for the MSCI Emerging Markets Equity Free Index (in U.S. dollars). Q. WHY DID THE FUND PERFORM THIS WAY? A. The Fund trailed its MSCI Emerging Markets Equity Free Index benchmark as a result of an overweight position in South Korea. A confluence of unforeseeable events depressed Korean equity prices, causing the Fund to underperform in Asia as a whole. Outside Asia -- where market movements were more predictable -- the Fund performed relatively well against the benchmark. The sudden escalation in tensions between North Korea and the United States over North Korea's nuclear ambitions caused many foreign investors to sell South Korean equities. This added to market uncertainties regarding the government investigation of accounting at the Chaebol business empires, and the durability of the consumer credit boom. The stock prices of two holdings -- Kookmin Bank and SK Telecom Co., LTD -- fell sharply. In Latin America, Brazil rallied as President Lula da Silva's coalition building paved the way for much needed fiscal reforms and central bank autonomy. The Fund was overweight in Brazil which contributed to performance. Its two leading holdings were blue chips Banco Itau Holding Financeira SA and TNE, the fixed line telecommunications company. There was also strong performance from Russia. The Fund gained from a slightly overweight position and good stock selection. Cellular phone stocks Mobile Telesystems and Vimpel-Communication performed well in sympathy with strong subscriber and earnings growth. Q. HOW WAS THE FUND MANAGED? A. The Fund's asset allocation remains broadly as it was throughout the period. We are still overweight in Brazil, where we believe the Lula government will introduce market-friendly economic policies and restructure the national debt. In Asia, we remain overweight in South Korean equities, where recent stock price falls have caused equities to trade below their book value. The most significant changes in allocation have been in Russia and South Africa, where we have reduced the overweight positions. (UNAUDITED) 18 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS South Korea 25.50% South Africa 15.50% Brazil 10.60% Taiwan 7.50% Russia 7.40% Mexico 6.10% India 4.30% China 4.00% Malaysia 3.60% Israel 2.70% Hong Kong 2.20% Indonesia 2.20% Chile 1.90% Poland 1.30% Turkey 1.30% Thailand 1.10% Other (below 1%) 2.80%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. SAMSUNG ELECTRONICS CO., LTD (SOUTH KOREA) (8.8%) 2. ANGLO AMERICAN PLC (SOUTH AFRICA) (4.8%) 3. KOOKMIN BANK (SOUTH KOREA) (4.4%) 4. SK TELECOM CO., LTD, ADR (SOUTH KOREA) (4.2%) 5. POSCO (SOUTH KOREA) (3.2%) 6. PETROLEO BRASILEIRO SA, ADR (BRAZIL) (2.7%) 7. TEVA PHARMACEUTICAL INDUSTRIES LTD, ADR (ISRAEL) (2.3%) 8. CHINA MOBILE LTD (CHINA) (2.3%) 9. YUKOS, ADR (RUSSIA) (2.2%) 10. SAPPI LTD (SOUTH AFRICA) (2.1%) TOP 10 EQUITY HOLDINGS COMPRISED 37.0% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($22,028,162). AS OF APRIL 30, 2003, THE FUND HELD 88 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR 3 YEARS 5 YEARS (11/15/93) - -------------------------------------------------------------------------------- Class A Shares Without Sales Charge (18.57%) (12.30%) (8.50%) (4.38%) With Sales Charge* (23.29%) (14.02%) (9.58%) (4.97%) - -------------------------------------------------------------------------------- Class B Shares Without CDSC (18.72%) (12.47%) (8.60%) (4.44%) With CDSC** (22.76%) (13.29%) (8.92%) (4.44%) - -------------------------------------------------------------------------------- Institutional Shares (18.05%) (11.89%) (8.06%) (4.07%) - -------------------------------------------------------------------------------- Select Shares (18.28%) (12.19%) (8.43%) (4.34%) - --------------------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% for the period since inception. (UNAUDITED) 19 [CHART] LIFE OF FUND PERFORMANCE (11/15/93 TO 4/30/03)
JPMORGAN FLEMING EMERGING MARKETS MSCI EMERGING MARKETS LIPPER EMERGING MARKET EQUITY FUND (INSTITUTIONAL SHARES) EQUITY FREE INDEX EQUITY FUNDS AVERAGE 11/15/93 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,062,700 $ 3,000,000 $ 3,000,000 $ 3,519,961 $ 3,495,900 $ 3,416,700 $ 3,752,983 $ 3,559,525 $ 3,576,602 $ 3,669,291 $ 3,496,166 $ 3,485,398 $ 3,358,502 $ 3,179,763 $ 3,216,325 4/30/94 $ 3,257,075 $ 3,116,168 $ 3,110,508 $ 3,319,937 $ 3,222,741 $ 3,174,896 $ 3,239,262 $ 3,133,793 $ 3,058,060 $ 3,397,662 $ 3,328,715 $ 3,239,708 $ 3,711,267 $ 3,741,808 $ 3,549,101 $ 3,791,801 $ 3,784,465 $ 3,585,301 $ 3,726,203 $ 3,716,345 $ 3,507,500 $ 3,582,744 $ 3,523,095 $ 3,354,573 $ 3,267,104 $ 3,240,190 $ 3,116,063 $ 2,868,844 $ 2,895,434 $ 2,821,907 $ 2,792,820 $ 2,821,311 $ 2,780,143 $ 2,853,703 $ 2,839,367 $ 2,807,388 4/30/95 $ 2,951,015 $ 2,966,855 $ 2,922,210 $ 3,072,597 $ 3,124,691 $ 3,070,951 $ 3,087,652 $ 3,134,066 $ 3,075,557 $ 3,212,393 $ 3,204,269 $ 3,195,504 $ 3,124,374 $ 3,128,648 $ 3,134,789 $ 3,094,067 $ 3,113,943 $ 3,138,238 $ 2,951,121 $ 2,994,679 $ 3,000,783 $ 2,862,883 $ 2,941,374 $ 2,953,670 $ 2,950,773 $ 3,071,971 $ 3,052,028 $ 3,177,393 $ 3,290,388 $ 3,322,743 $ 3,162,141 $ 3,238,071 $ 3,301,809 $ 3,201,984 $ 3,263,328 $ 3,322,611 4/30/96 $ 3,306,049 $ 3,393,861 $ 3,475,783 $ 3,330,514 $ 3,378,589 $ 3,527,920 $ 3,339,839 $ 3,399,536 $ 3,553,321 $ 3,180,529 $ 3,167,347 $ 3,345,096 $ 3,251,136 $ 3,248,432 $ 3,444,780 $ 3,235,856 $ 3,276,693 $ 3,468,549 $ 3,146,870 $ 3,189,205 $ 3,381,835 $ 3,183,688 $ 3,242,784 $ 3,465,705 $ 3,211,705 $ 3,257,376 $ 3,528,088 $ 3,471,211 $ 3,479,529 $ 3,813,510 $ 3,567,016 $ 3,628,453 $ 3,950,796 $ 3,557,742 $ 3,533,025 $ 3,863,484 4/30/97 $ 3,539,242 $ 3,539,384 $ 3,899,414 $ 3,665,946 $ 3,640,611 $ 4,077,227 $ 3,851,443 $ 3,835,384 $ 4,313,706 $ 3,978,156 $ 3,892,531 $ 4,460,804 $ 3,564,030 $ 3,397,012 $ 4,065,130 $ 3,700,176 $ 3,491,109 $ 4,229,768 $ 3,047,835 $ 2,918,218 $ 3,569,078 $ 2,961,276 $ 2,811,703 $ 3,430,241 $ 2,963,941 $ 2,879,465 $ 3,486,840 $ 2,744,906 $ 2,653,715 $ 3,240,669 $ 2,917,561 $ 2,930,763 $ 3,539,459 $ 3,057,020 $ 3,057,958 $ 3,672,897 4/30/98 $ 3,083,616 $ 3,024,626 $ 3,696,403 $ 2,638,959 $ 2,610,252 $ 3,219,567 $ 2,336,798 $ 2,336,437 $ 2,918,860 $ 2,418,119 $ 2,410,502 $ 3,010,804 $ 1,729,680 $ 1,713,626 $ 2,161,155 $ 1,792,814 $ 1,822,270 $ 2,221,451 $ 1,965,820 $ 2,014,155 $ 2,422,270 $ 2,072,171 $ 2,181,732 $ 2,579,476 $ 2,064,918 $ 2,150,097 $ 2,539,236 $ 2,010,198 $ 2,115,481 $ 2,478,040 $ 1,973,813 $ 2,136,001 $ 2,465,898 $ 2,199,618 $ 2,417,526 $ 2,741,092 4/30/99 $ 2,512,843 $ 2,716,574 $ 3,124,023 $ 2,480,176 $ 2,700,818 $ 3,094,969 $ 2,720,505 $ 3,007,360 $ 3,464,509 $ 2,665,823 $ 2,925,560 $ 3,381,707 $ 2,676,753 $ 2,952,183 $ 3,343,155 $ 2,614,920 $ 2,852,399 $ 3,221,464 $ 2,629,564 $ 2,913,155 $ 3,336,471 $ 2,859,124 $ 3,174,465 $ 3,701,147 $ 3,291,996 $ 3,578,257 $ 4,368,464 $ 3,244,262 $ 3,599,727 $ 4,329,584 $ 3,222,201 $ 3,647,243 $ 4,517,921 $ 3,214,790 $ 3,665,114 $ 4,563,101 E4/30/00 $ 2,961,786 $ 3,317,662 $ 4,063,897 $ 2,855,458 $ 3,180,642 $ 3,829,817 $ 3,013,079 $ 3,292,601 $ 4,023,606 $ 2,870,259 $ 3,123,361 $ 3,840,934 $ 2,910,443 $ 3,138,666 $ 3,920,057 $ 2,657,525 $ 2,864,660 $ 3,523,739 $ 2,448,644 $ 2,656,972 $ 3,265,802 $ 2,206,718 $ 2,424,753 $ 2,954,571 $ 2,296,752 $ 2,483,189 $ 3,059,754 $ 2,604,976 $ 2,825,125 $ 3,424,782 $ 2,421,586 $ 2,603,917 $ 3,162,101 $ 2,190,324 $ 2,348,213 $ 2,869,607 E4/30/01 $ 2,285,822 $ 2,464,214 $ 3,034,896 $ 2,355,540 $ 2,493,538 $ 3,125,640 $ 2,304,189 $ 2,442,421 $ 3,066,878 $ 2,135,523 $ 2,288,060 $ 2,865,997 $ 2,109,896 $ 2,265,408 $ 2,808,391 $ 1,794,256 $ 1,914,723 $ 2,411,846 $ 1,885,942 $ 2,033,627 $ 2,558,486 $ 2,080,383 $ 2,245,938 $ 2,816,893 $ 2,202,293 $ 2,424,265 $ 2,994,076 $ 2,298,534 $ 2,506,448 $ 3,111,144 $ 2,342,895 $ 2,547,554 $ 3,177,412 $ 2,446,451 $ 2,700,916 $ 3,357,889 E4/30/02 $ 2,472,384 $ 2,718,472 $ 3,391,132 $ 2,439,006 $ 2,675,249 $ 3,360,272 $ 2,242,910 $ 2,474,605 $ 3,112,284 $ 2,035,665 $ 2,286,288 $ 2,881,664 $ 2,061,518 $ 2,321,496 $ 2,903,565 $ 1,858,046 $ 2,071,007 $ 2,620,467 $ 1,943,145 $ 2,205,415 $ 2,742,581 $ 2,072,753 $ 2,357,148 $ 2,914,266 $ 2,007,668 $ 2,278,891 $ 2,840,535 $ 2,007,668 $ 2,268,863 $ 2,816,959 $ 1,944,427 $ 2,207,604 $ 2,756,113 $ 1,854,983 $ 2,144,908 $ 2,665,988 E4/30/03 $ 2,026,101 $ 2,336,020 $ 2,913,658
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 11/15/93. Returns for the Institutional Shares prior to 9/10/01 (offering date of the Institutional Shares) are calculated using the historical expenses of the J.P. Morgan Institutional Emerging Markets Equity Fund, which are similar to the expenses of the Institutional Shares. Returns for the Select Shares prior to 9/10/01 (offering date of the Select Shares) are calculated using the historical expenses of the J.P. Morgan Emerging Markets Equity Fund, which are similar to the expenses of the Select Shares. Returns for the Class A and B Shares prior to 9/28/01 (offering date of the Class A and B Shares) are calculated using the historical expenses of the Select Shares, which are lower than the expenses of the Class A and B Shares. The graph illustrates comparative performance for $3,000,000 invested in Institutional Shares of the JPMorgan Fleming Emerging Markets Equity Fund, MSCI Emerging Markets Equity Free Index and Lipper Emerging Markets Equity Funds Average from November 15, 1993 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI Emerging Markets Equity Free Index is a replica (or model) of the world's emerging market equity markets. The Lipper Emerging Market Equity Funds Average describes the average total returns for all the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Institutional Shares have a $3,000,000 minimum initial deposit and carry no sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 20 JPMORGAN FLEMING ASIA EQUITY FUND AS OF APRIL 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming Asia Equity Fund, which seeks total return from long term capital growth, declined by 9.7% (Class A Shares, without sales charge) during the six months ended April 30, 2003. This compares with a fall of 6.4% for the MSCI All Country Far East Free ex Japan Index (in U.S. dollars). Q. WHY DID THE FUND PERFORM THIS WAY? A. In a highly volatile and unpredictable market, the Fund underperformed its MSCI All Country Far East Free ex Japan Index benchmark for reasons that were essentially short-term in nature. A combination of sentiment driven rallies, geopolitically motivated corrections, and falls in individual stock prices driven by the outbreak of the SARS (Severe Acute Respiratory Syndrome) virus rendered stock selection according to corporate fundamentals largely irrelevant during the six-month period. During October and November of 2002, the Fund suffered from being underweight in Taiwanese technology stocks, which rallied in sympathy with the U.S. NASDAQ market on hopes for an improvement in global capital expenditure. The Fund was underweight in these stocks, which seemed unduly expensive, and its relative performance suffered accordingly. With the advent of SARS in March and April, the Fund was unfortunate enough to own two of the stocks most vulnerable to efforts to minimize the spread of the disease. Chinese airlines China National Aviation and China Southern had been acquired as beneficiaries of China's burgeoning economy. Instead, their ticket revenues faltered as people shied away from travel. Finally, the Fund did not own two of the period's best performers. These were two Korean stocks: the utility KEPCO and LG Electronics. To an extent these disappointments were offset by strong performances from the portfolio's China plays. Techtronic Industries Co. is a manufacturer of low-cost drills and drill bits for which it has long-term supply contracts with leading U.S. retailers such as Wal-Mart. Another outperformer was PetroChina Co., LTD, which benefited from rising oil prices and growing demand for its petrochemical products. Q. HOW WAS THE FUND MANAGED? A. The Fund added to its holdings in companies exposed to Chinese economic growth. These stocks now represent 13% of the portfolio, compared with about 6% at the beginning of the period. (UNAUDITED) 21 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS South Korea 24.60% Hong Kong 19.80% Taiwan 19.20% China 13.60% Singapore 9.80% Malaysia 8.40% United Kingdom 1.90% Indonesia 1.60% Thailand 1.10%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. SAMSUNG ELECTRONICS, CO., LTD (SOUTH KOREA) (9.8%) 2. POSCO (SOUTH KOREA) (3.7%) 3. HUTCHISON WHAMPOA LTD (HONG KONG) (3.7%) 4. CLP HOLDINGS LTD (HONG KONG) (3.2%) 5. KOOKMIN BANK (SOUTH KOREA) (3.0%) 6. CHINA MOBILE LTD (CHINA) (2.7%) 7. SK TELECOM CO., LTD (SOUTH KOREA) (2.5%) 8. TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD (TAIWAN) (2.2%) 9. PETROCHINA CO., LTD, CLASS H (CHINA) (2.0%) 10. SUN HUNG KAI PROPERTIES LTD (HONG KONG) (2.0%) TOP 10 EQUITY HOLDINGS COMPRISED 34.8% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($7,846,981). AS OF APRIL 30, 2003, THE FUND HELD 72 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR (11/1/01) - --------------------------------------------------------------------- Class A Shares Without Sales Charge (25.32%) (12.16%) With Sales Charge* (29.61%) (15.59%) - --------------------------------------------------------------------- Class B Shares Without CDSC (25.68%) (12.59%) With CDSC** (29.40%) (14.95%) - --------------------------------------------------------------------- Institutional Shares (25.08%) (11.97%) - --------------------------------------------------------------------- Select Shares (25.14%) (12.02%) - ---------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period and 4% CDSC for the period since inception. (UNAUDITED) 22 [CHART] LIFE OF FUND PERFORMANCE (11/1/01 TO 4/30/03)
JPMORGAN FLEMING ASIA MSCI ALL COUNTRY FAR EAST LIPPER PACIFIC REGION FUNDS EQUITY FUND (CLASS A SHARES) FREE INDEX (EX-JAPAN) INDEX (EX-JAPAN) E11/1/01 $ 9,425 $ 10,000 $ 10,000 $ 9,689 $ 10,000 $ 10,000 $ 9,921 $ 10,906 $ 10,661 $ 9,878 $ 11,354 $ 11,083 $ 10,003 $ 11,386 $ 11,208 $ 10,455 $ 12,218 $ 11,954 E4/30/02 $ 10,399 $ 12,393 $ 12,039 $ 10,543 $ 12,153 $ 11,980 $ 9,966 $ 11,500 $ 11,378 $ 9,382 $ 11,081 $ 10,869 $ 9,174 $ 10,838 $ 10,607 $ 8,319 $ 9,605 $ 9,442 $ 8,602 $ 10,119 $ 9,697 $ 8,891 $ 10,630 $ 10,329 $ 8,338 $ 9,900 $ 9,736 $ 8,451 $ 10,017 $ 9,806 $ 7,986 $ 9,578 $ 9,404 $ 7,583 $ 9,141 $ 8,966 E4/30/03 $ 7,766 $ 9,476 $ 9,435
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 11/1/01. Class A Shares and Class B Shares were introduced on 11/1/01. Returns for the Institutional and Select Shares prior to 6/28/02 (offering date of the Institutional and Select Shares) are calculated using the historical expenses of the Class A Shares, which are higher than the expenses of the Institutional and Select Shares. The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Fleming Asia Equity Fund, MSCI All Country Far East Free Index (ex-Japan) and Lipper Pacific Region Funds Index (ex-Japan) from November 1, 2001 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains 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 indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI All Country Far East Free Index (ex-Japan) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Far East, excluding Japan. The Lipper Pacific Region Funds Index (ex-Japan) represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 23 JPMORGAN FLEMING INTERNATIONAL EQUITY FUND As of April 30, 2003 Q. HOW DID THE FUND PERFORM? A. JPMorgan Fleming International Equity Fund, which seeks to provide long-term capital growth and income from a portfolio of foreign stocks, rose 0.7% (Select Shares) in the six months ended April 30, 2003. This compares with a fall of 1.8% for the MSCI EAFE Index (in U.S. dollars). Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK? A. The Fund outperformed its MSCI EAFE Index benchmark during a six months that was volatile both in terms of broad stock market moves and company news flow. Stock price falls caused by the run-up to war in Iraq created some highly attractive buying opportunities, which benefited performance in the post-war rally. There were also, however, a number of trading difficulties among portfolio holdings. When equity markets plunged amid the uncertainty preceding war, the portfolio management team took the opportunity to add to holdings in high quality stocks with low valuations including European financials. As a result, when equity markets rallied from mid-March, financials such as Banco Popular Espanol, Deutsche Bank AG and Nordea AB performed well for the portfolio. The rally also saw good performance from basic materials portfolio stocks including Holcim LTD, St Gobain and Wolseley PLC. Highly geared to economic activity, these companies benefited from the increased optimism that accompanied lower oil prices and relief that military activity had reached a conclusion. There were, however, a number of stock specific difficulties. The chief detractors from performance were BAE Systems PLC, which warned of cost overruns and delays on U.K. defense projects; Sony Corp., where there are growing doubts about future profitability; HeidelbergCement AG, where trading was damaged by a weak construction market; and Nikko Cordial Corp., which made a full year loss as a result of the Japanese stock market malaise. Q. HOW WAS THE FUND MANAGED? A. As equity prices dipped in the early months of 2003, your manager took the opportunity to buy attractive companies trading at low valuations. Broadly speaking, the Fund continues to take an active fundamental approach, focusing on proprietary research at both the local and sector levels. (UNAUDITED) 24 [CHART] PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS United Kingdom 29.50% Japan 16.20% France 13.10% Switzerland 8.20% Germany 7.60% The Netherlands 5.80% Italy 5.10% Finland 2.80% Spain 2.80% South Korea 2.40% Belgium 2.00% Sweden 1.50% Australia 1.00% Hong Kong 1.00% Ireland 1.00%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO 1. TOTAL FINA ELF SA (FRANCE) (4.2%) 2. VODAFONE GROUP PLC (UNITED KINGDOM) (4.1%) 3. ENI-ENTE NAZIONALE IDROCARBURI SPA (ITALY) (4.1%) 4. GLAXOSMITHKLINE PLC (UNITED KINGDOM) (3.2%) 5. NOKIA OYJ (FINLAND) (2.8%) 6. CANON, INC. (JAPAN) (2.2%) 7. NOVARTIS AG (SWITZERLAND) (2.2%) 8. BARCLAYS PLC (UNITED KINGDOM) (2.1%) 9. NESTLE SA (SWITZERLAND) (2.1%) 10.WOLSELEY PLC (UNITED KINGDOM) (1.9%) TOP 10 EQUITY HOLDINGS COMPRISED 28.9% OF THE PORTFOLIO'S MARKET VALUE OF INVESTMENTS ($122,982,740). AS OF APRIL 30, 2003, THE FUND HELD 87 EQUITY HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME. AVERAGE ANNUAL TOTAL RETURNS
SINCE INCEPTION 1 YEAR 3 YEARS 5 YEARS (5/31/93) - ---------------------------------------------------------------------- Class A Shares Without Sales Charge (16.52%) (14.76%) (4.44%) 2.15% With Sales Charge* (21.32%) (16.43%) (5.56%) 1.54% - ---------------------------------------------------------------------- Class B Shares Without CDSC (16.94%) (14.93%) (4.55%) 2.09% With CDSC** (21.07%) (15.65%) (4.84%) 2.09% - ---------------------------------------------------------------------- Class C Shares Without CDSC (16.97%) (14.94%) (4.56%) 2.09% With CDSC*** (17.79%) (14.94%) (4.56%) 2.09% - ---------------------------------------------------------------------- Select Shares (16.16%) (14.62%) (4.34%) 2.20% - ----------------------------------------------------------------------
* Sales Charge for Class A Shares is 5.75%. ** Assumes 5% CDSC (contingent deferred sales charge) for the one year period, 3% CDSC for the three year period, 2% CDSC for the five year period and 0% for the period since inception. *** Assumes a 1% CDSC for the one year period and 0% CDSC thereafter. (UNAUDITED) 25 [CHART] LIFE OF FUND PERFORMANCE (5/31/93 TO 4/30/03)
JPMORGAN FLEMING INTERNATIONAL EQUITY FUND (SELECT SHARES) MSCI EAFE INDEX LIPPER INTERNATIONAL FUNDS INDEX 5/31/1993 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 984,500 $ 984,400 $ 980,300 $ 1,013,641 $ 1,018,854 $ 1,011,376 $ 1,058,748 $ 1,073,872 $ 1,078,329 $ 1,046,890 $ 1,049,710 $ 1,074,339 $ 1,064,373 $ 1,082,041 $ 1,127,411 $ 998,169 $ 987,471 $ 1,082,653 $ 1,064,348 $ 1,058,766 $ 1,191,243 $ 1,125,016 $ 1,148,232 $ 1,265,457 $ 1,090,028 $ 1,145,017 $ 1,234,960 $ 1,052,640 $ 1,095,667 $ 1,178,399 4/30/1994 $ 1,060,429 $ 1,142,123 $ 1,209,626 $ 1,053,006 $ 1,135,613 $ 1,207,812 $ 1,047,004 $ 1,151,625 $ 1,188,728 $ 1,066,897 $ 1,162,680 $ 1,225,341 $ 1,089,302 $ 1,190,236 $ 1,267,738 $ 1,041,264 $ 1,152,744 $ 1,235,030 $ 1,047,199 $ 1,191,130 $ 1,257,137 $ 1,011,804 $ 1,133,837 $ 1,198,429 $ 1,019,696 $ 1,140,980 $ 1,182,490 $ 994,509 $ 1,097,166 $ 1,123,839 $ 972,232 $ 1,093,984 $ 1,123,501 $ 1,000,524 $ 1,162,249 $ 1,153,049 4/30/1995 $ 1,021,835 $ 1,205,949 $ 1,195,482 $ 1,000,275 $ 1,191,599 $ 1,207,197 $ 980,469 $ 1,170,746 $ 1,211,785 $ 1,032,140 $ 1,243,683 $ 1,278,433 $ 1,056,086 $ 1,196,299 $ 1,256,827 $ 1,075,623 $ 1,219,627 $ 1,277,816 $ 1,063,361 $ 1,186,819 $ 1,251,238 $ 1,081,119 $ 1,219,812 $ 1,264,251 $ 1,120,688 $ 1,268,971 $ 1,300,914 $ 1,159,016 $ 1,274,173 $ 1,331,616 $ 1,151,135 $ 1,278,506 $ 1,337,341 $ 1,176,114 $ 1,305,610 $ 1,358,204 4/30/1996 $ 1,224,100 $ 1,343,603 $ 1,402,481 $ 1,208,676 $ 1,318,881 $ 1,400,939 $ 1,225,597 $ 1,326,267 $ 1,413,687 $ 1,173,019 $ 1,287,540 $ 1,366,046 $ 1,166,098 $ 1,290,372 $ 1,383,805 $ 1,209,711 $ 1,324,696 $ 1,414,802 $ 1,183,339 $ 1,311,184 $ 1,409,143 $ 1,236,471 $ 1,363,369 $ 1,475,372 $ 1,237,707 $ 1,345,782 $ 1,488,503 $ 1,229,415 $ 1,298,680 $ 1,490,438 $ 1,261,256 $ 1,319,978 $ 1,517,415 $ 1,261,256 $ 1,324,730 $ 1,525,457 4/30/1997 $ 1,264,536 $ 1,331,751 $ 1,532,169 $ 1,315,117 $ 1,418,448 $ 1,618,584 $ 1,371,930 $ 1,496,604 $ 1,696,276 $ 1,427,631 $ 1,520,849 $ 1,750,726 $ 1,302,998 $ 1,407,242 $ 1,624,499 $ 1,379,094 $ 1,486,047 $ 1,728,792 $ 1,288,901 $ 1,371,770 $ 1,597,576 $ 1,277,687 $ 1,357,778 $ 1,584,157 $ 1,300,813 $ 1,369,591 $ 1,596,513 $ 1,345,822 $ 1,432,181 $ 1,635,149 $ 1,432,358 $ 1,524,127 $ 1,738,981 $ 1,512,570 $ 1,571,070 $ 1,833,407 4/30/1998 $ 1,548,720 $ 1,583,482 $ 1,861,642 $ 1,567,925 $ 1,575,723 $ 1,865,365 $ 1,542,211 $ 1,587,698 $ 1,849,137 $ 1,590,482 $ 1,603,734 $ 1,877,428 $ 1,337,595 $ 1,405,031 $ 1,607,266 $ 1,276,868 $ 1,361,897 $ 1,557,280 $ 1,350,799 $ 1,503,807 $ 1,671,741 $ 1,411,585 $ 1,580,802 $ 1,755,495 $ 1,477,083 $ 1,643,085 $ 1,798,680 $ 1,520,952 $ 1,638,156 $ 1,809,652 $ 1,451,901 $ 1,599,168 $ 1,763,144 $ 1,492,844 $ 1,665,853 $ 1,821,856 4/30/1999 $ 1,553,155 $ 1,733,320 $ 1,906,755 $ 1,478,604 $ 1,644,054 $ 1,835,824 $ 1,529,172 $ 1,708,172 $ 1,922,842 $ 1,568,319 $ 1,758,905 $ 1,965,721 $ 1,596,078 $ 1,765,413 $ 1,981,250 $ 1,616,987 $ 1,783,244 $ 1,987,590 $ 1,659,352 $ 1,850,115 $ 2,056,957 $ 1,816,160 $ 1,914,314 $ 2,207,732 $ 2,055,712 $ 2,086,220 $ 2,479,062 $ 1,981,912 $ 1,953,745 $ 2,334,037 $ 2,128,375 $ 2,006,300 $ 2,488,084 $ 2,139,656 $ 2,084,145 $ 2,494,553 E4/30/00 $ 1,993,517 $ 1,974,519 $ 2,336,398 $ 1,904,806 $ 1,926,341 $ 2,272,147 $ 1,957,378 $ 2,001,661 $ 2,377,348 $ 1,857,748 $ 1,917,791 $ 2,300,322 $ 1,874,839 $ 1,934,476 $ 2,339,197 $ 1,755,037 $ 1,840,267 $ 2,202,822 $ 1,704,492 $ 1,796,836 $ 2,127,926 $ 1,660,345 $ 1,729,455 $ 2,038,127 $ 1,714,971 $ 1,790,851 $ 2,114,150 $ 1,713,084 $ 1,789,955 $ 2,126,623 $ 1,578,093 $ 1,655,709 $ 1,977,334 $ 1,488,773 $ 1,545,273 $ 1,838,327 E4/30/01 $ 1,587,777 $ 1,652,669 $ 1,950,098 $ 1,540,143 $ 1,594,330 $ 1,902,905 $ 1,476,073 $ 1,529,122 $ 1,849,244 $ 1,442,124 $ 1,501,292 $ 1,801,163 $ 1,407,513 $ 1,463,309 $ 1,764,960 $ 1,290,689 $ 1,315,076 $ 1,572,579 $ 1,336,121 $ 1,348,742 $ 1,615,196 $ 1,391,570 $ 1,398,511 $ 1,675,443 $ 1,423,577 $ 1,406,762 $ 1,705,266 $ 1,359,943 $ 1,332,063 $ 1,636,373 $ 1,375,718 $ 1,341,387 $ 1,659,282 $ 1,451,933 $ 1,413,956 $ 1,747,058 E4/30/02 $ 1,480,391 $ 1,423,288 $ 1,759,288 $ 1,489,273 $ 1,441,364 $ 1,784,446 $ 1,450,105 $ 1,383,998 $ 1,713,960 $ 1,303,354 $ 1,247,397 $ 1,542,907 $ 1,315,345 $ 1,244,528 $ 1,544,141 $ 1,164,212 $ 1,110,866 $ 1,377,837 $ 1,232,668 $ 1,170,519 $ 1,449,347 $ 1,289,740 $ 1,223,661 $ 1,517,901 $ 1,248,727 $ 1,182,546 $ 1,469,328 $ 1,177,424 $ 1,133,234 $ 1,415,551 $ 1,145,634 $ 1,107,283 $ 1,373,650 $ 1,119,857 $ 1,085,580 $ 1,339,996 E4/30/03 $ 1,240,965 $ 1,191,967 $ 1,472,656
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. The Fund commenced operations on 1/1/97. Returns for the Select Shares prior to 1/1/97 (offering date of the Select Shares) are calculated using performance of a predecessor account and the historical expenses at the level indicated (absent reimbursements) in the Expense Summary for the Fund as disclosed in the Prospectus. The account was not registered with the SEC and was not subject to investment restrictions of registered mutual funds. If the account had been registered, performance may have been adversely affected. Returns for the Class A and B Shares prior to 2/28/02 (offering date of the Class A and B Shares) are calculated using the historical expenses of the Select Shares, which are lower than the expenses of the Class A and B Shares. Returns for Class C Shares prior to 1/31/03 (offering date of the Class C Shares) are calculated using the historical expenses of the Class B Shares, which are similar to the expenses of the Class C Shares. The graph illustrates comparative performance for $1,000,000 invested in Select Shares of the JPMorgan Fleming International Equity Fund, MSCI EAFE Index, and Lipper International Funds Index from May 31, 1993 to April 30, 2003. The performance of the Fund assumes reinvestment of all dividends and capital gains and does not include a sales charge. The performance of the indices does not include a sales charge and has been adjusted to reflect reinvestment of all dividends and capital gains of the securities included in the benchmark. The MSCI EAFE (Europe, Australasia, Far East) Index is a replica (or model) of the world's equity markets, excluding the U.S. and Canada. The Lipper International Funds Index represents the total returns of the funds in the indicated category, as defined by Lipper, Inc. Investors cannot invest directly in an index. Select Shares have a $1,000,000 minimum initial deposit and carry no sales charge. Certain fees and expenses of the Fund are currently being waived and reimbursed as described in the prospectus. Had the expenses not been subsidized or waived, returns would have been lower. Also, all 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. (UNAUDITED) 26 JPMORGAN FLEMING EUROPEAN FUND Portfolio of Investments As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 100.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 98.2% Austria -- 4.0% 6,744 OMV AG $ 809,828 142,376 Telekom Austria AG * 1,458,621 ---------- 2,268,449 Belgium -- 2.0% 8,520 Colruyt SA 556,710 27,864 Delhaize Group 588,650 ---------- 1,145,360 Croatia -- 0.6% 25,133 Pliva D.D., GDR 345,579 Denmark -- 2.8% 55 Dampskibsselskabet Svendborg, Class B 721,742 34,355 William Demant Holding * 857,242 ---------- 1,578,984 Finland -- 4.7% 319,300 Fortum OYJ 2,291,253 26,807 Upm-Kymmene OYJ 391,906 ---------- 2,683,159 France -- 13.3% 25,405 Autoroutes du Sud de la France * 694,621 517 Bricorama SA 18,457 14,406 Cap Gemini SA 448,228 18,585 Clarins 1,032,891 2,918 Etam Developpement SA * 47,056 104,303 France Telecom 2,409,517 2,785 Groupe Steria SCA 47,460 25,481 JC Decaux SA * 245,977 8,686 LVMH Moet Hennessy Louis Vuitton SA 379,018 23,119 Vinci SA 1,505,473 106,724 Wanadoo * 728,914 ---------- 7,557,612 Germany -- 15.6% 18,175 Altana AG 896,519 141,380 Deutsche Telekom AG 1,890,200 32,641 Fresenius Medical Care AG 1,635,583 22,727 Metro AG 623,936 48,233 Schwarz Pharma AG 2,066,990 17,346 Singulus Technologies AG * 300,050 12,929 Stada Arzneimittel AG 675,986 92,515 T-Online International AG * 726,855 ---------- 8,816,119 Greece -- 2.1% 57,560 Hellenic Technodomiki Tev SA 359,726 76,720 Hellenic Telecommunications Organization SA 821,945 ---------- 1,181,671 Ireland -- 2.0% 74,210 CRH PLC 1,138,750
See notes to financial statements. 27
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Italy -- 12.2% 269,694 Banca Nazionale del Lavoro SPA * $ 437,020 26,535 e.Biscom * 764,607 37,143 ENI-Ente Nazionale Idrocarburi SPA 529,335 89,030 Italcementi SPA 929,984 6,586 Permasteelisa SPA 119,804 220,929 Saeco International Group SPA * 845,687 2,259,940 Seat-Pagine Gialle SPA * 1,533,428 211,995 Telecom Italia SPA 1,043,343 9,108 TIM SPA 39,540 135,570 Tiscali SPA * 653,597 ---------- 6,896,345 Norway -- 3.8% 9,646 Norsk Hydro ASA 408,016 50,849 Statoil ASA 403,287 328,958 Telenor ASA 1,316,246 ---------- 2,127,549 Portugal -- 4.4% 530,453 Banco Comercial Portugues SA, Class R 751,819 437,552 Electricidade de Portugal SA 791,057 48,396 Jeronimo Martins SA * 382,929 75,714 Portugal Telecom SGPS SA 541,623 ---------- 2,467,428 Spain -- 4.4% 40,613 ACESA Infraestructuras SA 528,024 7,444 ACS Actividades Cons y Serv 280,377 29,761 Endesa SA 422,139 31,499 Gamesa Corporacion Tecnologica SA * 645,757 10,223 Grupo Ferrovial SA 271,302 26,752 Telefonica Publicidad e Informacion SA 114,644 30,145 Viscofan SA 213,625 ---------- 2,475,868 Sweden -- 4.5% 112,384 Saab AB, Class B 1,408,286 318,447 TeliaSonera AB * 1,155,004 ---------- 2,563,290 Switzerland -- 0.1% 600 Siegfried Holding AG * 73,214 The Netherlands -- 4.9% 126,870 Buhrmann NV 423,344 42,583 Koninklijke KPN NV * 283,234 575,136 Laurus NV * 795,894 18,839 Royal Dutch Petroleum Co. 770,539 5,933 Sligro Food Group NV 274,118 261,210 VersaTel Telecom International NV * 241,953 ---------- 2,789,082 United Kingdom -- 16.8% 38,266 Abbey National PLC 271,852 45,585 AWG PLC * 390,148 680,305 BT Group PLC 1,948,994 165,609 DS Smith PLC 423,499
See notes to financial statements. 28
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- United Kingdom -- Continued 44,268 Enterprise Inns PLC $ 433,709 52,780 ICAP PLC 820,352 46,009 Johnston Press PLC 276,122 131,036 Kingfisher PLC 512,056 112,367 Scottish Power PLC 698,163 48,620 Severn Trent PLC 555,608 130,225 Shell Transport & Trading Co., PLC 779,980 427,035 Stagecoach Group PLC 300,306 152,180 Tate & Lyle PLC 722,373 4,800 TI Automotive LTD, Class A (d) (f) * 0 57,539 United Utilities PLC 552,694 19,758 Victrex PLC 84,156 178,649 Wimpey George PLC 713,819 ------------ 9,483,831 ------------------------------------------------------------------- Total Common Stocks 55,592,290 (Cost $51,226,599) ------------------------------------------------------------------- PREFERRED STOCK -- 1.4% Germany -- 1.4% 12,620 Henkel KGaA 812,640 (Cost $786,501) WARRANT -- 0.0% ^ Italy -- 0.0% ^ 4,227 La Fondiaria Assicurazioni SPA, expires 6/30/08 10,850 (Cost $0) PRINCIPAL AMOUNT (EUR) FOREIGN GOVERNMENT SECURITY -- 0.4% Germany -- 0.4% $ 214,000 Federal Republic of Germany, Ser. 139, 4.00%, 2/16/07 247,505 (Cost $231,249) - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 56,663,285 (Cost $52,244,349) ================================================================================
See notes to financial statements. 29 SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - --------------------------------------------------------------------------- Telecommunications 20.9% Oil & Gas 9.9 Construction 9.5 Pharmaceuticals 7.0 Food/Beverage Products 7.0 Utilities 6.0 Telecommunications Equipment 4.8 Health Care/Health Care Services 4.4 Consumer Products 3.9 Multi-Media 3.2 Banking 2.6 Internet Services/Software 2.6 Aerospace 2.5 Retailing 2.1 Manufacturing 1.9 Appliances & Household Durables 1.5 Financial Services 1.4 Paper/Forest Products 1.4 Transportation 1.3 Engineering Services 1.1 Other (below 1.0%) 5.0 - --------------------------------------------------------------------------- Total 100.0% - ---------------------------------------------------------------------------
See notes to financial statements. 30 Forward Foreign Currency Exchange Contracts
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO BUY DATE (USD) (USD) (USD) - ------------------------------------------------------------------------------- 42,547 CHF 5/2/03 $ 30,966 $ 31,370 $ 404 964,547 EUR 5/2/03 1,058,011 1,076,431 18,420 468,068 SEK 5/5/03 57,143 57,212 69 ----------- ----------- -------- $ 1,146,120 $ 1,165,013 $ 18,893 =========== =========== ========
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO SELL DATE (USD) (USD) (USD) - ------------------------------------------------------------------------------- 6,737,307 NOK 5/5/03 $ 955,660 $ 962,460 $ (6,800)
See notes to financial statements. 31 JPMORGAN FLEMING JAPAN FUND Portfolio of Investments As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 100.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 100.0% Automotive -- 13.1% 3,000 Bridgestone Corp. $ 34,035 1,600 Denso Corp. 22,807 7,000 Harada Industry Co., LTD 24,946 1,000 Honda Motor Co., LTD 33,121 2,000 Keihin Corp. 19,822 9,000 Mazda Motor Corp. 15,848 4,000 Nissan Motor Co., LTD 30,689 -------- 181,268 Business Services -- 5.9% 13 Backs Group, Inc. 19,621 600 Drake Beam Morin Japan, Inc. * 20,325 20 E-System Corp. * 13,500 8 Goodwill Group, Inc. 29,046 -------- 82,492 Chemicals -- 5.0% 3,000 Chugoku Marine Paints LTD 8,704 1,600 Shin-Etsu Chemical Co., LTD 47,895 5,000 Sumitomo Chemical Co., LTD 13,542 -------- 70,141 Computer Networks -- 2.2% 200 Obic Co., LTD 30,522 Computer Software -- 2.4% 1,000 CSK Corp. 17,650 1,500 Fuji Soft Abc, Inc. 15,848 -------- 33,498 Construction Materials -- 4.0% 2,000 Daikin Industries LTD 33,272 1,000 Rinnai Corp. 21,801 -------- 55,073 Consumer Services -- 1.3% 3,000 Nishio Rent All Co., LTD 18,112 Distribution -- 6.6% 4,000 Canon Sales Co., Inc. 29,952 700 Misumi Corp. 19,369 4,000 Mitsubishi Corp. 23,780 900 Tomen Electronics Corp. 19,319 -------- 92,420 Electronics/Electrical Equipment -- 15.6% 400 Advantest Corp. 13,416 1,000 Fanuc LTD 40,919 200 Keyence Corp. 32,148 500 Mabuchi Motor Co., LTD 37,355 3,000 Phoenix Electric Co., LTD 23,268 600 SMC Corp. 45,179 3,000 Taiyo Yuden Co., LTD 22,866 -------- 215,151 Engineering Services -- 1.5% 3,000 JGC Corp. 21,130
See notes to financial statements. 32
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments-- Continued - -------------------------------------------------------------------------------- Food/Beverage Products -- 1.8% 1,000 Toyo Suisan Kaisha LTD $ 10,683 1,000 Yakult Honsha Co., LTD 14,673 ----------- 25,356 Machinery & Engineering Equipment -- 4.1% 5,000 Komatsu LTD 19,076 6,000 Nippon Thompson Co., LTD 20,828 8,000 Trinity Industrial Corp. 17,508 ----------- 57,412 Manufacturing -- 8.0% 8,000 Nakakita Seisakusho Co., LTD 18,447 5,000 Namura Shipbuilding Co., LTD 10,733 700 Noritsu Koki Co., LTD 21,130 10,000 NSK LTD 26,664 1,000 TDK Corp. 34,715 ----------- 111,689 Office/Business Equipment -- 8.0% 2,000 Canon, Inc. 80,832 2,000 Ricoh Co., LTD 30,672 ----------- 111,504 Photographic Equipment -- 3.7% 2,000 Fuji Photo Film Co., LTD 50,981 Retailing -- 6.1% 3 Geo Co., LTD 12,376 3 Geo Co., LTD (W/I) * 12,326 400 Ryohin Keikaku Co., LTD 7,379 600 Sugi Pharmacy Co., LTD 27,621 1,300 Yamada Denki Co., LTD 25,071 ----------- 84,773 Semi-Conductors -- 1.3% 1,000 Shinko Electric Industries 17,609 Steel -- 1.2% 10,000 Topy Industries LTD 17,273 Telecommunications -- 5.3% 6 KDDI Corp. 18,212 27 NTT Docomo, Inc. 55,694 ----------- 73,906 Tire & Rubber -- 0.0% ^ 200 Yokohama Rubber Co., LTD 470 Tools/Equipment -- 2.9% 2,200 THK Co., LTD 20,292 5,000 Toyoda Machine Works LTD 19,998 ----------- 40,290 - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 1,391,070 (Cost $1,387,424) - --------------------------------------------------------------------------------
See notes to financial statements. 33 JPMORGAN FLEMING INTERNATIONAL GROWTH FUND Portfolio of Investments As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 100.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 100.0% Belgium -- 2.0% 5,560 Dexia $ 63,825 Brazil -- 1.1% 1,870 Uniao de Bancos Brasileiros SA, ADR 33,941 Finland -- 3.7% 7,070 Nokia OYJ 119,802 France -- 17.1% 2,530 Aventis SA 128,698 1,910 BNP Paribas 89,794 2,380 Compagnie de Saint-Gobain 82,521 3,920 Dassault Systemes SA 113,439 1,040 Total Fina Elf SA 136,589 --------- 551,041 Germany -- 7.4% 1,250 Altana AG 61,644 1,520 Bayerische Motoren Werke AG 50,748 730 Deutsche Bank AG 37,811 1,970 Schering AG 87,969 --------- 238,172 Hong Kong -- 2.7% 5,000 Cheung Kong Holdings LTD 27,632 54,000 Li & Fung LTD 60,584 --------- 88,216 Italy -- 1.9% 4,180 ENI-Ente Nazionale Idrocarburi SPA 59,664 Japan -- 13.8% 3,000 Canon, Inc. 121,227 3,500 Chugai Pharmaceutical Co., LTD 36,678 3,000 Fuji Photo Film Co., LTD 76,459 1,400 Honda Motor Co., LTD 46,362 14,000 Nikko Cordial Corp. 37,559 800 Nintendo Co., LTD 62,508 1,210 Takefuji Corp. 62,995 --------- 443,788 South Korea -- 5.8% 2,050 Kookmin Bank, ADR 56,478 670 Samsung Electronics Co., LTD, GDR 84,095 3,100 SK Telecom Co., LTD, ADR * 47,120 --------- 187,693 Spain -- 1.9% 2,350 Altadis SA 60,678 Sweden -- 2.6% 15,770 Nordea AB 83,768 Switzerland -- 2.5% 390 Nestle SA 79,542
See notes to financial statements. 34
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Taiwan -- 1.4% 7,072 Hon Hai Precision Industry Co., GDR $ 44,225 The Netherlands -- 4.4% 4,750 Koninklijke Philips Electronics NV 88,506 4,170 Wolters Kluwer NV 54,394 ----------- 142,900 United Kingdom -- 31.7% 11,200 Aviva PLC 78,814 30,000 BAE Systems PLC 60,933 13,820 Barclays PLC 95,537 23,990 BG Group PLC 96,014 14,810 Compass Group PLC 68,215 7,300 GlaxoSmithKline PLC 146,403 17,820 LogicaCMG PLC 31,492 1,500 Reckitt Benckiser PLC 26,472 2,100 Rio Tinto PLC 40,168 4,580 Royal Bank of Scotland Group PLC 120,200 25,900 Tesco PLC 82,015 80,900 Vodafone Group PLC 159,788 1,910 Wolseley PLC 18,481 ----------- 1,024,532 - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 3,221,787 (Cost $3,907,594) - --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - --------------------------------------------------------------------------- Banking 18.0% Pharmaceuticals 14.3 Telecommunications 10.1 Oil & Gas 9.1 Food/Beverage Products 7.1 Consumer Products 4.6 Office/Business Equipment 3.8 Computer Software 3.5 Financial Services 3.1 Automotive 3.0 Electronics/Electrical Equipment 2.7 Semi-Conductors 2.6 Construction Materials 2.6 Insurance 2.5 Photographic Equipment 2.4 Computers/Computer Hardware 2.4 Toys & Games 1.9 Aerospace 1.9 Multi-Media 1.7 Metals/Mining 1.3 Other (below 1%) 1.4 - --------------------------------------------------------------------------- Total 100.0% - ---------------------------------------------------------------------------
See notes to financial statements. 35 JPMORGAN FLEMING INTERNATIONAL VALUE FUND Portfolio of Investments As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 99.3% - -------------------------------------------------------------------------------- COMMON STOCKS -- 99.3% Australia -- 5.0% 85,263 Australia & New Zealand Banking Group LTD $ 994,723 322,259 WMC Resources LTD * 806,358 ----------- 1,801,081 Belgium -- 0.9% 29,470 Dexia 337,764 Brazil -- 1.3% 42,500 Cia Energetica de Minas Gerais, ADR 450,500 Denmark -- 1.0% 9,566 ISS A/S 358,043 France -- 7.2% 27,360 BNP Paribas 1,284,245 10,423 Michelin (C.G.D.E.), Class B 385,602 6,982 Total Fina Elf SA 915,547 ----------- 2,585,394 Germany -- 9.4% 15,576 BASF AG 694,789 27,733 Bayerische Motoren Werke AG 924,474 24,996 E.ON AG 1,196,436 12,385 Schering AG 552,173 ----------- 3,367,872 Hong Kong -- 1.1% 219,000 Wharf Holdings LTD 383,297 India -- 1.4% 44,457 Reliance Industries LTD, GDR, # 516,261 Italy -- 3.0% 34,817 ENI-Ente Nazionale Idrocarburi SPA 496,187 134,435 UniCredito Italiano SPA 588,114 ----------- 1,084,301 Japan -- 13.6% 20,500 Chugai Pharmaceutical Co., LTD 214,867 102,000 Daiwa Securities Group, Inc. 401,124 217,000 Hitachi LTD 724,182 51,100 JFE Holdings, Inc. 615,719 262,000 Kubota Corp. 604,142 601,000 Marubeni Corp. 569,453 105,300 Nissan Motor Co., LTD 807,895 99,000 Sompo Japan Insurance, Inc. 452,415 13,200 Takeda Chemical Industries LTD 483,683 ----------- 4,873,480 Russia -- 2.2% 11,340 LUKOIL, ADR 780,646
See notes to financial statements. 36
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Singapore -- 3.6% 162,000 DBS Group Holdings LTD $ 793,760 618,000 Singapore Telecommunications LTD 504,674 ----------- 1,298,434 South Korea -- 1.2% 3,367 Samsung Electronics Co., LTD, GDR, # 422,607 Spain -- 6.4% 79,913 Iberdrola SA 1,286,905 91,479 Telefonica SA * 1,011,715 ----------- 2,298,620 Switzerland -- 8.6% 24,502 Credit Suisse Group 585,317 3,215 Holcim LTD, Class B 603,272 12,484 Swiss Reinsurance Co. 815,515 22,877 UBS AG 1,085,405 ----------- 3,089,509 The Netherlands -- 11.8% 68,657 ING Groep NV 1,114,835 42,261 Koninklijke Philips Electronics NV 786,210 28,626 Royal Dutch Petroleum Co. 1,170,839 34,805 TPG NV 543,015 21,412 VNU NV 621,289 ----------- 4,236,188 United Kingdom -- 21.6% 159,700 Barclays PLC 1,103,285 322,240 BT Group PLC 923,180 26,780 GlaxoSmithKline PLC 536,730 44,662 Imperial Tobacco Group PLC 747,365 615,871 Legal & General Group PLC 762,850 32,201 Royal Bank of Scotland Group PLC 844,551 144,278 Scottish Power PLC 896,434 241,657 Tesco PLC 764,737 170,600 TI Automotive LTD, Class A (d) (f) * 0 124,050 Unilever PLC 1,219,326 ----------- 7,798,458 - -------------------------------------------------------------------------------- Total Common Stocks 35,682,455 (Cost $32,295,156) - -------------------------------------------------------------------------------- Short-Term Investments - 0.7% - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT U.S. TREASURY SECURITY -- 0.7% $ 250,000 U.S. Treasury Bill, 1.10%, 8/28/03 @ 249,066 (Cost $249,091)
See notes to financial statements. 37
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Short-Term Investments -- Continued - -------------------------------------------------------------------------------- MONEY MARKET FUND -- 0.0%^ 8,720 JPMorgan Prime Money Market Fund (a) $ 8,720 (Cost $8,720) - -------------------------------------------------------------------------------- Total Short-Term Investments 257,786 (Cost $257,811) - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 35,940,241 (Cost $32,552,967) - --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - --------------------------------------------------------------------------- Banking 21.2% Utilities 10.7 Oil & Gas 9.3 Insurance 8.7 Automotive 5.9 Food/Beverage Products 5.5 Pharmaceuticals 5.0 Telecommunications 4.2 Electronics/Electrical Equipment 4.2 Chemicals 3.4 Telecommunications Equipment 2.6 Metals/Mining 2.2 Agricultural Production/Services 2.1 Multi-Media 1.7 Steel 1.7 Machinery & Engineering Equipment 1.7 Construction Materials 1.7 Distribution 1.6 Transportation 1.5 Semi-Conductors 1.2 Financial Services 1.1 Diversified 1.1 Consumer Services 1.0 Other (below 1.0%) 0.7 - --------------------------------------------------------------------------- Total 100.0% - ---------------------------------------------------------------------------
Futures Contracts
- -------------------------------------------------------------------------------- NOTIONAL UNREALIZED NUMBER VALUE AT APPRECIATION OF EXPIRATION 4/30/03 (DEPRECIATION) CONTRACTS DESCRIPTION DATE (USD) (USD) - -------------------------------------------------------------------------------- LONG FUTURES OUTSTANDING 10 DJ Euro Stoxx June, 2003 $ 255,786 $ (3,467) 5 FTSE 100 Index June, 2003 312,700 (1,307) 2 Topix Index June, 2003 132,232 486
See notes to financial statements. 38 Forward Foreign Currency Exchange Contracts
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO BUY DATE (USD) (USD) (USD) - ----------------------------------------------------------------------------------------------------- 300,000 CHF for 26,144,400 JPY 5/23/03 $ 219,398 $ 221,329 $ 1,931 1,220,000 EUR for 157,417,776 JPY 5/23/03 1,321,013 1,360,474 39,461 36,280,440 JPY for 420,000 CHF 5/23/03 309,860 304,457 (5,403) 44,352,050 JPY for 230,000 GBP 5/23/03 367,116 372,192 5,076 171,964 AUD 5/23/03 100,684 107,351 6,667 2,470,000 CHF 5/23/03 1,822,419 1,822,269 (150) 11,860,140 DKK 5/23/03 1,704,167 1,781,280 77,113 1,440,000 EUR 5/23/03 1,577,478 1,605,806 28,328 1,848,678 GBP 5/23/03 2,914,097 2,950,776 36,679 6,929,212 HKD 5/23/03 888,190 888,337 147 1,016,626,636 JPY 5/23/03 4,761,688 4,754,999 (6,689) 1,326,085 NOK 5/23/03 186,804 189,066 2,262 6,508,227 SEK 5/23/03 759,694 794,565 34,871 -------------- -------------- -------------- $ 16,932,608 $ 17,152,901 $ 220,293 ============== ============== ==============
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO SELL DATE (USD) (USD) (USD) - ----------------------------------------------------------------------------------------------------- 3,280,968 CHF 5/23/03 $ 2,397,996 $ 2,420,570 $ (22,574) 7,649,338 EUR 5/23/03 8,219,176 8,530,108 (310,932) 711,919 GBP 5/23/03 1,117,501 1,136,334 (18,833) 3,615,591 HKD 5/23/03 463,500 463,525 (25) 214,181,850 JPY 5/23/03 1,801,656 1,797,364 4,292 1,983,354 SGD 5/23/03 1,135,649 1,117,388 18,261 -------------- -------------- -------------- $ 15,135,478 $ 15,465,289 $ (329,811) ============== ============== ==============
See notes to financial statements. 39 JPMORGAN FLEMING INTERNATIONAL OPPORTUNITIES FUND PORTFOLIO OF INVESTMENTS As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 99.3% - -------------------------------------------------------------------------------- COMMON STOCKS -- 98.3% Australia -- 3.2% 136,877 Alumina LTD $ 373,319 150,000 Commonwealth Bank of Australia 2,554,126 497,884 Foster's Group LTD 1,395,305 719,595 Southern Pacific Petroleum NL * 99,032 801,491 WMC Resources LTD * 2,005,495 ------------- 6,427,277 Belgium -- 1.2% 107,544 Interbrew SA 2,400,375 Finland -- 2.4% 287,710 Nokia OYJ 4,867,624 France -- 11.9% 120,618 BNP Paribas 5,661,666 73,518 France Telecom 1,698,349 17,210 Lafarge SA 1,156,219 41,051 Pechiney SA, A Shares 1,184,260 45,343 Sanofi-Synthelabo SA 2,704,711 21,084 Technip-Coflexip SA 1,727,078 29,030 Thales SA 776,565 35,959 Total Fina Elf SA 4,715,289 30,610 Valeo SA 876,904 158,152 Veolia Environnement 3,415,219 ------------- 23,916,260 Germany -- 3.2% 7,030 Adidas-Salomon AG 608,023 37,300 Bayerische Motoren Werke AG 1,243,389 16,600 DaimlerChrysler AG 535,388 41,291 Deutsche Telekom AG 552,046 33,320 E.ON AG 1,594,865 44,900 Schering AG 2,001,825 ------------- 6,535,536 Hong Kong -- 2.6% 244,500 CLP Holdings LTD 1,000,064 920,300 CNOOC LTD 1,209,516 70,000 Sun Hung Kai Properties LTD 328,502 1,533,000 Wharf Holdings LTD 2,683,077 ------------- 5,221,159 India -- 2.4% 75,718 Ranbaxy Laboratories LTD, GDR 1,177,415 321,660 Reliance Industries LTD, GDR, # 3,735,309 ------------- 4,912,724 Italy -- 3.1% 99,200 ENI-Ente Nazionale Idrocarburi SPA 1,413,727 1,101,717 UniCredito Italiano SPA 4,819,689 ------------- 6,233,416
See notes to financial statements. 40
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Japan -- 14.8% 45,100 Aeon Co., LTD $ 1,024,828 33,300 Aiful Corp. 1,250,914 154,100 Chugai Pharmaceutical Co., LTD 1,615,169 200,000 Daiwa Securities Group, Inc. 786,517 101,200 Fast Retailing Co., LTD 2,944,525 727,000 Fujitsu LTD 2,029,943 94,700 Honda Motor Co., LTD 3,136,551 208,600 JFE Holdings, Inc. 2,513,485 37,800 Kyocera Corp. 1,844,675 161,000 Matsushita Electric Industrial Co., LTD 1,282,492 535,000 Minebea Co., LTD 1,588,043 571,000 Mitsubishi Chemical Corp. 947,996 170,000 Mitsubishi Pharma Corp. 1,026,329 238,000 NEC Corp. 744,374 11,100 Nintendo Co., LTD 867,449 430 Nippon Telegraph & Telephone Corp. 1,507,127 204,000 Ricoh Co., LTD 3,128,593 14,400 Rohm Co., LTD 1,483,951 ------------- 29,722,961 Mexico -- 1.1% 129,640 Grupo Financiero BBVA Bancomer SA de CV, ADR * 2,254,711 Philippines -- 0.0% ^ 375,000 ABS-CBN Broadcasting Corp., PDR * 85,755 Russia -- 2.0% 59,170 LUKOIL, ADR 4,073,262 Singapore -- 1.0% 261,000 DBS Group Holdings LTD 1,278,835 905,000 Singapore Telecommunications LTD 739,046 ------------- 2,017,881 South Korea -- 1.6% 53,192 KT Corp., ADR 1,077,670 4,180 Samsung Electronics Co., LTD 1,049,300 69,040 SK Telecom Co., LTD, ADR 1,049,408 ------------- 3,176,378 Spain -- 3.3% 50,005 Acerinox SA 1,863,343 272,113 Iberdrola SA 4,382,062 29,409 Repsol YPF SA 428,306 ------------- 6,673,711 Sweden -- 2.1% 260,612 Assa Abloy AB, Class B 2,485,145 155,735 Securitas AB, B Shares 1,827,764 ------------- 4,312,909 Switzerland -- 9.2% 167,647 Credit Suisse Group 4,004,839 25,340 Lonza Group AG 1,538,560 115,160 Novartis AG 4,542,549 22,490 Roche Holding AG 1,431,016
See notes to financial statements. 41
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Switzerland -- Continued 1,097 Serono SA $ 595,290 18,702 Swiss Reinsurance Co. 1,221,704 78,172 UBS AG 3,708,891 13,660 Zurich Financial Services AG 1,440,227 ------------- 18,483,076 Taiwan -- 0.0% ^ 1,610 United Microelectronics Corp., ADR * 5,216 The Netherlands -- 5.0% 107,120 Aegon NV 1,089,060 36,941 Akzo Nobel NV 821,223 79,328 Heineken Holding NV, Class A 2,300,889 1,893 Heineken NV 70,286 61,974 ING Groep NV 1,006,318 265,835 Koninklijke KPN NV * 1,768,159 59,539 Koninklijke Philips Electronics NV 1,107,644 66,733 TPG NV 1,041,144 63,768 Wolters Kluwer NV 830,494 ------------- 10,035,217 United Kingdom -- 28.2% 153,404 Amersham PLC 1,102,695 263,569 Amvescap PLC 1,432,257 106,971 AstraZeneca PLC 4,197,254 558,989 Barclays PLC 3,861,766 222,383 BBA Group PLC 690,415 74,403 British American Tobacco PLC 713,493 132,407 British Sky Broadcasting PLC * 1,372,362 1,205,222 BT Group PLC 3,452,820 89,269 Carnival PLC 2,228,574 392,461 Centrica PLC 1,042,812 461,753 Dixons Group PLC 821,027 117,481 GlaxoSmithKline PLC 2,354,577 533,144 Hays PLC 711,506 327,382 HSBC Holdings PLC 3,586,823 70,420 Imperial Tobacco Group PLC 1,178,394 1,655,464 Legal & General Group PLC 2,050,544 70,052 Man Group PLC 1,181,193 396,104 Prudential PLC 2,424,688 193,565 Reckitt Benckiser PLC 3,413,869 48,550 Royal Bank of Scotland Group PLC 1,273,343 273,794 Scottish Power PLC 1,701,148 890,085 Tesco PLC 2,816,725 527,730 Unilever PLC 5,187,219 3,917,065 Vodafone Group PLC 7,731,709 ------------- 56,527,213 ------------------------------------------------------------------- Total Common Stocks 197,882,661 (Cost $196,941,085) -------------------------------------------------------------------
See notes to financial statements. 42
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments-- Continued - -------------------------------------------------------------------------------- PREFERRED STOCK-- 1.0% Australia-- 1.0% 342,277 News Corp., LTD $ 2,021,216 (Cost $1,428,852) - -------------------------------------------------------------------------------- Total Long-Term Investments 199,903,877 (Cost $198,369,937) - -------------------------------------------------------------------------------- Short-Term Investments-- 0.7% - -------------------------------------------------------------------------------- PRINCIPAL AMOUNT U.S. TREASURY SECURITY-- 0.4% $ 750,000 U.S. Treasury Bill, 1.10%, 8/28/03 747,199 (Cost $747,273) SHARES MONEY MARKET FUND-- 0.3% 513,065 JPMorgan Prime Money Market Fund (a) 513,065 (Cost $513,065) - -------------------------------------------------------------------------------- Total Short-Term Investments 1,260,264 (Cost $1,260,338) - -------------------------------------------------------------------------------- Total Investments-- 100.0% $ 201,164,141 (Cost $199,630,275) - --------------------------------------------------------------------------------
See notes to financial statements. 43 SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - -------------------------------------------------------------------------------- Banking 15.3% Pharmaceuticals 10.8 Telecommunications 10.4 Food/Beverage Products 7.0 Oil & Gas 5.9 Utilities 4.8 Insurance 4.6 Electronics/Electrical Equipment 4.5 Chemicals 3.5 Financial Services 3.4 Automotive 2.9 Retailing 2.4 Steel 2.2 Consumer Products 2.1 Metals/Mining 1.8 Telecommunications Equipment 1.7 Environmental Services 1.7 Manufacturing 1.6 Office/Business Equipment 1.6 Multi-Media 1.5 Diversified 1.3 Entertainment/Leisure 1.1 Computers/Computer Hardware 1.0 Other (below 1.0%) 6.9 - -------------------------------------------------------------------------------- Total 100.0% - --------------------------------------------------------------------------------
See notes to financial statements. 44 Forward Foreign Currency Exchange Contracts - --------------------------------------------------------------------------------
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO BUY DATE (USD) (USD) (USD) - -------------------------------------------------------------------------------- 2,680,000 AUD for 199,649,280 JPY 5/20/03 $ 1,675,218 $ 1,673,516 $ (1,702) 2,460,000 CHF for 214,389,000 JPY 5/20/03 1,798,897 1,814,730 15,833 6,321,730 EUR for 10,186,204 CAD 5/20/03 7,092,732 7,050,406 (42,326) 9,330,000 EUR for 1,212,313,590 JPY 5/20/03 10,172,288 10,405,424 233,136 2,430,000 GBP for 5,699,930 CAD 5/20/03 3,968,904 3,879,388 (89,516) 190,316,625 JPY for 1,510,000 EUR 5/20/03 1,684,051 1,596,910 (87,141) 15,888,403 CAD 5/20/03 10,521,146 11,063,216 542,070 3,461,735 EUR 5/20/03 3,781,749 3,860,753 79,004 5,832,458 GBP 5/20/03 9,197,251 9,311,263 114,012 915,000 HKD 5/2/03 117,320 117,322 2 3,238,994,341 JPY 5/20/03 27,295,929 27,177,773 (118,156) ------------ ------------ ------------- $ 77,305,485 $ 77,950,701 $ 645,216 ============ ============ =============
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO SELL DATE (USD) (USD) (USD) - -------------------------------------------------------------------------------- 6,353,306 CHF 5/20/03 $ 4,699,121 $ 4,686,802 $ 12,319 16,933,823 EUR 5/20/03 18,258,901 18,885,703 (626,802) 8,898,000 GBP 5/20/03 14,085,207 14,205,264 (120,057) 26,600,364 HKD 5/20/03 3,409,729 3,410,286 (557) 1,104,188,120 JPY 5/20/03 9,324,258 9,265,028 59,230 ------------ ------------ ------------- $ 49,777,216 $ 50,453,083 $ (675,867) ============ ============ =============
See notes to financial statements. 45 JPMORGAN FLEMING EMERGING MARKETS EQUITY FUND PORTFOLIO OF INVESTMENTS As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 98.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 96.0% Argentina -- 0.7% 16,563 Tenaris SA, ADR * $ 389,231 Brazil -- 8.6% 11,411 Brasil Telecom Participacoes SA, ADR 403,949 36,300 Cia de Bebidas das Americas, ADR 722,007 24,664 Cia Vale do Rio Doce, ADR 651,130 19,601 Empresa Brasileira de Aeronautica SA, ADR 271,866 109,321 Petroleo Brasileiro SA, ADR 1,893,281 78,108 Tele Norte Leste Participacoes SA, ADR 847,472 18,958 Uniao de Bancos Brasileiros SA, ADR 344,088 ------------- 5,133,793 Chile -- 1.9% 15,039 Antofagasta PLC 151,308 20,135 Banco Santander Chile SA, ADR * 439,346 46,859 Cia de Telecomunicaciones de Chile SA, ADR * 537,473 ------------- 1,128,127 China -- 4.0% 1,731,014 Chaoda Modern Agriculture 153,147 676,000 China Mobile LTD 1,356,499 2,054,669 China Petroleum & Chemical Corp., Class H 405,715 496,000 Huaneng Power International, Inc., Class H 470,621 ------------- 2,385,982 Czech Republic -- 0.8% 37,982 CEZ AS 141,673 5,202 Komercni Banka AS 362,418 ------------- 504,091 Egypt -- 0.2% 21,063 Orascom Construction Industries 146,288 Hong Kong -- 2.2% 641,950 CNOOC LTD 843,691 516,265 Cosco Pacific LTD 443,512 ------------- 1,287,203 India -- 2.3% 19,743 ITC LTD 284,438 2,250 ITC LTD, GDR 32,625 42,615 Reliance Industries LTD, GDR, # 494,870 39,714 Satyam Computer Services LTD * 127,879 28,447 State Bank of India LTD, GDR 421,016 ------------- 1,360,828 Indonesia -- 2.2% 38,500 Telekomunikasi Indonesia TBK PT, ADR 356,510 384,050 Unilever Indonesia TBK PT 929,849 ------------- 1,286,359 Israel -- 2.7% 15,100 Check Point Software Technologies LTD * 237,523 29,900 Teva Pharmaceutical Industries LTD, ADR 1,396,330 ------------- 1,633,853
See notes to financial statements. 46
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Malaysia -- 3.6% 36,132 British American Tobacco BHD $ 361,320 83,000 Genting BHD 262,105 301,000 Hong Leong Bank BHD 324,763 401,000 IOI Corp., BHD 532,908 232,000 Malakoff BHD 262,526 35,000 Nestle BHD 184,211 357,264 Public Bank BHD 225,640 ------------- 2,153,473 Mexico -- 6.1% 45,748 America Movil SA de CV, Ser. L, ADR 767,194 15,047 Fomento Economico Mexicano SA de CV, ADR 571,184 609,848 Grupo Financiero BBVA Bancomer, Class B * 530,328 33,296 Telefonos de Mexico SA de CV, Class L, ADR 1,005,872 297,387 Wal-Mart de Mexico SA de CV, Ser. C 757,048 ------------- 3,631,626 Philippines -- 0.5% 1,680,407 Ayala Corp. 128,092 1,543,606 SM Prime Holdings, Inc. 144,139 ------------- 272,231 Poland -- 1.3% 7,158 Bank Pekao SA, GDR, # * 160,774 82,783 KGHM Polska Miedz SA * 251,180 111,405 Telekomunikacja Polska SA * 376,072 ------------- 788,026 Russia -- 7.4% 17,460 LUKOIL, ADR 1,201,946 9,260 Mobile Telesystems, ADR * 444,480 71,200 OAO Gazprom, ADR, Regulation S 1,121,400 8,458 Vimpel-Communications, ADR * 337,136 7,388 YUKOS, ADR 1,296,594 ------------- 4,401,556 South Africa -- 15.5% 18,901 Anglo American Platinum Corp., LTD 529,913 198,666 Anglo American PLC 2,877,753 19,263 Anglogold LTD 549,328 1,169,368 FirstRand LTD 1,141,035 34,758 Harmony Gold Mining Co., LTD 367,820 19,194 Impala Platinum Holdings LTD 949,636 181,128 Nampak LTD 282,036 101,648 Sappi LTD 1,255,879 308,005 Standard Bank Group LTD 1,236,033 ------------- 9,189,433 South Korea -- 25.5% 93,576 Kookmin Bank 2,626,290 22,679 POSCO 1,913,249 20,790 Samsung Electronics Co., LTD 5,218,889 15,511 Samsung Fire & Marine Insurance Co., LTD 765,975 9,270 Samsung SDI Co., LTD 579,852 36,573 Shinhan Financial Group Co., LTD, GDR, # 722,430 6,730 Shinsegae Co., LTD 803,169 163,625 SK Telecom Co., LTD, ADR 2,487,100 ------------- 15,116,954
See notes to financial statements. 47
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Taiwan -- 7.5% 903,000 Chinatrust Financial Holding Co. * $ 704,578 831,250 Far Eastern Textile Co., LTD 243,223 183,000 Formosa Plastics Corp. 225,732 238,350 Hon Hai Precision Industry Co., LTD 745,271 519,000 Lite-On Technology Corp. 461,532 294,000 Nan YA Plastic Corp. 254,699 661,899 Sinopac Holdings Co. * 206,013 244,675 Synnex Technology International Corp. 287,770 643,658 Taishin Financial Holdings Co., LTD * 291,733 776,408 Taiwan Semiconductor Manufacturing Co., LTD * 1,064,610 ------------- 4,485,161 Thailand -- 1.1% 69,697 BEC World PLC 328,407 136 Dhana Siam Finance PCL (d) (f) * 0 304,768 PTT PCL 334,129 ------------- 662,536 Turkey -- 1.3% 112,622,000 Akbank TAS 399,139 64,194,000 Turkcell Iletisim Hizmet AS * 385,328 ------------- 784,467 Venezuela -- 0.6% 32,455 Cia Anonima Nacional Telefonos de Venezuela 337,857 (CANTV), ADR ------------------------------------------------------------------- Total Common Stocks 57,079,075 (Cost $61,892,363) ------------------------------------------------------------------- PREFERRED STOCKS -- 2.0% Brazil -- 2.0% 88,000 Aracruz Celulose SA, Class B 187,591 12,426,284 Banco Itau Holding Financeira SA 831,290 13,231,112 Cia Energetica de Minas Gerais 141,713 ------------------------------------------------------------------- Total Preferred Stocks 1,160,594 (Cost $877,754) - -------------------------------------------------------------------------------- Total Long-Term Investments 58,239,669 (Cost $62,770,117) - -------------------------------------------------------------------------------- Short-Term Investments -- 2.0% - -------------------------------------------------------------------------------- PARTICIPATORY NOTES -- 2.0% India -- 2.0% 62,604 Housing Development Finance Corp., expires 1/30/04 451,375 8,064 Infosys Technologies LTD, expires 5/13/03 475,695 18,045 Ranbaxy Laboratories LTD, expires 10/3/03 257,502 - -------------------------------------------------------------------------------- Total Short-Term Investments 1,184,572 (Cost $1,308,564) - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 59,424,241 (Cost $64,078,681) - --------------------------------------------------------------------------------
See notes to financial statements. 48 SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - -------------------------------------------------------------------------------- Telecommunications 16.2% Banking 14.1 Oil & Gas 12.6 Electronics/Electrical Equipment 11.0 Metals/Mining 10.7 Financial Services 5.1 Steel 3.2 Consumer Products 2.7 Retailing 2.6 Computers/Computer Hardware 2.5 Food/Beverage Products 2.5 Paper/Forest Products 2.4 Pharmaceuticals 2.4 Semi-Conductors 1.8 Chemicals 1.6 Insurance 1.3 Agricultural Production/Services 1.2 Computer Software 1.0 Other (below 1%) 5.1 - -------------------------------------------------------------------------------- Total 100.0% - --------------------------------------------------------------------------------
See notes to financial statements. 49 JPMORGAN FLEMING ASIA EQUITY FUND PORTFOLIO OF INVESTMENTS As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 100.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 100.0% China -- 13.6% 300,000 China Mobile LTD $ 601,996 1,250,000 China Petroleum & Chemical Corp., Class H 246,825 2,000,000 China Telecom Corp., LTD, Class H * 382,098 362,000 Denway Motors LTD 119,521 350,000 Huaneng Power International, Inc., Class H 332,092 800,000 Jiangxi Copper Co., LTD, Class H 98,474 800,000 Legend Group LTD 225,669 700,000 People's Food Holdings LTD 346,925 2,000,000 PetroChina Co., LTD, Class H 456,466 206,000 Techtronic Industries Co. 258,852 ------------- 3,068,918 Hong Kong -- 19.8% 1,000,000 Brilliance China Automotive Holdings LTD 233,362 187,000 Cathay Pacific Airways LTD 225,386 70,000 Cheung Kong Holdings LTD 386,842 300,000 China Merchants Holdings International Co., LTD 236,567 175,000 CLP Holdings LTD 715,793 250,000 Cosco Pacific LTD 214,770 216,500 Esprit Holdings LTD 424,725 264,700 Hong Kong & China Gas Co., LTD 312,248 69,000 Hong Kong Electric Holdings LTD 276,918 150,000 Hutchison Whampoa LTD 834,717 154,000 Li & Fung LTD 172,778 96,000 Sun Hung Kai Properties LTD 450,516 ------------- 4,484,622 Indonesia -- 1.6% 350,000 Astra Interntional TBK PT * 122,067 500,000 Telekomunikasi Indonesia TBK PT 236,352 ------------- 358,419 Malaysia -- 8.4% 244,000 Arab-Malaysian Corp., BHD * 54,579 147,000 Gamuda BHD 201,158 120,000 Genting BHD 378,947 103,000 IJM Corp., BHD 119,805 91,000 IOI Corp., BHD 120,934 170,000 Malayan Banking BHD 353,421 254,250 Public Bank BHD 160,579 142,000 Resorts World BHD 312,026 80,000 Tanjong PLC 196,842 ------------- 1,898,291 Singapore -- 9.8% 100,000 Keppel Corp., LTD 251,183 600,000 Neptune Orient Lines LTD * 412,255 50,000 Oversea-Chinese Banking Corp. 266,107 250,000 SembCorp Logistics LTD 252,027 75,000 Singapore Airlines LTD 399,161 65,000 United Overseas Bank LTD 380,716 30,000 Venture Corp., LTD 250,056 ------------- 2,211,505
See notes to financial statements. 50
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- South Korea -- 24.6% 24,400 Kookmin Bank $ 684,807 16,000 Korean Air Co., LTD 152,099 12,000 KT Freetel * 266,173 2,000 Kumgang Korea Chemical Co., LTD 170,370 13,000 LG Investment & Securities Co., LTD * 121,975 10,000 POSCO 843,621 8,800 Samsung Electronics Co., LTD 2,209,054 2,500 Samsung Fire & Marine Insurance Co., LTD 123,457 1,000 Shinsegae Co., LTD 119,342 6,000 Sindo Ricoh Co., LTD 334,321 4,000 SK Telecom Co., LTD 556,379 ------------- 5,581,598 Taiwan -- 19.2% 750,000 Capital Securities Corp. 192,556 450,000 Chinatrust Financial Holding Co. * 351,119 250,000 CTCI Corp. 136,259 346,000 Formosa Plastics Corp. 426,793 380,000 Fubon Financial Holding Co., LTD 259,438 135,000 Hon Hai Precision Industry Co., LTD 422,117 180,000 Kaulin Manufacturing Co., LTD 248,365 285,000 Lite-On Technology Corp. 253,442 500,000 Mega Financial Holding Co., LTD * 222,318 150,000 Nan YA Plastic Corp. 129,948 200,000 Nien Hsing Textile Co., LTD 186,460 33,000 Nien Made Enterprises * 69,578 125,000 Quanta Computer, Inc. 218,732 57,000 Synnex Technology International Corp. 67,040 142,000 Taiwan Hon Chuan Enterprise Co., LTD 189,007 360,000 Taiwan Semiconductor Manufacturing Co., LTD * 493,632 200,000 Taiwan Styrene Monomer * 131,383 600,000 Uni-President Enterprises Co. 170,396 300,000 United Microelectronics Corp. * 172,117 ------------- 4,340,700 Thailand -- 1.1% 306,000 Kasikorn Bank PCL, Foreign Shares * 258,747 United Kingdom -- 1.9% 40,000 HSBC Holdings PLC (Hong Kong Registered Shares) 437,233 - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 22,640,033 (Cost $25,278,362) - --------------------------------------------------------------------------------
See notes to financial statements. 51 SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - -------------------------------------------------------------------------------- Electronics/Electrical Equipment 13.5% Banking 12.8 Telecommunications 6.3 Utilities 5.8 Diversified 4.8 Computers/Computer Hardware 4.3 Real Estate 3.9 Chemicals 3.8 Steel 3.7 Financial Services 3.5 Airlines 3.4 Oil & Gas 3.1 Retailing 2.9 Semi-Conductors 2.9 Transportation 2.9 Telecommunications Equipment 2.7 Entertainment/Leisure 2.3 Food/Beverage Products 2.3 Engineering Services 2.0 Hotels/Other Lodging 1.7 Automotive 1.6 Office/Business Equipment 1.5 Machinery & Engineering Equipment 1.1 Consumer Products 1.1 Consumer Services 1.0 Computer Software 1.0 Other (below 1.0%) 4.1 - -------------------------------------------------------------------------------- Total 100.0% - --------------------------------------------------------------------------------
Forward Foreign Currency Exchange Contracts - --------------------------------------------------------------------------------
NET UNREALIZED SETTLEMENT VALUE APPRECIATION SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION) CONTRACTS TO BUY DATE (USD) (USD) (USD) - -------------------------------------------------------------------------------- 46,428 SGD 5/2/03 $ 26,143 $ 26,148 $ 5 495,109 SGD 5/5/03 279,092 278,840 (252) 4,826,708 THB 5/6/03 112,747 112,589 (158) ---------- ---------- --------- $ 417,982 $ 417,577 $ (405) ========== ========== =========
See notes to financial statements. 52 JPMORGAN FLEMING INTERNATIONAL EQUITY FUND PORTFOLIO OF INVESTMENTS As of April 30, 2003 (unaudited)
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- 100.0% - -------------------------------------------------------------------------------- COMMON STOCKS -- 100.0% Australia -- 1.0% 270,339 News Corp., LTD $ 1,924,482 315,278 Woodside Petroleum LTD 2,260,170 ------------- 4,184,652 Belgium -- 2.0% 445,630 Dexia 5,122,413 212,420 Fortis 3,536,935 ------------- 8,659,348 Finland -- 2.8% 712,356 Nokia OYJ 12,052,002 France -- 13.1% 160,898 Aventis SA 8,171,850 392,374 AXA 5,959,657 134,936 BNP Paribas 6,333,737 201,692 Compagnie de Saint-Gobain 6,982,218 136,962 Dassault Systemes SA 3,957,264 34,481 Imerys SA 4,575,353 50,100 Renault SA 2,166,568 135,657 Total Fina Elf SA 17,788,651 ------------- 55,935,298 Germany -- 7.6% 274,732 Bayer AG 5,012,910 220,162 Bayerische Motoren Werke AG 7,339,062 143,773 Deutsche Bank AG 7,435,261 249,554 Deutsche Post AG 2,993,891 121,570 HeidelbergCement AG 3,749,966 38,100 Schering AG 1,698,653 84,401 Siemens AG 4,207,523 ------------- 32,437,266 Hong Kong -- 1.0% 557,000 Cheung Kong Holdings LTD 3,078,157 1,296,000 MTR Corp. 1,395,862 ------------- 4,474,019 Ireland -- 1.0% 341,500 Bank of Ireland 4,173,186 Italy -- 5.1% 1,214,409 ENI-Ente Nazionale Idrocarburi SPA 17,306,880 938,500 Telecom Italia SPA 4,618,870 ------------- 21,925,750 Japan -- 16.2% 46,440 Acom Co., LTD 1,304,494 233,000 Canon, Inc. 9,416,904 205,000 Chugai Pharmaceutical Co., LTD 2,148,667 168,000 Fuji Photo Film Co., LTD 4,282,408 29,800 Hirose Electric Co., LTD 2,131,427 159,300 Honda Motor Co., LTD 5,276,161 66,400 Hoya Corp. 3,925,205
See notes to financial statements. 53
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- Japan -- Continued 194,000 KAO Corp. $ 3,538,068 73,000 Murata Manufacturing Co., LTD 2,601,459 111,400 Namco LTD 1,560,870 885,000 Nikko Cordial Corp. 2,374,644 49,500 Nintendo Co., LTD 3,868,355 892 Nippon Telegraph & Telephone Corp. 3,126,413 462 Nippon Unipac Holding 1,483,699 1,440 NTT Docomo, Inc. 2,970,317 60 Orix Corp. 2,742 64,600 Shin-Etsu Chemical Co., LTD 1,933,775 132,500 Sony Corp. 3,221,952 479,000 Sumitomo Corp. 1,927,889 163,500 Takeda Chemical Industries LTD 5,991,070 43,800 Takefuji Corp. 2,280,714 149,700 Yamanouchi Pharmaceutical Co., LTD 3,778,274 ------------- 69,145,507 South Korea -- 2.4% 62,210 Kookmin Bank, ADR 1,713,886 99,050 POSCO, ADR 2,035,478 34,350 Samsung Electronics Co., LTD, GDR 4,293,750 138,700 SK Telecom Co., LTD, ADR 2,108,240 ------------- 10,151,354 Spain -- 2.8% 193,656 Altadis SA 4,992,359 145,743 Banco Popular Espanol 7,065,460 ------------- 12,057,819 Sweden -- 1.5% 1,180,596 Nordea AB 6,264,028 Switzerland -- 8.2% 28,050 Holcim LTD, Class B 5,263,382 43,550 Nestle SA 8,878,253 238,120 Novartis AG 9,392,774 108,630 Roche Holding AG 6,912,017 44,369 Zurich Financial Services AG 4,677,997 ------------- 35,124,423 The Netherlands -- 5.8% 352,325 ABN AMRO Holding NV 5,952,950 322,748 ING Groep NV 5,240,702 279,883 Koninklijke Philips Electronics NV 5,206,850 365,170 Reed Elsevier NV 4,156,791 336,190 Wolters Kluwer NV 4,378,432 ------------- 24,935,725 United Kingdom -- 29.5% 339,454 Abbey National PLC 2,411,573 601,190 Allied Domecq PLC 3,372,614 852,336 Aviva PLC 5,993,924 1,856,851 BAE Systems PLC 3,769,021 1,299,452 Barclays PLC 8,977,242 1,708,470 BG Group PLC 6,833,279 827,110 Brambles Industries PLC 2,458,804
See notes to financial statements. 54
SHARES ISSUER VALUE - -------------------------------------------------------------------------------- Long-Term Investments -- Continued - -------------------------------------------------------------------------------- United Kingdom -- Continued 1,336,400 Centrica PLC $ 3,550,961 673,985 Compass Group PLC 3,102,348 770,802 GKN PLC 2,537,802 678,706 GlaxoSmithKline PLC 13,602,758 407,026 Intercontinental Hotels Group PLC * 2,472,026 407,026 Mitchells & Butlers PLC * 1,379,130 577,576 National Grid Transco PLC 3,794,011 381,280 Reckitt Benckiser PLC 6,724,564 204,920 Rio Tinto PLC 3,917,087 255,310 Royal Bank of Scotland Group PLC 6,696,134 476,650 Schroders PLC 4,090,927 2,578,283 Tesco PLC 8,159,123 616,076 The British Land Co., PLC 4,017,373 222,474 Unilever PLC 2,186,765 8,793,375 Vodafone Group PLC 17,356,825 849,110 Wolseley PLC 8,210,451 ------------- 125,614,742 - -------------------------------------------------------------------------------- Total Investments -- 100.0% $ 427,135,119 (Cost $469,230,244) - --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
INDUSTRY % OF INVESTMENT SECURITIES - -------------------------------------------------------------------------------- Banking 14.5% Pharmaceuticals 12.1 Oil & Gas 10.3 Telecommunications 9.9 Food/Beverage Products 6.0 Insurance 5.1 Construction Materials 4.8 Automotive 4.1 Consumer Products 3.6 Financial Services 3.2 Electronics/Electrical Equipment 3.1 Distribution 2.4 Office/Business Equipment 2.2 Utilities 1.7 Real Estate 1.7 Chemicals 1.6 Multi-Media 1.5 Transportation 1.0 Semi-Conductors 1.0 Photographic Equipment 1.0 Diversified 1.0 Printing & Publishing 1.0 Other (below 1.0%) 7.2 - -------------------------------------------------------------------------------- Total 100.0% - --------------------------------------------------------------------------------
See notes to financial statements. 55 Abbreviations: ^ -- Amount rounds to less than 0.1%. * -- Non-income producing security. # -- All or a portion of this security is a 144A or private placement security and can only be sold to qualified institutional buyers. @ -- Security is fully or partially segregated with the custodian as collateral for futures or with brokers as initial margin for futures contracts. (a) -- Affiliated. Money market fund registered under the Investment Company Act of 1940, as amended and advised by JPMorgan Fleming Asset Management, Inc. (d) -- Defaulted Security. (f) -- Fair valued investment. The following are approximately the market value and percentage of the investments that are fair valued:
FUND MARKET VALUE PERCENTAGE ---- ------------ ---------- Fleming European Fund $ 0 0.00% Fleming International Value Fund $ 0 0.00% Fleming Emerging Markets Equity Fund $ 0 0.00%
(W/I) -- When Issued. ADR -- American Depositary Receipt. AUD -- Australian Dollar. CAD -- Canadian Dollar. CHF -- Swiss Franc. DKK -- Danish Krone. EUR -- Euro. GBP -- Great Britain Pound. GDR -- Global Depositary Receipt. HKD -- Hong Kong Dollar. JPY -- Japanese Yen. NOK -- Norwegian Krone. PDR -- Philippines Depositary Receipt. SEK -- Swedish Krona. Ser. -- Series. SGD -- Singapore Dollar. THB -- Thai Bhat. USD -- United States Dollar. See notes to financial statements. 56 JPMORGAN FUNDS STATEMENT OF ASSETS AND LIABILITIES As of April 30, 2003 (unaudited)
EUROPEAN JAPAN FUND FUND - ---------------------------------------------------------------------------------- ASSETS: Investment securities, at value $ 56,663,285 $ 1,391,070 Cash 3,143,498 13,935 Foreign currency, at value 166,254 -- Receivables: Investment securities sold 5,122,036 56,151 Fund shares sold 618,563 168,000 Interest and dividends 108,986 6,371 Foreign tax reclaim 306,609 -- Unrealized appreciation on forward foreign currency exchange contracts 18,893 -- Expense reimbursements 3,020 29,982 - ---------------------------------------------------------------------------------- Total Assets 66,151,144 1,665,509 - ---------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 8,105,697 35,830 Fund shares redeemed 420,807 24,000 Unrealized depreciation on forward foreign currency exchange contracts 6,800 -- Accrued liabilities: Investment advisory fees 2,185 -- Shareholder servicing fees 5,744 -- Distribution fees 12,529 51 Custodian fees 99,929 27,555 Trustees' fees - deferred compensation plan 8,975 967 Other 59,233 36,213 - ---------------------------------------------------------------------------------- Total Liabilities 8,721,899 124,616 - ---------------------------------------------------------------------------------- NET ASSETS: Paid in capital 68,523,254 2,933,972 Accumulated undistributed (overdistributed) net investment income 72,574 (5,398) Accumulated net realized gain (loss) on investments and foreign exchange transactions (15,592,196) (1,391,496) Net unrealized appreciation (depreciation) of investments and foreign exchange translations 4,425,613 3,815 - ---------------------------------------------------------------------------------- Total Net Assets $ 57,429,245 $ 1,540,893 - ---------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($0.001 par value; unlimited number of shares authorized): Class A 2,041,723 348,340 Class B 743,008 23,620 Class C 203,702 -- Institutional 576,290 -- Select 650,157 -- Net Asset Value: Class A (and redemption price) $ 13.76 $ 4.15 Class B* $ 13.10 $ 3.97 Class C* $ 13.08 $ -- Institutional (and redemption price) $ 13.89 $ -- Select (and redemption price) $ 13.79 $ -- Class A Maximum Public Offering Price Per Share (net asset value per share/94.25%) $ 14.60 $ 4.40 - ---------------------------------------------------------------------------------- Cost of investments $ 52,244,349 $ 1,387,424 - ---------------------------------------------------------------------------------- Cost of foreign currency $ 166,254 $ -- ==================================================================================
*Redemption price may be reduced by contingent deferred sales charge. See notes to financial statements. 57
INTERNATIONAL INTERNATIONAL GROWTH FUND VALUE FUND - ---------------------------------------------------------------------------------- ASSETS: Investment securities, at value $ 3,221,787 $ 35,940,241 Cash 69,763 -- Foreign currency, at value -- 162,555 Receivables: Investment securities sold -- 342,257 Fund shares sold -- 467,382 Interest and dividends 19,727 178,582 Foreign tax reclaim 6,385 961,328 Unrealized appreciation on forward foreign currency exchange contracts -- 255,088 Expense reimbursements 11,329 3,325 - ---------------------------------------------------------------------------------- Total Assets 3,328,991 38,310,758 - ---------------------------------------------------------------------------------- LIABILITIES: Payables: Due to custodian -- 472,100 Investment securities purchased -- 31,965 Fund shares redeemed -- 325 Unrealized depreciation on forward foreign currency exchange contracts -- 364,606 Variation margin -- 491 Accrued liabilities: Investment advisory fees -- 8,040 Shareholder servicing fees -- 1,996 Distribution fees 894 128 Custodian fees -- 28,644 Trustees' fees - deferred compensation plan 85 1,040 Other 52,976 52,367 - ---------------------------------------------------------------------------------- Total Liabilities 53,955 961,702 - ---------------------------------------------------------------------------------- NET ASSETS: Paid in capital 4,988,692 74,900,236 Accumulated undistributed (overdistributed) net investment income 9,634 191,874 Accumulated net realized gain (loss) on investments, futures and foreign exchange transactions (1,038,744) (41,207,602) Net unrealized appreciation (depreciation) of investments, futures and foreign exchange translations (684,546) 3,464,548 - ---------------------------------------------------------------------------------- Total Net Assets $ 3,275,036 $ 37,349,056 - ---------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($0.001 par value; unlimited number of shares authorized): Class A 407,012 19,943 Class B 102,357 24,288 Institutional -- 3,263,479 Select -- 2,174,167 Net Asset Value: Class A (and redemption price) $ 6.44 $ 6.77 Class B* $ 6.38 $ 6.73 Institutional (and redemption price) $ -- $ 6.82 Select (and redemption price) $ -- $ 6.80 Class A Maximum Public Offering Price Per Share (net asset value per share/94.25%) $ 6.83 $ 7.18 - ---------------------------------------------------------------------------------- Cost of investments $ 3,907,594 $ 32,552,967 - ---------------------------------------------------------------------------------- Cost of foreign currency $ -- $ 160,795 ==================================================================================
*Redemption price may be reduced by contingent deferred sales charge. See notes to financial statements. 58
INTERNATIONAL EMERGING OPPORTUNITIES MARKETS FUND EQUITY FUND - ---------------------------------------------------------------------------------- ASSETS: Investment securities, at value $ 201,164,141 $ 59,424,241 Cash 1,194,342 831,425 Foreign currency, at value 210,327 293,604 Receivables: Investment securities sold 1,588,991 640,334 Fund shares sold 2,201,645 465,216 Interest and dividends 787,742 245,949 Foreign tax reclaim 1,632,702 3,131 Unrealized appreciation on forward foreign currency exchange contracts 1,055,606 -- Expense reimbursements 4,508 2,001 - ---------------------------------------------------------------------------------- Total Assets 209,840,004 61,905,901 - ---------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 2,147,915 630,164 Fund shares redeemed 8,496,285 18,338 Unrealized depreciation on forward foreign currency exchange contracts 1,086,257 -- Accrued liabilities: Investment advisory fees 95,553 36,970 Administration fees 9,522 -- Shareholder servicing fees 5,822 1,878 Distribution fees 2,717 38 Custodian fees 48,285 44,944 Trustees' fees - deferred compensation plan 11,992 326 Other 74,593 36,073 - ---------------------------------------------------------------------------------- Total Liabilities 11,978,941 768,731 - ---------------------------------------------------------------------------------- NET ASSETS: Paid in capital 354,981,685 205,562,249 Accumulated undistributed (overdistributed) net investment income 1,410,603 (2,752,197) Accumulated net realized gain (loss) on investments, futures and foreign exchange transactions (160,280,859) (137,036,000) Net unrealized appreciation (depreciation) of investments and foreign exchange translations 1,749,634 (4,636,882) - ---------------------------------------------------------------------------------- Total Net Assets $ 197,861,063 $ 61,137,170 - ---------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($0.001 par value; unlimited number of shares authorized): Class A 1,623,534 11,496 Class B 159,427 7,188 Institutional 21,721,264 8,119,407 Select 3,262,413 3,111,007 Net Asset Value: Class A (and redemption price) $ 7.31 $ 5.39 Class B* $ 7.27 $ 5.37 Institutional (and redemption price) $ 7.40 $ 5.44 Select (and redemption price) $ 7.38 $ 5.41 Class A Maximum Public Offering Price Per Share (net asset value per share/94.25%) $ 7.76 $ 5.72 - ---------------------------------------------------------------------------------- Cost of investments $ 199,630,275 $ 64,078,681 - ---------------------------------------------------------------------------------- Cost of foreign currency $ 209,497 $ 276,674 ==================================================================================
*Redemption price may be reduced by contingent deferred sales charge. See notes to financial statements. 59
ASIA EQUITY INTERNATIONAL FUND EQUITY FUND - ---------------------------------------------------------------------------------- ASSETS: Investment securities, at value $ 22,640,033 $ 427,135,119 Cash 671,144 28,370,190 Foreign currency, at value 601,255 558,365 Receivables: Investment securities sold 376,058 451,154 Fund shares sold 1,500 9,473,640 Interest and dividends 105,365 1,841,111 Foreign tax reclaim -- 524,721 Unrealized appreciation on forward foreign currency exchange contracts 5 -- Expense reimbursements 1,385 7,363 - ---------------------------------------------------------------------------------- Total Assets 24,396,745 468,361,663 - ---------------------------------------------------------------------------------- LIABILITIES: Payables: Investment securities purchased 807,203 400,049 Fund shares redeemed -- 165,045 Unrealized depreciation on forward foreign currency exchange contracts 410 -- Accrued liabilities: Investment advisory fees 1,571 264,881 Administration fees -- 35,735 Shareholder servicing fees 3,564 33,136 Distribution fees -- 228 Custodian fees 20,075 42,211 Trustees' fees - deferred compensation plan 16 39,265 Other 49,619 42,756 - ---------------------------------------------------------------------------------- Total Liabilities 882,458 1,023,306 - ---------------------------------------------------------------------------------- NET ASSETS: Paid in capital 30,242,578 535,439,460 Accumulated undistributed (overdistributed) net investment income 153,827 1,088,746 Accumulated net realized gain (loss) on investments and foreign exchange transactions (4,245,660) (27,186,684) Net unrealized appreciation (depreciation) of investments and foreign exchange translations (2,636,458) (42,003,165) - ---------------------------------------------------------------------------------- Total Net Assets $ 23,514,287 $ 467,338,357 - ---------------------------------------------------------------------------------- Shares of beneficial interest outstanding ($0.001 par value; unlimited number of shares authorized): Class A 937 296,721 Class B 838 4,262 Class C -- 1,073 Institutional 516,702 -- Select 1,379,101 23,725,814 Net Asset Value: Class A (and redemption price) $ 12.36 $ 19.45 Class B* $ 12.27 $ 19.37 Class C* $ -- $ 19.37 Institutional (and redemption price) $ 12.40 $ -- Select (and redemption price) $ 12.39 $ 19.45 Class A Maximum Public Offering Price Per Share (net asset value per share/94.25%) $ 13.11 $ 20.64 - ---------------------------------------------------------------------------------- Cost of investments $ 25,278,362 $ 469,230,244 - ---------------------------------------------------------------------------------- Cost of foreign currency $ 598,443 $ 555,111 ==================================================================================
*Redemption price may be reduced by contingent deferred sales charge. See notes to financial statements. 60 JPMORGAN FUNDS Statement of Operations For the six months ended April 30, 2003 (unaudited)
EUROPEAN JAPAN FUND FUND - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Dividend $ 673,442 $ 6,883 Foreign tax withholding (103,582) (863) - ------------------------------------------------------------------------------------------------------------------ Total investment income 569,860 6,020 ================================================================================================================== EXPENSES: Investment advisory fees 172,620 5,667 Administration fees 39,836 850 Shareholder servicing fees 29,193 128 Distribution fees 77,774 1,673 Custodian and accounting fees 200,967 60,342 Printing and postage 15,325 289 Professional fees 30,942 29,634 Registration fees 17,082 13,363 Transfer agent fees 100,748 19,216 Trustees' fees 265 6 Other 6,904 3,401 - ------------------------------------------------------------------------------------------------------------------ Total expenses 691,656 134,569 - ------------------------------------------------------------------------------------------------------------------ Less amounts waived 206,787 7,934 Less expense reimbursements 29,960 116,333 - ------------------------------------------------------------------------------------------------------------------ Net expenses 454,909 10,302 - ------------------------------------------------------------------------------------------------------------------ Net investment income (loss) 114,951 (4,282) - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on transactions from: Investments (898,832) (39,260) Foreign exchange contracts 35,449 (1,144) Change in net unrealized appreciation (depreciation) of: Investments 3,157,984 34,670 Foreign exchange translations 7,744 131 - ------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments and foreign exchange transactions 2,302,345 (5,603) - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $ 2,417,296 $ (9,885) ==================================================================================================================
See notes to financial statements 61
INTERNATIONAL INTERNATIONAL GROWTH VALUE FUND FUND - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Interest $ 58 $ -- Dividend 47,947 584,737 Dividend income from affiliated investments* -- 4,648 Foreign tax withholding (5,555) (173,043) - ------------------------------------------------------------------------------------------------------------------ Total investment income 42,450 416,342 - ------------------------------------------------------------------------------------------------------------------ EXPENSES: Investment advisory fees 15,587 120,834 Administration fees 2,338 30,209 Shareholder servicing fees 3,897 32,182 Distribution fees 5,452 778 Custodian and accounting fees 37,865 71,771 Printing and postage 2,338 3,749 Professional fees 25,687 32,758 Registration fees 4,136 15,512 Transfer agent fees 17,542 38,435 Trustees' fees 16 201 Other 2,291 4,027 - ------------------------------------------------------------------------------------------------------------------ Total expenses 117,149 350,456 - ------------------------------------------------------------------------------------------------------------------ Less amounts waived 21,822 104,112 Less expense reimbursements 62,598 20,201 - ------------------------------------------------------------------------------------------------------------------ Net expenses 32,729 226,143 - ------------------------------------------------------------------------------------------------------------------ Net investment income (loss) 9,721 190,199 - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on transactions from: Investments (25,289) 1,325,110 Futures -- (198,022) Foreign exchange contracts (815) (113,147) Change in net unrealized appreciation (depreciation) of: Investments 113,564 (871,832) Futures -- (72,344) Foreign exchange translations 930 22,487 ================================================================================================================== Net realized and unrealized gain (loss) on investments, futures and foreign exchange transactions 88,390 92,252 - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $ 98,111 $ 282,451 - ------------------------------------------------------------------------------------------------------------------ * Includes reimbursements of investment advisory, administration and shareholder servicing fees: $ -- $ 558 ==================================================================================================================
See notes to financial statements. 62
EMERGING INTERNATIONAL MARKETS OPPORTUNITIES EQUITY FUND FUND - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Interest $ 7,051 $ -- Dividend 2,946,570 1,007,977 Dividend income from affiliated investments* 18,431 -- Foreign tax withholding (376,982) (66,879) - ------------------------------------------------------------------------------------------------------------------ Total investment income 2,595,070 941,098 ================================================================================================================== EXPENSES: Investment advisory fees 643,581 323,144 Administration fees 160,895 48,472 Shareholder servicing fees 136,055 45,971 Distribution fees 18,100 239 Custodian and accounting fees 145,416 145,773 Printing and postage 15,723 8,078 Professional fees 33,873 39,068 Registration fees 12,338 18,266 Transfer agent fees 87,895 41,075 Trustees' fees 1,073 323 Other 6,437 7,110 - ------------------------------------------------------------------------------------------------------------------ Total expenses 1,261,386 677,519 - ------------------------------------------------------------------------------------------------------------------ Less amounts waived 168,847 168,056 Less expense reimbursements 6,885 13,352 - ------------------------------------------------------------------------------------------------------------------ Net expenses 1,085,654 496,111 ================================================================================================================== Net investment income (loss) 1,509,416 444,987 - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on transactions from: Investments (21,368,734) (4,727,105) Futures 90,031 -- Foreign exchange contracts 150,181 (23,769) Change in net unrealized appreciation (depreciation) of: Investments 17,409,109 6,802,043 Futures 49,553 -- Foreign exchange translations 60,720 17,825 - ------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments, futures and foreign exchange transactions (3,609,140) 2,068,994 - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $ (2,099,724) $ 2,513,981 - ------------------------------------------------------------------------------------------------------------------ * Includes reimbursements of investment advisory, administration and shareholder servicing fees: $ 2,284 $ -- ==================================================================================================================
See notes to financial statements. 63
ASIA EQUITY INTERNATIONAL FUND EQUITY FUND - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME: Interest $ 986 $ 17,615 Dividend 390,436 4,915,516 Foreign tax withholding (40,782) (661,909) - ------------------------------------------------------------------------------------------------------------------ Total investment income 350,640 4,271,222 - ------------------------------------------------------------------------------------------------------------------ EXPENSES: Investment advisory fees 132,778 1,739,894 Administration fees 19,917 260,984 Shareholder servicing fees 27,390 434,972 Distribution fees 2,798 567 Custodian and accounting fees 92,363 163,855 Printing and postage 1,915 22,955 Professional fees 35,989 44,861 Registration fees 2,871 35,833 Transfer agent fees 31,382 47,524 Trustees' fees 133 1,740 Other 2,654 9,366 - ------------------------------------------------------------------------------------------------------------------ Total expenses 350,190 2,762,551 ================================================================================================================== Less amounts waived 144,100 826,351 Less expense reimbursements 9,299 21,500 - ------------------------------------------------------------------------------------------------------------------ Net expenses 196,791 1,914,700 - ------------------------------------------------------------------------------------------------------------------ Net investment income (loss) 153,849 2,356,522 - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on transactions from: Investments (2,990,690) (7,307,049) Foreign exchange contracts 3,045 (261,817) Change in net unrealized appreciation (depreciation) of: Investments (29,915) 7,626,041 Foreign exchange translations 521 59,256 - ------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) on investments and foreign exchange transactions (3,017,039) 116,431 - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets from operations $ (2,863,190) $ 2,472,953 ==================================================================================================================
See notes to financial statements. 64 JPMORGAN FUNDS Statement of Changes in Net Assets For the periods indicated (unaudited)
EUROPEAN FUND JAPAN FUND --------------------------- --------------------------- 11/1/02 YEAR 11/1/02 YEAR THROUGH ENDED THROUGH ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) $ 114,951 $ 573,439 $ (4,282) $ (13,974) Net realized gain (loss) on investments and foreign exchange transactions (863,383) 2,432,893 (40,404) (172,025) Change in net unrealized appreciation (depreciation) of investments and foreign exchange translations 3,165,728 (795,449) 34,801 70,710 - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations 2,417,296 2,210,883 (9,885) (115,289) - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (374,810) -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS 883,462 (4,654,549) 708,117 72,270 - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 2,925,948 (2,443,666) 698,232 (43,019) NET ASSETS: Beginning of period 54,503,297 56,946,963 842,661 885,680 - -------------------------------------------------------------------------------------------------------------------------------- End of period $ 57,429,245 $ 54,503,297 $ 1,540,893 $ 842,661 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 72,574 $ 332,433 $ (5,398) $ (1,116) - --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 65
INTERNATIONAL INTERNATIONAL GROWTH FUND VALUE FUND --------------------------- --------------------------- 11/1/02 YEAR 11/1/02 YEAR THROUGH ENDED THROUGH ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) $ 9,721 $ (8,129) $ 190,199 $ 667,940 Net realized gain (loss) on investments, futures and foreign exchange transactions (26,104) (784,862) 1,013,941 3,894,948 Change in net unrealized appreciation (depreciation) of investments, futures and foreign exchange translations 114,494 293,236 (921,689) (4,820,436) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations 98,111 (499,755) 282,451 (257,548) - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income -- -- (1,481,498) (1,669,756) - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS -- 35,522 (7,335,298) (116,106,584) - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 98,111 (464,233) (8,534,345) (118,033,888) NET ASSETS: Beginning of period 3,176,925 3,641,158 45,883,401 163,917,289 - -------------------------------------------------------------------------------------------------------------------------------- End of period $ 3,275,036 $ 3,176,925 $ 37,349,056 $ 45,883,401 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 9,634 $ (87) $ 191,874 $ 1,483,173 - --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 66
INTERNATIONAL EMERGING MARKETS OPPORTUNITIES FUND EQUITY FUND --------------------------- --------------------------- 11/1/02 YEAR 11/1/02 YEAR THROUGH ENDED THROUGH ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income $ 1,509,416 $ 3,693,097 $ 444,987 $ 650,760 Net realized gain (loss) on investments, futures and foreign exchange transactions (21,128,522) (51,863,790) (4,750,874) (17,879,298) Change in net unrealized appreciation (depreciation) of investments, futures and foreign exchange translations 17,519,382 15,342,530 6,819,868 23,876,867 - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations (2,099,724) (32,828,163) 2,513,981 6,648,329 - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (2,548,193) (3,881,303) (430,000) (866,869) - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS (53,627,497) 340,406 (7,196,915) (29,141,053) - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets (58,275,414) (36,369,060) (5,112,934) (23,359,593) NET ASSETS: Beginning of period 256,136,477 292,505,537 66,250,104 89,609,697 - -------------------------------------------------------------------------------------------------------------------------------- End of period $197,861,063 $256,136,477 $ 61,137,170 $ 66,250,104 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 1,410,603 $ 2,449,380 $ (2,752,197) $ (2,767,184) - --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 67
ASIA EQUITY INTERNATIONAL FUND EQUITY FUND --------------------------- --------------------------- 11/1/02 11/1/01* 11/1/02 YEAR THROUGH THROUGH THROUGH ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss) $ 153,849 $ (6,042) $ 2,356,522 $ 2,088,955 Net realized gain (loss) on investments and foreign exchange transactions (2,987,645) (1,369,854) (7,568,866) (13,160,990) Change in net unrealized appreciation (depreciation) of investments and foreign exchange translations (29,394) (2,607,064) 7,685,297 (11,644,462) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets from operations (2,863,190) (3,982,960) 2,472,953 (22,716,497) - -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income -- -- (2,319,311) (1,161,091) - -------------------------------------------------------------------------------------------------------------------------------- INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS 3,135,861 27,224,576 219,645,872 90,120,668 - -------------------------------------------------------------------------------------------------------------------------------- Total increase (decrease) in net assets 272,671 23,241,616 219,799,514 66,243,080 NET ASSETS: Beginning of period 23,241,616 -- 247,538,843 181,295,763 - -------------------------------------------------------------------------------------------------------------------------------- End of period $ 23,514,287 $ 23,241,616 $467,338,357 $247,538,843 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 153,827 $ (22) $ 1,088,746 $ 1,051,535 - --------------------------------------------------------------------------------------------------------------------------------
*Commencement of operations. See notes to financial statements. 68 JPMORGAN FUNDS Notes to Financial Statements (unaudited) 1. ORGANIZATION Mutual Fund Group ("MFG"), J.P. Morgan Institutional Funds ("JPMIF") and Mutual Fund Select Group ("MFSG") (the "Trusts") were organized on May 11, 1987, November 4, 1992 and October 1, 1996, respectively, as Massachusetts business trusts, and are registered under the Investment Company Act of 1940 (the "1940 Act"), as amended, as open-end management investment companies. The following are eight separate portfolios of the Trusts (collectively, the "Funds"):
FUND CLASSES OFFERED - ------------------------------------------------------------------------------------------------- JPMorgan Fleming European Fund ("EF") Class A, Class B, Class C, Institutional and Select JPMorgan Fleming Japan Fund ("JF") Class A and Class B JPMorgan Fleming International Growth Fund ("IGF") Class A and Class B JPMorgan Fleming International Value Fund ("IVF") Class A, Class B, Institutional and Select JPMorgan Fleming International Opportunities Fund ("IOF") Class A, Class B, Institutional and Select JPMorgan Fleming Emerging Markets Equity Fund ("EMF") Class A, Class B, Institutional and Select JPMorgan Fleming Asia Equity Fund ("AEF") Class A, Class B, Institutional and Select JPMorgan Fleming International Equity Fund ("IEF") Class A, Class B, Class C and Select
IEF was formerly named Select International Equity Fund ("SIEF"). The name change for IEF was effective January 31, 2003. EF, JF, IGF and AEF are separate series of MFG. IVF, IOF and EMF are separate series of JPMIF. IEF is a separate series of MFSG. 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. Class B shares automatically convert to Class A shares after eight years. No sales charges are assessed with respect to the Institutional and Select Classes. All classes of shares have equal rights as to earnings, assets and voting privileges except that each class may bear different transfer agent, distribution and shareholder servicing fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements. 2. SIGNIFICANT ACCOUNTING POLICIES THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE FUNDS: The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. 69 A. VALUATION OF INVESTMENTS -- Equity securities, purchased options and futures contracts are valued at the last sale price on the exchange on which they are primarily traded. The value of National Market System equity securities quoted by The Nasdaq Stock Market, Inc. shall generally be the Nasdaq Official Closing Price. Securities for which sale prices are not available and other over-the-counter securities are valued at the mean between the bid and asked quotations. Fixed income securities, other than convertible bonds, with a maturity of 61 days or more held by Funds will be valued each day based on readily available market quotations received from independent or affiliated commercial pricing services. Such pricing services will generally provide bidside quotations. Convertible bonds are valued at the last sale price on the primary exchange on which the bond is principally traded. When valuations are not readily available, securities are valued at fair value as determined in accordance with procedures adopted by the Trustees. It is reasonably 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. Short-term investments with 60 days or less to maturity at time of purchase are valued at amortized cost, which approximates market value. 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. If events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Funds' net assets are calculated, such securities will be valued at fair value in accordance with procedures adopted by the Trustees. B. FUTURES CONTRACTS -- When a Fund enters into a futures contract, it makes an initial margin deposit in a segregated account, either in cash or liquid securities. Thereafter, the futures contract is marked to market and the fund makes (or receives) additional cash payments daily to (or from) the broker. Changes in the value of the contract are recorded as unrealized appreciation (depreciation) until the contract is closed or settled. Index futures contracts are used to control the asset mix of the portfolios in the most efficient manner, allowing the Funds to adjust country exposures while incurring minimal transaction costs. Short index futures contracts are used for hedging purposes, i.e. to reduce the exposure to equities. Long index futures contracts are used to gain exposure to equities, when it is anticipated that this will be more efficient than buying stocks directly. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subject 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 70 transaction, therefore, the Fund's credit risk is limited to failure of the exchange or board of trade. As of April 30, 2003, IVF had outstanding futures contracts as listed on the Fund's Portfolio of Investments. C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are maintained in U.S.dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates, or at the mean of the current bid and asked prices, of such currencies against the U.S. dollar as quoted by a major bank, on the following basis: 1. Market value of investment securities and other assets and liabilities: at the rate of exchange at the valuation date. 2. Purchases and sales of investment securities, income and expenses: at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held or sold during the year. Accordingly, such realized foreign currency gains (losses) are included in the reported net realized and unrealized gains (losses) on investment transactions. Reported realized foreign currency gains or losses arise from disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds' books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. Unrealized foreign exchange gains and losses arise from changes (due to the changes in the exchange rate) in the value of foreign currency and other assets and liabilities denominated in foreign currencies which are held at period end. D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Funds may enter into forward foreign currency exchange contracts (obligations to purchase or sell foreign currency in the future on a date and price fixed at the time the contracts are entered into) to manage the Fund's exposure to foreign currency exchange fluctuations. Each day the forward contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking to market". When the forward contract is closed, or the delivery of the currency is made or taken, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund's basis in the contract. The Funds are subject to off-balance sheet risk to the extent of the value of the contracts for purchases of foreign currency and in an unlimited amount for sales of foreign currency. As of April 30, 2003, the Funds had outstanding forward foreign currency exchange contracts as listed on the Funds' Portfolio of Investments. 71 E. RESTRICTED AND ILLIQUID SECURITIES -- Each Fund is permitted to invest up to 15% of its net assets in securities that are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult. F. SECURITIES 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 the identified cost basis. Interest income is determined on the basis of coupon interest accrued using the interest method, adjusted for amortization of premiums and accretion of discounts. Dividend income is recorded on the ex-dividend date or when the Fund first learns of the dividend. G. ALLOCATION OF INCOME AND EXPENSES -- Expenses directly attributable to a Fund are charged to that Fund; other expenses of the Trusts are allocated proportionately among each of the Funds within the Trusts in relation to the net assets of each Fund or on another reasonable basis. Expenses directly attributable to a particular share class are charged directly to that class. 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. H. FEDERAL INCOME TAXES -- Each Fund is treated as a separate taxable entity for Federal income tax purposes. The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized gain on investments. In addition, the Funds intend to make distributions as required to avoid excise taxes. Accordingly, no provision for Federal income or excise tax is necessary. I. FOREIGN TAXES -- Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. J. DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions paid to shareholders are recorded on the ex-dividend date. 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. 72 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES A. INVESTMENT ADVISORY FEE -- Pursuant to separate Investment Advisory Agreements, J. P. Morgan Fleming Asset Management (USA), Inc. ("JPMFAM") and J.P. Morgan Investment Management, Inc. ("JPMIM" and, together with JPMFAM, the "Advisors") act as the investment advisors to the Funds. JPMFAM, a direct wholly owned subsidiary of JPMorgan Chase Bank ("JPMCB") and an indirect wholly owned subsidiary of J.P. Morgan Chase & Co. ("JPMorgan"), is the Advisor for EF, JF, IGF and IEF. JPMIM, a wholly owned subsidiary of JPMorgan, is the advisor for IVF, IOF, EMF and AEF. 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 for each Fund is as follows:
INVESTMENT FUND ADVISORY FEE (%) --------------------------------------- EF 0.65 JF 1.00 IGF 1.00 IVF 0.60 IOF 0.60 EMF 1.00 AEF 1.00 IEF 1.00
JPMFAM, on behalf of EF, JF, IGF and IEF, has entered into an investment sub-advisory agreement with J.P. Morgan Fleming Asset Management (London) Limited ("JPMFAM (London)"). JPMIM, on behalf of AEF, has entered into an investment sub-advisory agreement with JF International Management, Inc. ("JFIMI"). For its services as sub-advisor, JPMFAM (London) and JFIMI receive a portion of the fees payable to JPMFAM and JPMIM, respectively. The Advisors waived fees as outlined in Note 3.F. below. The Funds may invest in one or more of the affiliated Market Funds. The Advisor has agreed to waive and/or reimburse its advisory fee from the Funds in an amount sufficient to offset any doubling up of investment advisory, administration and shareholder servicing fees related to each Fund's investment in an affiliated money market fund. B. DISTRIBUTION FEES -- Pursuant to a Distribution Agreement, J.P. Morgan Fund Distributors, Inc. ("JPMFD" or "Distributor"), a wholly-owned subsidiary of The BISYS Group, Inc., serves as the Trusts' exclusive underwriter and promotes and arranges for the sale of each Fund's shares. JPMFD receives no compensation in its capacity as the Funds' underwriter. 73 The Trustees have adopted Distribution Plans (the "Distribution Plans") for Class A, B and C Shares of the Funds in accordance with Rule 12b-1 under the 1940 Act. The Distribution Plans provide 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 (%):
FUND CLASS A CLASS B CLASS C - -------------------------------------------------------------------- EF 0.25 0.75 0.75 JF 0.25 0.75 n/a IGF 0.25 0.75 n/a IVF 0.25 0.75 n/a IOF 0.25 0.75 n/a EMF 0.25 0.75 n/a AEF 0.25 0.75 n/a IEF 0.25 0.75 0.75
In addition, JPMFD receives any contingent deferred sales charges ("CDSC") from redemptions of Class B and Class C shares. The Distributor waived fees as outlined in Note 3.F. below. C. SHAREHOLDER SERVICING FEES -- The Trusts have entered into a Shareholder Servicing Agreement with JPMCB under which JPMCB provides account administration and personal account maintenance service to shareholders. JPMCB may obtain the services of one or more Shareholder Servicing Agents. For these services JPMCB or the Shareholder Servicing Agent will receive 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 (%):
INSTITUTIONAL SELECT FUND CLASS A CLASS B CLASS C CLASS CLASS - ------------------------------------------------------------------------------- EF -- 0.25 0.25 0.10 0.25 JF -- 0.25 n/a n/a n/a IGF 0.25 0.25 n/a n/a n/a IVF 0.25 0.25 n/a 0.10 0.25 IOF 0.25 0.25 n/a 0.10 0.25 EMF 0.25 0.25 n/a 0.10 0.25 AEF -- 0.25 n/a 0.10 0.25 IEF 0.25 0.25 0.25 n/a 0.25
In addition, JPMCB, Charles Schwab & Co. ("Schwab"), and JPMIF are parties to separate servicing and operating agreements (the "Schwab Agreements") whereby Schwab makes shares of IVF, IOF and EMF available to customers and investment advisors and other financial intermediaries who are Schwab's clients. IVF, IOF and EMF are not responsible for payments to Schwab under Schwab 74 Agreements; however, in the event the services agreement with Schwab is terminated for reasons other than a breach by Schwab and the relationship between JPMIF and JPMCB is terminated, IVF, IOF and EMF would be responsible for ongoing payments to Schwab with respect to pre-termination shares. The Funds' Board of Trustees has approved the addition of shareholder servicing fees to Class A Shares of EF, JF and AEF. Effective May 1, 2003, Class A Shares of EF, JF and AEF will accrue a fee that is computed daily and paid monthly equal to 0.25% of the average daily net assets. The Shareholder Servicing Agents waived fees as outlined in Note 3.F. below. D. CUSTODIAN AND ACCOUNTING FEES -- JPMCB provides portfolio accounting and custody services for all of the Funds except IGF. Compensation for such services is presented in the Statement of Operations as custodian fees. The custodian fees may be reduced by credits earned by each Fund, based on cash balances held by the custodian. Such earnings credits are presented separately in the Statement of Operations. E. ADMINISTRATION FEE -- Pursuant to the Administration Agreement, JPMCB (the "Administrator") provides certain administration services to the Funds. In consideration of these services, the Administrator receives a fee computed daily and paid monthly at an annual rate equal to 0.15% of the first $25 billion of the average daily net assets of all non-money market funds in the JPMorgan Fund Complex and 0.075% of the average daily net assets in excess of $25 billion. BISYS Fund Services, L.P. ("BISYS") serves as the Funds' sub-administrator. For its services as sub-administrator, BISYS receives a portion of the fees payable to JPMCB as Administrator. The Administrator has contractually agreed to reimburse the Funds to the extent that total operating expenses (excluding interest, taxes, extraordinary expenses and expenses related to the deferred compensation plan) exceed the percentages of their respective average daily net assets as shown in the table below (%):
INSTITUTIONAL SELECT FUND CLASS A CLASS B CLASS C CLASS CLASS - ---------------------------------------------------------------------------- EF 1.75 2.50 2.50 1.00 1.50 JF 1.75 2.50 n/a n/a n/a IGF 2.00 2.50 n/a n/a n/a IVF 1.45 1.95 n/a 0.95 1.41 IOF 1.90 2.40 n/a 0.92 1.20 EMF 2.00 2.50 n/a 1.45 1.75 AEF 1.75 2.25 n/a 1.35 1.50 IEF 1.50 2.00 2.00 n/a 1.25
75 The contractual expense limitation agreements were in effect for the six months ended April 30, 2003 for the Funds. The expense limitation percentages in the table above are due to expire as follows:
INSTITUTIONAL SELECT FUND CLASS A CLASS B CLASS C CLASS CLASS - ---------------------------------------------------------------------------- EF 2/28/04 2/28/04 2/28/04 2/28/05 2/28/05 JF 2/28/04 2/28/04 n/a n/a n/a IGF 2/28/04 2/28/04 n/a n/a n/a IVF 2/28/04 2/28/04 n/a 2/28/05 2/28/05 IOF 2/28/04 2/28/04 n/a 2/28/05 2/28/05 EMF 2/28/04 2/28/04 n/a 2/28/05 2/28/05 AEF 2/28/04 2/28/04 n/a 2/28/04 2/28/04 IEF 2/28/04 2/28/04 2/28/04 n/a 2/28/04
The Administrator waived fees and reimbursed expenses as outlined in Note 3.F. below. F. WAIVERS AND REIMBURSEMENTS -- For the six months ended April 30, 2003, the Funds' vendors waived fees and the Administrator contractually reimbursed expenses for each of the Funds as follows:
CONTRACTUAL WAIVERS ----------------------------------------------------------------- INVESTMENT SHAREHOLDER CONTRACTUAL FUND ADVISORY ADMINISTRATION SERVICING DISTRIBUTION TOTAL REIMBURSEMENT - --------------------------------------------------------------------------------------------- EF $ 163,196 $ 21,588 $ 3,755 $ -- $ 188,539 $ 29,960 JF 5,667 850 128 1,289 7,934 116,333 IGF 15,587 2,338 3,897 -- 21,822 62,598 IVF 59,198 27,640 14,705 -- 101,543 20,201 IOF -- 86,144 82,703 -- 168,847 6,885 EMF 86,130 48,472 33,454 -- 168,056 13,352 AEF 119,267 19,917 4,916 -- 144,100 9,299 IEF 287,821 321 278,059 -- 566,201 21,500 - --------------------------------------------------------------------------------------------- Total $ 736,866 $ 207,270 $ 421,617 $ 1,289 $ 1,367,042 $ 280,128 - ---------------------------------------------------------------------------------------------
76
VOLUNTARY WAIVERS -------------------------------------------------------- INVESTMENT SHAREHOLDER FUND ADVISORY ADMINISTRATION SERVICING DISTRIBUTION TOTAL - ------------------------------------------------------------------------------- EF $ -- $ 18,248 $ -- $ -- $ 18,248 IVF -- 2,569 -- -- 2,569 IEF 163,220 96,930 -- -- 260,150 - ------------------------------------------------------------------------------- Total $ 163,220 $ 117,747 $ -- $ -- $ 280,967 - -------------------------------------------------------------------------------
G. OTHER -- Certain officers of the Trust(s) are officers of J.P. Morgan Chase & Co. or of BISYS or their subsidiaries. During the period certain of the Funds purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate were affiliated with the Advisors. For the six months ended April 30, 2003, EF, EMF, AEF and IEF incurred approximately $8,181, $43, $9,878 and $108, respectively, as broker commissions with brokers/dealers affiliated with JPMCB. 77 4. CLASS SPECIFIC EXPENSES The Funds' class specific expenses for the six months ended April 30, 2003 are as follows:
SHAREHOLDER FUND SERVICING DISTRIBUTION TRANSFER AGENT - ----------------------------------------------------------------- EF Class A $ -- $ 32,244 $ 55,668 Class B 11,913 35,740 20,452 Class C 3,264 9,790 5,535 Institutional 3,304 -- 7,929 Select 10,712 -- 11,164 - ----------------------------------------------------------------- $ 29,193 $ 77,774 $ 100,748 - ----------------------------------------------------------------- JF Class A $ -- $ 1,289 $ 17,480 Class B 128 384 1,736 - ----------------------------------------------------------------- $ 128 $ 1,673 $ 19,216 - ----------------------------------------------------------------- IGF Class A $ 3,120 $ 3,120 $ 14,042 Class B 777 2,332 3,500 - ----------------------------------------------------------------- $ 3,897 $ 5,452 $ 17,542 - ----------------------------------------------------------------- IVF Class A $ 184 $ 184 $ 6,331 Class B 198 594 6,813 Institutional 12,110 -- 8,477 Select 19,690 -- 16,814 - ----------------------------------------------------------------- $ 32,182 $ 778 $ 38,435 - ----------------------------------------------------------------- IOF Class A $ 13,439 $ 13,439 $ 45,764 Class B 1,554 4,661 5,291 Institutional 88,067 -- 19,048 Select 32,995 -- 17,792 - ----------------------------------------------------------------- $ 136,055 $ 18,100 $ 87,895 - ----------------------------------------------------------------- EMF Class A $ 64 $ 64 $ 7,070 Class B 58 175 6,448 Institutional 23,209 -- 9,284 Select 22,640 -- 18,273 - ----------------------------------------------------------------- $ 45,971 $ 239 $ 41,075 - ----------------------------------------------------------------- AEF Class A $ 1,117 $ 1,748 $ 10,044 Class B 350 1,050 2,499 Institutional 3,449 -- 7,713 Select 22,474 -- 11,126 - ----------------------------------------------------------------- $ 27,390 $ 2,798 $ 31,382 - ----------------------------------------------------------------- IEF Class A $ 343 $ 343 $ 18,015 Class B 65 195 3,523 Class C 10 29 388 Select 434,554 -- 25,598 - ----------------------------------------------------------------- $ 434,972 $ 567 $ 47,524 - -----------------------------------------------------------------
78 5. CLASS SPECIFIC DISTRIBUTIONS The Funds' class specific distributions from net investment income and realized gain on investment transactions for the six months ended April 30, 2003 and the period ended October 31, 2002 are as follows:
SIX MONTHS ENDED 4/30/03 YEAR ENDED 10/31/02 ---------------------------------- -------------------------------- NET NET FUND INVESTMENT INCOME REALIZED GAIN INVESTMENT INCOME REALIZED GAIN - ----------------------------------------------------------------------------------------- EF Class A $ 182,850 $ -- $ -- $ -- Class B 62,545 -- -- -- Class C 17,829 -- -- -- Institutional 49,458 -- -- -- Select 62,128 -- -- -- - ----------------------------------------------------------------------------------------- $ 374,810 $ -- $ -- $ -- - ----------------------------------------------------------------------------------------- IVF Class A $ 5,641 $ -- $ 484 $ -- Class B 5,748 -- 403 -- Institutional 876,423 -- 1,369,814 -- Select 593,686 -- 299,055 -- - ------------------------------------------------------------------------------------------- $ 1,481,498 $ -- $ 1,669,756 $ -- - ------------------------------------------------------------------------------------------- IOF Class A $ 117,616 $ -- $ 160,758 $ -- Class B 12,558 -- 16,272 -- Institutional 2,095,227 -- 3,350,183 -- Select 322,792 -- 354,090 -- - ------------------------------------------------------------------------------------------- $ 2,548,193 $ -- $ 3,881,303 $ -- - ------------------------------------------------------------------------------------------- EMF Class A $ 886 $ -- $ 116 $ -- Class B 230 -- 100 -- Institutional 307,561 -- 672,780 -- Select 121,323 -- 193,873 -- - ------------------------------------------------------------------------------------------- $ 430,000 $ -- $ 866,869 $ -- - ------------------------------------------------------------------------------------------- IEF Class A $ 476 $ -- $ 139 $ -- Class B 204 -- 13 -- Class C 4 -- -- -- Select 2,318,627 -- 1,160,939 -- - ------------------------------------------------------------------------------------------- $ 2,319,311 $ -- $ 1,161,091 $ -- - -------------------------------------------------------------------------------------------
79 6. INVESTMENT TRANSACTIONS For the six months ended April 30, 2003, purchases and sales of investments (excluding short-term investments) are as follows:
PURCHASES SALES (EXCLUDING U.S. (EXCLUDING U.S. FUND GOVERNMENT) GOVERNMENT) ------------------------------------------------------ EF $ 183,382,711 $ 181,684,118 JF 2,855,567 2,256,558 IGF 215,049 244,628 IVF 24,935,002 34,342,944 IOF 68,612,472 109,109,193 EMF 28,284,322 35,517,471 AEF 18,719,078 15,891,161 IEF 208,628,825 20,556,562
7. FEDERAL INCOME TAX MATTERS For Federal income tax purposes, the cost and unrealized appreciation (depreciation) in value of the investment securities at April 30, 2003, are as follows:
GROSS GROSS NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION FUND AGGREGATE COST APPRECIATION DEPRECIATION (DEPRECIATION) - ----------------------------------------------------------------------------- EF $ 52,244,349 $ 4,913,950 $ (495,014) $ 4,418,936 JF 1,387,424 59,927 (56,281) 3,646 IGF 3,907,594 129,763 (815,570) (685,807) IVF 32,552,967 4,833,729 (1,446,455) 3,387,274 IOF 199,630,275 20,715,850 (19,181,984) 1,533,866 EMF 64,078,681 10,838,756 (15,493,196) (4,654,440) AEF 25,278,362 454,145 (3,092,474) (2,638,329) IEF 469,230,244 13,614,448 (55,709,573) (42,095,125)
8. BANK BORROWINGS Pursuant to a Line of Credit Agreement, dated April 17, 2003, the Funds may borrow money for temporary or emergency purposes. The Funds have entered into the agreement, enabling them to participate with other JPMorgan Funds in a line of credit with JPMCB, as administrative agent, and with a syndicate of banks, which permits borrowings up to $250 million, collectively. Interest is charged to each Fund based on its borrowings at an annual rate equal to the sum of the Federal Funds Rate plus 0.50%. The Funds also pay a commitment fee of 0.09% per annum on the average daily amount of the available commitment, which is allocated on a pro-rata basis to the Funds. The commitment fee is included in Other expenses on the Statement of Operations. This agreement will expire on April 15, 2004. 80 Prior to April 17, 2003, the Funds could borrow money for temporary or emergency purposes. The Fund had entered into an agreement, enabling them to participate with other JPMorgan Funds in an unsecured line of credit with a syndicate of banks, which permitted borrowings up to $400 million, collectively. Interest was charged to each Fund based on its borrowings at an annual rate equal to the sum of the Federal Funds Rate plus 0.50%. The Funds also paid a commitment fee of 0.09% per annum on the average daily amount of the available commitment, which was allocated on a pro-rata basis to the Funds. This agreement expired on April 16, 2003. The Funds had no borrowings outstanding at April 30, 2003, nor at anytime during the period then ended. 9. CONCENTRATIONS AND INDEMNIFICATIONS Investments in international markets may involve certain considerations and risks not typically associated with investments in the United States. Future economic and political developments in foreign countries could adversely affect the liquidity or value, or both, of such securities in which the Fund is invested. As of April 30, 2003, substantially all of the Funds' net assets consist of securities of issuers which are denominated in foreign currencies. Changes in currency exchange rates will affect the value of and investment income from such securities. As of April 30, 2003, IGF, IVF, IOF and IEF invested approximately 31.7%, 21.6%, 28.2% and 29.5%, respectively, of its respective portfolio in issuers in the United Kingdom. EMF and AEF invested 25.5% and 24.6%, respectively, of its respective portfolio in issuers in South Korea. As of April 30, 2003, EF invested approximately 20.9% of its portfolio in securities issued by telecommunications companies. IVF invested approximately 21.2% of its portfolio in securities issued by banking companies. From time to time, the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Funds. 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. 10. SUBSEQUENT EVENT The Funds' Board of Trustees has approved a change of name for Mutual Fund Group and Mutual Fund Select Group. The Trusts will be renamed J.P. Morgan Mutual Fund Group and J.P. Morgan Mutual Fund Select Group, respectively, effective May 1, 2003. 81 11. CAPITAL SHARE TRANSACTIONS Capital share transactions were as follows for the periods presented: EUROPEAN FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 13,546,175 1,030,625 $ 889,393 71,434 Shares issued in reinvestment of distributions 83,574 6,424 48,442 3,900 Shares redeemed (13,729,162) (1,052,495) (1,541,596) (125,390) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (99,413) (15,446) $ (603,761) (50,056) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 40,753,598 2,875,391 $ 4,484,346 318,418 Shares redeemed (47,411,189) (3,310,622) (5,530,683) (399,067) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (6,657,591) (435,231) $ (1,046,337) (80,649) ================================================================================================================================== CLASS C INSTITUTIONAL ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 815,040 66,438 $ 2,658,195 203,432 Shares issued in reinvestment of distributions 6,481 522 9,584 731 Shares redeemed (760,681) (62,311) (1,357,448) (100,979) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 60,840 4,649 $ 1,310,331 103,184 ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 1,023,454 75,383 $ 3,747,517 261,900 Shares redeemed (1,513,850) (110,608) (2,189,224) (153,807) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (490,396) (35,225) $ 1,558,293 108,093 ================================================================================================================================== SELECT ---------------------------------- AMOUNT SHARES - -------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - -------------------------------------------------------------------------------------------- Shares sold $ 18,521,240 1,423,362 Shares issued in reinvestment of distributions 53,460 4,100 Shares redeemed (18,359,235) (1,415,901) - -------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 215,465 11,561 ============================================================================================ YEAR ENDED OCTOBER 31, 2002 - -------------------------------------------------------------------------------------------- Shares sold $ 73,084,253 5,179,585 Shares redeemed (71,102,771) (5,008,408) - -------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 1,981,482 171,177 ============================================================================================
82 JAPAN FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 3,221,265 760,115 $ 171,801 41,707 Shares redeemed (2,503,149) (577,457) (181,800) (43,752) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 718,116 182,658 $ (9,999) (2,045) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 4,559,564 891,941 $ 1,385,230 259,676 Shares redeemed (4,477,072) (868,232) (1,395,452) (260,212) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 82,492 23,709 $ (10,222) (536) ==================================================================================================================================
83 INTERNATIONAL GROWTH FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ -- -- $ -- -- Shares redeemed -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ -- -- $ -- -- ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 827,887 102,240 $ 825,000 102,357 Shares redeemed $ (811,365) (100,169) $ (806,000) (100,000) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 16,522 2,071 $ 19,000 2,357 ==================================================================================================================================
84 INTERNATIONAL VALUE FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 194,803 30,098 $ 5,214 814 Shares issued in reinvestment of distributions 2,552 376 5,748 850 Shares redeemed (220,458) (33,790) (13,899) (2,005) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (23,103) (3,316) $ (2,937) (341) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 610,100 73,440 $ 397,532 49,358 Shares issued in reinvestment of distributions 484 58 403 48 Shares redeemed (435,537) (51,484) (214,932) (26,009) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 175,047 22,014 $ 183,003 23,397 ================================================================================================================================== INSTITUTIONAL SELECT ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 27,273,471 3,957,597 $ 35,473,825 5,209,540 Shares issued in reinvestment of distributions 662,311 97,113 527,931 77,523 Shares redeemed (33,712,405) (4,868,529) (37,534,391) (5,524,522) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (5,776,623) (813,819) $ (1,532,635) (237,459) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 191,108,290 23,571,460 $ 102,675,904 13,249,092 Shares issued in reinvestment of distributions 987,326 118,669 257,893 30,997 Shares redeemed (305,835,898) (36,824,872) (105,658,149) (13,440,339) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (113,740,282) (13,134,743) $ (2,724,352) (160,250) ==================================================================================================================================
85 INTERNATIONAL OPPORTUNITIES FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 11,646,055 1,608,854 $ 91,809 12,141 Shares issued in reinvestment of distributions 99,065 13,243 10,904 1,464 Shares redeemed (11,652,875) (1,609,181) (265,095) (37,116) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 92,245 12,916 $ (162,382) (23,511) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 17,225,868 2,032,356 $ 597,010 68,429 Shares issued in reinvestment of distributions 122,484 13,670 13,272 1,481 Shares redeemed (24,594,620) (2,896,986) (1,956,074) (228,967) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (7,246,268) (850,960) $ (1,345,792) (159,057) ================================================================================================================================== INSTITUTIONAL SELECT ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 46,678,606 6,331,059 $ 52,648,560 7,031,442 Shares issued in reinvestment of distributions 1,065,103 141,073 248,520 33,004 Shares redeemed (92,163,749) (12,457,919) (62,034,400) (8,238,134) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (44,420,040) (5,985,787) $ (9,137,320) (1,173,688) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 301,479,963 34,677,307 $ 214,045,865 26,886,447 Shares issued in reinvestment of distributions 1,719,932 191,957 257,698 28,760 Shares redeemed (291,711,949) (33,892,147) (216,859,043) (26,791,379) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 11,487,946 977,117 $ (2,555,480) 123,828 ==================================================================================================================================
86 EMERGING MARKETS EQUITY FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 111,821 20,638 $ 197,072 37,078 Shares issued in reinvestment of distributions 886 161 227 41 Shares redeemed (98,756) (18,036) (201,866) (37,883) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 13,951 2,763 $ (4,567) (714) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 1,329,658 207,292 $ 130,658 20,149 Shares issued in reinvestment of distributions 116 20 96 16 Shares redeemed (1,288,664) (200,628) (91,611) (14,312) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 41,110 6,684 $ 39,143 5,853 ================================================================================================================================== INSTITUTIONAL SELECT ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 11,851,220 2,217,883 $ 15,153,429 2,834,005 Shares issued in reinvestment of distributions 886 269,543 48,742 109,846 19,972 Shares redeemed (16,888,025) (3,194,421) (17,702,312) (3,314,496) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (4,767,262) (927,796) $ (2,439,037) (460,519) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 28,775,875 4,709,469 $ 33,349,693 5,728,695 Shares issued in reinvestment of distributions 687,716 107,676 188,618 32,353 Shares redeemed (54,065,211) (8,864,012) (38,157,997) (6,522,805) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (24,601,620) (4,046,867) $ (4,619,686) (761,757) ==================================================================================================================================
87 ASIA EQUITY FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 3,594 81 $ 374 30 Shares redeemed (2,182,018) (165,811) (425,219) (32,525) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ (2,178,424) (165,730) $ (424,845) (32,495) ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002* - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 2,500,000 166,667 $ 500,000 33,333 Shares redeemed -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 2,500,000 166,667 $ 500,000 33,333 ================================================================================================================================== INSTITUTIONAL SELECT ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 2,031,601 151,534 $ 8,604,298 622,341 Shares redeemed (1,370,052) (106,268) (3,526,717) (267,563) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 661,549 45,266 $ 5,077,581 354,778 ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002* - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 8,594,000 542,864 $ 19,864,176 1,260,983 Shares redeemed (1,030,402) (71,428) (3,203,198) (236,660) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 7,563,598 471,436 $ 16,660,978 1,024,323 ==================================================================================================================================
* The Fund commenced its operations on November 1, 2001. For Institutional and Select Shares, from commencement of offering on June 28, 2002. 88 INTERNATIONAL EQUITY FUND
CLASS A CLASS B ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003 - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 7,464,060 398,381 $ 59,372 3,152 Shares issued in reinvestment of distributions 385 20 204 11 Shares redeemed (1,961,324) (106,355) (317) (17) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 5,503,121 292,046 $ 59,259 3,146 ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002* - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 100,938 4,911 $ 24,345 1,115 Shares issued in reinvestment of distributions 139 7 13 1 Shares redeemed (5,077) (243) -- -- - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 96,000 4,675 $ 24,358 $ 1,116 ================================================================================================================================== CLASS C SELECT ---------------------------------- ---------------------------------- AMOUNT SHARES AMOUNT SHARES - ---------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2003** - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 229,132 12,556 $ 252,402,282 12,998,971 Shares issued in reinvestment of distributions 4 --^ 820,899 44,926 Shares redeemed (207,445) (11,483) (39,161,380) (2,041,555) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 21,691 1,073 $ 214,061,801 11,002,342 ================================================================================================================================== YEAR ENDED OCTOBER 31, 2002* - ---------------------------------------------------------------------------------------------------------------------------------- Shares sold $ 147,829,519 6,873,406 Shares issued in reinvestment of distributions 138,342 6,878 Shares redeemed (57,967,551) (2,707,300) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in Fund shares outstanding $ 90,000,310 4,172,984 ==================================================================================================================================
** For Class C Shares, from commencement of offering on January 31, 2003. * For Class A Shares and Class B Shares, from commencement of offering on February 28, 2002. ^ Amount rounds to less than one share. 89 JPMORGAN FUNDS Financial Highlights (unaudited)
EUROPEAN FUND^^ ------------------------------------------------------------------------------------- CLASS A ------------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH --------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.23 $ 12.96 $ 17.87 $ 16.52 $ 14.47 $ 14.10 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.03^ 0.14^ 0.02^ (0.12)^ (0.06)^ 0.15 Net gains or losses on securities (both realized and unrealized) 0.59 0.13 (3.24) 1.83 2.31 2.16 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.62 0.27 (3.22) 1.71 2.25 2.31 ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.09 -- -- -- 0.09 0.22 Distributions from capital gains -- -- 1.69 0.36 0.11 1.72 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.09 -- 1.69 0.36 0.20 1.94 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 13.76 $ 13.23 $ 12.96 $ 17.87 $ 16.52 $ 14.47 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 4.73% 2.08% (19.49%) 10.13% 15.60% 18.71% ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 28,076 $ 27,208 $ 32,317 $ 75,801 $ 47,759 $ 33,743 - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.65% 1.65% 1.75% 1.74% 1.74% 1.74% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.47% 1.03% 0.17% (0.60%) (0.40%) (0.07) - ---------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 2.50% 2.45% 2.07% 1.95% 2.06% 2.38% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (0.38%) 0.23% (0.15) (0.81%) (0.72%) (0.71) - ---------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 352% 1,021 564% 161% 149% 183% - ---------------------------------------------------------------------------------------------------------------------------------- EUROPEAN FUND^^ ------------------------------------------------------------------------------------- CLASS B ------------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH --------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.63 $ 12.48 $ 17.38 $ 16.18 $ 14.24 $ 13.93 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.01)^ 0.05^ (0.09)^ (0.27)^ (0.18)^ 0.08 Net gains or losses on securities (both realized and unrealized) 0.56 0.10 (3.12) 1.83 2.26 2.10 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.55 0.15 (3.21) 1.56 2.08 2.18 ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.08 -- -- -- 0.03 0.15 Distributions from capital gains -- -- 1.69 0.36 0.11 1.72 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.08 -- 1.69 0.36 0.14 1.87 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 13.10 $ 12.63 $ 12.48 $ 17.38 $ 16.18 $ 14.24 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 4.38% 1.20% (20.03%) 9.40% 14.66% 17.89% ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 9,726 $ 10,017 $ 10,905 $ 18,546 $ 10,038 $ 9,457 - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 2.39% 2.39% 2.50% 2.49% 2.51% 2.50% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) (0.26%) 0.38% (0.62%) (1.35%) (1.12%) (0.75%) - ---------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 3.25% 3.20% 2.82% 2.69% 2.83% 2.91% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (1.12%) (0.43%) (0.94%) (1.55%) (1.44%) (1.16%) - ---------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 161% 149% 183% - ----------------------------------------------------------------------------------------------------------------------------------
^^ Formerly Chase Vista European Fund. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. See notes to financial statements. 90
EUROPEAN FUND^^ - ------------------------------------------------------------------------------------------------------------------- CLASS C - ------------------------------------------------------------------------------------------------------------------- 11/1/02 YEAR ENDED 11/1/98** THROUGH ---------------------------------------- THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 - ------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.62 $ 12.47 $ 17.37 $ 16.19 $ 14.24 - ------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.01)^ 0.05^ (0.08)^ (0.26)^ (0.08)^ Net gains or losses on securities (both realized and unrealized) 0.55 0.10 (3.13) 1.80 2.17 ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.54 0.15 (3.21) 1.54 2.09 ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.08 -- -- -- 0.03 Distributions from capital gains -- -- 1.69 0.36 0.11 ---------- ---------- ---------- ---------- ---------- Total distributions 0.08 -- 1.69 0.36 0.14 ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 13.08 $ 12.62 $ 12.47 $ 17.37 $ 16.19 - ------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 4.33% 1.20% (20.04%) 9.27% 14.73% =================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 2,663 $ 2,512 $ 2,922 $ 4,229 $ 1,460 - ------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------------------------------------- Net expenses 2.39% 2.39% 2.50% 2.49% 2.51% - ------------------------------------------------------------------------------------------------------------------- Net investment income (loss) (0.18%) 0.36% (0.55%) (1.33%) (0.61%) - ------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 3.25% 3.20% 2.82% 2.67% 2.83% - ------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (1.04%) (0.45%) (0.87%) (1.51%) (0.93%) - ------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 161% 149% - ------------------------------------------------------------------------------------------------------------------- EUROPEAN FUND^^ - ------------------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL SELECT -------------------------------------- --------------------------------------- 11/1/02 YEAR 9/10/01** 11/1/02 YEAR 9/10/01** THROUGH ENDED THROUGH THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.33 $ 12.99 $ 13.14 $ 13.26 $ 12.97 $ 13.14 - ------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.08^ 0.24^ (0.05)^ 0.04^ 0.14^ --^ ---------- ---------- ---------- ---------- ---------- ---------- Net gains or losses on securities (both realized and unrealized) 0.58 0.10 (0.10) 0.58 0.15 (0.17) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.66 0.34 (0.15) 0.62 0.29 (0.17) Less distributions: Dividends from net investment income 0.10 -- -- 0.09 -- -- Distributions from capital gains -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.10 -- -- 0.09 -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 13.89 $ 13.33 $ 12.99 $ 13.79 $ 13.26 $ 12.97 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 5.03% 2.62% (1.14%) 4.75% 2.24% (1.29%) =============================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 8,002 $ 6,305 $ 4,740 $ 8,962 $ 8,461 $ 6,063 - ------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.00% 1.00% 1.00% 1.50% 1.50% 1.50% - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.23% 1.81% (2.60%) 0.64% 1.06% (0.06%) - ------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 2.16% 2.25% 3.34%! 2.33% 2.43% 3.74%! - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.07% 0.56% (4.94%)! (0.19%) 0.13% (2.30%)! - ------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 352% 1,021% 564% - -------------------------------------------------------------------------------------------------------------------------------
^^ Formerly Chase Vista European Fund. ** Commencement of offering of class of shares. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. See notes to financial statements. 91
JAPAN FUND^^ - --------------------------------------------------------------------------------------------------------------------------------- CLASS A ------------------------------------------------------------------------------------ 11/1/02 YEAR ENDED THROUGH -------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 4.43 $ 5.29 $ 8.12 $ 9.84 $ 6.41 $ 9.52 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.01)^ (0.06) (0.08)^ (0.15)^ (0.07)^ 0.27 Net gains or losses on securities (both realized and unrealized) (0.27) (0.80) (2.75) (1.57) 3.50 (2.91) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations (0.28) (0.86) (2.83) (1.72) 3.43 (2.64) ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income -- -- -- -- -- 0.26 Tax return of capital -- -- -- -- -- 0.21 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions -- -- -- -- -- 0.47 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 4.15 $ 4.43 $ 5.29 $ 8.12 $ 9.84 $ 6.41 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (6.32%) (16.26%) (34.85%) (17.48%) 53.51% (28.98%) ================================================================================================================================= RATIOS/SUPPLEMENTAL DATA: - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 1,447 $ 734 $ 751 $ 2,448 $ 4,260 $ 1,770 - --------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - --------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.75% 1.75% 1.75% 1.77% 1.74% 1.76% - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) (0.65%) (1.26%) (1.22%) (1.54%) (0.88%) (0.56%) - --------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers, reimbursements and earnings credits 23.71%! 22.18%! 9.28%! 5.49%! 5.44%! 3.79%! - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers, reimbursements and earnings credits (22.61%)! (21.69%)! (8.75%)! (5.26%)! (4.58%)! (2.59%)! - --------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 198% 409% 196% 123% 133% 212% - --------------------------------------------------------------------------------------------------------------------------------- JAPAN FUND^^ ------------------------------------------------------------------------------------ CLASS B ------------------------------------------------------------------------------------ 11/1/02 YEAR ENDED THROUGH -------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 4.25 $ 5.13 $ 7.93 $ 9.65 $ 6.32 $ 9.42 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) (0.04)^ (0.12) (0.13)^ (0.22)^ (0.13)^ 0.23 Net gains or losses on securities (both realized and unrealized) (0.24) (0.76) (2.67) (1.50) 3.46 (2.90) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations (0.28) (0.88) (2.80) (1.72) 3.33 (2.67) ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income -- -- -- -- -- 0.22 Tax return of capital -- -- -- -- -- 0.21 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions -- -- -- -- -- 0.43 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 3.97 $ 4.25 $ 5.13 $ 7.93 $ 9.65 $ 6.32 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (6.59%) (17.15%) (35.31%) (17.82%) 52.69% (29.53%) ================================================================================================================================= RATIOS/SUPPLEMENTAL DATA: - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted $ 94 $ 109 $ 135 $ 322 $ 1,089 $ 391 - --------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - --------------------------------------------------------------------------------------------------------------------------------- Net expenses 2.50% 2.50% 2.47% 2.52% 2.49% 2.51% - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) (1.80%) (2.25%) (1.92%) (2.29%) (1.67%) (0.97%) - --------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers, reimbursements and earnings credits 24.06%! 22.96%! 11.24%! 6.14%! 6.19%! 4.52%! - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers, reimbursements and earnings credits (23.36%)! (22.71%)! (10.69%)! (5.91%)! (5.37%)! (2.98%)! - --------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 198% 409% 196% 123% 133% 212% - ---------------------------------------------------------------------------------------------------------------------------------
^^ Formerly Chase Vista Japan Fund. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. See notes to financial statements. 92
INTERNATIONAL GROWTH FUND^^ ------------------------------------------------------------------------------------- CLASS A CLASS B ---------------------------------------- ---------------------------------------- 11/1/02 YEAR 12/29/00* 11/1/02 YEAR 12/29/00* THROUGH ENDED THROUGH THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 6.25 $ 7.22 $ 10.00 $ 6.20 $ 7.19 $ 10.00 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.02 (0.01) (0.01) 0.01 (0.04) (0.04) Net gains or losses on securities (both realized and unrealized) 0.17 (0.96) (2.76) 0.17 (0.95) (2.77) ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.19 (0.97) (2.77) 0.18 (0.99) (2.81) ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income -- -- 0.01 -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 6.44 $ 6.25 $ 7.22 $ 6.38 $ 6.20 $ 7.19 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 3.04% (13.43%) (27.68%) 2.90% (13.77%) (28.10%) ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 2,622 $ 2,543 $ 2,922 $ 653 $ 634 $ 719 - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 2.00% 2.00% 2.00% 2.50% 2.50% 2.50% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.72% (0.12%) (0.11%) 0.22% (0.62%) (0.51%) - ---------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 7.41% 7.20% 5.19% 7.91% 7.69% 5.66% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (4.69%) (5.32%) (3.30%) (5.19%) (5.81%) (3.67%) - ---------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 7% 73% 35% 7% 73% 35% - ----------------------------------------------------------------------------------------------------------------------------------
^^ Formerly Chase Vista International Growth Fund. * Commencement of operations. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. See notes to financial statements. 93
INTERNATIONAL VALUE FUND^^ ----------------------------------------------------------------------------------- CLASS A CLASS B --------------------------------------- ---------------------------------------- 11/1/02 YEAR 9/28/01** 11/1/02 YEAR 9/28/01** THROUGH ENDED THROUGH THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 6.98 $ 8.27 $ 8.12 $ 6.96 $ 8.28 $ 8.12 - -------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.02^ 0.15^ (0.01)^ 0.01^ (0.02)^ (0.01)^ Net gains or loss on securities (both realized and unrealized) 0.02 (1.32) 0.16 0.01 (1.18) 0.17 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.04 (1.17) 0.15 0.02 (1.20) 0.16 ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.25 0.12 -- 0.25 0.12 -- Distributions from capital gains -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.25 0.12 -- 0.25 0.12 -- ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 6.77 $ 6.98 $ 8.27 $ 6.73 $ 6.96 $ 8.28 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 0.57% (14.34%) 1.85% 0.21% (14.72%) 1.97% ================================================================================================================================ RATIOS/SUPPLEMENTAL DATA: - -------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 135 $ 163 $ 10 $ 164 $ 171 $ 10 - -------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - -------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.45% 1.45% 1.45% 1.95% 1.95% 1.95% - -------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.72% 1.13% (0.89%) 0.22% (0.16%) (1.15%) - -------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 10.49%! 15.97%! 11.06%! 10.99%! 15.43%! 11.58%! - -------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (8.32%)! (13.39%)! (10.50%)! (8.82%)! (13.64%)! (10.78%)! - -------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 65% 138% 85% - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL VALUE FUND^^ ----------------------------------------------------------------------------------- INSTITUTIONAL ----------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH --------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - -------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.02 $ 8.28 $ 12.28 $ 13.56 $ 11.21 $ 11.39 Income from investment operations: Net investment income (loss) 0.04^ 0.06^ 0.07^ 0.05 0.19 0.32 Net gains or loss on securities (both realized and unrealized) 0.01 (1.19) (3.02) (0.66) 2.51 0.20 ---------- ---------- ---------- ----------- ----------- ---------- Total from investment operations 0.05 (1.13) (2.95) (0.61) 2.70 0.52 ---------- ---------- ---------- ----------- ----------- ---------- Less distributions: Dividends from net investment income 0.25 0.13 -- 0.16 0.35 0.35 Distributions from capital gains -- -- 1.05 0.51 -- 0.35 ---------- ---------- ---------- ----------- ----------- ---------- Total distributions 0.25 0.13 1.05 0.67 0.35 0.70 ---------- ---------- ---------- ----------- ----------- ---------- Net asset value, end of period $ 6.82 $ 7.02 $ 8.28 $ 12.28 $ 13.56 $ 11.21 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 0.78% (13.89%) (26.06%) (5.16%) 24.70% 4.95% ================================================================================================================================ RATIOS/SUPPLEMENTAL DATA: - -------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 22,258 $ 28,644 $ 142,590 $ 432,785 $ 471,195 $ 366,991 - -------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - -------------------------------------------------------------------------------------------------------------------------------- Net expenses 0.95% 0.95% 0.92% 0.95% 0.95% 0.97% - -------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.12% 0.91% 0.70% 0.50% 0.81% 0.92% - -------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 1.56% 1.16% 0.93% 0.95% 0.95% 0.97% - -------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.51% 0.70% 0.69% 0.50% 0.81% 0.92% - -------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 80% 70% 74% - --------------------------------------------------------------------------------------------------------------------------------
^^ Formerly JPMorgan International Equity Fund. ** Commencement of offering of class of shares. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. ~ Prior to September 10, 2001, IVF invested all of its investable assets in The International Equity Portfolio ("IEP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of IEP. See notes to financial statements. 94
INTERNATIONAL VALUE FUND^^ ------------------------------------------------------------------------------------- SELECT@ ------------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH ---------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.01 $ 8.28 $ 16.08 $ 18.70 $ 15.91 $ 16.53 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.02^ 0.07^ 0.02^ 0.27 0.24 0.51 Net gains or losses on securities (both realized and unrealized) 0.02 (1.22) (3.39) (1.07) 3.47 0.21 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.04 (1.15) (3.37) (0.80) 3.71 0.72 ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.25 0.12 1.14 0.24 0.47 0.63 Distributions from capital gains -- -- 3.29 1.58 0.45 0.71 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.25 0.12 4.43 1.82 0.92 1.34 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 6.80 $ 7.01 $ 8.28 $ 16.08 $ 18.70 $ 15.91 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (a) 0.57% (14.09%) (26.66%) (5.49%) 24.41% 4.87% ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 14,792 $ 16,905 $ 21,307 $ 55,445 $ 64,860 $ 76,472 - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.38% 1.29% 1.40% 1.30% 1.21% 1.17% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.69% 0.85% 0.20% 0.15% 0.55% 0.73% - ---------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 1.85% 1.49% 1.40% 1.30% 1.21% 1.17% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.22% 0.65% 0.20% 0.15% 0.55% 0.73% - ---------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 80% 70% 74% - ----------------------------------------------------------------------------------------------------------------------------------
^^ Formerly JPMorgan International Equity Fund. @ Prior to the open of business on September 10, 2001, the class underwent a split of shares in connection with the fund reorganization. Prior periods have been restated to reflect the split. ^ Calculated based upon average shares outstanding. (a) Not annualized for periods less than one year. # Short periods have been annualized. ~ Prior to September 10, 2001, IVF invested all of its investable assets in The International Equity Portfolio ("IEP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of IEP. See notes to financial statements. 95
INTERNATIONAL OPPORTUNITIES FUND^^ ------------------------------------------------------------------------------------ CLASS A CLASS B --------------------------------------- ---------------------------------------- 11/1/02 YEAR 9/10/01** 11/1/02 YEAR 9/10/01** THROUGH ENDED THROUGH THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01 - --------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.49 $ 8.63 $ 9.18 $ 7.46 $ 8.63 $ 9.18 - --------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.02 0.02 (0.01)^ (0.02) (0.04) (0.01)^ Net gains or losses on securities (both realized and unrealized) (0.13) (1.09) (0.54) (0.10) (1.08) (0.54) ---------- ---------- ---------- ---------- ---------- --------- Total from investment operations (0.11) (1.07) (0.55) (0.12) (1.12) (0.55) ---------- ---------- ---------- ---------- ---------- --------- Less distributions: Dividends from net investment income 0.07 0.07 -- 0.07 0.05 -- Distributions from capital gains -- -- -- -- -- -- ---------- ---------- ---------- ----------- ---------- --------- Total distributions 0.07 0.07 -- 0.07 0.05 -- ---------- ---------- ---------- ----------- ---------- --------- Net asset value, end of period $ 7.31 $ 7.49 $ 8.63 $ 7.27 $ 7.46 $ 8.63 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (1.43%) (12.55%) (5.99%) (1.63%) (13.05%) (5.99%) ================================================================================================================================= RATIOS/SUPPLEMENTAL DATA: - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 11,871 $ 12,057 $ 21,237 $ 1,159 $ 1,365 $ 2,950 - --------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - --------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.90% 1.90% 1.90% 2.40% 2.40% 2.40% - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.46% 0.20% (0.48%) 0.04% (0.30%) (0.95%) - --------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 2.30% 1.98% 1.90% 2.80% 2.49% 2.40% - --------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.06% 0.12% (0.48%) (0.36%) (0.39%) (0.95%) - --------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110% 33% 121% 110% - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL OPPORTUNITIES FUND^^ ---------------------------------------- INSTITUTIONAL ---------------------------------------- 11/1/02 YEAR 12/1/00 THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01*** - ------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.55 $ 8.64 $ 11.39 - ------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.07 0.09 0.12^ Net gains or losses on securities (both realized and unrealized) (0.14) (1.08) (2.60) ---------- ---------- ---------- Total from investment operations (0.07) (0.99) (2.48) ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.08 0.10 0.11 Distributions from capital gains -- -- 0.16 ---------- ---------- ---------- Total distributions 0.08 0.10 0.27 ---------- ---------- ---------- Net asset value, end of period $ 7.40 $ 7.55 $ 8.64 - ------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (0.89%) (11.67%) (22.24%) ===================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 160,762 $ 209,286 $ 231,048 - ------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------- Net expenses 0.92% 0.92% 0.94% - ------------------------------------------------------------------------------------- Net investment income (loss) 1.51% 1.21% 1.25% - ------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 1.07% 0.98% 0.95% - ------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 1.36% 1.15% 1.24% - ------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110% - ------------------------------------------------------------------------------------- INTERNATIONAL OPPORTUNITIES FUND^^ ------------------------------------------------------ INSTITUTIONAL ------------------------------------------------------ YEAR ENDED 2/26/97* --------------------------------------- THROUGH PER SHARE OPERATING PERFORMANCE: 11/30/00 11/30/99 11/30/98 11/30/97 - --------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 12.92 $ 10.11 $ 9.94 $ 10.00 - --------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.08 0.25 0.22 0.07 Net gains or losses on securities (both realized and unrealized) (1.42) 2.88 0.05 (0.13) ---------- ---------- ---------- ---------- Total from investment operations (1.34) 3.13 0.27 (0.06) ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.19 0.32 0.10 -- Distributions from capital gains -- -- -- -- ---------- ---------- ---------- ---------- Total distributions 0.19 0.32 0.10 -- ---------- ---------- ---------- ---------- Net asset value, end of period $ 11.39 $ 12.92 $ 10.11 $ 9.94 - --------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (10.55%) 31.87% 2.69% 0.60% =================================================================================================== RATIOS/SUPPLEMENTAL DATA: - --------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 461,016 $ 370,268 $ 323,918 $ 211,229 - --------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - --------------------------------------------------------------------------------------------------- Net expenses 0.91% 0.94% 0.99% 0.99% - --------------------------------------------------------------------------------------------------- Net investment income (loss) 0.84% 0.76% 1.13% 1.35% - --------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 0.91% 0.95% 1.02% 1.17% - --------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.84% 0.75% 1.10% 1.17% - --------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 86% 80% 143% 72% - ---------------------------------------------------------------------------------------------------
^^ Formerly J.P.Morgan Institutional International Opportunities Fund. ** Commencement of offering of class of shares. *** The Fund changed its fiscal year end from November 30 to October 31. * Commencement of operations. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ~ Prior to September 10, 2001, IOF invested all of its investable assets in the International Opportunities Portfolio ("IOP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of IOP. See notes to financial statements. 96
INTERNATIONAL OPPORTUNITIES FUND^^ ---------------------------------------- SELECT@ ---------------------------------------- 11/1/02 YEAR 12/1/00 THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01*** - ------------------------------------------------------------------------------------- Net asset value, beginning of period $ 7.53 $ 8.64 $ 11.81 - ------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.04 0.08 0.08^ Net gains or losses on securities (both realized and unrealized) (0.11) (1.10) (2.65) ---------- ---------- ---------- Total from investment operations (0.07) (1.02) (2.57) ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.08 0.09 0.32 Distributions from capital gains -- -- 0.28 ---------- ---------- ---------- Total distributions 0.08 0.09 0.60 ---------- ---------- ---------- Net asset value, end of period $ 7.38 $ 7.53 $ 8.64 - ------------------------------------------------------------------------------------- TOTAL RETURN (a) (0.93%) (11.98%) (22.66%) ===================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 24,069 $ 33,428 $ 37,271 - ------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------- Net expenses 1.20% 1.20% 1.27% - ------------------------------------------------------------------------------------- Net investment income (loss) 1.16% 0.89% 0.85% - ------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 1.34% 1.22% 1.27% - ------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 1.02% 0.87% 0.85% - ------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110% - ------------------------------------------------------------------------------------- INTERNATIONAL OPPORTUNITIES FUND^^ ------------------------------------------------------- SELECT@ ------------------------------------------------------- YEAR ENDED 2/26/97* --------------------------------------- THROUGH 11/30/00 11/30/99 11/30/98 11/30/97 - ---------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.41 $ 10.45 $ 10.32 $ 10.41 - ---------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.14 0.22 0.24 0.06 Net gains or losses on securities (both realized and unrealized) (1.58) 3.05 (0.01) (0.15) ---------- ---------- ---------- ---------- Total from investment operations (1.44) 3.27 0.23 (0.09) ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.16 0.31 0.10 -- Distributions from capital gains -- -- -- -- ---------- ---------- ---------- ---------- Total distributions 0.16 0.31 0.10 -- ---------- ---------- ---------- ---------- Net asset value, end of period $ 11.81 $ 13.41 $ 10.45 $ 10.32 - ---------------------------------------------------------------------------------------------------- TOTAL RETURN (a) (10.87%) 32.13% 2.30% (0.80%) ==================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 79,408 $ 67,543 $ 55,050 $ 62,939 - ---------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------- Net expenses 1.21% 1.18% 1.20% 1.20% - ---------------------------------------------------------------------------------------------------- Net investment income (loss) 0.55% 0.47% 0.96% 1.08% - ---------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 1.21% 1.24% 1.24% 1.51% - ---------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.55% 0.41% 0.92% 0.77% - ---------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 86% 80% 143% 72% - ----------------------------------------------------------------------------------------------------
^^ Formerly J.P. Morgan International Opportunities Fund. @ Prior to the open of business on September 10, 2001, the class underwent a split of shares in connection with the fund reorganization. Prior periods have been restated to reflect the split. *** The Fund changed its fiscal year end from November 30 to October 31. * Commencement of operations. ^ Calculated based upon average shares outstanding. (a) Not annualized for periods less than one year. # Short periods have been annualized. ~ Prior to September 10, 2001, IOF invested all of its investable assets in the International Opportunities Portfolio ("IOP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of IOP. See notes to financial statements. 97 JPMORGAN FUNDS Financial Highlights (unaudited)
EMERGING MARKETS EQUITY FUND^^ --------------------------------------- CLASS A --------------------------------------- 11/1/02 YEAR 9/28/01** THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 - ------------------------------------------------------------------------------------ Net asset value, beginning of period $ 5.21 $ 5.14 $ 4.88 - ------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) 0.03^ (0.06)^ (0.01)^ Net gains or losses on securities (both realized and unrealized) 0.18 0.17 0.27 ---------- ----------- ---------- Total from investment operations 0.21 0.11 0.26 ---------- ----------- ---------- Less distributions: Dividends from net investment income 0.03 0.04 -- Distributions from capital gains -- -- -- ---------- ---------- ---------- Total distributions 0.03 0.04 -- ---------- ---------- ---------- Net asset value, end of period $ 5.39 $ 5.21 $ 5.14 - ------------------------------------------------------------------------------------ TOTAL RETURN (1) (a) 4.09% 2.14% 5.33% ==================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------ Net assets, end of period (000 omitted) $ 62 $ 46 $ 11 - ------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------ Net expenses 2.00% 2.00% 2.00% - ------------------------------------------------------------------------------------ Net investment income (loss) 1.05% (0.47%) (1.53%) - ------------------------------------------------------------------------------------ Expenses without waivers and reimbursements 29.84%! 37.57%! 12.12%! - ------------------------------------------------------------------------------------ Net investment income (loss) without waivers and reimbursements (26.79%)! (36.04%)! (11.65%)! - ------------------------------------------------------------------------------------ PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76% - ------------------------------------------------------------------------------------ EMERGING MARKETS EQUITY FUND^^ --------------------------------------- CLASS B --------------------------------------- 11/1/02 YEAR 9/28/01** THROUGH ENDED THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 - ------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.20 $ 5.13 $ 4.88 - ------------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) 0.01^ (0.03)^ (0.01)^ Net gains or losses on securities (both realized and unrealized) 0.19 0.14 0.26 ---------- ---------- ---------- Total from investment operations 0.20 0.11 0.25 ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.03 0.04 -- Distributions from capital gains -- -- -- ---------- ---------- ---------- Total distributions 0.03 0.04 -- ---------- ---------- ---------- Net asset value, end of period $ 5.37 $ 5.20 $ 5.13 - ------------------------------------------------------------------------------------ TOTAL RETURN (1) (a) 3.79% 2.04% 5.12% ==================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------ Net assets, end of period (000 omitted) $ 39 $ 41 $ 11 - ------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------ Net expenses 2.50% 2.50% 2.50% - ------------------------------------------------------------------------------------ Net investment income (loss) 0.40% (0.34%) (2.00%) - ------------------------------------------------------------------------------------ Expenses without waivers and reimbursents 30.41%! 36.79%! 12.62%! - ------------------------------------------------------------------------------------ Net investment income (loss) without waivers and reimbursements (27.51%)! (34.63%)! (12.12%)! - ------------------------------------------------------------------------------------ PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76% - ------------------------------------------------------------------------------------ EMERGING MARKETS EQUITY FUND^^ ---------------------------------------------------------------------------------- INSTITUTIONAL ---------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH ------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.25 $ 5.14 $ 6.68 $ 7.22 $ 5.91 $ 9.86 - ------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.04^ 0.04^ 0.07^ 0.02 0.14 0.14!! Net gains or losses on securities (both realized and unrealized) 0.19 0.12 (1.60) (0.50) 1.68 (3.44)!! ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.23 0.16 (1.53) (0.48) 1.82 (3.30) ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.04 0.05 0.01 0.06 0.51 0.13 Distributions from capital gains -- -- -- -- -- 0.52 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.04 0.05 0.01 0.06 0.51 0.65 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 5.44 $ 5.25 $ 5.14 $ 6.68 $ 7.22 $ 5.91 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 4.27% 3.04% (22.98%) (6.88%) 33.76% (35.50%) =============================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 44,205 $ 47,503 $ 67,335 $ 110,711 $ 131,046 $ 120,402 - ------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.45% 1.45% 1.45% 1.45% 1.42% 1.46% - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.47% 0.83% 1.07% 0.46% 0.99% 1.43% - ------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursents 1.97% 1.77% 1.64% 1.55% 1.52% 1.54% - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.95% 0.51% 0.88% 0.36% 0.89% 1.35% - ------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76% 65% 87% 44% - -------------------------------------------------------------------------------------------------------------------------------
^^ Formerly J.P. Morgan Institutional Emerging Markets Equity Fund. ** Commencement of offering of class of shares. ^ Calculated based upon average shares outstanding. !! Based on amounts prior to Statement of Position 93-2 adjustments. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. ~ Prior to September 10, 2001, EMF invested all of its investable assets in the Emerging Markets Equity Portfolio ("EMP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of EMP. See notes to financial statements. 98
EMERGING MARKETS EQUITY FUND^^ ----------------------------------------------------------------------------- SELECT@ ----------------------------------------------------------------------------- 11/1/02 THROUGH YEAR ENDED PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - -------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.23 $ 5.13 $ 6.73 $ 7.28 $ 5.88 $ 9.20 - -------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.03^ 0.03^ 0.05^ 0.02 0.08 0.11!! Net gains or losses on securities (both realized and unrealized) 0.18a 0.12 (1.61) (0.53) 1.72 (3.35)!! ---------- ---------- ----------- ---------- ---------- ---------- Total from investment operations 0.21 0.15 (1.56) (0.51) 1.80 (3.24) ---------- ---------- ----------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.03 0.05 0.04 0.04 0.40 0.08 ---------- ---------- ----------- ---------- ---------- ---------- Net asset value, end of period $ 5.41 $ 5.23 $ 5.13 $ 6.73 $ 7.28 $ 5.88 - -------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (a) 4.06% 2.75% (23.23%) (7.12%) 33.00% (35.54%) ========================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - -------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 16,831 $ 18,660 $ 22,253 $ 34,204 $ 35,786 $ 23,387 - -------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - -------------------------------------------------------------------------------------------------------------------------- Net expenses 1.75% 1.75% 1.75% 1.75% 1.75% 1.76% - -------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.15% 0.56% 0.78% 0.15% 0.73% 1.24% - -------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 2.28% 2.04% 2.11% 1.96% 1.87% 1.82% - -------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements 0.62% 0.27% 0.42% (0.06%) 0.61% 1.18% - -------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a)~ 44% 69% 76% 65% 87% 44% - --------------------------------------------------------------------------------------------------------------------------
^^ Formerly J.P. Morgan Emerging Markets Equity Fund. @ Prior to the open of business on September 10, 2001, the class underwent a split of shares in connection with the fund reorganization. Prior periods have been restated to reflect the split. ^ Calculated based upon average shares outstanding. !! Based on amounts prior to Statement of Position 93-2 adjustments. (a) Not annualized for periods less than one year. # Short periods have been annualized. ~ Prior to September 10, 2001, EMF invested all of its investable assets in the Emerging Markets Equity Portfolio ("EMP"). The portfolio turnover rate disclosed prior to September 10, 2001 is the turnover rate of EMP. See notes to financial statements. 99
ASIA EQUITY FUND^^ ------------------------------------------------------------------------------- CLASS A CLASS B INSTITUTIONAL -------------------------- ------------------------- ----------------------- 11/1/02 11/1/01* 11/1/02 11/1/01* 11/1/02 6/28/02** THROUGH THROUGH THROUGH THROUGH THROUGH THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - ---------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 13.69 $ 15.00 $ 13.62 $ 15.00 $ 13.71 $ 15.86 - ---------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) --^(b) (0.02) (0.03)^ (0.10) 0.09^ -- Net gains or losses on securities (both realized and unrealized) (1.33) (1.29) (1.32) (1.28) (1.40) (2.15) ---------- ----------- ------------ ----------- ------------ -------- Total from investment operations (1.33) (1.31) (1.35) (1.38) (1.31) (2.15) ---------- ----------- ------------ ----------- ------------ -------- Less distributions: Dividends from net investment income -- -- -- -- -- -- ---------- ----------- ------------ ----------- ------------ -------- Net asset value, end of period $ 12.36 $ 13.69 $ 12.27 $ 13.62 $ 12.40 $ 13.71 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) (9.72%) (8.73%) (9.91%) (9.20%) (9.56%) (13.56%) ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ---------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 12 $ 2,282 $ 10 $ 454 $ 6,408 $ 6,463 - ---------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ---------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.75% 1.75% 2.25% 2.25% 1.35% 1.35% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 0.04% (0.12%) (0.43%) (0.62%) 1.35% 0.08% - ---------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers and reimbursements 4.02%! 5.16%! 4.96%! 5.91%! 2.50% 2.53% - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers and reimbursements (2.23%)! (3.53%)! (3.14%)! (4.28%)! 0.20% (1.10%) - ---------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 64% 106% 64% 106% 64% 106% - ---------------------------------------------------------------------------------------------------------------------------------- ASIA EQUITY FUND^^ --------------------------- SELECT --------------------------- 11/1/02 6/28/02** THROUGH THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 - ------------------------------------------------------------------------------ Net asset value, beginning of period $ 13.71 $ 15.86 - ------------------------------------------------------------------------------ Income from investment operations: Net investment income (loss) 0.08^ -- Net gains or losses on securities (both realized and unrealized) (1.40) (2.15) ---------- ------------ Total from investment operations (1.32) (2.15) ---------- ------------ Less distributions: Dividends from net investment income -- -- Net asset value, end of period $ 12.39 $ 13.71 - ------------------------------------------------------------------------------ TOTAL RETURN (1) (a) (9.63%) (13.56%) ============================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------ Net assets, end of period (000 omitted) $ 17,084 $ 14,043 - ------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------ Net expenses 1.50% 1.50% - ------------------------------------------------------------------------------ Net investment income (loss) 1.20% (0.03%) - ------------------------------------------------------------------------------ Expenses without waivers and reimbursements 2.55% 2.58% - ------------------------------------------------------------------------------ Net investment income (loss) without waivers and reimbursements 0.15% (1.11%) - ------------------------------------------------------------------------------ PORTFOLIO TURNOVER RATE (a) 64% 106% - ------------------------------------------------------------------------------
^^ Formerly JPMorgan Fleming Pacific Region Fund. * Commencement of operations. ** Commencement of offering of class of shares. ^ Calculated based upon average shares outstanding. (b) Amount is less than $0.01. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. See notes to financial statements. 100 JPMORGAN FUNDS Financial Highlights (unaudited) (continued)
INTERNATIONAL EQUITY FUND^^ ---------------------------------------------------------------------- CLASS A CLASS B CLASS C ------------------------- ------------------------- ---------- 11/1/02 2/28/02** 11/1/02 2/28/02** 1/31/03** THROUGH THROUGH THROUGH THROUGH THROUGH PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 - ------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.42 $ 21.81 $ 19.39 $ 21.81 $ 18.43 - ------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.16^ 0.04^ 0.06^ 0.03^ 0.06^ Net gains or losses on securities (both realized and unrealized) (0.06) (2.37) (0.01) (2.43) 0.89 ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.10 (2.33) 0.05 (2.40) 0.95 ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.07 0.06 0.07 0.02 0.01 ---------- ---------- ---------- ---------- ---------- Distributions from capital gains -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total distributions 0.07 0.06 0.07 0.02 0.01 Net asset value, end of period $ 19.45 $ 19.42 $ 19.37 $ 19.39 $ 19.37 - ------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 0.51% (10.70%) 0.27% (11.00%) 5.14% =================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 5,771 $ 91 $ 83 $ 22 $ 21 - ------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# Net expenses 1.50% 1.50% 2.00% 2.00% 2.00% - ------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 2.50% 0.50% 0.79% 0.27% 1.51% - ------------------------------------------------------------------------------------------------------------------- Expenses without waivers, reimbursements and earnings credits 14.88%! 55.25%! 15.87%! 74.45%! 12.31%! - ------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers, reimbursements and earnings credits (10.88%)! (53.25%)! (13.08%)! (72.18%)! (8.80%)! - ------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 6% 20% 6% 20% 6% - ------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND^^ ---------------------------------------------------------------------------------- SELECT CLASS @ ---------------------------------------------------------------------------------- 11/1/02 YEAR ENDED THROUGH ---------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 - ------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 19.45 $ 21.20 $ 32.00 $ 33.33 $ 27.79 $ 29.45 - ------------------------------------------------------------------------------------------------------------------------------- Income from investment operations: Net investment income (loss) 0.11^ 0.21^ 0.39 0.15 0.33 0.41 Net gains or losses on securities (both realized and unrealized) 0.02 (1.84) (6.35) 1.05 5.94 0.90 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.13 (1.63) (5.96) 1.20 6.27 1.31 ---------- ---------- ---------- ---------- ---------- ---------- Less distributions: Dividends from net investment income 0.13 0.12 0.18 0.13 0.73 1.24 Distributions from capital gains -- -- 4.66 2.40 -- 1.73 ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.13 0.12 4.84 2.53 0.73 2.97 ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 19.45 $ 19.45 $ 21.20 $ 32.00 $ 33.33 $ 27.79 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN (1) (a) 0.68% (7.74%) (21.62%) 2.71% 22.83% 4.80% =============================================================================================================================== RATIOS/SUPPLEMENTAL DATA: - ------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (000 omitted) $ 461,463 $ 247,426 $ 181,296 $ 226,248 $ 223,339 $ 220,937 - ------------------------------------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS:# - ------------------------------------------------------------------------------------------------------------------------------- Net expenses 1.10% 1.03% 1.00% 0.66% 0.06% 0.05% - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 1.35% 1.03% 0.87% 0.38% 1.14% 1.71% - ------------------------------------------------------------------------------------------------------------------------------- Expenses without waivers, reimbursements and earnings credits 1.57% 1.54% 1.54% 1.50% 1.31% 1.34% - ------------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) without waivers, reimbursements and earnings credits 0.88% 0.52% 0.33% (0.46%) (0.11%) 0.42% - ------------------------------------------------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE (a) 6% 20% 33% 149% 141% 150% - -------------------------------------------------------------------------------------------------------------------------------
^^ Formerly Chase Vista Select International Equity Fund. @ On November 20, 1998, the Fund underwent a "6 shares for 1" split of shares. Prior periods have been restated to reflect the split. ** Commencement of offering of class of shares. ^ Calculated based upon average shares outstanding. (1) Total return figures do not include the effect of any front-end or deferred sales load. (a) Not annualized for periods less than one year. # Short periods have been annualized. ! Due to the size of net assets and fixed expenses, ratios may appear disproportionate. See notes to financial statements. 101 THIS PAGE IS INTENTIONALLY LEFT BLANK JPMorgan Funds U.S. EQUITY FUNDS Capital Growth Fund Disciplined Equity Fund Disciplined Equity Value Fund Diversified Fund Dynamic Small Cap Fund Equity Growth Fund Equity Income Fund Growth and Income Fund Mid Cap Equity Fund Mid Cap Growth Fund Mid Cap Value Fund Small Cap Equity Fund Small Cap Growth Fund U.S. Equity Fund U.S. Small Company Fund U.S. Small Company Opportunities Fund Value Opportunities Fund INTERNATIONAL EQUITY FUNDS Fleming Emerging Markets Equity Fund Fleming European Fund Fleming International Equity Fund Fleming International Growth Fund Fleming International Opportunities Fund Fleming International Value Fund Fleming Japan Fund Fleming Asia Equity Fund SPECIALTY FUNDS Global 50 Fund Global Healthcare Fund Market Neutral Fund TAX AWARE FUNDS Fleming Tax Aware International Opportunities Fund Tax Aware Disciplined Equity Fund Tax Aware Enhanced Income Fund Tax Aware Large Cap Growth Fund Tax Aware Large Cap Value Fund Tax Aware Short-Intermediate Income Fund Tax Aware U.S. Equity Fund INCOME FUNDS Bond Fund Bond Fund II Enhanced Income Fund Fleming Emerging Markets Debt Fund Global Strategic Income Fund Short Term Bond Fund Short Term Bond Fund II Strategic Income Fund U.S. Treasury Income Fund TAX FREE FUNDS California Bond Fund Intermediate Tax Free Income Fund New Jersey Tax Free Income Fund New York Intermediate Tax Free Income Fund Tax Free Income Fund MONEY MARKET FUNDS 100% U.S. Treasury Securities Money Market Fund California Tax Free Money Market Fund Federal Money Market Fund Liquid Assets Money Market Fund New York Tax Free Money Market Fund Prime Money Market Fund Tax Free Money Market Fund Treasury Plus Money Market Fund U.S. Government Money Market Fund SEMI-ANNUAL REPORT (UNAUDITED) JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc., which is unaffiliated with The JPMorgan Chase Bank. JPMorgan Chase and its respective affiliates receive compensation from JPMorgan Funds for providing services to the Funds. This report is submitted for the general information of the shareholders of the funds. It is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by a prospectus. The financial information in this report has been taken from the books and records of the funds without examination by independent accountants, who express no opinion thereto. To obtain a prospectus for any of the JPMorgan Funds, call 1-800-348-4782. The prospectus contains more complete information, including charges and expenses. Please read it carefully before you invest or send money. JPMorgan Funds Fulfillment Center 393 Manley Street West Bridgewater, MA 02379-1039 (C)J.P. Morgan Chase & Co., 2003 All Rights Reserved. June 2003 SAN-INTEQ-403 ITEM 2. CODE OF ETHICS. (a) Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so. NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY 15, 2003. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) Disclose that the registrant's board of directors has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)). (3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert. NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY 15, 2003. 2 ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. (h) Disclose whether the registrant's audit committee of the board of directors has considered whether the provision of nonaudit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER DECEMBER 15, 2003. ITEMS 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. NOT APPLICABLE 3 ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER, FOLLOWING AN EVALUATION WITHIN 90 DAYS PRIOR TO THE FILING DATE OF THIS REPORT OF THE DISCLOSURE CONTROLS AND PROCEDURES AS DEFINED IN RULE 30a-2(c) UNDER THE ACT CONCLUDE AS FOLLOWS: 1. THE DISCLOSURE CONTROLS AND PROCEDURES REFLECT A CUMULATIVE PROCESS INVOLVING THE REGISTRANT'S SERVICE PROVIDERS; 2. THE CUMULATIVE PROCESS SEEKS TO ENSURE THAT THE INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT IN FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIOD SPECIFIED IN THE COMMISSION'S RULES AND FORMS AND THAT THE INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT IN THESE REPORTS IS ACCUMULATED AND COMMUNICATED TO THE REGISTRANT'S MANAGEMENT INCLUDING ITS PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER, AS APPROPRIATE TO ALLOW TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND THAT 3. THIS PROCESS IS EFFECTIVE WITH REGARDS TO ITS PURPOSE. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. THERE ARE NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES IN THE REGISTRANT'S INTERNAL CONTROLS AS OF THE DATE OF THEIR MOST RECENT EVALUATION, AND THERE HAVE BEEN NO SIGNIFICANT CHANGES IN THE REGISTRANT'S INTERNAL CONTROLS OR IN OTHER FACTORS THAT COULD SIGNIFICANTLY AFFECT THESE CONTROLS SUBSEQUENT TO THE DATE OF THEIR MOST RECENT EVALUATION. ITEM 10. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. NOT APPLICABLE. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 ARE ATTACHED HERETO. 4 SIGNATURES [See General Instruction F] Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) J.P. Morgan Mutual Fund Select Group -------------------------------------------------------------------- By (Signature and Title)* /s/ David Wezdenko ------------------------------------------------------- David Wezdenko, Treasurer Date 7/7/03 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ David Wezdenko ------------------------------------------------------- David Wezdenko, Treasurer Date 7/7/03 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ George C.W. Gatch ------------------------------------------------------- George C.W. Gatch, President Date 7/7/03 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. - -------------------------------------------------------------------------------- 5 EX-99.CERT 3 a2113457zex-99_cert.txt EXHIBIT 99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002 I, George C.W. Gatch, certify that: 1. I have reviewed this report on Form N-CSR of the JPMorgan Fleming International Equity Fund (the "Fund"), a series of J.P. Morgan Mutual Fund Select Group; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this report; 4. The Fund's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act) for the Fund and have: a) designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the Fund's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The Fund's other certifying officers and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund's ability to record, process, summarize, and report financial data and have identified for the Fund's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal controls; and 6. The Fund's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. /s/ GEORGE C.W. GATCH - -------------------------------------- George C.W. Gatch President 6/19/03 - -------------------------------------- Date CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002 I, David Wezdenko, certify that: 1. I have reviewed this report on Form N-CSR of the JPMorgan Fleming International Equity Fund (the "Fund"), a series of J.P. Morgan Mutual Fund Select Group; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements and other information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this report; 4. The Fund's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act) for the Fund and have: a) designed such disclosure controls and procedures to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the Fund's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The Fund's other certifying officers and I have disclosed, based on our most recent evaluation, to the Fund's auditors and the audit committee of the Fund's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the Fund's ability to record, process, summarize, and report financial data and have identified for the Fund's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal controls; and 6. The Fund's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. /s/ DAVID WEZDENKO - -------------------------------------- David Wezdenko Treasurer 6/18/03 - -------------------------------------- Date EX-99.906CERT 4 a2113457zex-99_906cert.txt EXHIBIT 99.906CERT CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES OXLEY ACT OF 2002 This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, and accompanies the report on Form N-CSR for the period ended April 30, 2003 of the JPMorgan Fleming International Equity Fund, a series of J.P. Morgan Mutual Fund Select Group (the "Registrant"). I, George C.W. Gatch, certify that: 1. The Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the JPMorgan Fleming International Equity Fund, a series of the Registrant. /s/ GEORGE C.W. GATCH - -------------------------------------- George C.W. Gatch President 6/19/03 - -------------------------------------- Date CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES OXLEY ACT OF 2002 This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, and accompanies the report on Form N-CSR for the period ended April 30, 2003 of the JPMorgan Fleming International Equity Fund, a series of J.P. Morgan Mutual Fund Select Group (the "Registrant"). I, David Wezdenko, certify that: 1. The Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the JPMorgan Fleming International Equity Fund, a series of the Registrant. /s/ DAVID WEZDENKO - -------------------------------------- David Wezdenko Treasurer 6/18/03 - -------------------------------------- Date -----END PRIVACY-ENHANCED MESSAGE-----