0000912057-01-537405.txt : 20011107
0000912057-01-537405.hdr.sgml : 20011107
ACCESSION NUMBER: 0000912057-01-537405
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20010831
FILED AS OF DATE: 20011102
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MUTUAL FUND TRUST
CENTRAL INDEX KEY: 0000919034
STANDARD INDUSTRIAL CLASSIFICATION: []
STATE OF INCORPORATION: MA
FISCAL YEAR END: 0831
FILING VALUES:
FORM TYPE: N-30D
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-08358
FILM NUMBER: 1773479
BUSINESS ADDRESS:
STREET 1: 1 CHASE MANHATTAN PLAZA
STREET 2: 3RD FLOOR
CITY: NEW YORK
STATE: NY
ZIP: 10081
MAIL ADDRESS:
STREET 1: ONE CHASE SQUARE 7TH FLOOR
CITY: ROCHESTER
STATE: NY
ZIP: 14643
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MUTUAL FUND SELECT TRUST
CENTRAL INDEX KEY: 0001023772
STANDARD INDUSTRIAL CLASSIFICATION: []
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: N-30D
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-07841
FILM NUMBER: 1773478
BUSINESS ADDRESS:
STREET 1: 1 CHASE MANHATTAN PLAZA
STREET 2: 3RD FLOOR
CITY: NEW YORK
STATE: NY
ZIP: 10081
BUSINESS PHONE: 7162584449
MAIL ADDRESS:
STREET 1: VISTA ADMINISTRATION
STREET 2: 1 CHASE SQ 7TH FL
CITY: ROCHESTER
STATE: NY
ZIP: 14643
N-30D
1
a2062007zn-30d.txt
N-30D
ANNUAL REPORT AUGUST 31, 2001
JPMorgan Funds
[GRAPHIC]
TAX FREE FUNDS
Tax Free Income Fund
Intermediate Tax Free Income Fund
New York Intermediate Tax Free Income Fund
New Jersey Tax Free Income Fund
California Intermediate Tax Free Fund
[JPMORGAN FLEMING ASSET MANAGEMENT LOGO]
CONTENTS
Letter to the Shareholders 1
JPMorgan Tax Free Income Fund
Fund Commentary 3
JPMorgan Intermediate Tax Free Income Fund
Fund Commentary 5
JPMorgan New York Intermediate Tax Free Income Fund
Fund Commentary 7
JPMorgan New Jersey Tax Free Income Fund
Fund Commentary 9
JPMorgan California Intermediate Tax Free Fund
Fund Commentary 11
Portfolio of Investments 13
Financial Statements 51
Notes to Financial Statements 57
HIGHLIGHTS
- U.S. economy remains weak with little sign of near-term improvement.
- Federal Reserve maintains an easing bias and continues to cut interest rates.
- U.S. companies express concern about business conditions for the rest of 2001.
NOT FDIC INSURED May lose value / No bank guarantee
JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc.
JPMORGAN TAX FREE FUNDS
LETTER TO THE SHAREHOLDERS
October 9, 2001
Dear Shareholder:
Like people everywhere, we here at JPMorgan Fleming were horrified and saddened
by the terrorist attacks on New York City and Washington, D.C. in September. We
received the terrible news while we were in the midst of preparing the August
31st shareholder reports. At this time, it is uncertain how the attacks will
affect the fixed income and equity markets but we expect to see some volatility,
at least for the short term.
Many of you are eager for the insight and analysis of our portfolio management
team. We offer some of their thinking on our website through market commentaries
for the 3rd quarter (three-month period ended September 30, 2001). To read those
commentaries, visit www.jpmorganfunds.com. Of course, we will also review the
markets in the wake of these tragedies in shareholder reports dated September
30th and later.
This annual report for the JPMorgan Tax Free Funds includes in-depth information
on some of our tax free fixed income funds, along with updates from the
portfolio management team, for the year ended August 31, 2001.
U.S. ECONOMY STRUGGLES
During the second half of 2000, the U.S. economy weakened significantly.
Consumer confidence softened, causing retail sales to decline. Manufacturing
output dropped. Also having an impact: lower corporate profits, rising labor and
energy costs, and higher debt burdens. Investors, seeking a safe haven from the
volatility in the equities market, moved some of the assets into the municipal
bond market.
Faced with the risk of a recession and the threat of inflation, the Federal
Reserve Board shifted monetary policy to an easing bias in December, only six
weeks after reaffirming its bias toward higher interest rates. Almost
immediately, it began a series of interest rate cuts. By the end of August,
the Federal funds rate stood at 3.5% -- 3 % lower than it was at the
beginning of 2001.
RENEWED INTEREST IN MUNICIPAL BONDS
In response to the Fed's more accommodative monetary policy, the municipal bond
market staged a rally during the first half of 2001. Investors also snapped up
new supply, made available by issuers who refinanced their outstanding debt at
substantially lower rates.
The U.S. economy remains fragile and leading economic indicators continue to
disappoint. The Bush tax cuts and rebates are just beginning to hit the economy
and it is unclear how much of an impact they will have. The severe slump in
manufacturing activity continues, and although inventory levels have fallen,
considerable slackness remains. Rising unemployment and job insecurity are
likely to undermine consumer spending as the year progresses, while fluctuating
food and energy prices may result in an inflationary spurt. In this environment,
municipal securities are particularly attractive to many investors.
1
FUND FAMILIES REORGANIZED
We are pleased to announce the successful reorganization of the two JPMorgan
fund families into a single fund complex with a multiple share class structure.
As a result, JPMorgan California Intermediate Tax Free Fund was acquired by J.P.
Morgan California Bond Fund at the close of business on September 7, 2001.
In these challenging times, your portfolio managers are doing an excellent job,
maintaining good performance. They will continue to focus on current income,
while trying to lock in the highest possible yields in the current falling
interest rate environment. The portfolio management team and all of us at
JPMorgan Fleming thank you for your continued investment and look forward to
serving your investment needs for many years to come.
Sincerely,
/s/ George Gatch
George Gatch
President, JPMorgan Funds
2
JPMORGAN TAX FREE INCOME FUND
AS OF AUGUST 31, 2001 (UNAUDITED)
HOW THE FUND PERFORMED
JPMorgan Tax Free Income Fund, which seeks to provide tax-exempt income through
higher-quality municipal bonds, had a total return of 10.00% (Class I shares,
without sales charges) for the year ended August 31, 2001. This compares with
10.19% for the Lehman Municipal Bond Index.
HOW THE FUND WAS MANAGED
As the period began, there was some concern by the Federal Reserve Board that
interest rate increases were contributing to a slowdown in the U.S. economy. In
December, the Fed moved to an easing stance, cut interest rates twice in
January, and by the end of the reporting period, the Fed Funds rate was 3%
lower. The 10-year Treasury rate decreased by approximately 1% and the 10-year
municipal rate (AAA-rated general obligation debt) by .60%.
Interest in municipal securities remained strong as investors sought a safe
haven from ongoing equity market volatility. Buyers chose short-term issues
causing the yield curve to steepen by nearly one percent. New issue supply
picked up dramatically in the first quarter of 2001 as many issuers chose to
refinance their outstanding debt at substantially lower rates.
At the beginning of the period, the management team maintained a long duration
position in anticipation of lower rates, which helped performance as interest
rates fell. They purchased discount coupon bonds when available, which boosted
performance in the fourth quarter of 2000. As the bond market rallied in
response to the Fed's more accomodating monetary policy during the first half of
2001, the management team shortened duration and began moving towards a more
neutral position. They also took advantage of the opportunity to upgrade the
credit quality of the portfolio as the compression in yields between bonds of
higher and lower quality persisted.
Because the management team reduced exposure to California in November in
response to what they believed to be overvalued price levels, the Fund was well
positioned to buy during the selloff in California bonds that accompanied the
electric utility deregulation crisis. Only issues of extremely high quality and
unrelated to the state's electric utility crisis were purchased as their yields
became greater than those available in the national market. By early summer,
when stability returned, these securities had appreciated between 20 and 30
basis points.
LOOKING AHEAD
Uncertainty about the economy and continued stock market volatility could
further increase municipal demand and drive up prices. The management team
expects the Fed to continue to cut short-term interest rates in light of the
ongoing economic slowdown. If the U.S. economy strengthens, they will look for
opportunities to move to a shorter duration. They also anticipate an increase in
supply towards the end of 2001 if current rate levels remain. They continue to
believe that the municipal asset class will be a strong performer on an
after-tax basis.
3
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
CLASS A SHARES
WITHOUT SALES CHARGE 9.99% 6.50% 6.76%
WITH SALES CHARGE 5.12% 5.52% 6.27%
CLASS B SHARES
WITHOUT CDSC 9.65% 6.43% 6.73%
WITH CDSC 4.65% 6.12% 6.73%
CLASS I SHARES 10.00% 6.50% 6.76%
10-YEAR PERFORMANCE (8/31/91 TO 8/31/01)
[CHART]
JPMORGAN TAX FREE LEHMAN LIPPER GENERAL
INCOME FUND (CLASS I) MUNI BOND INDEX MUNI DEBT FUNDS INDEX
--------------------- --------------- ---------------------
8/91 $10,000 $10,000 $10,000
9/91 $10,125 $10,130 $10,135
10/91 $10,248 $10,221 $10,229
11/91 $10,258 $10,250 $10,242
12/91 $10,436 $10,470 $10,487
1/92 $10,479 $10,494 $10,481
2/92 $10,488 $10,497 $10,496
3/92 $10,480 $10,502 $10,501
4/92 $10,580 $10,595 $10,600
5/92 $10,689 $10,720 $10,747
6/92 $10,885 $10,900 $10,949
7/92 $11,229 $11,227 $11,333
8/92 $11,112 $11,118 $11,152
9/92 $11,173 $11,191 $11,197
10/92 $11,040 $11,081 $11,000
11/92 $11,277 $11,279 $11,279
12/92 $11,388 $11,394 $11,421
1/93 $11,537 $11,526 $11,556
2/93 $11,898 $11,944 $12,019
3/93 $11,857 $11,817 $11,881
4/93 $11,929 $11,936 $12,007
5/93 $11,994 $12,003 $12,071
6/93 $12,141 $12,204 $12,283
7/93 $12,157 $12,220 $12,276
8/93 $12,378 $12,436 $12,552
9/93 $12,571 $12,578 $12,696
10/93 $12,575 $12,602 $12,717
11/93 $12,488 $12,491 $12,588
12/93 $12,678 $12,754 $12,840
1/94 $12,790 $12,900 $12,981
2/94 $12,549 $12,566 $12,663
3/94 $12,261 $12,054 $12,134
4/94 $12,225 $12,157 $12,174
5/94 $12,279 $12,262 $12,281
6/94 $12,236 $12,188 $12,204
7/94 $12,354 $12,411 $12,413
8/94 $12,434 $12,454 $12,453
9/94 $12,326 $12,271 $12,260
10/94 $12,153 $12,053 $12,026
11/94 $11,874 $11,834 $11,778
12/94 $12,186 $12,095 $12,064
1/95 $12,461 $12,441 $12,431
2/95 $12,748 $12,803 $12,802
3/95 $12,884 $12,950 $12,919
4/95 $12,979 $12,965 $12,919
5/95 $13,246 $13,379 $13,332
6/95 $13,164 $13,263 $13,182
7/95 $13,277 $13,389 $13,268
8/95 $13,356 $13,559 $13,419
9/95 $13,402 $13,644 $13,504
10/95 $13,607 $13,842 $13,717
11/95 $13,777 $14,072 $13,990
12/95 $13,946 $14,207 $14,151
1/96 $14,056 $14,315 $14,219
2/96 $14,056 $14,217 $14,116
3/96 $13,826 $14,035 $13,901
4/96 $13,781 $13,996 $13,842
5/96 $13,785 $13,991 $13,850
6/96 $13,901 $14,143 $13,979
7/96 $14,025 $14,270 $14,099
8/96 $14,048 $14,267 $14,092
9/96 $14,228 $14,467 $14,308
10/96 $14,392 $14,631 $14,467
11/96 $14,632 $14,898 $14,720
12/96 $14,517 $14,836 $14,658
1/97 $14,520 $14,864 $14,657
2/97 $14,635 $15,001 $14,786
3/97 $14,450 $14,801 $14,604
4/97 $14,590 $14,926 $14,729
5/97 $14,800 $15,151 $14,942
6/97 $14,940 $15,313 $15,118
7/97 $15,386 $15,737 $15,571
8/97 $15,223 $15,589 $15,394
9/97 $15,410 $15,775 $15,588
10/97 $15,505 $15,876 $15,691
11/97 $15,599 $15,969 $15,780
12/97 $15,839 $16,203 $16,036
1/98 $16,009 $16,370 $16,190
2/98 $16,002 $16,374 $16,190
3/98 $16,003 $16,389 $16,206
4/98 $15,902 $16,315 $16,107
5/98 $16,197 $16,573 $16,368
6/98 $16,243 $16,638 $16,427
7/98 $16,292 $16,679 $16,460
8/98 $16,591 $16,938 $16,717
9/98 $16,812 $17,150 $16,915
10/98 $16,760 $17,150 $16,855
11/98 $16,806 $17,210 $16,912
12/98 $16,866 $17,253 $16,942
1/99 $17,094 $17,458 $17,127
2/99 $16,981 $17,381 $17,031
3/99 $16,953 $17,406 $17,038
4/99 $17,027 $17,449 $17,086
5/99 $16,893 $17,348 $16,964
6/99 $16,599 $17,098 $16,696
7/99 $16,648 $17,160 $16,726
8/99 $16,485 $17,022 $16,527
9/99 $16,452 $17,029 $16,484
10/99 $16,260 $16,845 $16,255
11/99 $16,436 $17,024 $16,410
12/99 $16,316 $16,896 $16,254
1/00 $16,247 $16,822 $16,124
2/00 $16,445 $17,017 $16,353
3/00 $16,786 $17,388 $16,711
4/00 $16,687 $17,285 $16,595
5/00 $16,563 $17,195 $16,484
6/00 $16,989 $17,651 $16,910
7/00 $17,252 $17,896 $17,145
8/00 $17,493 $18,172 $17,414
9/00 $17,394 $18,078 $17,306
10/00 $17,576 $18,275 $17,486
11/00 $17,729 $18,413 $17,601
12/00 $18,224 $18,868 $18,055
1/01 $18,350 $19,055 $18,191
2/01 $18,447 $19,116 $18,276
3/01 $18,576 $19,288 $18,430
4/01 $18,244 $19,080 $18,172
5/01 $18,459 $19,286 $18,379
6/01 $18,614 $19,415 $18,531
7/01 $18,886 $19,702 $18,824
8/01 $19,242 $20,027 $19,163
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the
one-year period, 2% for the five-year period and 0% for the ten-year period.
Returns for Class I shares include performance of a predecessor account for the
period dating back to 8/31/91, prior to the Fund's commencement of operations on
1/1/97. Returns for Class I shares are adjusted to reflect historical expenses
at the levels indicated (absent reimbursements) in the Expense Summary as
disclosed in the prospectus at the Fund's commencement of operations. The
account was not registered with the Securities and Exchange Commission and,
therefore, was not subject to the investment restrictions imposed by law on
registered mutual funds. If it had been registered, the performance may have
been adversely affected.
Class A and B Shares were introduced on 2/16/01. Performance is based on the
historical expenses of the predecessor Class I Shares, which are lower than
the expenses for Class A and B Shares.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
The graph illustrates comparative performance of $10,000 (Class I), and assumes
reinvestment of all distributions. Performance of the unmanaged average and
index does not include sales charges, but includes reinvestment of all
distributions. The Lehman Municipal Bond Index is a broad-based index that
replicates the long-term, investment grade tax-exempt bond market. The Lipper
Index consists of funds that invest in municipal bonds. Investors cannot invest
directly in an index. Capital gains are subject to federal income tax, a portion
of the Fund's income may be subject to the Alternative Minimum Tax and some
investors may be subject to certain state and local taxes.
4
JPMORGAN INTERMEDIATE TAX FREE INCOME FUND
AS OF AUGUST 31, 2001 (UNAUDITED)
HOW THE FUND PERFORMED
JPMorgan Intermediate Tax Free Income Fund, which seeks tax-exempt income
primarily through municipal bonds, had a total return of 9.35% (Class I shares,
without sales charges) for the year ended August 31, 2001. This compares with
9.65% for the Lehman Municipal Bond 3-10 Year Blended Index and 9.05% for the
Lipper Intermediate Municipal Debt Funds Index.
HOW THE FUND WAS MANAGED
As the period began, there was some concern by the Federal Reserve that interest
rate increases were contributing to a slowdown in the U.S. economy. In December,
the Fed moved to an easing stance, cut interest rates twice in January, and by
the end of the reporting period, the Fed Funds rate was 3% lower. The 10-year
Treasury rate decreased by approximately 1% and the 10-year municipal rate
(AAA-rated general obligation debt) by .60%.
Interest in municipal securities remained strong as investors sought a safe
haven from ongoing equity market volatility. Buyers chose short-term issues
causing the yield curve to steepen by nearly one percent. New issue supply
picked up dramatically in the first quarter of 2001 as many issuers chose to
refinance their outstanding debt at substantially lower rates.
At the beginning of the period, the management team maintained a long duration
position in anticipation of lower rates, which helped performance as interest
rates fell. They purchased discount coupon bonds when available, which boosted
performance in the fourth quarter of 2000. As the bond market rallied in
response to the Fed's more accommodative monetary policy during the first half
of 2001, the management team shortened duration and began moving towards a more
neutral position. They also took advantage of the opportunity to upgrade the
credit quality of the portfolio as the compression in yields between bonds of
higher and lower quality persisted.
Because the management team reduced exposure to California in November in
response to what they believed to be overvalued price levels, the Fund was well
positioned to buy during the selloff in California bonds that accompanied the
electric utility deregulation crisis. Only issues of extremely high quality and
unrelated to the state's electric utility crisis were purchased as their yields
became greater than those available in the national market. By early summer when
stability returned, these securities had appreciated between 20 and 30 basis
points.
LOOKING AHEAD
Uncertainty about the economy and continued stock market volatility could
further increase municipal demand and drive up prices. The management team
expects the Fed to continue to cut short-term interest rates in light of the
ongoing economic slowdown. If the U.S. economy strengthens, they will look for
opportunities to move to a shorter duration. They also anticipate an increase in
supply in the third and fourth quarters of 2001 if current rate levels remain.
The team continues to believe that the municipal asset class will be a strong
performer on an after-tax basis.
5
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
CLASS I SHARES 9.35% 6.36% 6.73%
10-YEAR PERFORMANCE (8/31/91 TO 8/31/01)
[CHART]
JPMORGAN INTERMEDIATE
TAX FREE INCOME FUND LEHMAN MUNI BOND LIPPER INTERMEDIATE
(CLASS I) 3-10 YEAR BLENDED INDEX MUNI DEBT FUNDS INDEX
------------------------ ------------------------- -----------------------
8/91 $10,000 $10,000 $10,000
9/91 $10,161 $10,153 $10,112
10/91 $10,252 $10,235 $10,201
11/91 $10,277 $10,253 $10,229
12/91 $10,487 $10,471 $10,433
1/92 $10,536 $10,493 $10,461
2/92 $10,492 $10,477 $10,471
3/92 $10,481 $10,462 $10,451
4/92 $10,581 $10,561 $10,532
5/92 $10,710 $10,685 $10,647
6/92 $10,894 $10,869 $10,796
7/92 $11,293 $11,226 $11,100
8/92 $11,127 $11,093 $10,987
9/92 $11,186 $11,185 $11,053
10/92 $11,035 $11,071 $10,954
11/92 $11,294 $11,274 $11,138
12/92 $11,400 $11,405 $11,236
1/93 $11,571 $11,596 $11,365
2/93 $12,005 $12,021 $11,706
3/93 $11,819 $11,845 $11,573
4/93 $11,907 $11,958 $11,666
5/93 $11,965 $12,000 $11,705
6/93 $12,155 $12,236 $11,864
7/93 $12,159 $12,267 $11,859
8/93 $12,402 $12,521 $12,070
9/93 $12,635 $12,675 $12,208
10/93 $12,624 $12,695 $12,228
11/93 $12,524 $12,591 $12,153
12/93 $12,744 $12,859 $12,352
1/94 $12,887 $13,017 $12,479
2/94 $12,580 $12,660 $12,215
3/94 $12,295 $12,177 $11,873
4/94 $12,319 $12,330 $11,923
5/94 $12,370 $12,409 $12,017
6/94 $12,328 $12,356 $11,982
7/94 $12,449 $12,563 $12,132
8/94 $12,505 $12,612 $12,178
9/94 $12,398 $12,442 $12,053
10/94 $12,228 $12,260 $11,920
11/94 $11,945 $12,029 $11,742
12/94 $12,239 $12,245 $11,917
1/95 $12,536 $12,562 $12,149
2/95 $12,849 $12,918 $12,401
3/95 $12,963 $13,092 $12,510
4/95 $13,052 $13,108 $12,538
5/95 $13,312 $13,524 $12,833
6/95 $13,236 $13,440 $12,793
7/95 $13,382 $13,637 $12,909
8/95 $13,502 $13,823 $13,036
9/95 $13,541 $13,911 $13,101
10/95 $13,722 $14,071 $13,225
11/95 $13,865 $14,260 $13,365
12/95 $14,000 $14,347 $13,451
1/96 $14,184 $14,492 $13,556
2/96 $14,154 $14,432 $13,514
3/96 $13,902 $14,253 $13,377
4/96 $13,881 $14,203 $13,353
5/96 $13,850 $14,164 $13,353
6/96 $13,932 $14,298 $13,436
7/96 $14,095 $14,435 $13,554
8/96 $14,079 $14,435 $13,560
9/96 $14,199 $14,584 $13,683
10/96 $14,351 $14,768 $13,817
11/96 $14,605 $15,066 $14,022
12/96 $14,526 $14,998 $13,984
1/97 $14,563 $15,057 $14,019
2/97 $14,683 $15,198 $14,124
3/97 $14,511 $14,995 $13,980
4/97 $14,606 $15,106 $14,053
5/97 $14,796 $15,320 $14,218
6/97 $14,945 $15,489 $14,349
7/97 $15,305 $15,924 $14,661
8/97 $15,192 $15,769 $14,548
9/97 $15,356 $15,970 $14,702
10/97 $15,452 $16,054 $14,773
11/97 $15,519 $16,128 $14,830
12/97 $15,719 $16,383 $15,020
1/98 $15,875 $16,565 $15,146
2/98 $15,864 $16,563 $15,154
3/98 $15,874 $16,552 $15,163
4/98 $15,794 $16,461 $15,093
5/98 $16,054 $16,740 $15,295
6/98 $16,091 $16,802 $15,347
7/98 $16,143 $16,829 $15,383
8/98 $16,420 $17,122 $15,604
9/98 $16,620 $17,377 $15,773
10/98 $16,628 $17,384 $15,777
11/98 $16,648 $17,384 $15,812
12/98 $16,750 $17,438 $15,863
1/99 $16,988 $17,705 $16,040
2/99 $16,863 $17,546 $15,955
3/99 $16,837 $17,537 $15,952
4/99 $16,887 $17,584 $15,997
5/99 $16,768 $17,461 $15,902
6/99 $16,488 $17,136 $15,686
7/99 $16,619 $17,251 $15,760
8/99 $16,609 $17,187 $15,687
9/99 $16,627 $17,246 $15,697
10/99 $16,552 $17,123 $15,587
11/99 $16,681 $17,310 $15,719
12/99 $16,656 $17,220 $15,649
1/00 $16,588 $17,149 $15,580
2/00 $16,678 $17,285 $15,700
3/00 $16,871 $17,622 $15,924
4/00 $16,799 $17,534 $15,857
5/00 $16,762 $17,430 $15,792
6/00 $17,120 $17,904 $16,118
7/00 $17,333 $18,151 $16,301
8/00 $17,528 $18,433 $16,504
9/00 $17,472 $18,348 $16,456
10/00 $17,619 $18,535 $16,592
11/00 $17,697 $18,635 $16,672
12/00 $18,082 $19,073 $17,007
1/01 $18,334 $19,319 $17,203
2/01 $18,365 $19,352 $17,258
3/01 $18,514 $19,516 $17,391
4/01 $18,317 $19,276 $17,234
5/01 $18,519 $19,487 $17,412
6/01 $18,648 $19,603 $17,520
7/01 $18,867 $19,872 $17,730
8/01 $19,177 $20,212 $17,998
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Returns include performance of a predecessor account for the period dating back
to 8/31/91, prior to the Fund's commencement of operations on 1/1/97. Returns
are adjusted to reflect historical expenses at the levels indicated (absent
reimbursements) in the Expense Summary as disclosed in the prospectus at the
Fund's commencement of operations. The account was not registered with the
Securities and Exchange Commission and, therefore, was not subject to the
investment restrictions imposed by law on registered mutual funds. If it had
been registered, the performance may have been adversely affected. The Fund is
currently waiving fees. The waiver may be terminated, which would reduce
performance.
The graph illustrates comparative performance of $10,000 (Class I), and assumes
reinvestment of all distributions. Performance of the unmanaged average and
indices does not include sales charges, but includes reinvestment of all
distributions. The Lehman Municipal Bond 3-10 year Blended Index replicates the
3, 5, 7 and 10 year term investment grade tax-exempt bond market. The Lipper
Index consists of funds that invest in intermediate tax-exempt municipal bonds.
Investors cannot invest directly in an index. Capital gains are subject to
federal income tax, a portion of the Fund's income may be subject to the
Alternative Minimum Tax and some investors may be subject to certain state and
local taxes.
6
JPMORGAN NEW YORK INTERMEDIATE TAX FREE INCOME FUND
AS OF AUGUST 31, 2001 (UNAUDITED)
HOW THE FUND PERFORMED
JPMorgan New York Intermediate Tax Free Income Fund, which seeks to provide
tax-exempt income for New York residents through higher-quality, longer-term
municipal bonds, had a total return of 9.68% (Class I shares, without sales
charges) for the year ended August 31, 2001. This compares with 10.19% for the
Lehman Municipal Bond Index.
HOW THE FUND WAS MANAGED
As the period began, the Federal Reserve was still in a tightening mode,
although there was some concern that interest rate increases were contributing
to a slowdown in the U.S. economy. In December, the Fed moved to an easing
stance, then cut interest rates twice in January. By the end of the reporting
period, interest rates were three percent lower than they were at the end of
2000.
Interest in New York municipal securities remained strong as investors sought a
safe haven from ongoing equity market volatility. As the Federal Reserve
continued to ease monetary policy, buyers chose longer-term issues. Prices rose
late in the period as investors snapped up existing supply following the flood
of redemptions, maturities and coupon payments that typically occur in the
spring and summer.
As the yield curve began to flatten, the management team shortened duration and
moved to a more neutral position. They upgraded the credit quality of the
portfolio by purchasing more generic, insured issues. The team also bought
discount coupon bonds when they were available. In addition, they made selective
purchases of particularly attractive credits to take advantage of the higher
prices these issues would command when they were sold.
LOOKING AHEAD
Uncertainty about the economy and continued stock market volatility may increase
interest in municipal securities, driving up prices. If the U.S. economy
strengthens, the management team will look for opportunities to move to a
shorter duration. By the end of the period, the New York State budget had still
not been passed. When it is finally approved, the management team expects the
supply of municipals to increase as the appropriation debt is released. They
hope to purchase some of those issues at attractive levels.
7
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
CLASS A SHARES
WITHOUT SALES CHARGE 9.53% 6.34% 6.53%
WITH SALES CHARGE 4.60% 5.36% 6.04%
CLASS B SHARES
WITHOUT CDSC 9.16% 6.27% 6.49%
WITH CDSC 4.16% 5.95% 6.49%
CLASS I SHARES 9.68% 6.37% 6.54%
10-YEAR PERFORMANCE (8/31/91 TO 8/31/01)
[CHART]
JPMORGAN NEW YORK LIPPER NEW YORK
INTERMEDIATE TAX FREE LEHMAN MUNI MUNI DEBT
INCOME FUND (CLASS I) BOND INDEX FUNDS INDEX
----------------------- ------------- -----------------
8/91 $10,000 $10,000 $10,000
9/91 $10,095 $10,130 $10,162
10/91 $10,237 $10,221 $10,264
11/91 $10,252 $10,250 $10,277
12/91 $10,462 $10,470 $10,488
1/92 $10,385 $10,494 $10,426
2/92 $10,431 $10,497 $10,467
3/92 $10,460 $10,502 $10,507
4/92 $10,557 $10,595 $10,626
5/92 $10,684 $10,720 $10,785
6/92 $10,962 $10,900 $11,010
7/92 $11,354 $11,227 $11,413
8/92 $11,175 $11,118 $11,245
9/92 $11,192 $11,191 $11,283
10/92 $11,039 $11,081 $11,101
11/92 $11,274 $11,279 $11,369
12/92 $11,412 $11,394 $11,516
1/93 $11,562 $11,526 $11,661
2/93 $11,968 $11,944 $12,116
3/93 $11,868 $11,817 $11,998
4/93 $11,986 $11,936 $12,125
5/93 $12,045 $12,003 $12,209
6/93 $12,204 $12,204 $12,414
7/93 $12,201 $12,220 $12,418
8/93 $12,437 $12,436 $12,685
9/93 $12,583 $12,578 $12,827
10/93 $12,561 $12,602 $12,850
11/93 $12,500 $12,491 $12,714
12/93 $12,699 $12,754 $12,974
1/94 $12,839 $12,900 $13,113
2/94 $12,506 $12,566 $12,789
3/94 $12,157 $12,054 $12,223
4/94 $12,127 $12,157 $12,229
5/94 $12,192 $12,262 $12,346
6/94 $12,139 $12,188 $12,263
7/94 $12,308 $12,411 $12,471
8/94 $12,364 $12,454 $12,519
9/94 $12,173 $12,271 $12,286
10/94 $11,989 $12,053 $12,028
11/94 $11,688 $11,834 $11,698
12/94 $11,961 $12,095 $12,012
1/95 $12,179 $12,441 $12,352
2/95 $12,541 $12,803 $12,749
3/95 $12,653 $12,950 $12,866
4/95 $12,732 $12,965 $12,883
5/95 $13,073 $13,379 $13,316
6/95 $12,946 $13,263 $13,140
7/95 $13,076 $13,389 $13,215
8/95 $13,199 $13,559 $13,369
9/95 $13,276 $13,644 $13,443
10/95 $13,457 $13,842 $13,671
11/95 $13,674 $14,072 $13,938
12/95 $13,806 $14,207 $14,082
1/96 $13,888 $14,315 $14,142
2/96 $13,840 $14,217 $14,013
3/96 $13,630 $14,035 $13,778
4/96 $13,588 $13,996 $13,720
5/96 $13,587 $13,991 $13,722
6/96 $13,693 $14,143 $13,866
7/96 $13,862 $14,270 $13,997
8/96 $13,845 $14,267 $13,967
9/96 $13,996 $14,467 $14,193
10/96 $14,130 $14,631 $14,335
11/96 $14,370 $14,898 $14,587
12/96 $14,229 $14,836 $14,518
1/97 $14,280 $14,864 $14,513
2/97 $14,403 $15,001 $14,648
3/97 $14,244 $14,801 $14,457
4/97 $14,353 $14,926 $14,584
5/97 $14,544 $15,151 $14,800
6/97 $14,671 $15,313 $14,951
7/97 $15,047 $15,737 $15,413
8/97 $14,887 $15,589 $15,231
9/97 $15,036 $15,775 $15,408
10/97 $15,125 $15,876 $15,500
11/97 $15,211 $15,969 $15,586
12/97 $15,433 $16,203 $15,849
1/98 $15,564 $16,370 $16,000
2/98 $15,561 $16,374 $15,998
3/98 $15,563 $16,389 $16,006
4/98 $15,475 $16,315 $15,883
5/98 $15,737 $16,573 $16,166
6/98 $15,780 $16,638 $16,238
7/98 $15,846 $16,679 $16,264
8/98 $16,133 $16,938 $16,538
9/98 $16,352 $17,150 $16,744
10/98 $16,308 $17,150 $16,681
11/98 $16,328 $17,210 $16,736
12/98 $16,429 $17,253 $16,767
1/99 $16,656 $17,458 $16,952
2/99 $16,535 $17,381 $16,854
3/99 $16,511 $17,406 $16,859
4/99 $16,553 $17,449 $16,904
5/99 $16,436 $17,348 $16,762
6/99 $16,154 $17,098 $16,476
7/99 $16,267 $17,160 $16,492
8/99 $16,194 $17,022 $16,274
9/99 $16,216 $17,029 $16,216
10/99 $16,094 $16,845 $15,937
11/99 $16,250 $17,024 $16,101
12/99 $16,198 $16,896 $15,938
1/00 $16,138 $16,822 $15,814
2/00 $16,290 $17,017 $16,051
3/00 $16,518 $17,388 $16,433
4/00 $16,457 $17,285 $16,305
5/00 $16,397 $17,195 $16,196
6/00 $16,748 $17,651 $16,648
7/00 $16,956 $17,896 $16,889
8/00 $17,172 $18,172 $17,151
9/00 $17,084 $18,078 $17,039
10/00 $17,245 $18,275 $17,230
11/00 $17,355 $18,413 $17,368
12/00 $17,789 $18,868 $17,875
1/01 $18,000 $19,055 $17,997
2/01 $18,053 $19,116 $18,060
3/01 $18,190 $19,288 $18,226
4/01 $18,001 $19,080 $18,009
5/01 $18,215 $19,286 $18,211
6/01 $18,352 $19,415 $18,356
7/01 $18,539 $19,702 $18,615
8/01 $18,845 $20,027 $18,913
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the ten-year period.
Returns for Class I shares include performance of a predecessor account for the
period dating back to 8/31/91, prior to the Fund's commencement of operations on
1/1/97. Returns for Class I shares are adjusted to reflect historical expenses
at the levels indicated (absent reimbursements) in the Expense Summary as
disclosed in the prospectus at the Fund's commencement of operations. The
account was not registered with the Securities and Exchange Commission and,
therefore, was not subject to the investment restrictions imposed by law on
registered mutual funds. If it had been registered, the performance may have
been adversely affected.
Class A and B Shares were introduced on 2/16/01. Performance is based on the
historical expenses of the predecessor Class I Shares, which are lower than the
expenses for Class A and B Shares.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
The graph illustrates comparative performance of $10,000 (Class I), and assumes
reinvestment of all distributions. Performance of the unmanaged average and
index does not include sales charges, but includes reinvestment of all
distributions. Comparison of Fund performance to the Lehman New York Municipal
Bond Index is not presented as the Index lacks ten years of history. The Lehman
Municipal Bond Index is a broad-based index that replicates the long-term,
investment grade tax-exempt bond market. The Lipper Index consists of funds that
invest in New York intermediate tax-exempt municipal bonds. Investors cannot
invest directly in an index. Capital gains are subject to federal income tax, a
portion of the Fund's income may be subject to the Alternative Minimum Tax and
some investors may be subject to certain state and local taxes.
8
JPMORGAN NEW JERSEY TAX FREE INCOME FUND
AS OF AUGUST 31, 2001 (UNAUDITED)
HOW THE FUND PERFORMED
JPMorgan New Jersey Tax Free Income Fund, which seeks to provide tax-exempt
income for New Jersey residents through higher-quality municipal bonds, had a
total return of 10.69% (Class I shares, without sales charges) for the year
ended August 31, 2001. This compares with 10.19% for the Lehman Municipal Bond
Index.
HOW THE FUND WAS MANAGED
As the period began, there was some concern by the Federal Reserve that interest
rate increases were contributing to a slowdown in the U.S. economy. In December,
the Fed moved to an easing stance, cut interest rates twice in January, and by
the end of the reporting period the Fed Funds rate was 2.75% lower. The 10-year
Treasury rate decreased by approximately 1% and the 10-year municipal rate
(AAA-rated general obligation debt) by .60%.
Interest in municipal securities remained strong as investors sought a safe
haven from ongoing equity market volatility. Buyers chose short-term issues
causing the yield curve to steepen by nearly one percent. New issue supply
picked up dramatically in the first quarter of 2001 as many issuers chose to
refinance their outstanding debt at substantially lower rates.
At the beginning of the period, the management team maintained a long duration
position in anticipation of lower rates, which helped performance as interest
rates fell. They purchased discount coupon bonds when available, which boosted
performance in the fourth quarter of 2000. As the bond market rallied in
response to the Fed's more accomodating monetary policy during the first half of
2001, the management team shortened duration and began moving towards a more
neutral position. They also took advantage of the opportunity to upgrade the
credit quality of the portfolio as the compression in yields between bonds of
higher and lower quality persisted.
The management team also sold Puerto Rico bonds which were trading at high
levels in line with California issues in the latter part of 2000 (income from
Puerto Rico bonds is exempt from taxes in every state). With the proceeds, they
purchased New Jersey bonds. To further benefit from falling rates, they began
moving out of premium coupon bonds and into discount coupons given the latter's
higher interest-rate sensitivity. This focus on discount coupon bonds proved
beneficial in late 2000 and throughout the first two months of 2001. The Fund
held its long duration into 2001 and continued to take advantage of high prices
on Puerto Rico bonds by selling them and buying New Jersey bonds with 15- to
20-year maturities.
LOOKING AHEAD
Uncertainty about the economy and continued stock market volatility could
further increase municipal demand and drive up prices. The management team
expects the Fed to continue to cut short-term interest rates in light of the
ongoing economic slowdown. If the U.S. economy strengthens, they will look for
opportunities to move to a shorter duration. In fact, they believe that the
sweet spot on the yield curve will be in the 15-17 year range and plan to
continue to focus on that area. They also anticipate an increase in supply in
the third and fourth quarters of 2001 if current rate levels remain. In their
view, the municipal asset class will remain a strong performer on an after-tax
basis.
9
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
CLASS I SHARES 10.69% 6.15% 6.63%
10-YEAR PERFORMANCE (8/31/91 TO 8/31/01)
[CHART]
JPMORGAN NEW LIPPER NEW
JERSEY TAX FREE LEHMAN LEHMAN 7-YEAR JERSEY MUNI DEBT
INCOME FUND (CLASS I) MUNI BOND INDEX MUNI BOND INDEX FUNDS AVG.
--------------------- --------------- --------------- ----------------
8/91 $10,000 $10,000 $10,000 $10,000
9/91 $10,083 $10,130 $10,138 $10,116
10/91 $10,237 $10,221 $10,220 $10,201
11/91 $10,245 $10,250 $10,253 $10,213
12/91 $10,411 $10,470 $10,472 $10,429
1/92 $10,452 $10,494 $10,497 $10,435
2/92 $10,415 $10,497 $10,499 $10,455
3/92 $10,398 $10,502 $10,464 $10,449
4/92 $10,431 $10,595 $10,556 $10,533
5/92 $10,553 $10,720 $10,665 $10,697
6/92 $10,756 $10,900 $10,834 $10,874
7/92 $11,055 $11,227 $11,157 $11,248
8/92 $10,955 $11,118 $11,042 $11,092
9/92 $10,973 $11,191 $11,132 $11,127
10/92 $10,942 $11,081 $11,057 $10,916
11/92 $11,023 $11,279 $11,222 $11,206
12/92 $11,110 $11,394 $11,314 $11,350
1/93 $11,254 $11,526 $11,479 $11,485
2/93 $11,601 $11,944 $11,831 $11,931
3/93 $11,441 $11,817 $11,676 $11,782
4/93 $11,511 $11,936 $11,749 $11,917
5/93 $11,563 $12,003 $11,784 $11,998
6/93 $11,712 $12,204 $12,000 $12,212
7/93 $11,713 $12,220 $12,001 $12,220
8/93 $11,902 $12,436 $12,214 $12,489
9/93 $12,094 $12,578 $12,348 $12,628
10/93 $12,087 $12,602 $12,380 $12,636
11/93 $12,024 $12,491 $12,271 $12,501
12/93 $12,207 $12,754 $12,496 $12,761
1/94 $12,307 $12,900 $12,629 $12,899
2/94 $12,087 $12,566 $12,355 $12,545
3/94 $11,891 $12,054 $12,025 $11,981
4/94 $11,927 $12,157 $12,114 $12,029
5/94 $11,973 $12,262 $12,173 $12,122
6/94 $11,932 $12,188 $12,151 $12,044
7/94 $12,031 $12,411 $12,323 $12,260
8/94 $12,076 $12,454 $12,387 $12,311
9/94 $12,012 $12,271 $12,268 $12,109
10/94 $11,889 $12,053 $12,145 $11,868
11/94 $11,677 $11,834 $11,968 $11,600
12/94 $11,918 $12,095 $12,150 $11,916
1/95 $12,138 $12,441 $12,378 $12,263
2/95 $12,370 $12,803 $12,657 $12,586
3/95 $12,478 $12,950 $12,788 $12,696
4/95 $12,562 $12,965 $12,823 $12,705
5/95 $12,762 $13,379 $13,164 $13,093
6/95 $12,745 $13,263 $13,152 $12,958
7/95 $12,864 $13,389 $13,319 $13,039
8/95 $12,976 $13,559 $13,476 $13,176
9/95 $12,998 $13,644 $13,528 $13,258
10/95 $13,119 $13,842 $13,645 $13,453
11/95 $13,222 $14,072 $13,795 $13,687
12/95 $13,316 $14,207 $13,869 $13,829
1/96 $13,469 $14,315 $14,003 $13,903
2/96 $13,483 $14,217 $13,955 $13,787
3/96 $13,297 $14,035 $13,819 $13,576
4/96 $13,293 $13,996 $13,794 $13,525
5/96 $13,286 $13,991 $13,773 $13,540
6/96 $13,364 $14,143 $13,879 $13,667
7/96 $14,111 $14,270 $13,993 $13,798
8/96 $14,106 $14,267 $14,001 $13,786
9/96 $14,186 $14,467 $14,127 $13,961
10/96 $14,308 $14,631 $14,280 $14,102
11/96 $14,517 $14,898 $14,518 $14,336
12/96 $14,354 $14,836 $14,473 $14,276
1/97 $14,393 $14,864 $14,526 $14,284
2/97 $14,503 $15,001 $14,646 $14,400
3/97 $14,346 $14,801 $14,457 $14,229
4/97 $14,431 $14,926 $14,531 $14,345
5/97 $14,614 $15,151 $14,714 $14,529
6/97 $14,754 $15,313 $14,855 $14,664
7/97 $15,058 $15,737 $15,200 $15,069
8/97 $14,963 $15,589 $15,092 $14,915
9/97 $15,119 $15,775 $15,252 $15,088
10/97 $15,204 $15,876 $15,342 $15,171
11/97 $15,270 $15,969 $15,396 $15,254
12/97 $15,460 $16,203 $15,585 $15,480
1/98 $15,605 $16,370 $15,749 $15,621
2/98 $15,589 $16,374 $15,763 $15,612
3/98 $15,580 $16,389 $15,764 $15,618
4/98 $15,491 $16,315 $15,673 $15,530
5/98 $15,761 $16,573 $15,903 $15,774
6/98 $15,811 $16,638 $15,948 $15,834
7/98 $15,848 $16,679 $16,000 $15,858
8/98 $16,135 $16,938 $16,244 $16,109
9/98 $16,310 $17,150 $16,453 $16,302
10/98 $16,299 $17,150 $16,476 $16,266
11/98 $16,333 $17,210 $16,521 $16,316
12/98 $16,418 $17,253 $16,555 $16,343
1/99 $16,633 $17,458 $16,797 $16,519
2/99 $16,498 $17,381 $16,701 $16,420
3/99 $16,485 $17,406 $16,695 $16,428
4/99 $16,535 $17,449 $16,736 $16,468
5/99 $16,404 $17,348 $16,653 $16,354
6/99 $16,171 $17,098 $16,411 $16,091
7/99 $16,273 $17,160 $16,523 $16,129
8/99 $16,190 $17,022 $16,487 $15,920
9/99 $16,172 $17,029 $16,547 $15,864
10/99 $16,040 $16,845 $16,477 $15,613
11/99 $16,189 $17,024 $16,597 $15,777
12/99 $16,098 $16,896 $16,532 $15,597
1/00 $16,006 $16,822 $16,492 $15,471
2/00 $16,168 $17,017 $16,559 $15,663
3/00 $16,438 $17,388 $16,794 $16,006
4/00 $16,361 $17,285 $16,732 $15,894
5/00 $16,302 $17,195 $16,695 $15,776
6/00 $16,713 $17,651 $17,068 $16,199
7/00 $16,935 $17,896 $17,283 $16,437
8/00 $17,173 $18,172 $17,507 $16,682
9/00 $17,094 $18,078 $17,455 $16,572
10/00 $17,246 $18,275 $17,603 $16,734
11/00 $17,413 $18,413 $17,686 $16,840
12/00 $17,941 $18,868 $18,033 $17,293
1/01 $18,113 $19,055 $18,339 $17,422
2/01 $18,189 $19,116 $18,352 $17,509
3/01 $18,362 $19,288 $18,501 $17,658
4/01 $18,099 $19,080 $18,334 $17,452
5/01 $18,291 $19,286 $18,543 $17,626
6/01 $18,463 $19,415 $18,636 $17,785
7/01 $18,690 $19,702 $18,869 $18,043
8/01 $19,010 $20,027 $19,154 $18,326
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Returns include performance of a predecessor account for the period dating back
to 8/31/91, prior to the Fund's commencement of operations on 1/1/97. Returns
are adjusted to reflect historical expenses at the levels indicated (absent
reimbursements) in the Expense Summary as disclosed in the prospectus at the
Fund's commencement of operations. The account was not registered with the
Securities and Exchange Commission and, therefore, was not subject to the
investment restrictions imposed by law on registered mutual funds. If it had
been registered, the performance may have been adversely affected. The Fund is
currently waiving fees. The waiver may be terminated, which would reduce
performance.
The graph illustrates comparative performance of $10,000 (Class I), and assumes
reinvestment of all distributions. Performance of the unmanaged average and
indices does not include sales charges, but includes reinvestment of all
distributions. Comparison of Fund performance to the Lehman Quality Intermediate
Index is not presented as the Index lacks ten years of history. The Lehman
Municipal Bond Index is a broad-based index that replicates the long-term,
investment grade tax-exempt bond market. The Lehman 7-Year Municipal Bond Index
replicates the intermediate-term, investment grade tax-exempt bond market. The
Lipper Average consists of funds that invest in New Jersey tax-exempt municipal
bonds. Investors cannot invest directly in an index. Capital gains are subject
to federal income tax, a portion of the Fund's income may be subject to the
Alternative Minimum Tax and some investors may be subject to certain state and
local taxes.
10
JPMORGAN CALIFORNIA INTERMEDIATE TAX FREE FUND
AS OF AUGUST 31, 2001 (UNAUDITED)
HOW THE FUND PERFORMED
JPMorgan California Intermediate Tax Free Fund, which seeks to provide current
income exempt from federal and California personal income taxes, had a total
return of 8.98% (Class A shares, without sales charges) for the year ended
August 31, 2001. This compares with 8.50% for the Lehman California Intermediate
Municipal Bond Index. After the reporting period ended, on September 7, 2001,
the Fund was reorganized into the J.P. Morgan California Bond Fund.
HOW THE FUND WAS MANAGED
A change in the Federal Reserve Board's monetary policy, along with an energy
crisis, contributed to volatility in the California municipal bond market. At
the beginning of the reporting period, the Fed was still in a tightening mode,
but as the U.S. economy continued to weaken, they moved to a long duration
position in anticipation of lower interest rates.
The final four months of 2000 were noteworthy for the compression in yields
between bonds of higher and lower quality in a market with relatively little new
supply. The management team took advantage by upgrading quality. Zero coupon
bonds in the 10-15 year range had not compressed as much and, therefore, the
management team focused its new purchases in these bonds. The Fund also sold
some Puerto Rico and other territorial bonds (their income is exempt from
California state income taxes) to go back into some California issues that were
cheaper on a relative basis.
The Fund's large cash position at the beginning of 2001 helped relative
performance dramatically as the energy crunch turned into a full-scale crisis
that caused California bonds to sharply underperform issues from other states.
As California issues sold off, prices fell to relative levels not seen in many
years, prompting the management team to begin carefully moving back into
California issues. However, the Fund focused on revenue bonds whose payment of
principal and interest is not expected to be affected by the energy crisis.
The management team maintained the Fund's long duration position until late in
the period. As the yield curve began to flatten, they moved to a neutral
position. They were able to purchase issues from two major offerings, and
upgraded the portfolio's credit quality by purchasing insured issues. They also
bought attractively valued securities to take advantage of potential price
appreciation.
LOOKING AHEAD
Uncertainty about the economy and continued stock market volatility may increase
interest in municipal securities. This, in turn, may drive up bond prices. The
management team expects the Fed to continue cutting short-term interest rates.
If the U.S. economy strengthens, the management team will look for opportunities
to move to a shorter duration. They will also consider buying California revenue
bonds that have sold off during the crisis but have more secure payment streams.
In addition, they expect $8.5 billion in municipals bonds to be issued in the
market in the third quarter of 2001 and hope to purchase some of those issues at
attractive prices.
11
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS 7/16/93
------ ------- ----------
CLASS A SHARES
WITHOUT SALES CHARGE 8.98% 6.42% 5.68%
WITH SALES CHARGE 4.09% 5.45% 5.09%
LIFE OF FUND PERFORMANCE (7/16/93 TO 8/31/01)
[CHART]
JPMORGAN CALIFORNIA LEHMAN CALIFORNIA LIPPER CALIFORNIA
INTERMEDIATE TAX FREE LEHMAN INTERMEDIATE MUNI INTERMEDIATE MUNI
FUND (CLASS A) MUNI BOND INDEX BOND INDEX DEBT FUNDS AVG.
--------------------- --------------- ----------------- -----------------
7/93 $9,550 $10,000 $10,000 $10,000
7/93 $9,485 $10,013 $10,009 $10,000
8/93 $9,644 $10,190 $10,195 $10,181
9/93 $9,750 $10,306 $10,311 $10,299
10/93 $9,780 $10,326 $10,320 $10,315
11/93 $9,705 $10,235 $10,237 $10,242
12/93 $9,809 $10,451 $10,419 $10,413
1/94 $9,935 $10,570 $10,549 $10,516
2/94 $9,740 $10,296 $10,307 $10,287
3/94 $9,455 $9,877 $10,020 $10,005
4/94 $9,474 $9,961 $10,082 $10,050
5/94 $9,552 $10,048 $10,150 $10,115
6/94 $9,533 $9,987 $10,129 $10,081
7/94 $9,653 $10,169 $10,260 $10,223
8/94 $9,695 $10,205 $10,321 $10,253
9/94 $9,617 $10,055 $10,222 $10,157
10/94 $9,488 $9,876 $10,125 $10,024
11/94 $9,390 $9,697 $9,973 $9,872
12/94 $9,492 $9,911 $10,091 $9,976
1/95 $9,698 $10,194 $10,305 $10,176
2/95 $9,936 $10,491 $10,569 $10,396
3/95 $10,030 $10,611 $10,682 $10,497
4/95 $10,043 $10,624 $10,709 $10,508
5/95 $10,304 $10,963 $10,999 $10,764
6/95 $10,202 $10,868 $10,962 $10,688
7/95 $10,298 $10,971 $11,108 $10,795
8/95 $10,427 $11,110 $11,236 $10,911
9/95 $10,480 $11,180 $11,296 $10,972
10/95 $10,617 $11,342 $11,402 $11,091
11/95 $10,787 $11,531 $11,546 $11,219
12/95 $10,852 $11,641 $11,593 $11,283
1/96 $10,940 $11,730 $11,717 $11,384
2/96 $10,885 $11,650 $11,695 $11,346
3/96 $10,765 $11,501 $11,565 $11,216
4/96 $10,752 $11,469 $11,546 $11,207
5/96 $10,750 $11,464 $11,531 $11,203
6/96 $10,848 $11,589 $11,618 $11,280
7/96 $10,926 $11,693 $11,718 $11,380
8/96 $10,947 $11,691 $11,725 $11,380
9/96 $11,058 $11,855 $11,838 $11,473
10/96 $11,177 $11,989 $11,975 $11,597
11/96 $11,343 $12,208 $12,184 $11,782
12/96 $11,308 $12,157 $12,182 $11,738
1/97 $11,339 $12,180 $12,230 $11,760
2/97 $11,426 $12,292 $12,322 $11,835
3/97 $11,284 $12,128 $12,170 $11,723
4/97 $11,352 $12,230 $12,231 $11,778
5/97 $11,479 $12,415 $12,404 $11,932
6/97 $11,570 $12,548 $12,524 $12,041
7/97 $11,893 $12,895 $12,828 $12,319
8/97 $11,763 $12,774 $12,728 $12,216
9/97 $11,878 $12,926 $12,863 $12,338
10/97 $11,931 $13,009 $12,913 $12,371
11/97 $11,976 $13,086 $12,950 $12,422
12/97 $12,152 $13,277 $13,099 $12,571
1/98 $12,305 $13,414 $13,251 $12,689
2/98 $12,300 $13,418 $13,279 $12,707
3/98 $12,273 $13,430 $13,256 $12,685
4/98 $12,185 $13,369 $13,181 $12,613
5/98 $12,388 $13,580 $13,367 $12,787
6/98 $12,433 $13,633 $13,403 $12,820
7/98 $12,467 $13,667 $13,470 $12,859
8/98 $12,681 $13,879 $13,691 $13,052
9/98 $12,908 $14,053 $13,911 $13,245
10/98 $12,854 $14,053 $13,914 $13,225
11/98 $12,885 $14,102 $13,963 $13,261
12/98 $12,891 $14,137 $13,964 $13,266
1/99 $13,073 $14,305 $14,148 $13,421
2/99 $12,997 $14,243 $14,093 $13,358
3/99 $12,989 $14,262 $14,131 $13,378
4/99 $13,032 $14,298 $14,124 $13,389
5/99 $12,936 $14,215 $14,049 $13,307
6/99 $12,721 $14,010 $13,851 $13,118
7/99 $12,790 $14,061 $13,981 $13,190
8/99 $12,717 $13,948 $13,931 $13,132
9/99 $12,759 $13,954 $14,020 $13,180
10/99 $12,646 $13,803 $13,928 $13,068
11/99 $12,808 $13,950 $14,042 $13,184
12/99 $12,739 $13,845 $13,913 $13,089
1/00 $12,747 $13,784 $13,992 $13,097
2/00 $12,884 $13,944 $14,069 $13,207
3/00 $13,080 $14,248 $14,276 $13,413
4/00 $13,034 $14,164 $14,167 $13,334
5/00 $12,990 $14,090 $14,206 $13,330
6/00 $13,324 $14,464 $14,525 $13,618
7/00 $13,469 $14,665 $14,724 $13,776
8/00 $13,733 $14,891 $14,954 $13,989
9/00 $13,659 $14,813 $14,869 $13,935
10/00 $13,779 $14,975 $14,956 $14,024
11/00 $13,856 $15,088 $15,024 $14,092
12/00 $14,159 $15,461 $15,264 $14,345
1/01 $14,336 $15,614 $15,536 $14,527
2/01 $14,351 $15,664 $15,533 $14,544
3/01 $14,401 $15,805 $15,603 $14,613
4/01 $14,156 $15,634 $15,319 $14,396
5/01 $14,378 $15,803 $15,585 $14,586
6/01 $14,513 $15,909 $15,663 $14,675
7/01 $14,689 $16,145 $15,920 $14,850
8/01 $14,967 $16,411 $16,213 $15,129
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 4.50%.
The graph illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 4.50% sales charge. Performance
of the unmanaged average and indices does not include sales charges, but
includes reinvestment of all distributions. The Lehman Municipal Bond Index is a
broad-based index that replicates the long-term, investment grade tax-exempt
bond market. The Lehman California Intermediate Municipal Bond Index replicates
the California intermediate-term, investment grade tax-exempt bond market. The
Lipper Average consists of funds that invest in California intermediate-term,
investment-grade municipal bonds. Investors cannot invest directly in an index.
Capital gains are subject to federal income tax, a portion of the Fund's income
may be subject to the Alternative Minimum Tax and some investors may be subject
to certain state and local taxes.
12
JPMORGAN TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- 95.9%
ALABAMA -- 0.5%
$ 4,000 Jefferson County, Alabama, Sewer, Ser. D,
Warrants, Rev., FGIC, 5.75%, 02/01/22 $ 4,222
ARIZONA -- 0.8%
5,300 Pima County, Arizona, Unified School District No. 1,
Tucson, GO, FGIC, 7.50%, 07/01/10 6,712
ARKANSAS -- 0.6%
5,000 Arkansas State, Federal Highway Grant Anticipation,
Ser. A, GO, 5.25%, 08/01/05 5,388
CALIFORNIA -- 11.1%
2,000 California State, GO, MBIA-IBC, 6.50%, 11/01/09 2,396
1,000 California State, Ser. B, GO, 10.00%, 08/01/02 1,065
1,000 California State, Veterans Bonds, Ser. AM, GO,
9.00%, 10/01/05 1,220
21,000 California Statewide Communities Development
Authority, Sherman Oaks Project, Ser. A, Rev.,
AMBAC, 5.00%, 08/01/22 21,689
12,455 Contra Costa, California, Water District,
Improvement Bond Act of 1915, Ser. K, Rev., FSA,
4.50%, 10/01/27 11,858
10,385 Contra Costa, California, Water District,
Improvement Bond Act of 1915, Ser. K, Rev., FSA,
4.50%, 10/01/31 9,844
1,000 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., MBIA, 5.75%, 07/01/30 1,093
15,000 Los Angeles, California, Department of Water &
Power, Ser. A, Rev., 5.13%, 07/01/41 15,165
4,000 Los Angeles, California, Harbor Department, Rev., ^,
7.60%, 10/01/18 5,132
3,000 Modesto, California, Irrigation District Financing
Authority, Ser. A, Rev., MBIA, 6.00%, 10/01/15 3,312
9,930 Pomona, California, Unified School District, Ser. A,
GO, MBIA, 6.15%, 08/01/15 11,699
2,510 Riverside, California, Electric, Rev., FSA, 5.25%,
10/01/15 2,746
13,600 San Joaquin Hills, California, Transportation Corridor
Agency Toll Road, Cabs, Senior Lien, Rev., ^,
0.00%, 01/01/24 4,426
2,800 South Orange County, California, Public Financing
Authority, Special Tax, Senior Lien, Ser. A, @, MBIA,
6.20%, 09/01/13 3,044
--------
94,689
COLORADO -- 2.6%
1,190 Adams County, Colorado, School District No. 12,
GO, FGIC, 6.20%, 12/15/10 1,274
1,145 Colorado Water Resources & Power Development
Authority, Drinking Water, Ser. A, Rev., 5.25%,
09/01/11 1,253
100 Colorado Water Resources & Power Development
Authority, Drinking Water, Ser. A, Rev., 5.25%,
09/01/13 108
See notes to financial statements.
13
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
COLORADO -- CONTINUED
$ 2,000 Denver, Colorado, City & County Airport, Ser. A,
Rev., AMBAC, 6.00%, 11/15/17 $ 2,197
570 Douglas County, Colorado, Sales & Use Tax, Open
Space, Rev., FSA, 5.35%, 10/15/14 614
6,000 Garfield, Pitkin & Eagle Counties, Colorado, School
District No. Re 1 Roarge, GO, ^ , MBIA, 6.60%,
06/15/04 6,647
3,050 Platte River Power Authority, Colorado, Ser. DD,
Rev., MBIA, 6.00%, 06/01/05 3,353
4,400 Platte River Power Authority, Colorado, Ser. DD,
Rev., MBIA, 6.00%, 06/01/06 4,906
1,620 Platte River Power Authority, Colorado, Ser. DD,
Rev., MBIA, 6.00%, 06/01/07 1,824
--------
22,176
CONNECTICUT -- 4.1%
1,425 Connecticut State Housing Finance Authority,
Housing Mortgage Finance Program, Ser. C1, Rev.,
6.60%, 11/15/23 1,475
15,675 Connecticut State, Ser. B, GO, 5.00%, 06/15/06 16,881
11,375 Connecticut State, Ser. C, GO, 5.00%, 12/15/05 12,265
4,200 Mashantucket Western Pequot Tribe, Connecticut,
Special Obligation, Sub Ser. A, Rev., 5.50%,
09/01/28 4,144
--------
34,765
DELAWARE -- 0.7%
5,000 Delaware State, Economic Development Authority,
Osteopathic Hospital Association of Delaware, Ser. A,
Rev., ^, 6.90%, 01/01/18 6,130
FLORIDA -- 3.4%
2,200 Dade County, Florida, Special Obligation, Miami
Beach Convention Center Project, Special Tax, ^,
FGIC, 8.63%, 12/01/07 2,678
3,000 Florida State, Division of Bond Finance Dept.,
General Services, Department of Environmental
Protection, Preservation 2000, Ser. A, Rev., FGIC,
5.38%, 07/01/11 3,293
3,670 Greater Orlando, Florida, Aviation Authority, Airport
Facilities, Ser. A, Rev., FGIC, 6.50%, 10/01/12 3,868
3,205 Hillsborough County, Florida, Aviation Authority,
Tampa International Airport, Ser. B, Rev., FGIC,
6.00%, 10/01/18 3,723
3,800 Lakeland, Florida, Electric & Water, First Lien, Ser. B,
Rev., FSA, 6.05%, 10/01/14 4,455
3,130 Orange County, Florida, Health Facilities Authority,
Ser. A, Rev., ^, MBIA, 6.25%, 10/01/12 3,718
1,295 Orange County, Florida, Health Facilities Authority,
Ser. A, Rev., MBIA, 6.25%, 10/01/12 1,523
1,630 Orange County, Florida, Health Facilities Authority,
Ser. C, Rev., ^, MBIA, 6.25%, 10/01/12 1,936
See notes to financial statements.
14
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
FLORIDA -- CONTINUED
$ 680 Orange County, Florida, Health Facilities Authority,
Ser. C, Rev., MBIA, 6.25%, 10/01/12 $ 800
2,505 Orange County, Florida, Tourist Development, Ser. A,
GO, AMBAC, 6.50%, 10/01/10 2,656
495 Orange County, Florida, Tourist Development, Ser. A,
Rev., ^, AMBAC, 6.50%, 10/01/10 526
--------
29,176
GEORGIA -- 6.5%
5,000 Burke County, Georgia, Development Authority,
PCR, Oglethorpe Power Co., Rev., ^, MBIA, 8.00%,
01/01/03 5,493
10,000 Dalton, Georgia, Development Authority, Rev., @,
MBIA, 5.50%, 08/15/26 10,904
7,640 De Kalb County, Georgia, Housing Authority,
Apartment Development, Fox Hollow Apartments,
Rev., ^, 7.00%, 05/15/07 8,956
1,000 De Kalb County, Georgia, Water & Sewer Systems,
Rev., 5.25%, 10/01/11 1,100
7,000 Georgia Municipal Electric Authority, Power, Ser. Z,
Rev., MBIA-IBC, 5.50%, 01/01/20 7,683
15 Georgia State, Residential Finance Authority, Single
Family Mortgage, Ser. A, Rev., 8.40%, 12/01/18 15
5,000 Metropolitan Atlanta Rapid Transit Authority,
Georgia, Sales Tax, Second Indenture, Ser. A, Rev., ^,
MBIA, 6.90%, 07/01/04 5,630
10,485 Metropolitan Atlanta Rapid Transit Authority,
Georgia, Sales Tax, Ser. P, Rev., AMBAC, 6.25%,
07/01/20 12,515
3,110 Savannah, Georgia, Economic Development
Authority, College of Art & Design Inc. Project, Rev.,
6.60%, 10/01/15 3,329
--------
55,625
HAWAII -- 0.7%
5,000 Honolulu, Hawaii, City & County, Ser. A, GO,
7.35%, 07/01/08 6,052
ILLINOIS -- 1.5%
75 Chicago, Illinois, O'Hare International Airport, Ser. A,
Rev., 7.50%, 01/01/03 76
3,990 Cook County, Illinois, Community High School
District No. 219, Niles Township, GO, FGIC, 8.00%,
12/01/15 5,427
594 Illinois Health Facilities Authority, Ser. A, Rev., ^,
MBIA, 7.90%, 08/15/03 640
764 Illinois Health Facilities Authority, Ser. A, Rev.,
MBIA, 7.90%, 08/15/03 767
3,250 Illinois Housing Development Authority, Multi-Family
Housing, Ser. 1991-A, Rev., 8.25%, 07/01/16 3,323
2,425 Regional Transportation Authority, Illinois, Rev.,
MBIA, 6.25%, 07/01/15 2,875
--------
13,108
See notes to financial statements.
15
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
IOWA -- 0.6%
$ 5,000 Muscatine, Iowa, Electric, Ser. A, Rev., AMBAC, +,
5.50%, 01/01/11 $ 5,472
KANSAS -- 0.2%
1,735 Johnson County, Kansas, Water District No. 001,
Special Obligation, Rev., 5.00%, 12/01/10 1,881
KENTUCKY -- 1.1%
8,000 Louisville & Jefferson Counties, Kentucky,
Metropolitan Sewer District, Sewer & Drain System,
Ser. A, Rev., ^, AMBAC, 6.50%, 11/15/04 9,021
LOUISIANA -- 1.1%
2,000 Orleans Parish, Louisiana, School Board, Defeased,
Rev., ^, MBIA, 8.85%, 02/01/06 2,446
2,000 Orleans Parish, Louisiana, School Board, Defeased,
Rev., ^, MBIA, 8.90%, 02/01/07 2,523
4,000 Orleans Parish, Louisiana, School Board, GO, ^,
FGIC, 7.50%, 09/01/05 4,648
--------
9,617
MASSACHUSETTS -- 5.3%
3,500 Chelsea, Massachusetts, School Project Loan Act
of 1948, GO, ^, AMBAC, 6.50%, 06/15/04 3,902
2,750 Haverhill, Massachusetts, Unlimited Tax, Ser. A,
GO, ^, FGIC, 7.00%, 06/15/02 2,902
25,000 Massachusetts State, Construction Loan, Ser. C,
GO, 5.25%, 12/01/07 27,391
9,000 Massachusetts State, Port Authority, Ser. B, Rev.,
FSA, 5.50%, 07/01/13 9,636
1,000 New England Education Loan Marketing Corp.,
Massachusetts Student Loan, Sub-Issue H, Rev.,
6.90%, 11/01/09 1,130
--------
44,961
MICHIGAN -- 0.7%
5,000 Michigan State, Strategic Fund LTD, Detroit Edison
Co., Ser. CC, Rev., FRDO, AMBAC, 4.85%,
09/01/11 5,226
500 Wayne County, Michigan, Building Authority, Ser. A,
GO, ^, 8.00%, 03/01/02 523
--------
5,749
MISSISSIPPI -- 0.7%
5,500 Mississippi State, GO, 5.50%, 09/01/10 6,127
MISSOURI -- 0.2%
1,105 Sikeston, Missouri, Electric, Rev., MBIA, 6.00%,
06/01/16 1,286
NEVADA -- 0.0%
65 Nevada Housing Division, Single Family Housing,
Ser. A-3, Rev., 8.20%, 10/01/19 66
See notes to financial statements
16
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
NEW HAMPSHIRE -- 0.4%
$ 3,240 Manchester, New Hampshire, Housing &
Redevelopment Authority, Ser. A, Rev., 6.75%,
01/01/15 $ 3,663
NEW JERSEY -- 4.4%
4,000 Essex County, New Jersey, General Improvement,
GO, FGIC, 4.50%, 06/01/13 4,066
4,200 Freehold, New Jersey, Regional High School, GO,
FGIC, 5.60%, 03/01/16 4,597
3,455 Middletown Township, New Jersey, Board of
Education, GO, ^, @, MBIA, 5.80%, 08/01/07 3,878
5,215 New Jersey Economic Development Authority,
Educational Testing Service, Ser. B, Rev., ^, MBIA,
6.25%, 05/15/25 5,877
1,500 New Jersey Sports & Exposition Authority, Rev., ^,
8.30%, 01/01/03 1,610
565 New Jersey Sports & Exposition Authority, Ser. A,
Rev., ^, 6.50%, 03/01/02 588
2,905 New Jersey Sports & Exposition Authority, Ser. A,
Rev., 6.50%, 03/01/19 3,015
1,500 New Jersey State, Educational Facilities Authority,
Fairleigh Dickinson University, Ser. G, Rev., 5.70%,
07/01/28 1,447
5,000 New Jersey State, Highway Authority, Garden State
Parkway, Rev., 6.20%, 01/01/10 5,800
1,000 New Jersey State, Transportation Trust Fund
Authority, Transportation Systems, Ser. A, Rev.,
5.75%, 06/15/15 1,145
5,000 New Jersey State, Transportation Trust Fund
Authority, Transportation Systems, Ser. B, Rev.,
MBIA, 6.50%, 06/15/10 5,959
--------
37,982
NEW MEXICO -- 0.7%
5,000 Bernalillo County, New Mexico, Gross Receipts,
Tax, Ser. B, Rev., 5.70%, 04/01/27 5,655
NEW YORK -- 21.0%
410 New York City, New York, IDA, Civic Facility, Mt.
St. Vincent College, Rev., 7.00%, 05/01/08 435
3,500 New York City, New York, IDA, IDR, Brooklyn
Navy Yard Cogen Partners Project, Rev., 6.20%,
10/01/22 3,753
15,000 New York City, New York, Municipal Water Finance
Authority, Ser. E, Rev., +, 5.00%, 06/15/26 14,873
2,850 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev.,
5.75%, 06/15/30 3,057
5,215 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev.
FGIC, 5.50%, 06/15/23 5,404
2,000 New York City, New York, Ser. A, GO, 5.38%,
08/01/15 2,121
See notes to financial statements.
17
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
NEW YORK -- CONTINUED
$12,000 New York City, New York, Ser. A, GO, MBIA-IBC,
6.25%, 08/01/08 $13,642
2,450 New York City, New York, Ser. A, GO, MBIA-IBC,
6.25%, 08/01/09 2,756
4,000 New York City, New York, Ser. B, GO, MBIA,
6.50%, 08/15/10 4,793
8,000 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. C, Rev., 5.50%,
11/01/24 8,452
9,000 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. C, Rev., 5.50%,
11/01/29 9,475
5,000 New York State, Dorm Authority, City University
System, Ser. A, Rev., FSA, 5.75%, 07/01/13 5,742
1,500 New York State, Dorm Authority, Nursing Home,
Ser. A, Rev., MBIA, 5.50%, 08/01/30 1,572
2,000 New York State, Dorm Authority, Pratt Institute,
Rev., 6.00%, 07/01/28 2,189
4,500 New York State, Dorm Authority, University of
Rochester, Ser. A, Rev., ^, 6.40%, 07/01/04 5,034
6,000 New York State, Energy Research & Development
Authority, PCR, Niagara Mohawk Power Corp., Ser. A,
Rev., FGIC, 7.20%, 07/01/29 6,776
2,000 New York State, Environmental Facilities Corp.,
PCR, Ser. B, Rev., 7.10%, 09/15/11 2,028
2,650 New York State, Environmental Facilities Corp.,
PCR, Ser. D, Rev., 6.85%, 11/15/11 3,011
4,100 New York State, GO, ^, 6.30%, 09/15/02 4,344
395 New York State, Housing Finance Agency, Health
Facilities, Monroe County, Ser. A, Rev., 7.63%,
05/01/05 402
4,000 New York State, Housing Finance Agency, State
University Construction, Ser. A, Rev., ^, 7.90%,
11/01/06 4,580
2,780 New York State, Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Ser. C, Rev., ^,
6.25%, 08/15/12 3,061
2,000 New York State, Medical Care Facilities Finance
Agency, Special Obligation, Mental Health Services
Improvement Facilities, Ser. A, Rev., ^, 8.30%,
05/01/04 2,269
10,155 New York State, Mortgage Agency, Homeowner
Mortgage, Ser. 85, Rev., 5.70%, 10/01/17 10,676
5,000 New York State, Ser. F, GO, 5.25%, 09/15/10 5,463
2,500 New York State, Urban Development Corp.,
Correctional Capital Facilities, Rev., MBIA-IBC,
5.70%, 01/01/27 2,656
1,175 Niagara, New York, Frontier Transportation
Authority, Greater Buffalo International Airport, Ser. B,
Rev., AMBAC, 5.75%, 04/01/04 1,254
6,270 Port Authority of New York & New Jersey,
Consolidated Bonds 78th Ser., Rev., 6.50%,
04/15/11 6,483
See notes to financial statements.
18
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
NEW YORK -- CONTINUED
$26,000 Port Authority of New York & New Jersey,
Consolidated Bonds 93rd Ser., Rev., @, 6.13%,
06/01/94 $ 30,296
9,000 Triborough Bridge & Tunnel Authority, New York,
Convention Center Project, Ser. E, Rev., 7.25%,
01/01/10 10,507
2,000 Utica, New York, IDA, Civic Facility,
Munson-Williams-Proctor Institute Project, Ser. A,
Rev., 5.38%, 07/15/19 2,096
--------
179,200
NORTH DAKOTA -- 0.7%
5,000 Mercer County, North Dakota, PCR, Antelope
Valley Station, Rev., AMBAC, 7.20%, 06/30/13 6,189
OHIO-- 1.7%
11,000 Cleveland, Ohio, Public Power System, First
Mortgage, Ser. A, Rev., ^, @, MBIA, 7.00%, 11/15/04 12,553
2,000 Dublin, Ohio, Refunding & Public Improvement, Ser. A,
GO, 5.25%, 12/01/14 2,145
--------
14,698
OKLAHOMA -- 3.0%
4,260 Oklahoma Development Finance Authority, Samuel
Roberts Noble Foundation, Inc., Rev., 5.00%,
05/01/09 4,543
4,810 Oklahoma Development Finance Authority, Samuel
Roberts Noble Foundation, Inc., Rev., 5.50%,
05/01/11 5,225
1,960 Oklahoma Housing Finance Agency, Single Family
Housing, Ser. B-2, Rev., 6.80%, 09/01/26 2,138
7,500 Oklahoma State, Turnpike Authority, Second Ser.,
Ser. A, Rev., FGIC, 5.25%, 01/01/13 8,051
5,000 Tulsa, Oklahoma, Metropolitan Utility Authority,
Rev., MBIA, 5.75%, 09/01/19 5,272
--------
25,229
OREGON -- 2.7%
5,780 Oregon State, Higher Education Building, Ser. A,
GO, ^, 6.45%, 08/01/04 6,405
6,565 Portland, Oregon, Sewer Systems, Ser. A, Rev.,
FGIC, 5.00%, 06/01/15 6,723
3,795 Salem, Oregon, Hospital Facilities Authority, Salem
Hospital, Rev., 5.25%, 08/15/14 3,973
5,000 Washington County, Oregon, Sewer Agency, Senior
Lien, Ser. A, Rev., FGIC, 5.75%, 10/01/10 5,673
--------
22,774
See notes to financial statements.
19
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
PENNSYLVANIA -- 3.2%
$ 2,255 Allegheny County, Pennsylvania, Hospital
Development Authority, South Hills Health, Ser. B,
Rev., 6.75%, 05/01/25 $ 2,455
1,000 Allegheny County, Pennsylvania, IDA, Health Care
Facilities, Presbyterian Senior Care, Rev., 5.75%,
01/01/23 827
3,180 Carbon County, Pennsylvania, IDA, Panther Creek
Partners Project, Rev., 6.65%, 05/01/10 3,309
13,500 Delaware Valley, Pennsylvania, Regional Finance
Authority, Local Government, Ser. A, Rev., AMBAC,
5.50%, 08/01/28 14,763
2,580 Pennsylvania State, Higher Educational Facilities
Authority, Ser. T, Rev, AMBAC, 5.00%, 06/15/05 2,750
2,690 Pennsylvania State, Higher Educational Facilities
Authority, Ser. T, Rev, AMBAC, 5.00%, 06/15/06 2,886
--------
26,990
PUERTO RICO -- 5.5%
5,655 Puerto Rico Commonwealth, GO, MBIA, 6.00%,
07/01/16 6,687
5,000 Puerto Rico Commonwealth, Highway &
Transportation Authority, Ser. B, Rev., 6.00%,
07/01/39 5,614
1,500 Puerto Rico Commonwealth, Highway &
Transportation Authority, Ser. T, Rev., ^, 6.63%,
07/01/02 1,575
20,000 Puerto Rico Commonwealth, Public Finance Corp.,
Ser. A, Rev., MBIA, 5.00%, 08/01/29 20,232
60 Puerto Rico Commonwealth, Urban Renewal &
Housing Corp., Rev., 7.88%, 10/01/04 61
5,000 Puerto Rico Electric Power Authority, Ser. Y, Rev.,
MBIA, 7.00%, 07/01/07 5,954
2,500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
FSA, 6.00%, 08/01/15 2,838
3,000 Puerto Rico Public Buildings Authority, Government
Facilities, Ser. A, Rev., AMBAC, 6.25%, 07/01/11 3,585
--------
46,546
SOUTH CAROLINA -- 3.2%
6,000 Richland County, South Carolina, School District
No. 1, GO, 4.63%, 03/01/22 5,743
14,870 South Carolina State, Capital Improvement, State
Highway, Ser. B, GO, 5.00%, 04/01/11 16,031
5,000 South Carolina State, Public Service Authority, Ser. A,
Rev., AMBAC, 6.25%, 01/01/22 5,403
--------
27,177
SOUTH DAKOTA -- 0.4%
3,000 Heartland Consumers Power District, South Dakota,
Rev., ^, 7.00%, 01/01/16 3,579
100 South Dakota Housing Development Authority,
Homeownership Mortgage, Ser. A, Rev., 5.88%,
05/01/12 104
--------
3,683
See notes to financial statements.
20
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
TENNESSEE -- 0.7%
$ 3,000 Knox County, Tennessee, Health, Educational &
Housing Facilities Board, University Health Systems
Inc., Rev., 5.63%, 04/01/29 $ 2,989
3,000 Metropolitan Government of Nashville & Davidson
Counties, Tennessee, Water & Sewer, Rev., FGIC,
5.20%, 01/01/13 3,254
--------
6,243
TEXAS -- 4.9%
6,500 Austin, Texas, Utility System, Rev., MBIA-IBC,
6.00%, 11/15/13 7,567
2,115 Dallas-Fort Worth, Texas, Regional Airport, Ser. A,
FGIC, 7.38%, 11/01/08 2,373
2,945 Dallas-Fort Worth, Texas, Regional Airport, Ser. A,
FGIC, 7.38%, 11/01/09 3,304
2,000 Dallas-Fort Worth, Texas, Regional Airport, Ser. A,
FGIC, 7.38%, 11/01/11 2,241
2,500 Houston, Texas, Water Conveyance System, Ser. F,
COP, AMBAC, 7.20%, 12/15/05 2,877
2,000 Houston, Texas, Water Conveyance System, Ser. F,
COP, AMBAC, 7.20%, 12/15/06 2,343
5,000 Plano, Texas, Independent School District, GO,
5.25%, 02/15/15 5,270
14,540 Texas State, Public Finance Authority, Ser. A, GO,
5.25%, 10/01/11 15,897
--------
41,872
UTAH -- 0.1%
1,000 Sevier County, Utah, Sevier School District, GO, ^,
MBIA, 9.20%, 05/01/03 1,105
WASHINGTON-- 0.9%
7,000 Energy Northwest of Washington, Electric, Ser. B,
Rev., MBIA, 5.50%, 07/01/18 7,558
250 Washington State, Public Power Supply System,
Nuclear Project No. 1, Ser. B, Rev., 7.25%,
07/01/09 292
--------
7,850
--------
Total Long-Term Municipal Securities $819,079
(Cost $765,376)
--------
See notes to financial statements.
21
As of August 31, 2001
(Amounts in thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
SHORT-TERM INVESTMENTS -- 4.1%
MUNICIPAL SECURITIES -- 1.9%
ALABAMA -- 0.4%
$ 2,000 Stevenson, Alabama, Industrial Development Board,
Environmental Improvement, Mead Corp. Project,
Rev., FRDO, 2.60%, 09/04/01 $ 2,000
1,000 Stevenson, Alabama, Industrial Development Board,
Environmental Improvement, Mead Corp. Project,
Ser. B, Rev., FRDO, 2.60%, 09/04/01 1,000
--------
3,000
CALIFORNIA -- 0.0%
100 California PCFA, PCR, OMS Equity Stanislaus
Project, Resource Recovery, Rev., FRDO, 2.40%,
09/04/01 100
100 Irvine Ranch, California, Water District,
Consolidated Bonds, Rev., FRDO, 2.35%, 09/04/01 100
--------
200
MULTIPLE STATES -- 1.4%
11,700 Puttable Floating Option Tax-Exempt Receipts,
Ser. PPT-34, 2.62%, 09/07/01 11,700
NEW JERSEY -- 0.1%
1,000 New Jersey Economic Development Authority, El
Dorado Terminals, Ser. B, Rev., FRDO, 2.25%,
09/04/01 1,000
--------
Total Municipal Securities 15,900
(Cost $15,900)
--------
SHARES
MONEY MARKET FUNDS-- 2.2%
9,102 Provident Municipal Cash Money Market Fund 9,102
9,912 Provident Municipal Money Market Fund 9,912
--------
Total Money Market Funds 19,014
(Cost $19,014)
--------
Total Short-Term Investments 34,914
(Cost $34,914)
--------
Total Investments -- 100.0% $853,993
(Cost $800,290)
--------
See notes to financial statements.
22
JPMorgan INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES -- 96.2%
----------------------------------------------------------------------------------
ALABAMA -- 1.4%
$8,485 Alabama State, Public School & College Authority,
Capital Improvement, Ser. D, Rev., 5.25%, 08/01/05 $ 9,130
1,000 Shelby County, Alabama, Board of Education,
Capital Outlay School Warrants, AMBAC, 5.70%,
02/01/09 1,074
--------
10,204
CALIFORNIA -- 4.4%
3,000 Alameda County, California, Ser. A, COP, MBIA
5.38%, 12/01/12 3,394
3,500 Alameda County, California, Ser. A, COP, MBIA,
5.38%, 12/01/13 3,943
5,000 Los Angeles County, California, Public Works
Financing Authority, Regional Park & Open Space
District, Ser. A, Rev., ^, @, MBIA-IBC, 6.00%, 10/01/04 5,602
5,000 Los Angeles, California, Department of Water &
Power, Power Systems, Ser. A-A-1, Rev., 5.25%,
07/01/04 5,352
9,315 Los Angeles, California, Ser. A, GO, 5.00%, 09/01/1210,133
4,060 Riverside, California, Electric, Rev., FSA, 5.25%, 10/01/13 4,512
--------
32,936
COLORADO -- 0.4%
3,000 Eagle, Garfield & Routt Counties, Colorado, School
District No. 50-J, GO, ^, FGIC, 6.13%, 12/01/04 3,353
CONNECTICUT -- 0.7%
4,735 Connecticut State, Special Tax Obligation,
Transportation Infrastructure, Ser. A, Rev., FGIC,
5.40%, 06/01/09 5,047
DELAWARE -- 0.4%
3,000 Delaware Transportation Authority, Transportation
System, Rev., AMBAC, 6.00%, 07/01/05 3,304
FLORIDA -- 1.8%
4,775 Broward County, Florida, Resource Recovery,
Wheelabrator South Broward, Rev., 5.00%, 12/01/07 5,023
2,000 Dade County, Florida, Aviation, Ser. B, Rev., AMBAC,
6.40%, 10/01/06 2,231
1,495 Florida State, Board of Education, Capital Outlay,
Public Education, Ser. B, GO, 5.25%, 06/01/12 1,635
2,000 Florida State, Department of Corrections,
Okeechobee Correctional, COP, AMBAC, 6.00%,
03/01/08 2,182
2,350 Miami-Dade County, Florida, Aviation, Ser. A, Rev.,
FGIC, 5.25%, 10/01/07 2,533
--------
13,604
GEORGIA -- 1.0%
1,720 Forsyth County, Georgia, School District, GO, 5.00%,
07/01/12 1,856
5,000 Georgia Municipal Electric Authority, Ser. DD, Rev.,
@, MBIA-IBC, 7.00%, 01/01/08 5,896
--------
7,752
See notes to financial statements.
23
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
HAWAII -- 0.3%
$ 2,000 Honolulu, Hawaii, City & County, Ser. A, GO, 7.35%,
07/01/06 $ 2,344
ILLINOIS -- 12.1%
1,500 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago, Capital Improvement
Bonds, GO, ^, 7.00%, 01/01/08 1,766
10,000 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago, Capital Improvement, GO,
5.50%, 12/01/12 11,175
5,000 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago, GO, 5.50%, 12/01/08 5,541
10,025 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago, GO, 5.50%, 12/01/09 11,139
7,200 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago, GO, 5.95%, 12/01/07 8,139
6,055 Chicago, Illinois, O'Hare International Airport,
Passenger Facilities Charge, Ser. A, Rev., AMBAC,
5.38%, 01/01/07 6,551
1,245 Chicago, Illinois, Park District, Harbor Facilities,
Rev., 5.38%, 01/01/06 1,338
1,810 Illinois State, 1st Ser., GO, 5.25%, 08/01/05 1,944
2,565 Illinois State, 1st Ser., GO, 5.50%, 08/01/06 2,804
4,000 Illinois State, 1st Ser., GO, 5.50%, 08/01/07 4,395
1,320 Illinois State, GO, 5.50%, 08/01/06 1,419
10,000 Illinois State, GO, FSA, 5.50%, 04/01/10 10,925
2,000 Illinois State, GO, MBIA, 5.25%, 06/01/10 2,159
1,000 Regional Transportation Authority, Illinois, Ser. B,
Rev., AMBAC, 6.40%, 06/01/12 1,189
8,120 Springfield, Illinois, Electric, Senior Lien, Rev., +,
MBIA, 5.50%, 03/01/10 8,935
9,620 Springfield, Illinois, Electric, Senior Lien, Rev., +,
MBIA, 5.50%, 03/01/11 10,631
--------
90,050
INDIANA -- 2.6%
2,600 Indiana Municipal Power Agency, Power Supply
Systems, Ser. B, Rev., MBIA, 5.63%, 01/01/05 2,795
5,500 Indiana Municipal Power Agency, Power Supply
Systems, Ser. B, Rev., MBIA, 5.80%, 01/01/08 6,104
2,485 Indiana State, Office Building Commission
Facilities, Ser. A, Rev., 5.00%, 07/01/04 2,617
7,315 Indianapolis, Indiana, Gas Utility, Distribution
Systems, Ser. A, Rev., AMBAC, 5.75%, 08/15/08 8,165
--------
19,681
IOWA -- 0.7%
5,000 Muscatine, Iowa, Electric, Ser. A, Rev., +, AMBAC,
5.50%, 01/01/09 5,450
KANSAS -- 0.3%
1,860 Johnson County, Kansas, Unified School District
No. 233, Ser. B, GO, FGIC, 5.50%, 09/01/15 2,076
See notes to financial statements.
24
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
KENTUCKY -- 0.0%
$ 275 Owensboro, Kentucky, Electric Light & Power, Rev., ^,
10.50%, 01/01/04 $ 291
LOUISIANA -- 0.5%
3,500 Lake Charles, Louisiana, Harbor & Terminal District,
Reynolds Metals Co. Project, Rev., 5.50%, 05/01/06 3,593
MARYLAND -- 4.2%
3,335 Maryland State, Stadium Authority, Convention Center
Expansion, Rev., AMBAC, 5.75%, 12/15/08 3,607
3,535 Maryland State, Stadium Authority, Convention Center
Expansion, Rev., AMBAC, 5.80%, 12/15/09 3,813
15,640 Maryland State, State & Local Facilities Loan, Third
Ser., GO, 5.80%, 10/15/08 16,853
6,500 Maryland State, Transportation Authority,
Transportation Facilities Project, Special Obligation,
Rev., 5.80%, 07/01/06 7,226
--------
31,499
MASSACHUSETTS -- 5.2%
5,000 Chelsea, Massachusetts, School Project Loan Act of
1948, GO, ^, AMBAC, 5.90%, 06/15/04 5,494
2,045 Massachusetts Bay, Transportation Authority,
General Transportation Systems, Ser. A, Rev., MBIA,
5.50%, 03/01/14 2,282
8,055 Massachusetts State, Construction Loan, Ser. C, GO,
5.00%, 12/01/06 8,702
3,000 Massachusetts State, Housing Finance Agency,
Residential Development, Ser. C, Rev., 6.45%,
05/15/04 3,120
10,000 Massachusetts State, Turnpike Authority, Ser. A,
Rev., ^, 5.00%, 01/01/13 10,715
2,000 Massachusetts State, Water Resources Authority,
Ser. A, Rev., FSA, 5.50%, 08/01/13 2,240
3,000 Massachusetts State, Water Resources Authority,
Ser. C, Rev., FGIC, 5.25%, 12/01/15 3,271
1,980 Southeastern Massachusetts, University Building
Authority Project, Ser. A, Rev., AMBAC, 5.90%,
05/01/09 2,151
1,000 Southeastern Massachusetts, University Building
Authority Project, Ser. A, Rev., AMBAC, 5.90%,
05/01/10 1,083
--------
39,058
MICHIGAN -- 4.4%
2,030 Michigan State, Environmental Protection Program,
GO, 5.50%, 11/01/04 2,187
10,750 Michigan State, Trunk Line, Ser. A, Rev., 5.25%,
11/01/13 11,742
3,565 Michigan State, Underground Storage Tank Financial
Assurance Authority, Ser. I, Rev., AMBAC, 5.75%,
05/01/10 3,854
10,000 Wayne Charter County, Michigan, Airport, Ser. A,
Rev., MBIA, 5.25%, 12/01/06 10,772
See notes to financial statements.
25
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
MICHIGAN -- CONTINUED
$ 3,780 Wayne Charter County, Michigan, Airport, Ser. A,
Rev., MBIA, 5.50%, 12/01/07 $ 4,130
--------
32,685
MINNESOTA -- 0.5%
3,000 University of Minnesota, Ser. A, Rev., 5.75%, 07/01/153,416
MISSISSIPPI -- 0.9%
4,000 Mississippi State, Capital Improvements Issue,
Ser. I, GO, 5.50%, 11/01/06 4,405
2,000 Mississippi State, GO, 5.75%, 12/01/12 2,291
--------
6,696
MISSOURI -- 0.2%
1,105 Missouri State, Environmental Improvement & Energy
Resources Authority, State Revolving Funds Program,
Ser. B, Rev., 5.50%, 07/01/12 1,238
NEBRASKA -- 0.4%
2,635 American Public Energy Agency, Nebraska, Gas
Supply, Public Gas Agency Project, Ser. A, Rev.,
AMBAC, 5.25%, 06/01/11 2,781
NEVADA -- 2.1%
2,415 Henderson, Nevada, Water & Sewer, Ser. A, GO,
FGIC, 5.50%, 09/01/08 2,661
1,000 Nevada State, GO, 6.75%, 07/01/03 1,003
1,000 Nevada State, Municipal Bond Bank, Project
No.20-23-A, GO, ^, 7.20%, 07/01/02 1,013
5,390 Nevada State, Ser. A, GO, 5.00%, 07/01/10 5,742
5,000 Nevada State, Ser. A, GO, 5.60%, 07/15/06 5,345
--------
15,764
NEW JERSEY -- 8.0%
3,245 Elizabeth, New Jersey, GO, AMBAC, 6.25%,
08/15/08 3,602
10,000 New Jersey Building Authority, State Building, Rev.,
5.75%, 06/15/09 11,159
955 New Jersey Economic Development Authority, Market
Transition Facility, Senior Lien, Ser. A, Rev., MBIA,
5.80%, 07/01/08 1,042
8,800 New Jersey Economic Development Authority, Market
Transition Facility, Senior Lien, Ser. A, Rev., MBIA,
5.80%, 07/01/09 9,603
7,000 New Jersey State, Transportation Trust Fund
Authority, Ser. B, Rev., MBIA, 5.50%, 06/15/09 7,537
3,660 New Jersey State, Transportation Trust Fund
Authority, Transportation Systems, Ser. A, Rev.,
5.75%, 06/15/15 4,191
3,880 New Jersey State, Turnpike Authority, Rev., ^,
5.70%, 05/01/13 4,282
400 New Jersey State, Turnpike Authority, Rev., ^,
10.38%, 01/01/03 426
See notes to financial statements.
26
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
NEW JERSEY -- CONTINUED
$ 3,895 New Jersey State, Turnpike Authority, Ser. G,
Rev., ^, 5.75%, 01/01/09 $ 4,281
2,910 New Jersey Wastewater Treatment Trust, Ser. A,
Rev., MBIA, 7.00%, 05/15/08 3,472
3,120 New Jersey Wastewater Treatment Trust, Ser. A,
Rev., MBIA, 7.00%, 05/15/09 3,774
5,520 New Jersey Wastewater Treatment Trust, Ser. C,
Rev., 6.88%, 06/15/07 6,479
--------
59,848
NEW MEXICO -- 0.3%
2,075 Gallup, New Mexico, PCR, Plains Electric
Generation, Rev., MBIA, 6.40%, 08/15/05 2,173
NEW YORK -- 7.8%
5,000 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev., FSA, 5.50%, 12/01/12 5,635
1,500 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev., FSA, 5.50%, 12/01/13 1,691
110 New York State, Dorm Authority, Pooled Capital
Program, Rev., ^, FGIC, 7.80%, 12/01/05 112
770 New York State, Dorm Authority, St. John's University,
Rev., AMBAC, 6.70%, 07/01/04 788
4,025 New York State, Dorm Authority, State University
Educational Facilities, Ser. A, Rev., FGIC, 5.50%,
05/15/13 4,536
1,500 New York State, Dorm Authority, State University
Educational Facilities, Ser. A, Rev., FSA, 5.50%,
05/15/13 1,694
1,200 New York State, Environmental Facilities Corp., PCR,
State Water Revolving Fund, Ser. D, Rev., 6.55%,
03/15/08 1,228
4,915 New York State, Housing Finance Agency, Housing
Project Mortgage, Ser. A, Rev., FSA, 5.40%, 11/01/05 5,248
75 New York State, Medical Care Facilities, Finance
Agency, Rev., ^, MBIA, 7.38%, 08/15/03 75
5,000 New York State, Ser. B, GO, 5.70%, 08/15/10 5,471
4,000 New York State, Thruway Authority, Highway & Bridge
Trust Fund, Ser. A, Rev., FGIC, 5.25%, 04/01/10 4,412
3,385 New York State, Thruway Authority, Highway & Bridge
Trust Fund, Ser. A, Rev., FGIC, 5.50%, 04/01/12 3,820
700 New York State, Thruway Authority, Highway & Bridge
Trust Fund, Ser. B, Rev., ^, FGIC, 6.00%, 04/01/04 771
5,000 New York State, Thruway Authority, Service Contract,
Local Highway & Bridge, Rev., 5.10%, 04/01/08 5,433
10,000 New York State, Thruway Authority, Service Contract,
Local Highway & Bridge, Rev., 5.20%, 04/01/09 10,876
3,910 Port Authority of New York & New Jersey,
Consolidated Bonds 112th Ser., Rev., 5.00%,
12/01/05 4,186
1,500 Suffolk County, New York, IDA, IDR, Nissequogue
Cogen Partners Facility, Rev., 4.88%, 01/01/08 1,505
See notes to financial statements.
27
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
NEW YORK -- CONTINUED
$ 990 Westchester County, New York, IDA, Resource
Recovery, Resco Co. Project, Ser. A, Rev., AMBAC,
5.60%, 07/01/07 $ 1,066
--------
58,547
NORTH CAROLINA -- 0.6%
2,000 Cabarrus County, North Carolina, Installment
Financing Contract, COP, 5.75%, 04/01/11 2,251
2,000 Cabarrus County, North Carolina, Installment
Financing Contract, COP, 5.75%, 04/01/12 2,259
--------
4,510
OHIO -- 2.2%
4,000 Montgomery County, Ohio, Solid Waste, Rev., MBIA,
5.50%, 11/01/10 4,302
1,000 Ohio State University, General Receipts, Ser. A, Rev.,
5.75%, 12/01/13 1,119
1,000 Ohio State University, General Receipts, Ser. A, Rev.,
5.75%, 12/01/14 1,111
3,360 Ohio State, Building Authority, State Facilities, Adult
Correctional, Ser. A, Rev., ^, MBIA, 5.75%, 10/01/04 3,669
6,000 Ohio State, Turnpike Commission, Ser. A, Rev., ^,
MBIA, 5.40%, 02/15/06 6,614
--------
16,815
OKLAHOMA -- 0.7%
5,000 Oklahoma Development Finance Authority, Samuel
Roberts Noble Foundation, Inc., Rev., 5.00%,
05/01/09 5,332
OREGON -- 1.3%
5,300 Oregon State, State Board of Higher Education,
Ser. A, GO, ^, 6.00%, 08/01/06 6,029
3,000 Washington County, Oregon, School District No. 3,
Hillsboro, GO, ^, MBIA, 6.00%, 11/01/05 3,337
--------
9,366
PENNSYLVANIA -- 1.0%
2,990 Carbon County, Pennsylvania, IDA, Panther Creek
Partners Project, Rev., 6.65%, 05/01/10 3,111
2,000 Pennsylvania State, Second Ser., GO, 5.00%,
08/01/09 2,154
1,750 Pennsylvania State, Turnpike Commission, Ser. T,
Rev., +, FGIC, 5.00%, 12/01/04 1,861
--------
7,126
PUERTO RICO -- 2.4%
10,000 Puerto Rico Commonwealth, GO, MBIA-IBC, 5.50%,
07/01/08 11,207
5,500 Puerto Rico Commonwealth, GO, MBIA-IBC, 5.50%,
07/01/09 6,188
845 Puerto Rico Industrial, Medical & Environmental
PCFFA, Renasa Inc., Squibb Corp. Project, Rev.,
6.50%, 07/01/04 848
--------
18,243
See notes to financial statements.
28
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
SOUTH CAROLINA -- 0.6%
$ 3,885 Charleston, South Carolina, Waterworks & Sewer,
Capital Improvement, Rev., 5.13%, 01/01/11 $ 4,200
TENNESSEE -- 0.9%
5,335 Tennergy Corp., Tennessee, Gas, Rev., MBIA,
5.00%, 06/01/09 5,522
1,000 Tennessee State, Ser. A, GO, 5.00%, 05/01/13 1,068
--------
6,590
TEXAS -- 8.8%
2,000 Austin, Texas, Independent School District, Public
Property Finance Contractual Obligation, GO, MBIA,
5.25%, 02/01/08 2,164
5,255 Austin, Texas, Utility Systems, Rev., MBIA-IBC,
5.80%, 11/15/06 5,846
6,200 Dallas, Texas, Civic Center, Improvement, Rev.,
MBIA, 5.25%, 08/15/07 6,737
4,845 Dallas, Texas, GO, 5.00%, 02/15/09 5,200
6,220 Harris County, Texas, GO, 5.88%, 10/01/07 6,979
8,675 Houston, Texas, Ser. A, GO, 5.50%, 03/01/08 9,512
4,975 Houston, Texas, Water & Sewer Systems, Ser. B,
Rev., MBIA-IBC, 6.40%, 12/01/09 5,293
1,520 Katy, Texas, Independent School District, Ser. A,
GO, 5.00%, 02/15/11 1,621
7,500 Texas State, Ser. A, GO, @, 6.00%, 10/01/09 8,572
1,320 Texas Water Development Board, State Revolving
Fund, Senior Lien, Rev., 6.20%, 07/15/05 1,386
4,700 Texas Water Development Board, State Revolving
Fund, Senior Lien, Ser. A, Rev., 5.00%, 07/15/07 5,048
3,000 Texas Water Development Board, State Revolving
Fund, Senior Lien, Ser. A, Rev., 5.25%, 07/15/09 3,238
1,000 Texas Water Development Board, State Revolving
Fund, Senior Lien, Ser. A, Rev., 5.63%, 07/15/11 1,102
3,175 Texas Water Development Board, State Revolving
Fund, Senior Lien, Ser. B, Rev., 5.25%, 07/15/08 3,446
--------
66,144
UTAH -- 1.6%
3,800 Intermountain Power Agency, Utah, Power Supply,
Ser. B, Rev., MBIA, 6.50%, 07/01/10 4,476
2,850 Salt Lake City, Utah, GO, 5.50%, 06/15/11 3,155
3,915 Utah State, Building Ownership Authority, State
Facilities Master Lease Program, Ser. C, Rev., FSA,
5.50%, 05/15/08 4,298
--------
11,929
VERMONT -- 1.7%
4,100 Burlington, Vermont, Electric, Ser. A, Rev., MBIA,
6.38%, 07/01/09 4,779
3,510 Vermont State, Ser. A, GO, ^, 6.40%, 01/15/05 3,938
3,510 Vermont State, Ser. A, GO, ^, 6.50%, 01/15/05 3,949
--------
12,666
See notes to financial statements.
29
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
----------------------------------------------------------------------------------
VIRGIN ISLANDS -- 1.5%
$ 2,500 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 5.63%,
10/01/10 $ 2,701
5,000 Virgin Islands Public Finance Authority, Senior Lien,
Fund Lien Notes, Ser. C, Rev., 5.50%, 10/01/06 5,337
3,070 Virgin Islands Water & Power Authority, Electric
Systems, Rev., 5.25%, 07/01/07 3,233
--------
11,271
VIRGINIA -- 4.9%
5,515 Chesapeake Bay Bridge & Tunnel Commission,
Virginia, General Resolution, Rev., FGIC, 5.75%,
07/01/08 6,015
20,955 Fairfax County, Virginia, Public Improvement, Ser. A,
GO, 4.50%, 06/01/04 21,869
3,135 Virginia Commonwealth, Transportation Board,
Federal Highway Reimbursement Anticipation Notes,
Rev., 5.50%, 10/01/06 3,458
5,000 Virginia State, Public School Authority, School
Financing, Ser. A, Rev., 5.00%, 08/01/11 5,337
--------
36,679
WASHINGTON -- 2.2%
10,000 Energy Northwest of Washington, Electric, Ser. B,
Rev., MBIA, 5.50%, 07/01/18 10,797
5,000 Washington State, Ser. B, GO, 5.00%, 01/01/07 5,334
--------
16,131
WISCONSIN -- 5.2%
3,025 Milwaukee County, Wisconsin, Corporate Purpose,
Ser. A, GO, 5.38%, 09/01/05 3,274
2,350 Milwaukee County, Wisconsin, Corporate Purpose,
Ser. A, GO, 5.63%, 09/01/10 2,609
5,000 Wisconsin State, Clean Water, Ser. 2, Rev., 5.50%,
06/01/11 5,579
6,000 Wisconsin State, GO, 6.20%, 05/01/06 6,725
1,000 Wisconsin State, GO, 6.25%, 05/01/12 1,179
2,775 Wisconsin State, Ser. 1, GO, 5.00%, 11/01/07 2,991
6,275 Wisconsin State, Ser. 1, GO, 5.50%, 11/01/11 7,016
4,450 Wisconsin State, Ser. 3, GO, 5.20%, 11/01/09 4,851
4,040 Wisconsin State, Transportation, Ser. A, Rev.,
5.00%, 07/01/05 4,302
--------
38,526
----------------------------------------------------------------------------------
Total Long-Term Municipal Securities
(Cost $677,038) 718,918
----------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 3.8%
----------------------------------------------------------------------------------
Municipal Securities -- 0.2%
----------------------------
CALIFORNIA -- 0.2%
100 California PCFA, PCR, OMS Equity Stanislaus
Project, Resource Recovery, Rev., FRDO, 2.40%,
09/04/01 100
200 Irvine Ranch, California, Water District, Capital
Improvement Project, COP, FRDO, 2.30%, 09/04/01 200
See notes to financial statements.
30
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- CONTINUED
----------------------------------------------------------------------------------
CALIFORNIA -- CONTINUED
$ 1,000 Irvine Ranch, California, Water District, District
No. 102, 103, 105 & 106, GO, FRDO, 2.30%, 09/04/01 $ 1,000
100 Irvine Ranch, California, Water District, District
No. 105, 140, 240 & 250, GO, FRDO, 2.30%, 09/04/01 100
100 Irvine Ranch, California, Water District, District
No. 182, Ser. A, GO, FRDO, 2.30%, 09/04/01 100
100 Los Angeles, California, Regional Airports
Improvement Corp., Los Angeles International
Airport Terminal Facility, Rev., FRDO, 2.55%, 09/04/01 100
--------
1,600
NEW YORK -- 0.0%
100 Port Authority of New York & New Jersey, Special
Obligation, Versatile Structure Obligation, Ser. 6,
Rev., FRDO, 2.60%, 09/04/01 100
----------------------------------------------------------------------------------
Total Municipal Securities
(Cost $1,700) 1,700
----------------------------------------------------------------------------------
SHARES
Money Market Funds-- 3.6%
-------------------------
13,288 Provident Municipal Cash Money Market Fund 13,288
13,782 Provident Municipal Money Market Fund 13,782
----------------------------------------------------------------------------------
Total Money Market Funds
(Cost $27,070) 27,070
----------------------------------------------------------------------------------
Total Short-Term Investments
(Cost $28,770) 28,770
----------------------------------------------------------------------------------
Total Investments -- 100.0%
(Cost $705,808) $747,688
----------------------------------------------------------------------------------
See notes to financial statements.
31
JPMORGAN NEW YORK INTERMEDIATE TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long-Term Municipal Securities-- 86.8%
New York-- 79.3%
$2,000 Albany County, New York, Airport Authority, Rev.,
FSA, 5.30%, 12/15/15 $ 2,122
1,120 Allegany County, New York, IDA, Civic Facility,
Alfred University, Rev., MBIA, 5.25%, 08/01/11 1,227
1,175 Amherst, New York, IDA, Civic Facility, Faculty-Student
Housing Corp., Ser. A, Rev., AMBAC, 5.50%, 08/01/15 1,302
1,000 Amherst, New York, IDA, Civic Facility,
Faculty-Student Housing Corp., Ser. B, Rev., 5.50%,
08/01/15 1,108
1,290 Amherst, New York, IDA, Civic Facility,
Faculty-Student Housing, Ser. B, Rev., AMBAC,
5.75%, 08/01/15 1,452
150 Arkport, New York, Central School District, GO,
FSA, 5.20%, 06/15/09 164
50 Arkport, New York, Central School District, GO,
FSA, 5.20%, 06/15/10 54
500 Attica, New York, Central School District, GO, FSA,
5.00%, 06/15/15 522
420 Barker, New York, Central School District, GO,
AMBAC, 5.13%, 06/01/04 445
480 Barker, New York, Central School District, GO,
AMBAC, 5.15%, 06/01/06 519
2,000 Battery Park City Authority, New York, Ser. A,
Rev., AMBAC, 5.50%, 11/01/26 2,085
1,040 Beacon, New York, City School District, GO, MBIA,
5.50%, 07/15/11 1,164
250 Brentwood, New York, Union Free School District,
GO, FSA, 5.63%, 06/15/11 281
100 Brentwood, New York, Union Free School District,
GO, FSA, 5.63%, 06/15/12 112
650 Brentwood, New York, Union Free School District,
GO, FSA, 5.63%, 06/15/13 723
1,085 Brookhaven, New York, Public Improvement, GO,
AMBAC, 5.30%, 11/15/11 1,211
590 Burnt Hills-Ballston Lake, New York, Central School
District, GO, FGIC, 5.40%, 07/15/16 636
305 Burnt Hills-Ballston Lake, New York, Central School
District, GO, FGIC, 5.50%, 07/15/17 329
375 Burnt Hills-Ballston Lake, New York, Central School
District, GO, FGIC, 5.50%, 07/15/18 403
250 Chenango Forks, New York, Central School District,
GO, FGIC, 5.63%, 06/15/11 281
850 Chenango Forks, New York, Central School District,
GO, FGIC, 5.70%, 06/15/12 957
1,655 Cleveland Hill, New York, Union Free School
District, Cheektowaga, GO, FGIC, 5.50%, 10/15/13 1,833
1,730 Cleveland Hill, New York, Union Free School
District, Cheektowaga, GO, FGIC, 5.50%, 10/15/14 1,902
175 Colonie, New York, Public Improvement, Ser. B,
GO, 5.20%, 04/01/04 185
375 Colonie, New York, Public Improvement, Ser. B,
GO, 5.20%, 04/01/05 401
565 Dutchess County, New York, Public Improvement,
GO, +, 5.00%, 05/01/08 614
See notes to financial statements.
32
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$ 185 East Meadow, New York, Fire District, GO, FSA,
5.30%, 04/01/04 $ 196
250 East Meadow, New York, Fire District, GO, FSA,
5.30%, 04/01/05 268
250 East Meadow, New York, Fire District, GO, FSA,
5.30%, 04/01/06 271
885 Erie County, New York, Public Improvement, GO,
FGIC, 6.00%, 01/15/05 912
855 Erie County, New York, Ser. B, GO, FGIC, 6.00%,
03/15/06 887
1,695 Erie County, New York, Water Authority,
Improvement & Extension, Rev., ^, 5.75%, 12/01/08 1,860
1,050 Goshen, New York, Central School District, GO,
FGIC, 5.00%, 06/15/16 1,118
1,050 Goshen, New York, Central School District, GO,
FGIC, 5.00%, 06/15/17 1,111
1,050 Goshen, New York, Central School District, GO,
FGIC, 5.00%, 06/15/18 1,105
1,000 Goshen, New York, Central School District, GO,
FGIC, 5.00%, 06/15/19 1,046
540 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/02 549
550 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/03 568
400 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/07 422
400 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/08 421
535 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/09 562
675 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/10 707
575 Gowanda, New York, Central School District, School
Improvement, GO, MBIA, 4.50%, 06/15/11 600
1,070 Lindenhurst, New York, Union Free School District,
GO, FGIC, 5.25%, 07/15/12 1,170
1,295 Lindenhurst, New York, Union Free School District,
GO, FGIC, 5.25%, 07/15/16 1,385
1,460 Lindenhurst, New York, Union Free School District,
GO, FGIC, 5.25%, 07/15/17 1,549
10,000 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev, AMBAC, 5.25%, 12/01/05 10,888
3,000 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev., AMBAC, 5.50%, 12/01/08 3,367
5,000 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev., AMBAC, 5.50%, 12/01/11 5,630
9,000 Long Island Power Authority, New York, Electric
Systems, Ser. A, Rev., FSA, 5.50%, 12/01/12 10,144
240 Longwood Central School District at Middle Island,
New York, GO, FSA, 4.80%, 06/15/13 250
525 Mahopac, New York, Central School District, Ser. B,
GO, MBIA, 5.60%, 06/15/14 586
815 Mahopac, New York, Central School District, Ser. B,
GO, MBIA, 5.60%, 06/15/15 904
See notes to financial statements.
33
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$1,090 Massapequa, New York, Union Free School District,
Ser. A, GO, FSA, 5.38%, 06/15/09 $ 1,215
2,180 Massapequa, New York, Union Free School District,
Ser. A, GO, FSA, 5.38%, 06/15/12 2,426
2,485 Massapequa, New York, Union Free School District,
Ser. A, GO, FSA, 5.40%, 06/15/13 2,749
3,135 Massapequa, New York, Union Free School District,
Ser. A, GO, FSA, 5.70%, 06/15/16 3,481
500 Metropolitan Transportation Authority, New York,
Commuter Facilities, Ser. B, Rev., MBIA, 6.10%,
07/01/09 584
2,000 Metropolitan Transportation Authority, New York,
Dedicated Tax Fund, Ser. A, Rev., MBIA, 5.50%,
04/01/16 2,136
3,080 Metropolitan Transportation Authority, New York,
Transportation Facilities, Ser. A, Rev, MBIA, 5.50%,
07/01/08 3,200
510 Metropolitan Transportation Authority, New York,
Transportation Facilities, Ser. C, Rev., FSA, 5.25%,
07/01/10 563
550 Monroe County, New York, IDA, Public
Improvement, Canal Ponds Park, Ser. A, Rev.,
7.00%, 06/15/13 578
775 Monroe County, New York, Public Improvement,
GO, 4.50%, 06/01/10 813
1,230 Monroe County, New York, Public Improvement,
GO, 6.00%, 03/01/12 1,439
1,000 Monroe County, New York, Public Improvement,
GO, 6.00%, 03/01/14 1,176
1,000 Monroe County, New York, Public Improvement,
GO, 6.00%, 03/01/18 1,171
1,000 Monroe County, New York, Public Improvement,
GO, 6.00%, 03/01/19 1,168
1,020 Monticello, New York, Central School District, GO,
FGIC, 5.63%, 06/15/06 1,131
2,400 Municipal Assistance Corp. for New York City,
Ser. E, Rev., 6.00%, 07/01/05 2,655
6,740 Municipal Assistance Corp. for New York City,
Ser. E, Rev., 6.00%, 07/01/06 7,572
6,500 Municipal Assistance Corp. for New York City,
Ser. G, Rev., 6.00%, 07/01/08 7,419
2,000 Nassau County, New York, General Improvement,
Ser. Q, GO, FGIC, 5.20%, 08/01/12 2,132
2,010 Nassau County, New York, IDA, Civic Facility,
Hofstra University Project, Rev., MBIA, 5.00%,
07/01/03 2,100
1,705 Nassau County, New York, IDA, Civic Facility,
Hofstra University Project, Rev., MBIA, 5.00%,
07/01/06 1,845
4,740 Nassau County, New York, IDA, Civic Facility,
Hofstra University Project, Rev., MBIA, 5.25%,
07/01/09 5,235
1,000 Nassau County, New York, Ser. E, GO, 7.00%,
03/01/04 1,085
See notes to financial statements.
34
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$ 415 New York City, New York, IDA, Civic Facility, Mt.
St. Vincent College, Rev., 7.00%, 05/01/08 $ 440
1,000 New York City, New York, IDA, Civic Facility,
New School for Social Research, Ser. A, Rev., MBIA,
5.75%, 09/01/15 1,071
1,430 New York City, New York, IDA, Civic Facility,
New York Blood Center Inc. Project, Rev., ^, 7.20%,
05/01/04 1,593
1,380 New York City, New York, IDA, Civic Facility,
Polytechnic University Project, Rev., 5.00%,
11/01/04 1,434
1,435 New York City, New York, IDA, Civic Facility,
Polytechnic University Project, Rev., 5.13%,
11/01/06 1,506
1,500 New York City, New York, IDA, Civic Facility,
YMCA Greater New York Project, Rev., 5.80%,
08/01/16 1,537
3,010 New York City, New York, IDA, IDR, Brooklyn
Navy Yard Cogen Partners Project, Rev., 6.20%,
10/01/22 3,228
3,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A,
Rev., FGIC, 5.75%, 06/15/31 3,224
3,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. D,
Rev, 5.50%, 06/15/10 3,366
500 New York City, New York, Ser. A, GO, ^, 6.10%,
08/01/02 516
1,000 New York City, New York, Ser. A, GO, 6.25%,
08/01/03 1,047
495 New York City, New York, Ser. A, GO, ^, 6.38%,
08/01/02 520
1,005 New York City, New York, Ser. A, GO, 6.38%,
08/01/05 1,054
60 New York City, New York, Ser. D, GO, ^, 7.65%,
02/01/02 62
2,500 New York City, New York, Ser. E, GO, FGIC,
6.00%, 08/01/07 2,826
1,410 New York City, New York, Ser. F, GO, 5.25%,
08/01/05 1,520
2,000 New York City, New York, Ser. F, GO, 5.75%,
02/01/12 2,159
200 New York City, New York, Ser. F, GO, ^, 8.25%,
11/15/01 205
200 New York City, New York, Ser. F, GO, 8.25%,
11/15/02 205
1,250 New York City, New York, Ser. G, GO, 5.75%,
02/01/04 1,332
1,000 New York City, New York, Ser. G, GO, FSA,
5.00%, 08/01/14 1,046
75 New York City, New York, Ser. H, GO, 6.88%,
02/01/02 76
460 New York City, New York, Ser. H, GO, ^, 7.00%,
02/01/02 476
See notes to financial statements.
35
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$ 40 New York City, New York, Ser. H, GO, 7.00%,
02/01/06 $ 41
980 New York City, New York, Ser. H, GO, ^, 7.10%,
02/01/02 1,014
20 New York City, New York, Ser. H, GO, ^, 7.10%,
02/01/12 21
1,000 New York City, New York, Transit Authority,
Metropolitan Transportation Authority, Triborough,
Ser. A, COP, AMBAC, 5.63%, 01/01/12 1,126
3,060 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. A, Rev., 5.00%,
05/01/07 3,310
4,575 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. A, Rev., 5.00%,
11/15/09 4,979
1,700 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. A, Rev., 5.50%,
02/15/08 1,886
3,900 New York City, New York, Transitional Finance
Authority, New York, Future Tax Secured, Ser. B,
Rev., 5.50%, 02/01/13 4,346
1,550 New York City, New York, Trust Cultural
Resources, Museum of Modern Art, Ser. A, Rev.,
AMBAC, 5.40%, 01/01/12 1,620
1,000 New York Convention Center, Operating Corp.,
Yale Building Acquisition Project, COP, 6.50%,
12/01/04 1,028
100 New York State, Dorm Authority, Canisius College,
Rev., MBIA, 4.75%, 07/01/12 106
525 New York State, Dorm Authority, Canisius College,
Rev., MBIA, 4.85%, 07/01/13 553
215 New York State, Dorm Authority, Canisius College,
Rev., MBIA, 4.95%, 07/01/14 225
230 New York State, Dorm Authority, Canisius College,
Rev., MBIA, 5.00%, 07/01/15 240
1,000 New York State, Dorm Authority, City University
System, 3rd General Reserve, Ser. 1, Rev., AMBAC,
5.25%, 07/01/08 1,077
2,500 New York State, Dorm Authority, City University
System, 3rd General Reserve, Ser. 2, Rev., FSA,
5.38%, 07/01/13 2,710
3,565 New York State, Dorm Authority, City University
System, Ser. A, Rev., FSA, 5.75%, 07/01/13 4,094
2,000 New York State, Dorm Authority, City University
System, Ser. B, Rev., FGIC, 5.75%, 07/01/07 2,249
2,470 New York State, Dorm Authority, City University
System, Ser. D, Rev., FGIC, 7.00%, 07/01/09 2,858
3,080 New York State, Dorm Authority, City University
System, Ser. D, Rev., FSA, 7.00%, 07/01/09 3,546
1,545 New York State, Dorm Authority, City University
System, Ser. D, Special Obligation, MBIA-IBC,
5.75%, 07/01/06 1,719
1,000 New York State, Dorm Authority, Lenox Hill
Hospital, Rev., 5.00%, 07/01/06 1,064
See notes to financial statements.
36
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$1,330 New York State, Dorm Authority, Lenox Hill
Hospital, Rev., 5.00%, 07/01/07 $ 1,418
1,000 New York State, Dorm Authority, Lenox Hill
Hospital, Rev., 5.25%, 07/01/08 1,080
470 New York State, Dorm Authority, Long Island
University, Rev., 5.00%, 09/01/12 503
1,020 New York State, Dorm Authority, Long Island
University, Rev., 5.13%, 09/01/10 1,113
1,000 New York State, Dorm Authority, Long Island
University, Rev., 5.25%, 09/01/11 1,102
1,000 New York State, Dorm Authority, Memorial Sloan
Kettering Cancer Center, Ser. C, Rev., MBIA,
5.50%, 07/01/09 1,116
1,000 New York State, Dorm Authority, Memorial Sloan
Kettering Cancer Center, Ser. C, Rev., MBIA,
5.50%, 07/01/23 1,101
465 New York State, Dorm Authority, Mental Health
Services, Facilities Improvement, Ser. B, Rev.,
MBIA, 5.50%, 02/15/12 515
1,665 New York State, Dorm Authority, Mental Health
Services, Facilities Improvement, Ser. B, Rev.,
MBIA, 5.60%, 08/15/13 1,843
2,000 New York State, Dorm Authority, New York
University, Ser. A, Rev., MBIA, 5.75%, 07/01/09 2,277
1,000 New York State, Dorm Authority, New York
University, Ser. A, Rev., MBIA, 5.75%, 07/01/15 1,152
3,500 New York State, Dorm Authority, New York
University, Ser. A, Rev., MBIA, 5.75%, 07/01/16 4,023
490 New York State, Dorm Authority, Nursing Home,
Ser. A, Rev., MBIA-FHA, 5.50%, 08/01/20 520
2,015 New York State, Dorm Authority, Rockefeller
University, Rev., 5.00%, 07/01/12 2,151
425 New York State, Dorm Authority, Ser. C, Rev., ^,
7.38%, 05/15/09 538
1,575 New York State, Dorm Authority, Ser. C, Rev.,
7.38%, 05/15/10 1,863
1,105 New York State, Dorm Authority, Special Act School
Districts Program, Rev., MBIA, 5.30%, 07/01/11 1,216
2,065 New York State, Dorm Authority, State Service
Contract, Albany County, Rev., 5.25%, 04/01/12 2,212
340 New York State, Dorm Authority, State Service
Contract, Albany County, Rev., 5.50%, 04/01/08 377
1,380 New York State, Dorm Authority, State University
Educational Facilities, Ser. A, Rev., FGIC, 5.50%,
05/15/06 1,519
6,500 New York State, Dorm Authority, State University
Educational Facilities, Ser. A, Rev., FGIC, 5.50%,
05/15/13 7,326
5,000 New York State, Energy Research & Development
Authority, PCR, New York State Electric and Gas
Corp., Ser. E, Rev., MBIA, 5.90%, 12/01/06 5,650
7,200 New York State, Environmental Facilities Corp.,
PCR, State Water Revolving Fund, New York City
Municipal Water, Rev., @, 5.75%, 06/15/12 8,281
See notes to financial statements.
37
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$5,415 New York State, Environmental Facilities Corp.,
PCR, State Water Revolving Fund, Ser. E, Rev., @,
MBIA, 6.00%, 06/15/12 $ 6,356
1,000 New York State, GO, 2.75%, 07/01/04 996
1,155 New York State, Housing Finance Agency, Health
Facilities, Monroe County, Ser. A, Rev., 7.63%,
05/01/05 1,176
300 New York State, Housing Finance Agency,
Multi-Family Housing, Ser. A, Rev., 6.95%, 08/15/12 312
270 New York State, Housing Finance Agency, Rev.,
8.00%, 11/01/08 277
650 New York State, Housing Finance Agency, Service
Contract Obligation, Ser. A, Rev., ^, 7.38%, 03/15/02 680
1,550 New York State, Housing Finance Agency, State
University Construction, Ser. A, Rev., ^, 8.00%,
05/01/11 1,984
65 New York State, Medical Care Facilities Finance
Agency, Mortgage Project, Ser. A, Rev., MBIA-IBC,
5.40%, 08/15/04 70
1,000 New York State, Municipal Bond Bank Agency,
Special Program, Buffalo, Ser. A, Rev., 6.88%,
03/15/06 1,023
5,000 New York State, Thruway Authority, Highway &
Bridge Trust Fund, Ser. A, Rev., FGIC, 5.25%, 04/01/08 5,498
3,000 New York State, Thruway Authority, Ser. D, Rev.,
5.25%, 01/01/21 3,084
6,315 New York State, Thruway Authority, Service
Contract, Local Highway & Bridge, 6.00%, 04/01/11 7,155
5,930 New York State, Thruway Authority, Service
Contract, Local Highway & Bridge, Ser. A-2, Rev.,
MBIA, 5.38%, 04/01/10 6,508
1,490 New York State, Urban Development Corp.,
Community Enhancement Facilities, Ser. A, Rev.,
5.00%, 04/01/03 1,545
50 New York State, Urban Development Corp.,
Correctional Facilities Service Contract, Ser. D,
Rev., FSA, 5.00%, 01/01/14 53
250 New York State, Urban Development Corp., Youth
Facilities Services Contract, Ser. B, Rev., 5.60%,
04/01/11 281
95 New York State, Urban Development Corp., Youth
Facilities Services Contract, Ser. B, Rev., 5.88%,
04/01/14 106
515 Niagara, New York, Frontier Transportation
Authority, Greater Buffalo International Airport,
Ser. B, Rev., @, AMBAC, 5.75%, 04/01/04 550
415 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/02 426
445 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/04 470
200 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/05 212
520 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/08 553
See notes to financial statements.
38
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$ 540 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/09 $ 572
565 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/10 596
555 North Shore, New York, Central School District,
Ser. A, GO, MBIA, 4.50%, 12/01/11 582
1,045 Oneida County, New York, GO, FGIC, 5.50%,
03/15/11 1,175
1,000 Oneida-Herkimer, New York, Solid Waste
Management Authority, Solid Waste Systems,
Rev., FSA, 5.50%, 04/01/11 1,110
3,000 Port Authority of New York & New Jersey, Special
Obligation, 3rd Installment, Special Project, Ser. 4,
Rev., 7.00%, 10/01/07 3,241
275 Randolph, New York, Central School District, GO,
FGIC, 5.00%, 06/15/06 298
2,180 Rochester, New York, Ser. A, GO, AMBAC, 5.70%,
08/15/04 2,368
520 Rondout Valley, New York, Central School District,
Ser. A, GO, FSA, 5.13%, 03/01/17 544
965 Rondout Valley, New York, Central School District,
Ser. A, GO, FSA, 5.25%, 03/01/18 1,015
930 Rondout Valley, New York, Central School District,
Ser. A, GO, FSA, 5.25%, 03/01/19 974
1,050 Scotia Glenville, New York, Central School District,
GO, FGIC, 5.40%, 06/15/12 1,160
1,050 Scotia Glenville, New York, Central School District,
GO, FGIC, 5.50%, 06/15/13 1,159
1,025 Scotia Glenville, New York, Central School District,
GO, FGIC, 5.50%, 06/15/14 1,124
275 Shenendehowa, New York, Central School District,
Clifton Park, GO, FSA, 5.50%, 07/15/11 310
500 Stillwater, New York, Central School District, GO,
MBIA, 5.20%, 06/15/11 543
1,780 Suffolk County, New York, Public Improvement,
Ser. C, GO, FGIC, 5.10%, 11/01/02 1,834
5,000 Suffolk County, New York, Southwest Sewer
District, GO, MBIA, 6.00%, 02/01/05 5,485
1,065 Sullivan County, New York, Public Improvement,
GO, MBIA, 5.00%, 03/15/08 1,113
7,125 Triborough Bridge & Tunnel Authority, New York,
General Purpose, Ser. Y, Rev., @, 6.00%, 01/01/12 8,308
1,000 Utica, New York, IDA, Civic Facility, Munson
William Porter Institute, Rev., 5.40%, 07/15/30 1,023
440 Utica, New York, Public Improvement, GO, 6.00%,
01/15/03 456
465 Utica, New York, Public Improvement, GO, 6.00%,
01/15/04 491
700 Utica, New York, Public Improvement, GO, 6.00%,
01/15/11 771
675 Utica, New York, Public Improvement, GO, 6.00%,
01/15/12 740
295 Utica, New York, Public Improvement, GO, 6.10%,
01/15/13 324
See notes to financial statements.
39
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
New York-- Continued
$ 295 Utica, New York, Public Improvement, GO, 6.20%,
01/15/14 $ 325
320 Utica, New York, Public Improvement, GO, 6.25%,
01/15/15 352
565 Warwick Valley, New York, Central School District,
GO, FSA, 5.50%, 01/15/14 621
600 Watertown, New York, City School District, GO,
FSA, 5.63%, 06/15/16 655
1,365 Watertown, New York, City School District, GO,
FSA, 5.63%, 06/15/17 1,484
1,245 Watertown, New York, City School District, GO,
FSA, 5.63%, 06/15/18 1,347
1,150 Westchester County, New York, GO, ^, 6.70%,
11/01/06 1,350
170 Westchester County, New York, IDA, AGR Realty
Co. Project, Rev., ^, 5.75%, 01/01/02 171
2,000 Westchester County, New York, IDA, Civic
Facility, Children's Village Project, Ser. A, Rev.,
5.30%, 03/15/14 2,113
985 Westchester County, New York, IDA, Civic
Facility, Rippowam-Cisqua School Project, Rev.,
5.75%, 06/01/29 993
2,000 Westchester County, New York, IDA, Resource
Recovery, Resco Co. Project, Ser. A, Rev., AMBAC,
5.70%, 07/01/08 2,161
250 William Floyd Union Free School District of the
Mastics-Moriches-Shirley, New York, Ser. B, GO,
MBIA, 4.50%, 06/15/05 264
1,705 William Floyd Union Free School District of the
Mastics-Moriches-Shirley, New York, Ser. B, GO,
MBIA, 4.63%, 06/15/08 1,821
1,000 Windsor, New York, Central School District, GO,
FGIC, 5.50%, 06/15/13 1,108
1,170 Windsor, New York, Central School District, GO,
FGIC, 5.50%, 06/15/14 1,287
650 Windsor, New York, Central School District, GO,
FGIC, 5.50%, 06/15/15 711
-------
336,926
Puerto Rico-- 4.1%
160 Puerto Rico Commonwealth, Infrastructure
Financing Authority, Special Obligation, Ser. A, ^,
4.75%, 10/01/12 170
3,500 Puerto Rico Commonwealth, Public Improvement,
GO, ^, 6.00%, 07/01/05 3,945
4,390 Puerto Rico Electric Power Authority, Ser. AA, Rev.,
MBIA, 5.40%, 07/01/13 4,750
1,250 Puerto Rico Electric Power Authority, Ser. AA, Rev.,
MBIA, 6.25%, 07/01/10 1,482
1,000 Puerto Rico Electric Power Authority, Ser. DD,
Rev., FSA, 5.00%, 07/01/11 1,079
1,300 Puerto Rico Electric Power Authority, Ser. HH,
Rev., FSA, 5.50%, 07/01/10 1,469
1,800 Puerto Rico Electric Power Authority, Ser. X, Rev.,
6.00%, 07/01/11 1,965
See notes to financial statements.
40
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Long Term Municipal Securities-- Continued
Puerto Rico-- Continued
$1,000 Puerto Rico Municipal Finance Agency, Ser. A, GO,
5.00%, 08/01/02 $ 1,023
1,500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
FSA, 6.00%, 08/01/15 1,703
----------
17,586
Virgin Islands-- 3.4%
1,390 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 5.00%,
10/01/03 1,432
1,090 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 5.25%,
10/01/01 1,092
1,000 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 5.50%,
10/01/02 1,024
4,000 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 6.38%,
10/01/19 4,350
1,150 Virgin Islands Public Finance Authority, Matching
Fund Lien Notes, Ser. A, Rev., ^, 7.25%, 10/01/02 1,231
2,000 Virgin Islands Public Finance Authority, Senior Lien,
Fund Lien Notes, Ser. C, Rev., 5.00%, 10/01/01 2,003
3,075 Virgin Islands Public Finance Authority, Senior Lien,
Fund Lien Notes, Ser. C, Rev., 5.00%, 10/01/02 3,136
----------
14,268
----------
Total Long-Term Municipal Securities 368,780
(Cost $344,727)
----------
Short-Term Investments -- 13.2%
Municipal Securities -- 11.9%
New York -- 11.9%
4,000 New York City, New York, Housing Development
Corp., Multi-Family Housing, Carnegie Park, Ser. A,
Rev., FRDO, 1.80%, 09/05/01 4,000
5,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. A, Rev.,
FRDO, FGIC, 2.40%, 09/04/01 5,000
1,050 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. C, Rev.,
FRDO, FGIC, 2.40%, 09/04/01 1,050
4,400 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. C, Rev.,
FRDO, FGIC, 2.40%, 09/04/01 4,400
8,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. F-1, Rev.,
FRDO, 2.40%, 09/04/01 8,000
7,000 New York City, New York, Municipal Water Finance
Authority, Water & Sewer Systems, Ser. G, Rev.,
FRDO, FGIC, 2.45%, 09/04/01 7,000
See notes to financial statements.
41
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
----------------------------------------------------------------------------------------------
Short-Term Investments-- Continued
New York-- Continued
$ 300 New York City, New York, Ser. B, Sub. Ser. B-4,
GO, FRDO, MBIA, 2.40%, 09/04/01 $ 300
4,500 New York City, New York, Sub Ser. A-4, GO,
FRDO, 2.40%, 09/04/01 4,500
800 New York City, New York, Sub. Ser. A-5, GO,
FRDO, 2.40%, 09/04/01 800
13,900 New York City, New York, Transitional Finance
Authority, Future Tax Secured, Ser. B, Rev., FRDO,
2.40%, 09/04/01 13,900
1,000 New York State, Energy Research & Development
Authority, PCR, Rochester Gas & Electric Corp.,
Ser. C, Rev., FRDO, MBIA, 1.75%, 09/05/01 1,000
400 New York State, Thruway Authority, Floating Rate
Receipts, Ser. SGA-119, FRDO, 2.60%, 09/04/01 400
----------
50,350
----------
Total Municipal Securities 50,350
(Cost $50,350)
----------
Shares
Money Market Fund -- 1.3%
5,366 Provident New York Money Market Fund 5,366
(Cost $5,366)
----------
Total Short-Term Investments 55,716
(Cost $55,716)
----------
Total Investments-- 100.0% $424,496
(Cost $400,443)
----------
See notes to financial statements.
42
JPMorgan NEW JERSEY TAX FREE INCOME FUND
PORTFOLIO OF INVESTMENTS
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- 98.7%
NEW JERSEY -- 87.7%
$1,160 Atlantic City, New Jersey, GO, FSA, 5.00%,
12/15/10 $ 1,255
965 Bayonne, New Jersey, GO, AMBAC, 5.00%,
07/15/04 1,022
395 Bayshore Regional Sewer Authority, New Jersey,
Rev., MBIA, 5.50%, 04/01/12 426
335 Bloomfield Township, New Jersey, GO, FGIC, 5.20%,
06/15/11 363
260 Bloomfield Township, New Jersey, GO, FGIC, 5.20%,
06/15/12 280
50 Brick Township, New Jersey, Improvement, GO, FSA,
5.40%, 05/01/07 55
250 Camden County, New Jersey, Improvement Authority,
Health Systems, Catholic Health East, Ser. B, Rev.,
AMBAC, 5.25%, 11/15/12 271
1,625 Cherry Hill Township, New Jersey, School District,
GO, 4.70%, 02/15/08 1,720
345 Cinnaminson Township, New Jersey, School
District, GO, FGIC, 5.20%, 08/01/10 377
100 Colts Neck Township, New Jersey, Board of
Education, Ser. B, GO, MBIA, ^, 6.63%, 01/01/05 113
600 Delaware River & Bay Authority, Delaware &
New Jersey, Rev., FGIC, 5.20%, 01/01/10 640
1,700 Delaware River Port Authority of Pennsylvania &
New Jersey, Port District Project, Ser. B, Rev., FSA,
5.70%, 01/01/21 1,843
100 Deptford Township, New Jersey, Municipal Utilities
Authority, Rev., AMBAC, 4.88%, 02/01/10 107
315 Deptford Township, New Jersey, Municipal Utilities
Authority, Rev., AMBAC, 5.00%, 02/01/12 335
350 Deptford Township, New Jersey, Municipal Utilities
Authority, Rev., AMBAC, 5.25%, 02/01/14 375
360 East Orange, New Jersey, Water Utilities, GO,
AMBAC, 5.50%, 06/15/05 391
570 Edison Township, New Jersey, School District,
GO, 6.50%, 06/01/04 623
1,120 Egg Harbor Township, New Jersey, School District,
GO, FGIC, 5.00%, 07/15/16 1,173
2,500 Essex County, New Jersey, General Improvement,
GO, FGIC, 4.50%, 06/01/11 2,584
1,385 Ewing Township, New Jersey, School District,
School Bonds, GO, FGIC, 5.30%, 08/01/09 1,513
205 Galloway Township, New Jersey, GO, AMBAC, +,
4.50%, 11/01/12 212
320 Galloway Township, New Jersey, GO, AMBAC, +,
4.50%, 11/01/14 325
315 Galloway Township, New Jersey, GO, AMBAC, +,
4.75%, 11/01/16 323
300 Galloway Township, New Jersey, GO, AMBAC, +,
5.00%, 11/01/06 324
500 Galloway Township, New Jersey, GO, AMBAC, +,
5.00%, 11/01/09 542
See notes to financial statements.
43
PRINCIPAL
AMOUNT ISSUER VALUE
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
NEW JERSEY -- CONTINUED
$ 300 Galloway Township, New Jersey, GO, AMBAC, +,
5.00%, 11/01/10 $ 325
160 Gloucester County, New Jersey, Improvement
Authority, County Guaranteed, Ser. A, Rev., MBIA,
5.35%, 08/01/09 177
220 Gloucester County, New Jersey, Improvement
Authority, County Guaranteed, Ser. A, Rev., MBIA,
5.55%, 08/01/12 245
225 Gloucester County, New Jersey, Improvement
Authority, County Guaranteed, Ser. A, Rev., MBIA,
5.70%, 08/01/15 250
1,140 Hamilton Township, Atlantic County, New Jersey,
School District, GO, FGIC, 5.88%, 12/15/07 1,196
220 Hawthorne, New Jersey, General Improvement, GO,
FGIC, 5.00%, 10/01/08 240
220 Hawthorne, New Jersey, General Improvement, GO,
FGIC, 5.00%, 10/01/09 240
220 Hawthorne, New Jersey, General Improvement, GO,
FGIC, 5.00%, 10/01/10 240
220 Hawthorne, New Jersey, General Improvement, GO,
FGIC, 5.00%, 10/01/12 236
130 Hawthorne, New Jersey, General Improvement, GO,
FGIC, 5.00%, 10/01/13 139
500 Hunterdon, New Jersey, Central Regional High
School District, GO, FSA, 5.40%, 05/01/09 536
430 Lodi, New Jersey, GO, AMBAC, 4.00%, 10/01/04 443
525 Lodi, New Jersey, GO, AMBAC, 4.00%, 10/01/06 542
100 Long Hill Township, New Jersey, GO, 5.15%,
08/15/06 109
275 Long Hill Township, New Jersey, GO, 5.15%,
08/15/07 300
275 Long Hill Township, New Jersey, GO, 5.15%,
08/15/08 300
380 Lopatcong Township, New Jersey, Board of
Education, GO, FSA, 5.63%, 07/15/13 426
400 Lopatcong Township, New Jersey, Board of
Education, GO, FSA, 5.70%, 07/15/16 450
500 Lopatcong Township, New Jersey, Board of
Education, GO, FSA, 5.70%, 07/15/23 563
100 Mainland, New Jersey, Regional High School
District, GO, 5.20%, 11/15/06 109
105 Mainland, New Jersey, Regional High School
District, GO, 5.20%, 11/15/07 115
110 Mainland, New Jersey, Regional High School
District, GO, 5.25%, 11/15/08 121
110 Mainland, New Jersey, Regional High School
District, GO, 5.25%, 11/15/09 121
115 Mainland, New Jersey, Regional High School
District, GO, 5.25%, 11/15/10 126
120 Mainland, New Jersey, Regional High School
District, GO, 5.25%, 11/15/11 131
1,460 Marlboro Township, New Jersey, Board of Education,
GO, FSA, 5.00%, 07/15/06 1,574
See notes to financial statements.
44
PRINCIPAL
AMOUNT ISSUER VALUE
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
NEW JERSEY -- CONTINUED
$ 400 Medford Township, New Jersey, GO, FGIC, 5.30%,
07/15/09 $ 443
2,000 Middletown Township, New Jersey, Board of
Education, GO, ^, MBIA, 5.85%, 08/01/07 2,250
350 Monmouth County, New Jersey, Improvement
Authority, Governmental Loan, Rev., AMBAC, 4.95%,
12/01/11 376
1,050 Monmouth County, New Jersey, Improvement
Authority, Governmental Loan, Rev., AMBAC, 5.10%,
12/01/13 1,124
725 Monmouth County, New Jersey, Improvement
Authority, Governmental Loan, Rev., AMBAC, 5.20%,
12/01/14 778
2,065 Monmouth County, New Jersey, Improvement
Authority, Governmental Loan, Rev., AMBAC, 5.30%,
12/01/16 2,207
300 Montclair Township, New Jersey, GO, FSA, 5.40%,
01/15/08 330
1,710 New Jersey Economic Development Authority, Market
Transition Facility, Senior Lien, Ser. A, Rev., MBIA,
5.80%, 07/01/08 1,866
1,200 New Jersey Economic Development Authority, Market
Transition Facility, Senior Lien, Ser. A, Rev., MBIA,
5.80%, 07/01/09 1,309
1,105 New Jersey Economic Development Authority,
Municipal Loan Pool, Rev., FSA, 5.25%, 11/15/11 1,211
1,160 New Jersey Economic Development Authority,
Municipal Loan Pool, Rev., FSA, 5.25%, 11/15/12 1,264
1,060 New Jersey Economic Development Authority,
New Jersey Performing Arts Center Project, Ser. A,
Rev., AMBAC, 6.00%, 06/15/08 1,206
380 New Jersey Health Care Facilities, Financing
Authority, St. Elizabeth Hospital Obligation Group,
Rev., 6.00%, 07/01/14 374
670 New Jersey Sports & Exposition Authority, Ser. A,
Rev., 6.50%, 03/01/07 696
720 New Jersey State, Educational Facilities Authority,
Capital Improvement Fund, Ser. A, Rev., 5.00%,
09/01/08 779
2,545 New Jersey State, Educational Facilities Authority,
Drew University Issue, Ser. C, Rev., MBIA, 5.25%,
07/01/13 2,729
335 New Jersey State, Educational Facilities Authority,
Fairleigh Dickinson University, Ser. G, Rev., 4.88%,
07/01/04 341
1,000 New Jersey State, Educational Facilities Authority,
Fairleigh Dickinson University, Ser. G, Rev., @,
5.70%, 07/01/28 965
1,000 New Jersey State, Educational Facilities Authority,
Princeton University, Ser. E, Rev., 5.25%, 07/01/13 1,084
1,250 New Jersey State, Educational Facilities Authority,
Seton Hall University, Rev., AMBAC, 5.25%, 07/01/13 1,352
400 New Jersey State, Ser. D, GO, 6.00%, 02/15/11 463
See notes to financial statements.
45
PRINCIPAL
AMOUNT ISSUER VALUE
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
NEW JERSEY -- CONTINUED
$ 110 New Jersey State, Transportation Trust Fund Authority,
Transportation Systems, Ser. A, Rev.,
5.00%, 06/15/12 $ 116
1,000 New Jersey State, Transportation Trust Fund
Authority, Transportation Systems, Ser. A, Rev.,
5.75%, 06/15/16 1,143
1,000 New Jersey State, Turnpike Authority, Ser. A, Rev.,
MBIA, 5.50%, 01/01/07 1,098
1,000 New Jersey Wastewater Treatment Trust, Ser. D,
Rev., MBIA, 7.00%, 07/01/10 1,230
1,570 North Bergen Township, New Jersey, GO, AMBAC,
5.00%, 08/15/11 1,665
130 North Brunswick Township, New Jersey, GO, FSA,
5.25%, 04/01/04 138
1,140 North Jersey District Water Supply, Wanaque South
Project, Rev., MBIA, 5.50%, 07/01/03 1,198
1,140 Northwest Bergen County, New Jersey, Utilities
Authority, Utilities System, Rev., MBIA, 6.00%,
07/15/07 1,212
1,500 Port Authority of New York & New Jersey,
Consolidated Bonds 93rd Ser., Rev., 6.13%, 06/01/94 1,748
1,435 Port Authority of New York & New Jersey,
Consolidated Bonds 114th Ser., Rev., 4.75%, 08/01/33 1,394
1,475 Port Authority of New York & New Jersey, Special
Obligation, JFK International Airport Terminal #6,
Rev., MBIA, 6.25%, 12/01/08 1,701
2,755 Port Authority of New York & New Jersey, Special
Obligation, JFK International Airport Terminal #6,
Rev., @, MBIA, 6.25%, 12/01/09 3,200
305 Rahway, New Jersey, COP, MBIA, 5.00%, 02/15/06 328
430 Rahway, New Jersey, COP, MBIA, 5.30%, 02/15/11 476
495 Ridgefield, New Jersey, GO, MBIA, 6.20%, 03/15/04 536
35 Summit, New Jersey, GO, 5.70%, 06/01/10 39
1,105 Summit, New Jersey, GO, 5.70%, 06/01/11 1,241
1,001 Union County, New Jersey, General Improvement,
GO, 4.75%, 12/15/15 1,022
435 Union County, New Jersey, Improvement Authority,
Plainfield Board of Education Project, Rev., FGIC,
6.25%, 08/01/07 497
1,465 West New York And New Jersey, Improvement, GO,
AMBAC, 4.75%, 08/15/05 1,555
1,100 West Orange, New Jersey, GO, 5.45%, 02/15/15 1,183
1,100 West Orange, New Jersey, GO, 5.45%, 02/15/16 1,176
--------
73,489
PUERTO RICO -- 8.9%
1,200 Puerto Rico Commonwealth, Highway &
Transportation Authority, Ser. W, Rev., @,
MBIA-IBC, 5.50%, 07/01/15 1,358
3,000 Puerto Rico Commonwealth, Highway &
Transportation Authority, Ser. Y, Rev., MBIA-IBC,
5.00%, 07/01/36 3,032
1,000 Puerto Rico Electric Power Authority, Ser. AA, REV.,
MBIA, 6.25%, 07/01/10 1,186
See notes to financial statements.
46
PRINCIPAL
AMOUNT ISSUER VALUE
LONG TERM MUNICIPAL SECURITIES -- CONTINUED
PUERTO RICO -- CONTINUED
$ 750 Puerto Rico, Public Buildings Authority, Government
Facilities, Ser. B, Rev., AMBAC, 5.00%, 07/01/27 $ 758
1,000 University of Puerto Rico, Ser. O, Rev., MBIA, 5.75%,
06/01/17 1,107
--------
7,441
VIRGIN ISLANDS -- 2.1%
1,155 Virgin Islands Public Finance Authority, Gross
Receipts, Tax Lien Notes, Ser. A, Rev., 5.50%,
10/01/02 1,183
500 Virgin Islands Public Finance Authority, Gross
Receipts, Tax Lien Notes, Ser. A, Rev., 6.38%,
10/01/19 544
--------
1,727
--------
Total Long-Term Municipal Securities 82,657
(Cost $77,738)
SHORT-TERM INVESTMENT -- 1.3%
SHARES
MONEY MARKET FUND -- 1.3%
1,099 Blackrock New Jersey Municipal Money Market Fund 1,099
(Cost $1,099)
--------
TOTAL INVESTMENTS -- 100.0% $83,756
(Cost $78,837)
See notes to financial statements.
47
JPMORGAN CALIFORNIA INTERMEDIATE TAX FREE FUND
PORTFOLIO OF INVESTMENTS
As of August 31, 2001
(Amounts in Thousands)
PRINCIPAL
AMOUNT ISSUER VALUE
LONG TERM MUNICIPAL SECURITIES -- 92.4%
CALIFORNIA -- 84.1%
$ 250 Alameda County, California, Ser. A, COP, MBIA,
5.38%, 12/01/09 $ 282
520 Bay Area Government Association, California, Bay
Area Rapid Transit, Capital Grant, Ser. A, GO,
AMBAC, 5.00%, 06/15/05 560
250 Bell Community Redevelopment Agency, California,
Bell Redevelopment Project Area, Ser. B, Tax
Allocation, FSA, 6.30%, 11/01/13 273
310 Burlingame, California, Financing Authority, Rev.,
4.75%, 10/15/11 331
140 California Educational Facilities Authority,
Dominican University, Rev., 4.85%, 12/01/06 147
750 California Educational Facilities Authority, Stanford
University, Ser. P, Rev., 5.25%, 12/01/13 837
300 California State, GO, ^, MBIA-IBC, 6.25%, 10/01/02 317
490 Carson, California, Redevelopment Agency,
Redevelopment Project Area No. 1, Tax Allocation,
MBIA, 5.50%, 10/01/14 557
350 Coachella Valley, California, Recreation & Park
District, Improvement Bond Act of 1915, Special
Assessment, MBIA, +, 4.63%, 09/02/10 373
1,850 Contra Costa, California, Water District, Ser. G, Rev.,
@, ^, 5.75%, 10/01/04 2,060
1,000 Fallbrook, California, Unified High School District,
San Diego County, GO, FGIC, 5.38%, 09/01/12 1,122
700 Foothill/Eastern Corridor Agency, California Toll
Road, Rev., 5.00%, 01/15/06 744
100 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., MBIA, 5.50%, 07/01/10 113
100 Fullerton University Foundation, California, Auxiliary
Organization, Ser. A, Rev., MBIA, 5.50%, 07/01/11 113
200 Golden West Schools Financing Authority,
California, Capital Appreciation, Ser. A, Rev., @,
0.00%, 02/01/12 128
570 Golden West Schools Financing Authority,
California, Ser. A, Rev., MBIA, 5.80%, 02/01/16 660
500 Los Angeles County, California, Community
Facilities District No. 3, Improvement Area B, Special
Tax, Ser. A, 5.63%, 09/01/11 569
500 Los Angeles, California, Department of Water &
Power, Power Systems, Ser. A-A-1, Rev., 5.25%,
07/01/04 535
125 Los Angeles, California, Unified School District,
Ser. A, GO, FGIC, 6.00%, 07/01/15 148
300 Metropolitan Water District, Southern California,
Waterworks, Ser. A, Rev., 5.25%, 07/01/10 334
600 Metropolitan Water District, Southern California,
Waterworks, Ser. A, Rev., 5.38%, 07/01/12 675
340 Northern California Power Agency, Public Power,
Ser. A, ^, AMBAC, 5.80%, 07/01/09 395
560 Northern California Power Agency, Public Power,
Ser. A, AMBAC, 5.80%, 07/01/09 643
See notes to financial statements.
48
PRINCIPAL
AMOUNT ISSUER VALUE
LONG-TERM MUNICIPAL SECURITIES -- CONTINUED
CALIFORNIA -- CONTINUED
$ 425 Port Oakland, California, Ser. K, Rev., FGIC, 5.25%,
11/01/07 $ 466
360 Rancho, California, Water District Financing
Authority, Ser. A, Rev., FSA, 5.50%, 08/01/10 408
35 Richmond, California, Wastewater, Rev., FGIC,
5.20%, 08/01/11 39
250 Sacramento County, California, Sanitation District,
Financing Authority, Ser. A, Rev., 5.25%, 12/01/12 277
150 Sacramento County, California, Sanitation District,
Financing Authority, Ser. A, Rev., 5.75%, 12/01/10 173
900 Sacramento, California, Public Facilities Project,
` COP, 6.00%, 07/01/12 922
500 San Francisco, California, City & County Public
Utilities Commission, Ser. A, Rev., 6.25%, 11/01/07 575
190 San Juan, California, Unified School District, GO,
FSA, 5.25%, 08/01/09 212
250 San Mateo County, California, Joint Powers Authority,
Capital Projects Program, Rev., MBIA, 6.50%,
07/01/15 308
275 Sanger, California, Unified School District, GO,
MBIA, 5.25%, 02/01/10 305
1,000 Santa Clara County, California, Financing Authority,
Ser. A, Rev., AMBAC, 5.75%, 11/15/13 1,162
1,200 South Orange County, California, Public Financing
Authority, Special Tax, Senior Lien, Ser. A, MBIA,
6.20%, 09/01/13 1,305
1,000 University of California, Medical Center, Rev.,
AMBAC, 10.00%, 07/01/06 1,301
205 Ventura, California, Unified School District, Election
of 1997, Ser. E, GO, MBIA, 6.50%, 08/01/06 237
240 Ventura, California, Unified School District, Election
of 1997, Ser. E, GO, MBIA, 6.50%, 08/01/07 282
--------
19,888
PUERTO RICO -- 6.5%
235 Children's Trust Fund, Puerto Rico, Tobacco
Settlement, Rev., 5.00%, 07/01/06 246
420 Puerto Rico Commonwealth, Highway &
Transportation Authority, Ser. W, Rev., MBIA-IBC,
5.50%, 07/01/15 475
115 Puerto Rico Commonwealth, Public Improvement,
GO, 5.00%, 07/01/07 124
125 Puerto Rico Electric Power Authority, Ser. Z, Rev.,
5.10%, 07/01/06 135
500 Puerto Rico Municipal Finance Agency, Ser. A, GO,
FSA, 5.75%, 08/01/13 563
--------
1,543
VIRGIN ISLANDS -- 1.8%
400 Virgin Islands Public Finance Authority, Gross
Receipts, Taxes Lien Notes, Ser. A, Rev., 5.63%,
10/01/10 432
--------
Total Long Term Municipal Securities
(Cost $20,386) 21,863
See notes to financial statements.
49
PRINCIPAL
AMOUNT ISSUER VALUE
SHORT-TERM INVESTMENTS -- 7.6%
MUNICIPAL SECURITIES -- 5.5%
CALIFORNIA -- 5.5%
$ 300 Irvine Ranch, California, Water District, Consolidated
Bonds, Rev., FRDO, 2.35%, 09/04/01 $ 300
300 Irvine, California, Improvement Bond Act of 1915,
Assessment District No. 93-14, Special Assessment,
FRDO, 2.30%, 09/04/01 300
500 Irvine, California, Improvement Bond Act of 1915,
Assessment District No. 97-16, Rev., FRDO, 2.35%,
09/04/01 500
100 Orange County, California, Ser. A, COP, FRDO,
2.35%, 09/04/01 100
100 Western Riverside County, California, Regional
Wastewater Authority, Regional Wastewater
Treatment, Rev., FRDO, 2.35%, 09/04/01 100
--------
Total Municipal Securities
(Cost $1,300) 1,300
Shares
MONEY MARKET FUND -- 2.1%
491 Provident California Money Market Fund
(Cost $491) 491
--------
Total Short-Term Investments
(Cost ($1,791) 1,791
--------
Total Investments-- 100.0%
(Cost $22,177) $23,654
INDEX:
+ -- Delayed delivery security.
^ -- Security is prerefunded or escrowed to maturity. The maturity
date shown is the date of the prerefunded call.
@ -- All or a portion of the security is
segregated for delayed delivery securities.
AMBAC -- AMBAC Assurance Corp.
COP -- Certificates of Participation.
Dorm -- Dormitory.
FHA -- Federal Housing Authority.
FGIC -- Financial Guaranty Insurance Co.
FRDO -- Floating Rate Demand Obligation. The maturity date shown is the
next interest reset date. The interest rate shown is the rate in
effect at August 31, 2001.
FSA -- Financial Securities Assurance, Inc.
GO -- General Obligation.
IBC -- Insured Bond Certificates.
IDA -- Industrial Development Agency.
IDR -- Industrial Development Revenue.
MBIA -- Municipal Bond Insurance Assoc.
PCFA -- Pollution Control Financing Authority.
PCFFA -- Pollution Control Facilities Financing Authority.
PCR -- Pollution Control Revenue.
Rev. -- Revenue Bond.
Ser. -- Series.
See notes to financial statements.
50
JPMORGAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES As of August 31, 2001
(Amounts in Thousands, Except Per Share Amounts)
NEW YORK
INTERMEDIATE INTERMEDIATE
TAX FREE TAX FREE TAX FREE
INCOME FUND INCOME FUND INCOME FUND
===================================================================================================
ASSETS:
Investment securities, at value $853,993 $747,688 $424,496
Other assets 8 5 2
Receivables:
Investment securities sold 23,934 2,990 --
Interest 10,484 8,601 4,609
Fund shares sold 313 15 4,252
---------------------------------------------------------------------------------------------------
Total Assets 888,732 759,299 433,359
---------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 20,219 26,431 612
Fund shares redeemed 363 1,454 198
Dividends 2,911 2,391 1,008
Accrued liabilities:
Investment advisory fees 218 185 106
Administration fees 109 93 43
Shareholder servicing fees 178 154 76
Distribution fees 5 -- 7
Custodian fees 48 35 38
Other 209 212 194
---------------------------------------------------------------------------------------------------
Total Liabilities 24,260 30,955 2,282
---------------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 815,267 682,236 408,088
Accumulated undistributed/(overdistributed)
net investment income 104 40 (102)
Accumulated net realized gain (loss) on
investments and futures transactions (4,602) 4,188 (962)
Net unrealized appreciation of investments 53,703 41,880 24,053
---------------------------------------------------------------------------------------------------
Net Assets $864,472 $728,344 $431,077
===================================================================================================
Shares of beneficial interest outstanding
($.001 par value; unlimited number of
shares authorized)
Class A Shares 8,914 -- 15,940
Class B Shares 1,163 -- 1,615
Institutional Class Shares 121,513 66,366 40,879
Net Asset Value:
Class A Shares (and redemption price) $6.57 -- $ 7.37
Class B Shares * $6.58 -- $7.38
Institutional Class Shares (and redemption
price) $6.57 $10.98 $7.38
Class A Maximum Public Offering Price Per
Share (net asset value per share/95.5%) $6.88 -- $ 7.72
Cost of Investments $800,290 $705,808 $400,443
===================================================================================================
* Redemption price may be reduced by contigent deferred sales charge.
See notes to financial statements.
51
CALIFORNIA
NEW JERSEY INTERMEDIATE
TAX FREE TAX FREE
INCOME FUND FUND
==================================================================================
ASSETS:
Investment securities, at value $83,756 $23,654
Cash -- 1
Other assets 1 --
Receivables:
Investment securities sold 1,174 124
Interest 771 295
Fund shares sold 24 --
----------------------------------------------------------------------------------
Total Assets 85,726 24,074
----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 3,103 368
Fund shares redeemed -- 177
Dividends 274 42
Accrued liabilities:
Investment advisory fees 21 --
Administration fees 8 --
Shareholder servicing fees 10 --
Custodian fees 18 13
Other 66 22
----------------------------------------------------------------------------------
Total Liabilities 3,500 622
----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 76,432 21,735
Accumulated undistributed/(overdistributed)
net investment income (66) 186
Accumulated net realized gain on
investments and futures transactions 941 54
Net unrealized appreciation of investments 4,919 1,477
----------------------------------------------------------------------------------
Net Assets $82,226 $23,452
----------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value; unlimited number of
shares authorized)
Class A Shares -- 2,244
Institutional Class Shares 7,960 --
Net Asset Value:
Class A Shares (and redemption price) -- $10.45
Institutional Class Shares (and redemption
price) $10.33 --
Class A Maximum Public Offering Price Per
Share (net asset value per share/95.5%) -- $10.94
Cost of Investments $78,837 $22,177
==================================================================================
See notes to financial statements.
52
STATEMENT OF OPERATIONS For the year ended August 31, 2001
(Amounts in Thousands)
NEW YORK
INTERMEDIATE INTERMEDIATE
TAX FREE TAX FREE TAX FREE
INCOME FUND INCOME FUND INCOME FUND
===================================================================================================
INTEREST INCOME: $42,795 $34,243 $16,270
===================================================================================================
EXPENSES:
Investment advisory fees 2,420 2,121 1,010
Administration fees 1,210 1,061 505
Shareholder servicing fees 2,017 1,768 841
Distribution fees 107 -- 153
Custodian fees 123 116 119
Printing and postage 16 24 9
Professional fees 29 34 21
Registration expenses 39 30 41
Transfer agent fees 104 27 101
Trustees' fees 135 105 64
Other 83 47 35
---------------------------------------------------------------------------------------------------
Total expenses 6,283 5,333 2,899
---------------------------------------------------------------------------------------------------
Less amounts waived 136 -- 266
Less earnings credits 9 3 3
Less expense reimbursements 101 76 50
---------------------------------------------------------------------------------------------------
Net expenses 6,037 5,254 2,580
---------------------------------------------------------------------------------------------------
Net investment income 36,758 28,989 13,690
---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on:
Investments 7,517 8,319 2,530
Futures transactions (1,475) (218) (180)
Change in net unrealized appreciation/
depreciation of:
Investments 33,982 25,908 14,889
Futures contracts (276) (40) --
===================================================================================================
Net realized and unrealized gain
on investments and futures
transactions 39,748 33,969 17,239
===================================================================================================
Net increase in net
assets from operations $76,506 $62,958 $30,929
===================================================================================================
See notes to financial statements.
53
CALIFORNIA
NEW JERSEY INTERMEDIATE
TAX FREE TAX FREE
INCOME FUND FUND
===============================================================================
INTEREST INCOME: $3,908 $ 990
===============================================================================
EXPENSES:
Investment advisory fees 237 62
Administration fees 119 30
Shareholder servicing fees 198 52
Distribution fees -- 52
Custodian fees 78 54
Printing and postage 2 1
Professional fees 32 19
Registration expenses 27 4
Transfer agent fees 24 42
Trustees' fees 12 5
Other 8 3
-------------------------------------------------------------------------------
Total expenses 737 324
-------------------------------------------------------------------------------
Less amounts waived 134 196
Less earnings credits 1 --
Less expense reimbursements 8 4
-------------------------------------------------------------------------------
Net expenses 594 124
-------------------------------------------------------------------------------
Net investment income 3,314 866
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on:
Investments 730 189
Futures transactions 255 13
Change in net unrealized appreciation/
depreciation of:
Investments 3,731 719
Futures contracts (40) (2)
===============================================================================
Net realized and unrealized gain
on investments and futures
transactions 4,676 919
===============================================================================
Net increase in net
assets from operations $7,990 $1,785
===============================================================================
See notes to financial statements.
54
STATEMENT OF CHANGES IN NET ASSETS For the year ended August 31,
(Amounts in Thousands)
INTERMEDIATE
TAX FREE TAX FREE
INCOME FUND INCOME FUND
--------------------- -------------------
2001 2000 2001 2000
===============================================================================================================
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 36,758 $ 36,498 $ 28,989 $ 31,544
Net realized gain (loss) on investments and
futures transactions 6,042 (8,782) 8,101 (3,903)
Change in net unrealized appreciation
of investments and futures contracts 33,706 16,318 25,868 10,143
---------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 76,506 44,034 62,958 37,784
---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (36,662) (36,500) (29,003) (31,525)
Net realized gain on investment transactions -- -- -- (3,807)
Total distributions to shareholders (36,662) (36,500) (29,003) (35,332)
---------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share
transactions 71,823 1,173 215 (37,025)
---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 111,667 8,707 34,170 (34,573)
NET ASSETS:
Beginning of period 752,805 744,098 694,174 728,747
---------------------------------------------------------------------------------------------------------------
End of period $864,472 $752,805 $728,344 $694,174
===============================================================================================================
NEW YORK
INTERMEDIATE
TAX FREE INCOME FUND
--------------------
2001 2000
=================================================================================
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 13,690 $ 12,743
Net realized gain (loss) on investments and
futures transactions 2,350 (2,145)
Change in net unrealized appreciation
of investments and futures contracts 14,889 5,793
---------------------------------------------------------------------------------
Increase in net assets from operations 30,929 16,391
---------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (13,703) (12,793)
Net realized gain on investment transactions -- (83)
Total distributions to shareholders (13,703) (12,876)
---------------------------------------------------------------------------------
Increase (decrease) from capital share
transactions 137,272 (21,544)
---------------------------------------------------------------------------------
Total increase (decrease) in net assets 154,498 (18,029)
NET ASSETS:
Beginning of period 276,579 294,608
---------------------------------------------------------------------------------
End of period $431,077 $276,579
=================================================================================
See notes to financial statements.
55
NEW JERSEY CALIFORNIA
TAX FREE INTERMEDIATE
INCOME FUND TAX FREE FUND
--------------------- -------------------
2001 2000 2001 2000
===============================================================================================================================
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 3,314 $ 3,144 $ 866 $ 865
Net realized gain (loss) on investments and futures
transactions 985 26 202 (148)
Change in net unrealized appreciation of investments
and futures contracts 3,691 950 717 739
-------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 7,990 4,120 1,785 1,456
-------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,314) (3,149) (866) (868)
Net realized gain on investment transactions -- -- -- (217)
-------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (3,314) (3,149) (866) (1,085)
-------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital share transactions 5,031 3,901 3,204 (2,031)
-------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 9,707 4,872 4,123 (1,660)
NET ASSETS:
Beginning of period 72,519 67,647 19,329 20,989
-------------------------------------------------------------------------------------------------------------------------------
End of period $82,226 $72,519 $23,452 $19,329
===============================================================================================================================
See notes to financial statements.
56
JPMorgan FUNDS
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mutual Fund Select Trust and Mutual Fund Trust (the "Trusts") were organized as
Massachusetts business trusts and are registered under the Investment Company
Act of 1940 (the "1940 Act"), as amended, as open-end, non-diversified
management investment companies.
Effective February 28, 2001, the following five separate portfolios of the
Trusts (collectively, the "Funds") were renamed with the approval of the
Board of Trustees of the Trusts:
NEW NAME OLD NAME
----------------------------------------------------------------------------------------------------------------------------------
JPMorgan Tax Free Income Fund ("TFI") Chase Vista Select Tax Free Income Fund
JPMorgan Intermediate Tax Free Income Fund ("ITFI") Chase Vista Select Intermediate Tax Free Income Fund
JPMorgan New York Intermediate Tax Free Income Fund ("NYTFI") Chase Vista Select New York Intermediate Tax Free Income Fund
JPMorgan New Jersey Tax Free Income Fund ("NJTFI") Chase Vista Select New Jersey Tax Free Income Fund
JPMorgan California Intermediate Tax Free Fund ("CITF") Chase Vista California Intermediate Tax Free Fund
TFI, ITFI, NYTFI and NJTFI are each a series of Mutual Fund Select Trust. CITF
is a series of Mutual Fund Trust. The Funds offer various classes of shares as
follows:
FUND CLASSES OFFERED
------------------------------------------------------------------------------------------------------------------------------------
TFI Class A, Class B, Institutional
ITFI Institutional
NYTFI Class A, Class B, Institutional
NJTFI Institutional
CITF Class A
Class A Shares generally provide for a front-end sales charge while Class B
Shares provide for a contingent deferred sales charge. 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
expenses and each class has exclusive voting rights with respect to its
distribution and shareholder servicing agreement. No sales charges are assessed
with respect to the Institutional Class ("Class I").
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.
A. VALUATION OF INVESTMENTS -- Fixed income securities (other than
short-term obligations), including listed issues, are valued using matrix
pricing systems of a major dealer in bonds which take
57
in to account factors such as institutional-size trading in similar groups
of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics and other market data, without exclusive reliance
upon quoted exchange or over-the-counter prices. Short-term debt securities
with 61 days or more to maturity at time of purchase are valued, through
the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost, which
approximates market.
B. REPURCHASE AGREEMENTS -- It is the Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Fund's custodian bank,
sub-custodian or a bank with which the custodian bank has entered into a
sub-custodian agreement or is segregated in the Federal Reserve Book Entry
System. If the seller of a repurchase agreement defaults and the value of
the collateral declines, or if the seller enters an insolvency proceeding,
realization of the collateral may be delayed or limited.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions
are accounted for as of 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, adjusted for amortization of premiums and accretion of discounts.
Purchases of when-issued or delayed delivery securities may be settled a
month or more after the trade date; interest income is not accrued until
settlement date. Each Fund segregates assets with a current value at least
equal to the amount of its when-issued or delayed delivery purchase
commitments.
D. 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.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction; therefore, the Fund's credit risk is limited to
failure of the exchange or board of trade.
The risks of entering into futures contracts include the possibility that
the change in value of the contract may not correlate with the changes in
value of the underlying securities. The risk of loss associated with a long
futures contract is limited to the value of the
58
contract. The investment in short futures contracts subjects the Fund to
unlimited risk of loss.
The Funds invest in U.S. Treasury and/or municipal bond futures contracts
as a hedge to modify the duration of the portfolio holdings.
As of August 31, 2001, the Funds had no futures contracts open.
E. 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 Fund intends to make distributions as required to avoid
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
F. 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 income tax-basis treatment.
The following amounts were reclassified within the capital accounts (in
thousands):
ACCUMULATED
UNDISTRIBUTED/
(OVERDISTRIBUTED)
PAID-IN CAPITAL NET INVESTMENT INCOME
--------------------------------------------------------------------------------
TFI (5) 5
ITFI (5) 5
NYTFI (2) 2
NJTFI (1) 1
The reclassifications relate to non-deductible organization costs.
G. ALLOCATION OF INCOME AND EXPENSES -- Expenses directly attributable to a
Fund are charged to that Fund; other expenses 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 class are charged directly to such class. In calculating net
asset value per share of each class, investment income, realized and
unrealized gains and losses and expenses other than class specific expenses
(e.g., transfer agent fees), are allocated daily to each class of shares
based upon the proportion of net assets of each class at the beginning of
each day.
59
H. ORGANIZATION COSTS -- Organization and initial registration costs
incurred in connection with establishing each of the Funds, except for
CITF, have been deferred and are being amortized on a straight-line basis
over a sixty month period beginning with the commencement of operations of
each Fund.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY FEE -- Each Trust has entered into separate
Investment Advisory Agreements, pursuant to which J.P. Morgan Fleming Asset
Management (USA) Inc. ("JPMFAM" or "Adviser") (formerly Chase Fleming Asset
Management (USA) Inc., and Chase Asset Management Inc.) acts as the
investment adviser to the Funds. JPMFAM is a direct wholly owned subsidiary
of J.P. Morgan Chase & Co. As investment adviser, JPMFAM supervises the
investments of each Fund and for such services is paid a fee. The fee is
accrued daily and paid monthly at an annual rate equal to 0.30% of the
average daily net assets for each respective Fund. The Adviser (and its
predecessors) voluntarily waived fees as outlined in Note 2.F. below.
Prior to February 22, 2001, The Chase Manhattan Bank ("Chase"), also a
direct wholly owned subsidiary of J.P. Morgan Chase & Co., acted as the
investment advisor to each Fund, and JPMFAM acted as the investment
sub-adviser to each Fund. Pursuant to a Sub-Investment Advisory Agreement
between Chase and JPMFAM, JPMFAM was entitled to receive a fee, payable by
Chase from its advisory fee, at an annual rate equal to 0.15% of each
Fund's average daily net assets.
B. ADMINISTRATION FEE -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trusts at an annual fee computed daily and paid monthly of 0.10% of the
respective Fund's average daily net assets. The Administrator voluntarily
waived fees as outlined in Note 2.F. below.
The Trustees have approved an increase in the Funds' administration fee.
Effective September 10, 2001, the administration fee payable to Chase was
increased to 0.15% of average daily net assets for complex wide non-money
market fund assets up to $25 billion and 0.075% on assets in excess of $25
billion.
C. DISTRIBUTION AND SUB-ADMINISTRATION FEES -- Pursuant to a Distribution
and Sub-Administration Agreement, J.P. Morgan Fund Distributors, Inc. (the
"Distributor") (formerly Vista Fund Distributors, Inc., a wholly-owned
subsidiary of The BISYS Group, Inc.) acts as the Trusts' exclusive
underwriter and promotes and arranges for the sale of each Fund's shares.
In addition, the Distributor provides certain sub-administration services
to the Trusts, including provid-
60
ing officers, clerical staff and office space for an annual fee computed
daily and paid monthly of 0.05% of the average daily net assets of each
Fund through September 9, 2001.
Effective September 10, 2001, BISYS Fund Services, L.P. ("BISYS") has been
named as the Funds' Sub-Administrator. For its services as
Sub-Administrator, BISYS will receive a portion of the fees payable to
Chase as Administrator.
The Trustees have adopted Distribution Plans for Class A Shares of TFI,
NYTFI and CITF, and for Class B Shares of TFI and NYTFI in accordance with
Rule 12b-1 under the 1940 Act. There is no Distribution Plan for
Institutional Class Shares. The Distribution Plans provide that each Fund
shall pay distribution fees at annual rate not to exceed 0.25% of each
Fund's average daily net assets for Class A Shares and 0.75% of each Fund's
average daily net assets for Class B Shares. The Distributor voluntarily
waived fees as outlined in Note 2.F. below.
D. SHAREHOLDER SERVICING FEES -- The Trusts have adopted an Administrative
Services Plan which, among other things, provides that the Trusts on behalf
of the Funds may obtain the services of one or more Shareholder Servicing
Agents. For its services, each Shareholder Servicing Agent receives a fee.
The fee is computed daily and paid monthly at an annual rate of 0.25% of
the average daily net assets of each Fund.
Chase and certain affiliates are the only Shareholder Servicing Agents. The
Shareholder Servicing Agents voluntarily waived fees as outlined in Note
2.F. below.
E. CUSTODIAN AND ACCOUNTING FEES -- Chase provides portfolio accounting and
custody services for the Funds. Compensation for such services is presented
in the Statement of Operations as custodian fees. Custodian fees are
subject to reduction by credits earned by each Fund, based on cash balances
held by Chase as custodian. Such earnings credits are presented separately
in the Statement of Operations. The Funds could have invested the cash
balances utilized in connection with the earnings credit arrangements in
income producing assets if they had not entered into such arrangements.
F. WAIVERS OF FEES -- For the year ended August 31, 2001, the Funds'
vendors voluntarily waived fees for each of the Funds as follows (in
thousands):
INVESTMENT SHAREHOLDER
ADVISORY ADMINISTRATION SERVICING DISTRIBUTION
-----------------------------------------------------------------------------------------------
TFI $-- $-- $ 64 $ 72
NYTFI -- 98 61 107
NJTFI -- 32 102 --
CITF 62 30 52 52
61
The Adviser voluntarily reimbursed expenses of the Funds in the amounts as
shown on the Statement of Operations.
G. OTHER -- Certain officers of the Trust are officers of the Distributor
or of its parent corporation, BISYS.
Deferred organization costs are included in Other assets in the Statement
of Assets and Liabilities, and amortization of such costs is included in
Other expenses in the Statement of Operations.
3. INVESTMENT TRANSACTIONS
The cost of purchases and proceeds from sales of investments (excluding
short-term investments) for the year ended August 31, 2001, were as follows
(amounts in thousands):
TFI ITFI NYTFI NJTFI CITF
-------------------------------------------------------------------------------------------------
Purchases $447,841 $301,727 $121,431 $43,564 $9,586
Sales 458,466 305,319 102,822 36,374 7,556
4. FEDERAL INCOME TAX MATTERS
For Federal income tax purposes, the cost and unrealized
appreciation/(depreciation) in value of the investment securities as of August
31, 2001, are as follows (amounts in thousands):
TFI ITFI NYTFI NJTFI CITF
--------------------------------------------------------------------------------------------------
Aggregate cost $800,290 $705,818 $400,443 $78,837 $22,177
-------- -------- -------- ------- -------
Gross unrealized
appreciation $ 54,019 $ 41,870 $ 24,130 $ 4,944 $ 1,477
Gross unrealized
depreciation (316) -- (77) (25) --
-------- -------- -------- ------- -------
Net unrealized
appreciation $ 53,703 $ 41,870 $ 24,053 $ 4,919 $ 1,477
======== ======== ======== ======= =======
As of August 31, 2001, the following Funds have capital loss carryovers which
will be available to offset capital gains. To the extent that any net capital
loss carryovers are used to offset future capital gains, it is probable that the
gains so offset will not be distributed to shareholders.
EXPIRATION
AMOUNT DATE
------------------------------------------------------------------------------------------------
TFI $4,602,375 August 31, 2008
NYTFI 276,055 August 31, 2007
686,180 August 31, 2008
During the year ended August 31, 2001, TFI, ITFI, NYTFI, NJTFI and CITF utilized
capital loss carryforwards of $133,099, $1,684,817, $578,347, $3,760 and
$103,805 respectively.
5. CONCENTRATION OF CREDIT RISK
The Funds invest substantially all of their assets in a diversified portfolio of
debt obligations issued by states, territories and possessions of the
62
United States and by the District of Columbia, and by their political
subdivisions and duly constituted authorities. NYTFI, CITF and NJTFI primarily
invest in issuers in the States of New York, California and New Jersey,
respectively. TFI invested approximately 21.0% of its net assets in issuers in
New York State. The issuer's abilities to meet their obligations may be affected
by economic or political developments in a specific state or region.
6. TRUSTEE COMPENSATION
The Funds have adopted an unfunded noncontributory defined benefit pension plan
covering all independent trustees of the Funds who will have served as an
independent trustee for at least five years at the time of retirement. Benefits
under this plan are based on compensation and years of service. Pension expenses
for the period from September 1, 2000 to May 15, 2001, included in Trustees Fees
in the Statement of Operations were as follows (in thousands):
PENSION
EXPENSES
---------------------------------------------------------------------------------------------
TFI $8
ITFI 7
NYTFI 3
NJTFI 1
CITF --
On February 22, 2001, the Board of Trustees voted to terminate the Plan,
effective May 15, 2001, and in furtherance of this determination agreed to pay
Trustees an amount equal, in the aggregate, to $10.95 million, of which $5.3
million had been previously accrued by the Chase Vista Funds. The remaining
$5.65 million was reimbursed by Chase on May 16, 2001. Certain of the trustees
have elected to defer receipt of such amount pursuant to a deferred compensation
plan. The amount of the Chase reimbursement and the amounts rolled into the
deferred compensation plan are listed below (in thousands):
CHASE DEFERRED
FUND NAME REIMBURSEMENT COMPENSATION ROLLOVER
---------------------------------------------------------------------------------------------
TFI $101 $162
ITFI 76 121
NYTFI 50 79
NJTFI 8 13
CITF 4 6
7. BANK BORROWINGS
The Funds may borrow money for temporary or emergency purposes. Any borrowings
representing more than 5% of a Fund's total assets must be repaid before the
Fund may make additional investments. The funds have entered into an agreement,
enabling them to participate
63
with other JPMorgan Funds in an unsecured line of credit with a syndicate of
banks, which permits borrowings up to $350 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
0.10% 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. Borrowings are payable on demand.
The Funds had no borrowings outstanding as of August 31, 2001, nor at any time
during the year.
8. REORGANIZATIONS
On February 16, 2001, TFI and NYTFI (the "Acquiring Funds") acquired all the net
assets of Chase Vista Tax Free Income Fund ("CVTFI") and Chase Vista New York
Tax Free Income Fund ("CVNYTFI") (collectively, the "Target Funds"),
respectively, pursuant to Reorganization Plans approved by the Target Funds'
shareholders on January 26, 2001. The transactions were structured for tax
purposes to qualify as tax-free reorganizations under the Internal Revenue Code.
Under each Reorganization Plan, shareholders of the Target Funds received shares
in the Acquiring Funds with a value equal to their holdings in the Target Funds.
Holders of Class A Shares in the Target Funds received Class A Shares in the
Acquiring Funds and holders of Class B Shares in the Target Funds received Class
B Shares in the Acquiring Funds.
The following is a summary of shares outstanding, net assets, net asset values
per share and net unrealized appreciation immediately before and after the
reorganization:
BEFORE AFTER BEFORE AFTER
REORGANIZATION REORGANIZATION REORGANIZATION REORGANIZATION
-------------------------- -------------- -------------------------- ---------------
CVTFI TFI TFI CVNYTFI NYTFI NYTFI
------------ ------------ -------------- ------------ ------------ ---------------
Class A
Shares 4,211,871 8,194,617 6,653,356 10,754,108
Net Assets $ 52,784,038 $ 52,784,038 $ 77,620,280 $ 77,620,280
Net Asset
Value $ 12.53 $ 6.44 $ 11.67 $ 7.22
Class B
Shares 832,033 1,609,734 1,088,287 1,754,524
Net Assets $ 10,370,788 $ 10,370,788 $ 12,669,055 $ 12,669,055
Net Asset
Value $ 12.46 $ 6.44 $ 11.64 $ 7.22
Class I
Shares 122,398,528 122,398,528 39,361,372 39,361,372
Net Assets $788,020,648 $788,020,648 $284,263,522 $284,263,522
Net Asset
Value $ 6.44 $ 6.44 $ 7.22 $ 7.22
Net Unrealized
Appreciation $ 2,198,910 $ 39,531,740 $ 41,730,650 $ 2,920,739 $ 13,199,123 $ 16,119,862
64
9. CORPORATE EVENT
The merger of J.P. Morgan & Co. Incorporated with and into The Chase Manhattan
Corporation (renamed J.P. Morgan Chase & Co.), the parent of the Funds' Adviser,
JPMFAM, was consummated on December 31, 2000. JPMFAM continues to serve as the
Funds' Adviser.
10. SUBSEQUENT EVENTS
Prior to the open of business on September 10, 2001, ITFI, NYTFI and J.P. Morgan
California Bond Fund ("CBF") (the "Acquiring Funds") acquired all the net assets
of J.P. Morgan Tax Exempt Bond Fund ("TEBF"), J.P. Morgan Institutional Tax
Exempt Bond Fund ("ITEBF"), J.P. Morgan New York Tax Exempt Bond Fund
("NYTEBF"), J.P. Morgan Institutional New York Tax Exempt Bond Fund ("INYTEBF")
and CITF (collectively, the "Target Funds"), as shown in the tables below,
pursuant to the Plan of Reorganization approved by the Target Funds'
shareholders on July 3, 2001 and July 25, 2001. The transactions were structured
for tax purposes to qualify as tax-free reorganizations under the Internal
Revenue Code. Under each Reorganization Plan, shareholders of the Target Funds
received shares in the Acquiring Funds with a value equal to their holdings in
the Target Funds. Shareholders of TEBF and NYTEBF received Select Shares
(formerly Institutional Shares) of the Acquiring Funds, shareholders of ITEBF
and INYTEBF received Institutional Shares of the Acquiring Funds and holders of
Class A Shares in CITF received Class A Shares in CBF.
The following is a summary of Shares Outstanding, Beneficial Interest
Outstanding, Net Assets, Net Asset Value Per Share and Net Unrealized
Appreciation immediately before and after the Reorganizations:
JPMORGAN INTERMEDIATE
TAX FREE INCOME FUND REORGANIZATION
---------------------------------------------------------------------------
BENEFICIAL NET ASSET NET
INTEREST SHARES VALUE UNREALIZED
OUTSTANDING OUTSTANDING NET ASSETS PER SHARE APPRECIATION
----------- ----------- -------------- --------- ------------
Target Funds
J.P. Morgan Tax Exempt
Bond Fund 29,590,258 $ 353,981,523 $11.96 $ 19,565,844
J.P. Morgan Institutional
Tax Exempt Bond Fund 52,587,469 $ 552,679,323 $10.51 $ 23,465,790
Acquiring Fund
JPMorgan Intermediate
Tax Free Income Fund $ 39,281,252
Institutional Class
(Renamed Select) 66,353,086 $ 725,783,509 $10.94
Post Reorganization
JPMorgan Intermediate
Tax Free Income Fund $ 82,312,886
Select Class 98,702,216 $1,079,765,032 $10.94
Institutional Class 50,520,503 $ 552,679,323 $10.94
65
JPMORGAN NEW YORK
INTERMEDIATE TAX FREE INCOME FUND REORGANIZATION
-------------------------------------------------------------------------
BENEFICIAL NET ASSET NET
INTEREST SHARES VALUE UNREALIZED
OUTSTANDING OUTSTANDING NET ASSETS PER SHARE APPRECIATION
----------- ----------- ------------ --------- ------------
Target Funds
J.P. Morgan New York
Tax Exempt Bond Fund 14,665,092 $159,183,754 $10.85 $ 6,079,214
J.P. Morgan Institutional
New York Tax Exempt
Bond Fund 28,061,630 $307,395,012 $10.95 $ 8,950,542
Acquiring Fund
JPMorgan New York
Intermediate Tax Free
Income Fund $ 21,041,190
Class A 16,630,782 $121,763,195 $ 7.32
Class B 1,614,640 $ 11,829,231 $ 7.33
Institutional Class
(Renamed Select) 40,979,532 $300,267,551 $ 7.33
Post Reorganization
JPMorgan New York
Intermediate Tax Free
Income Fund $ 36,070,946
Class A 16,630,782 $121,763,195 $ 7.32
Class B 1,614,640 $ 11,829,231 $ 7.33
Select Class 62,687,070 $459,451,305 $ 7.33
Institutional Class 41,920,170 $307,395,012 $ 7.33
JPMORGAN CALIFORNIA BOND FUND REORGANIZATION
--------------------------------------------------------
NET ASSET NET
SHARES VALUE UNREALIZED
OUTSTANDING NET ASSETS PER SHARE APPRECIATION
----------- ------------ --------- ------------
Target Funds
JPMorgan California Intermediate
Tax Free Fund $1,449,626
Class A 2,257,417 $ 23,318,969 $10.33
Acquiring Fund
J. P. Morgan California Bond Fund $8,202,064
Select Class 2,891,220 $ 31,511,432 $10.90
Institutional Class 13,011,529 $139,461,460 $10.72
Post Reorganization
JPMorgan California Bond Fund $9,651,690
Class A 2,139,369 $ 23,318,969 $10.90
Select Class 2,891,220 $ 31,511,432 $10.90
Institutional Class 13,011,529 $139,461,460 $10.72
66
10. CAPITAL SHARE TRANSACTIONS
Capital share transactions were as follows for the periods presented (amounts in
thousands):
TAX FREE INCOME FUND
-----------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS I
-----------------------------------------------------------------------------------------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-----------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2001*
-----------------------------------------------------------------------------------------------------------
Shares sold $ 46,987 7,317 $ 1,544 241 $ 94,888 14,899
Shares issued in connection
with Fund merger (Note 8) 52,784 8,195 10,371 1,610 -- --
Shares issued in reinvestment
of distributions 904 140 105 16 78 12
Shares redeemed (43,322) (6,738) (4,520) (704) (87,996) (13,775)
-----------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 57,353 8,914 $ 7,500 1,163 $ 6,970 1,136
===========================================================================================================
YEAR ENDED AUGUST 31, 2000
-----------------------------------------------------------------------------------------------------------
Shares sold $ 94,232 15,513
Shares issued in reinvestment
of distributions 55 9
Shares redeemed (93,114) (15,332)
-----------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 1,173 190
===========================================================================================================
* For Class A and B Shares, from commencement of offering on February 16, 2001.
INTERMEDIATE TAX FREE INCOME FUND
----------------------------------------------------------------------------------------
CLASS I
----------------------------------------------------------------------------------------
AMOUNT SHARES
----------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2001
----------------------------------------------------------------------------------------
Shares sold $ 75,543 7,086
Shares issued in reinvestment of distributions 51 5
Shares redeemed (75,379) (7,081)
----------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 215 10
========================================================================================
YEAR ENDED AUGUST 31, 2000
----------------------------------------------------------------------------------------
Shares sold $ 66,780 6,521
Shares issued in reinvestment of distributions 3,806 372
Shares redeemed (107,611) (10,502)
----------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (37,025) (3,609)
========================================================================================
67
NEW YORK INTERMEDIATE TAX FREE INCOME FUND
---------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS I
---------------------------------------------------------------------------------------------------------------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2001*
---------------------------------------------------------------------------------------------------------------------------
Shares sold $ 51,962 7,162 $ 2,343 324 $ 53,130 7,409
Shares issued in connection with
Fund merger (Note 8) 77,620 10,754 12,669 1,754 -- --
Shares issued in reinvestment of
distributions 1,193 165 129 18 12 2
Shares redeemed (15,434) (2,141) (3,469) (481) (42,883) (5,999)
---------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 115,341 15,940 $ 11,672 1,615 $ 10,259 1,412
===========================================================================================================================
YEAR ENDED AUGUST 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Shares sold $ 42,794 6,259
Shares issued in reinvestment of
distributions 89 13
Shares redeemed (64,427) (9,421)
---------------------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares
outstanding $ (21,544) (3,149)
===========================================================================================================================
* For Class A and B Shares, from commencement of offering on February 16, 2001.
NEW JERSEY TAX FREE INCOME FUND
--------------------------------------------------------------------------------------------------
CLASS I
--------------------------------------------------------------------------------------------------
AMOUNT SHARES
--------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2001
--------------------------------------------------------------------------------------------------
Shares sold $ 15,530 1,557
Shares issued in reinvestment of distributions 13 1
Shares redeemed (10,512) (1,049)
--------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 5,031 509
==================================================================================================
YEAR ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------------------------
Shares sold $ 12,035 1,271
Shares issued in reinvestment of distributions 6 1
Shares redeemed (8,140) (862)
--------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 3,901 410
==================================================================================================
68
CALIFORNIA INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------------------------------
AMOUNT SHARES
--------------------------------------------------------------------------------------------------
YEAR ENDED AUGUST 31, 2001
--------------------------------------------------------------------------------------------------
Shares sold $ 5,854 572
Shares issued in reinvestment of distributions 421 41
Shares redeemed (3,071) (303)
--------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 3,204 310
==================================================================================================
YEAR ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------------------------
Shares sold $ 653 67
Shares issued in reinvestment of distributions 591 61
Shares redeemed (3,275) (338)
--------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $(2,031) (210)
==================================================================================================
69
JPMORGAN FUNDS
FINANCIAL HIGHLIGHTS
TAX FREE INCOME FUND @
----------------------------------------------------------------------------
CLASS A CLASS B INSTITUTIONAL CLASS
------- ------- ----------------------------------------------------
2/16/01^ 2/16/01^ YEAR ENDED 1/1/97*
THROUGH THROUGH ---------------------------------------- THROUGH
8/31/01 8/31/01 8/31/01 8/31/00 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- ------- ------- -------
Per share operating performance:
Net asset value, beginning of period $ 6.44 $ 6.44 $ 6.25 $ 6.19 $ 6.60 $ 6.45 $ 6.39
------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.15 0.12 0.29 0.30 0.34 0.35 0.24
Net gains or losses in securities (both
realized and unrealized) 0.13 0.14 0.32 0.06 (0.37) 0.21 0.06
------- ------- ------- ------- ------- ------- -------
Total from investment operations 0.28 0.26 0.61 0.36 (0.03) 0.56 0.30
------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income 0.15 0.12 0.29 0.30 0.34 0.35 0.24
Distributions from capital gains -- -- -- -- 0.04 0.06 --
------- ------- ------- ------- ------- ------- -------
Total distributions 0.15 0.12 0.29 0.30 0.38 0.41 0.24
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 6.57 $ 6.58 $ 6.57 $ 6.25 $ 6.19 $ 6.60 $ 6.45
======= ======= ======= ======= ======= ======= =======
Total return(1) 4.46% 4.13% 10.00% 6.11% (0.63%) 8.99% 4.86%
Ratios/supplemental data:
Net assets, end of period (millions) $ 59 $ 7 $ 798 $ 753 $ 744 $ 761 $ 677
Ratios to average net assets:#
Expenses 0.75% 1.64% 0.74% 0.57% 0.03% 0.02% 0.02%
Net investment income 4.55% 3.66% 4.56% 4.98% 5.25% 5.39% 5.73%
Expenses without waivers, reimbursements
and earnings credits 1.23% 1.74% 0.76% 0.66% 0.50% 0.50% 0.49%
Net investment income without waivers,
reimbursements and earnings credits 4.07% 3.56% 4.54% 4.89% 4.78% 4.91% 5.26%
Portfolio turnover rate 57% 57% 57% 35% 39% 47% 48%
------------------------------------------------------------------------------------------------------------------------------
@ Formerly Chase Vista Select Tax Free Income Fund.
* Commencement of operations.
^ Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
70
INTERMEDIATE TAX FREE INCOME FUND @
--------------------------------------------------------
INSTITUTIONAL CLASS
--------------------------------------------------------
YEAR ENDED 1/1/97*
------------------------------------------ THROUGH
8/31/01 8/31/00 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- -------
Per share operating performance:
Net asset value, beginning of period $ 10.46 $ 10.42 $ 10.93 $ 10.85 $ 10.75
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.44 0.46 0.52 0.56 0.39
Net gains or losses in securities (both
realized and unrealized) 0.52 0.10 (0.39) 0.29 0.10
------- ------- ------- ------- -------
Total from investment operations 0.96 0.56 0.13 0.85 0.49
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income 0.44 0.46 0.52 0.56 0.39
Distributions from capital gains -- 0.06 0.12 0.21 --
------- ------- ------- ------- -------
Total distributions 0.44 0.52 0.64 0.77 0.39
------- ------- ------- ------- -------
Net asset value, end of period $ 10.98 $ 10.46 $ 10.42 $ 10.93 $ 10.85
======= ======= ======= ======= =======
Total return 9.35% 5.54% 1.15% 8.08% 4.58%
Ratios/supplemental data:
Net assets, end of period (millions) $ 728 $ 694 $ 729 $ 717 $ 631
Ratios to average net assets:#
Expenses 0.74% 0.57% 0.03% 0.02% 0.02%
Net investment income 4.10% 4.49% 4.81% 5.10% 5.40%
Expenses without waivers, reimbursements
and earnings credits 0.75% 0.66% 0.50% 0.50% 0.50%
Net investment income without waivers,
reimbursements and earnings credits 4.09% 4.40% 4.34% 4.62% 4.92%
Portfolio turnover rate 43% 60% 62% 71% 60%
-----------------------------------------------------------------------------------------------------
@ Formerly Chase Vista Select Intermediate Tax Free Income Fund.
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
71
NEW YORK INTERMEDIATE TAX FREE INCOME FUND @
--------------------------------------------------------------------------
CLASS A CLASS B INSTITUTIONAL CLASS
------- ------- ----------------------------------------------------
2/16/01^ 2/16/01^ YEAR ENDED 1/1/97*
THROUGH THROUGH ----------------------------------------- THROUGH
8/31/01 8/31/01 8/31/01 8/31/00 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- ------- ------- -------
Per share operating performance:
Net asset value, beginning of period $ 7.22 $ 7.22 $ 7.01 $ 6.91 $ 7.29 $ 7.15 $ 7.09
------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.15 0.12 0.29 0.31 0.35 0.37 0.26
Net gains or losses in securities (both
realized and unrealized) 0.15 0.16 0.37 0.10 (0.31) 0.21 0.06
------- ------- ------- ------- ------- ------- -------
Total from investment operations 0.30 0.28 0.66 0.41 0.04 0.58 0.32
------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income 0.15 0.12 0.29 0.31 0.35 0.37 0.26
Distributions from capital gains -- -- -- -- 0.07 0.07 --
------- ------- ------- ------- ------- ------- -------
Total distributions 0.15 0.12 0.29 0.31 0.42 0.44 0.26
------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 7.37 $ 7.38 $ 7.38 $ 7.01 $ 6.91 $ 7.29 $ 7.15
======= ======= ======= ======= ======= ======= =======
Total return(1) 4.26% 3.91% 9.68% 6.13% 0.38% 8.37% 4.62%
Ratios/supplemental data:
Net assets, end of period (millions) $ 117 $ 12 $ 302 $ 277 $ 295 $ 283 $ 235
Ratios to average net assets:#
Expenses 0.75% 1.64% 0.75% 0.58% 0.04% 0.03% 0.03%
Net investment income 4.10% 3.21% 4.10% 4.48% 4.85% 5.08% 5.52%
Expenses without waivers, reimbursements
and earnings credits 1.21% 1.72% 0.79% 0.70% 0.53% 0.53% 0.53%
Net investment income without waivers,
reimbursements and earnings credits 3.64% 3.13% 4.06% 4.36% 4.36% 4.58% 5.02%
Portfolio turnover rate 33% 33% 33% 46% 39% 66% 32%
----------------------------------------------------------------------------------------------------------------------
@ Formerly Chase Vista Select New York Intermediate Tax Free Income Fund.
* Commencement of operations.
^ Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
72
NEW JERSEY TAX FREE INCOME FUND @
------------------------------------------------------------
INSTITUTIONAL CLASS
------------------------------------------------------------
YEAR ENDED 1/1/97*
----------------------------------------------- THROUGH
8/31/01 8/31/00 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- -------
Per share operating performance:
Net asset value, beginning of period $ 9.73 $ 9.61 $10.24 $10.04 $ 9.99
------ ------ ------ ------ ------
Income from investment operations:
Net investment income 0.42 0.44 0.49 0.52 0.37
Net gains or losses in securities (both
realized and unrealized) 0.60 0.12 (0.45) 0.24 0.05
------ ------ ------ ------ ------
Total from investment operations 1.02 0.56 0.04 0.76 0.42
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income 0.42 0.44 0.49 0.52 0.37
Distributions from capital gains -- -- 0.18 0.04
------ ------ ------ ------ ------
Total distributions 0.42 0.44 0.67 0.56 0.37
------ ------ ------ ------ ------
Net asset value, end of period $10.33 $ 9.73 $ 9.61 $10.24 $10.04
====== ====== ====== ====== ======
Total return 10.69% 6.08% 0.37% 7.82% 4.20%
Ratios/supplemental data:
Net assets, end of period (millions) $ 82 $ 73 $ 68 $ 71 $ 64
Ratios to average net assets:#
Expenses 0.75% 0.59% 0.04% 0.02% 0.02%
Net investment income 4.18% 4.67% 4.94% 5.16% 5.52%
Expenses without waivers, reimbursements
and earnings credits 0.93% 0.82% 0.63% 0.63% 0.57%
Net investment income without waivers,
reimbursements and earnings credits 4.00% 4.44% 4.35% 4.55% 4.97%
Portfolio turnover rate 48% 48% 24% 60% 14%
---------------------------------------------------------------------------------------------------------
@ Formerly Chase Vista Select New Jersey Tax Free Income Fund.
* Commencement of operations.
# Short periods have been annualized.
See notes to financial statements.
73
CALIFORNIA INTERMEDIATE TAX FREE FUND @
-------------------------------------------------------
CLASS A
-------------------------------------------------------
YEAR ENDED
-------------------------------------------------------
8/31/01 8/31/00 8/31/99 8/31/98 8/31/97
------- ------- ------- ------- -------
Per share operating performance:
Net asset value, beginning of period $ 10.00 $ 9.79 $ 10.29 $ 10.07 $ 9.81
------- ------- ------- ------- -------
Income from investment operations:
Net investment income 0.43 0.42 0.41 0.45 0.46
Net gains or losses in securities (both
realized and unrealized) 0.45 0.31 (0.37) 0.32 0.26
------- ------- ------- ------- -------
Total from investment operations 0.88 0.73 0.04 0.77 0.72
------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income 0.43 0.42 0.41 0.45 0.33
Distributions from capital gains -- 0.10 0.13 0.10 0.13
------- ------- ------- ------- -------
Total distributions 0.43 0.52 0.54 0.55 0.46
------- ------- ------- ------- -------
Net asset value, end of period $ 10.45 $ 10.00 $ 9.79 $ 10.29 $ 10.07
======= ======= ======= ======= =======
Total return(1) 8.98% 7.83% 0.28% 7.81% 7.46%
Ratios/supplemental data:
Net assets, end of period (millions) $ 23 $ 19 $ 21 $ 24 $ 26
Ratios to average net assets:#
Expenses 0.60% 0.60% 0.60% 0.60% 0.60%
Net investment income 4.20% 4.35% 3.99% 4.38% 4.65%
Expenses without waivers, reimbursements
and earnings credits 1.57% 1.55% 1.46% 1.44% 1.33%
Net investment income without waivers,
reimbursements and earnings credits 3.23% 3.40% 3.13% 3.54% 3.92%
Portfolio turnover rate 39% 116% 111% 44% 66%
------------------------------------------------------------------------------------------------------
@ Formerly Chase Vista California Intermediate Tax Free Fund.
(1) Total return figures do not include the effect of any front-end sales load.
# Short periods have been annualized.
See notes to financial statements.
74
JPMORGAN FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Mutual
Fund Select Trust and Mutual Fund Trust
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of JPMorgan Tax Free Income Fund,
JPMorgan New York Intermediate Tax Free Income Fund, JPMorgan New Jersey Tax
Free Income Fund, JPMorgan Intermediate Tax Free Income Fund and JPMorgan
California Intermediate Tax Free Fund (separate portfolios of Mutual Fund Select
Trust and Mutual Fund Trust, hereafter referred to as the "funds") at August 31,
2001, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the five years in the period then
ended, in conformity with accounting principles generally accepted in the United
States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 2001 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
October 17, 2001
75
JPMORGAN FUNDS
SPECIAL MEETING OF SHAREHOLDERS (unaudited)
A Special Meeting of Shareholders was held on January 26, 2001 at One Chase
Square, Rochester, New York 14643 for purposes of approving an Agreement and
Plan of Reorganization (the "Reorganization Plan") between Chase Vista Select
New York Intermediate Tax Free Income Fund and Chase Vista Select Tax Free
Income Fund (the "acquiring funds"), both a series of Mutual Fund Select Trust
and Chase Vista New York Tax Free Income Fund and Chase Vista Tax Free Income
Fund (the "acquired funds"), both a series of Mutual Fund Trust. Under the
Reorganization Plan, the acquired funds would transfer all of their asset and
liabilities to the acquiring funds in a tax-free reorganization. In exchange,
shareholders of the acquired funds would receive shares of the acquiring funds
with a value equal to their respective holdings in the acquired funds. A
majority of shareholders of Chase Vista New York Tax Free Income Fund and Chase
Vista Tax Free Income Fund, respectively, approved the Reorganization Plan by
the following votes:
CHASE VISTA NEW YORK CHASE VISTA TAX FREE
TAX FREE INCOME FUND INCOME FUND
--------------------------------------------------------------------------------
For 3,823,042 2,529,246
Against 346,885 58,795
Abstain 149,156 74,968
A Special Meeting of Shareholders was held on July 3, 2001 and July 25, 2001 at
1211 Avenue of the Americas, New York, New York 10036 for purposes of approving
an Agreement and Plan of Reorganization (the "Reorganization Plan") between the
following series of Mutual Fund Select Trust, Mutual Fund Trust, J.P. Morgan
Funds, J.P. Morgan Institutional Funds and J.P. Morgan Series Trust:
ACQUIRING FUND: TARGET FUND(S):
--------------------------------------------------------------------------------------------
JPMorgan Intermediate Tax Free Income Fund J.P. Morgan Tax Exempt Bond Fund
J.P. Morgan Institutional Tax Exempt
Bond Fund
JPMorgan New York Intermediate Tax J.P. Morgan New York Tax Exempt Bond Fund
Free Income Fund J.P. Morgan Institutional New York Tax Exempt
Bond Fund
J.P. Morgan California Bond Fund JPMorgan California Intermediate Tax
Free Fund
Under the Reorganization Plan, the Target Funds would transfer all of their
asset and liabilities to the Acquiring Funds in a tax-free reorganization. In
exchange, shareholders of the Target Funds would receive shares of the Acquiring
Funds with a value equal to their respective holdings in the Target Funds. A
majority of shareholders of the J.P. Morgan Tax Exempt Bond Fund, J.P. Morgan
Institutional Tax Exempt Bond Fund, J.P. Morgan New York Tax Exempt Bond Fund,
J.P. Morgan Institutional New York Tax Exempt Bond Fund and J.P. Morgan
California
76
Intermediate Tax Free Fund, respectively, approved the Reorganization Plan by
the following votes:
J.P. MORGAN TAX J.P. MORGAN INSTITUTIONAL TAX
EXEMPT BOND FUND EXEMPT BOND FUND
--------------------------------------------------------------------------------
For 200,173,087 314,871,321
Against 3,642,480 2,440,143
Abstain 4,657,740 341,233
J.P. MORGAN NEW YORK J.P. MORGAN
TAX EXEMPT INSTITUTIONAL NEW YORK
BOND FUND TAX EXEMPT BOND FUND
--------------------------------------------------------------------------------
For 79,423,633 128,913,428
Against 2,299,866 337,672
Abstain 1,457,629 259,372
JPMORGAN CALIFORNIA
INTERMEDIATE TAX FREE FUND
--------------------------------------------------------------------------------
For 1,262,724
Against 6,718
Abstain 27,685
A Special Meeting of Shareholders was held on July 3, 2001 and July 25, 2001 at
1211 Avenue of the Americas, New York, New York 10036 for purposes of approving
the election of eight Trustees. A majority of shareholders of Mutual Fund Select
Trust and JPMorgan California Intermediate Tax Free Fund, respectively, approved
the election of each Trustee by the following votes:
MUTUAL FUND SELECT TRUST:
AFFIRMATIVE NEGATIVE
--------------------------------------------------------------------------------
William J. Armstrong 214,421,197 1,809,368
Roland R. Eppley 214,024,223 2,206,342
Ann Maynard Gray 214,421,865 1,808,700
Matthew Healey 214,419,997 1,810,568
Fergus Reid, III 214,022,426 2,208,139
James J. Schonbachler 214,421,865 1,808,700
Leonard M. Spalding, Jr. 214,420,959 1,809,606
H. Richard Vartabedian 214,413,522 1,817,043
JPMORGAN CALIFORNIA INTERMEDIATE TAX FREE FUND:
AFFIRMATIVE NEGATIVE
-------------------------------------------------------------------------------
William J. Armstrong 1,404,119 17,810
Roland R. Eppley 1,400,984 20,945
Ann Maynard Gray 1,404,119 17,810
Matthew Healey 1,404,119 17,810
Fergus Reid, III 1,404,119 17,810
James J. Schonbachler 1,400,984 20,945
Leonard M. Spalding, Jr. 1,404,119 17,810
H. Richard Vartabedian 1,400,984 20,945
77
TAX LETTER (UNAUDITED)
JPMORGAN TAX FREE INCOME FUND (TFI)
JPMORGAN INTERMEDIATE TAX FREE INCOME FUND (ITFI)
JPMORGAN NEW YORK INTERMEDIATE TAX FREE INCOME FUND (NYTFI)
JPMORGAN NEW JERSEY TAX FREE INCOME FUND (NJTFI)
JPMORGAN CALIFORNIA INTERMEDIATE TAX FREE FUND ("CITF")
Certain tax information regarding the JPMorgan Mutual Funds is required to be
provided to shareholders based upon the Funds income and distributions for the
taxable year ended August 31, 2001. The information and distributions reported
in this letter may differ from the information and distributions taxable to the
shareholders for the calendar year ending December 31, 2001. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 2001 will be received under separate cover.
For the fiscal year ended August 31, 2001:
- The dividends paid from net investment income are 99.93%, 100.00%, 99.96%,
100.00% and 100.00% exempt from Federal income tax for TFI, ITFI, NYTFI,
NJTFI and CITF, respectively.
- For shareholders who are subject to the Alternative Minimum Tax, the
percentage of income from private activity bonds issued after August 7,
1986, which may be considered a tax preference item, was 6.31%, 4.67%,
3.17%, 7.78% and 2.54% for TFI, ITFI, NYTFI, NJTFI and CITF, respectively.
78
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JPMorgan
FAMILY OF FUNDS
U.S. EQUITY FUNDS
Balanced Fund
Capital Growth Fund
Core Equity Fund
Disciplined Equity Fund
Diversified Fund
Dynamic Small Cap Fund
Equity Growth Fund
Equity Growth Fund II
Equity Income Fund
The Growth Fund of Washington
Large Cap Growth Fund
Market Neutral Fund
Mid Cap Value Fund
Small Cap Growth Fund
SmartIndex(TM) Fund
U.S. Equity Fund
U.S. Small Company Fund
U.S. Small Company Opportunities Fund
SELECT FUNDS
Select Balanced Fund
Select Equity Income Fund
Select Growth & Income Fund
Select Large Cap Equity Fund
Select Large Cap Growth Fund
Select Mid Cap Equity Fund
Select Small Cap Equity Fund
TAX AWARE FUNDS
Fleming Tax Aware International
Opportunities Fund
Tax Aware Disciplined Equity Fund
Tax Aware Small Company
Opportunities Fund
Tax Aware U.S. Equity 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 Japan Fund
SPECIALTY FUNDS
Focus Fund
Global 50 Fund
Global Healthcare Fund
H&Q IPO & Emerging Company Fund
H&Q Technology Fund
FIXED INCOME FUNDS
Bond Fund
Bond Fund II
Fleming Emerging Markets Debt Fund
Global Strategic Income Fund
Intermediate Bond 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
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
ANNUAL REPORT
INVESTMENT ADVISER
JPMorgan Fleming Asset
Management
ADMINISTRATOR,
SHAREHOLDER AND
FUND SERVICING AGENT
AND CUSTODIAN
The Chase Manhattan Bank
DISTRIBUTOR
J.P. Morgan Fund Distributors, Inc.
TRANSFER AGENT
DST Systems, Inc.
LEGAL COUNSEL
Simpson Thacher & Bartlett
INDEPENDENT
ACCOUNTANTS
PricewaterhouseCoopers LLP
JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan Bank. 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.
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., 2001 All Rights Reserved. October 2001
AN-TF-1001