For purposes of the Fund’s 80% policy, the investment grade U.S. dollar denominated short-term fixed, variable and floating rate debt securities in which the Fund will invest will
carry a minimum short-term rating of P-2, A-2 or F2 or better by Moody’s Investors Service Inc.
(Moody’s), Standard & Poor’s Corporation (S&P), or Fitch Ratings (Fitch), respectively, or the equivalent by another nationally recognized statistical rating organization (NRSRO), or a minimum long-term rating of Baa3,
BBB–, or BBB– by Moody’s, S&P, or Fitch, respectively, or the equivalent by another NRSRO
at the time of investment or if such investments are unrated, deemed by J.P. Morgan Investment Management Inc.
(JPMIM or the adviser) to be of comparable quality at the time of investment. The Fund also may invest in
securities rated below investment grade (i.e., high yield bonds, also called junk bonds or non-investment grade
bonds) or the unrated equivalent. These securities generally are rated in the fifth or lower rating categories
(for example, BB+ or lower by S&P and Ba1 or lower by Moody’s). These securities generally offer a
higher yield than investment grade securities, but involve a high degree of risk. A security’s quality is
determined at the time of purchase and securities that are rated investment grade or the unrated equivalent may
be downgraded or decline in credit quality such that subsequently they would be deemed to be below investment
The Fund may invest a significant portion of its assets in mortgage-related and mortgage-backed, as well as restricted securities, at the adviser’s discretion. The asset-backed
securities in which the Fund may invest include “sub-prime” securities and collateralized loan
The Fund may use futures contracts in connection with its
principal strategies in certain market conditions in order to hedge various investments, for risk management
purposes and/or to seek to increase income or gain to the Fund.
The Fund is not a money market fund and is not subject to the special regulatory requirements (including
maturity and credit quality constraints) designed to enable money market funds to maintain a stable share
As part of its principal investment strategy and for temporary defensive purposes, any portion of the Fund’s total assets may be invested in cash, money market funds and cash
Investment Process: Because the Fund is not managed to a benchmark, J.P. Morgan Investment Management Inc. (JPMIM or the adviser) has broad discretion to shift the Fund’s
exposure to strategies and sectors based on changing market conditions and its view of the best mix of
investment opportunities. The adviser allocates the Fund’s assets among a range of sectors based on
strategic positioning and other tactical considerations. In buying and selling investments for the Fund, the
adviser looks for market sectors and individual securities that it believes will perform well over time. The
adviser selects individual securities after performing a risk/reward analysis that includes an evaluation of
their characteristics including income, interest rate risk, credit risk and the complex legal and technical structure of the transaction. As part of its security selection strategy, the adviser also evaluates whether environmental, social and
governance factors could have material negative or positive impact on the cash flows or risk profiles of many
companies in the universe in which the Fund may invest. These determinations may not be conclusive and
securities of issuers that may be negatively
impacted by such factors may be purchased and retained by the Fund while the Fund may divest or not invest in
securities of issuers that may be positively impacted by such factors.
The Fund’s Main Investment Risks
The Fund is subject to management risk and may not achieve its objective if the adviser’s expectations
regarding particular instruments or markets are not met.
An investment in this Fund or any other fund may not provide a complete investment program. The
suitability of an investment in the Fund should be considered based on the investment objective, strategies and
risks described in this prospectus, considered in light of all of the other investments in your portfolio, as
well as your risk tolerance, financial goals and time horizons. You may want to consult with a financial
advisor to determine if this Fund is suitable for you.
The Fund is subject to the main risks noted below, any of which may adversely affect the Fund’s net
asset value (NAV), market price, performance and ability to meet its investment objective.
General Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers
in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to
securities in general financial markets, a particular financial market or other asset classes due to a number
of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes,
tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control
programs and related geopolitical events. In addition, the value of the Fund’s investments may be
negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural
disasters or events, country instability, and infectious disease epidemics or pandemics.
For example, the outbreak of COVID-19, a novel coronavirus disease, has negatively affected economies, markets and individual companies throughout the world, including those in
which the Fund invests. The effects of this pandemic to public health and business and market conditions,
including exchange trading suspensions and closures may continue to have a significant negative impact on the
performance of the Fund’s investments, increase the Fund’s volatility, negatively impact the
Fund’s arbitrage and pricing mechanisms, exacerbate pre-existing political, social and economic risks to
the Fund, and negatively impact broad segments of businesses and populations. The Fund’s operations may
be interrupted as a result, which may contribute to the negative impact on investment performance. In addition,
governments, their regulatory agencies, or self-regulatory organizations may take actions in response to the
pandemic that affect the instruments in which the Fund invests, or the issuers of such instruments, in ways
that could have a significant negative impact on the Fund’s investment performance. The full impact of
the COVID-19 pandemic, or other future epidemics or pandemics, is currently unknown.