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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04236
JPMorgan Trust II
(Exact name of registrant as specified in charter)
270 Park Avenue
New York, NY 10017
(Address of principal executive offices) (Zip code)
Frank J. Nasta
270 Park Avenue
New York, NY 10017
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (800) 480-4111
Date of fiscal year end: October 31
Date of reporting period: November 1, 2015 through October 31, 2016
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
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| ITEM 1. | REPORTS TO STOCKHOLDERS. |
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
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Annual Report
J.P. Morgan International Equity Funds
October 31, 2016
JPMorgan Emerging Economies Fund
JPMorgan Emerging Markets Equity Fund
JPMorgan Emerging Markets Equity Income Fund
JPMorgan Global Research Enhanced Index Fund
JPMorgan Global Unconstrained Equity Fund
JPMorgan International Equity Fund
JPMorgan International Equity Income Fund
JPMorgan International Opportunities Fund
JPMorgan International Research Enhanced Equity Fund
JPMorgan International Unconstrained Equity Fund
JPMorgan International Value Fund
JPMorgan Intrepid International Fund
Table of Contents
| CEO’s Letter | 1 | |||
| Market Overview | 2 | |||
| 3 | ||||
| 6 | ||||
| 9 | ||||
| 12 | ||||
| 14 | ||||
| 16 | ||||
| 18 | ||||
| 22 | ||||
| 25 | ||||
| 27 | ||||
| 30 | ||||
| 33 | ||||
| Schedules of Portfolio Investments | 36 | |||
| Financial Statements | 80 | |||
| Financial Highlights | 108 | |||
| Notes to Financial Statements | 132 | |||
| Report of Independent Registered Public Accounting Firm | 161 | |||
| Trustees | 162 | |||
| Officers | 164 | |||
| Schedule of Shareholder Expenses | 165 | |||
| Board Approval of Investment Advisory Agreements | 170 | |||
| Tax Letter | 176 | |||
Investments in a Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when a Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of a Fund or the securities markets. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Such views are not meant as investment advice and may not be relied on as an indication of trading intent on behalf of any Fund.
Prospective investors should refer to the Funds’ prospectus for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Funds Service Center at 1-800-480-4111 for a prospectus containing more complete information about a Fund, including management fees and other expenses. Please read it carefully before investing.
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November 30, 2016 (Unaudited)
Dear Shareholder,
Slow but positive growth in the global economy continued over the past twelve months even as financial markets absorbed two sharp downturns and central bank efforts to stimulate growth appeared to have decreasing effectiveness.
 |
“Investors who endured two financial market downturns during the past year were rewarded with generally positive returns in global equity and bond markets.” |
The U.S. economy continued to lead the rest of the world in growth and by the end of 2015, it had strengthened sufficiently that in December the U.S. Federal Reserve (the “Fed”) raised interest rates for the first time in a decade. Financial markets appeared to digest the Fed’s action with little disruption, but weak economic data coming out of China sent markets into a tailspin in the first week of 2016.
Fears about weakness in China’s economy receded and by March global financial markets were rebounding and oil prices had bounced back from mid-February lows. These events, along with further stimulus from the European Central Bank supported asset prices even as economic growth in Europe remained slow.
At the end of June, financial markets were shocked when British voters chose in favor of the U.K.’s exit from the European Union (E.U.). Leading up to the June 23rd referendum in the U.K., many economists, political pundits and investors expected the U.K.-wide referendum would end up in favor of remaining in the E.U. and when the results showed the opposite, the shock sent financial market volatility upward and equity prices downward. While global financial markets rebounded rather quickly, lingering uncertainty about the impact of the so-called Brexit on companies in both the U.K. and the E.U. proved a drag on select equities.
Meanwhile, growth in emerging market economies, particularly in Asia and Latin America, continued to outpace growth in developed market economies. The general recovery in commodities prices, steady economic growth in China, political changes and favorable currency exchange rates relative to the U.S. dollar all contributed to a favorable investment environment and asset valuations proved attractive to investors during the latter half of the reporting period.
By the end of the third quarter of 2016, gross domestic product growth in the E.U. held steady at 0.4%, while in the U.K. growth was 0.5% for the third quarter. In early October 2016, the International Monetary Fund trimmed its forecast for global growth by 0.1% to 3.1% for the full year 2016. The organization cited the drag from the U.K.’s Brexit vote and weaker-than-expected economic growth in the U.S. Meanwhile, the British pound fell to a 31-year low against the U.S. dollar in October after Prime Minister Theresa May said she would give official notice of separation from the E.U. in March 2017 and target 2019 for implementation. Elsewhere, the Turkish government in October extended the state of emergency that was imposed following a failed military coup in July 2016.
While the results of the U.S. election on November 8th initially surprised financial markets, President-elect Donald Trump’s conciliatory tone in his acceptance speech provided support for U.S. equities.
While President-elect Trump will not be inaugurated into office until January 20, 2017, voters, investors and economists have been left to wonder the extent to which he will carry out pledges made during the campaign, including labeling China a currency manipulator and renegotiating or withdrawing from the North American Free Trade Agreement.
Investors who endured two financial market downturns during the past year were rewarded with generally positive returns in global equity and bond markets. We believe the results clearly illustrate the prudence of holding a well-diversified portfolio and a long-term vision.
We look forward to managing your investment needs for years to come. Should you have any questions, please visit www.jpmorganfunds.com or contact the J.P. Morgan Funds Service Center at 1-800-480-4111.
Sincerely yours,
George C.W. Gatch
CEO, Investment Funds Management,
J.P. Morgan Asset Management
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 1 | ||||||
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J.P. Morgan International Equity Funds
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
Global financial markets generally weathered two distinct sell-offs and rebounded to provide positive returns over the twelve month reporting period amid continued economic stimulus from leading central banks. Financial markets appeared to absorb the U.S. Federal Reserve’s December 2015 interest rate increase — the first in a decade — with little disruption. But investor concerns about the health of China’s economy sparked a sell-off in global financial markets and led to the worst start of any year on record for U.S. equity prices.
By the end of March 2016, global prices for both equities and crude oil had rebounded from mid-February lows and emerging market equities in particular experienced a brief but significant rise in prices. In June 2016, British voters confounded the expectations of some and voted to exit the European Union. The unexpected result of the so-called Brexit referendum led to a sell-off in financial markets. Within days, financial markets recovered and volatility subsided.
Economic growth in China and other emerging market nations, firmness in commodities prices and attractive valuations drew investors to emerging market equities during the second half of the reporting period. In Europe, a sluggish economy and investor concerns about the long-term impact of the Brexit weighted down equity prices. During the reporting period, central bankers in Japan and Europe increased economic stimulus, which supported financial markets generally.
Notably, crude oil prices reached 15-monnth highs in October 2016 amid expectations that the Organization of Petroleum Exporting Countries would agree to production caps that would reduce global inventories. For the twelve months ended October 31, 2016, the Morgan Stanley Capital International Europe Australasia and Far East Index (net of foreign withholding tax) returned -3.23% and the Morgan Stanley Capital International Emerging Markets Index (net of foreign withholding tax) returned 9.27%.
| 2 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
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JPMorgan Emerging Economies Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | 5.93% | |||
| Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (net of foreign withholding taxes) | 9.27% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 1,779,712 | ||
INVESTMENT OBJECTIVE**
The JPMorgan Emerging Economies Fund (the “Fund”) seeks long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares underperformed the MSCI Emerging Markets Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
The Fund’s security selection and overweight position in the consumer staples sector and its security selection and underweight position in the financials sector were leading detractors from performance relative to the Benchmark. The Fund’s security selection in the information technology sector and its underweight position in the telecommunication services sector were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s underweight positions in Taiwan Semiconductor Manufacturing Co., Petroleo Brasileiro SA (“Petrobras”) and Banco Bradesco SA. Shares of Taiwan Semiconductor rose on better than expected earnings and strong demand from smartphone makers. Shares of Petrobras, Brazil’s state controlled oil and gas company that was not held in the Fund, rose on strengthening in global energy prices. Shares of Banco Bradesco, a Brazilian bank that was not held in the Fund, rose on expectations for a rebound in Brazil’s economy.
Leading individual contributors to relative performance included the Fund’s overweight positions in Banco do Brasil SA,
Netease Inc. and Hindustan Petroleum Corp. Shares of Banco do Brasil, a Brazilian banking and financial services company, rose on investor expectations for a rebound in Brazil’s economy. Shares of Netease, a Chinese provider of mobile games, rose on continued earnings growth and strong demand for recent game releases. Shares of Hindustan Petroleum, an Indian oil and gas company that was not held in the Benchmark, rose on a rise in global energy prices.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers used a combination of top-down and bottom-up research, seeking what they believed to be attractively priced countries, sectors and securities with positive catalysts. As a result of this process, the Fund’s largest average country exposures during the twelve months ended October 31, 2016, were to China, South Korea and Taiwan and its smallest average country exposures were to Chile, Egypt, Singapore and Indonesia. From a sector perspective, the Fund’s largest average weightings were in the financials, information technology and consumer discretionary sectors, while its smallest average weightings were in the real estate, telecommunications services and health care sectors.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 3 | ||||||
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JPMorgan Emerging Economies Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Industrial & Commercial Bank of China Ltd., Class H (China) | 2.0 | % | |||||
| 2. | Samsung Electronics Co., Ltd. (South Korea) | 1.9 | ||||||
| 3. | Tencent Holdings Ltd. (China) | 1.6 | ||||||
| 4. | NetEase, Inc., ADR (China) | 1.5 | ||||||
| 5. | Bank of China Ltd., Class H (China) | 1.3 | ||||||
| 6. | Polski Koncern Naftowy Orlen S.A. (Poland) | 1.3 | ||||||
| 7. | Alibaba Group Holding Ltd., ADR (China) | 1.2 | ||||||
| 8. | Largan Precision Co., Ltd. (Taiwan) | 1.2 | ||||||
| 9. | SK Hynix, Inc. (South Korea) | 1.2 | ||||||
| 10. | SK Innovation Co., Ltd. (South Korea) | 1.2 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| China | 21.8 | % | ||
| South Korea | 19.1 | |||
| Taiwan | 11.7 | |||
| Russia | 9.6 | |||
| Thailand | 6.4 | |||
| Brazil | 5.6 | |||
| Turkey | 4.4 | |||
| Hong Kong | 4.1 | |||
| India | 3.2 | |||
| Mexico | 2.8 | |||
| Poland | 2.7 | |||
| United Arab Emirates | 1.4 | |||
| Hungary | 1.4 | |||
| Malaysia | 1.4 | |||
| South Africa | 1.0 | |||
| Others (each less than 1.0%) | 1.3 | |||
| Short-Term Investment | 2.1 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 4 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
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AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | February 28, 2008 | |||||||||||||
With Sales Charge* | 0.08 | % | (1.73 | )% | (2.19 | )% | ||||||||
Without Sales Charge | 5.62 | (0.67 | ) | (1.58 | ) | |||||||||
CLASS C SHARES | February 28, 2008 | |||||||||||||
With CDSC** | 4.11 | (1.17 | ) | (2.08 | ) | |||||||||
Without CDSC | 5.11 | (1.17 | ) | (2.08 | ) | |||||||||
CLASS R5 SHARES | February 28, 2008 | 6.03 | (0.23 | ) | (1.14 | ) | ||||||||
CLASS R6 SHARES | September 1, 2015 | 6.25 | (0.21 | ) | (1.13 | ) | ||||||||
SELECT CLASS SHARES | February 28, 2008 | 5.93 | (0.43 | ) | (1.34 | ) | ||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (2/28/08 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
The Fund commenced operations on February 28, 2008.
Returns for Class R6 Shares prior to its inception date are based on the performance of Class R5 Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class R5 Shares.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Emerging Economies Fund, the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Index from February 28, 2008 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI Emerging Markets Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation treaties. The performance of the Lipper Emerging Markets Funds Index includes
expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The Lipper Emerging Markets Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 5 | ||||||
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JPMorgan Emerging Markets Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Institutional Class Shares)1* | 12.71% | |||
| Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (net of foreign withholding taxes) | 9.27% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 3,124,578 | ||
INVESTMENT OBJECTIVE**
The JPMorgan Emerging Markets Equity Fund (the “Fund”) seeks to provide high total return from a portfolio of equity securities from emerging markets issuers.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Institutional Class Shares outperformed the MSCI Emerging Markets Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016. The Fund’s security selection in the financials and industrials sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s underweight position in the materials sector and its security selection in the health care sector were leading detractors from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Sberbank of Russia OJSC, Bidvest Group Ltd. and Itau Unibanco Holding SA. Shares of Sberbank, a Russian commercial bank, rose on continued profit growth. Shares of Bidvest, a South African conglomerate, rose after the company reported growth in earnings and revenue. Shares of Itau Unibanco, a Brazilian banking and financial services company, rose on signs of economic recovery in Brazil.
Leading individual detractors from relative performance included the Fund’s overweight positions in Vipshop Holdings Ltd. and Woolworths Holdings Ltd. and its underweight position in Petroleo Brasiliero SA (Petrobras). Shares of Vipshop, an
Internet retailer based in China, fell on slowing sales growth and increased competition. Shares of Woolworths, a South African retail chain, fell on lower-than-expected sales of apparel. Shares of Petrobras, Brazil’s state controlled oil and gas company that was not held in the Fund, rose on improvement in global energy prices.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed an active strategy in which portfolio construction was focused on the highest-conviction ideas found at the security level. The Fund’s portfolio managers used bottom-up fundamental research to determine the Fund’s security weightings, researching companies in an attempt to determine their underlying value and potential for future earnings growth. As a result of this process, the Fund’s largest average sector positions during the reporting period were in the financials, information technology and consumer discretionary sectors, while the smallest average sector positions in which the Fund was invested were in the telecommunication services, utilities and health care sectors.
| 1 | Effective December 1, 2016, the Fund’s Institutional Class Shares were renamed Class L Shares. |
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| 6 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Tencent Holdings Ltd. (China) | 6.4 | % | |||||
| 2. | Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Taiwan) | 4.3 | ||||||
| 3. | AIA Group Ltd. (Hong Kong) | 3.7 | ||||||
| 4. | Housing Development Finance Corp., Ltd. (India) | 3.5 | ||||||
| 5. | Tata Consultancy Services Ltd. (India) | 2.7 | ||||||
| 6. | Sberbank PAO (Russia) | 2.6 | ||||||
| 7. | Bid Corp., Ltd. (South Africa) | 2.4 | ||||||
| 8. | Alibaba Group Holding Ltd., ADR (China) | 2.4 | ||||||
| 9. | Samsung Electronics Co., Ltd. (South Korea) | 2.2 | ||||||
| 10. | HDFC Bank Ltd., ADR (India) | 2.0 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| India | 19.9 | % | ||
| China | 17.3 | |||
| South Africa | 13.1 | |||
| Brazil | 10.6 | |||
| Taiwan | 7.9 | |||
| Hong Kong | 6.3 | |||
| Russia | 5.5 | |||
| South Korea | 3.8 | |||
| Indonesia | 3.2 | |||
| Thailand | 1.4 | |||
| United States | 1.2 | |||
| Peru | 1.2 | |||
| Panama | 1.1 | |||
| Mexico | 1.1 | |||
| Others (each less than 1.0%) | 3.5 | |||
| Short-Term Investment | 2.9 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 7 | ||||||
Table of Contents
JPMorgan Emerging Markets Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 28, 2001 | |||||||||||||
With Sales Charge* | 6.37 | % | 0.00 | %(a) | 2.85 | % | ||||||||
Without Sales Charge | 12.25 | 1.09 | 3.40 | |||||||||||
CLASS C SHARES | February 28, 2006 | |||||||||||||
With CDSC** | 10.71 | 0.59 | 2.89 | |||||||||||
Without CDSC | 11.71 | 0.59 | 2.89 | |||||||||||
CLASS R5 SHARES | September 9, 2016 | 12.71 | 1.51 | 3.82 | ||||||||||
CLASS R6 SHARES | December 23, 2013 | 12.83 | 1.56 | 3.85 | ||||||||||
INSTITUTIONAL CLASS SHARES | November 15, 1993 | 12.71 | 1.51 | 3.82 | ||||||||||
SELECT CLASS SHARES | September 10, 2001 | 12.51 | 1.35 | 3.66 | ||||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
| (a) | Amount rounds to less than 0.005%. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R6 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of R6 Shares would have been different than those shown because R6 Shares have different expenses than Institutional Class Shares.
Returns for Class R5 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of Class R5 Shares would have been different than those shown because Class R5 Shares have different expenses than Institutional Class Shares.
The graph illustrates comparative performance for $3,000,000 invested in Institutional Class Shares of the JPMorgan Emerging Markets Equity Fund, the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Index from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI Emerging Markets Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation
treaties. The performance of the Lipper Emerging Markets Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The Lipper Emerging Markets Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Institutional Class Shares have a $3,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| 8 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan Emerging Markets Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | 10.04% | |||
| Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (net of foreign withholding taxes) | 9.27% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $11,576 | |||
INVESTMENT OBJECTIVE**
The JPMorgan Emerging Markets Equity Income Fund (the “Fund”) seeks to provide both current income and long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares outperformed the MSCI Emerging Markets Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
The Fund’s security selection in the financials sector and its security selection and underweight position in the industrials sector were leading contributors to performance relative to the Benchmark. The Fund’s overweight position in the telecommunication services sector and its security selection and underweight position in the materials sector were leading detractors from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in BB Seguridade Participacoes SA, Vanguard International Semiconductor Co. and Tractebel Energia SA. Shares of BB Seguridade, a Brazilian insurer, rose after reporting better-than-expected earnings growth. Shares of Vanguard International, a Taiwan-based maker of custom semiconductors, rose on better-than-expected earnings. Shares of Tractebel Energia, a Brazilian energy producer, rose amid the continued growth in Brazil’s energy sector.
Leading individual detractors from relative performance included the Fund’s overweight positions in Advanced Info Services Public Co. and its underweight positions in Tencent Holdings Ltd. and Petroleo Brasileiro SA (“Petrobras”). Shares of Advanced Info Services, a Thai mobile communications provider, fell after the company failed to win any new wireless spectrum at a government auction. Shares of Tencent Holdings, a Chinese Internet and social media company that was not held in the Fund, rose amid continued growth in earnings and advertising growth. Shares of Petrobras, Brazil’s state controlled oil and gas company that was not held in the Fund, rose on renewed strength in global energy prices.
HOW THE FUND WAS MANAGED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to security selection, rigorously researching companies in an attempt to determine their underlying value and potential for future growth. The Fund’s portfolio managers looked for dividend yielding equity securities that they believed were undervalued and possessed the long-term earnings power and strong cash flow generation that would enable them to grow their dividends.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 9 | ||||||
Table of Contents
JPMorgan Emerging Markets Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Taiwan) | 4.8 | % | |||||
| 2. | China Mobile Ltd. (Hong Kong) | 3.0 | ||||||
| 3. | AMBEV S.A., ADR (Brazil) | 3.0 | ||||||
| 4. | BB Seguridade Participacoes S.A. (Brazil) | 2.8 | ||||||
| 5. | Banco Santander Chile, ADR (Chile) | 2.8 | ||||||
| 6. | Delta Electronics, Inc. (Taiwan) | 2.7 | ||||||
| 7. | Kimberly-Clark de Mexico S.A.B. de C.V., Class A (Mexico) | 2.7 | ||||||
| 8. | Vanguard International Semiconductor Corp. (Taiwan) | 2.6 | ||||||
| 9. | China Resources Power Holdings Co., Ltd. (Hong Kong) | 2.3 | ||||||
| 10. | Moscow Exchange MICEX-RTS PJSC (Russia) | 2.2 | ||||||
SUMMARY OF INVESTMENTS BY COUNTRY*** | ||||
| Taiwan | 22.7 | % | ||
| South Africa | 14.3 | |||
| Hong Kong | 11.6 | |||
| Brazil | 9 .8 | |||
| Russia | 7 .4 | |||
| South Korea | 6 .1 | |||
| China | 4 .3 | |||
| Mexico | 4 .3 | |||
| Czech Republic | 3 .6 | |||
| Chile | 2 .8 | |||
| Thailand | 2 .5 | |||
| Turkey | 2 .4 | |||
| Hungary | 1 .8 | |||
| Saudi Arabia | 1 .4 | |||
| United Arab Emirates | 1 .4 | |||
| Indonesia | 1 .2 | |||
| Short-Term Investment | 2 .4 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 10 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | SINCE INCEPTION | ||||||||
CLASS A SHARES | December 12, 2014 | |||||||||
With Sales Charge* | 4.02 | % | (5.70 | )% | ||||||
Without Sales Charge | 9.76 | (2.97 | ) | |||||||
CLASS C SHARES | December 12, 2014 | |||||||||
With CDSC** | 8.19 | (3.48 | ) | |||||||
Without CDSC | 9.19 | (3.48 | ) | |||||||
CLASS R5 SHARES | December 12, 2014 | 10.24 | (2.56 | ) | ||||||
CLASS R6 SHARES | December 12, 2014 | 10.26 | (2.49 | ) | ||||||
SELECT CLASS SHARES | December 12, 2014 | 10.04 | (2.74 | ) | ||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (12/12/14 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
The Fund commenced operations on December 12, 2014.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Emerging Markets Equity Income Fund, the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Index from December 12, 2014 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI Emerging Markets Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation treaties. The performance of the Lipper Emerging Markets Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the
Fund. The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The Lipper Emerging Markets Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 11 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | 0.91% | |||
| Morgan Stanley Capital International (“MSCI”) World Index (net of foreign withholding taxes)1 | 1.18% | �� | ||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 6,907,306 | ||
INVESTMENT OBJECTIVE**
The JPMorgan Global Research Enhanced Index Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares underperformed the MSCI World Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection in the health care and transportation services & consumer cyclicals sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the media and energy sectors was a leading positive contributor to relative performance. By region, the Fund’s security selection in North America was the leading detractor from relative performance, while the Fund’s security selection in the Pacific region, excluding Japan, was neutral to relative performance.
Due to the Fund holding a relatively large number of securities during the period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund sought to outperform the Benchmark over time, while seeking to achieve sector, geographic and risk characteristics similar to that of the Benchmark. Using the fundamental equity insights generated by JPMorgan’s team of analysts, the Fund’s portfolio managers took marginally overweight positions in securities that they considered undervalued, while being marginally underweight in or not holding securities in the Benchmark that they considered overvalued. During the reporting period, the Fund’s portfolio managers used exchange-traded funds and futures to help manage cash flows.
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Apple, Inc. (United States) | 2.0 | % | |||||
| 2. | Microsoft Corp. (United States) | 1.6 | ||||||
| 3. | Facebook, Inc., Class A (United States) | 1.2 | ||||||
| 4. | Amazon.com, Inc. (United States) | 1.1 | ||||||
| 5. | Exxon Mobil Corp. (United States) | 1.1 | ||||||
| 6. | Alphabet, Inc., Class C (United States) | 1.0 | ||||||
| 7. | Wells Fargo & Co. (United States) | 0.9 | ||||||
| 8. | General Electric Co. (United States) | 0.8 | ||||||
| 9. | Alphabet, Inc., Class A (United States) | 0.8 | ||||||
| 10. | Nestle S.A. (Switzerland) | 0.8 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| United States | 57.0 | % | ||
| Japan | 9.4 | |||
| United Kingdom | 5.4 | |||
| France | 4.1 | |||
| Germany | 3.8 | |||
| Canada | 3.7 | |||
| Switzerland | 3.7 | |||
| Australia | 2.7 | |||
| Netherlands | 2.1 | |||
| Hong Kong | 1.3 | |||
| Spain | 1.0 | |||
| Others (each less than 1.0%) | 5.5 | |||
| Short-Term Investment | 0.3 | |||
| 1 | MSCI World Index is a registered service mark of Morgan Stanley Capital International, which does not sponsor and is in no way affiliated with the Fund. |
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 12 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 3 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | February 28, 2013 | |||||||||||||
With Sales Charge* | (4.62 | )% | 2.00 | % | 5.71 | % | ||||||||
Without Sales Charge | 0.68 | 3.85 | 7.27 | |||||||||||
CLASS C SHARES | February 28, 2013 | |||||||||||||
With CDSC** | (0.84 | ) | 3.30 | 6.73 | ||||||||||
Without CDSC | 0.16 | 3.30 | 6.73 | |||||||||||
CLASS R2 SHARES | February 28, 2013 | 0.46 | 3.59 | 7.00 | ||||||||||
SELECT CLASS SHARES | February 28, 2013 | 0.91 | 4.09 | 7.54 | ||||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year periods and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (2/28/13 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date, month-end performance information please call 1-800-480-4111.
The Fund commenced operations on February 28, 2013.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Global Research Enhanced Index Fund, the MSCI World Index and the Lipper Global Large-Cap Core Funds Index from February 28, 2013 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI World Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Global Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Lipper Global Large-Cap Core Funds Index is an index based on the total returns of certain mutuals funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also,
performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 13 | ||||||
Table of Contents
JPMorgan Global Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | (3.29)% | |||
| Morgan Stanley Capital International (“MSCI”) All Country World Index (net of foreign withholding taxes) | 2.05% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $1,672 | |||
INVESTMENT OBJECTIVE**
The JPMorgan Global Unconstrained Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares underperformed the MSCI All Country World Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection and overweight positions in both the financials and health care sectors were leading detractors from performance relative to the Benchmark. The Fund’s security selection and underweight positions in the information technology sector and its security selection in the consumer discretionary sector were leading positive contributors to relative performance.
By region, the Fund’s overweight positions and security selection in the U.K. and continental Europe were leading detractors from relative performance, while the Fund’s overweight position in North America and its security selection and underweight position in Japan contributed to relative performance.
Leading individual detractors from the Fund’s relative performance included overweight positions in Teva Pharmaceutical Industries Ltd., Barclays PLC and Sanofi SA. Shares of Teva Pharmaceutical, an Israel-based maker of generic and specialty drugs, fell amid investor concerns about the company’s patent on a key drug and general concerns about pricing pressure on generic drugs. Shares of Barclays, a U.K. financial services company, fell amid investor concerns that continued low interest rates and the U.K.’s exit from the European Union would undermine earnings. Shares of Sanofi, a French pharmaceuticals company, declined after the company’s new chief executive warned of sluggish earnings growth in the near term.
Leading individual contributors to the Fund’s relative performance included overweight positions in NXP Semiconductors NV, Qualcomm Inc. and Amazon.com Inc. Shares of NXP Semiconductors, a Dutch maker of semiconductors, rose on news of a takeover bid from Qualcomm. Shares of Qualcomm, a U.S. communications technology maker, rose on investor expectations of an improved competitive position. Shares of Amazon.com, an Internet retailer, rose as the company continued to generate strong revenue and earnings growth.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers combined a contrarian approach with bottom-up fundamental research to construct a global portfolio of what they believed were undervalued companies, characterized by sustainability of earnings, strong free cash flow and the ability to increase earnings faster than their sector peers.
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Alphabet, Inc., Class C (United States) | 4.7 | % | |||||
| 2. | Teva Pharmaceutical Industries Ltd., ADR (Israel) | 4.4 | ||||||
| 3. | Time, Inc. (United States) | 3.4 | ||||||
| 4. | Twenty-First Century Fox, Inc., Class A (United States) | 3.2 | ||||||
| 5. | Citigroup, Inc. (United States) | 3.2 | ||||||
| 6. | Sanofi (France) | 2.9 | ||||||
| 7. | Amazon.com, Inc. (United States) | 2.7 | ||||||
| 8. | JD.com, Inc., ADR (China) | 2.2 | ||||||
| 9. | Chubb Ltd. (Switzerland) | 2.1 | ||||||
| 10. | AXA S.A. (France) | 2.1 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| United States | 46.8 | % | ||
| China | 8.5 | |||
| United Kingdom | 7.8 | |||
| France | 6.5 | |||
| Switzerland | 6.3 | |||
| Japan | 5.4 | |||
| Israel | 4.3 | |||
| Netherlands | 3.4 | |||
| Germany | 2.1 | |||
| Singapore | 2.0 | |||
| Canada | 1.4 | |||
| Russia | 1.3 | |||
| Hong Kong | 1.1 | |||
| Luxembourg | 1.1 | |||
| Italy | 1.0 | |||
| India | 1.0 | |||
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 14 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 3 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | November 30, 2011 | |||||||||||||
With Sales Charge* | (8.58 | )% | 1.08 | % | 7.64 | % | ||||||||
Without Sales Charge | (3.53 | ) | 2.90 | 8.83 | ||||||||||
CLASS C SHARES | November 30, 2011 | |||||||||||||
With CDSC** | (5.02 | ) | 2.39 | 8.29 | ||||||||||
Without CDSC | (4.02 | ) | 2.39 | 8.29 | ||||||||||
CLASS R2 SHARES | November 30, 2011 | (3.85 | ) | 2.63 | 8.54 | |||||||||
CLASS R5 SHARES | November 30, 2011 | (3.12 | ) | 3.36 | 9.32 | |||||||||
CLASS R6 SHARES | November 30, 2011 | (3.10 | ) | 3.41 | 9.37 | |||||||||
SELECT CLASS SHARES | November 30, 2011 | (3.29 | ) | 3.21 | 9.13 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (11/30/11 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
The Fund commenced operations on November 30, 2011.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan Global Unconstrained Equity Fund, the MSCI All Country World Index and the Lipper Global Multi-Cap Core Funds Index from November 30, 2011 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI All Country World Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Lipper Global Multi-Cap Core Funds Index is an index based on the total returns of certain
mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Subsequent to the inception date of the Fund and through January 5, 2015, the Fund did not experience any shareholder activity. If such shareholder activity had occurred, the Fund’s performance may have been impacted.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 15 | ||||||
Table of Contents
JPMorgan International Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | (1.50)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (net of foreign withholding taxes) | (3.23)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 3,424,466 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Equity Fund (the “Fund”) seeks total return from long-term capital growth and income. Total return consists of capital growth and current income.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares outperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
The Fund’s security selection in the information technology and consumer discretionary sectors was a leading contributor to performance relative to the Benchmark. The Fund’s security selection in the financials and health care sectors was a leading detractor from relative performance.
Leading individual contributors to the Fund’s relative performance included the Fund’s overweight positions in Taiwan Semiconductor Manufacturing Co., Tokyo Electronics Ltd. and Arm Holdings Ltd. Shares of Taiwan Semiconductor, which was not held in the Benchmark, Tokyo Electron, a provider of equipment to the semiconductor industry, and Arm Holdings, a U.K. semiconductor manufacturer, rose on increasing demand for semiconductors used in a range of products, including mobile devices, automobiles and wearable accessories. Shares of Arm Holdings were also boosted by news of the company’s acquisition by Softbank Inc.
Leading individual detractors from the Fund’s relative performance included its overweight positions in Credit Suisse Group AG, Barclays PLC and Prudential PLC. Shares of Credit Suisse, a Swiss financial services company, Barclays, a U.K. financial services company, and Prudential, a U.K. insurance and financial services provider not held in the Benchmark, fell amid sluggish economic growth and investor concerns that the U.K.’s planned exit from the European Union would prompt European monetary authorities to hold interest rates low, undermining investment returns and bank interest margins.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers continued to focus on security selection to build a portfolio of international equities. They used bottom-up fundamental research to identify what they believed were attractively priced securities of companies with
solid financial positions that possessed the potential to increase their earnings faster than their industry peers.
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | HSBC Holdings plc (United Kingdom) | 2.2 | % | |||||
| 2. | Roche Holding AG (Switzerland) | 2.1 | ||||||
| 3. | Vodafone Group plc (United Kingdom) | 2.0 | ||||||
| 4. | Novartis AG (Switzerland) | 2.0 | ||||||
| 5. | Japan Tobacco, Inc. (Japan) | 2.0 | ||||||
| 6. | Samsung Electronics Co., Ltd., GDR (South Korea) | 2.0 | ||||||
| 7. | Sumitomo Mitsui Financial Group, Inc. (Japan) | 1.9 | ||||||
| 8. | SAP SE (Germany) | 1.9 | ||||||
| 9. | Royal Dutch Shell plc, Class A (Netherlands) | 1.8 | ||||||
| 10. | Anheuser-Busch InBev S.A./N.V. (Belgium) | 1.8 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| Japan | 23.8 | % | ||
| United Kingdom | 17.9 | |||
| France | 11.7 | |||
| Switzerland | 10.5 | |||
| Germany | 7.6 | |||
| Netherlands | 6.2 | |||
| Hong Kong | 4.8 | |||
| China | 3.7 | |||
| South Korea | 2.6 | |||
| Belgium | 1.8 | |||
| Taiwan | 1.3 | |||
| Australia | 1.3 | |||
| India | 1.1 | |||
| South Africa | 1.1 | |||
| Denmark | 1.1 | |||
| Others (each less than 1.0%) | 2.4 | |||
| Short-Term Investment | 1.1 | |||
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 16 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 28, 2002 | |||||||||||||
With Sales Charge* | (7.00 | )% | 3.07 | % | 0.49 | % | ||||||||
Without Sales Charge | (1.83 | ) | 4.19 | 1.04 | ||||||||||
CLASS C SHARES | January 31, 2003 | |||||||||||||
With CDSC** | (3.31 | ) | 3.67 | 0.51 | ||||||||||
Without CDSC | (2.31 | ) | 3.67 | 0.51 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | (2.08 | ) | 3.93 | 0.83 | |||||||||
CLASS R5 SHARES | May 15, 2006 | (1.34 | ) | 4.67 | 1.49 | |||||||||
CLASS R6 SHARES | November 30, 2010 | (1.30 | ) | 4.71 | 1.51 | |||||||||
SELECT CLASS SHARES | January 1, 1997 | (1.50 | ) | 4.45 | 1.29 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2 Shares prior to its inception date are based on the performance of Class A Shares. The actual returns of R2 Shares would have been lower than those shown because R2 Shares have higher expenses than Class A Shares.
Returns for Class R6 Shares prior to its inception date are based on the performance of Class R5 Shares. The actual returns of Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class R5 Shares.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan International Equity Fund, the MSCI EAFE Index and the Lipper International Large-Cap Core Funds Index from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The
performance of the Lipper International Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Large-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 17 | ||||||
Table of Contents
JPMorgan International Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | (3.31)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (net of foreign withholding taxes) | (3.23)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 134,155 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Equity Income Fund (the “Fund”) seeks to provide both current income and long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares underperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection in the industrial cyclical and the consumer non-durable sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection and underweight position in the banks sector and its overweight position in the technology-semiconductors sector were leading positive contributors to relative performance.
By region, the Fund’s underweight positions and security selection in the Pacific and in Japan detracted from relative performance, while the Fund’s holdings in emerging markets, where the Benchmark had no exposure, and its security selection and underweight position in Continental Europe made positive contributions to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Persimmon PLC, Bayer AG and Ryanair Holdings PLC. Shares of Persimmon, a U.K. homebuilder, fell amid investor concerns that the U.K.’s planned exit from the European Union would hurt sales. Shares of Bayer, a German maker of pharmaceuticals and health care
products, fell on news of its plan to acquire Monsanto Co. Shares of Ryanair Holdings, a low-fare airline based in Ireland and not held in the Benchmark, fell on investor concerns about the impact of on tourism of terrorist attacks and an air traffic controllers’ strike in France.
Leading individual contributors to relative performance included the Fund’s overweight positions in Nippon Telegraph and Telephone Corp., a Japanese provider of telecommunications services, Danske Bank A/S, a Danish bank, and GlaxoSmithKline PLC., a U.K., drug maker. Shares of all three companies rose as they continued to return capital to shareholders in the form of dividends and/or share buybacks.
HOW THE FUND WAS MANAGED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to security selection, rigorously researching companies in an attempt to determine their underlying value and potential for future growth. The Fund’s portfolio managers looked for dividend yielding equity securities that they believed were undervalued and possessed the long-term earnings power and strong cash flow generation that would enable them to grow their dividends.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| 18 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | GlaxoSmithKline plc (United Kingdom) | 3.7 | % | |||||
| 2. | Taiwan Semiconductor Manufacturing Co., Ltd., ADR (Taiwan) | 3.5 | ||||||
| 3. | Anheuser-Busch InBev S.A./N.V. (Belgium) | 3.5 | ||||||
| 4. | UPM-Kymmene OYJ (Finland) | 2.8 | ||||||
| 5. | Toronto-Dominion Bank (The) (Canada) | 2.8 | ||||||
| 6. | Royal Dutch Shell plc, Class A (Netherlands) | 2.7 | ||||||
| 7. | WPP plc (United Kingdom) | 2.7 | ||||||
| 8. | Danske Bank A/S (Denmark) | 2.6 | ||||||
| 9. | Moneta Money Bank A.S. (Czech Republic) | 2.5 | ||||||
| 10. | MMC Norilsk Nickel PJSC, ADR (Russia) | 2.4 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| United Kingdom | 25.4 | % | ||
| Netherlands | 9.5 | |||
| Germany | 9.1 | |||
| Japan | 8.4 | |||
| France | 7.1 | |||
| Russia | 6.1 | |||
| Taiwan | 4.6 | |||
| Canada | 3.7 | |||
| Belgium | 3.5 | |||
| Switzerland | 3.1 | |||
| Finland | 2.8 | |||
| Denmark | 2.6 | |||
| Czech Republic | 2.5 | |||
| Hong Kong | 2.4 | |||
| Australia | 1.9 | |||
| Israel | 1.8 | |||
| Norway | 1.6 | |||
| New Zealand | 1.1 | |||
| Others (each less than 1.0%) | 0.9 | |||
| Short-Term Investment | 1.9 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 19 | ||||||
Table of Contents
JPMorgan International Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | February 28, 2011 | |||||||||||||
With Sales Charge* | (8.67 | )% | 4.61 | % | 2.37 | % | ||||||||
Without Sales Charge | (3.60 | ) | 5.74 | 3.35 | ||||||||||
CLASS C SHARES | February 28, 2011 | |||||||||||||
With CDSC** | (5.02 | ) | 5.22 | 2.83 | ||||||||||
Without CDSC | (4.02 | ) | 5.22 | 2.83 | ||||||||||
CLASS R2 SHARES | February 28, 2011 | (3.84 | ) | 5.48 | 3.08 | |||||||||
CLASS R5 SHARES | February 28, 2011 | (3.14 | ) | 6.22 | 3.80 | |||||||||
CLASS R6 SHARES | January 30, 2015 | (3.09 | ) | 6.22 | 3.81 | |||||||||
SELECT CLASS SHARES | February 28, 2011 | (3.31 | ) | 6.03 | 3.63 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (2/28/11 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date, month-end performance information please call 1-800-480-4111.
The Fund commenced operations on February 28, 2011.
Returns for Class R6 Shares prior to its inception date are based on the performance of Class R5 Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class R5 Shares.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan International Equity Income Fund, the MSCI EAFE Index and the Lipper International Equity Income Funds Index from February 28, 2011 to October 31, 2016. Return information prior to July 31, 2013 for the Lipper International Equity Income Funds Index is not provided by Lipper, Inc. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmarks, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do
not benefit from double taxation treaties. The performance of the Lipper International Equity Income Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Equity Income Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| 20 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this
information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 21 | ||||||
Table of Contents
JPMorgan International Opportunities Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Class A Shares, without a sales charge)* | (4.69)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (net of foreign withholding taxes) | (3.23)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 2,769,870 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Opportunities Fund (the “Fund”) seeks to provide high total return from a portfolio of equity securities of foreign companies in developed and, to a lesser extent, emerging markets.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, underperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s underweight position and security selection in the basic industries sector and security selection in the health care sector were leading detractors from performance relative to the Benchmark. The Fund’s security selection in the banks sector and its overweight position in the technology semiconductors sector were leading contributors to relative performance.
By region, the Fund’s security selection and overweight position in the U.K. and its underweight position in the Pacific region, excluding Japan, were leading detractors from relative performance. The Fund’s security selection in continental Europe made a positive contribution to relative performance.
Leading individual detractors from the Fund’s relative performance included its overweight positions in Dixons Carphone PLC, Associated British Foods PLC and Taylor Wimpey PLC. Shares of Dixons Carphone, a U.K. retailer of telecommunications services, Associated British Foods, owner of the Primark chain of supermarkets, and Taylor Wimpey, a U.K. homebuilder, all declined as U.K.’s vote to exit the European Union led to a
decline in the pound’s value and raised investor concerns about the U.K. economy.
Leading individual contributors to relative performance included the Fund’s overweight positions in Keyence Corp., Daikin Industries Ltd. and Adidas AG. Shares of both Keyence, a Japanese maker of sensors used in factory automation equipment, and Daikin Industries, a Japanese maker of air conditioners, rose on continued strength in operating profits at both companies. Shares of Adidas, a German maker of athletic apparel, rose after the company reported better-than-expected earnings and raised its earnings and sales forecasts several times during the reporting period.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to security selection, seeking to identify what they believed were the most attractive investment opportunities within each sector. The Fund’s portfolio managers looked for securities that they believed possessed an attractive valuation signal (as measured by a proprietary dividend discount model) and a timely catalyst that would enable the security to realize its inherent value. In addition, the Fund employed futures and currency forwards to help manage cash flows and the Fund’s currency exposure.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| 22 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Royal Dutch Shell plc, Class A (Netherlands) | 2.8 | % | |||||
| 2. | Roche Holding AG (Switzerland) | 2.4 | ||||||
| 3. | British American Tobacco plc (United Kingdom) | 2.1 | ||||||
| 4. | Anheuser-Busch InBev S.A./N.V. (Belgium) | 2.1 | ||||||
| 5. | Siemens AG (Germany) | 1.9 | ||||||
| 6. | GlaxoSmithKline plc (United Kingdom) | 1.8 | ||||||
| 7. | Australia & New Zealand Banking Group Ltd. (Australia) | 1.6 | ||||||
| 8. | Mitsubishi UFJ Financial Group, Inc. (Japan) | 1.6 | ||||||
| 9. | Yamato Holdings Co., Ltd. (Japan) | 1.6 | ||||||
| 10. | ORIX Corp. (Japan) | 1.6 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| Japan | 25.8 | % | ||
| United Kingdom | 15.5 | |||
| France | 12.3 | |||
| Germany | 9.7 | |||
| Netherlands | 5.8 | |||
| Switzerland | 5.6 | |||
| Australia | 3.7 | |||
| Italy | 3.6 | |||
| Denmark | 3.4 | |||
| Hong Kong | 2.2 | |||
| Belgium | 2.1 | |||
| Norway | 1.6 | |||
| United States | 1.5 | |||
| Finland | 1.4 | |||
| Sweden | 1.2 | |||
| India | 1.1 | |||
| Others (each less than 1.0%) | 0.9 | |||
| Short-Term Investment | 2.6 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 23 | ||||||
Table of Contents
JPMorgan International Opportunities Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 10, 2001 | |||||||||||||
With Sales Charge* | (9.68 | )% | 3.37 | % | 0.37 | % | ||||||||
Without Sales Charge | (4.69 | ) | 4.49 | 0.91 | ||||||||||
CLASS C SHARES | July 31, 2007 | |||||||||||||
With CDSC** | (6.26 | ) | 3.95 | 0.40 | ||||||||||
Without CDSC | (5.26 | ) | 3.95 | 0.40 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | (4.09 | ) | 5.07 | 1.42 | |||||||||
INSTITUTIONAL CLASS SHARES | February 26, 1997 | (4.25 | ) | 4.96 | 1.36 | |||||||||
SELECT CLASS SHARES | September 10, 2001 | (4.40 | ) | 4.78 | 1.17 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class C Shares prior to its inception date are based on the performance of Class B Shares, all of which converted to Class A Shares on June 19, 2015. The actual returns of Class C Shares would have been similar to those shown because Class C Shares had similar expenses to Class B Shares.
Returns for Class R6 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class A Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan International Opportunities Fund, the MSCI EAFE Index and the Lipper International Large-Cap Core Funds Index from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The
performance of the Lipper International Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Large-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| 24 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Research Enhanced Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | (2.72)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (net of foreign withholding taxes) | (3.23)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 1,335,211 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Research Enhanced Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares outperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection in the industrial cyclical and basic industries sectors was a leading positive contributor to relative performance. The Fund’s security selection in the banks and finance sector and the transportation services and consumer cyclical sector was a leading detractor from relative performance.
By region, the Fund’s security selection in Japan and continental Europe made a positive contribution to relative performance, while the Fund’s underweight allocation to the Pacific, excluding Japan, detracted from relative performance.
Due to the Fund holding a relatively large number of securities during the period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund sought to outperform the Benchmark over time, while seeking to achieve sector, geographic and risk characteristics similar to that of the Benchmark. Using the fundamental equity insights generated by analysts, the Fund’s portfolio managers took a marginally overweight position in securities included within the universe of the Benchmark that they considered undervalued, while marginally underweighting or not holding securities in the Benchmark that they considered overvalued.
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Nestle S.A. (Switzerland) | 2.6 | % | |||||
| 2. | Roche Holding AG (Switzerland) | 1.8 | ||||||
| 3. | British American Tobacco plc (United Kingdom) | 1.5 | ||||||
| 4. | HSBC Holdings plc (United Kingdom) | 1.4 | ||||||
| 5. | Toyota Motor Corp. (Japan) | 1.4 | ||||||
| 6. | Siemens AG (Germany) | 1.3 | ||||||
| 7. | SAP SE (Germany) | 1.3 | ||||||
| 8. | Bayer AG (Germany) | 1.2 | ||||||
| 9. | Royal Dutch Shell plc, Class B (Netherlands) | 1.2 | ||||||
| 10. | GlaxoSmithKline plc (United Kingdom) | 1.2 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| Japan | 23.1 | % | ||
| United Kingdom | 15.4 | |||
| France | 10.5 | |||
| Germany | 10.1 | |||
| Switzerland | 9.6 | |||
| Australia | 6.4 | |||
| Netherlands | 6.1 | |||
| Hong Kong | 2.8 | |||
| Italy | 2.4 | |||
| Spain | 2.1 | |||
| Finland | 2.0 | |||
| Sweden | 1.2 | |||
| Belgium | 1.0 | |||
| Others (each less than 1.0%) | 4.8 | |||
| Short-Term Investment | 2.5 | |||
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 25 | ||||||
Table of Contents
JPMorgan International Research Enhanced Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | April 23, 1993 | |||||||||||||
With Sales Charge* | (8.06 | )% | 3.86 | % | 0.21 | % | ||||||||
Without Sales Charge | (2.94 | ) | 4.99 | 0.75 | ||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | (4.41 | ) | 4.40 | 0.12 | ||||||||||
Without CDSC | (3.41 | ) | 4.40 | 0.12 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | (3.22 | ) | 4.73 | 0.50 | |||||||||
SELECT CLASS SHARES | October 28, 1992 | (2.72 | ) | 5.25 | 1.00 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2 Shares prior to its inception date are based on the performance of Select Class Shares. Class R2 Shares performance has been adjusted to reflect the difference in expenses between classes.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan International Research Enhanced Equity Fund, the MSCI EAFE Index and the Lipper International Multi-Cap Core Funds Index from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Multi-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Multi-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside of the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
| 26 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Select Class Shares)* | (1.47)% | |||
| Morgan Stanley Capital International (“MSCI”) All Country World Index, Ex-U.S. (net of foreign withholding taxes) | 0.22% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 109,775 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Unconstrained Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Select Class Shares underperformed the MSCI All Country World Index, ex-U.S. (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection in the financials sector and its security selection and overweight position in the health care sector were leading detractors from performance relative to the Benchmark. The Fund’s overweight position in the information technology sector and its security selection in the materials sectors were leading contributors to relative performance.
By region, the Fund’s security selection and overweight position in Continental Europe and its underweight position and security selection in the Pacific, excluding Japan, were leading detractors from performance relative to the Benchmark. The Fund’s security selection in Japan contributed to relative performance.
Leading individual detractors from the Fund’s relative performance included its overweight positions in Nokia Corp., Teva Pharmaceutical Industrial Ltd. and Barclays PLC. Shares of Nokia, a Finnish telecommunications provider, declined as weakness in the wireless network market hurt the company’s earnings. Shares of Teva Pharmaceutical, an Israel-based maker of generic and specialty drugs, fell amid investor
concerns about pricing pressure on generic drugs and the loss of a patent on a key drug. Shares of Barclays, a U.K. financial services company, fell amid investor concerns that continued low interest rates and the U.K.’s exit from the European Union would undermine earnings.
Leading individual contributors to the Fund’s relative performance included its overweight positions in Arm Holdings PLC, LafargeHolcim Ltd. and Covestro AG. Shares of Arm Holdings, a U.K. semiconductor designer, rose on news of a takeover bid from Softbank Inc. Shares of LafargeHolcim, a construction materials maker based in Switzerland, rose on investor expectations for a rebound in global demand for cement and other materials. Shares of Covestro, a German maker of advanced materials, rose following its spin-off from Bayer AG.
HOW WAS THE FUND POSITIONED?
By harnessing their team��s global sector specialists, the Fund’s portfolio managers sought to build a high-conviction, benchmark-agnostic portfolio of growth, value and unique companies, whose future prospects, the managers believed, were under-appreciated by the market and thus possessed the potential to deliver higher-than-expected earnings that could have a positive effect on the share price.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 27 | ||||||
Table of Contents
JPMorgan International Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | LafargeHolcim Ltd. (Switzerland) | 4.2 | % | |||||
| 2. | Rio Tinto plc (United Kingdom) | 3.4 | ||||||
| 3. | Alimentation Couche-Tard, Inc., Class B (Canada) | 3.1 | ||||||
| 4. | Baidu, Inc., ADR (China) | 2.9 | ||||||
| 5. | Altice N.V., Class A (Netherlands) | 2.9 | ||||||
| 6. | CNOOC Ltd. (China) | 2.9 | ||||||
| 7. | Teva Pharmaceutical Industries Ltd., ADR (Israel) | 2.8 | ||||||
| 8. | Vodafone Group plc (United Kingdom) | 2.7 | ||||||
| 9. | NN Group N.V. (Netherlands) | 2.7 | ||||||
| 10. | Cie Financiere Richemont S.A. (Switzerland) | 2.6 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| United Kingdom | 17.8 | % | ||
| Switzerland | 12.0 | |||
| Netherlands | 10.5 | |||
| China | 10.0 | |||
| Hong Kong | 8.5 | |||
| Japan | 7.6 | |||
| Canada | 4.5 | |||
| Finland | 3.9 | |||
| Germany | 3.5 | |||
| Israel | 2.8 | |||
| Belgium | 2.6 | |||
| India | 2.2 | |||
| Taiwan | 2.0 | |||
| France | 2.0 | |||
| Denmark | 2.0 | |||
| United States | 1.7 | |||
| South Africa | 1.7 | |||
| South Korea | 1.5 | |||
| Italy | 1.3 | |||
| Short-Term Investment | 1.9 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 28 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 3 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | November 30, 2011 | |||||||||||||
With Sales Charge* | (6.98 | )% | (2.23 | )% | 5.74 | % | ||||||||
Without Sales Charge | (1.80 | ) | (0.46 | ) | 6.90 | |||||||||
CLASS C SHARES | November 30, 2011 | |||||||||||||
With CDSC** | (3.28 | ) | (0.96 | ) | 6.36 | |||||||||
Without CDSC | (2.28 | ) | (0.96 | ) | 6.36 | |||||||||
CLASS R2 SHARES | November 30, 2011 | (2.05 | ) | (0.72 | ) | 6.63 | ||||||||
CLASS R5 SHARES | November 30, 2011 | (1.38 | ) | (0.01 | ) | 7.38 | ||||||||
CLASS R6 SHARES | November 30, 2011 | (1.29 | ) | 0.05 | 7.44 | |||||||||
SELECT CLASS SHARES | November 30, 2011 | (1.47 | ) | (0.15 | ) | 7.20 | ||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (11/30/11 To 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date, month-end performance information please call 1-800-480-4111.
The Fund commenced operations on November 30, 2011.
The graph illustrates comparative performance for $1,000,000 invested in Select Class Shares of the JPMorgan International Unconstrained Equity Fund, the MSCI All Country World Index, ex-U.S. and the Lipper International Large-Cap Growth Funds Index from November 30, 2011 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI All Country World Index, ex-U.S. does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Large-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI All Country World Index, ex-U.S. is a free float-adjusted market capitalization weighted index that is designed to measure the equity market
performance of developed and emerging markets, excluding the United States. The Lipper International Large-Cap Growth Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Select Class Shares have a $1,000,000 minimum initial investment.
Subsequent to the inception date of the Fund and through May 30, 2013, the Fund did not experience any shareholder activity. If such shareholder activity had occurred, the Fund’s performance may have been impacted.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 29 | ||||||
Table of Contents
JPMorgan International Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Institutional Class Shares1)* | (4.63)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Value Index (net of foreign withholding taxes) | (3.35)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 1,308,220 | ||
INVESTMENT OBJECTIVE**
The JPMorgan International Value Fund (the “Fund”) seeks to provide high total return from a portfolio of foreign company equity securities.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Institutional Class Shares underperformed the MSCI EAFE Value Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016.
By sector, the Fund’s security selection in the health care and insurance sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the retail sector and its overweight position in the technology-semiconductors sector were leading contributors to relative performance.
By region, the Fund’s underweight position in the Pacific, excluding Japan, and its security selection in the U.K. and Japan were leading detractors from performance relative to the Benchmark. The Fund’s out-of-Benchmark holdings in both emerging markets and Canada were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Teva Pharmaceutical Industries Ltd., Prudential PLC and Telecom Italia Spa. Shares of Teva Pharmaceutical, a drug maker not held in the Benchmark, fell amid investor concerns about pressure on generic drug prices and the loss of a key drug patent. Shares of Prudential, an insurance and financial services provider not held in the Benchmark, fell amid the continued low interest rate environment and investor concerns about the impact of the U.K.’s planned exit from the European Union. Shares of Telecom Italia, a telecommunications provider in Italy, fell on investor concerns about increased competition in the Italian telecommunications market.
Leading individual contributors to the Fund’s relative performance included the Fund’s overweight positions in Nippon Telegraph and Telephone Corp., Daikin Industries Ltd. and Suzuki Motor Corp. Shares of Nippon Telegraph and Telephone, a telecommunications provider in Japan, rose as the company continued to return capital to shareholders via dividends and share repurchases. Shares of Daikin, a Japanese manufacturer of air conditioners that was not held in the Benchmark, rose as sales growth in emerging markets and an expanding presence in the U.S. boosted earnings. Shares of Suzuki Motor, an auto manufacturer not held in the Benchmark, rose amid continued growth in India and on news that the company was cleared of wrongdoing in a probe of fuel-efficiency measurement methods.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to security selection, seeking to identify what they believed were the most attractive value investment opportunities within each sector. The Fund’s portfolio managers looked for securities that they believed possessed an attractive valuation signal (as measured by a proprietary dividend discount model) and a timely catalyst that would enable the securities to realize their inherent value. In addition, the Fund employed futures and currency forwards to help manage cash flows and currency exposure.
| 1 | Effective December 1, 2016, the Fund’s Institutional Class was renamed Class L. |
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| 30 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| TOP TEN HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | TOTAL S.A (France) | 3.5 | % | |||||
| 2. | Royal Dutch Shell plc, Class A (Netherlands) | 3.4 | ||||||
| 3. | Australia & New Zealand Banking Group Ltd. (Australia) | 3.0 | ||||||
| 4. | Mitsubishi UFJ Financial Group, Inc. (Japan) | 2.7 | ||||||
| 5. | Siemens AG (Germany) | 2.5 | ||||||
| 6. | BNP Paribas S.A (France) | 2.5 | ||||||
| 7. | Vodafone Group plc (United Kingdom) | 2.1 | ||||||
| 8. | AXA S.A (France) | 2.1 | ||||||
| 9. | ING Groep N.V (Netherlands) | 2.0 | ||||||
| 10. | Zurich Insurance Group AG (Switzerland) | 2.0 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| Japan | 23.6 | % | ||
| France | 15.7 | |||
| United Kingdom | 13.2 | |||
| Germany | 7.9 | |||
| Netherlands | 7.1 | |||
| Switzerland | 4.6 | |||
| Australia | 4.0 | |||
| Italy | 3.7 | |||
| Finland | 2.3 | |||
| Belgium | 2.0 | |||
| Hong Kong | 2.0 | |||
| Sweden | 1.9 | |||
| Israel | 1.4 | |||
| Norway | 1.2 | |||
| United States | 1.2 | |||
| Spain | 1.2 | |||
| Luxembourg | 1.1 | |||
| China | 1.0 | |||
| South Korea | 1.0 | |||
| Others (each less than 1.0%) | 2.6 | |||
| Short-Term Investment | 1.3 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 31 | ||||||
Table of Contents
JPMorgan International Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 28, 2001 | |||||||||||||
With Sales Charge* | (9.99 | )% | 1.65 | % | (0.74 | )% | ||||||||
Without Sales Charge | (5.01 | ) | 2.76 | (0.21 | ) | |||||||||
CLASS C SHARES | July 11, 2006 | |||||||||||||
With CDSC** | (6.54 | ) | 2.26 | (0.71 | ) | |||||||||
Without CDSC | (5.54 | ) | 2.26 | (0.71 | ) | |||||||||
CLASS R2 SHARES | November 3, 2008 | (5.28 | ) | 2.51 | (0.41 | ) | ||||||||
CLASS R5 SHARES | September 9, 2016 | (4.56 | ) | 3.20 | 0.20 | |||||||||
CLASS R6 SHARES | November 30, 2010 | (4.45 | ) | 3.31 | 0.27 | |||||||||
INSTITUTIONAL CLASS SHARES | November 4, 1993 | (4.63 | ) | 3.19 | 0.20 | |||||||||
SELECT CLASS SHARES | September 10, 2001 | (4.74 | ) | 3.05 | 0.05 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2 Shares prior to its inception date are based on the performance of Class A Shares. The actual returns of R2 Shares would have been lower than those shown because R2 Shares have higher expenses than Class A Shares.
Returns for Class R5 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of Class R5 shares would have been different than those shown because Class R5 Shares have different expenses than Institutional Class Shares.
Returns for Class R6 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Institutional Class Shares.
The graph illustrates comparative performance for $3,000,000 invested in Institutional Class Shares of the JPMorgan International Value Fund, the MSCI EAFE Value Index and the Lipper International Large-Cap Value Funds Average from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested
after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Large-Cap Value Funds Average includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Value Index is a free float-adjusted market capitalization weighted index that is designed to measure the performance of value-oriented stocks in the world’s equity markets, excluding the U.S. and Canada. Investors cannot invest directly in an index. The Lipper International Large-Cap Value Funds Average is an average based on the total returns of all mutual funds within the Fund’s designated category as determined by Lipper, Inc.
Institutional Class Shares have a $3,000,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| 32 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan Intrepid International Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited)
| REPORTING PERIOD RETURN: | ||||
| Fund (Class A Shares, without a sales charge)* | (3.07)% | |||
| Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index (net of foreign withholding taxes) | (3.23)% | |||
| Net Assets as of 10/31/2016 (In Thousands) | $ | 2,694,314 | ||
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid International Fund (the “Fund”) seeks to maximize long-term capital growth by investing primarily in equity securities in developed markets outside the U.S.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, outperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2016. The Fund’s portfolio managers attempted to construct the Fund so that security selection and style factors (i.e., growth, value and quality characteristics) would be the primary drivers of returns.
The Fund’s security selection in the consumer discretionary and financials sectors was a leading contributor to performance relative to the Benchmark for the twelve month period. The Fund’s security selection in the information technology and health care sectors was a leading detractor from relative performance.
The Fund targeted investments in companies that exhibited specific growth, value and quality characteristics during the period. The Fund held a range of 150 to 250 securities during the period. Consequently, the impact of any individual security on the Fund’s overall performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund’s strategy was rooted in the notion that investor behavior is influenced by human emotion. This influence is believed to give rise to persistent growth, value and quality anomalies within the market. During the reporting period, the Fund’s portfolio managers sought to exploit these anomalies by utilizing a series of style screens designed to identify securities with attractive growth, value and/or quality characteristics.
| * | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
| ** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 33 | ||||||
Table of Contents
JPMorgan Intrepid International Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2016 (Unaudited) (continued)
| TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
| 1. | Royal Dutch Shell plc, Class B (Netherlands) | 2.0 | % | |||||
| 2. | Roche Holding AG (Switzerland) | 1.7 | ||||||
| 3. | Nestle S.A. (Switzerland) | 1.5 | ||||||
| 4. | British American Tobacco plc (United Kingdom) | 1.3 | ||||||
| 5. | Unilever N.V., CVA (United Kingdom) | 1.3 | ||||||
| 6. | TOTAL S.A. (France) | 1.2 | ||||||
| 7. | BP plc (United Kingdom) | 1.2 | ||||||
| 8. | BHP Billiton Ltd. (Australia) | 1.0 | ||||||
| 9. | Novartis AG (Switzerland) | 1.0 | ||||||
| 10. | Siemens AG (Germany) | 1.0 | ||||||
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
| Japan | 24.0 | % | ||
| United Kingdom | 15.4 | |||
| France | 11.3 | |||
| Switzerland | 8.5 | |||
| Germany | 8.0 | |||
| Australia | 6.7 | |||
| Netherlands | 4.2 | |||
| Hong Kong | 3.4 | |||
| Sweden | 2.7 | |||
| Denmark | 2.3 | |||
| Spain | 2.1 | |||
| Italy | 1.3 | |||
| Norway | 1.1 | |||
| Belgium | 1.0 | |||
| United States | 1.0 | |||
| Others (each less than 1.0%) | 4.9 | |||
| Short-Term Investment | 2.1 | |||
| *** | Percentages indicated are based on total investments as of October 31, 2016. The Fund’s portfolio composition is subject to change. |
| 34 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2016 | ||||||||||||||
| INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | April 30, 2001 | |||||||||||||
With Sales Charge* | (8.15 | )% | 4.03 | % | (0.01 | )% | ||||||||
Without Sales Charge | (3.07 | ) | 5.16 | 0.53 | ||||||||||
CLASS C SHARES | February 28, 2006 | |||||||||||||
With CDSC** | (4.56 | ) | 4.63 | 0.03 | ||||||||||
Without CDSC | (3.56 | ) | 4.63 | 0.03 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | (3.36 | ) | 4.88 | 0.33 | |||||||||
CLASS R6 SHARES | May 29, 2015 | (2.59 | ) | 5.69 | 1.04 | |||||||||
INSTITUTIONAL CLASS SHARES | April 30, 2001 | (2.67 | ) | 5.66 | 1.02 | |||||||||
SELECT CLASS SHARES | February 28, 2006 | (2.73 | ) | 5.46 | 0.80 | |||||||||
| * | Sales Charge for Class A Shares is 5.25%. |
| ** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/06 TO 10/31/16)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2 Shares prior to its inception date are based on the performance of Class A Shares. The actual returns for Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares.
Returns for Class R6 Shares prior to its inception date are based on the performance of Institutional Class Shares. The actual returns of R6 Shares would have been different than those shown because R6 Shares have different expenses than Class A Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Intrepid International Fund, the MSCI EAFE Index and the Lipper International Multi-Cap Core Funds Index from October 31, 2006 to October 31, 2016. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation
treaties. The performance of the Lipper International Multi-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Multi-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 35 | ||||||
Table of Contents
JPMorgan Emerging Economies Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 95.3% |
| ||||||
Brazil — 4.3% |
| |||||||
| 2,216 | Banco do Brasil S.A. (a) | 20,373 | ||||||
| 1,054 | Cia de Saneamento Basico do Estado de Sao Paulo, ADR (a) | 11,092 | ||||||
| 2,148 | EDP — Energias do Brasil S.A. | 10,291 | ||||||
| 2,484 | Marfrig Global Foods S.A. (a) | 4,412 | ||||||
| 2,406 | MRV Engenharia e Participacoes S.A. | 9,271 | ||||||
| 808 | Qualicorp S.A. | 5,224 | ||||||
| 2,386 | Vale S.A., ADR (a) | 16,510 | ||||||
|
| |||||||
| 77,173 | ||||||||
|
| |||||||
Chile — 0.5% |
| |||||||
| 2,823 | Cencosud S.A. | 9,202 | ||||||
|
| |||||||
China — 21.6% |
| |||||||
| 1,603 | AAC Technologies Holdings, Inc. | 15,269 | ||||||
| 216 | Alibaba Group Holding Ltd., ADR (a) | 21,932 | ||||||
| 6,116 | Anhui Conch Cement Co., Ltd., Class H | 16,903 | ||||||
| 50,174 | Bank of China Ltd., Class H | 22,484 | ||||||
| 6,365 | BYD Electronic International Co., Ltd. | 5,008 | ||||||
| 17,899 | China CITIC Bank Corp., Ltd., Class H | 11,544 | ||||||
| 10,733 | China Everbright Bank Co., Ltd., Class H | 4,893 | ||||||
| 6,885 | China Lesso Group Holdings Ltd. | 5,040 | ||||||
| 4,874 | China Mengniu Dairy Co., Ltd. | 9,207 | ||||||
| 8,328 | China Merchants Bank Co., Ltd., Class H | 20,252 | ||||||
| 8,814 | China Shenhua Energy Co., Ltd., Class H | 18,272 | ||||||
| 5,567 | China Vanke Co., Ltd., Class H | 14,530 | ||||||
| 506 | Chlitina Holding Ltd. | 2,215 | ||||||
| 8,500 | CSPC Pharmaceutical Group Ltd. | 8,801 | ||||||
| 13,350 | Geely Automobile Holdings Ltd. | 13,736 | ||||||
| 8,414 | Guangzhou Automobile Group Co., Ltd., Class H | 10,161 | ||||||
| 10,732 | Huadian Power International Corp., Ltd., Class H | 4,600 | ||||||
| 162 | Huaneng Power International, Inc., Class H | 7,364 | ||||||
| 11,980 | Huaneng Power International, Inc., Class H | 99 | ||||||
| 9,397 | Industrial & Commercial Bank of China Ltd., Class H | 5,644 | ||||||
| 57,463 | Industrial & Commercial Bank of China Ltd., Class H | 34,491 | ||||||
| 103 | NetEase, Inc., ADR | 26,518 | ||||||
| 137 | New Oriental Education & Technology Group, Inc., ADR (a) | 6,848 | ||||||
| 7,768 | PICC Property & Casualty Co., Ltd., Class H | 12,538 | ||||||
| 2,089 | Shanghai Pharmaceuticals Holding Co., Ltd., Class H | 5,376 | ||||||
| 6,236 | Shenzhen Expressway Co., Ltd., Class H | 6,249 | ||||||
| 785 | Shenzhou International Group Holdings Ltd. | 5,200 | ||||||
| 6,850 | Sinopec Shanghai Petrochemical Co., Ltd., Class H | 3,492 | ||||||
| 3,207 | Sinopharm Group Co., Ltd., Class H | 15,574 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
China — continued |
| |||||||
| 901 | Sunny Optical Technology Group Co., Ltd. | 4,394 | ||||||
| 1,095 | Tencent Holdings Ltd. | 29,025 | ||||||
| 3,174 | TravelSky Technology Ltd., Class H | 6,772 | ||||||
| 11,922 | Xinyi Solar Holdings Ltd. (a) | 4,417 | ||||||
| 5,238 | Zhejiang Expressway Co., Ltd., Class H | 5,484 | ||||||
|
| |||||||
| 384,332 | ||||||||
|
| |||||||
Hong Kong — 4.0% |
| |||||||
| 10,160 | China Power International Development Ltd. | 3,695 | ||||||
| 5,256 | China Resources Land Ltd. | 13,054 | ||||||
| 4,038 | COSCO Shipping Ports Ltd. | 4,003 | ||||||
| 1,720 | Kingboard Chemical Holdings Ltd. | 5,084 | ||||||
| 6,501 | Lee & Man Paper Manufacturing Ltd. | 4,885 | ||||||
| 5,963 | Nine Dragons Paper Holdings Ltd. | 4,848 | ||||||
| 3,614 | Shenzhen International Holdings Ltd. | 5,580 | ||||||
| 9,802 | Skyworth Digital Holdings Ltd. | 6,327 | ||||||
| 12,624 | Truly International Holdings Ltd. | 4,937 | ||||||
| 17,006 | WH Group Ltd. (e) | 13,773 | ||||||
| 6,526 | Xinyi Glass Holdings Ltd. (a) | 5,611 | ||||||
|
| |||||||
| 71,797 | ||||||||
|
| |||||||
Hungary — 1.4% |
| |||||||
| 135 | MOL Hungarian Oil & Gas plc | 8,628 | ||||||
| 583 | OTP Bank plc | 16,330 | ||||||
|
| |||||||
| 24,958 | ||||||||
|
| |||||||
India — 3.2% |
| |||||||
| 1,540 | Bharat Petroleum Corp., Ltd. | 15,465 | ||||||
| 1,106 | HCL Technologies Ltd. | 12,715 | ||||||
| 2,181 | Hindustan Petroleum Corp., Ltd. | 15,284 | ||||||
| 353 | Tata Motors Ltd., ADR | 13,918 | ||||||
|
| |||||||
| 57,382 | ||||||||
|
| |||||||
Indonesia — 0.3% |
| |||||||
| 833 | Gudang Garam Tbk PT | 4,333 | ||||||
|
| |||||||
Malaysia — 1.4% |
| |||||||
| 14,521 | AirAsia Bhd | 9,587 | ||||||
| 4,271 | Tenaga Nasional Bhd | 14,600 | ||||||
|
| |||||||
| 24,187 | ||||||||
|
| |||||||
Mexico — 2.7% |
| |||||||
| 1,388 | Arca Continental S.A.B. de C.V. | 8,637 | ||||||
| 569 | Coca-Cola Femsa S.A.B. de C.V., Series L | 4,273 | ||||||
| 168 | Fomento Economico Mexicano S.A.B. de C.V., ADR | 16,099 | ||||||
| 455 | Gruma S.A.B. de C.V., Class B | 6,311 | ||||||
| 5,458 | Grupo Mexico S.A.B. de C.V., Series B | 13,447 | ||||||
|
| |||||||
| 48,767 | ||||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 36 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Poland — 2.7% |
| |||||||
| 561 | Eurocash S.A. | 5,682 | ||||||
| 716 | KGHM Polska Miedz S.A. | 12,999 | ||||||
| 1,122 | Polski Koncern Naftowy Orlen S.A. | 22,223 | ||||||
| 4,855 | Polskie Gornictwo Naftowe i Gazownictwo S.A. | 6,216 | ||||||
|
| |||||||
| 47,120 | ||||||||
|
| |||||||
Russia — 9.0% |
| |||||||
| 7,316 | Alrosa PJSC | 10,234 | ||||||
| 380 | LUKOIL PJSC, ADR | 18,494 | ||||||
| 56 | Magnit PJSC | 9,352 | ||||||
| 20,921 | Magnitogorsk Iron & Steel OJSC | 10,512 | ||||||
| 1,139 | MMC Norilsk Nickel PJSC, ADR | 17,181 | ||||||
| 1,742 | Mobile TeleSystems PJSC, ADR | 13,429 | ||||||
| 6,717 | Moscow Exchange MICEX-RTS PJSC | 12,373 | ||||||
| 140 | Ros Agro plc, GDR (e) | 1,827 | ||||||
| 51 | Ros Agro plc, GDR | 669 | ||||||
| 2,912 | Rosneft PJSC, GDR | 15,836 | ||||||
| 2,137 | Sberbank PAO, ADR | 20,260 | ||||||
| 771 | Severstal PJSC, GDR | 10,874 | ||||||
| 326 | Tatneft PJSC, ADR | 10,869 | ||||||
| 252 | X5 Retail Group N.V., GDR (a) | 7,534 | ||||||
|
| |||||||
| 159,444 | ||||||||
|
| |||||||
Singapore — 0.6% |
| |||||||
| 366 | Jardine Cycle & Carriage Ltd. | 11,086 | ||||||
|
| |||||||
South Africa — 1.1% |
| |||||||
| 646 | SPAR Group Ltd. (The) | 9,144 | ||||||
| 333 | Tiger Brands Ltd. | 9,494 | ||||||
|
| |||||||
| 18,638 | ||||||||
|
| |||||||
South Korea — 18.9% |
| |||||||
| 30 | Amorepacific Corp. | 9,421 | ||||||
| 25 | BGF retail Co., Ltd. | 3,802 | �� | |||||
| 43 | Com2uSCorp (a) | 3,531 | ||||||
| 25 | Coway Co., Ltd. | 1,968 | ||||||
| 703 | Hana Financial Group, Inc. | 20,100 | ||||||
| 260 | Hankook Tire Co., Ltd. | 12,478 | ||||||
| 78 | Hyosung Corp. | 9,123 | ||||||
| 13 | LG Household & Health Care Ltd. | 9,292 | ||||||
| 481 | LG Uplus Corp. | 4,954 | ||||||
| 45 | Mando Corp. | 10,515 | ||||||
| 74 | NCSoft Corp. | 17,078 | ||||||
| 328 | Partron Co., Ltd. | 2,561 | ||||||
| 85 | POSCO | 17,614 | ||||||
| 23 | Samsung Electronics Co., Ltd. | 32,889 | ||||||
| 435 | Shinhan Financial Group Co., Ltd. | 16,640 | ||||||
| 585 | SK Hynix, Inc. | 20,940 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
South Korea — continued |
| |||||||
| 157 | SK Innovation Co., Ltd. | 20,672 | ||||||
| 202 | S-Oil Corp. | 13,827 | ||||||
| 1,689 | Woori Bank | 18,405 | ||||||
| 73 | Hyundai Heavy Industries Co., Ltd. (a) | 9,220 | ||||||
| 278 | Hyundai Marine & Fire Insurance Co., Ltd. | 8,582 | ||||||
| 70 | Hyundai Mobis Co., Ltd. | 16,660 | ||||||
| 452 | Korea Electric Power Corp. | 19,568 | ||||||
| 185 | KT&G Corp. | 18,262 | ||||||
| 783 | LG Display Co., Ltd. | 18,720 | ||||||
|
| |||||||
| 336,822 | ||||||||
|
| |||||||
Taiwan — 11.6% |
| |||||||
| 5,989 | Accton Technology Corp. | 9,564 | ||||||
| 1,340 | Casetek Holdings Ltd. | 4,302 | ||||||
| 1,196 | Catcher Technology Co., Ltd. | 9,362 | ||||||
| 3,543 | Elite Material Co., Ltd. | 9,864 | ||||||
| 2,863 | FLEXium Interconnect, Inc. | 8,142 | ||||||
| 703 | Grape King Bio Ltd. | 5,903 | ||||||
| 6,692 | Hon Hai Precision Industry Co., Ltd. | 18,075 | ||||||
| 8,410 | King Yuan Electronics Co., Ltd. | 7,397 | ||||||
| 179 | Largan Precision Co., Ltd. | 21,118 | ||||||
| 3,721 | Micro-Star International Co., Ltd. | 10,705 | ||||||
| 5,382 | Pegatron Corp. | 14,492 | ||||||
| 3,759 | Powertech Technology, Inc. | 10,725 | ||||||
| 1,555 | Realtek Semiconductor Corp. | 5,267 | ||||||
| 290 | Silicon Motion Technology Corp., ADR | 11,759 | ||||||
| 281 | St. Shine Optical Co., Ltd. | 5,905 | ||||||
| 629 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 19,551 | ||||||
| 2,664 | Tong Yang Industry Co., Ltd. | 6,199 | ||||||
| 7,984 | Uni-President Enterprises Corp. | 15,425 | ||||||
| 2,853 | Win Semiconductors Corp. | 7,923 | ||||||
| 2,012 | Zhen Ding Technology Holding Ltd. | 4,577 | ||||||
|
| |||||||
| 206,255 | ||||||||
|
| |||||||
Thailand — 6.3% |
| |||||||
| 19,637 | Charoen Pokphand Foods PCL, NVDR | 17,660 | ||||||
| 5,223 | CP ALL PCL, NVDR | 9,053 | ||||||
| 55,055 | IRPC PCL, NVDR | 7,515 | ||||||
| 3,721 | Kiatnakin Bank PCL, NVDR | 6,214 | ||||||
| 36,137 | Krung Thai Bank PCL, NVDR | 17,748 | ||||||
| 1,887 | PTT PCL, NVDR | 18,578 | ||||||
| 27,353 | Star Petroleum Refining PCL, NVDR | 9,820 | ||||||
| 11,804 | Thai Beverage PCL | 8,183 | ||||||
| 3,695 | Thai Oil PCL, NVDR | 7,381 | ||||||
| 9,159 | Thai Union Group PCL, NVDR | 5,676 | ||||||
| 4,090 | Thanachart Capital PCL, NVDR | 4,612 | ||||||
|
| |||||||
| 112,440 | ||||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 37 | ||||||
Table of Contents
JPMorgan Emerging Economies Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands, except number of Future contracts)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Turkey — 4.3% |
| |||||||
| 6,747 | Akbank TAS | 18,057 | ||||||
| 1,250 | Arcelik A.S. | 8,261 | ||||||
| 19,246 | Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 19,666 | ||||||
| 8,103 | Eregli Demir ve Celik Fabrikalari TAS | 11,018 | ||||||
| 3,722 | Tekfen Holding A.S. | 9,445 | ||||||
| 728 | Tofas Turk Otomobil Fabrikasi A.S. | 5,489 | ||||||
| 3,907 | Turkiye Sise ve Cam Fabrikalari A.S. | 4,110 | ||||||
| 193 | Ulker Biskuvi Sanayi A.S. | 1,197 | ||||||
|
| |||||||
| 77,243 | ||||||||
|
| |||||||
United Arab Emirates — 1.4% |
| |||||||
| 10,423 | Aldar Properties PJSC | 7,462 | ||||||
| 9,329 | Emaar Properties PJSC | 17,665 | ||||||
|
| |||||||
| 25,127 | ||||||||
|
| |||||||
Total Common Stocks | 1,696,306 | |||||||
|
| |||||||
| Preferred Stocks — 1.8% |
| ||||||
Brazil — 1.2% |
| |||||||
| 682 | Braskem S.A., Class A | 6,057 | ||||||
| 559 | Cia Brasileira de Distribuicao | 10,701 | ||||||
| 1,798 | Cia Energetica de Minas Gerais | 5,491 | ||||||
|
| |||||||
| 22,249 | ||||||||
|
| |||||||
Russia — 0.6% |
| |||||||
| 23,397 | Surgutneftegas OJSC | 10,609 | ||||||
|
| |||||||
Total Preferred Stocks | 32,858 | |||||||
|
| |||||||
| Short-Term Investment — 2.1% |
| ||||||
Investment Company — 2.1% |
| |||||||
| 36,972 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 36,972 | ||||||
|
| |||||||
Total Investments — 99.2% | 1,766,136 | |||||||
Other Assets in Excess of | 13,576 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,779,712 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 14.6 | % | ||
Oil, Gas & Consumable Fuels | 12.4 | |||
Metals & Mining | 6.8 | |||
Electronic Equipment, Instruments & Components | 6.4 | |||
Semiconductors & Semiconductor Equipment | 5.0 | |||
Food Products | 4.8 | |||
Internet Software & Services | 4.4 | |||
Technology Hardware, Storage & Peripherals | 4.1 | |||
Food & Staples Retailing | 3.7 | |||
Real Estate Management & Development | 3.0 | |||
Auto Components | 2.9 | |||
Electric Utilities | 2.8 | |||
Automobiles | 2.5 | |||
Beverages | 2.1 | |||
Personal Products | 1.5 | |||
Health Care Providers & Services | 1.5 | |||
Household Durables | 1.5 | |||
Tobacco | 1.3 | |||
Transportation Infrastructure | 1.2 | |||
Insurance | 1.2 | |||
Software | 1.2 | |||
Equity Real Estate Investment Trusts (REITs) | 1.1 | |||
IT Services | 1.1 | |||
Chemicals | 1.1 | |||
Construction Materials | 1.0 | |||
Others (each less than 1.0%) | 8.7 | |||
Short-Term Investment | 2.1 | |||
| Futures Contracts | ||||||||||||||||||||
| NUMBER OF CONTRACTS | DESCRIPTION | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | |||||||||||||||
Long Futures Outstanding | ||||||||||||||||||||
| 508 | Mini MSCI Emerging Markets Index | 12/16/16 | USD | $ | 22,949 | $ | (282 | ) | ||||||||||||
|
| |||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 38 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan Emerging Markets Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 95.3% |
| ||||||
Argentina — 0.6% |
| |||||||
| 117 | MercadoLibre, Inc. | 19,667 | ||||||
|
| |||||||
Australia — 0.7% |
| |||||||
| 4,119 | Oil Search Ltd. | 20,646 | ||||||
|
| |||||||
Brazil — 10.0% |
| |||||||
| 5,254 | AMBEV S.A., ADR | 31,000 | ||||||
| 5,009 | BB Seguridade Participacoes S.A. | 50,219 | ||||||
| 4,254 | CCR S.A. | 23,165 | ||||||
| 2,728 | Cielo S.A. | 27,730 | ||||||
| 3,647 | Itau Unibanco Holding S.A. (Preference Shares), ADR | 43,508 | ||||||
| 4,019 | Kroton Educacional S.A. | 20,008 | ||||||
| 4,439 | Lojas Renner S.A. | 37,530 | ||||||
| 846 | Marcopolo S.A. (a) | 663 | ||||||
| 819 | Raia Drogasil S.A. (a) | 18,227 | ||||||
| 2,102 | Ultrapar Participacoes S.A. | 47,798 | ||||||
| 2,451 | WEG S.A. | 13,545 | ||||||
|
| |||||||
| 313,393 | ||||||||
|
| |||||||
China — 16.3% |
| |||||||
| 3,047 | AAC Technologies Holdings, Inc. | 29,027 | ||||||
| 748 | Alibaba Group Holding Ltd., ADR (a) | 76,016 | ||||||
| 182 | Baidu, Inc., ADR (a) | 32,166 | ||||||
| 6,281 | Chongqing Changan Automobile Co., Ltd., Class B | 9,577 | ||||||
| 11,331 | CNOOC Ltd. | 14,258 | ||||||
| 1,143 | CNOOC Ltd. | 1,442 | ||||||
| 1,712 | JD.com, Inc., ADR (a) | 44,431 | ||||||
| 7,162 | Ping An Insurance Group Co. of China Ltd., Class H | 37,697 | ||||||
| 4,527 | Shenzhou International Group Holdings Ltd. | 29,985 | ||||||
| 7,535 | Tencent Holdings Ltd. | 199,703 | ||||||
| 1,464 | Tsingtao Brewery Co., Ltd., Class H | 5,841 | ||||||
| 2,071 | Vipshop Holdings Ltd., ADR (a) | 28,315 | ||||||
|
| |||||||
| 508,458 | ||||||||
|
| |||||||
Cyprus — 0.2% |
| |||||||
| 1,207 | Globaltrans Investment plc, GDR | 5,856 | ||||||
|
| |||||||
Egypt — 0.3% |
| |||||||
| 2,247 | Commercial International Bank Egypt SAE, GDR | 9,934 | ||||||
|
| |||||||
Hong Kong — 6.4% |
| |||||||
| 18,667 | AIA Group Ltd. | 117,432 | ||||||
| 517 | Jardine Matheson Holdings Ltd. | 31,497 | ||||||
| 11,573 | Sands China Ltd. | 50,223 | ||||||
|
| |||||||
| 199,152 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
India — 20.0% | ||||||||
| 1,756 | Asian Paints Ltd. | 28,290 | ||||||
| 2,198 | HDFC Bank Ltd. | 48,780 | ||||||
| 903 | HDFC Bank Ltd., ADR | 63,940 | ||||||
| 5,303 | Housing Development Finance Corp., Ltd. | 109,527 | ||||||
| 1,640 | IndusInd Bank Ltd. | 29,382 | ||||||
| 3,681 | Infosys Ltd., ADR | 56,171 | ||||||
| 16,999 | ITC Ltd. | 61,550 | ||||||
| 2,407 | Kotak Mahindra Bank Ltd. | 29,563 | ||||||
| 1,845 | Lupin Ltd. | 41,965 | ||||||
| 2,334 | Tata Consultancy Services Ltd. | 83,586 | ||||||
| 754 | Tata Motors Ltd., ADR | 29,698 | ||||||
| 733 | UltraTech Cement Ltd. | 43,560 | ||||||
|
| |||||||
| 626,012 | ||||||||
|
| |||||||
Indonesia — 3.2% | ||||||||
| 71,609 | Astra International Tbk PT | 45,179 | ||||||
| 28,279 | Bank Central Asia Tbk PT | 33,622 | ||||||
| 23,468 | Bank Rakyat Indonesia Persero Tbk PT | 21,913 | ||||||
|
| |||||||
| 100,714 | ||||||||
|
| |||||||
Mexico — 1.1% | ||||||||
| 3,708 | Infraestructura Energetica Nova S.A.B. de C.V. | 16,417 | ||||||
| 1,583 | Promotora y Operadora de Infraestructura S.A.B. de C.V. | 17,698 | ||||||
|
| |||||||
| 34,115 | ||||||||
|
| |||||||
Panama — 1.1% | ||||||||
| 375 | Copa Holdings S.A., Class A | 34,550 | ||||||
|
| |||||||
Peru — 1.2% | ||||||||
| 246 | Credicorp Ltd. | 36,520 | ||||||
|
| |||||||
Russia — 5.5% | ||||||||
| 643 | LUKOIL PJSC, ADR | 31,282 | ||||||
| 306 | Magnit PJSC | 51,382 | ||||||
| 181 | Magnit PJSC, GDR | 7,174 | ||||||
| 35,253 | Sberbank PAO | 82,057 | ||||||
|
| |||||||
| 171,895 | ||||||||
|
| |||||||
South Africa — 13.2% | ||||||||
| 1,755 | Aspen Pharmacare Holdings Ltd. | 38,223 | ||||||
| 4,360 | Bid Corp. Ltd. | 76,558 | ||||||
| 3,907 | Bidvest Group Ltd. (The) | 48,536 | ||||||
| 331 | Capitec Bank Holdings Ltd. | 16,801 | ||||||
| 9,183 | FirstRand Ltd. | 32,927 | ||||||
| 1,738 | Mr Price Group Ltd. | 19,805 | ||||||
| 3,174 | Remgro Ltd. | 52,698 | ||||||
| 9,054 | Sanlam Ltd. | 43,856 | ||||||
| 2,463 | Shoprite Holdings Ltd. | 36,353 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 39 | ||||||
Table of Contents
JPMorgan Emerging Markets Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
South Africa — continued | ||||||||
| 7,717 | Woolworths Holdings Ltd. | 44,695 | ||||||
|
| |||||||
| 410,452 | ||||||||
|
| |||||||
South Korea — 3.8% | ||||||||
| 213 | Hyundai Motor Co. | 25,958 | ||||||
| 671 | Kia Motors Corp. | 23,827 | ||||||
| 48 | Samsung Electronics Co., Ltd. | 68,691 | ||||||
|
| |||||||
| 118,476 | ||||||||
|
| |||||||
Switzerland — 0.8% | ||||||||
| 443 | Luxoft Holding, Inc. (a) | 23,468 | ||||||
|
| |||||||
Taiwan — 8.0% | ||||||||
| 5,761 | Delta Electronics, Inc. | 30,329 | ||||||
| 1,732 | Eclat Textile Co., Ltd. | 19,625 | ||||||
| 239 | Largan Precision Co., Ltd. | 28,196 | ||||||
| 5,095 | President Chain Store Corp. | 38,068 | ||||||
| 4,294 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 133,552 | ||||||
|
| |||||||
| 249,770 | ||||||||
|
| |||||||
Thailand — 1.4% | ||||||||
| 5,060 | Kasikornbank PCL, NVDR | 24,836 | ||||||
| 1,048 | Siam Cement PCL (The) | 15,090 | ||||||
| 284 | Siam Cement PCL (The), NVDR | 4,061 | ||||||
|
| |||||||
| 43,987 | ||||||||
|
| |||||||
Turkey — 0.3% | ||||||||
| 1,022 | Ford Otomotiv Sanayi A.S. | 10,444 | ||||||
|
| |||||||
United States — 1.2% | ||||||||
| 372 | EPAM Systems, Inc. (a) | 23,928 | ||||||
| 596 | Yum China Holdings, Inc. (a) | 14,442 | ||||||
|
| |||||||
| 38,370 | ||||||||
|
| |||||||
Total Common Stocks | 2,975,879 | |||||||
|
| |||||||
| Preferred Stocks — 0.7% |
| ||||||
Brazil — 0.7% | ||||||||
| 1,178 | Itau Unibanco Holding S.A. | 14,199 | ||||||
| 6,706 | Marcopolo S.A. | 6,954 | ||||||
|
| |||||||
Total Preferred Stocks | 21,153 | |||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Structured Instruments — 1.1% |
| ||||||
China — 1.1% | ||||||||
Low Exercise Cash Settled Call Warrants — 1.1% |
| |||||||
Chongqing Changan Automobile Co., Ltd., | ||||||||
| 2,681 | expiring 02/17/17 (Strike Price $1.00) (issued through UBS AG) (a) | 6,202 | ||||||
| 3,931 | expiring 09/29/17 (Strike Price $0.00) (issued through BNP Paribas) (a) | 9,092 | ||||||
| 3,453 | Hangzhou Robam Appliances Co., Ltd., | 19,191 | ||||||
|
| |||||||
Total Structured Instruments | 34,485 | |||||||
|
| |||||||
| NUMBER OF WARRANT | ||||||||
| Warrant — 0.6% |
| ||||||
Saudi Arabia — 0.6% | ||||||||
| 1,278 | Almarai Co., expiring 07/24/17 | 19,787 | ||||||
|
| |||||||
| SHARES | ||||||||
| Short-Term Investment — 2.9% |
| ||||||
Investment Company — 2.9% | ||||||||
| 91,254 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 91,254 | ||||||
|
| |||||||
Total Investments — 100.6% | 3,142,558 | |||||||
Liabilities in Excess of | (17,980 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 3,124,578 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
| 40 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 14.8 | % | ||
Internet Software & Services | 10.4 | |||
Insurance | 7.9 | |||
Food & Staples Retailing | 7.2 | |||
IT Services | 6.8 | |||
Automobiles | 4.6 | |||
Semiconductors & Semiconductor Equipment | 4.2 | |||
Oil, Gas & Consumable Fuels | 3.7 | |||
Thrifts & Mortgage Finance | 3.5 | |||
Electronic Equipment, Instruments & Components | 2.8 | |||
Diversified Financial Services | 2.7 | |||
Multiline Retail | 2.6 | |||
Pharmaceuticals | 2.6 | |||
| INDUSTRY | PERCENTAGE | |||
Industrial Conglomerates | 2.5 | % | ||
Internet & Direct Marketing Retail | 2.3 | |||
Technology Hardware, Storage & Peripherals | 2.2 | |||
Hotels, Restaurants & Leisure | 2.1 | |||
Construction Materials | 2.0 | |||
Tobacco | 2.0 | |||
Textiles, Apparel & Luxury Goods | 1.6 | |||
Transportation Infrastructure | 1.3 | |||
Beverages | 1.2 | |||
Airlines | 1.1 | |||
Others (each less than 1.0%) | 5.0 | |||
Short-Term Investment | 2.9 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 41 | ||||||
Table of Contents
JPMorgan Emerging Markets Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 94.9% | |||||||
Brazil — 9.9% |
| |||||||
| 58 | AMBEV S.A., ADR | 345 | ||||||
| 17 | Banco Bradesco S.A., ADR (a) | 174 | ||||||
| 6 | Banco do Brasil S.A. (a) | 60 | ||||||
| 33 | BB Seguridade Participacoes S.A. | 327 | ||||||
| 18 | Engie Brasil Energia S.A. | 236 | ||||||
|
| |||||||
| 1,142 | ||||||||
|
| |||||||
Chile — 2.8% |
| |||||||
| 14 | Banco Santander Chile, ADR | 325 | ||||||
|
| |||||||
China — 2.4% |
| |||||||
| 88 | Fuyao Glass Industry Group Co., Ltd., Class A | 231 | ||||||
| 16 | Fuyao Glass Industry Group Co., Ltd., Class H (e) | 48 | ||||||
|
| |||||||
| 279 | ||||||||
|
| |||||||
Czech Republic — 3.6% |
| |||||||
| 7 | Komercni Banka A.S. | 250 | ||||||
| 47 | Moneta Money Bank A.S., (a) (e) | 165 | ||||||
|
| |||||||
| 415 | ||||||||
|
| |||||||
Hong Kong — 11.7% |
| |||||||
| 31 | China Mobile Ltd. | 349 | ||||||
| 158 | China Resources Power Holdings Co., Ltd. | 268 | ||||||
| 11 | Hang Seng Bank Ltd. | 198 | ||||||
| 158 | HKT Trust & HKT Ltd. | 217 | ||||||
| 55 | Sands China Ltd. | 238 | ||||||
| 7 | VTech Holdings Ltd. | 85 | ||||||
|
| |||||||
| 1,355 | ||||||||
|
| |||||||
Hungary — 1.8% |
| |||||||
| 7 | OTP Bank plc | 208 | ||||||
|
| |||||||
Indonesia — 1.2% |
| |||||||
| 420 | Telekomunikasi Indonesia Persero Tbk PT | 136 | ||||||
|
| |||||||
Mexico — 4.3% |
| |||||||
| 54 | Bolsa Mexicana de Valores S.A.B. de C.V. | 87 | ||||||
| 49 | Fibra Uno Administracion S.A. de C.V. | 93 | ||||||
| 147 | Kimberly-Clark de Mexico S.A.B. de C.V., Class A | 317 | ||||||
|
| |||||||
| 497 | ||||||||
|
| |||||||
Russia — 7.4% |
| |||||||
| 4 | LUKOIL PJSC, ADR | 218 | ||||||
| 6 | MegaFon PJSC, GDR | 54 | ||||||
| 7 | MMC Norilsk Nickel PJSC, ADR | 99 | ||||||
| 10 | Mobile TeleSystems PJSC, ADR | 74 | ||||||
| 139 | Moscow Exchange MICEX-RTS PJSC | 256 | ||||||
| 5 | PhosAgro PJSC, GDR | 62 | ||||||
| 7 | Severstal PJSC, GDR | 96 | ||||||
|
| |||||||
| 859 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
South Africa — 14.4% |
| |||||||
| 36 | AVI Ltd. | 250 | ||||||
| 21 | Barclays Africa Group Ltd. | 241 | ||||||
| 9 | Bid Corp. Ltd. | 162 | ||||||
| 6 | Bidvest Group Ltd. (The) | 71 | ||||||
| 67 | FirstRand Ltd. | 239 | ||||||
| 76 | Life Healthcare Group Holdings Ltd. | 203 | ||||||
| 96 | MMI Holdings Ltd. | 162 | ||||||
| 17 | Vodacom Group Ltd. | 180 | ||||||
| 28 | Woolworths Holdings Ltd. | 162 | ||||||
|
| |||||||
| 1,670 | ||||||||
|
| |||||||
South Korea — 6.2% |
| |||||||
| 2 | Kangwon Land, Inc. | 82 | ||||||
| 2 | KT&G Corp. | 244 | ||||||
| — | (h) | Samsung Electronics Co., Ltd. | 223 | |||||
| 8 | SK Telecom Co., Ltd., ADR | 168 | ||||||
|
| |||||||
| 717 | ||||||||
|
| |||||||
Taiwan — 22.8% |
| |||||||
| 16 | Asustek Computer, Inc. | 143 | ||||||
| 81 | Cheng Shin Rubber Industry Co., Ltd. | 165 | ||||||
| 36 | Chicony Electronics Co., Ltd. | 92 | ||||||
| 61 | Delta Electronics, Inc. | 320 | ||||||
| 54 | Far EasTone Telecommunications Co., Ltd. | 127 | ||||||
| 27 | MediaTek, Inc. | 205 | ||||||
| 35 | Novatek Microelectronics Corp. | 131 | ||||||
| 23 | President Chain Store Corp. | 172 | ||||||
| 74 | Quanta Computer, Inc. | 150 | ||||||
| 29 | Siliconware Precision Industries Co., Ltd. | 44 | ||||||
| 68 | Taiwan Mobile Co., Ltd. | 238 | ||||||
| 18 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 555 | ||||||
| 148 | Vanguard International Semiconductor Corp. | 301 | ||||||
|
| |||||||
| 2,643 | ||||||||
|
| |||||||
Thailand — 2.5% |
| |||||||
| 16 | Siam Cement PCL (The) | 235 | ||||||
| 12 | Thai Oil PCL | 23 | ||||||
| 19 | Thai Oil PCL, NVDR | 38 | ||||||
|
| |||||||
| 296 | ||||||||
|
| |||||||
Turkey — 2.5% |
| |||||||
| 6 | Eregli Demir ve Celik Fabrikalari TAS | 9 | ||||||
| 25 | Tofas Turk Otomobil Fabrikasi A.S. | 187 | ||||||
| 4 | Tupras Turkiye Petrol Rafinerileri A.S. | 91 | ||||||
|
| |||||||
| 287 | ||||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 42 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
United Arab Emirates — 1.4% |
| |||||||
| 51 | First Gulf Bank PJSC | 160 | ||||||
|
| |||||||
Total Common Stocks | 10,989 | |||||||
|
| |||||||
| Structured Instruments — 2.0% |
| ||||||
China — 2.0% |
| |||||||
Low Exercise Cash Settled Call Warrants — 2.0% |
| |||||||
| 33 | Midea Group Co., Ltd., expiring 02/17/2017 (Strike Price $1.00) (issued through UBS AG) (a) | 131 | ||||||
| 23 | Midea Group Co., Ltd., expiring 10/13/2017 (Strike Price $0.00) (issued through BNP Paribas) (a) | 93 | ||||||
|
| |||||||
Total Structured Instruments | 224 | |||||||
|
| |||||||
| NUMBER OF WARRANTS | ||||||||
| Warrants — 1.4% |
| ||||||
Saudi Arabia — 1.4% |
| |||||||
| 10 | Al Rajhi Bank, expiring 01/22/18 (Strike Price $1.00) (a) | 154 | ||||||
| 1 | Yanbu National Petrochemical, expiring 07/31/17 (Strike Price $1.00) (a) | 11 | ||||||
|
| |||||||
Total Warrants | 165 | |||||||
|
| |||||||
| SHARES | ||||||||
| Short-Term Investment — 2.4% |
| ||||||
Investment Company — 2.4% |
| |||||||
| 282 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, | 282 | ||||||
|
| |||||||
Total Investments — 100.7% | 11,660 | |||||||
Liabilities in Excess of | (84 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 11,576 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 17.4 | % | ||
Semiconductors & Semiconductor Equipment | 10.6 | |||
Wireless Telecommunication Services | 10.2 | |||
Technology Hardware, Storage & Peripherals | 5.2 | |||
Independent Power & Renewable Electricity Producers | 4.3 | |||
Insurance | 4.2 | |||
Capital Markets | 4.1 | |||
Auto Components | 3.8 | |||
Oil, Gas & Consumable Fuels | 3.2 | |||
Diversified Telecommunication Services | 3.0 | |||
Beverages | 3.0 | |||
Food & Staples Retailing | 2.9 | |||
Hotels, Restaurants & Leisure | 2.7 | |||
Electronic Equipment, Instruments & Components | 2.7 | |||
Household Products | 2.7 | |||
Food Products | 2.1 | |||
Construction Materials | 2.1 | |||
Tobacco | 2.1 | |||
Diversified Financial Services | 2.1 | |||
Metals & Mining | 1.7 | |||
Health Care Providers & Services | 1.7 | |||
Automobiles | 1.6 | |||
Multiline Retail | 1.4 | |||
Others (each less than 1.0%) | 2.8 | |||
Short-Term Investment | 2.4 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 43 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 99.0% |
| ||||||
Australia — 2.7% |
| |||||||
| 119 | AGL Energy Ltd. | 1,737 | ||||||
| 987 | Alumina Ltd. | 1,186 | ||||||
| 299 | Amcor Ltd. | 3,337 | ||||||
| 531 | AMP Ltd. | 1,842 | ||||||
| 306 | APA Group | 1,850 | ||||||
| 60 | Aristocrat Leisure Ltd. | 703 | ||||||
| 19 | ASX Ltd. | 662 | ||||||
| 637 | Aurizon Holdings Ltd. | 2,361 | ||||||
| 683 | Australia & New Zealand Banking Group Ltd. | 14,425 | ||||||
| 61 | Bendigo & Adelaide Bank Ltd. | 516 | ||||||
| 649 | BHP Billiton Ltd. | 11,335 | ||||||
| 459 | BHP Billiton plc | 6,909 | ||||||
| 237 | Boral Ltd. | 1,133 | ||||||
| 297 | Brambles Ltd. | 2,603 | ||||||
| 71 | Caltex Australia Ltd. | 1,649 | ||||||
| 71 | Challenger Ltd. | 579 | ||||||
| 209 | Coca-Cola Amatil Ltd. | 1,513 | ||||||
| 19 | Cochlear Ltd. | 1,805 | ||||||
| 349 | Commonwealth Bank of Australia | 19,443 | ||||||
| 166 | Computershare Ltd. | 1,334 | ||||||
| 23 | Crown Resorts Ltd. | 192 | ||||||
| 92 | CSL Ltd. | 7,005 | ||||||
| 341 | Dexus Property Group | 2,319 | ||||||
| 266 | DUET Group | 482 | ||||||
| 127 | Fortescue Metals Group Ltd. | 534 | ||||||
| 449 | Goodman Group | 2,315 | ||||||
| 211 | GPT Group (The) | 748 | ||||||
| 184 | Incitec Pivot Ltd. | 412 | ||||||
| 352 | Insurance Australia Group Ltd. | 1,473 | ||||||
| 175 | LendLease Group | 1,794 | ||||||
| 72 | Macquarie Group Ltd. | 4,362 | ||||||
| 487 | Medibank Private Ltd. | 953 | ||||||
| 1,368 | Mirvac Group | 2,171 | ||||||
| 521 | National Australia Bank Ltd. | 11,063 | ||||||
| 148 | Newcrest Mining Ltd. | 2,592 | ||||||
| 339 | Oil Search Ltd. | 1,700 | ||||||
| 112 | Orica Ltd. | 1,386 | ||||||
| 267 | Origin Energy Ltd. | 1,078 | ||||||
| 341 | Qantas Airways Ltd. | 793 | ||||||
| 357 | QBE Insurance Group Ltd. | 2,703 | ||||||
| 40 | Ramsay Health Care Ltd. | 2,251 | ||||||
| 25 | REA Group Ltd. | 955 | ||||||
| 317 | Santos Ltd. | 848 | ||||||
| 958 | Scentre Group | 3,065 | ||||||
| 15 | SEEK Ltd. | 162 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Australia — continued |
| |||||||
| 44 | Sonic Healthcare Ltd. | 690 | ||||||
| 1,438 | South32 Ltd. | 2,806 | ||||||
| 490 | Stockland | 1,646 | ||||||
| 338 | Suncorp Group Ltd. | 3,069 | ||||||
| 319 | Sydney Airport | 1,517 | ||||||
| 341 | Tabcorp Holdings Ltd. | 1,253 | ||||||
| 166 | Tatts Group Ltd. | 511 | ||||||
| 869 | Telstra Corp., Ltd. | 3,286 | ||||||
| 131 | TPG Telecom Ltd. | 751 | ||||||
| 499 | Transurban Group | 3,936 | ||||||
| 110 | Treasury Wine Estates Ltd. | 895 | ||||||
| 1,285 | Vicinity Centres | 2,801 | ||||||
| 215 | Wesfarmers Ltd. | 6,688 | ||||||
| 342 | Westfield Corp. | 2,311 | ||||||
| 675 | Westpac Banking Corp. | 15,608 | ||||||
| 156 | Woodside Petroleum Ltd. | 3,346 | ||||||
| 293 | Woolworths Ltd. | 5,257 | ||||||
|
| |||||||
| 186,649 | ||||||||
|
| |||||||
Austria — 0.0% (g) | ||||||||
| — | (h) | Telekom Austria AG | — | (h) | ||||
|
| |||||||
Belgium — 0.5% | ||||||||
| 208 | Anheuser-Busch InBev S.A./N.V. | 23,859 | ||||||
| 166 | KBC Group N.V. (a) | 10,117 | ||||||
|
| |||||||
| 33,976 | ||||||||
|
| |||||||
Bermuda — 0.2% | ||||||||
| 32 | Everest Re Group Ltd. | 6,460 | ||||||
| 150 | XL Group Ltd. | 5,196 | ||||||
|
| |||||||
| 11,656 | ||||||||
|
| |||||||
Canada — 3.7% | ||||||||
| 52 | Agnico-Eagle Mines Ltd. | 2,644 | ||||||
| 33 | Agrium, Inc. | 2,989 | ||||||
| 104 | Alimentation Couche-Tard, Inc., Class B | 5,234 | ||||||
| 85 | ARC Resources Ltd. | 1,435 | ||||||
| 155 | Bank of Montreal | 9,860 | ||||||
| 280 | Bank of Nova Scotia (The) | 15,065 | ||||||
| 275 | Barrick Gold Corp. | 4,847 | ||||||
| 36 | BCE, Inc. | 1,651 | ||||||
| 221 | Brookfield Asset Management, Inc., Class A | 7,732 | ||||||
| 98 | Canadian Imperial Bank of Commerce | 7,342 | ||||||
| 188 | Canadian National Railway Co. | 11,801 | ||||||
| 270 | Canadian Natural Resources Ltd. | 8,577 | ||||||
| 84 | Canadian Pacific Railway Ltd. | 12,041 | ||||||
| 36 | Canadian Pacific Railway Ltd. | 5,137 | ||||||
| 17 | Canadian Tire Corp., Ltd., Class A | 1,670 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 44 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Canada — continued |
| |||||||
| 209 | Cenovus Energy, Inc. | 3,013 | ||||||
| 55 | CGI Group, Inc., Class A (a) | 2,602 | ||||||
| 5 | Constellation Software, Inc. | 2,205 | ||||||
| 126 | Crescent Point Energy Corp. | 1,495 | ||||||
| 29 | Dollarama, Inc. | 2,146 | ||||||
| 194 | Enbridge, Inc. | 8,378 | ||||||
| 211 | Encana Corp. | 2,014 | ||||||
| 6 | Fairfax Financial Holdings Ltd. | 2,829 | ||||||
| 69 | Fortis, Inc. | 2,272 | ||||||
| 43 | Franco-Nevada Corp. | 2,787 | ||||||
| 57 | Gildan Activewear, Inc. | 1,460 | ||||||
| 198 | Goldcorp, Inc. | 3,004 | ||||||
| 73 | Great-West Lifeco, Inc. | 1,839 | ||||||
| 73 | Imperial Oil Ltd. | 2,378 | ||||||
| 32 | Intact Financial Corp. | 2,201 | ||||||
| 84 | Inter Pipeline Ltd. | 1,735 | ||||||
| 294 | Kinross Gold Corp. (a) | 1,142 | ||||||
| 56 | Loblaw Cos. Ltd. | 2,761 | ||||||
| 98 | Magna International, Inc. | 4,035 | ||||||
| 52 | Magna International, Inc. | 2,128 | ||||||
| 486 | Manulife Financial Corp. | 7,039 | ||||||
| 59 | Metro, Inc. | 1,834 | ||||||
| 82 | National Bank of Canada | 2,933 | ||||||
| 30 | Open Text Corp. | 1,855 | ||||||
| 93 | Pembina Pipeline Corp. | 2,866 | ||||||
| 207 | Potash Corp. of Saskatchewan, Inc. | 3,362 | ||||||
| 92 | Power Corp. of Canada | 1,982 | ||||||
| 62 | Power Financial Corp. | 1,457 | ||||||
| 54 | Restaurant Brands International, Inc. | 2,407 | ||||||
| 89 | Rogers Communications, Inc., Class B | 3,595 | ||||||
| 336 | Royal Bank of Canada | 20,977 | ||||||
| 63 | Saputo, Inc. | 2,270 | ||||||
| 101 | Shaw Communications, Inc., Class B | 1,993 | ||||||
| 103 | Silver Wheaton Corp. | 2,485 | ||||||
| 37 | SNC-Lavalin Group, Inc. | 1,495 | ||||||
| 152 | Sun Life Financial, Inc. | 5,084 | ||||||
| 383 | Suncor Energy, Inc. | 11,485 | ||||||
| 133 | Teck Resources Ltd., Class B | 2,867 | ||||||
| 423 | Toronto-Dominion Bank (The) | 19,206 | ||||||
| 175 | TransCanada Corp. | 7,913 | ||||||
|
| |||||||
| 255,554 | ||||||||
|
| |||||||
China — 0.0% (g) | ||||||||
| 412 | Yangzijiang Shipbuilding Holdings Ltd. | 220 | ||||||
|
| |||||||
Colombia — 0.0% | ||||||||
| — | (h) | Pacific Exploration and Production Corp. (a) | — | |||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Denmark — 0.8% | ||||||||
| 6 | AP Moller — Maersk A/S, Class B | 9,604 | ||||||
| 104 | Chr Hansen Holding A/S | 6,219 | ||||||
| 241 | Danske Bank A/S | 7,447 | ||||||
| 509 | Novo Nordisk A/S, Class B | 18,140 | ||||||
| 75 | Pandora A/S | 9,701 | ||||||
| 1,274 | TDC A/S (a) | 7,026 | ||||||
|
| |||||||
| 58,137 | ||||||||
|
| |||||||
Finland — 0.3% | ||||||||
| 153 | Cargotec Oyj, Class B | 6,287 | ||||||
| 763 | Nokia OYJ | 3,405 | ||||||
| — | (h) | Nokian Renkaat OYJ | — | (h) | ||||
| 479 | UPM-Kymmene OYJ | 11,139 | ||||||
|
| |||||||
| 20,831 | ||||||||
|
| |||||||
France — 4.1% | ||||||||
| 183 | Air Liquide S.A. | 18,608 | ||||||
| 110 | Airbus Group SE | 6,504 | ||||||
| 102 | Arkema S.A. | 9,694 | ||||||
| 845 | AXA S.A. | 19,059 | ||||||
| 370 | BNP Paribas S.A. | 21,473 | ||||||
| 176 | Bouygues S.A. | 5,749 | ||||||
| 109 | Capgemini S.A. | 9,007 | ||||||
| 101 | Cie de Saint-Gobain | 4,485 | ||||||
| 133 | Cie Generale des Etablissements Michelin | 14,374 | ||||||
| 32 | Danone S.A. | 2,247 | ||||||
| 101 | Engie S.A. | 1,454 | ||||||
| 45 | Kering | 10,060 | ||||||
| 23 | L’Oreal S.A. | 4,056 | ||||||
| 13 | LVMH Moet Hennessy Louis Vuitton SE | 2,373 | ||||||
| 1,735 | Natixis S.A. | 8,777 | ||||||
| 69 | Nexans S.A. (a) | 3,919 | ||||||
| 112 | Publicis Groupe S.A. | 7,659 | ||||||
| 147 | Renault S.A. | 12,763 | ||||||
| 261 | Sanofi | 20,280 | ||||||
| 251 | Schneider Electric SE | 16,869 | ||||||
| 178 | Societe Generale S.A. | 6,943 | ||||||
| 102 | Sodexo S.A. | 11,860 | ||||||
| 95 | Technip S.A. | 6,275 | ||||||
| 94 | Thales S.A. | 8,870 | ||||||
| 660 | TOTAL S.A. | 31,622 | ||||||
| 6 | Unibail-Rodamco SE | 1,511 | ||||||
| 197 | Vinci S.A. | 14,237 | ||||||
| 194 | Vivendi S.A. | 3,936 | ||||||
|
| |||||||
| 284,664 | ||||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 45 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Germany — 3.4% | ||||||||
| 95 | adidas AG | 15,678 | ||||||
| 65 | Allianz SE | 10,150 | ||||||
| 191 | BASF SE | 16,877 | ||||||
| 207 | Bayer AG | 20,532 | ||||||
| 38 | Bayerische Motoren Werke AG | 3,313 | ||||||
| 143 | Brenntag AG | 7,635 | ||||||
| 36 | Continental AG | 6,929 | ||||||
| 156 | Daimler AG | 11,101 | ||||||
| 389 | Deutsche Post AG | 12,059 | ||||||
| 642 | Deutsche Telekom AG | 10,468 | ||||||
| 970 | E.ON SE | 7,110 | ||||||
| 153 | Evonik Industries AG | 4,776 | ||||||
| 165 | Fresenius SE & Co. KGaA | 12,159 | ||||||
| 77 | HeidelbergCement AG | 7,295 | ||||||
| 519 | Infineon Technologies AG | 9,329 | ||||||
| 32 | Linde AG | 5,272 | ||||||
| 78 | Merck KGaA | 8,043 | ||||||
| 26 | Muenchener Rueckversicherungs-Gesellschaft AG | 4,997 | ||||||
| 280 | SAP SE | 24,700 | ||||||
| 234 | Siemens AG | 26,610 | ||||||
| 1,335 | Telefonica Deutschland Holding AG | 5,177 | ||||||
| 97 | Uniper SE (a) | 1,291 | ||||||
|
| |||||||
| 231,501 | ||||||||
|
| |||||||
Hong Kong — 1.3% | ||||||||
| 2,496 | AIA Group Ltd. | 15,705 | ||||||
| 53 | ASM Pacific Technology Ltd. | 514 | ||||||
| 85 | Bank of East Asia Ltd. (The) | 343 | ||||||
| 925 | BOC Hong Kong Holdings Ltd. | 3,295 | ||||||
| 572 | Cathay Pacific Airways Ltd. | 753 | ||||||
| 176 | Cheung Kong Infrastructure Holdings Ltd. | 1,440 | ||||||
| 464 | Cheung Kong Property Holdings Ltd. | 3,429 | ||||||
| 650 | CK Hutchison Holdings Ltd. | 8,024 | ||||||
| 446 | CLP Holdings Ltd. | 4,534 | ||||||
| 409 | Galaxy Entertainment Group Ltd. | 1,675 | ||||||
| 153 | Hang Lung Properties Ltd. | 336 | ||||||
| 192 | Hang Seng Bank Ltd. | 3,468 | ||||||
| 350 | Henderson Land Development Co., Ltd. | 2,072 | ||||||
| 322 | HKT Trust & HKT Ltd. | 443 | ||||||
| 1,806 | Hong Kong & China Gas Co., Ltd. | 3,527 | ||||||
| 229 | Hong Kong Exchanges & Clearing Ltd. | 6,041 | ||||||
| 49 | Hongkong Land Holdings Ltd. | 327 | ||||||
| 38 | Jardine Matheson Holdings Ltd. | 2,333 | ||||||
| 342 | Kerry Properties Ltd. | 1,083 | ||||||
| 908 | Li & Fung Ltd. | 446 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Hong Kong — continued | ||||||||
| 349 | Link REIT | 2,479 | ||||||
| 240 | MTR Corp., Ltd. | 1,328 | ||||||
| 499 | New World Development Co., Ltd. | 620 | ||||||
| 311 | NWS Holdings Ltd. | 550 | ||||||
| 293 | Power Assets Holdings Ltd. | 2,745 | ||||||
| 653 | Sands China Ltd. | 2,835 | ||||||
| 1,068 | Sino Land Co., Ltd. | 1,813 | ||||||
| 330 | Sun Hung Kai Properties Ltd. | 4,914 | ||||||
| 204 | Swire Pacific Ltd., Class A | 2,115 | ||||||
| 99 | Techtronic Industries Co., Ltd. | 370 | ||||||
| 699 | WH Group Ltd. (e) | 566 | ||||||
| 412 | Wharf Holdings Ltd. (The) | 3,089 | ||||||
| 388 | Wheelock & Co., Ltd. | 2,388 | ||||||
| 223 | Yue Yuen Industrial Holdings Ltd. | 847 | ||||||
|
| |||||||
| 86,447 | ||||||||
|
| |||||||
Ireland — 0.9% | ||||||||
| 308 | Accenture plc, Class A | 35,827 | ||||||
| 179 | Allegion plc | 11,403 | ||||||
| 148 | James Hardie Industries plc, CDI | 2,203 | ||||||
| 117 | Medtronic plc (a) | 9,602 | ||||||
|
| |||||||
| 59,035 | ||||||||
|
| |||||||
Israel — 0.1% | ||||||||
| 155 | Teva Pharmaceutical Industries Ltd., ADR | 6,614 | ||||||
|
| |||||||
Italy — 0.7% | ||||||||
| 382 | Atlantia S.p.A. | 9,354 | ||||||
| 3,031 | Enel S.p.A. | 13,033 | ||||||
| 48 | Eni S.p.A. | 695 | ||||||
| 6,179 | Intesa Sanpaolo S.p.A. | 14,327 | ||||||
| 984 | Snam S.p.A. | 5,186 | ||||||
| 6,576 | Telecom Italia S.p.A. (a) | 5,717 | ||||||
|
| |||||||
| 48,312 | ||||||||
|
| |||||||
Japan — 9.3% | ||||||||
| 27 | AEON Financial Service Co., Ltd. | 474 | ||||||
| 143 | Aeon Mall Co., Ltd. | 2,125 | ||||||
| 193 | Air Water, Inc. | 3,611 | ||||||
| 123 | Ajinomoto Co., Inc. | 2,731 | ||||||
| 61 | Alfresa Holdings Corp. | 1,279 | ||||||
| 295 | Amada Holdings Co., Ltd. | 3,365 | ||||||
| 139 | ANA Holdings, Inc. | 390 | ||||||
| 19 | Asahi Group Holdings Ltd. | 664 | ||||||
| 135 | Asahi Kasei Corp. | 1,217 | ||||||
| 302 | Astellas Pharma, Inc. | 4,488 | ||||||
| 137 | Bandai Namco Holdings, Inc. | 4,092 | ||||||
| 217 | Bridgestone Corp. | 8,110 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 46 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Japan — continued | ||||||||
| 264 | Canon, Inc. | 7,570 | ||||||
| 54 | Casio Computer Co., Ltd. | 749 | ||||||
| 45 | Central Japan Railway Co. | 7,635 | ||||||
| 380 | Chiba Bank Ltd. (The) | 2,350 | ||||||
| 141 | Chubu Electric Power Co., Inc. | 2,079 | ||||||
| 54 | Chugai Pharmaceutical Co., Ltd. | 1,833 | ||||||
| 702 | Concordia Financial Group Ltd. | 3,254 | ||||||
| 67 | Dai Nippon Printing Co., Ltd. | 672 | ||||||
| 165 | Daicel Corp. | 2,175 | ||||||
| 292 | Dai-ichi Life Holdings, Inc. | 4,287 | ||||||
| 91 | Daiichi Sankyo Co., Ltd. | 2,177 | ||||||
| 77 | Daikin Industries Ltd. | 7,417 | ||||||
| 26 | Daito Trust Construction Co., Ltd. | 4,357 | ||||||
| 206 | Daiwa House Industry Co., Ltd. | 5,651 | ||||||
| 65 | DeNA Co., Ltd. | 2,088 | ||||||
| 61 | Denso Corp. | 2,633 | ||||||
| 57 | Dentsu, Inc. | 2,856 | ||||||
| 81 | DIC Corp. | 2,445 | ||||||
| 82 | East Japan Railway Co. | 7,192 | ||||||
| 52 | Eisai Co., Ltd. | 3,288 | ||||||
| 81 | Electric Power Development Co., Ltd. | 1,879 | ||||||
| 32 | FANUC Corp. | 5,895 | ||||||
| 13 | Fast Retailing Co., Ltd. | 4,312 | ||||||
| 471 | Fuji Electric Co., Ltd. | 2,352 | ||||||
| 103 | Fuji Heavy Industries Ltd. | 4,037 | ||||||
| 154 | FUJIFILM Holdings Corp. | 5,834 | ||||||
| 380 | Fujitsu Ltd. | 2,254 | ||||||
| 104 | Hankyu Hanshin Holdings, Inc. | 3,443 | ||||||
| 58 | Hisamitsu Pharmaceutical Co., Inc. | 3,073 | ||||||
| 1,299 | Hitachi Ltd. | 6,925 | ||||||
| 38 | Hokuriku Electric Power Co. | 433 | ||||||
| 406 | Honda Motor Co., Ltd. | 12,151 | ||||||
| 104 | Hoya Corp. | 4,335 | ||||||
| 235 | Hulic Co., Ltd. | 2,241 | ||||||
| 175 | Inpex Corp. | 1,631 | ||||||
| 26 | Isuzu Motors Ltd. | 320 | ||||||
| 530 | ITOCHU Corp. | 6,689 | ||||||
| 70 | Itochu Techno-Solutions Corp. | 1,721 | ||||||
| 77 | J. Front Retailing Co., Ltd. | 1,053 | ||||||
| 96 | Japan Airlines Co., Ltd. | 2,836 | ||||||
| 116 | Japan Exchange Group, Inc. | 1,719 | ||||||
| — | (h) | Japan Prime Realty Investment Corp. | 579 | |||||
| — | (h) | Japan Real Estate Investment Corp. | 1,842 | |||||
| — | (h) | Japan Retail Fund Investment Corp. | 1,072 | |||||
| 298 | Japan Tobacco, Inc. | 11,322 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Japan — continued | ||||||||
| 161 | JFE Holdings, Inc. | 2,313 | ||||||
| 135 | JSR Corp. | 2,044 | ||||||
| 54 | JTEKT Corp. | 796 | ||||||
| 1,064 | JX Holdings, Inc. | 4,202 | ||||||
| 520 | Kajima Corp. | 3,507 | ||||||
| 296 | Kansai Electric Power Co., Inc. (The) (a) | 2,829 | ||||||
| 91 | Kao Corp. | 4,662 | ||||||
| 706 | Kawasaki Heavy Industries Ltd. | 2,062 | ||||||
| 360 | KDDI Corp. | 10,951 | ||||||
| 67 | Keikyu Corp. | 676 | ||||||
| 259 | Keio Corp. | 2,144 | ||||||
| 78 | Kewpie Corp. | 2,210 | ||||||
| 13 | Keyence Corp. | 9,310 | ||||||
| 326 | Kirin Holdings Co., Ltd. | 5,606 | ||||||
| 205 | Komatsu Ltd. | 4,572 | ||||||
| 148 | Kubota Corp. | 2,386 | ||||||
| 27 | Kurita Water Industries Ltd. | 637 | ||||||
| 19 | Kyocera Corp. | 923 | ||||||
| 198 | Kyowa Hakko Kirin Co., Ltd. | 3,021 | ||||||
| 155 | Kyushu Electric Power Co., Inc. | 1,406 | ||||||
| 7 | Lawson, Inc. | 509 | ||||||
| 96 | M3, Inc. | 2,934 | ||||||
| 59 | Mabuchi Motor Co., Ltd. | 3,401 | ||||||
| 7 | Makita Corp. | 456 | ||||||
| 399 | Marubeni Corp. | 2,095 | ||||||
| 175 | Mazda Motor Corp. | 2,906 | ||||||
| 14 | MEIJI Holdings Co., Ltd. | 1,347 | ||||||
| 58 | Mitsubishi Chemical Holdings Corp. | 380 | ||||||
| 441 | Mitsubishi Corp. | 9,603 | ||||||
| 450 | Mitsubishi Electric Corp. | 6,088 | ||||||
| 127 | Mitsubishi Estate Co., Ltd. | 2,524 | ||||||
| 672 | Mitsubishi Heavy Industries Ltd. | 2,875 | ||||||
| 27 | Mitsubishi Materials Corp. | 771 | ||||||
| 186 | Mitsubishi Tanabe Pharma Corp. | 3,611 | ||||||
| 3,293 | Mitsubishi UFJ Financial Group, Inc. | 16,992 | ||||||
| 617 | Mitsubishi UFJ Lease & Finance Co., Ltd. | 2,985 | ||||||
| 182 | Mitsui & Co., Ltd. | 2,516 | ||||||
| 525 | Mitsui Chemicals, Inc. | 2,585 | ||||||
| 135 | Mitsui Fudosan Co., Ltd. | 3,075 | ||||||
| 271 | Mitsui OSK Lines Ltd. | 678 | ||||||
| 3,641 | Mizuho Financial Group, Inc. | 6,130 | ||||||
| 38 | MS&AD Insurance Group Holdings, Inc. | 1,122 | ||||||
| 26 | Murata Manufacturing Co., Ltd. | 3,561 | ||||||
| 129 | NGK Insulators Ltd. | 2,368 | ||||||
| 136 | NGK Spark Plug Co., Ltd. | 2,695 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 47 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Japan — continued | ||||||||
| 135 | NH Foods Ltd. | 3,235 | ||||||
| 70 | Nidec Corp. | 6,802 | ||||||
| 26 | Nintendo Co., Ltd. | 6,147 | ||||||
| — | (h) | Nippon Building Fund, Inc. | 1,907 | |||||
| 135 | Nippon Express Co., Ltd. | 667 | ||||||
| — | (h) | Nippon Prologis REIT, Inc. | 582 | |||||
| 130 | Nippon Steel & Sumitomo Metal Corp. | 2,576 | ||||||
| 206 | Nippon Telegraph & Telephone Corp. | 9,120 | ||||||
| 603 | Nissan Motor Co., Ltd. | 6,134 | ||||||
| 185 | Nisshin Seifun Group, Inc. | 2,730 | ||||||
| 32 | Nitori Holdings Co., Ltd. | 3,870 | ||||||
| 26 | Nitto Denko Corp. | 1,791 | ||||||
| 791 | Nomura Holdings, Inc. | 3,962 | ||||||
| 1 | Nomura Real Estate Master Fund, Inc. | 1,201 | ||||||
| 214 | NSK Ltd. | 2,380 | ||||||
| 359 | NTT DOCOMO, Inc. | 9,003 | ||||||
| 33 | Obic Co., Ltd. | 1,688 | ||||||
| 90 | Olympus Corp. | 3,215 | ||||||
| 75 | Omron Corp. | 2,882 | ||||||
| 38 | Ono Pharmaceutical Co., Ltd. | 961 | ||||||
| 84 | Oriental Land Co., Ltd. | 4,883 | ||||||
| 460 | ORIX Corp. | 7,281 | ||||||
| 27 | Otsuka Corp. | 1,280 | ||||||
| 135 | Otsuka Holdings Co., Ltd. | 5,917 | ||||||
| 668 | Panasonic Corp. | 6,893 | ||||||
| 194 | Rakuten, Inc. | 2,239 | ||||||
| 19 | Recruit Holdings Co., Ltd. | 759 | ||||||
| 616 | Resona Holdings, Inc. | 2,732 | ||||||
| 19 | Rinnai Corp. | 1,835 | ||||||
| 13 | Ryohin Keikaku Co., Ltd. | 2,755 | ||||||
| 61 | Santen Pharmaceutical Co., Ltd. | 882 | ||||||
| 108 | Sekisui Chemical Co., Ltd. | 1,695 | ||||||
| 86 | Sekisui House Ltd. | 1,414 | ||||||
| 157 | Seven & i Holdings Co., Ltd. | 6,549 | ||||||
| 68 | Shimadzu Corp. | 989 | ||||||
| 19 | Shimamura Co., Ltd. | 2,432 | ||||||
| 13 | Shimano, Inc. | 2,291 | ||||||
| 122 | Shin-Etsu Chemical Co., Ltd. | 9,258 | ||||||
| 65 | Shionogi & Co., Ltd. | 3,196 | ||||||
| 47 | Shiseido Co., Ltd. | 1,215 | ||||||
| 326 | Shizuoka Bank Ltd. (The) | 2,751 | ||||||
| 7 | SMC Corp. | 1,971 | ||||||
| 231 | SoftBank Group Corp. | 14,517 | ||||||
| 31 | Sompo Holdings, Inc. | 1,013 | ||||||
| 326 | Sony Corp. | 10,284 | ||||||
| 27 | Stanley Electric Co., Ltd. | 741 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Japan — continued | ||||||||
| 66 | Sumitomo Chemical Co., Ltd. | 312 | ||||||
| 358 | Sumitomo Electric Industries Ltd. | 5,282 | ||||||
| 322 | Sumitomo Metal Mining Co., Ltd. | 4,184 | ||||||
| 352 | Sumitomo Mitsui Financial Group, Inc. | 12,215 | ||||||
| 128 | Sumitomo Mitsui Trust Holdings, Inc. | 4,312 | ||||||
| 64 | Sumitomo Realty & Development Co., Ltd. | 1,682 | ||||||
| 32 | Sundrug Co., Ltd. | 2,549 | ||||||
| 34 | Suntory Beverage & Food Ltd. | 1,474 | ||||||
| 33 | Suruga Bank Ltd. | 801 | ||||||
| 84 | Suzuken Co., Ltd. | 2,682 | ||||||
| 175 | Suzuki Motor Corp. | 6,236 | ||||||
| 20 | Sysmex Corp. | 1,400 | ||||||
| 96 | Takeda Pharmaceutical Co., Ltd. | 4,312 | ||||||
| 39 | Terumo Corp. | 1,504 | ||||||
| 61 | Tohoku Electric Power Co., Inc. | 741 | ||||||
| 225 | Tokio Marine Holdings, Inc. | 8,871 | ||||||
| 282 | Tokyo Electric Power Co. Holdings, Inc. (a) | 1,094 | ||||||
| 58 | Tokyo Electron Ltd. | 5,214 | ||||||
| 646 | Tokyo Gas Co., Ltd. | 2,931 | ||||||
| 87 | Tokyo Tatemono Co., Ltd. | 1,110 | ||||||
| 68 | Tokyu Corp. | 509 | ||||||
| 486 | Tokyu Fudosan Holdings Corp. | 2,738 | ||||||
| 387 | Toppan Printing Co., Ltd. | 3,639 | ||||||
| 67 | Toray Industries, Inc. | 624 | ||||||
| 264 | Toshiba Corp. (a) | 956 | ||||||
| 67 | Toyota Industries Corp. | 3,083 | ||||||
| 538 | Toyota Motor Corp. | 31,213 | ||||||
| 27 | Toyota Tsusho Corp. | 635 | ||||||
| 52 | Trend Micro, Inc. | 1,814 | ||||||
| 84 | Unicharm Corp. | 2,002 | ||||||
| 1 | United Urban Investment Corp. | 910 | ||||||
| 52 | West Japan Railway Co. | 3,202 | ||||||
| 582 | Yamada Denki Co., Ltd. | 3,008 | ||||||
| 213 | Yamaha Motor Co., Ltd. | 4,725 | ||||||
| 135 | Yamato Holdings Co., Ltd. | 3,078 | ||||||
|
| |||||||
| 645,333 | ||||||||
|
| |||||||
Luxembourg — 0.1% | ||||||||
| 1,413 | ArcelorMittal (a) | 9,549 | ||||||
|
| |||||||
Netherlands — 2.1% | ||||||||
| 134 | ASML Holding N.V. | 14,156 | ||||||
| 155 | Heineken Holding N.V. | 11,907 | ||||||
| 39 | Heineken N.V. | 3,199 | ||||||
| 1,328 | ING Groep N.V., CVA | 17,435 | ||||||
| 511 | Koninklijke Ahold Delhaize N.V. | 11,650 | ||||||
| 2,205 | Koninklijke KPN N.V. | 7,189 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 48 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Netherlands — continued | ||||||||
| 317 | Koninklijke Philips N.V. | 9,546 | ||||||
| 342 | NN Group N.V. | 10,316 | ||||||
| 89 | NXP Semiconductors N.V. (a) | 8,862 | ||||||
| 1,290 | Royal Dutch Shell plc, Class A | 32,134 | ||||||
| 763 | Royal Dutch Shell plc, Class B | 19,689 | ||||||
|
| |||||||
| 146,083 | ||||||||
|
| |||||||
New Zealand — 0.1% | ||||||||
| 291 | Auckland International Airport Ltd. | 1,371 | ||||||
| 192 | Contact Energy Ltd. | 652 | ||||||
| 262 | Fletcher Building Ltd. | 1,943 | ||||||
| 102 | Ryman Healthcare Ltd. | 649 | ||||||
| 579 | Spark New Zealand Ltd. | 1,514 | ||||||
|
| |||||||
| 6,129 | ||||||||
|
| |||||||
Norway — 0.1% | ||||||||
| 942 | Norsk Hydro ASA | 4,209 | ||||||
|
| |||||||
Portugal — 0.1% | ||||||||
| 437 | Galp Energia SGPS S.A. | 5,931 | ||||||
|
| |||||||
Singapore — 0.9% | ||||||||
| 169 | Ascendas Real Estate Investment Trust | 288 | ||||||
| 207 | Broadcom Ltd. | 35,267 | ||||||
| 335 | CapitaLand Ltd. | 743 | ||||||
| 379 | CapitaLand Mall Trust | 564 | ||||||
| 390 | ComfortDelGro Corp., Ltd. | 711 | ||||||
| 472 | DBS Group Holdings Ltd. | 5,092 | ||||||
| 771 | Genting Singapore plc | 413 | ||||||
| 866 | Global Logistic Properties Ltd. | 1,102 | ||||||
| 2,431 | Hutchison Port Holdings Trust, Class U | 1,080 | ||||||
| 17 | Jardine Cycle & Carriage Ltd. | 506 | ||||||
| 449 | Keppel Corp., Ltd. | 1,699 | ||||||
| 796 | Oversea-Chinese Banking Corp., Ltd. | 4,850 | ||||||
| 79 | Singapore Exchange Ltd. | 404 | ||||||
| 153 | Singapore Press Holdings Ltd. | 410 | ||||||
| 1,756 | Singapore Telecommunications Ltd. | 4,895 | ||||||
| 304 | United Overseas Bank Ltd. | 4,097 | ||||||
| 618 | Wilmar International Ltd. | 1,467 | ||||||
|
| |||||||
| 63,588 | ||||||||
|
| |||||||
Spain — 1.0% | ||||||||
| 762 | Banco Bilbao Vizcaya Argentaria S.A. | 5,485 | ||||||
| 2,488 | Banco Santander S.A. | 12,191 | ||||||
| 10,081 | Bankia S.A. | 8,857 | ||||||
| 1,157 | Distribuidora Internacional de Alimentacion S.A. | 6,178 | ||||||
| 1,691 | Iberdrola S.A. | 11,508 | ||||||
| 386 | Industria de Diseno Textil S.A. | 13,452 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Spain — continued | ||||||||
| 981 | Telefonica S.A. | 9,969 | ||||||
|
| |||||||
| 67,640 | ||||||||
|
| |||||||
Sweden — 0.7% | ||||||||
| 63 | Assa Abloy AB, Class B | 1,151 | ||||||
| 308 | Electrolux AB, Series B | 7,297 | ||||||
| 1,283 | Nordea Bank AB | 13,483 | ||||||
| 877 | Sandvik AB | 9,965 | ||||||
| 978 | Skandinaviska Enskilda Banken AB, Class A | 9,862 | ||||||
| 602 | Telefonaktiebolaget LM Ericsson, Class B | 2,922 | ||||||
| 1,625 | Telia Co. AB | 6,492 | ||||||
|
| |||||||
| 51,172 | ||||||||
|
| |||||||
Switzerland — 3.7% | ||||||||
| 186 | ABB Ltd. (a) | 3,836 | ||||||
| 58 | Actelion Ltd. (a) | 8,434 | ||||||
| 203 | Chubb Ltd. | 25,795 | ||||||
| 91 | Cie Financiere Richemont S.A. | 5,851 | ||||||
| 266 | Credit Suisse Group AG (a) | 3,712 | ||||||
| 285 | LafargeHolcim Ltd. (a) | 15,223 | ||||||
| 765 | Nestle S.A. | 55,502 | ||||||
| 403 | Novartis AG | 28,574 | ||||||
| 174 | Roche Holding AG | 39,972 | ||||||
| 125 | Swiss Re AG | 11,605 | ||||||
| 10 | Syngenta AG (a) | 3,954 | ||||||
| 342 | TE Connectivity Ltd. | 21,523 | ||||||
| 485 | UBS Group AG | 6,853 | ||||||
| 234 | Wolseley plc | 12,114 | ||||||
| 47 | Zurich Insurance Group AG (a) | 12,357 | ||||||
|
| |||||||
| 255,305 | ||||||||
|
| |||||||
United Kingdom — 5.4% | ||||||||
| 1,196 | 3i Group plc | 9,808 | ||||||
| 82 | Anglo American plc (a) | 1,141 | ||||||
| 230 | Associated British Foods plc | 6,924 | ||||||
| 134 | AstraZeneca plc | 7,481 | ||||||
| 508 | BAE Systems plc | 3,368 | ||||||
| 1,804 | Barclays plc | 4,180 | ||||||
| 811 | Barratt Developments plc | 4,499 | ||||||
| 3,201 | BP plc | 18,924 | ||||||
| 560 | British American Tobacco plc | 32,114 | ||||||
| 615 | BT Group plc | 2,822 | ||||||
| 516 | Capita plc | 3,691 | ||||||
| 3,891 | Centrica plc | 10,192 | ||||||
| 325 | Compass Group plc | 5,872 | ||||||
| 179 | Delphi Automotive plc | 11,669 | ||||||
| 281 | Diageo plc | 7,478 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 49 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
United Kingdom — continued | ||||||||
| 1,175 | Dixons Carphone plc | 4,516 | ||||||
| 1,486 | GlaxoSmithKline plc | 29,357 | ||||||
| 2,942 | HSBC Holdings plc | 22,154 | ||||||
| 157 | Imperial Brands plc | 7,578 | ||||||
| 228 | InterContinental Hotels Group plc | 8,846 | ||||||
| 2,866 | ITV plc | 5,974 | ||||||
| 1,249 | Kingfisher plc | 5,516 | ||||||
| 32 | Liberty Global plc, Class A (a) | 1,030 | ||||||
| 120 | Liberty Global plc, Series C (a) | 3,810 | ||||||
| 2,000 | Lloyds Banking Group plc | 1,396 | ||||||
| 182 | London Stock Exchange Group plc | 6,257 | ||||||
| 319 | National Grid plc | 4,146 | ||||||
| 38 | Pentair plc | 2,121 | ||||||
| 243 | Persimmon plc | 5,028 | ||||||
| 1,051 | Prudential plc | 17,145 | ||||||
| 49 | Randgold Resources Ltd. | 4,348 | ||||||
| 188 | Reckitt Benckiser Group plc | 16,803 | ||||||
| 98 | Rio Tinto Ltd. | 4,075 | ||||||
| 357 | Rio Tinto plc | 12,411 | ||||||
| 1,401 | RSA Insurance Group plc | 9,457 | ||||||
| 1,430 | Standard Chartered plc (a) | 12,432 | ||||||
| 499 | Unilever N.V., CVA | 20,866 | ||||||
| 8,225 | Vodafone Group plc | 22,588 | ||||||
| 166 | Whitbread plc | 7,323 | ||||||
| 449 | WPP plc | 9,758 | ||||||
|
| |||||||
| 375,098 | ||||||||
|
| |||||||
United States — 56.8% | ||||||||
| 12 | 3M Co. | 2,013 | ||||||
| 553 | Abbott Laboratories | 21,707 | ||||||
| 89 | AbbVie, Inc. | 4,951 | ||||||
| 47 | Activision Blizzard, Inc. | 2,008 | ||||||
| 298 | Adobe Systems, Inc. (a) | 32,007 | ||||||
| 193 | Aetna, Inc. | 20,753 | ||||||
| 161 | Agilent Technologies, Inc. | 7,029 | ||||||
| 116 | Alexion Pharmaceuticals, Inc. (a) | 15,111 | ||||||
| 135 | Allergan plc (a) | 28,209 | ||||||
| 20 | Alliance Data Systems Corp. (a) | 4,118 | ||||||
| 70 | Alphabet, Inc., Class A (a) | 56,303 | ||||||
| 86 | Alphabet, Inc., Class C (a) | 67,357 | ||||||
| 249 | Altria Group, Inc. | 16,433 | ||||||
| 98 | Amazon.com, Inc. (a) | 77,217 | ||||||
| 102 | American Electric Power Co., Inc. | 6,615 | ||||||
| 104 | American Express Co. | 6,906 | ||||||
| 379 | American International Group, Inc. | 23,356 | ||||||
| 38 | American Water Works Co., Inc. | 2,810 | ||||||
| 51 | Amgen, Inc. | 7,226 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
United States — continued | ||||||||
| 71 | Anadarko Petroleum Corp. | 4,249 | ||||||
| 389 | Analog Devices, Inc. | 24,958 | ||||||
| 40 | Anthem, Inc. | 4,844 | ||||||
| 1,227 | Apple, Inc. | 139,292 | ||||||
| 123 | Archer-Daniels-Midland Co. | 5,378 | ||||||
| 20 | Arrow Electronics, Inc. (a) | 1,221 | ||||||
| 264 | Arthur J. Gallagher & Co. | 12,755 | ||||||
| 1,298 | AT&T, Inc. | 47,754 | ||||||
| 99 | Automatic Data Processing, Inc. | 8,660 | ||||||
| 3 | AutoZone, Inc. (a) | 2,108 | ||||||
| 82 | AvalonBay Communities, Inc. | 14,050 | ||||||
| 3,138 | Bank of America Corp. | 51,774 | ||||||
| 334 | Bank of New York Mellon Corp. (The) | 14,466 | ||||||
| 45 | Becton Dickinson and Co. | 7,474 | ||||||
| 252 | Berkshire Hathaway, Inc., Class B (a) | 36,420 | ||||||
| 222 | Best Buy Co., Inc. | 8,631 | ||||||
| 86 | Biogen, Inc. (a) | 23,981 | ||||||
| 33 | BioMarin Pharmaceutical, Inc. (a) | 2,655 | ||||||
| 57 | BlackRock, Inc. | 19,396 | ||||||
| 33 | Boston Properties, Inc. | 3,940 | ||||||
| 902 | Boston Scientific Corp. (a) | 19,847 | ||||||
| 592 | Bristol-Myers Squibb Co. | 30,162 | ||||||
| 61 | Brixmor Property Group, Inc. | 1,545 | ||||||
| 89 | Cabot Oil & Gas Corp. | 1,869 | ||||||
| 46 | Campbell Soup Co. | 2,485 | ||||||
| 252 | Capital One Financial Corp. | 18,681 | ||||||
| 88 | Carnival Corp. | 4,323 | ||||||
| 53 | Caterpillar, Inc. | 4,423 | ||||||
| 195 | CBS Corp. (Non-Voting), Class B | 11,058 | ||||||
| 286 | Celgene Corp. (a) | 29,221 | ||||||
| 33 | Centene Corp. (a) | 2,087 | ||||||
| 658 | Charles Schwab Corp. (The) | 20,848 | ||||||
| 96 | Charter Communications, Inc., Class A (a) | 23,903 | ||||||
| 316 | Chevron Corp. | 33,109 | ||||||
| 52 | Cigna Corp. | 6,190 | ||||||
| 714 | Cisco Systems, Inc. | 21,919 | ||||||
| 969 | Citigroup, Inc. | 47,625 | ||||||
| 89 | Citizens Financial Group, Inc. | 2,339 | ||||||
| 355 | CMS Energy Corp. | 14,950 | ||||||
| 749 | Coca-Cola Co. (The) | 31,758 | ||||||
| 260 | Cognizant Technology Solutions Corp., Class A (a) | 13,376 | ||||||
| 57 | Colgate-Palmolive Co. | 4,096 | ||||||
| 656 | Comcast Corp., Class A | 40,531 | ||||||
| 108 | Concho Resources, Inc. (a) | 13,690 | ||||||
| 172 | ConocoPhillips | 7,493 | ||||||
| 143 | Constellation Brands, Inc., Class A | 23,843 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 50 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
United States — continued | ||||||||
| 181 | Corning, Inc. | 4,110 | ||||||
| 171 | Costco Wholesale Corp. | 25,213 | ||||||
| 262 | Crown Holdings, Inc. (a) | 14,199 | ||||||
| 72 | Cummins, Inc. | 9,188 | ||||||
| 81 | CVS Health Corp. | 6,823 | ||||||
| 354 | D.R. Horton, Inc. | 10,215 | ||||||
| 102 | Danaher Corp. | 8,019 | ||||||
| 53 | Deere & Co. | 4,722 | ||||||
| 3 | Dell Technologies, Inc., — VMware, Inc., Class V (a) | 167 | ||||||
| 241 | Delta Air Lines, Inc. | 10,086 | ||||||
| 96 | Diamondback Energy, Inc. (a) | 8,766 | ||||||
| 264 | Discover Financial Services | 14,846 | ||||||
| 197 | DISH Network Corp., Class A (a) | 11,517 | ||||||
| 120 | Dollar General Corp. | 8,278 | ||||||
| 421 | Dow Chemical Co. (The) | 22,629 | ||||||
| 42 | Dr. Pepper Snapple Group, Inc. | 3,649 | ||||||
| 40 | DTE Energy Co. | 3,847 | ||||||
| 317 | E.I. du Pont de Nemours & Co. | 21,826 | ||||||
| 210 | Eastman Chemical Co. | 15,119 | ||||||
| 329 | Eaton Corp. plc | 20,968 | ||||||
| 240 | Edison International | 17,634 | ||||||
| 20 | Electronic Arts, Inc. (a) | 1,570 | ||||||
| 347 | Eli Lilly & Co. | 25,640 | ||||||
| 283 | EOG Resources, Inc. | 25,568 | ||||||
| 173 | EQT Corp. | 11,393 | ||||||
| 58 | Equifax, Inc. | 7,156 | ||||||
| 26 | Equinix, Inc. REIT | 9,460 | ||||||
| 254 | Exelon Corp. | 8,661 | ||||||
| 43 | Extra Space Storage, Inc. | 3,170 | ||||||
| 875 | Exxon Mobil Corp. | 72,943 | ||||||
| 14 | F5 Networks, Inc. (a) | 1,874 | ||||||
| 616 | Facebook, Inc., Class A (a) | 80,674 | ||||||
| 55 | FedEx Corp. | 9,525 | ||||||
| 313 | Fidelity National Information Services, Inc. | 23,145 | ||||||
| 150 | Fluor Corp. | 7,805 | ||||||
| 31 | Foot Locker, Inc. | 2,060 | ||||||
| 65 | Fortive Corp. | 3,336 | ||||||
| 94 | General Dynamics Corp. | 14,231 | ||||||
| 1,987 | General Electric Co. | 57,820 | ||||||
| 436 | General Motors Co. | 13,783 | ||||||
| 449 | Gilead Sciences, Inc. | 33,078 | ||||||
| 56 | Global Payments, Inc. | 4,068 | ||||||
| 84 | Goldman Sachs Group, Inc. (The) | 15,057 | ||||||
| 184 | Halliburton Co. | 8,460 | ||||||
| 93 | Harman International Industries, Inc. | 7,449 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
United States — continued | ||||||||
| 334 | Hartford Financial Services Group, Inc. (The) | 14,738 | ||||||
| 133 | HCP, Inc. | 4,556 | ||||||
| 560 | Hewlett Packard Enterprise Co. | 12,576 | ||||||
| 113 | Hilton Worldwide Holdings, Inc. | 2,556 | ||||||
| 40 | Hologic, Inc. (a) | 1,444 | ||||||
| 379 | Home Depot, Inc. (The) | 46,237 | ||||||
| 327 | Honeywell International, Inc. | 35,848 | ||||||
| 922 | HP, Inc. | 13,357 | ||||||
| 86 | Humana, Inc. | 14,681 | ||||||
| 66 | Illumina, Inc. (a) | 8,970 | ||||||
| 31 | Incyte Corp. (a) | 2,684 | ||||||
| 163 | Ingersoll-Rand plc | 10,946 | ||||||
| 412 | Intel Corp. | 14,369 | ||||||
| 61 | Intercontinental Exchange, Inc. | 16,589 | ||||||
| 139 | International Business Machines Corp. | 21,397 | ||||||
| 86 | Jack Henry & Associates, Inc. | 7,000 | ||||||
| 452 | Johnson & Johnson | 52,424 | ||||||
| 1,050 | KeyCorp | 14,832 | ||||||
| 206 | Kimberly-Clark Corp. | 23,613 | ||||||
| 421 | Kimco Realty Corp. | 11,196 | ||||||
| 254 | Kinder Morgan, Inc. | 5,193 | ||||||
| 131 | Kraft Heinz Co. (The) | 11,660 | ||||||
| 389 | Kroger Co. (The) | 12,037 | ||||||
| 59 | L-3 Communications Holdings, Inc. | 8,105 | ||||||
| 29 | Laboratory Corp. of America Holdings (a) | 3,686 | ||||||
| 139 | Lam Research Corp. | 13,485 | ||||||
| 83 | LaSalle Hotel Properties | 1,983 | ||||||
| 40 | Lennox International, Inc. | 5,906 | ||||||
| 48 | Lincoln National Corp. | 2,379 | ||||||
| 444 | Lowe’s Cos., Inc. | 29,581 | ||||||
| 25 | Macerich Co. (The) | 1,762 | ||||||
| 16 | ManpowerGroup, Inc. | 1,213 | ||||||
| 184 | Marathon Petroleum Corp. | 8,000 | ||||||
| 42 | Martin Marietta Materials, Inc. | 7,740 | ||||||
| 366 | Masco Corp. | 11,307 | ||||||
| 93 | Mastercard, Inc., Class A | 10,001 | ||||||
| 41 | McDonald’s Corp. | 4,578 | ||||||
| 47 | McKesson Corp. | 6,016 | ||||||
| 590 | Merck & Co., Inc. | 34,660 | ||||||
| 477 | MetLife, Inc. | 22,385 | ||||||
| 1,874 | Microsoft Corp. | 112,287 | ||||||
| 13 | Mohawk Industries, Inc. (a) | 2,318 | ||||||
| 217 | Molson Coors Brewing Co., Class B | 22,566 | ||||||
| 687 | Mondelez International, Inc., Class A | 30,885 | ||||||
| 95 | Monsanto Co. | 9,529 | ||||||
| 819 | Morgan Stanley | 27,503 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 51 | ||||||
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
United States — continued | ||||||||
| 393 | Mosaic Co. (The) | 9,247 | ||||||
| 46 | Mylan N.V. (a) | 1,682 | ||||||
| 97 | Newell Brands, Inc. | 4,652 | ||||||
| 110 | Newmont Mining Corp. | 4,067 | ||||||
| 234 | NextEra Energy, Inc. | 29,903 | ||||||
| 211 | NIKE, Inc., Class B | 10,563 | ||||||
| 64 | Northrop Grumman Corp. | 14,569 | ||||||
| 263 | Occidental Petroleum Corp. | 19,202 | ||||||
| 275 | Oracle Corp. | 10,572 | ||||||
| 66 | O’Reilly Automotive, Inc. (a) | 17,479 | ||||||
| 259 | PACCAR, Inc. | 14,212 | ||||||
| 222 | PayPal Holdings, Inc. (a) | 9,256 | ||||||
| 492 | PepsiCo, Inc. | 52,764 | ||||||
| 1,691 | Pfizer, Inc. | 53,621 | ||||||
| 312 | PG&E Corp. | 19,375 | ||||||
| 251 | Philip Morris International, Inc. | 24,177 | ||||||
| 135 | Pioneer Natural Resources Co. | 24,078 | ||||||
| 3 | Priceline Group, Inc. (The) (a) | 3,907 | ||||||
| 484 | Procter & Gamble Co. (The) | 42,048 | ||||||
| 146 | Prologis, Inc. | 7,632 | ||||||
| 91 | Prudential Financial, Inc. | 7,745 | ||||||
| 13 | Public Service Enterprise Group, Inc. | 563 | ||||||
| 367 | PulteGroup, Inc. | 6,832 | ||||||
| 83 | QUALCOMM, Inc. | 5,689 | ||||||
| 43 | Quest Diagnostics, Inc. | 3,485 | ||||||
| 20 | Regency Centers Corp. | 1,436 | ||||||
| 3 | Regeneron Pharmaceuticals, Inc. (a) | 942 | ||||||
| 1,111 | Regions Financial Corp. | 11,900 | ||||||
| 449 | Reynolds American, Inc. | 24,726 | ||||||
| 27 | Robert Half International, Inc. | 1,019 | ||||||
| 146 | Ross Stores, Inc. | 9,140 | ||||||
| 198 | Royal Caribbean Cruises Ltd. | 15,215 | ||||||
| 17 | S&P Global, Inc. | 2,123 | ||||||
| 373 | Schlumberger Ltd. | 29,144 | ||||||
| 166 | Sealed Air Corp. | 7,587 | ||||||
| 155 | Sempra Energy | 16,574 | ||||||
| 33 | Sensata Technologies Holding N.V. (a) | 1,187 | ||||||
| 5 | Sherwin-Williams Co. (The) | 1,300 | ||||||
| 266 | Shire plc | 15,031 | ||||||
| 115 | Simon Property Group, Inc. | 21,328 | ||||||
| 1,214 | Sirius XM Holdings, Inc. (a) | 5,063 | ||||||
| 76 | SL Green Realty Corp. | 7,429 | ||||||
| 76 | Snap-on, Inc. | 11,775 | ||||||
| 633 | Spirit Realty Capital, Inc. | 7,537 | ||||||
| 189 | Stanley Black & Decker, Inc. | 21,532 | ||||||
| 532 | Starbucks Corp. | 28,215 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
United States — continued | ||||||||
| 87 | State Street Corp. | 6,121 | ||||||
| 274 | STORE Capital Corp. | 7,491 | ||||||
| 60 | Stryker Corp. | 6,967 | ||||||
| 101 | SunTrust Banks, Inc. | 4,589 | ||||||
| 45 | SVB Financial Group (a) | 5,534 | ||||||
| 32 | Synopsys, Inc. (a) | 1,895 | ||||||
| 208 | TD Ameritrade Holding Corp. | 7,119 | ||||||
| 499 | Texas Instruments, Inc. | 35,368 | ||||||
| 66 | Textron, Inc. | 2,655 | ||||||
| 124 | Thermo Fisher Scientific, Inc. | 18,232 | ||||||
| 85 | Thomson Reuters Corp. | 3,345 | ||||||
| 303 | Time Warner, Inc. | 26,981 | ||||||
| 350 | TJX Cos., Inc. (The) | 25,798 | ||||||
| 256 | T-Mobile U.S., Inc. (a) | 12,709 | ||||||
| 26 | TripAdvisor, Inc. (a) | 1,700 | ||||||
| 886 | Twenty-First Century Fox, Inc., Class A | 23,270 | ||||||
| 90 | Twenty-First Century Fox, Inc., Class B | 2,386 | ||||||
| 94 | U.S. Bancorp | 4,209 | ||||||
| 381 | Union Pacific Corp. | 33,612 | ||||||
| 259 | United Continental Holdings, Inc. (a) | 14,551 | ||||||
| 37 | United Parcel Service, Inc., Class B | 4,035 | ||||||
| 227 | United Technologies Corp. | 23,205 | ||||||
| 348 | UnitedHealth Group, Inc. | 49,195 | ||||||
| 199 | Valero Energy Corp. | 11,759 | ||||||
| 159 | Vantiv, Inc., Class A (a) | 9,283 | ||||||
| — | (h) | Veritiv Corp. (a) | — | (h) | ||||
| 601 | Verizon Communications, Inc. | 28,886 | ||||||
| 144 | Vertex Pharmaceuticals, Inc. (a) | 10,953 | ||||||
| 601 | Visa, Inc., Class A | 49,618 | ||||||
| 35 | Voya Financial, Inc. | 1,059 | ||||||
| 252 | Walgreens Boots Alliance, Inc. | 20,815 | ||||||
| 67 | Wal-Mart Stores, Inc. | 4,671 | ||||||
| 239 | Walt Disney Co. (The) | 22,135 | ||||||
| 70 | WEC Energy Group, Inc. | 4,206 | ||||||
| 1,397 | Wells Fargo & Co. | 64,285 | ||||||
| 76 | Western Union Co. (The) | 1,519 | ||||||
| 158 | WestRock Co. | 7,286 | ||||||
| 60 | Workday, Inc., Class A (a) | 5,161 | ||||||
| 9 | WW Grainger, Inc. | 1,852 | ||||||
| 308 | Xcel Energy, Inc. | 12,791 | ||||||
| 176 | Yum! Brands, Inc. | 15,199 | ||||||
| 21 | Zoetis, Inc. | 996 | ||||||
|
| |||||||
| 3,924,995 | ||||||||
|
| |||||||
Total Common Stocks | 6,838,628 | |||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 52 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Preferred Stocks — 0.4% |
| ||||||
Germany — 0.4% | ||||||||
| 136 | Henkel AG & Co. KGaA | 17,469 | ||||||
| 77 | Volkswagen AG | 10,600 | ||||||
|
| |||||||
Total Preferred Stocks | 28,069 | |||||||
|
| |||||||
| NUMBER OF RIGHTS | ||||||||
| Rights — 0.0% (g) |
| ||||||
Spain — 0.0% (g) | ||||||||
| 2,488 | Banco Santander S.A., expiring 11/02/16 (a) | 139 | ||||||
|
| |||||||
| SHARES | ||||||||
| Short-Term Investment — 0.3% |
| ||||||
Investment Company — 0.3% | ||||||||
| 17,326 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 17,326 | ||||||
|
| |||||||
Total Investments — 99.7% | 6,884,162 | |||||||
Other Assets in Excess of | 23,144 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 6,907,306 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 8.6 | % | ||
Pharmaceuticals | 6.4 | |||
Oil, Gas & Consumable Fuels | 6.1 | |||
Insurance | 4.0 | |||
IT Services | 3.2 | |||
Internet Software & Services | 3.0 | |||
Software | 2.9 | |||
Media | 2.9 | |||
Beverages | 2.8 | |||
Capital Markets | 2.7 | |||
Chemicals | 2.6 | |||
Technology Hardware, Storage & Peripherals | 2.6 | |||
Specialty Retail | 2.6 | |||
Semiconductors & Semiconductor Equipment | 2.4 | |||
Biotechnology | 2.3 | |||
Diversified Telecommunication Services | 2.3 | |||
Industrial Conglomerates | 2.1 | |||
Electric Utilities | 2.0 | |||
Equity Real Estate Investment Trusts (REITs) | 2.0 | |||
Food Products | 1.9 | |||
Health Care Providers & Services | 1.9 | |||
Machinery | 1.9 | |||
Automobiles | 1.7 | |||
Hotels, Restaurants & Leisure | 1.7 | |||
Food & Staples Retailing | 1.7 | |||
Tobacco | 1.7 | |||
Household Products | 1.5 | |||
Metals & Mining | 1.4 | |||
Road & Rail | 1.3 | |||
Health Care Equipment & Supplies | 1.3 | |||
Internet & Direct Marketing Retail | 1.2 | |||
Aerospace & Defense | 1.2 | |||
Wireless Telecommunication Services | 1.1 | |||
Household Durables | 1.0 | |||
Electrical Equipment | 1.0 | |||
Others (each less than 1.0%) | 12.7 | |||
Short-Term Investment | 0.3 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 53 | ||||||
Table of Contents
JPMorgan Global Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 98.6% |
| ||||||
Canada — 1.4% |
| |||||||
| — | (h) | Canadian Pacific Railway Ltd. | 23 | |||||
|
| |||||||
China — 8.3% |
| |||||||
| — | (h) | Baidu, Inc., ADR (a) | 27 | |||||
| — | (h) | CNOOC Ltd., ADR | 27 | |||||
| 1 | JD.com, Inc., ADR (a) | 36 | ||||||
| 6 | Ping An Insurance Group Co. of China Ltd., Class H | 29 | ||||||
| 1 | Vipshop Holdings Ltd., ADR (a) | 20 | ||||||
|
| |||||||
| 139 | ||||||||
|
| |||||||
France — 6.4% |
| |||||||
| — | (h) | Airbus Group SE | 25 | |||||
| 2 | AXA S.A. | 35 | ||||||
| 1 | Sanofi | 48 | ||||||
|
| |||||||
| 108 | ||||||||
|
| |||||||
Germany — 2.1% |
| |||||||
| 9 | Telefonica Deutschland Holding AG | 34 | ||||||
|
| |||||||
Hong Kong — 1.1% |
| |||||||
| 16 | China Unicom Hong Kong Ltd. | 19 | ||||||
|
| |||||||
India — 1.0% |
| |||||||
| 2 | ICICI Bank Ltd., ADR | 17 | ||||||
|
| |||||||
Israel — 4.3% |
| |||||||
| 2 | Teva Pharmaceutical Industries Ltd., ADR | 72 | ||||||
|
| |||||||
Italy — 1.0% |
| |||||||
| 1 | Eni S.p.A. | 17 | ||||||
|
| |||||||
Japan — 5.3% |
| |||||||
| 2 | Inpex Corp. | 17 | ||||||
| 1 | Sumitomo Electric Industries Ltd. | 16 | ||||||
| 1 | Sumitomo Mitsui Financial Group, Inc. | 31 | ||||||
| 1 | Suzuki Motor Corp. | 25 | ||||||
|
| |||||||
| 89 | ||||||||
|
| |||||||
Luxembourg — 1.1% |
| |||||||
| 3 | ArcelorMittal (a) | 18 | ||||||
|
| |||||||
Netherlands — 3.4% |
| |||||||
| 1 | ASR Nederland N.V. (a) | 23 | ||||||
| — | (h) | NXP Semiconductors N.V. (a) | 33 | |||||
|
| |||||||
| 56 | ||||||||
|
| |||||||
Russia — 1.2% |
| |||||||
| 1 | Magnit PJSC, GDR | 21 | ||||||
|
| |||||||
Singapore — 2.0% |
| |||||||
| — | (h) | Broadcom Ltd. | 33 | |||||
|
| |||||||
Switzerland — 6.2% |
| |||||||
| — | (h) | Chubb Ltd. | 35 | |||||
| — | (h) | LafargeHolcim Ltd. (a) | 19 | |||||
| — | (h) | Novartis AG | 33 | |||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Switzerland — continued |
| |||||||
| 1 | UBS Group AG | 16 | ||||||
|
| |||||||
| 103 | ||||||||
|
| |||||||
United Kingdom — 7.7% |
| |||||||
| 6 | BT Group plc | 28 | ||||||
| 1 | Burberry Group plc | 19 | ||||||
| 10 | ITV plc | 21 | ||||||
| 1 | Liberty Global plc, Class A (a) | 30 | ||||||
| 11 | Vodafone Group plc | 30 | ||||||
|
| |||||||
| 128 | ||||||||
|
| |||||||
United States — 46.1% |
| |||||||
| — | (h) | Aetna, Inc. | 14 | |||||
| — | (h) | Alexion Pharmaceuticals, Inc. (a) | 33 | |||||
| — | (h) | Allergan plc (a) | 22 | |||||
| — | (h) | Alphabet, Inc., Class C (a) | 78 | |||||
| — | (h) | Amazon.com, Inc. (a) | 44 | |||||
| 1 | CBRE Group, Inc., Class A (a) | 28 | ||||||
| 1 | Citigroup, Inc. | 53 | ||||||
| — | (h) | DISH Network Corp., Class A (a) | 27 | |||||
| — | (h) | Eastman Chemical Co. | 24 | |||||
| — | (h) | Gilead Sciences, Inc. | 21 | |||||
| — | (h) | Harman International Industries, Inc. | 28 | |||||
| — | (h) | Honeywell International, Inc. | 23 | |||||
| — | (h) | Humana, Inc. | 22 | |||||
| 1 | Kroger Co. (The) | 31 | ||||||
| — | (h) | Macy’s, Inc. | 16 | |||||
| 1 | MetLife, Inc. | 24 | ||||||
| 1 | Morgan Stanley | 31 | ||||||
| 1 | Mosaic Co. (The) | 13 | ||||||
| 1 | Navient Corp. | 13 | ||||||
| — | (h) | Pioneer Natural Resources Co. | 31 | |||||
| — | (h) | Shire plc, ADR | 31 | |||||
| — | (h) | SVB Financial Group (a) | 14 | |||||
| 4 | Time, Inc. | 57 | ||||||
| 2 | Twenty-First Century Fox, Inc., Class A | 53 | ||||||
| — | (h) | United Continental Holdings, Inc. (a) | 24 | |||||
| — | (h) | Vertex Pharmaceuticals, Inc. (a) | 16 | |||||
|
| |||||||
| 771 | ||||||||
|
| |||||||
Total Common Stocks | 1,648 | |||||||
|
| |||||||
Total Investments — 98.6% | 1,648 | |||||||
Other Assets in Excess of | 24 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,672 | ||||||
|
| |||||||
| Percentages indicated are based on net assets. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 54 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Media | 11.4 | % | ||
Pharmaceuticals | 10.6 | |||
Insurance | 8.8 | |||
Banks | 7.0 | |||
Internet Software & Services | 6.4 | |||
Biotechnology | 6.1 | |||
Internet & Direct Marketing Retail | 6.1 | |||
Oil, Gas & Consumable Fuels | 5.6 | |||
Diversified Telecommunication Services | 5.0 | |||
Semiconductors & Semiconductor Equipment | 4.0 | |||
Food & Staples Retailing | 3.2 | |||
Capital Markets | 2.9 | |||
Chemicals | 2.3 | |||
Health Care Providers & Services | 2.2 | |||
| INDUSTRY | PERCENTAGE | |||
Wireless Telecommunication Services | 1.8 | % | ||
Household Durables | 1.7 | |||
Real Estate Management & Development | 1.7 | |||
Aerospace & Defense | 1.5 | |||
Automobiles | 1.5 | |||
Airlines | 1.5 | |||
Road & Rail | 1.4 | |||
Industrial Conglomerates | 1.4 | |||
Construction Materials | 1.2 | |||
Textiles, Apparel & Luxury Goods | 1.1 | |||
Metals & Mining | 1.1 | |||
Auto Components | 1.0 | |||
Multiline Retail | 1.0 | |||
Others (each less than 1.0%) | 0.5 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 55 | ||||||
Table of Contents
JPMorgan International Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 97.3% |
| ||||||
Australia — 1.3% | ||||||||
| 1,626 | BHP Billiton Ltd. | 28,405 | ||||||
| 768 | BHP Billiton plc | 11,556 | ||||||
| 1,794 | South32 Ltd. | 3,501 | ||||||
|
| |||||||
| 43,462 | ||||||||
|
| |||||||
Belgium — 1.8% | ||||||||
| 530 | Anheuser-Busch InBev S.A./N.V. | 60,798 | ||||||
|
| |||||||
China — 3.7% | ||||||||
| 193 | Baidu, Inc., ADR (a) | 34,205 | ||||||
| 31,099 | CNOOC Ltd. | 39,131 | ||||||
| 6,079 | Ping An Insurance Group Co. of China Ltd., Class H | 31,994 | ||||||
| 13,730 | Wynn Macau Ltd. | 21,035 | ||||||
|
| |||||||
| 126,365 | ||||||||
|
| |||||||
Denmark — 1.1% | ||||||||
| 1,014 | Novo Nordisk A/S, Class B | 36,116 | ||||||
|
| |||||||
France — 11.6% | ||||||||
| 879 | Accor S.A. | 33,342 | ||||||
| 1,889 | AXA S.A. | 42,630 | ||||||
| 361 | BNP Paribas S.A. | 20,938 | ||||||
| 265 | Essilor International S.A. | 29,772 | ||||||
| 305 | Imerys S.A. | 21,205 | ||||||
| 132 | Kering | 29,206 | ||||||
| 228 | LVMH Moet Hennessy Louis Vuitton SE | 41,593 | ||||||
| 282 | Pernod Ricard S.A. | 33,564 | ||||||
| 346 | Safran S.A. | 23,775 | ||||||
| 616 | Sanofi | 47,910 | ||||||
| 757 | Schneider Electric SE | 50,922 | ||||||
| 358 | Technip S.A. | 23,762 | ||||||
|
| |||||||
| 398,619 | ||||||||
|
| |||||||
Germany — 6.3% | ||||||||
| 346 | Allianz SE | 54,033 | ||||||
| 405 | Bayer AG | 40,254 | ||||||
| 227 | Continental AG | 43,560 | ||||||
| 165 | Fresenius Medical Care AG & Co. KGaA | 13,435 | ||||||
| 734 | SAP SE | 64,632 | ||||||
|
| |||||||
| 215,914 | ||||||||
|
| |||||||
Hong Kong — 4.7% | ||||||||
| 5,301 | Cheung Kong Property Holdings Ltd. | 39,189 | ||||||
| 7,872 | China Overseas Land & Investment Ltd. | 24,166 | ||||||
| 4,030 | CK Hutchison Holdings Ltd. | 49,756 | ||||||
| 6,606 | Hang Lung Properties Ltd. | 14,527 | ||||||
| 8,011 | Sands China Ltd. | 34,767 | ||||||
|
| |||||||
| 162,405 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
India — 1.1% | ||||||||
| 549 | HDFC Bank Ltd., ADR | 38,855 | ||||||
|
| |||||||
Indonesia — 0.8% | ||||||||
| 43,232 | Astra International Tbk PT | 27,275 | ||||||
|
| |||||||
Israel — 0.9% | ||||||||
| 699 | Teva Pharmaceutical Industries Ltd., ADR | 29,873 | ||||||
|
| |||||||
Japan — 23.7% | ||||||||
| 2,767 | Astellas Pharma, Inc. | 41,064 | ||||||
| 328 | Daikin Industries Ltd. | 31,423 | ||||||
| 214 | FANUC Corp. | 39,199 | ||||||
| 1,565 | Honda Motor Co., Ltd. | 46,824 | ||||||
| 3,916 | Inpex Corp. | 36,528 | ||||||
| 1,753 | Japan Tobacco, Inc. | 66,657 | ||||||
| 1,311 | KDDI Corp. | 39,836 | ||||||
| 46 | Keyence Corp. | 33,942 | ||||||
| 1,346 | Komatsu Ltd. | 29,950 | ||||||
| 3,232 | Kubota Corp. | 52,096 | ||||||
| 660 | Makita Corp. | 45,605 | ||||||
| 1,406 | Mitsui Fudosan Co., Ltd. | 32,020 | ||||||
| 415 | Nidec Corp. | 40,194 | ||||||
| 235 | Nitto Denko Corp. | 16,351 | ||||||
| 600 | Shin-Etsu Chemical Co., Ltd. | 45,462 | ||||||
| 187 | SMC Corp. | 54,265 | ||||||
| 1,914 | Sumitomo Mitsui Financial Group, Inc. | 66,369 | ||||||
| 441 | Tokyo Electron Ltd. | 39,771 | ||||||
| 938 | Toyota Motor Corp. | 54,434 | ||||||
|
| |||||||
| 811,990 | ||||||||
|
| |||||||
Netherlands — 6.2% | ||||||||
| 679 | Akzo Nobel N.V. | 43,882 | ||||||
| 371 | ASML Holding N.V. | 39,236 | ||||||
| 3,621 | ING Groep N.V. | 47,536 | ||||||
| 215 | NXP Semiconductors N.V. (a) | 21,528 | ||||||
| 2,453 | Royal Dutch Shell plc, Class A | 61,086 | ||||||
|
| |||||||
| 213,268 | ||||||||
|
| |||||||
South Africa — 1.1% | ||||||||
| 216 | Naspers Ltd., Class N | 36,245 | ||||||
|
| |||||||
South Korea — 2.6% | ||||||||
| 95 | Hyundai Mobis Co., Ltd. | 22,571 | ||||||
| 95 | Samsung Electronics Co., Ltd. GDR | 66,651 | ||||||
|
| |||||||
| 89,222 | ||||||||
|
| |||||||
Switzerland — 10.5% | ||||||||
| 518 | Cie Financiere Richemont S.A. | 33,304 | ||||||
| 817 | Credit Suisse Group AG (a) | 11,393 | ||||||
| 9,682 | Glencore plc (a) | 29,638 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 56 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Switzerland — continued | ||||||||
| 355 | LafargeHolcim Ltd. (a) | 18,993 | ||||||
| 480 | LafargeHolcim Ltd. (a) | 25,592 | ||||||
| 945 | Novartis AG | 67,072 | ||||||
| 307 | Roche Holding AG | 70,563 | ||||||
| 3,925 | UBS Group AG | 55,490 | ||||||
| 177 | Zurich Insurance Group AG (a) | 46,266 | ||||||
|
| |||||||
| 358,311 | ||||||||
|
| |||||||
Taiwan — 1.3% | ||||||||
| 1,465 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 45,570 | ||||||
|
| |||||||
United Kingdom — 17.9% | ||||||||
| 761 | Aggreko plc | 7,444 | ||||||
| 7,541 | Barclays plc | 17,472 | ||||||
| 927 | British American Tobacco plc | 53,104 | ||||||
| 2,235 | Burberry Group plc | 40,305 | ||||||
| 9,865 | HSBC Holdings plc | 74,233 | ||||||
| 717 | Imperial Brands plc | 34,676 | ||||||
| 32,579 | Lloyds Banking Group plc | 22,751 | ||||||
| 4,681 | Meggitt plc | 24,903 | ||||||
| 890 | Persimmon plc | 18,433 | ||||||
| 3,572 | Prudential plc | 58,287 | ||||||
| 728 | Rio Tinto Ltd. | 30,118 | ||||||
| 543 | Rio Tinto plc | 18,877 | ||||||
| 4,743 | Standard Chartered plc (a) | 41,243 | ||||||
| 865 | Travis Perkins plc | 14,079 | ||||||
| 1,397 | Tullow Oil plc (a) | 4,511 | ||||||
| 993 | Unilever plc | 41,470 | ||||||
| 24,977 | Vodafone Group plc | 68,595 | ||||||
| 1,917 | WPP plc | 41,635 | ||||||
|
| |||||||
| 612,136 | ||||||||
|
| |||||||
United States — 0.7% | ||||||||
| 441 | Shire plc | 24,900 | ||||||
|
| |||||||
Total Common Stocks | 3,331,324 | |||||||
|
| |||||||
| Preferred Stock — 1.2% |
| ||||||
Germany — 1.2% | ||||||||
| 339 | Henkel AG & Co. KGaA | 43,587 | ||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Short-Term Investment — 1.1% |
| ||||||
Investment Company — 1.1% | ||||||||
| 36,620 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 36,620 | ||||||
|
| |||||||
Total Investments — 99.6% | 3,411,531 | |||||||
Other Assets in Excess of | 12,935 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 3,424,466 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Pharmaceuticals | 9.8 | % | ||
Banks | 9.7 | |||
Insurance | 6.8 | |||
Machinery | 6.5 | |||
Tobacco | 4.5 | |||
Semiconductors & Semiconductor Equipment | 4.3 | |||
Textiles, Apparel & Luxury Goods | 4.2 | |||
Oil, Gas & Consumable Fuels | 4.1 | |||
Automobiles | 3.8 | |||
Metals & Mining | 3.6 | |||
Real Estate Management & Development | 3.2 | |||
Wireless Telecommunication Services | 3.2 | |||
Chemicals | 3.1 | |||
Beverages | 2.8 | |||
Electrical Equipment | 2.7 | |||
Hotels, Restaurants & Leisure | 2.6 | |||
Media | 2.3 | |||
Capital Markets | 2.0 | |||
Technology Hardware, Storage & Peripherals | 2.0 | |||
Auto Components | 1.9 | |||
Construction Materials | 1.9 | |||
Software | 1.9 | |||
Industrial Conglomerates | 1.5 | |||
Aerospace & Defense | 1.4 | |||
Household Products | 1.3 | |||
Personal Products | 1.2 | |||
Internet Software & Services | 1.0 | |||
Electronic Equipment, Instruments & Components | 1.0 | |||
Others (each less than 1.0%) | 4.6 | |||
Short-Term Investment | 1.1 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 57 | ||||||
Table of Contents
JPMorgan International Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 97.7% |
| ||||||
Australia — 1.9% | ||||||||
| 490 | Goodman Group | 2,527 | ||||||
|
| |||||||
Belgium — 3.5% | ||||||||
| 41 | Anheuser-Busch InBev S.A./N.V. | 4,725 | ||||||
|
| |||||||
Canada — 3.7% | ||||||||
| 83 | Toronto-Dominion Bank (The) | 3,756 | ||||||
| 27 | TransCanada Corp. | 1,221 | ||||||
|
| |||||||
| 4,977 | ||||||||
|
| |||||||
China — 0.9% | ||||||||
| 969 | CNOOC Ltd. | 1,219 | ||||||
|
| |||||||
Czech Republic — 2.5% | ||||||||
| 969 | Moneta Money Bank A.S. (a) (e) | 3,378 | ||||||
|
| |||||||
Denmark — 2.6% | ||||||||
| 112 | Danske Bank A/S | 3,467 | ||||||
|
| |||||||
Finland — 2.8% | ||||||||
| 162 | UPM-Kymmene OYJ | 3,769 | ||||||
|
| |||||||
France — 7.0% | ||||||||
| 26 | Capgemini S.A. | 2,186 | ||||||
| 30 | Cie Generale des Etablissements Michelin | 3,220 | ||||||
| 7 | Unibail-Rodamco SE | 1,595 | ||||||
| 34 | Vinci S.A. | 2,447 | ||||||
|
| |||||||
| 9,448 | ||||||||
|
| |||||||
Germany — 9.1% | ||||||||
| 9 | Allianz SE | 1,356 | ||||||
| 15 | BASF SE | 1,307 | ||||||
| 28 | Daimler AG | 1,994 | ||||||
| 22 | Deutsche Boerse AG (a) | 1,720 | ||||||
| 78 | Deutsche Telekom AG | 1,269 | ||||||
| 64 | Deutsche Wohnen AG | 2,085 | ||||||
| 22 | Siemens AG | 2,477 | ||||||
|
| |||||||
| 12,208 | ||||||||
|
| |||||||
Hong Kong — 2.4% | ||||||||
| 1,151 | HKT Trust & HKT Ltd. | 1,582 | ||||||
| 370 | Sands China Ltd. | 1,606 | ||||||
|
| |||||||
| 3,188 | ||||||||
|
| |||||||
Israel — 1.8% | ||||||||
| 1,300 | Bezeq The Israeli Telecommunication Corp., Ltd. | 2,361 | ||||||
|
| |||||||
Japan — 8.4% | ||||||||
| 35 | Bridgestone Corp. | 1,321 | ||||||
| 51 | Daiwa House Industry Co., Ltd. | 1,403 | ||||||
| 33 | Japan Tobacco, Inc. | 1,236 | ||||||
| 60 | Mitsubishi Corp. | 1,312 | ||||||
| 267 | Mitsubishi UFJ Financial Group, Inc., ADR | 1,373 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Japan — continued | ||||||||
| 58 | Nippon Telegraph & Telephone Corp. | 2,585 | ||||||
| 17 | Toyota Motor Corp., ADR | 1,965 | ||||||
|
| |||||||
| 11,195 | ||||||||
|
| |||||||
Netherlands — 9.4% | ||||||||
| 159 | ING Groep N.V. | 2,093 | ||||||
| 82 | Koninklijke Ahold Delhaize N.V. | 1,866 | ||||||
| 90 | NN Group N.V. | 2,716 | ||||||
| 145 | Royal Dutch Shell plc, Class A | 3,619 | ||||||
| 61 | Wolters Kluwer N.V. | 2,369 | ||||||
|
| |||||||
| 12,663 | ||||||||
|
| |||||||
New Zealand — 1.1% | ||||||||
| 545 | Spark New Zealand Ltd. | 1,427 | ||||||
|
| |||||||
Norway — 1.6% | ||||||||
| 146 | DNB ASA | 2,113 | ||||||
|
| |||||||
Russia — 6.1% | ||||||||
| 40 | LUKOIL PJSC, ADR | 1,951 | ||||||
| 216 | MMC Norilsk Nickel PJSC, ADR | 3,252 | ||||||
| 209 | Severstal PJSC, GDR | 2,951 | ||||||
|
| |||||||
| 8,154 | ||||||||
|
| |||||||
Switzerland — 3.0% | ||||||||
| 482 | Glencore plc (a) | 1,476 | ||||||
| 15 | Swiss Re AG | 1,369 | ||||||
| 24 | Wolseley plc | 1,225 | ||||||
|
| |||||||
| 4,070 | ||||||||
|
| |||||||
Taiwan — 4.6% | ||||||||
| 152 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 4,730 | ||||||
| 695 | Vanguard International Semiconductor Corp. | 1,415 | ||||||
|
| |||||||
| 6,145 | ||||||||
|
| |||||||
United Kingdom — 25.3% | ||||||||
| 310 | 3i Group plc | 2,544 | ||||||
| 380 | BAE Systems plc | 2,519 | ||||||
| 839 | Booker Group plc | 1,841 | ||||||
| 51 | British American Tobacco plc | 2,910 | ||||||
| 67 | Compass Group plc | 1,219 | ||||||
| 456 | Direct Line Insurance Group plc | 1,927 | ||||||
| 251 | GlaxoSmithKline plc | 4,951 | ||||||
| 85 | HSBC Holdings plc, ADR | 3,190 | ||||||
| 55 | Imperial Brands plc | 2,637 | ||||||
| 37 | InterContinental Hotels Group plc | 1,421 | ||||||
| 808 | ITV plc | 1,684 | ||||||
| 56 | Persimmon plc | 1,157 | ||||||
| 360 | RSA Insurance Group plc | 2,428 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 58 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
United Kingdom — continued | ||||||||
| 164 | WPP plc | 3,553 | ||||||
|
| |||||||
| 33,981 | ||||||||
|
| |||||||
Total Common Stocks | 131,015 | |||||||
|
| |||||||
| Short-Term Investment — 1.9% |
| ||||||
Investment Company — 1.9% | ||||||||
| 2,567 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 2,567 | ||||||
|
| |||||||
Total Investments — 99.6% | 133,582 | |||||||
Other Assets in Excess of | 573 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 134,155 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 14.5 | % | ||
Insurance | 7.3 | |||
Diversified Telecommunication Services | 6.9 | |||
Oil, Gas & Consumable Fuels | 6.0 | |||
Metals & Mining | 5.7 | |||
Tobacco | 5.1 | |||
Semiconductors & Semiconductor Equipment | 4.6 | |||
Media | 3.9 | |||
Pharmaceuticals | 3.7 | |||
Beverages | 3.5 | |||
Auto Components | 3.4 | |||
Capital Markets | 3.2 | |||
Hotels, Restaurants & Leisure | 3.2 | |||
Equity Real Estate Investment Trusts (REITs) | 3.1 | |||
Automobiles | 3.0 | |||
Paper & Forest Products | 2.8 | |||
Food & Staples Retailing | 2.8 | |||
Real Estate Management & Development | 2.6 | |||
Trading Companies & Distributors | 1.9 | |||
Aerospace & Defense | 1.9 | |||
Industrial Conglomerates | 1.9 | |||
Construction & Engineering | 1.8 | |||
Professional Services | 1.8 | |||
IT Services | 1.6 | |||
Chemicals | 1.0 | |||
Others (each less than 1.0%) | 0.9 | |||
Short-Term Investment | 1.9 | |||
| Forward Foreign Currency Exchange Contracts | ||||||||||||||||||||||||
| CONTRACTS TO BUY | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||||
| 731 | GBP | |||||||||||||||||||||||
| 6,929 | for HKD | Societe Generale | 11/18/16 | $ | 893 | # | $ | 895 | # | $ | 2 | |||||||||||||
| 12,078 | HKD | Royal Bank of Canada | 11/18/16 | 1,556 | 1,557 | 1 | ||||||||||||||||||
| 29,692 | SEK | Citibank, N.A. | 11/18/16 | 3,371 | 3,290 | (81 | ) | |||||||||||||||||
| 2,145 | SGD | Australia and New Zealand Banking Group Limited | 11/18/16 | 1,543 | 1,542 | (1 | ) | |||||||||||||||||
| $ | 7,363 | $ | 7,284 | $ | (79 | ) | ||||||||||||||||||
|
| |||||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 59 | ||||||
Table of Contents
JPMorgan International Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| CONTRACTS TO SELL | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||||
| 5,178 | GBP | Goldman Sachs International | 11/18/16 | $ | 6,306 | $ | 6,340 | $ | (34 | ) | ||||||||||||||
| 1,272 | HKD | Standard Chartered Bank | 11/18/16 | 164 | 164 | — | (h) | |||||||||||||||||
| $ | 6,470 | $ | 6,504 | $ | (34 | ) | ||||||||||||||||||
|
| |||||||||||||||||||||||
| # | For cross-currency exchange contracts, the settlement value is the U.S. Dollar market value at October 31, 2016 of the currency being sold, and the value at October 31, 2016 is the U.S. dollar market value of the currency being purchased. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 60 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Opportunities Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 95.5% |
| ||||||
Australia — 3.7% |
| |||||||
| 2,140 | Australia & New Zealand Banking Group Ltd. | 45,185 | ||||||
| 6,111 | Goodman Group | 31,500 | ||||||
| 2,795 | Oil Search Ltd. | 14,008 | ||||||
| 1,657 | Westfield Corp. | 11,197 | ||||||
|
| |||||||
| 101,890 | ||||||||
|
| |||||||
Belgium — 2.1% |
| |||||||
| 493 | Anheuser-Busch InBev S.A./N.V. | 56,617 | ||||||
|
| |||||||
China — 0.5% |
| |||||||
| 2,970 | ENN Energy Holdings Ltd. | 13,963 | ||||||
|
| |||||||
Denmark — 3.3% |
| |||||||
| 452 | Chr Hansen Holding A/S | 27,099 | ||||||
| 231 | Genmab A/S (a) | 37,967 | ||||||
| 764 | Novo Nordisk A/S, Class B | 27,230 | ||||||
|
| |||||||
| 92,296 | ||||||||
|
| |||||||
Finland — 1.4% |
| |||||||
| 1,089 | UPM-Kymmene OYJ | 25,322 | ||||||
| 304 | Wartsila OYJ Abp | 13,158 | ||||||
|
| |||||||
| 38,480 | ||||||||
|
| |||||||
France — 12.2% |
| |||||||
| 564 | Airbus Group SE | 33,480 | ||||||
| 1,427 | AXA S.A. | 32,203 | ||||||
| 748 | BNP Paribas S.A. | 43,368 | ||||||
| 414 | Capgemini S.A. | 34,302 | ||||||
| 106 | Kering | 23,552 | ||||||
| 858 | Klepierre | 35,076 | ||||||
| 359 | Renault S.A. | 31,200 | ||||||
| 586 | Technip S.A. | 38,917 | ||||||
| 297 | Thales S.A. | 27,976 | ||||||
| 801 | TOTAL S.A. | 38,390 | ||||||
|
| |||||||
| 338,464 | ||||||||
|
| |||||||
Germany — 8.3% |
| |||||||
| 185 | adidas AG | 30,394 | ||||||
| 179 | Bayer AG | 17,780 | ||||||
| 148 | Continental AG | 28,400 | ||||||
| 467 | Daimler AG | 33,310 | ||||||
| 428 | Fresenius SE & Co. KGaA | 31,650 | ||||||
| 2,069 | Infineon Technologies AG | 37,218 | ||||||
| 458 | Siemens AG | 52,017 | ||||||
|
| |||||||
| 230,769 | ||||||||
|
| |||||||
Hong Kong — 2.2% |
| |||||||
| 5,986 | China Resources Gas Group Ltd. | 18,770 | ||||||
| 8,474 | China Resources Land Ltd. | 21,045 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Hong Kong — continued |
| |||||||
| 1,785 | CK Hutchison Holdings Ltd. | 22,042 | ||||||
|
| |||||||
| 61,857 | ||||||||
|
| |||||||
India — 1.1% |
| |||||||
| 415 | HDFC Bank Ltd., ADR | 29,371 | ||||||
|
| |||||||
Italy — 3.6% |
| |||||||
| 9,201 | Enel S.p.A. | 39,559 | ||||||
| 4,222 | Snam S.p.A. | 22,247 | ||||||
| 43,288 | Telecom Italia S.p.A. (a) | 37,630 | ||||||
|
| |||||||
| 99,436 | ||||||||
|
| |||||||
Japan — 25.7% |
| |||||||
| 405 | Daikin Industries Ltd. | 38,821 | ||||||
| 704 | Dentsu, Inc. | 35,094 | ||||||
| 2,280 | DMG Mori Co., Ltd. | 24,181 | ||||||
| 485 | Izumi Co., Ltd. | 22,424 | ||||||
| 893 | Japan Airlines Co., Ltd. | 26,360 | ||||||
| 4,395 | Kajima Corp. | 29,638 | ||||||
| 57 | Keyence Corp. | 41,786 | ||||||
| 1,238 | Mitsubishi Corp. | 26,936 | ||||||
| 8,649 | Mitsubishi UFJ Financial Group, Inc. | 44,625 | ||||||
| 1,680 | Mitsui Fudosan Co., Ltd. | 38,260 | ||||||
| 869 | NH Foods Ltd. | 20,824 | ||||||
| 2,069 | Nippon Steel & Sumitomo Metal Corp. | 40,997 | ||||||
| 947 | Nippon Telegraph & Telephone Corp. | 41,969 | ||||||
| 444 | Oriental Land Co., Ltd. | 25,941 | ||||||
| 2,777 | ORIX Corp. | 43,998 | ||||||
| 1,110 | Sompo Holdings, Inc. | 35,916 | ||||||
| 847 | Sumitomo Mitsui Financial Group, Inc. | 29,353 | ||||||
| 472 | Suntory Beverage & Food Ltd. | 20,621 | ||||||
| 1,084 | Suzuki Motor Corp. | 38,634 | ||||||
| 1,013 | Tokio Marine Holdings, Inc. | 39,952 | ||||||
| 1,957 | Yamato Holdings Co., Ltd. | 44,593 | ||||||
|
| |||||||
| 710,923 | ||||||||
|
| |||||||
Netherlands — 5.7% |
| |||||||
| 370 | ASML Holding N.V. | 39,170 | ||||||
| 3,254 | ING Groep N.V. | 42,718 | ||||||
| 3,070 | Royal Dutch Shell plc, Class A | 76,485 | ||||||
|
| |||||||
| 158,373 | ||||||||
|
| |||||||
Norway — 1.6% |
| |||||||
| 9,824 | Norsk Hydro ASA | 43,920 | ||||||
|
| |||||||
Spain — 0.4% |
| |||||||
| 2,270 | Distribuidora Internacional de Alimentacion S.A. | 12,122 | ||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 61 | ||||||
Table of Contents
JPMorgan International Opportunities Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands, except number of Futures contracts)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Sweden — 1.2% |
| |||||||
| 3,260 | Nordea Bank AB | 34,261 | ||||||
|
| |||||||
Switzerland — 5.6% |
| |||||||
| 303 | Nestle S.A. | 21,961 | ||||||
| 283 | Roche Holding AG | 65,100 | ||||||
| 2,680 | UBS Group AG | 37,895 | ||||||
| 584 | Wolseley plc | 30,278 | ||||||
|
| |||||||
| 155,234 | ||||||||
|
| |||||||
United Kingdom — 15.4% |
| |||||||
| 723 | Associated British Foods plc | 21,744 | ||||||
| 426 | AstraZeneca plc | 23,876 | ||||||
| 1,000 | British American Tobacco plc | 57,286 | ||||||
| 6,327 | BT Group plc | 29,041 | ||||||
| 7,396 | Dixons Carphone plc | 28,433 | ||||||
| 2,533 | GlaxoSmithKline plc | 50,037 | ||||||
| 4,213 | HSBC Holdings plc | 31,726 | ||||||
| 462 | InterContinental Hotels Group plc | 17,909 | ||||||
| 3,634 | Kingfisher plc | 16,054 | ||||||
| 1,190 | Pennon Group plc | 12,145 | ||||||
| 1,589 | Prudential plc | 25,924 | ||||||
| 385 | Reckitt Benckiser Group plc | 34,449 | ||||||
| 1,082 | Rio Tinto plc | 37,625 | ||||||
| 8,411 | Taylor Wimpey plc | 14,566 | ||||||
| 9,074 | Vodafone Group plc | 24,919 | ||||||
|
| |||||||
| 425,734 | ||||||||
|
| |||||||
United States — 1.5% |
| |||||||
| 737 | Shire plc | 41,599 | ||||||
|
| |||||||
Total Common Stocks | 2,645,309 | |||||||
|
| |||||||
| Preferred Stock — 1.3% |
| ||||||
Germany — 1.3% |
| |||||||
| 280 | Henkel AG & Co. KGaA | 35,934 | ||||||
|
| |||||||
| Short-Term Investment — 2.6% |
| ||||||
Investment Company — 2.6% |
| |||||||
| 72,806 | JPMorgan U.S. Government Money Market Fund, Institutional Class | 72,806 | ||||||
|
| |||||||
Total Investments — 99.4% | 2,754,049 | |||||||
Other Assets in Excess of | 15,821 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 2,769,870 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 10.9 | % | ||
Pharmaceuticals | 6.7 | |||
Insurance | 4.9 | |||
Oil, Gas & Consumable Fuels | 4.7 | |||
Metals & Mining | 4.4 | |||
Diversified Telecommunication Services | 3.9 | |||
Automobiles | 3.7 | |||
Biotechnology | 2.9 | |||
Equity Real Estate Investment Trusts (REITs) | 2.8 | |||
Beverages | 2.8 | |||
Semiconductors & Semiconductor Equipment | 2.8 | |||
Industrial Conglomerates | 2.7 | |||
Household Products | 2.6 | |||
Food Products | 2.3 | |||
Aerospace & Defense | 2.2 | |||
Real Estate Management & Development | 2.2 | |||
Tobacco | 2.1 | |||
Trading Companies & Distributors | 2.1 | |||
Gas Utilities | 2.0 | |||
Textiles, Apparel & Luxury Goods | 2.0 | |||
Air Freight & Logistics | 1.6 | |||
Specialty Retail | 1.6 | |||
Diversified Financial Services | 1.6 | |||
Hotels, Restaurants & Leisure | 1.6 | |||
Electronic Equipment, Instruments & Components | 1.5 | |||
Electric Utilities | 1.4 | |||
Energy Equipment & Services | 1.4 | |||
Building Products | 1.4 | |||
Capital Markets | 1.4 | |||
Machinery | 1.4 | |||
Media | 1.3 | |||
IT Services | 1.2 | |||
Health Care Providers & Services | 1.1 | |||
Construction & Engineering | 1.1 | |||
Auto Components | 1.0 | |||
Chemicals | 1.0 | |||
Airlines | 1.0 | |||
Others (each less than 1.0%) | 4.1 | |||
Short-Term Investment | 2.6 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| 62 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Futures Contracts | ||||||||||||||||||||
| NUMBER OF CONTRACTS | DESCRIPTION | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | |||||||||||||||
Long Futures Outstanding | ||||||||||||||||||||
| 153 | TOPIX Index | 12/08/16 | JPY | $ | 20,300 | $ | 531 | |||||||||||||
| 794 | Euro STOXX 50 Index | 12/16/16 | EUR | 26,622 | 70 | |||||||||||||||
| 279 | FTSE 100 Index | 12/16/16 | GBP | 23,615 | (215 | ) | ||||||||||||||
|
| |||||||||||||||||||
| $ | 386 | |||||||||||||||||||
|
| |||||||||||||||||||
| Forward Foreign Currency Exchange Contracts | ||||||||||||||||||||||||
| CONTRACTS TO BUY | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||||
| 12,626 | EUR | |||||||||||||||||||||||
| 1,432,272 | for JPY | Standard Chartered Bank | 11/14/16 | $ | 13,663 | # | $ | 13,867 | # | $ | 204 | |||||||||||||
| 11,434 | GBP | |||||||||||||||||||||||
| 12,727 | for EUR | Goldman Sachs International | 11/14/16 | 13,978 | # | 13,998 | # | 20 | ||||||||||||||||
| 15,250 | AUD | Australia & New Zealand Banking Group Limited | 11/14/16 | 11,662 | 11,597 | (65 | ) | |||||||||||||||||
| 109,239 | AUD | Standard Chartered Bank | 11/14/16 | 82,405 | 83,071 | 666 | ||||||||||||||||||
| 110,325 | CHF | Morgan Stanley | 11/14/16 | 114,908 | 111,555 | (3,353 | ) | |||||||||||||||||
| 8,267 | EUR | Standard Chartered Bank | 11/14/16 | 9,125 | 9,080 | (45 | ) | |||||||||||||||||
| 4,929 | GBP | Citibank, N.A. | 11/14/16 | 6,566 | 6,035 | (531 | ) | |||||||||||||||||
| 20,876 | GBP | Goldman Sachs International | 11/14/16 | 27,933 | 25,559 | (2,374 | ) | |||||||||||||||||
| 10,710 | GBP | Merrill Lynch International | 11/14/16 | 14,072 | 13,112 | (960 | ) | |||||||||||||||||
| 12,518 | GBP | Morgan Stanley | 11/14/16 | 16,581 | 15,325 | (1,256 | ) | |||||||||||||||||
| 22,192 | GBP | Royal Bank of Canada | 11/14/16 | 27,875 | 27,170 | (705 | ) | |||||||||||||||||
| 5,935 | GBP | State Street Corp. | 11/14/16 | 7,284 | 7,265 | (19 | ) | |||||||||||||||||
| 13,449 | GBP | TD Bank Financial Group | 11/14/16 | 16,445 | 16,465 | 20 | ||||||||||||||||||
| 201,399 | HKD | Australia & New Zealand Banking Group Limited | 11/14/16 | 25,986 | 25,970 | (16 | ) | |||||||||||||||||
| 5,249,417 | JPY | Goldman Sachs International | 11/14/16 | 51,648 | 50,076 | (1,572 | ) | |||||||||||||||||
| 537,349 | JPY | Merrill Lynch International | 11/14/16 | 5,308 | 5,126 | (182 | ) | |||||||||||||||||
| 1,084,659 | JPY | Standard Chartered Bank | 11/14/16 | 10,415 | 10,347 | (68 | ) | |||||||||||||||||
| 182,238 | SEK | TD Bank Financial Group | 11/14/16 | 21,405 | 20,187 | (1,218 | ) | |||||||||||||||||
| 37,640 | SGD | TD Bank Financial Group | 11/14/16 | 28,077 | 27,057 | (1,020 | ) | |||||||||||||||||
| $ | 505,336 | $ | 492,862 | $ | (12,474 | ) | ||||||||||||||||||
|
| |||||||||||||||||||||||
| CONTRACTS TO SELL | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||
| 336,438 | DKK | Morgan Stanley | 11/14/16 | $ | 50,881 | $ | 49,679 | $ | 1,202 | |||||||||||||
| 24,260 | EUR | BNP Paribas | 11/14/16 | 27,433 | 26,644 | 789 | ||||||||||||||||
| 44,064 | EUR | Citibank, N.A. | 11/14/16 | 49,815 | 48,394 | 1,421 | ||||||||||||||||
| 12,943 | EUR | Goldman Sachs International | 11/14/16 | 14,094 | 14,215 | (121 | ) | |||||||||||||||
| 8,506 | EUR | Merrill Lynch International | 11/14/16 | 9,568 | 9,341 | 227 | ||||||||||||||||
| 29,580 | EUR | State Street Corp. | 11/14/16 | 33,273 | 32,488 | 785 | ||||||||||||||||
| 4,756 | GBP | Goldman Sachs International | 11/14/16 | 6,220 | 5,823 | 397 | ||||||||||||||||
| 97,453 | GBP | Standard Chartered Bank | 11/14/16 | 129,084 | 119,310 | 9,774 | ||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 63 | ||||||
Table of Contents
JPMorgan International Opportunities Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| CONTRACTS TO SELL | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||||
| 3,710,440 | JPY | Citibank, N.A. | 11/14/16 | $ | 36,683 | $ | 35,395 | $ | 1,288 | |||||||||||||||
| 1,066,217 | JPY | Goldman Sachs International | 11/14/16 | 10,569 | 10,171 | 398 | ||||||||||||||||||
| 864,386 | JPY | Merrill Lynch International | 11/14/16 | 8,334 | 8,246 | 88 | ||||||||||||||||||
| 893,948 | JPY | State Street Corp. | 11/14/16 | 8,632 | 8,527 | 105 | ||||||||||||||||||
| 190,241 | NOK | TD Bank Financial Group | 11/14/16 | 22,485 | 23,025 | (540 | ) | |||||||||||||||||
| $ | 407,071 | $ | 391,258 | $ | 15,813 | |||||||||||||||||||
|
| |||||||||||||||||||||||
| # | For cross-currency exchange contracts, the settlement value is the U.S. Dollar market value at October 31, 2016 of the currency being sold, and the value at October 31, 2016 is the U.S. Dollar market value of the currency being purchased. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 64 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 95.8% |
| ||||||
Australia — 6.4% |
| |||||||
| 987 | AMP Ltd. | 3,421 | ||||||
| 708 | Australia & New Zealand Banking Group Ltd. | 14,955 | ||||||
| 449 | BGP Holdings plc (a) | — | (h) | |||||
| 786 | BHP Billiton Ltd. | 13,731 | ||||||
| 254 | Commonwealth Bank of Australia | 14,117 | ||||||
| 49 | CSL Ltd. | 3,738 | ||||||
| 848 | Dexus Property Group | 5,763 | ||||||
| 1,525 | Goodman Group | 7,860 | ||||||
| 113 | Macquarie Group Ltd. | 6,812 | ||||||
| 52 | National Australia Bank Ltd. | 1,107 | ||||||
| 335 | Wesfarmers Ltd. | 10,445 | ||||||
| 151 | Westpac Banking Corp. | 3,499 | ||||||
|
| |||||||
| 85,448 | ||||||||
|
| |||||||
Belgium — 1.0% |
| |||||||
| 122 | Anheuser-Busch InBev S.A./N.V. | 13,955 | ||||||
|
| |||||||
Denmark — 0.8% |
| |||||||
| 70 | Chr Hansen Holding A/S | 4,167 | ||||||
| 191 | Novo Nordisk A/S, Class B | 6,818 | ||||||
|
| |||||||
| 10,985 | ||||||||
|
| |||||||
Finland — 2.0% |
| |||||||
| 100 | Cargotec Oyj, Class B | 4,087 | ||||||
| 1,828 | Nokia OYJ | 8,162 | ||||||
| 570 | Outokumpu OYJ (a) | 3,973 | ||||||
| 219 | UPM-Kymmene OYJ | 5,099 | ||||||
| 115 | Wartsila OYJ Abp | 4,968 | ||||||
|
| |||||||
| 26,289 | ||||||||
|
| |||||||
France — 10.4% |
| |||||||
| 145 | Air Liquide S.A. | 14,710 | ||||||
| 169 | Airbus Group SE | 10,012 | ||||||
| 35 | Arkema S.A. | 3,311 | ||||||
| 611 | AXA S.A. | 13,783 | ||||||
| 206 | BNP Paribas S.A. | 11,957 | ||||||
| 80 | Capgemini S.A. | 6,590 | ||||||
| 286 | Engie S.A. | 4,126 | ||||||
| 928 | Natixis S.A. | 4,694 | ||||||
| 68 | Pernod Ricard S.A. | 8,063 | ||||||
| 65 | Renault S.A. | 5,627 | ||||||
| 140 | Sanofi | 10,894 | ||||||
| 163 | Schneider Electric SE | 10,937 | ||||||
| 58 | Sodexo S.A. | 6,782 | ||||||
| 106 | Technip S.A. | 7,028 | ||||||
| 266 | TOTAL S.A. | 12,763 | ||||||
| 398 | Vivendi S.A. | 8,050 | ||||||
|
| |||||||
| 139,327 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Germany — 9.0% |
| |||||||
| 43 | adidas AG | 7,134 | ||||||
| 15 | Allianz SE | 2,269 | ||||||
| 25 | BASF SE | 2,187 | ||||||
| 156 | Bayer AG | 15,499 | ||||||
| 136 | Brenntag AG | 7,280 | ||||||
| 203 | Daimler AG | 14,468 | ||||||
| 57 | Deutsche Bank AG (a) | 821 | ||||||
| 271 | Deutsche Post AG | 8,399 | ||||||
| 522 | Deutsche Telekom AG | 8,514 | ||||||
| 47 | HeidelbergCement AG | 4,488 | ||||||
| 443 | Infineon Technologies AG | 7,959 | ||||||
| 34 | Linde AG | 5,633 | ||||||
| 196 | SAP SE | 17,248 | ||||||
| 157 | Siemens AG | 17,878 | ||||||
|
| |||||||
| 119,777 | ||||||||
|
| |||||||
Hong Kong — 2.8% |
| |||||||
| 700 | AIA Group Ltd. | 4,404 | ||||||
| 631 | Cheung Kong Property Holdings Ltd. | 4,666 | ||||||
| 818 | CK Hutchison Holdings Ltd. | 10,096 | ||||||
| 33 | Hang Seng Bank Ltd. | 602 | ||||||
| 112 | Hang Seng Bank Ltd. | 2,012 | ||||||
| 18 | Power Assets Holdings Ltd. | 164 | ||||||
| 713 | Power Assets Holdings Ltd. | 6,697 | ||||||
| 727 | Sands China Ltd. | 3,154 | ||||||
| 689 | Wharf Holdings Ltd. (The) | 5,168 | ||||||
|
| |||||||
| 36,963 | ||||||||
|
| |||||||
Ireland — 0.4% |
| |||||||
| 69 | Ryanair Holdings plc, ADR (a) | 5,161 | ||||||
|
| |||||||
Israel — 0.8% |
| |||||||
| 237 | Teva Pharmaceutical Industries Ltd., ADR | 10,141 | ||||||
|
| |||||||
Italy — 2.3% |
| |||||||
| 311 | Assicurazioni Generali S.p.A. | 4,022 | ||||||
| 268 | Atlantia S.p.A. | 6,574 | ||||||
| 2,173 | Enel S.p.A. | 9,341 | ||||||
| 8,330 | Telecom Italia S.p.A. (a) | 7,241 | ||||||
| 1,684 | UniCredit S.p.A. | 4,180 | ||||||
|
| |||||||
| 31,358 | ||||||||
|
| |||||||
Japan — 23.0% |
| |||||||
| 202 | Bridgestone Corp. | 7,554 | ||||||
| 46 | Central Japan Railway Co. | 7,805 | ||||||
| 82 | Daikin Industries Ltd. | 7,876 | ||||||
| 84 | Dentsu, Inc. | 4,187 | ||||||
| 355 | DMG Mori Co., Ltd. | 3,768 | ||||||
| 109 | East Japan Railway Co. | 9,630 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 65 | ||||||
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Japan — continued |
| |||||||
| 106 | Electric Power Development Co., Ltd. | 2,471 | ||||||
| 1,025 | Fujitsu Ltd. | 6,081 | ||||||
| 1,680 | Hitachi Ltd. | 8,956 | ||||||
| 318 | Honda Motor Co., Ltd. | 9,524 | ||||||
| 373 | J. Front Retailing Co., Ltd. | 5,129 | ||||||
| 205 | Japan Airlines Co., Ltd. | 6,053 | ||||||
| 69 | Japan Tobacco, Inc. | 2,616 | ||||||
| 229 | JFE Holdings, Inc. | 3,281 | ||||||
| 1,096 | JX Holdings, Inc. | 4,331 | ||||||
| 1,021 | Kajima Corp. | 6,885 | ||||||
| 182 | KDDI Corp. | 5,519 | ||||||
| 5 | Keyence Corp. | 3,372 | ||||||
| 477 | Kirin Holdings Co., Ltd. | 8,194 | ||||||
| 322 | Kyowa Hakko Kirin Co., Ltd. | 4,906 | ||||||
| 306 | Kyushu Electric Power Co., Inc. | 2,781 | ||||||
| 140 | LIXIL Group Corp. | 3,211 | ||||||
| 97 | Mabuchi Motor Co., Ltd. | 5,650 | ||||||
| 421 | Mazda Motor Corp. | 6,983 | ||||||
| 286 | Medipal Holdings Corp. | 4,890 | ||||||
| 2,396 | Mitsubishi UFJ Financial Group, Inc. | 12,360 | ||||||
| 124 | Mitsui & Co., Ltd. | 1,719 | ||||||
| 348 | Mitsui Fudosan Co., Ltd. | 7,919 | ||||||
| 160 | MS&AD Insurance Group Holdings, Inc. | 4,738 | ||||||
| 160 | NGK Spark Plug Co., Ltd. | 3,181 | ||||||
| 73 | Nidec Corp. | 7,025 | ||||||
| 183 | Nippon Steel & Sumitomo Metal Corp. | 3,618 | ||||||
| 237 | Nippon Telegraph & Telephone Corp. | 10,508 | ||||||
| 181 | Nishi-Nippon Financial Holdings, Inc. (a) | 1,800 | ||||||
| — | (h) | Nitori Holdings Co., Ltd. | 10 | |||||
| 141 | Omron Corp. | 5,404 | ||||||
| 292 | ORIX Corp. | 4,634 | ||||||
| 161 | Otsuka Holdings Co., Ltd. | 7,024 | ||||||
| 249 | Seiko Epson Corp. | 5,049 | ||||||
| 266 | Seven & i Holdings Co., Ltd. | 11,099 | ||||||
| 99 | Shin-Etsu Chemical Co., Ltd. | 7,484 | ||||||
| 275 | Sony Corp. | 8,661 | ||||||
| 895 | Sumitomo Bakelite Co., Ltd. | 4,860 | ||||||
| 295 | Sumitomo Mitsui Financial Group, Inc. | 10,242 | ||||||
| 182 | Sumitomo Realty & Development Co., Ltd. | 4,784 | ||||||
| 144 | Suntory Beverage & Food Ltd. | 6,305 | ||||||
| 105 | Suzuken Co., Ltd. | 3,382 | ||||||
| 402 | Takashimaya Co., Ltd. | 3,279 | ||||||
| 891 | Tokyo Gas Co., Ltd. | 4,042 | ||||||
| 315 | Toyota Motor Corp. | 18,290 | ||||||
| 324 | Yamato Holdings Co., Ltd. | 7,373 | ||||||
|
| |||||||
| 306,443 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Luxembourg — 0.5% |
| |||||||
| 1,035 | ArcelorMittal (a) | 6,995 | ||||||
|
| |||||||
Netherlands — 6.0% |
| |||||||
| 767 | Aegon N.V. | 3,317 | ||||||
| 100 | ASML Holding N.V. | 10,563 | ||||||
| 108 | Heineken N.V. | 8,914 | ||||||
| 901 | ING Groep N.V. | 11,829 | ||||||
| 1,248 | Koninklijke KPN N.V. | 4,069 | ||||||
| 346 | Koninklijke Philips N.V. | 10,414 | ||||||
| 160 | NN Group N.V. | 4,814 | ||||||
| 441 | Royal Dutch Shell plc, Class A | 10,995 | ||||||
| 599 | Royal Dutch Shell plc, Class B | 15,450 | ||||||
|
| |||||||
| 80,365 | ||||||||
|
| |||||||
New Zealand — 0.4% |
| |||||||
| 1,902 | Spark New Zealand Ltd. | 4,976 | ||||||
|
| |||||||
Portugal — 0.3% |
| |||||||
| 297 | Galp Energia SGPS S.A. | 4,027 | ||||||
|
| |||||||
Singapore — 0.8% |
| |||||||
| 801 | DBS Group Holdings Ltd. | 8,637 | ||||||
| 352 | Singapore Exchange Ltd. | 1,795 | ||||||
|
| |||||||
| 10,432 | ||||||||
|
| |||||||
Spain — 2.1% |
| |||||||
| 1,149 | Banco Santander S.A. | 5,631 | ||||||
| 6,471 | Bankia S.A. | 5,685 | ||||||
| 1,138 | Iberdrola S.A. | 7,741 | ||||||
| 272 | Repsol S.A. | 3,797 | ||||||
| 536 | Telefonica S.A. | 5,448 | ||||||
|
| |||||||
| 28,302 | ||||||||
|
| |||||||
Sweden — 1.2% |
| |||||||
| 926 | Nordea Bank AB | 9,728 | ||||||
| 589 | Sandvik AB | 6,689 | ||||||
|
| |||||||
| 16,417 | ||||||||
|
| |||||||
Switzerland — 9.5% |
| |||||||
| 39 | Actelion Ltd. (a) | 5,590 | ||||||
| 147 | Cie Financiere Richemont S.A. | 9,425 | ||||||
| 158 | Credit Suisse Group AG (a) | 2,199 | ||||||
| 34 | LafargeHolcim Ltd. (a) | 1,823 | ||||||
| 152 | LafargeHolcim Ltd. (a) | 8,110 | ||||||
| 468 | Nestle S.A. | 33,943 | ||||||
| 181 | Novartis AG | 12,871 | ||||||
| 103 | Roche Holding AG | 23,605 | ||||||
| 11 | Syngenta AG (a) | 4,255 | ||||||
| 643 | UBS Group AG | 9,093 | ||||||
| 195 | Wolseley plc | 10,112 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 66 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Switzerland — continued |
| |||||||
| 22 | Zurich Insurance Group AG (a) | 5,807 | ||||||
|
| |||||||
| 126,833 | ||||||||
|
| |||||||
United Kingdom — 15.3% |
| |||||||
| 590 | 3i Group plc | 4,832 | ||||||
| 158 | Associated British Foods plc | 4,745 | ||||||
| 175 | AstraZeneca plc | 9,799 | ||||||
| 1,211 | Aviva plc | 6,561 | ||||||
| 3,401 | Barclays plc | 7,879 | ||||||
| 674 | Barratt Developments plc | 3,736 | ||||||
| 1,795 | BP plc | 10,609 | ||||||
| 340 | British American Tobacco plc | 19,509 | ||||||
| 3,083 | Centrica plc | 8,075 | ||||||
| 1,574 | Debenhams plc | 1,034 | ||||||
| 1,160 | Dixons Carphone plc | 4,459 | ||||||
| 779 | GlaxoSmithKline plc | 15,381 | ||||||
| 2,431 | HSBC Holdings plc | 18,308 | ||||||
| 236 | HSBC Holdings plc | 1,776 | ||||||
| 196 | InterContinental Hotels Group plc | 7,598 | ||||||
| 2,330 | ITV plc | 4,858 | ||||||
| 12,699 | Lloyds Banking Group plc | 8,868 | ||||||
| 271 | Prudential plc | 4,417 | ||||||
| 115 | Reckitt Benckiser Group plc | 10,251 | ||||||
| 122 | Rio Tinto Ltd. | 5,043 | ||||||
| 72 | Rio Tinto plc | 2,493 | ||||||
| 517 | RSA Insurance Group plc | 3,489 | ||||||
| 877 | Standard Chartered plc (a) | 7,628 | ||||||
| 1,355 | Taylor Wimpey plc | 2,346 | ||||||
| 148 | Unilever N.V., CVA | 6,184 | ||||||
| 5,221 | Vodafone Group plc | 14,338 | ||||||
| 77 | Whitbread plc | 3,392 | ||||||
| 283 | WPP plc | 6,144 | ||||||
|
| |||||||
| 203,752 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
United States — 0.8% |
| |||||||
| 199 | Shire plc | 11,218 | ||||||
|
| |||||||
Total Common Stocks | 1,279,164 | |||||||
|
| |||||||
| Preferred Stocks — 1.0% |
| ||||||
Germany — 1.0% |
| |||||||
| 83 | Henkel AG & Co. KGaA | 10,679 | ||||||
| 23 | Volkswagen AG | 3,156 | ||||||
|
| |||||||
Total Preferred Stocks | 13,835 | |||||||
|
| |||||||
| NUMBER OF RIGHTS | ||||||||
| Rights — 0.0% (g) |
| ||||||
Spain — 0.0% (g) | ||||||||
| 1,149 | Banco Santander S.A., expiring 11/02/16 (a) | 64 | ||||||
|
| |||||||
| SHARES | ||||||||
| Short-Term Investment — 2.5% |
| ||||||
Investment Company — 2.5% | ||||||||
| 32,949 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 32,949 | ||||||
|
| |||||||
Total Investments — 99.3% | 1,326,012 | |||||||
Other Assets in Excess of | 9,199 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,335,211 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 67 | ||||||
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands, except number of Futures contracts)
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 12.6 | % | ||
Pharmaceuticals | 8.8 | |||
Oil, Gas & Consumable Fuels | 4.7 | |||
Automobiles | 4.4 | |||
Insurance | 4.4 | |||
Diversified Telecommunication Services | 3.7 | |||
Chemicals | 3.5 | |||
Beverages | 3.4 | |||
Metals & Mining | 3.0 | |||
Food Products | 2.9 | |||
Industrial Conglomerates | 2.9 | |||
Electric Utilities | 2.0 | |||
Capital Markets | 1.9 | |||
Electrical Equipment | 1.8 | |||
Real Estate Management & Development | 1.7 | |||
Tobacco | 1.7 | |||
Food & Staples Retailing | 1.6 | |||
Household Products | 1.6 | |||
| INDUSTRY | PERCENTAGE | |||
Hotels, Restaurants & Leisure | 1.6 | % | ||
Biotechnology | 1.6 | |||
Wireless Telecommunication Services | 1.5 | |||
Machinery | 1.5 | |||
Trading Companies & Distributors | 1.4 | |||
Semiconductors & Semiconductor Equipment | 1.4 | |||
Electronic Equipment, Instruments & Components | 1.3 | |||
Road & Rail | 1.3 | |||
Software | 1.3 | |||
Textiles, Apparel & Luxury Goods | 1.2 | |||
Air Freight & Logistics | 1.2 | |||
Media | 1.1 | |||
Household Durables | 1.1 | |||
Construction Materials | 1.1 | |||
Equity Real Estate Investment Trusts (REITs) | 1.0 | |||
IT Services | 1.0 | |||
Others (each less than 1.0%) | 10.3 | |||
Short-Term Investment | 2.5 | |||
| Futures Contracts | ||||||||||||||||||||
| NUMBER OF CONTRACTS | DESCRIPTION | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | |||||||||||||||
Long Futures Outstanding | ||||||||||||||||||||
| 40 | TOPIX Index | 12/08/16 | JPY | $ | 5,307 | $ | 238 | |||||||||||||
| 336 | Euro STOXX 50 Index | 12/16/16 | EUR | 11,266 | 212 | |||||||||||||||
| 119 | FTSE 100 Index | 12/16/16 | GBP | 10,072 | 248 | |||||||||||||||
|
| |||||||||||||||||||
| $ | 698 | |||||||||||||||||||
|
| |||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 68 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 98.2% |
| ||||||
Belgium — 2.6% |
| |||||||
| 25 | Anheuser-Busch InBev S.A./N.V. | 2,901 | ||||||
|
| |||||||
Canada — 4.5% |
| |||||||
| 68 | Alimentation Couche-Tard, Inc., Class B | 3,439 | ||||||
| 24 | Canadian National Railway Co. | 1,514 | ||||||
|
| |||||||
| 4,953 | ||||||||
|
| |||||||
China — 10.0% |
| |||||||
| 18 | Baidu, Inc., ADR (a) | 3,153 | ||||||
| 614 | CNOOC Ltd. | 775 | ||||||
| 2,487 | CNOOC Ltd. | 3,129 | ||||||
| 77 | JD.com, Inc., ADR (a) | 2,005 | ||||||
| 1,234 | Wynn Macau Ltd. | 1,890 | ||||||
|
| |||||||
| 10,952 | ||||||||
|
| |||||||
Denmark — 2.0% |
| |||||||
| 61 | Novo Nordisk A/S, Class B | 2,176 | ||||||
|
| |||||||
Finland — 3.9% |
| |||||||
| 608 | Nokia OYJ | 2,713 | ||||||
| 37 | Wartsila OYJ Abp | 1,619 | ||||||
|
| |||||||
| 4,332 | ||||||||
|
| |||||||
France — 2.0% |
| |||||||
| 142 | Orange S.A. | 2,227 | ||||||
|
| |||||||
Germany — 3.5% |
| |||||||
| 11 | Continental AG | 2,042 | ||||||
| 42 | Zalando SE, (a) (e) | 1,830 | ||||||
|
| |||||||
| 3,872 | ||||||||
|
| |||||||
Hong Kong — 8.5% |
| |||||||
| 430 | AIA Group Ltd. | 2,705 | ||||||
| 312 | Cheung Kong Property Holdings Ltd. | 2,306 | ||||||
| 1,826 | China Unicom Hong Kong Ltd. | 2,144 | ||||||
| 178 | CK Hutchison Holdings Ltd. | 2,192 | ||||||
|
| |||||||
| 9,347 | ||||||||
|
| |||||||
India — 2.2% |
| |||||||
| 33 | HDFC Bank Ltd., ADR | 2,358 | ||||||
|
| |||||||
Israel — 2.8% |
| |||||||
| 71 | Teva Pharmaceutical Industries Ltd. ADR | 3,034 | ||||||
|
| |||||||
Italy — 1.3% |
| |||||||
| 605 | Intesa Sanpaolo S.p.A. | 1,402 | ||||||
|
| |||||||
Japan — 7.6% |
| |||||||
| 66 | KDDI Corp. | 1,997 | ||||||
| 3 | Keyence Corp. | 1,833 | ||||||
| 163 | Kubota Corp. | 2,627 | ||||||
| 71 | Shiseido Co., Ltd. | 1,842 | ||||||
|
| |||||||
| 8,299 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Netherlands — 10.5% |
| |||||||
| 32 | Akzo Nobel N.V. | 2,098 | ||||||
| 171 | Altice N.V., Class A (a) | 3,145 | ||||||
| 156 | ING Groep N.V. | 2,050 | ||||||
| 99 | NN Group N.V. | 2,982 | ||||||
| 13 | NXP Semiconductors N.V. (a) | 1,288 | ||||||
|
| |||||||
| 11,563 | ||||||||
|
| |||||||
South Africa — 1.7% |
| |||||||
| 11 | Naspers Ltd., Class N | 1,867 | ||||||
|
| |||||||
South Korea — 1.5% |
| |||||||
| 2 | Samsung Electronics Co., Ltd. GDR | 1,591 | ||||||
|
| |||||||
Switzerland — 12.0% |
| |||||||
| 12 | Actelion Ltd. (a) | 1,779 | ||||||
| 45 | Cie Financiere Richemont S.A. | 2,907 | ||||||
| 86 | LafargeHolcim Ltd. (a) | 4,565 | ||||||
| 10 | Roche Holding AG | 2,320 | ||||||
| 115 | UBS Group AG | 1,623 | ||||||
|
| |||||||
| 13,194 | ||||||||
|
| |||||||
Taiwan — 2.0% |
| |||||||
| 72 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 2,241 | ||||||
|
| |||||||
United Kingdom — 17.9% |
| |||||||
| 39 | British American Tobacco plc | 2,241 | ||||||
| 189 | British Land Co. plc (The) | 1,353 | ||||||
| 968 | ITV plc | 2,017 | ||||||
| 338 | Meggitt plc | 1,797 | ||||||
| 96 | RELX N.V. | 1,617 | ||||||
| 107 | Rio Tinto plc | 3,737 | ||||||
| 115 | Smith & Nephew plc | 1,661 | ||||||
| 249 | Standard Chartered plc (a) | 2,161 | ||||||
| 1,101 | Vodafone Group plc | 3,023 | ||||||
|
| |||||||
| 19,607 | ||||||||
|
| |||||||
United States — 1.7% |
| |||||||
| 34 | Shire plc | 1,912 | ||||||
|
| |||||||
Total Common Stocks | 107,828 | |||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 69 | ||||||
Table of Contents
JPMorgan International Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Short-Term Investment — 1.9% |
| ||||||
Investment Company — 1.9% |
| |||||||
| 2,047 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, | 2,047 | ||||||
|
| |||||||
Total Investments — 100.1% | 109,875 | |||||||
Liabilities in Excess of | (100 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 109,775 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 7.2 | % | ||
Pharmaceuticals | 6.8 | |||
Media | 6.4 | |||
Insurance | 5.2 | |||
Wireless Telecommunication Services | 4.6 | |||
Construction Materials | 4.1 | |||
Diversified Telecommunication Services | 4.0 | |||
Machinery | 3.9 | |||
Oil, Gas & Consumable Fuels | 3.6 | |||
Internet & Direct Marketing Retail | 3.5 | |||
Metals & Mining | 3.4 | |||
Biotechnology | 3.4 | |||
Semiconductors & Semiconductor Equipment | 3.2 | |||
Food & Staples Retailing | 3.1 | |||
Internet Software & Services | 2.9 | |||
Textiles, Apparel & Luxury Goods | 2.6 | |||
Beverages | 2.6 | |||
Communications Equipment | 2.5 | |||
Real Estate Management & Development | 2.1 | |||
Tobacco | 2.0 | |||
Industrial Conglomerates | 2.0 | |||
Chemicals | 1.9 | |||
Auto Components | 1.9 | |||
Hotels, Restaurants & Leisure | 1.7 | |||
Personal Products | 1.7 | |||
Electronic Equipment, Instruments & Components | 1.7 | |||
Aerospace & Defense | 1.6 | |||
Health Care Equipment & Supplies | 1.5 | |||
Capital Markets | 1.5 | |||
Professional Services | 1.5 | |||
Technology Hardware, Storage & Peripherals | 1.4 | |||
Road & Rail | 1.4 | |||
Equity Real Estate Investment Trusts (REITs) | 1.2 | |||
Short-Term Investment | 1.9 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| 70 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 99.3% |
| ||||||
Australia — 4.1% |
| |||||||
| 1,843 | Australia & New Zealand Banking Group Ltd. | 38,914 | ||||||
| 2,756 | Goodman Group | 14,206 | ||||||
|
| |||||||
| 53,120 | ||||||||
|
| |||||||
Belgium — 2.0% |
| |||||||
| 114 | Anheuser-Busch InBev S.A./N.V. | 13,046 | ||||||
| 225 | KBC Group N.V. (a) | 13,723 | ||||||
|
| |||||||
| 26,769 | ||||||||
|
| |||||||
Canada — 0.9% |
| |||||||
| 275 | TransCanada Corp. | 12,437 | ||||||
|
| |||||||
Chile — 0.6% |
| |||||||
| 331 | Banco Santander Chile, ADR | 7,574 | ||||||
|
| |||||||
China — 1.0% |
| |||||||
| 10,241 | CNOOC Ltd. | 12,886 | ||||||
|
| |||||||
Denmark — 0.6% |
| |||||||
| 60 | Pandora A/S | 7,799 | ||||||
|
| |||||||
Finland — 2.3% |
| |||||||
| 1,741 | Outokumpu OYJ (a) | 12,136 | ||||||
| 773 | UPM-Kymmene OYJ | 17,982 | ||||||
|
| |||||||
| 30,118 | ||||||||
|
| |||||||
France — 15.8% |
| |||||||
| 139 | Air Liquide S.A. | 14,172 | ||||||
| 221 | Airbus Group SE | 13,116 | ||||||
| 1,202 | AXA S.A. | 27,124 | ||||||
| 573 | BNP Paribas S.A. | 33,236 | ||||||
| 136 | Capgemini S.A. | 11,291 | ||||||
| 2,527 | Natixis S.A. | 12,785 | ||||||
| 222 | Renault S.A. | 19,348 | ||||||
| 233 | Schneider Electric SE | 15,677 | ||||||
| 209 | Technip S.A. | 13,894 | ||||||
| 961 | TOTAL S.A. | 46,051 | ||||||
|
| |||||||
| 206,694 | ||||||||
|
| |||||||
Germany — 8.0% |
| |||||||
| 133 | Bayer AG | 13,172 | ||||||
| 217 | Brenntag AG | 11,599 | ||||||
| 363 | Daimler AG | 25,888 | ||||||
| 92 | HeidelbergCement AG | 8,661 | ||||||
| 627 | Infineon Technologies AG | 11,273 | ||||||
| 295 | Siemens AG | 33,541 | ||||||
|
| |||||||
| 104,134 | ||||||||
|
| |||||||
Hong Kong — 2.0% |
| |||||||
| 2,324 | China Overseas Land & Investment Ltd. | 7,134 | ||||||
| 1,553 | CK Hutchison Holdings Ltd. | 19,178 | ||||||
|
| |||||||
| 26,312 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Ireland — 0.5% |
| |||||||
| 89 | Ryanair Holdings plc, ADR (a) | 6,679 | ||||||
|
| |||||||
Israel — 1.4% |
| |||||||
| 437 | Teva Pharmaceutical Industries Ltd., ADR | 18,673 | ||||||
|
| |||||||
Italy — 3.7% |
| |||||||
| 5,693 | Enel S.p.A. | 24,477 | ||||||
| 5,983 | Intesa Sanpaolo S.p.A. | 13,874 | ||||||
| 11,368 | Telecom Italia S.p.A. (a) | 9,882 | ||||||
|
| |||||||
| 48,233 | ||||||||
|
| |||||||
Japan — 23.8% |
| |||||||
| 219 | Bridgestone Corp. | 8,170 | ||||||
| 226 | Daikin Industries Ltd. | 21,629 | ||||||
| 703 | Daiwa House Industry Co., Ltd. | 19,284 | ||||||
| 223 | Dentsu, Inc. | 11,116 | ||||||
| 574 | DMG Mori Co., Ltd. | 6,084 | ||||||
| 803 | Honda Motor Co., Ltd. | 24,030 | ||||||
| 402 | Japan Airlines Co., Ltd. | 11,855 | ||||||
| 115 | Mabuchi Motor Co., Ltd. | 6,662 | ||||||
| 626 | Mitsubishi Corp. | 13,616 | ||||||
| 6,771 | Mitsubishi UFJ Financial Group, Inc. | 34,934 | ||||||
| 781 | Mitsui Fudosan Co., Ltd. | 17,786 | ||||||
| 439 | NGK Spark Plug Co., Ltd. | 8,716 | ||||||
| 282 | NH Foods Ltd. | 6,758 | ||||||
| 586 | Nippon Telegraph & Telephone Corp. | 25,986 | ||||||
| 279 | Sompo Holdings, Inc. | 9,018 | ||||||
| 295 | Sony Corp. | 9,301 | ||||||
| 1,096 | Sumitomo Electric Industries Ltd. | 16,192 | ||||||
| 317 | Sumitomo Mitsui Financial Group, Inc. | 11,001 | ||||||
| 419 | Sumitomo Mitsui Trust Holdings, Inc. | 14,125 | ||||||
| 204 | Suzuken Co., Ltd. | 6,546 | ||||||
| 444 | Suzuki Motor Corp. | 15,838 | ||||||
| 544 | Yamato Holdings Co., Ltd. | 12,399 | ||||||
|
| |||||||
| 311,046 | ||||||||
|
| |||||||
Luxembourg — 1.1% |
| |||||||
| 2,125 | ArcelorMittal (a) | 14,356 | ||||||
|
| |||||||
Netherlands — 7.1% |
| |||||||
| 454 | ASR Nederland N.V. (a) | 10,062 | ||||||
| 2,045 | ING Groep N.V. | 26,842 | ||||||
| 382 | NN Group N.V. | 11,515 | ||||||
| 1,800 | Royal Dutch Shell plc, Class A | 44,834 | ||||||
|
| |||||||
| 93,253 | ||||||||
|
| |||||||
Norway — 1.2% |
| |||||||
| 3,627 | Norsk Hydro ASA | 16,215 | ||||||
|
| |||||||
South Korea — 1.0% |
| |||||||
| 9 | Samsung Electronics Co., Ltd. | 12,531 | ||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 71 | ||||||
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Spain — 1.2% |
| |||||||
| 17,799 | Bankia S.A. | 15,637 | ||||||
|
| |||||||
Sweden — 1.9% |
| |||||||
| 2,340 | Nordea Bank AB | 24,591 | ||||||
|
| |||||||
Switzerland — 4.6% |
| |||||||
| 181 | LafargeHolcim Ltd. (a) | 9,640 | ||||||
| 52 | Roche Holding AG | 11,988 | ||||||
| 230 | Wolseley plc | 11,913 | ||||||
| 102 | Zurich Insurance Group AG (a) | 26,727 | ||||||
|
| |||||||
| 60,268 | ||||||||
|
| |||||||
United Kingdom — 13.3% |
| |||||||
| 1,268 | Barratt Developments plc | 7,033 | ||||||
| 196 | British American Tobacco plc | 11,253 | ||||||
| 4,777 | Centrica plc | 12,513 | ||||||
| 1,326 | GlaxoSmithKline plc | 26,186 | ||||||
| 165 | InterContinental Hotels Group plc | 6,394 | ||||||
| 9,815 | Lloyds Banking Group plc | 6,854 | ||||||
| 992 | National Grid plc | 12,901 | ||||||
| 1,350 | Prudential plc | 22,029 | ||||||
| 720 | Rio Tinto plc | 25,051 | ||||||
| 1,810 | Standard Chartered plc (a) | 15,736 | ||||||
| 10,015 | Vodafone Group plc | 27,503 | ||||||
|
| |||||||
| 173,453 | ||||||||
|
| |||||||
United States — 1.2% |
| |||||||
| 286 | Shire plc | 16,134 | ||||||
|
| |||||||
Total Common Stocks | 1,298,912 | |||||||
|
| |||||||
| Short-Term Investment — 1.3% |
| ||||||
Investment Company — 1.3% |
| |||||||
| 16,805 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, | 16,805 | ||||||
|
| |||||||
Total Investments — 100.6% | 1,315,717 | |||||||
Liabilities in Excess of | (7,497 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,308,220 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 20.5 | % | ||
Oil, Gas & Consumable Fuels | 8.8 | |||
Insurance | 8.1 | |||
Automobiles | 6.5 | |||
Pharmaceuticals | 5.3 | |||
Metals & Mining | 5.1 | |||
Industrial Conglomerates | 4.0 | |||
Real Estate Management & Development | 3.4 | |||
Trading Companies & Distributors | 2.8 | |||
Diversified Telecommunication Services | 2.7 | |||
Auto Components | 2.5 | |||
Wireless Telecommunication Services | 2.1 | |||
Multi-Utilities | 1.9 | |||
Electric Utilities | 1.9 | |||
Electrical Equipment | 1.7 | |||
Building Products | 1.6 | |||
Airlines | 1.4 | |||
Construction Materials | 1.4 | |||
Paper & Forest Products | 1.4 | |||
Household Durables | 1.2 | |||
Biotechnology | 1.2 | |||
Equity Real Estate Investment Trusts (REITs) | 1.1 | |||
Chemicals | 1.1 | |||
Energy Equipment & Services | 1.1 | |||
Aerospace & Defense | 1.0 | |||
Beverages | 1.0 | |||
Technology Hardware, Storage & Peripherals | 1.0 | |||
Others (each less than 1.0%) | 6.9 | |||
Short-Term Investment | 1.3 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| 72 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Forward Foreign Currency Exchange Contracts | ||||||||||||||||||||||
| CONTRACTS TO BUY | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||
| 38,655 | HKD | |||||||||||||||||||||
| 4,438 | for EUR | Australia & New Zealand Banking Group Limited | 11/28/16 | $ | 4,877 | # | $ | 4,985 | # | $ | 108 | |||||||||||
| 713,157 | JPY | |||||||||||||||||||||
| 5,388 | for GBP | HSBC Bank, N.A. | 11/28/16 | 6,598 | # | 6,806 | # | 208 | ||||||||||||||
| 66,351 | AUD | Standard Chartered Bank | 11/28/16 | 50,609 | 50,439 | (170 | ) | |||||||||||||||
| 4,045 | CAD | Merrill Lynch International | 11/28/16 | 3,103 | 3,016 | (87 | ) | |||||||||||||||
| 25,504 | CHF | Credit Suisse International | 11/28/16 | 26,712 | 25,807 | (905 | ) | |||||||||||||||
| 2,544 | EUR | Australia & New Zealand Banking Group Limited | 11/28/16 | 2,866 | 2,796 | (70 | ) | |||||||||||||||
| 9,039 | EUR | Citibank, N.A. | 11/28/16 | 9,853 | 9,933 | 80 | ||||||||||||||||
| 17,414 | EUR | Deutsche Bank AG | 11/28/16 | 19,637 | 19,136 | (501 | ) | |||||||||||||||
| 4,661 | EUR | Standard Chartered Bank | 11/28/16 | 5,257 | 5,122 | (135 | ) | |||||||||||||||
| 3,256 | GBP | Australia & New Zealand Banking Group Limited | 11/28/16 | 3,985 | 3,988 | 3 | ||||||||||||||||
| 4,949 | GBP | Citibank, N.A. | 11/28/16 | 6,437 | 6,061 | (376 | ) | |||||||||||||||
| 3,278 | GBP | Deutsche Bank AG | 11/28/16 | 4,267 | 4,014 | (253 | ) | |||||||||||||||
| 11,427 | GBP | Goldman Sachs International | 11/28/16 | 14,327 | 13,993 | (334 | ) | |||||||||||||||
| 3,459 | GBP | Royal Bank of Canada | 11/28/16 | 4,524 | 4,236 | (288 | ) | |||||||||||||||
| 17,189 | GBP | Standard Chartered Bank | 11/28/16 | 22,869 | 21,050 | (1,819 | ) | |||||||||||||||
| 11,734 | HKD | State Street Corp. | 11/28/16 | 1,515 | 1,513 | (2 | ) | |||||||||||||||
| 529,183 | JPY | Citibank, N.A. | 11/28/16 | 5,083 | 5,050 | (33 | ) | |||||||||||||||
| 692,763 | JPY | Goldman Sachs International | 11/28/16 | 6,694 | 6,612 | (82 | ) | |||||||||||||||
| 536,481 | JPY | HSBC Bank, N.A. | 11/28/16 | 5,375 | 5,120 | (255 | ) | |||||||||||||||
| 1,063,297 | JPY | Standard Chartered Bank | 11/28/16 | 10,428 | 10,148 | (280 | ) | |||||||||||||||
| 118,422 | SEK | Merrill Lynch International | 11/28/16 | 14,255 | 13,126 | (1,129 | ) | |||||||||||||||
| 27,597 | SGD | State Street Corp. | 11/28/16 | 20,461 | 19,840 | (621 | ) | |||||||||||||||
| $ | 249,732 | $ | 242,791 | $ | (6,941 | ) | ||||||||||||||||
|
| |||||||||||||||||||||
| CONTRACTS TO SELL | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||
| 5,860 | AUD | Australia & New Zealand Banking Group Limited | 11/28/16 | $ | 4,425 | $ | 4,454 | $ | (29 | ) | ||||||||||||
| 18,045 | CAD | Morgan Stanley | 11/28/16 | 13,996 | 13,456 | 540 | ||||||||||||||||
| 8,116 | CHF | Australia & New Zealand Banking Group Limited | 11/28/16 | 8,354 | 8,212 | 142 | ||||||||||||||||
| 4,508 | CHF | State Street Corp. | 11/28/16 | 4,675 | 4,561 | 114 | ||||||||||||||||
| 3,147 | EUR | Australia & New Zealand Banking Group Limited | 11/28/16 | 3,545 | 3,458 | 87 | ||||||||||||||||
| 6,763 | EUR | BNP Paribas | 11/28/16 | 7,500 | 7,432 | 68 | ||||||||||||||||
| 5,927 | EUR | Citibank, N.A. | 11/28/16 | 6,628 | 6,513 | 115 | ||||||||||||||||
| 62,595 | EUR | Credit Suisse International | 11/28/16 | 71,297 | 68,785 | 2,512 | ||||||||||||||||
| 14,252 | EUR | HSBC Bank, N.A. | 11/28/16 | 16,020 | 15,661 | 359 | ||||||||||||||||
| 5,042 | EUR | Standard Chartered Bank | 11/28/16 | 5,692 | 5,541 | 151 | ||||||||||||||||
| 8,355 | EUR | State Street Corp. | 11/28/16 | 9,402 | 9,181 | 221 | ||||||||||||||||
| 5,428 | EUR | TD Bank Financial Group | 11/28/16 | 6,022 | 5,964 | 58 | ||||||||||||||||
| 13,039 | GBP | Citibank, N.A. | 11/28/16 | 17,011 | 15,968 | 1,043 | ||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 73 | ||||||
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| CONTRACTS TO SELL | CURRENCY | COUNTERPARTY | SETTLEMENT DATE | SETTLEMENT VALUE | VALUE AT OCTOBER 31, 2016 | NET UNREALIZED APPRECIATION (DEPRECIATION) | ||||||||||||||||
| 275,554 | JPY | Australia & New Zealand Banking Group Limited | 11/28/16 | $ | 2,657 | $ | 2,630 | $ | 27 | |||||||||||||
| 1,607,384 | JPY | Citibank, N.A. | 11/28/16 | 15,794 | 15,340 | 454 | ||||||||||||||||
| 503,685 | JPY | Goldman Sachs International | 11/28/16 | 4,981 | 4,807 | 174 | ||||||||||||||||
| 653,841 | JPY | Societe Generale | 11/28/16 | 6,415 | 6,240 | 175 | ||||||||||||||||
| 633,187 | JPY | Standard Chartered Bank | 11/28/16 | 6,246 | 6,043 | 203 | ||||||||||||||||
| 63,226 | NOK | Deutsche Bank AG | 11/28/16 | 7,699 | 7,653 | 46 | ||||||||||||||||
| 4,454 | SGD | Societe Generale | 11/28/16 | 3,244 | 3,202 | 42 | ||||||||||||||||
| $ | 221,603 | $ | 215,101 | $ | 6,502 | |||||||||||||||||
|
| |||||||||||||||||||||
| # | For cross-currency exchange contracts, the settlement value is the U.S. Dollar market value at October 31, 2016 of the currency being sold, and the value at October 31, 2016 is the U.S. Dollar market value of the currency being purchased. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 74 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
JPMorgan Intrepid International Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — 97.1% |
| ||||||
Australia — 6.7% |
| |||||||
| 952 | Australia & New Zealand Banking Group Ltd. | 20,100 | ||||||
| 1,197 | Bendigo & Adelaide Bank Ltd. | 10,111 | ||||||
| 1,599 | BHP Billiton Ltd. | 27,930 | ||||||
| 1,192 | Challenger Ltd. | 9,728 | ||||||
| 317 | Flight Centre Travel Group Ltd. | 8,139 | ||||||
| 1,859 | Fortescue Metals Group Ltd. | 7,800 | ||||||
| 2,253 | GPT Group (The) | 7,965 | ||||||
| 2,559 | Harvey Norman Holdings Ltd. | 9,801 | ||||||
| 997 | LendLease Group | 10,215 | ||||||
| 182 | Macquarie Group Ltd. | 11,021 | ||||||
| 6,966 | South32 Ltd. | 13,595 | ||||||
| 2,056 | Star Entertainment Grp Ltd. (The) | 7,779 | ||||||
| 1,049 | Westpac Banking Corp. | 24,248 | ||||||
| 551 | Woodside Petroleum Ltd. | 11,793 | ||||||
|
| |||||||
| 180,225 | ||||||||
|
| |||||||
Austria — 0.3% |
| |||||||
| 243 | Erste Group Bank AG | 7,635 | ||||||
|
| |||||||
Belgium — 1.0% |
| |||||||
| 91 | Anheuser-Busch InBev S.A./N.V. | 10,411 | ||||||
| 336 | bpost S.A. | 8,942 | ||||||
| 143 | KBC Group N.V. (a) | 8,695 | ||||||
|
| |||||||
| 28,048 | ||||||||
|
| |||||||
China — 0.3% |
| |||||||
| 11,939 | China Construction Bank Corp., Class H | 8,718 | ||||||
|
| |||||||
Denmark — 2.3% |
| |||||||
| 481 | Danske Bank A/S | 14,846 | ||||||
| 606 | Novo Nordisk A/S, Class B | 21,600 | ||||||
| 58 | Pandora A/S | 7,520 | ||||||
| 1,232 | TDC A/S (a) | 6,795 | ||||||
| 138 | Vestas Wind Systems A/S | 11,029 | ||||||
|
| |||||||
| 61,790 | ||||||||
|
| |||||||
Finland — 0.7% |
| |||||||
| 312 | Tieto OYJ | 8,556 | ||||||
| 486 | UPM-Kymmene OYJ | 11,307 | ||||||
|
| |||||||
| 19,863 | ||||||||
|
| |||||||
France — 11.3% |
| |||||||
| 704 | Altran Technologies S.A. | 10,051 | ||||||
| 90 | Arkema S.A. | 8,504 | ||||||
| 823 | AXA S.A. | 18,559 | ||||||
| 379 | BNP Paribas S.A. | 21,973 | ||||||
| 110 | Capgemini S.A. | 9,131 | ||||||
| 672 | Engie S.A. | 9,694 | ||||||
| 205 | Faurecia | 7,545 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
France — continued |
| |||||||
| 1,738 | Natixis S.A. | 8,792 | ||||||
| 102 | Nexans S.A. (a) | 5,818 | ||||||
| 732 | Orange S.A. | 11,522 | ||||||
| 358 | Peugeot S.A. (a) | 5,364 | ||||||
| 132 | Publicis Groupe S.A. | 9,055 | ||||||
| 108 | Renault S.A. | 9,407 | ||||||
| 154 | Safran S.A. | 10,569 | ||||||
| 335 | Sanofi | 26,098 | ||||||
| 250 | Schneider Electric SE | 16,826 | ||||||
| 359 | Societe Generale S.A. | 14,011 | ||||||
| 86 | Sodexo S.A. | 10,036 | ||||||
| 116 | Technip S.A. | 7,712 | ||||||
| 110 | Teleperformance | 11,647 | ||||||
| 121 | Thales S.A. | 11,357 | ||||||
| 665 | TOTAL S.A. | 31,833 | ||||||
| 202 | Valeo S.A. | 11,661 | ||||||
| 223 | Vinci S.A. | 16,139 | ||||||
|
| |||||||
| 303,304 | ||||||||
|
| |||||||
Germany — 7.5% |
| |||||||
| 149 | Allianz SE | 23,300 | ||||||
| 159 | Bayer AG | 15,780 | ||||||
| 135 | Bayerische Motoren Werke AG | 11,735 | ||||||
| 55 | Continental AG | 10,553 | ||||||
| 185 | Covestro AG (e) | 10,971 | ||||||
| 451 | Deutsche Telekom AG | 7,354 | ||||||
| 283 | Evonik Industries AG | 8,874 | ||||||
| 178 | Freenet AG | 5,092 | ||||||
| 127 | Fresenius Medical Care AG & Co. KGaA | 10,341 | ||||||
| 148 | Fresenius SE & Co. KGaA | 10,936 | ||||||
| 92 | Hannover Rueck SE | 10,244 | ||||||
| 128 | HeidelbergCement AG | 12,120 | ||||||
| 623 | Infineon Technologies AG | 11,201 | ||||||
| 99 | Merck KGaA | 10,149 | ||||||
| 132 | OSRAM Licht AG | 7,520 | ||||||
| 244 | Siemens AG | 27,674 | ||||||
| 180 | Zalando SE (a) (e) | 7,907 | ||||||
|
| |||||||
| 201,751 | ||||||||
|
| |||||||
Hong Kong — 3.4% |
| |||||||
| 2,991 | BOC Hong Kong Holdings Ltd. | 10,659 | ||||||
| 1,525 | Cheung Kong Property Holdings Ltd. | 11,270 | ||||||
| 2,988 | China Overseas Land & Investment Ltd. | 9,173 | ||||||
| 1,103 | CK Hutchison Holdings Ltd. | 13,614 | ||||||
| 7,978 | New World Development Co., Ltd. | 9,919 | ||||||
| 2,379 | Sands China Ltd. | 10,325 | ||||||
| 1,156 | Wharf Holdings Ltd. (The) | 8,667 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 75 | ||||||
Table of Contents
JPMorgan Intrepid International Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Hong Kong — continued |
| |||||||
| 1,319 | Wheelock & Co., Ltd. | 8,117 | ||||||
| 10,654 | Xinyi Glass Holdings Ltd. (a) | 9,161 | ||||||
|
| |||||||
| 90,905 | ||||||||
|
| |||||||
India — 0.4% |
| |||||||
| 139 | HDFC Bank Ltd., ADR | 9,822 | ||||||
|
| |||||||
Indonesia — 0.4% |
| |||||||
| 343 | Telekomunikasi Indonesia Persero Tbk PT, ADR | 11,138 | ||||||
|
| |||||||
Ireland — 0.3% |
| |||||||
| 109 | DCC plc | 8,847 | ||||||
|
| |||||||
Israel — 0.5% |
| |||||||
| 308 | Teva Pharmaceutical Industries Ltd., ADR | 13,153 | ||||||
|
| |||||||
Italy — 1.2% |
| |||||||
| 3,433 | Enel S.p.A. | 14,757 | ||||||
| 4,238 | Intesa Sanpaolo S.p.A. | 9,826 | ||||||
| 1,228 | Mediobanca S.p.A. | 8,997 | ||||||
|
| |||||||
| 33,580 | ||||||||
|
| |||||||
Japan — 23.9% |
| |||||||
| 613 | Amada Holdings Co., Ltd. | 6,986 | ||||||
| 1,344 | Asahi Glass Co., Ltd. | 9,400 | ||||||
| 945 | Astellas Pharma, Inc. | 14,027 | ||||||
| 358 | Bandai Namco Holdings, Inc. | 10,709 | ||||||
| 298 | Bridgestone Corp. | 11,115 | ||||||
| 73 | Central Japan Railway Co. | 12,328 | ||||||
| 1,868 | Concordia Financial Group Ltd. | 8,663 | ||||||
| 125 | FamilyMart UNY Holdings Co., Ltd. | 7,865 | ||||||
| 2,289 | Fuji Electric Co., Ltd. | 11,430 | ||||||
| 289 | Fuji Heavy Industries Ltd. | 11,281 | ||||||
| 121 | Hikari Tsushin, Inc. | 11,144 | ||||||
| 312 | Hitachi Chemical Co., Ltd. | 7,291 | ||||||
| 846 | Hitachi Metals Ltd. | 10,571 | ||||||
| 624 | Honda Motor Co., Ltd. | 18,680 | ||||||
| 242 | Hoya Corp. | 10,076 | ||||||
| 377 | Idemitsu Kosan Co., Ltd. | 8,657 | ||||||
| 702 | Isuzu Motors Ltd. | 8,682 | ||||||
| 920 | ITOCHU Corp. | 11,621 | ||||||
| 434 | Japan Tobacco, Inc. | 16,516 | ||||||
| 635 | KDDI Corp. | 19,309 | ||||||
| 211 | Koito Manufacturing Co., Ltd. | 11,083 | ||||||
| 667 | Kuraray Co., Ltd. | 10,118 | ||||||
| 198 | Matsumotokiyoshi Holdings Co., Ltd. | 10,190 | ||||||
| 667 | Mazda Motor Corp. | 11,065 | ||||||
| 579 | Mitsubishi Corp. | 12,598 | ||||||
| 981 | Mitsubishi Electric Corp. | 13,272 | ||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Japan — continued |
| |||||||
| 4,531 | Mitsubishi UFJ Financial Group, Inc. | 23,380 | ||||||
| 1,977 | Mitsubishi UFJ Lease & Finance Co., Ltd. | 9,573 | ||||||
| 420 | Mitsui Fudosan Co., Ltd. | 9,565 | ||||||
| 328 | Nippon Telegraph & Telephone Corp. | 14,551 | ||||||
| 80 | Nitori Holdings Co., Ltd. | 9,544 | ||||||
| 144 | Nitto Denko Corp. | 10,004 | ||||||
| 555 | NTT DOCOMO, Inc. | 13,936 | ||||||
| 1,020 | Obayashi Corp. | 9,827 | ||||||
| 775 | ORIX Corp. | 12,283 | ||||||
| 271 | Otsuka Holdings Co., Ltd. | 11,874 | ||||||
| 119 | Pola Orbis Holdings, Inc. | 9,919 | ||||||
| 152 | SCREEN Holdings Co., Ltd. | 10,426 | ||||||
| 793 | Sekisui Chemical Co., Ltd. | 12,495 | ||||||
| 182 | Shin-Etsu Chemical Co., Ltd. | 13,800 | ||||||
| 224 | Shionogi & Co., Ltd. | 11,046 | ||||||
| 148 | SoftBank Group Corp. | 9,302 | ||||||
| 359 | Sompo Holdings, Inc. | 11,603 | ||||||
| 380 | Sony Corp. | 11,980 | ||||||
| 2,110 | Sumitomo Chemical Co., Ltd. | 9,979 | ||||||
| 703 | Sumitomo Electric Industries Ltd. | 10,387 | ||||||
| 2,154 | Sumitomo Heavy Industries Ltd. | 11,340 | ||||||
| 491 | Sumitomo Mitsui Financial Group, Inc. | 17,017 | ||||||
| 268 | Sumitomo Mitsui Trust Holdings, Inc. | 9,043 | ||||||
| 697 | T&D Holdings, Inc. | 8,430 | ||||||
| 2,312 | Taiheiyo Cement Corp. | 6,621 | ||||||
| 1,198 | Taisei Corp. | 8,979 | ||||||
| 132 | Tokyo Electron Ltd. | 11,862 | ||||||
| 734 | Tokyo Tatemono Co., Ltd. | 9,319 | ||||||
| 348 | Toyota Motor Corp. | 20,181 | ||||||
| 340 | Yamaha Corp. | 12,130 | ||||||
|
| |||||||
| 645,073 | ||||||||
|
| |||||||
Luxembourg — 0.4% |
| |||||||
| 253 | APERAM S.A. | 11,487 | ||||||
|
| |||||||
Netherlands — 4.2% |
| |||||||
| 1,461 | Aegon N.V. | 6,320 | ||||||
| 1,532 | ING Groep N.V. | 20,112 | ||||||
| 605 | Koninklijke Ahold Delhaize N.V. | 13,791 | ||||||
| 360 | NN Group N.V. | 10,835 | ||||||
| 2,118 | Royal Dutch Shell plc, Class B | 54,632 | ||||||
| 1,499 | Steinhoff International Holdings N.V. | 7,984 | ||||||
|
| |||||||
| 113,674 | ||||||||
|
| |||||||
Norway — 1.1% |
| |||||||
| 828 | DNB ASA | 11,966 | ||||||
| 2,424 | Norsk Hydro ASA | 10,837 | ||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| 76 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Common Stocks — continued |
| ||||||
Norway — continued |
| |||||||
| 385 | Telenor ASA | 6,117 | ||||||
|
| |||||||
| 28,920 | ||||||||
|
| |||||||
Portugal — 0.2% |
| |||||||
| 1,940 | EDP — Energias de Portugal S.A. | 6,412 | ||||||
|
| |||||||
Singapore — 0.5% |
| |||||||
| 682 | DBS Group Holdings Ltd. | 7,355 | ||||||
| 216 | Jardine Cycle & Carriage Ltd. | 6,526 | ||||||
|
| |||||||
| 13,881 | ||||||||
|
| |||||||
South Korea — 0.4% |
| |||||||
| 203 | POSCO, ADR | 10,523 | ||||||
|
| |||||||
Spain — 2.1% |
| |||||||
| 279 | ACS Actividades de Construccion y Servicios S.A. | 8,527 | ||||||
| 243 | Amadeus IT Group S.A. | 11,450 | ||||||
| 468 | Gas Natural SDG S.A. | 9,214 | ||||||
| 2,219 | Iberdrola S.A. | 15,105 | ||||||
| 877 | Repsol S.A. | 12,242 | ||||||
|
| |||||||
| 56,538 | ||||||||
|
| |||||||
Sweden — 2.7% |
| |||||||
| 281 | Atlas Copco AB, Class A | 8,241 | ||||||
| 416 | Boliden AB | 9,641 | ||||||
| 645 | Castellum AB | 8,734 | ||||||
| 249 | Hexagon AB, Class B | 8,726 | ||||||
| 456 | Securitas AB, Class B | 7,045 | ||||||
| 525 | Swedbank AB, Class A | 12,288 | ||||||
| 218 | Swedish Match AB | 7,574 | ||||||
| 544 | Trelleborg AB, Class B, | 9,496 | ||||||
|
| |||||||
| 71,745 | ||||||||
|
| |||||||
Switzerland — 8.5% |
| |||||||
| 485 | ABB Ltd. (a) | 10,005 | ||||||
| 68 | Actelion Ltd. (a) | 9,821 | ||||||
| 158 | Adecco Group AG | 9,393 | ||||||
| 11 | Georg Fischer AG | 9,696 | ||||||
| 4,197 | Glencore plc (a) | 12,849 | ||||||
| 51 | Lonza Group AG (a) | 9,587 | ||||||
| 562 | Nestle S.A. | 40,778 | ||||||
| 391 | Novartis AG | 27,781 | ||||||
| 199 | Roche Holding AG | 45,759 | ||||||
| 2 | Sika AG | 10,925 | ||||||
| 37 | Swiss Life Holding AG (a) | 9,736 | ||||||
| 146 | Swiss Re AG | 13,592 | ||||||
| 1,277 | UBS Group AG | 18,056 | ||||||
|
| |||||||
| 227,978 | ||||||||
|
| |||||||
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
Taiwan — 0.5% |
| |||||||
| 395 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 12,275 | ||||||
|
| |||||||
United Kingdom — 15.3% |
| |||||||
| 1,350 | 3i Group plc | 11,067 | ||||||
| 1,124 | Ashmore Group plc | 4,829 | ||||||
| 1,697 | Aviva plc | 9,195 | ||||||
| 1,403 | Barratt Developments plc | 7,782 | ||||||
| 3,143 | Booker Group plc | 6,893 | ||||||
| 5,290 | BP plc | 31,271 | ||||||
| 597 | British American Tobacco plc | 34,198 | ||||||
| 2,474 | BT Group plc | 11,354 | ||||||
| 605 | Burberry Group plc | 10,912 | ||||||
| 1,493 | Carillion plc | 4,577 | ||||||
| 285 | Diageo plc | 7,598 | ||||||
| 1,605 | Direct Line Insurance Group plc | 6,791 | ||||||
| 489 | GlaxoSmithKline plc | 9,663 | ||||||
| 3,199 | HSBC Holdings plc | 24,094 | ||||||
| 404 | Imperial Brands plc | 19,559 | ||||||
| 211 | Intertek Group plc | 8,804 | ||||||
| 2,384 | ITV plc | 4,970 | ||||||
| 1,949 | J Sainsbury plc | 5,975 | ||||||
| 1,049 | John Wood Group plc | 9,859 | ||||||
| 15,297 | Lloyds Banking Group plc | 10,682 | ||||||
| 381 | Persimmon plc | 7,884 | ||||||
| 543 | Playtech plc | 6,164 | ||||||
| 1,036 | Prudential plc | 16,912 | ||||||
| 249 | Reckitt Benckiser Group plc | 22,316 | ||||||
| 604 | RELX N.V. | 10,186 | ||||||
| 673 | Rio Tinto plc | 23,408 | ||||||
| 1,229 | Segro plc | 6,583 | ||||||
| 1,005 | UBM plc | 8,823 | ||||||
| 808 | Unilever N.V., CVA | 33,777 | ||||||
| 8,168 | Vodafone Group plc | 22,431 | ||||||
| 631 | WPP plc | 13,697 | ||||||
|
| |||||||
| 412,254 | ||||||||
|
| |||||||
United States — 1.0% |
| |||||||
| 199 | Carnival plc | 9,592 | ||||||
| 322 | Shire plc | 18,196 | ||||||
|
| |||||||
| 27,788 | ||||||||
|
| |||||||
Total Common Stocks | 2,617,327 | |||||||
|
| |||||||
| Preferred Stock — 0.5% |
| ||||||
Germany — 0.5% |
| |||||||
| 97 | Henkel AG & Co. KGaA | 12,450 | ||||||
|
| |||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 77 | ||||||
Table of Contents
JPMorgan Intrepid International Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| SHARES | SECURITY DESCRIPTION | VALUE($) | ||||||
| Short-Term Investment — 2.1% |
| ||||||
Investment Company — 2.1% |
| |||||||
| 55,706 | JPMorgan U.S. Government Money Market Fund, Institutional Class Shares, 0.290% (b) (l) | 55,706 | ||||||
|
| |||||||
Total Investments — 99.7% | 2,685,483 | |||||||
Other Assets in Excess of | 8,831 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 2,694,314 | ||||||
|
| |||||||
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2016
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| INDUSTRY | PERCENTAGE | |||
Banks | 12.0 | % | ||
Pharmaceuticals | 7.7 | |||
Oil, Gas & Consumable Fuels | 5.6 | |||
Insurance | 5.4 | |||
Metals & Mining | 5.2 | |||
Automobiles | 3.6 | |||
Chemicals | 3.4 | |||
Real Estate Management & Development | 3.2 | |||
Tobacco | 2.9 | |||
Electrical Equipment | 2.8 | |||
Auto Components | 2.7 | |||
Wireless Telecommunication Services | 2.6 | |||
Diversified Telecommunication Services | 2.6 | |||
Industrial Conglomerates | 1.9 | |||
Household Durables | 1.8 | |||
Construction & Engineering | 1.8 | |||
Hotels, Restaurants & Leisure | 1.7 | |||
Semiconductors & Semiconductor Equipment | 1.7 | |||
Machinery | 1.7 | |||
Capital Markets | 1.7 | |||
Food & Staples Retailing | 1.7 | |||
Personal Products | 1.6 | |||
Food Products | 1.5 | |||
Professional Services | 1.5 | |||
IT Services | 1.5 | |||
Media | 1.4 | |||
Electric Utilities | 1.4 | |||
Household Products | 1.3 | |||
Diversified Financial Services | 1.2 | |||
Biotechnology | 1.0 | |||
Others (each less than 1.0%) | 11.8 | |||
Short-Term Investment | 2.1 | |||
SEE NOTES TO FINANCIAL STATEMENTS.
| 78 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
J.P. Morgan International Equity Funds
NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2016
| ADR | — American Depositary Receipt | |
| AUD | — Australian Dollar | |
| CAD | — Canadian Dollar | |
| CDI | — CHESS Depository Interest | |
| CHF | — Swiss Franc | |
| CVA | — Dutch Certification | |
| DKK | — Danish Krone | |
| EUR | — Euro | |
| FTSE | — Financial Times and the London Stock Exchange | |
| GBP | — British Pound | |
| GDR | — Global Depositary Receipt | |
| HKD | — Hong Kong Dollar | |
| JPY | — Japanese Yen | |
| MSCI | — Morgan Stanley Capital International | |
| NOK | — Norwegian Krone | |
| NVDR | — Non Voting Depositary Receipt | |
| SEK | — Swedish Krona | |
| SGD | — Singapore Dollar |
| TOPIX | — Tokyo Stock Price Index | |
| REIT | — Real Estate Investment Trust | |
| USD | — United States Dollar | |
| (a) | — Non-income producing security. | |
| (b) | — Investment in affiliate. Money market fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
| (e) | — Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Trustees and may be resold in transactions exempt from registration, normally to qualified institutional buyers. | |
| (g) | — Amount rounds to less than 0.05%. | |
| (h) | — Amount rounds to less than 500. | |
| (l) | — The rate shown is the current yield as of October 31, 2016. | |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 79 | ||||||
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2016
(Amounts in thousands, except per share amounts)
| Emerging Economies Fund | Emerging Markets Equity Fund | Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||
ASSETS: |
| |||||||||||||||
Investments in non-affiliates, at value | $ | 1,729,164 | $ | 3,051,304 | $ | 11,378 | $ | 6,866,836 | ||||||||
Investments in affiliates, at value | 36,972 | 91,254 | 282 | 17,326 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment securities, at value | 1,766,136 | 3,142,558 | 11,660 | 6,884,162 | ||||||||||||
Cash | 1,925 | 732 | 69 | 60 | ||||||||||||
Foreign currency, at value | 5,934 | 409 | 15 | 689 | ||||||||||||
Deposits at broker for futures contracts | 1,118 | — | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 6,792 | — | 8 | 36,991 | ||||||||||||
Fund shares sold | 460 | 5,311 | 13 | 5,212 | ||||||||||||
Dividends from non-affiliates | 823 | 540 | 8 | 9,976 | ||||||||||||
Dividends from affiliates | 7 | 21 | — | (a) | 5 | |||||||||||
Tax reclaims | 10 | — | — | 6,284 | ||||||||||||
Variation margin on futures contracts | 117 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 1,783,322 | 3,149,571 | 11,773 | 6,943,379 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: |
| |||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 1,085 | 15,635 | — | (a) | 31,600 | |||||||||||
Fund shares redeemed | 262 | 1,898 | — | (a) | 2,260 | |||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 1,108 | 1,916 | 113 | 385 | ||||||||||||
Administration fees | 7 | 1 | 1 | — | ||||||||||||
Distribution fees | 31 | 110 | 2 | — | (a) | |||||||||||
Shareholder servicing fees | 39 | 119 | 1 | 1,410 | ||||||||||||
Custodian and accounting fees | 103 | 291 | 9 | 102 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | (a) | — | (a) | 36 | |||||||||
Deferred India capital gains tax | 836 | 4,628 | — | — | ||||||||||||
Audit fees | 77 | 84 | 67 | 84 | ||||||||||||
Other | 62 | 311 | 4 | 196 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 3,610 | 24,993 | 197 | 36,073 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,779,712 | $ | 3,124,578 | $ | 11,576 | $ | 6,907,306 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 80 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Emerging Economies Fund | Emerging Markets Equity Fund | Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||
NET ASSETS: |
| |||||||||||||||
Paid-in-Capital | $ | 1,898,626 | $ | 2,825,379 | $ | 11,668 | $ | 6,558,300 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 21,844 | 19,088 | 15 | 125,863 | ||||||||||||
Accumulated net realized gains (losses) | (245,029 | ) | (112,458 | ) | (524 | ) | (323,451 | ) | ||||||||
Net unrealized appreciation (depreciation) | 104,271 | 392,569 | 417 | 546,594 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 1,779,712 | $ | 3,124,578 | $ | 11,576 | $ | 6,907,306 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
| |||||||||||||||
Class A | $ | 148,331 | $ | 411,713 | $ | 8,291 | $ | 20 | ||||||||
Class C | 2,448 | 39,568 | 94 | 20 | ||||||||||||
Class R2 | — | — | — | 20 | ||||||||||||
Class R5 | 1,602 | 20 | 19 | — | ||||||||||||
Class R6 | 1,573,822 | 1,980,671 | 24 | — | ||||||||||||
Institutional Class | — | 390,647 | — | — | ||||||||||||
Select Class | 53,509 | 301,959 | 3,148 | 6,907,246 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,779,712 | $ | 3,124,578 | $ | 11,576 | $ | 6,907,306 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) |
| |||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 12,844 | 18,891 | 616 | 1 | ||||||||||||
Class C | 215 | 1,868 | 7 | 1 | ||||||||||||
Class R2 | — | — | — | 1 | ||||||||||||
Class R5 | 136 | 1 | 1 | — | ||||||||||||
Class R6 | 135,260 | 88,190 | 2 | — | ||||||||||||
Institutional Class | — | 17,374 | — | — | ||||||||||||
Select Class | 4,581 | 13,524 | 233 | 376,003 | ||||||||||||
Net Asset Value (a): | ||||||||||||||||
Class A — Redemption price per share | $ | 11.55 | $ | 21.79 | $ | 13.46 | $ | 18.45 | ||||||||
Class C — Offering price per share (b) | 11.41 | 21.18 | 13.44 | 18.46 | ||||||||||||
Class R2 — Offering and redemption price per share | — | — | — | 18.46 | ||||||||||||
Class R5 — Offering and redemption price per share | 11.78 | 22.49 | 13.51 | — | ||||||||||||
Class R6 — Offering and redemption price per share | 11.64 | 22.46 | 13.52 | — | ||||||||||||
Institutional Class — Offering and redemption price per share | — | 22.49 | — | — | ||||||||||||
Select Class — Offering and redemption price per share | 11.68 | 22.33 | 13.51 | 18.37 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 12.19 | $ | 23.00 | $ | 14.21 | $ | 19.47 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 1,623,811 | $ | 2,654,117 | $ | 10,961 | $ | 6,319,695 | ||||||||
Cost of investments in affiliates | 36,972 | 91,254 | 282 | 17,326 | ||||||||||||
Cost of foreign currency | 5,936 | 411 | 15 | 692 | ||||||||||||
| (a) | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
| (b) | Redemption price for Class C Shares varies based upon length of time the shares are held. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 81 | ||||||
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands, except per share amounts)
| Global Unconstrained Equity Fund | International Equity Fund | International Equity Income Fund | International Opportunities Fund | |||||||||||||
ASSETS: |
| |||||||||||||||
Investments in non-affiliates, at value | $ | 1,648 | $ | 3,374,911 | $ | 131,015 | $ | 2,681,243 | ||||||||
Investments in affiliates, at value | — | 36,620 | 2,567 | 72,806 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment securities, at value | 1,648 | 3,411,531 | 133,582 | 2,754,049 | ||||||||||||
Cash | 115 | 50 | 20 | 50 | ||||||||||||
Foreign currency, at value | 1 | 1,204 | 87 | 2,334 | ||||||||||||
Deposits at broker for futures contracts | — | — | — | 4,781 | ||||||||||||
Due from custodian | — | — | — | 2,550 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 20 | 6,133 | — | — | ||||||||||||
Fund shares sold | — | 329 | 694 | 352 | ||||||||||||
Dividends from non-affiliates | 2 | 7,974 | 264 | 5,363 | ||||||||||||
Dividends from affiliates | — | (a) | 7 | 1 | 13 | |||||||||||
Tax reclaims | 15 | 3,549 | 137 | 2,094 | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | — | 3 | 17,384 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 1,801 | 3,430,777 | 134,788 | 2,788,970 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: |
| |||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 35 | 2,884 | 1 | 2,563 | ||||||||||||
Fund shares redeemed | — | 728 | 273 | 300 | ||||||||||||
Variation margin on futures contracts | — | — | — | 186 | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | — | — | 116 | 14,045 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 8 | 2,104 | 60 | 1,411 | ||||||||||||
Administration fees | — | 90 | — | 191 | ||||||||||||
Distribution fees | — | (a) | 60 | 22 | 36 | |||||||||||
Shareholder servicing fees | — | (a) | 58 | 10 | 103 | |||||||||||
Custodian and accounting fees | 8 | 81 | 18 | 65 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | 7 | — | (a) | 4 | |||||||||||
Audit fees | 76 | 105 | 81 | 83 | ||||||||||||
Other | 2 | 194 | 52 | 113 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 129 | 6,311 | 633 | 19,100 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,672 | $ | 3,424,466 | $ | 134,155 | $ | 2,769,870 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 82 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Global Unconstrained Equity Fund | International Equity Fund | International Equity Income Fund | International Opportunities Fund | |||||||||||||
NET ASSETS: |
| |||||||||||||||
Paid-in-Capital | $ | 1,730 | $ | 3,293,066 | $ | 140,261 | $ | 2,737,818 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | (5 | ) | 4,945 | 248 | 84,841 | |||||||||||
Accumulated net realized gains (losses) | (52 | ) | (45,502 | ) | (10,539 | ) | (119,423 | ) | ||||||||
Net unrealized appreciation (depreciation) | (1 | ) | 171,957 | 4,185 | 66,634 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 1,672 | $ | 3,424,466 | $ | 134,155 | $ | 2,769,870 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
| |||||||||||||||
Class A | $ | 417 | $ | 216,932 | $ | 66,722 | $ | 171,940 | ||||||||
Class C | 210 | 22,235 | 11,754 | 1,565 | ||||||||||||
Class R2 | 18 | 1,461 | 316 | — | ||||||||||||
Class R5 | 18 | 58,836 | 700 | — | ||||||||||||
Class R6 | 18 | 3,030,640 | 21 | 2,522,883 | ||||||||||||
Institutional Class | — | — | — | 49,483 | ||||||||||||
Select Class | 991 | 94,362 | 54,642 | 23,999 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,672 | $ | 3,424,466 | $ | 134,155 | $ | 2,769,870 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) |
| |||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 30 | 15,230 | 4,639 | 12,482 | ||||||||||||
Class C | 15 | 1,647 | 822 | 118 | ||||||||||||
Class R2 | 2 | 103 | 22 | — | ||||||||||||
Class R5 | 1 | 4,067 | 49 | — | ||||||||||||
Class R6 | 1 | 209,532 | 1 | 179,589 | ||||||||||||
Institutional Class | — | — | — | 3,521 | ||||||||||||
Select Class | 70 | 6,532 | 3,791 | 1,715 | ||||||||||||
Net Asset Value (a): | ||||||||||||||||
Class A — Redemption price per share | $ | 14.12 | $ | 14.24 | $ | 14.38 | $ | 13.77 | ||||||||
Class C — Offering price per share (b) | 14.02 | 13.50 | 14.30 | 13.30 | ||||||||||||
Class R2 — Offering and redemption price per share | 14.24 | 14.17 | 14.36 | — | ||||||||||||
Class R5 — Offering and redemption price per share | 14.24 | 14.47 | 14.42 | — | ||||||||||||
Class R6 — Offering and redemption price per share | 14.23 | 14.46 | 14.41 | 14.05 | ||||||||||||
Institutional Class — Offering and redemption price per share | — | — | — | 14.05 | ||||||||||||
Select Class — Offering and redemption price per share | 14.23 | 14.45 | 14.41 | 14.00 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 14.90 | $ | 15.03 | $ | 15.18 | $ | 14.53 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 1,649 | $ | 3,202,583 | $ | 126,706 | $ | 2,618,020 | ||||||||
Cost of investments in affiliates | — | 36,620 | 2,567 | 72,806 | ||||||||||||
Cost of foreign currency | 1 | 1,203 | 87 | 2,338 | ||||||||||||
| (a) | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
| (b) | Redemption price for Class C Shares varies based upon length of time the shares are held. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 83 | ||||||
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2016 (continued)
(Amounts in thousands, except per share amounts)
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | International Value Fund | Intrepid International Fund | |||||||||||||
ASSETS: |
| |||||||||||||||
Investments in non-affiliates, at value | $ | 1,293,063 | $ | 107,828 | $ | 1,298,912 | $ | 2,629,777 | ||||||||
Investments in affiliates, at value | 32,949 | 2,047 | 16,805 | 55,706 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment securities, at value | 1,326,012 | 109,875 | 1,315,717 | 2,685,483 | ||||||||||||
Cash | 35 | 50 | 47 | 50 | ||||||||||||
Foreign currency, at value | 1,342 | 38 | 125 | 819 | ||||||||||||
Deposits at broker for futures contracts | 1,244 | — | — | — | ||||||||||||
Due from custodian | 2,057 | 105 | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | 1 | — | — | ||||||||||||
Fund shares sold | 2,053 | 109 | 4,422 | 188 | ||||||||||||
Dividends from non-affiliates | 3,177 | 79 | 3,355 | 7,410 | ||||||||||||
Dividends from affiliates | 10 | 1 | 2 | 12 | ||||||||||||
Tax reclaims | 2,292 | 53 | 2,026 | 2,595 | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | — | 6,930 | — | ||||||||||||
Due from Adviser | 2 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 1,338,224 | 110,311 | 1,332,624 | 2,696,557 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: |
| |||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 2,067 | 293 | 1 | 12 | ||||||||||||
Fund shares redeemed | 391 | 63 | 14,965 | 291 | ||||||||||||
Variation margin on futures contracts | 61 | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | — | — | 7,369 | — | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | — | 52 | 676 | 1,366 | ||||||||||||
Administration fees | — | — | 91 | 185 | ||||||||||||
Distribution fees | 28 | 6 | 140 | 36 | ||||||||||||
Shareholder servicing fees | 226 | 2 | 207 | 67 | ||||||||||||
Custodian and accounting fees | 36 | 10 | 57 | 79 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | (a) | 2 | 3 | ||||||||||
Sub-transfer agency fees | 80 | 3 | �� | 657 | 68 | |||||||||||
Audit fees | 76 | 77 | 79 | 80 | ||||||||||||
Other | 48 | 30 | 160 | 56 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 3,013 | 536 | 24,404 | 2,243 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,335,211 | $ | 109,775 | $ | 1,308,220 | $ | 2,694,314 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 84 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | International Value Fund | Intrepid International Fund | |||||||||||||
NET ASSETS: |
| |||||||||||||||
Paid-in-Capital | $ | 1,297,834 | $ | 111,868 | $ | 1,669,370 | $ | 2,950,565 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 28,549 | 2,550 | 57,698 | 60,413 | ||||||||||||
Accumulated net realized gains (losses) | (13,336 | ) | (5,095 | ) | (383,388 | ) | (302,873 | ) | ||||||||
Net unrealized appreciation (depreciation) | 22,164 | 452 | (35,460 | ) | (13,791 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 1,335,211 | $ | 109,775 | $ | 1,308,220 | $ | 2,694,314 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
| |||||||||||||||
Class A | $ | 69,626 | $ | 14,034 | $ | 573,449 | $ | 164,327 | ||||||||
Class C | 13,507 | 4,626 | 24,453 | 2,287 | ||||||||||||
Class R2 | 10,222 | 20 | 1,182 | 503 | ||||||||||||
Class R5 | — | 20 | 20 | — | ||||||||||||
Class R6 | — | 81,146 | 27,998 | 2,487,086 | ||||||||||||
Institutional Class | — | — | 523,251 | 23,748 | ||||||||||||
Select Class | 1,241,856 | 9,929 | 157,867 | 16,363 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,335,211 | $ | 109,775 | $ | 1,308,220 | $ | 2,694,314 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) |
| |||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 4,479 | 814 | 46,886 | 8,912 | ||||||||||||
Class C | 908 | 272 | 2,059 | 123 | ||||||||||||
Class R2 | 673 | 1 | 98 | 28 | ||||||||||||
Class R5 | — | 1 | 2 | — | ||||||||||||
Class R6 | — | 4,651 | 2,238 | 131,521 | ||||||||||||
Institutional Class | — | — | 41,848 | 1,236 | ||||||||||||
Select Class | 79,195 | 569 | 12,556 | 852 | ||||||||||||
Net Asset Value (a): | ||||||||||||||||
Class A — Redemption price per share | $ | 15.54 | $ | 17.24 | $ | 12.23 | $ | 18.44 | ||||||||
Class C — Offering price per share (b) | 14.88 | 17.04 | 11.88 | 18.57 | ||||||||||||
Class R2 — Offering and redemption price per share | 15.19 | 17.21 | 12.04 | 18.29 | ||||||||||||
Class R5 — Offering and redemption price per share | — | 17.44 | 12.51 | — | ||||||||||||
Class R6 — Offering and redemption price per share | — | 17.45 | 12.51 | 18.91 | ||||||||||||
Institutional Class — Offering and redemption price per share | — | — | 12.50 | 19.22 | ||||||||||||
Select Class — Offering and redemption price per share | 15.68 | 17.45 | 12.57 | 19.20 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 16.40 | $ | 18.20 | $ | 12.91 | $ | 19.46 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 1,271,324 | $ | 107,374 | $ | 1,333,584 | $ | 2,643,215 | ||||||||
Cost of investments in affiliates | 32,949 | 2,047 | 16,805 | 55,706 | ||||||||||||
Cost of foreign currency | 1,354 | 38 | 125 | 826 | ||||||||||||
| (a) | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
| (b) | Redemption price for Class C Shares varies based upon length of time the shares are held. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 85 | ||||||
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2016
(Amounts in thousands)
| Emerging Economies Fund | Emerging Markets Equity Fund | Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||
INVESTMENT INCOME: |
| |||||||||||||||
Interest income from non-affiliates | $ | — | $ | — | $ | — | $ | 9 | ||||||||
Interest income from affiliates | 6 | 3 | — | — | (a) | |||||||||||
Dividend income from non-affiliates | 40,648 | 48,831 | 243 | 183,964 | ||||||||||||
Dividend income from affiliates | 108 | 222 | 1 | 123 | ||||||||||||
Foreign taxes withheld | (3,676 | ) | (3,328 | ) | (25 | ) | (8,460 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 37,086 | 45,728 | 219 | 175,636 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: |
| |||||||||||||||
Investment advisory fees | 11,693 | 22,326 | 48 | 13,872 | ||||||||||||
Administration fees | 1,042 | 1,982 | 4 | 5,688 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 166 | 747 | 5 | — | (a) | |||||||||||
Class C | 21 | 291 | — | (a) | — | (a) | ||||||||||
Class R2 | — | — | — | — | (a) | |||||||||||
Shareholder servicing fees: | ||||||||||||||||
Class A | 166 | 747 | 5 | — | (a) | |||||||||||
Class C | 7 | 97 | — | (a) | — | (a) | ||||||||||
Class R2 | — | — | — | — | (a) | |||||||||||
Class R5 (b) | 3 | — | (a) | — | (a) | — | ||||||||||
Institutional Class | — | 305 | — | — | ||||||||||||
Select Class | 137 | 700 | 7 | 17,340 | ||||||||||||
Custodian and accounting fees | 852 | 1,465 | 50 | 638 | ||||||||||||
Interest expense to affiliates | 1 | — | — | 12 | ||||||||||||
Professional fees | 110 | 127 | 64 | 149 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 18 | 26 | 15 | 71 | ||||||||||||
Printing and mailing costs | 49 | 74 | 3 | 156 | ||||||||||||
Registration and filing fees | 92 | 137 | 61 | 162 | ||||||||||||
Transfer agency fees (See Note 2.J.) | 23 | 114 | 3 | 65 | ||||||||||||
Sub-transfer agency fees (See Note 2.J.) | 102 | 839 | — | 105 | ||||||||||||
Offering costs | — | — | 15 | — | ||||||||||||
Other | 24 | 41 | 7 | 81 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 14,506 | 30,018 | 287 | 38,339 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (2,073 | ) | (4,332 | ) | (53 | ) | (14,867 | ) | ||||||||
Less expense reimbursements | (5 | ) | (3 | ) | (166 | ) | (1 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 12,428 | 25,683 | 68 | 23,471 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 24,658 | 20,045 | 151 | 152,165 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: |
| |||||||||||||||
Investments in non-affiliates | (63,142 | ) | (69,913 | ) | (291 | ) | (233,812 | ) | ||||||||
Futures | 3,290 | 1,258 | (105 | ) | 11,473 | |||||||||||
Foreign currency transactions | 323 | (186 | ) | (7 | ) | 77 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (59,529 | ) | (68,841 | ) | (403 | ) | (222,262 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: |
| |||||||||||||||
Investments in non-affiliates | 132,358 | (c) | 346,960 | (d) | 811 | 127,187 | ||||||||||
Futures | 697 | — | — | (10,589 | ) | |||||||||||
Foreign currency translations | 51 | 19 | — | (a) | (204 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | 133,106 | 346,979 | 811 | 116,394 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | 73,577 | 278,138 | 408 | (105,868 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | 98,235 | $ | 298,183 | $ | 559 | $ | 46,297 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
| (b) | Commencement of offering of class of shares effective September 9, 2016, for Emerging Markets Equity Fund. |
| (c) | Net of change in India capital gains tax of approximately $(867,000) for Emerging Economies Fund. |
| (d) | Net of change in India capital gains tax of approximately $(4,226,000) for Emerging Markets Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 86 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Global Unconstrained Equity Fund | International Equity Fund | International Equity Income Fund | International Opportunities Fund | |||||||||||||
INVESTMENT INCOME: |
| |||||||||||||||
Interest income from non-affiliates | $ | — | (a) | $ | — | (a) | $ | 1 | $ | 1 | ||||||
Interest income from affiliates | — | 1 | 2 | 1 | ||||||||||||
Dividend income from non-affiliates | 467 | 98,535 | 5,141 | 83,132 | ||||||||||||
Dividend income from affiliates | 4 | 250 | 12 | 161 | ||||||||||||
Foreign taxes withheld | (18 | ) | (7,108 | ) | (375 | ) | (5,783 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 453 | 91,678 | 4,781 | 77,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: |
| |||||||||||||||
Investment advisory fees | 122 | 25,684 | 794 | 15,502 | ||||||||||||
Administration fees | 14 | 2,633 | 93 | 2,119 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 36 | 564 | 166 | 431 | ||||||||||||
Class C | 2 | 182 | 79 | 11 | ||||||||||||
Class R2 | — | (a) | 7 | 1 | — | |||||||||||
Shareholder servicing fees: | ||||||||||||||||
Class A | 36 | 564 | 166 | 431 | ||||||||||||
Class C | 1 | 61 | 26 | 4 | ||||||||||||
Class R2 | — | (a) | 3 | — | (a) | — | ||||||||||
Class R5 | — | (a) | 28 | — | (a) | — | ||||||||||
Institutional Class | — | — | — | 51 | ||||||||||||
Select Class | 7 | 301 | 90 | 61 | ||||||||||||
Custodian and accounting fees | 55 | 497 | 77 | 367 | ||||||||||||
Interest expense to affiliates | — | (a) | 4 | — | (a) | 3 | ||||||||||
Professional fees | 74 | 165 | 81 | 129 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 15 | 32 | 15 | 26 | ||||||||||||
Printing and mailing costs | 15 | 125 | 21 | 68 | ||||||||||||
Registration and filing fees | 60 | 128 | 59 | 103 | ||||||||||||
Transfer agency fees (See Note 2.J.) | 6 | 76 | 13 | 45 | ||||||||||||
Sub-transfer agency fees (See Note 2.J.) | 18 | 290 | 55 | 142 | ||||||||||||
Other | 6 | 51 | 10 | 42 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 467 | 31,395 | 1,746 | 19,535 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (136 | ) | (3,809 | ) | �� | (406 | ) | (96 | ) | |||||||
Less expense reimbursements | (212 | ) | (7 | ) | (2 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 119 | 27,579 | 1,338 | 19,439 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 334 | 64,099 | 3,443 | 58,073 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: |
| |||||||||||||||
Investments in non-affiliates | 5,419 | (20,832 | ) | (9,325 | ) | (85,077 | ) | |||||||||
Futures | 228 | — | — | 8,069 | ||||||||||||
Foreign currency transactions | 135 | (1,457 | ) | 154 | 29,185 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 5,782 | (22,289 | ) | (9,171 | ) | (47,823 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: |
| |||||||||||||||
Investments in non-affiliates | (108 | ) | (25,699 | ) | 1,540 | (81,776 | ) | |||||||||
Futures | — | — | — | 386 | ||||||||||||
Foreign currency translations | — | (a) | 54 | (117 | ) | 3,972 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | (108 | ) | (25,645 | ) | 1,423 | (77,418 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | 5,674 | (47,934 | ) | (7,748 | ) | (125,241 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | 6,008 | $ | 16,165 | $ | (4,305 | ) | $ | (67,168 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 87 | ||||||
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2016 (continued)
(Amounts in thousands)
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | International Value Fund | Intrepid International Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from non-affiliates | $ | 7 | $ | — | (a) | $ | — | (a) | $ | 10 | ||||||
Interest income from affiliates | 1 | — | (a) | — | 1 | |||||||||||
Dividend income from non-affiliates | 38,381 | 2,423 | 69,083 | 88,941 | ||||||||||||
Dividend income from affiliates | 116 | 9 | 62 | 155 | ||||||||||||
Foreign taxes withheld | (2,933 | ) | (203 | ) | (5,984 | ) | (7,037 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 35,572 | 2,229 | 63,161 | 82,070 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 2,151 | 640 | 11,292 | 14,659 | ||||||||||||
Administration fees | 882 | 75 | 1,544 | 2,003 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 180 | 26 | 1,580 | 418 | ||||||||||||
Class C | 115 | 33 | 207 | 19 | ||||||||||||
Class R2 | 28 | — | (a) | 8 | 2 | |||||||||||
Shareholder servicing fees: | ||||||||||||||||
Class A | 180 | 26 | 1,580 | 418 | ||||||||||||
Class C | 38 | 11 | 69 | 7 | ||||||||||||
Class R2 | 14 | — | (a) | 4 | 1 | |||||||||||
Class R5 (b) | — | — | (a) | — | (a) | — | ||||||||||
Institutional Class | — | — | 1,011 | 31 | ||||||||||||
Select Class | 2,457 | 26 | 485 | 44 | ||||||||||||
Custodian and accounting fees | 189 | 66 | 223 | 426 | ||||||||||||
Interest expense to affiliates | 3 | — | (a) | 6 | 5 | |||||||||||
Professional fees | 143 | 71 | 131 | 142 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 18 | 15 | 20 | 25 | ||||||||||||
Printing and mailing costs | 65 | 7 | 226 | 58 | ||||||||||||
Registration and filing fees | 75 | 46 | 162 | 91 | ||||||||||||
Transfer agency fees (See Note 2.J.) | 58 | 13 | 52 | 36 | ||||||||||||
Sub-transfer agency fees (See Note 2.J.) | 250 | 12 | 2,175 | 135 | ||||||||||||
Other | 21 | 8 | 32 | 39 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 6,867 | 1,075 | 20,807 | 18,559 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (2,836 | ) | (283 | ) | (547 | ) | (187 | ) | ||||||||
Less expense reimbursements | — | (a) | (1 | ) | (5 | ) | (1 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 4,031 | 791 | 20,255 | 18,371 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 31,541 | 1,438 | 42,906 | 63,699 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in non-affiliates | (11,238 | )(c) | (4,273 | ) | (54,223 | ) | (12,802 | ) | ||||||||
Futures | 3,623 | — | 1,684 | — | ||||||||||||
Foreign currency transactions | (110 | ) | 1,164 | 17,781 | 513 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (7,725 | ) | (3,109 | ) | (34,758 | ) | (12,289 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||
Investments in non-affiliates | (36,153 | ) | 2,170 | (140,646 | ) | (67,533 | ) | |||||||||
Futures | 310 | — | — | — | ||||||||||||
Foreign currency translations | (51 | ) | (1 | ) | (2,092 | ) | (214 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | (35,894 | ) | 2,169 | (142,738 | ) | (67,747 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | (43,619 | ) | (940 | ) | (177,496 | ) | (80,036 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | (12,078 | ) | $ | 498 | $ | (134,590 | ) | $ | (16,337 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
| (b) | Commencement of offering of class of shares effective September 9, 2016, for International Value Fund. |
| (c) | Net of India capital gains tax of approximately $2,000 for International Research Enhanced Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 88 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
| Emerging Economies Fund | Emerging Markets Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 24,658 | $ | 14,254 | $ | 20,045 | $ | 19,330 | ||||||||
Net realized gain (loss) | (59,529 | ) | (84,340 | ) | (68,841 | ) | (27,573 | ) | ||||||||
Change in net unrealized appreciation/depreciation | 133,106 | (71,084 | ) | 346,979 | (380,760 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 98,235 | (141,170 | ) | 298,183 | (389,003 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (378 | ) | (1,309 | ) | (1,590 | ) | (2,876 | ) | ||||||||
Class B (a) | ||||||||||||||||
From net investment income | — | — | — | (3 | ) | |||||||||||
Class C | ||||||||||||||||
From net investment income | (1 | ) | (54 | ) | — | (188 | ) | |||||||||
Class R5 (b) | ||||||||||||||||
From net investment income | — | (17,780 | ) | — | — | |||||||||||
Class R6 (c) | ||||||||||||||||
From net investment income | (12,736 | ) | — | (13,982 | ) | (14,467 | ) | |||||||||
Institutional Class | ||||||||||||||||
From net investment income | — | — | (2,796 | ) | (4,060 | ) | ||||||||||
Select Class | ||||||||||||||||
From net investment income | (168 | ) | (4,910 | ) | (1,894 | ) | (5,672 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (13,283 | ) | (24,053 | ) | (20,262 | ) | (27,266 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | 593,917 | 39,393 | 580,806 | 147,146 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | 678,869 | (125,830 | ) | 858,727 | (269,123 | ) | ||||||||||
Beginning of period | 1,100,843 | 1,226,673 | 2,265,851 | 2,534,974 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,779,712 | $ | 1,100,843 | $ | 3,124,578 | $ | 2,265,851 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 21,844 | $ | 10,066 | $ | 19,088 | $ | 19,491 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Commencement of offering of class of shares effective September 9, 2016, for Emerging Markets Equity Fund. |
| (c) | Commencement of offering of class of shares effective September 1, 2015, for Emerging Economies Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 89 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||||
| Year Ended October 31, 2016 | Period Ended October 31, 2015 (a) | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 151 | $ | 101 | $ | 152,165 | $ | 126,380 | ||||||||
Net realized gain (loss) | (403 | ) | (129 | ) | (222,262 | ) | (89,014 | ) | ||||||||
Change in net unrealized appreciation/depreciation | 811 | (394 | ) | 116,394 | 101,877 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 559 | (422 | ) | 46,297 | 139,243 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (85 | ) | (2 | ) | — | (b) | (1 | ) | ||||||||
From net realized gains | — | — | — | (1 | ) | |||||||||||
Class C | ||||||||||||||||
From net investment income | (1 | ) | (1 | ) | — | — | (b) | |||||||||
From net realized gains | — | — | — | (1 | ) | |||||||||||
Class R2 | ||||||||||||||||
From net investment income | — | — | — | (b) | — | (b) | ||||||||||
From net realized gains | — | — | — | (1 | ) | |||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | (b) | — | (b) | — | — | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | (1 | ) | (1 | ) | — | — | ||||||||||
Select Class | ||||||||||||||||
From net investment income | (54 | ) | (84 | ) | (138,054 | ) | (71,222 | ) | ||||||||
From net realized gains | — | — | — | (47,876 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (141 | ) | (88 | ) | (138,054 | ) | (119,102 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | 8,465 | 3,203 | (416,215 | ) | 3,817,424 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | 8,883 | 2,693 | (507,972 | ) | 3,837,565 | |||||||||||
Beginning of period | 2,693 | — | 7,415,278 | 3,577,713 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 11,576 | $ | 2,693 | $ | 6,907,306 | $ | 7,415,278 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 15 | $ | 12 | $ | 125,863 | $ | 112,183 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Commencement of operations was December 12, 2014. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 90 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Global Unconstrained Equity Fund | International Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 334 | $ | 38 | $ | 64,099 | $ | 52,700 | ||||||||
Net realized gain (loss) | 5,782 | 482 | (22,289 | ) | (11,664 | ) | ||||||||||
Change in net unrealized appreciation/depreciation | (108 | ) | (275 | ) | (25,645 | ) | (93,907 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 6,008 | 245 | 16,165 | (52,871 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (443 | ) | (2 | ) | (3,550 | ) | (3,160 | ) | ||||||||
From net realized gains | (5,070 | ) | (24 | ) | — | — | ||||||||||
Return of capital | (841 | ) | — | — | — | |||||||||||
Class B (a) | ||||||||||||||||
From net investment income | — | — | — | (1 | ) | |||||||||||
Class C | ||||||||||||||||
From net investment income | (4 | ) | (2 | ) | (328 | ) | (332 | ) | ||||||||
From net realized gains | (7 | ) | (36 | ) | — | — | ||||||||||
Return of capital | (17 | ) | — | — | — | |||||||||||
Class R2 | ||||||||||||||||
From net investment income | — | (b) | (1 | ) | (21 | ) | (13 | ) | ||||||||
From net realized gains | (1 | ) | (16 | ) | — | — | ||||||||||
Return of capital | (1 | ) | — | — | — | |||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | (b) | (2 | ) | (1,103 | ) | (1,256 | ) | ||||||||
From net realized gains | — | (b) | (16 | ) | — | — | ||||||||||
Return of capital | (1 | ) | — | — | — | |||||||||||
Class R6 | ||||||||||||||||
From net investment income | — | (b) | (2 | ) | (57,230 | ) | (36,053 | ) | ||||||||
From net realized gains | — | (b) | (16 | ) | — | — | ||||||||||
Return of capital | (1 | ) | — | — | — | |||||||||||
Select Class | ||||||||||||||||
From net investment income | (78 | ) | (89 | ) | (2,129 | ) | (8,468 | ) | ||||||||
From net realized gains | (590 | ) | (887 | ) | — | — | ||||||||||
Return of capital | (169 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (7,223 | ) | (1,093 | ) | (64,361 | ) | (49,283 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | 1,246 | (2,043 | ) | 550,039 | 537,987 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | 31 | (2,891 | ) | 501,843 | 435,833 | |||||||||||
Beginning of period | 1,641 | 4,532 | 2,922,623 | 2,486,790 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,672 | $ | 1,641 | $ | 3,424,466 | $ | 2,922,623 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | (5 | ) | $ | 12 | $ | 4,945 | $ | 6,664 | |||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 91 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| International Equity Income Fund | International Opportunities Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 3,443 | $ | 2,671 | $ | 58,073 | $ | 32,441 | ||||||||
Net realized gain (loss) | (9,171 | ) | 1,803 | (47,823 | ) | (49,185 | ) | |||||||||
Change in net unrealized appreciation/depreciation | 1,423 | (6,667 | ) | (77,418 | ) | 27,406 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (4,305 | ) | (2,193 | ) | (67,168 | ) | 10,662 | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (2,121 | ) | (2,802 | ) | (362 | ) | (1,196 | ) | ||||||||
From net realized gains | (1,055 | ) | (747 | ) | — | — | ||||||||||
Class B (a) | ||||||||||||||||
From net investment income | — | — | — | (3 | ) | |||||||||||
Class C | ||||||||||||||||
From net investment income | (297 | ) | (160 | ) | — | (b) | (26 | ) | ||||||||
From net realized gains | (151 | ) | (30 | ) | — | — | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | (4 | ) | (19 | ) | — | — | ||||||||||
From net realized gains | (1 | ) | (5 | ) | — | — | ||||||||||
Class R5 | ||||||||||||||||
From net investment income | (14 | ) | (21 | ) | — | — | ||||||||||
From net realized gains | — | (b) | (6 | ) | — | — | ||||||||||
Class R6 (c) | ||||||||||||||||
From net investment income | (1 | ) | (1 | ) | (13,758 | ) | (43,134 | ) | ||||||||
From net realized gains | (1 | ) | — | — | — | |||||||||||
Institutional Class | ||||||||||||||||
From net investment income | — | — | (312 | ) | (1,208 | ) | ||||||||||
Select Class | ||||||||||||||||
From net investment income | (1,237 | ) | (1,460 | ) | (55 | ) | (1,161 | ) | ||||||||
From net realized gains | (534 | ) | (342 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (5,416 | ) | (5,593 | ) | (14,487 | ) | (46,728 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | 33,459 | 4,141 | 611,155 | 520,590 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | 23,738 | (3,645 | ) | 529,500 | 484,524 | |||||||||||
Beginning of period | 110,417 | 114,062 | 2,240,370 | 1,755,846 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 134,155 | $ | 110,417 | $ | 2,769,870 | $ | 2,240,370 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 248 | $ | 30 | $ | 84,841 | $ | 11,104 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
| (c) | Commencement of offering of class shares effective January 30, 2015, for International Equity Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 92 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 31,541 | $ | 21,426 | $ | 1,438 | $ | 235 | ||||||||
Net realized gain (loss) | (7,725 | ) | 5,781 | (3,109 | ) | (835 | ) | |||||||||
Change in net unrealized appreciation/depreciation | (35,894 | ) | (31,203 | ) | 2,169 | (2,078 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (12,078 | ) | (3,996 | ) | 498 | (2,678 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (1,772 | ) | (2,144 | ) | (18 | ) | (3 | ) | ||||||||
From net realized gains | (738 | ) | (14,822 | ) | — | (23 | ) | |||||||||
Class B (a) | ||||||||||||||||
From net investment income | — | (30 | ) | — | — | |||||||||||
From net realized gains | — | (279 | ) | — | — | |||||||||||
Class C | ||||||||||||||||
From net investment income | (316 | ) | (384 | ) | (3 | ) | (1 | ) | ||||||||
From net realized gains | (169 | ) | (3,366 | ) | — | (9 | ) | |||||||||
Class R2 | ||||||||||||||||
From net investment income | (80 | ) | (65 | ) | — | (1 | ) | |||||||||
From net realized gains | (35 | ) | (441 | ) | — | (5 | ) | |||||||||
Class R5 | ||||||||||||||||
From net investment income | — | — | — | (b) | (1 | ) | ||||||||||
From net realized gains | — | — | — | (5 | ) | |||||||||||
Class R6 | ||||||||||||||||
From net investment income | — | — | (253 | ) | (1 | ) | ||||||||||
From net realized gains | — | — | — | (5 | ) | |||||||||||
Select Class | ||||||||||||||||
From net investment income | (19,237 | ) | (14,339 | ) | — | (44 | ) | |||||||||
From net realized gains | (7,017 | ) | (90,006 | ) | — | (267 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (29,364 | ) | (125,876 | ) | (274 | ) | (365 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | 492,324 | 330,697 | 35,055 | 72,975 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | 450,882 | 200,825 | 35,279 | 69,932 | ||||||||||||
Beginning of period | 884,329 | 683,504 | 74,496 | 4,564 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,335,211 | $ | 884,329 | $ | 109,775 | $ | 74,496 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 28,549 | $ | 18,491 | $ | 2,550 | $ | 222 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 93 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| International Value Fund | Intrepid International Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 42,906 | $ | 46,749 | $ | 63,699 | $ | 41,458 | ||||||||
Net realized gain (loss) | (34,758 | ) | 836 | (12,289 | ) | (23,971 | ) | |||||||||
Change in net unrealized appreciation/depreciation | (142,738 | ) | (132,259 | ) | (67,747 | ) | (9,677 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (134,590 | ) | (84,674 | ) | (16,337 | ) | 7,810 | |||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
Class A | ||||||||||||||||
From net investment income | (7,469 | ) | (17,828 | ) | (2,746 | ) | (1,178 | ) | ||||||||
Class B (a) | ||||||||||||||||
From net investment income | — | (34 | ) | — | — | |||||||||||
Class C | ||||||||||||||||
From net investment income | (176 | ) | (874 | ) | (35 | ) | (7 | ) | ||||||||
Class R2 | ||||||||||||||||
From net investment income | (18 | ) | (54 | ) | (3 | ) | (1 | ) | ||||||||
Class R6 (b) | ||||||||||||||||
From net investment income | (61 | ) | (1,141 | ) | (39,523 | ) | — | |||||||||
Institutional Class | ||||||||||||||||
From net investment income | (19,068 | ) | (104,543 | ) | (210 | ) | (23,132 | ) | ||||||||
Select Class | ||||||||||||||||
From net investment income | (2,865 | ) | (10,060 | ) | (365 | ) | (194 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (29,657 | ) | (134,534 | ) | (42,882 | ) | (24,512 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||
Change in net assets resulting from capital transactions | (971,729 | ) | (1,126,276 | ) | 671,617 | 505,255 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: |
| |||||||||||||||
Change in net assets | (1,135,976 | ) | (1,345,484 | ) | 612,398 | 488,553 | ||||||||||
Beginning of period | 2,444,196 | 3,789,680 | 2,081,916 | 1,593,363 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,308,220 | $ | 2,444,196 | $ | 2,694,314 | $ | 2,081,916 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 57,698 | $ | 25,330 | $ | 60,413 | $ | 36,755 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Commencement of offering of class shares effective May 29, 2015, for Intrepid International Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 94 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Emerging Economies Fund | Emerging Markets Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 124,070 | $ | 39,047 | $ | 206,821 | $ | 141,966 | ||||||||
Distributions reinvested | 378 | 703 | 1,541 | 2,387 | ||||||||||||
Cost of shares redeemed | (24,840 | ) | (68,699 | ) | (105,922 | ) | (164,706 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 1,651 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 99,608 | $ | (28,949 | ) | $ | 102,440 | $ | (18,702 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | 103 | ||||||||
Distributions reinvested | — | — | — | 3 | ||||||||||||
Cost of shares redeemed | — | — | — | (954 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (1,651 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class B capital transactions | $ | — | $ | — | $ | — | $ | (2,499 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 283 | $ | 694 | $ | 7,659 | $ | 10,799 | ||||||||
Distributions reinvested | 1 | 54 | — | 176 | ||||||||||||
Cost of shares redeemed | (1,482 | ) | (1,667 | ) | (15,484 | ) | (14,202 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (1,198 | ) | $ | (919 | ) | $ | (7,825 | ) | $ | (3,227 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 79,836 | $ | 514,420 | $ | 20 | $ | — | ||||||||
Distributions reinvested | — | 17,780 | — | — | ||||||||||||
Cost of shares redeemed | (158,991 | ) | (1,200,435 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (79,155 | ) | $ | (668,235 | ) | $ | 20 | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 962,670 | $ | 743,085 | $ | 895,741 | $ | 600,665 | ||||||||
Distributions reinvested | 12,736 | — | 13,982 | 14,467 | ||||||||||||
Cost of shares redeemed | (206,220 | ) | (150 | ) | (232,265 | ) | (448,676 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 769,186 | $ | 742,935 | $ | 677,458 | $ | 166,456 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 177,616 | $ | 154,149 | ||||||||
Distributions reinvested | — | — | 1,936 | 2,196 | ||||||||||||
Cost of shares redeemed | — | — | (138,231 | ) | (175,383 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Institutional Class capital transactions | $ | — | $ | — | $ | 41,321 | $ | (19,038 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 21,815 | $ | 39,198 | $ | 115,950 | $ | 169,818 | ||||||||
Distributions reinvested | 86 | 4,292 | 1,651 | 5,148 | ||||||||||||
Cost of shares redeemed | (216,425 | ) | (48,929 | ) | (350,209 | ) | (150,810 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | (194,524 | ) | $ | (5,439 | ) | $ | (232,608 | ) | $ | 24,156 | |||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 593,917 | $ | 39,393 | $ | 580,806 | $ | 147,146 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Commencement of offering of class of shares effective September 9, 2016, for Emerging Markets Equity Fund. |
| (c) | Commencement of offering of class of shares effective September 1, 2015, for Emerging Economies Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 95 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| Emerging Economies Fund | Emerging Markets Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 11,197 | 3,271 | 10,198 | 6,573 | ||||||||||||
Reinvested | 36 | 58 | 84 | 110 | ||||||||||||
Redeemed | (2,309 | ) | (5,564 | ) | (5,454 | ) | (7,475 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 76 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 8,924 | (2,235 | ) | 4,828 | (716 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) |
| |||||||||||||||
Issued | — | — | — | 5 | ||||||||||||
Reinvested | — | — | — | — | (b) | |||||||||||
Redeemed | — | — | — | (43 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (78 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class B Shares | — | — | — | (116 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 28 | 56 | 402 | 507 | ||||||||||||
Reinvested | — | (b) | 5 | — | 8 | |||||||||||
Redeemed | (145 | ) | (141 | ) | (822 | ) | (691 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (117 | ) | (80 | ) | (420 | ) | (176 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) |
| |||||||||||||||
Issued | 7,225 | 44,196 | 1 | — | ||||||||||||
Reinvested | — | 1,470 | — | — | ||||||||||||
Redeemed | (14,428 | ) | (102,824 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (7,203 | ) | (57,158 | ) | 1 | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (d) |
| |||||||||||||||
Issued | 87,032 | 65,993 | 42,972 | 28,601 | ||||||||||||
Reinvested | 1,219 | — | 745 | 646 | ||||||||||||
Redeemed | (18,962 | ) | (22 | ) | (11,576 | ) | (19,445 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 69,289 | 65,971 | 32,141 | 9,802 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class |
| |||||||||||||||
Issued | — | — | 8,547 | 6,950 | ||||||||||||
Reinvested | — | — | 103 | 98 | ||||||||||||
Redeemed | — | — | (6,992 | ) | (8,181 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Institutional Class Shares | — | — | 1,658 | (1,133 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 2,004 | 3,352 | 5,865 | 7,719 | ||||||||||||
Reinvested | 8 | 355 | 88 | 231 | ||||||||||||
Redeemed | (19,109 | ) | (3,905 | ) | (17,594 | ) | (6,853 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | (17,097 | ) | (198 | ) | (11,641 | ) | 1,097 | |||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
| (c) | Commencement of offering of class of shares effective September 9, 2016, for Emerging Markets Equity Fund. |
| (d) | Commencement of offering of class of shares effective September 1, 2015, for Emerging Economies Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 96 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||||
| Year Ended October 31, 2016 | Period Ended October 31, 2015 (a) | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 8,578 | $ | 95 | $ | — | (b) | $ | — | |||||||
Distributions reinvested | 85 | 2 | — | (b) | 2 | |||||||||||
Cost of shares redeemed | (653 | ) | — | (b) | — | (45 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 8,010 | $ | 97 | $ | — | (b) | $ | (43 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 57 | $ | 37 | $ | — | $ | — | ||||||||
Distributions reinvested | 1 | 1 | — | 1 | ||||||||||||
Cost of shares redeemed | — | (b) | — | — | (45 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | 58 | $ | 38 | $ | — | $ | (44 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | — | ||||||||
Distributions reinvested | — | — | — | (b) | 1 | |||||||||||
Cost of shares redeemed | — | — | — | (45 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | — | (b) | $ | (44 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | (b) | $ | 20 | $ | — | $ | — | |||||||
Distributions reinvested | — | (b) | — | (b) | — | — | ||||||||||
Cost of shares redeemed | — | (b) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | (b) | $ | 20 | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 8 | $ | 20 | $ | — | $ | — | ||||||||
Distributions reinvested | 1 | 1 | — | — | ||||||||||||
Cost of shares redeemed | (4 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 5 | $ | 21 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 397 | $ | 2,943 | $ | 1,314,724 | $ | 4,477,297 | ||||||||
Distributions reinvested | 54 | 84 | 9,477 | 12,872 | ||||||||||||
Cost of shares redeemed | (59 | ) | — | (1,740,416 | ) | (672,614 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | 392 | $ | 3,027 | $ | (416,215 | ) | $ | 3,817,555 | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 8,465 | $ | 3,203 | $ | (416,215 | ) | $ | 3,817,424 | |||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Commencement of operations was December 12, 2014. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 97 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | |||||||||||||||
| Year Ended October 31, 2016 | Period Ended October 31, 2015 (a) | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 652 | 7 | — | — | ||||||||||||
Reinvested | 7 | — | (b) | — | (b) | — | (b) | |||||||||
Redeemed | (50 | ) | — | (b) | — | (2 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 609 | 7 | — | (b) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 4 | 3 | — | — | ||||||||||||
Reinvested | — | (b) | — | (b) | — | — | (b) | |||||||||
Redeemed | — | — | — | (2 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | 4 | 3 | — | (2 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 |
| |||||||||||||||
Reinvested | — | — | — | (b) | — | (b) | ||||||||||
Redeemed | — | — | — | (2 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | — | (b) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 |
| |||||||||||||||
Issued | — | 1 | — | — | ||||||||||||
Reinvested | — | (b) | — | (b) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | (b) | 1 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 |
| |||||||||||||||
Issued | 1 | 1 | — | — | ||||||||||||
Reinvested | — | (b) | — | (b) | — | — | ||||||||||
Redeemed | — | (b) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 1 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 30 | 196 | 74,956 | 245,025 | ||||||||||||
Reinvested | 4 | 7 | 538 | 703 | ||||||||||||
Redeemed | (4 | ) | — | (99,095 | ) | (36,321 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | 30 | 203 | (23,601 | ) | 209,407 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Commencement of operations was December 12, 2014. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 98 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Global Unconstrained Equity Fund | International Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 121,461 | $ | 237 | $ | 110,321 | $ | 132,476 | ||||||||
Distributions reinvested | 6,351 | 18 | 3,515 | 1,943 | ||||||||||||
Cost of shares redeemed | (126,936 | ) | (64 | ) | (113,970 | ) | (86,116 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 650 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 876 | $ | 191 | $ | (134 | ) | $ | 48,953 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | 16 | ||||||||
Distributions reinvested | — | — | — | 1 | ||||||||||||
Cost of shares redeemed | — | — | — | (370 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (650 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class B capital transactions | $ | — | $ | — | $ | — | $ | (1,003 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 50 | $ | 311 | $ | 2,485 | $ | 8,119 | ||||||||
Distributions reinvested | 26 | 31 | 272 | 271 | ||||||||||||
Cost of shares redeemed | (146 | ) | (59 | ) | (7,667 | ) | (5,118 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (70 | ) | $ | 283 | $ | (4,910 | ) | $ | 3,272 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | — | (b) | $ | 7 | $ | 883 | $ | 437 | |||||||
Distributions reinvested | — | 10 | 10 | 6 | ||||||||||||
Cost of shares redeemed | — | (b) | (58 | ) | (596 | ) | (606 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | (b) | $ | (41 | ) | $ | 297 | $ | (163 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | (b) | $ | 8 | $ | 6,787 | $ | 12,066 | |||||||
Distributions reinvested | — | 10 | 1,103 | 1,256 | ||||||||||||
Cost of shares redeemed | — | (b) | (60 | ) | (4,763 | ) | (49,835 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | (b) | $ | (42 | ) | $ | 3,127 | $ | (36,513 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 8 | $ | 1,159,108 | $ | 643,342 | ||||||||
Distributions reinvested | — | 11 | 57,229 | 36,053 | ||||||||||||
Cost of shares redeemed | — | (b) | (61 | ) | (239,110 | ) | (200,977 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | — | (b) | $ | (42 | ) | $ | 977,227 | $ | 478,418 | ||||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 15,051 | $ | 915 | $ | 32,905 | $ | 190,845 | ||||||||
Distributions reinvested | 803 | 565 | 1,578 | 7,832 | ||||||||||||
Cost of shares redeemed | (15,414 | ) | (3,872 | ) | (460,051 | ) | (153,654 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | 440 | $ | (2,392 | ) | $ | (425,568 | ) | $ | 45,023 | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 1,246 | $ | (2,043 | ) | $ | 550,039 | $ | 537,987 | |||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 99 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| Global Unconstrained Equity Fund | International Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 9,129 | 14 | 8,046 | 8,553 | ||||||||||||
Reinvested | 478 | 1 | 265 | 124 | ||||||||||||
Redeemed | (9,592 | ) | (4 | ) | (8,294 | ) | (5,716 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 40 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 15 | 11 | 17 | 3,001 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) |
| |||||||||||||||
Issued | — | — | — | 2 | ||||||||||||
Reinvested | — | — | — | — | (b) | |||||||||||
Redeemed | — | — | — | (25 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (42 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class B Shares | — | — | — | (65 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 3 | 18 | 189 | 544 | ||||||||||||
Reinvested | 2 | 2 | 22 | 18 | ||||||||||||
Redeemed | (10 | ) | (4 | ) | (584 | ) | (353 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (5 | ) | 16 | (373 | ) | 209 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 |
| |||||||||||||||
Issued | — | — | (b) | 64 | 30 | |||||||||||
Reinvested | — | — | (b) | 1 | — | (b) | ||||||||||
Redeemed | — | (2 | ) | (44 | ) | (40 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | (2 | ) | 21 | (10 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 |
| |||||||||||||||
Issued | — | — | (b) | 483 | 767 | |||||||||||
Reinvested | — | 1 | 81 | 79 | ||||||||||||
Redeemed | — | (4 | ) | (338 | ) | (3,196 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | (3 | ) | 226 | (2,350 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 |
| |||||||||||||||
Issued | — | 1 | 82,405 | 41,655 | ||||||||||||
Reinvested | — | 1 | 4,227 | 2,277 | ||||||||||||
Redeemed | — | (5 | ) | (16,681 | ) | (13,127 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | — | (3 | ) | 69,951 | 30,805 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 1,096 | 56 | 2,347 | 12,232 | ||||||||||||
Reinvested | 60 | 33 | 117 | 491 | ||||||||||||
Redeemed | (1,149 | ) | (238 | ) | (30,864 | ) | (9,778 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | 7 | (149 | ) | (28,400 | ) | 2,945 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 100 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| International Equity Income Fund | International Opportunities Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 47,652 | $ | 58,461 | $ | 107,477 | $ | 136,311 | ||||||||
Distributions reinvested | 3,171 | 1,987 | 362 | 667 | ||||||||||||
Cost of shares redeemed | (45,371 | ) | (63,685 | ) | (84,187 | ) | (88,624 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 98 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 5,452 | $ | (3,237 | ) | $ | 23,652 | $ | 48,452 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | — | (b) | |||||||
Distributions reinvested | — | — | — | 3 | ||||||||||||
Cost of shares redeemed | — | — | — | (103 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (98 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class B capital transactions | $ | — | $ | — | $ | — | $ | (198 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 7,012 | $ | 6,733 | $ | 469 | $ | 815 | ||||||||
Distributions reinvested | 445 | 188 | — | (b) | 23 | |||||||||||
Cost of shares redeemed | (3,519 | ) | (1,399 | ) | (554 | ) | (485 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | 3,938 | $ | 5,522 | $ | (85 | ) | $ | 353 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 282 | $ | 245 | $ | — | $ | — | ||||||||
Distributions reinvested | 5 | 24 | — | — | ||||||||||||
Cost of shares redeemed | (12 | ) | (798 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | 275 | $ | (529 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 696 | $ | 1 | $ | — | $ | — | ||||||||
Distributions reinvested | 14 | 27 | — | — | ||||||||||||
Cost of shares redeemed | (14 | ) | (600 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 696 | $ | (572 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 1 | $ | 20 | $ | 871,518 | $ | 566,773 | ||||||||
Distributions reinvested | 2 | 1 | 13,758 | 43,134 | ||||||||||||
Cost of shares redeemed | — | (b) | — | (b) | (295,100 | ) | (114,856 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 3 | $ | 21 | $ | 590,176 | $ | 495,051 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 11,992 | $ | 16,816 | ||||||||
Distributions reinvested | — | — | 243 | 832 | ||||||||||||
Cost of shares redeemed | — | — | (15,183 | ) | (17,121 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Institutional Class capital transactions | $ | — | $ | — | $ | (2,948 | ) | $ | 527 | |||||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 54,317 | $ | 32,401 | $ | 8,676 | $ | 11,466 | ||||||||
Distributions reinvested | 1,598 | 1,227 | 35 | 899 | ||||||||||||
Cost of shares redeemed | (32,820 | ) | (30,692 | ) | (8,351 | ) | (35,960 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | 23,095 | $ | 2,936 | $ | 360 | $ | (23,595 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 33,459 | $ | 4,141 | $ | 611,155 | $ | 520,590 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
| (c) | Commencement of offering of class shares effective January 30, 2015, for International Equity Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 101 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| International Equity Income Fund | International Opportunities Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 3,246 | 3,583 | 7,900 | 9,264 | ||||||||||||
Reinvested | 216 | 123 | 26 | 47 | ||||||||||||
Redeemed | (3,069 | ) | (4,009 | ) | (6,175 | ) | (6,062 | ) | ||||||||
Conversion from Class B Shares | — | — | — | 6 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 393 | (303 | ) | 1,751 | 3,255 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) |
| |||||||||||||||
Issued | — | — | — | 1 | ||||||||||||
Reinvested | — | — | — | — | (b) | |||||||||||
Redeemed | — | — | — | (8 | ) | |||||||||||
Conversion to Class A Shares | — | — | — | (6 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class B Shares | — | — | — | (13 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 479 | 413 | 36 | 56 | ||||||||||||
Reinvested | 31 | 12 | — | (b) | 2 | |||||||||||
Redeemed | (243 | ) | (86 | ) | (42 | ) | (34 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | 267 | 339 | (6 | ) | 24 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 |
| |||||||||||||||
Issued | 19 | 16 | — | — | ||||||||||||
Reinvested | — | (b) | 1 | — | — | |||||||||||
Redeemed | (1 | ) | (48 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | 18 | (31 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 |
| |||||||||||||||
Issued | 48 | — | — | — | ||||||||||||
Reinvested | 1 | 2 | — | — | ||||||||||||
Redeemed | (1 | ) | (37 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 48 | (35 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) |
| |||||||||||||||
Issued | — | (b) | 1 | 63,733 | 38,682 | |||||||||||
Reinvested | — | (b) | — | (b) | 975 | 2,979 | ||||||||||
Redeemed | — | (b) | — | (20,913 | ) | (7,635 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | — | (b) | 1 | 43,795 | 34,026 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class |
| |||||||||||||||
Issued | — | — | 861 | 1,107 | ||||||||||||
Reinvested | — | — | 17 | 57 | ||||||||||||
Redeemed | — | — | (1,102 | ) | (1,144 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Institutional Class Shares | — | — | (224 | ) | 20 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 3,700 | 1,976 | 636 | 778 | ||||||||||||
Reinvested | 108 | 76 | 3 | 62 | ||||||||||||
Redeemed | (2,258 | ) | (1,921 | ) | (596 | ) | (2,328 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | 1,550 | 131 | 43 | (1,488 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
| (c) | Commencement of offering of class shares effective January 30, 2015, for International Equity Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 102 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 9,158 | $ | 11,729 | $ | 11,592 | $ | 6,956 | ||||||||
Distributions reinvested | 2,436 | 16,487 | 18 | 26 | ||||||||||||
Cost of shares redeemed | (19,422 | ) | (25,950 | ) | (3,467 | ) | (1,313 | ) | ||||||||
Conversion from Class B Shares | — | 1,210 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (7,828 | ) | $ | 3,476 | $ | 8,143 | $ | 5,669 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 4 | $ | — | $ | — | ||||||||
Distributions reinvested | — | 305 | — | — | ||||||||||||
Cost of shares redeemed | — | (612 | ) | — | — | |||||||||||
Conversion to Class A Shares | — | (1,210 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class B capital transactions | $ | — | $ | (1,513 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 998 | $ | 3,206 | $ | 2,759 | $ | 3,688 | ||||||||
Distributions reinvested | 467 | 3,601 | 3 | 10 | ||||||||||||
Cost of shares redeemed | (5,171 | ) | (5,182 | ) | (1,551 | ) | (334 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (3,706 | ) | $ | 1,625 | $ | 1,211 | $ | 3,364 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 8,693 | $ | 2,346 | $ | — | $ | — | (b) | |||||||
Distributions reinvested | 28 | 130 | — | 6 | ||||||||||||
Cost of shares redeemed | (1,738 | ) | (1,185 | ) | — | (b) | (52 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | 6,983 | $ | 1,291 | $ | — | (b) | $ | (46 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | — | (b) | |||||||
Distributions reinvested | — | — | — | (b) | 6 | |||||||||||
Cost of shares redeemed | — | — | — | (b) | (53 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | $ | — | $ | — | (b) | $ | (47 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 75,541 | $ | 5,150 | ||||||||
Distributions reinvested | — | — | 253 | 6 | ||||||||||||
Cost of shares redeemed | — | — | 4 | (53 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | — | $ | — | $ | 75,798 | $ | 5,103 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 568,584 | $ | 282,422 | $ | 7,331 | $ | 63,186 | ||||||||
Distributions reinvested | 25,196 | 93,786 | — | 311 | ||||||||||||
Cost of shares redeemed | (96,905 | ) | (50,390 | ) | (57,428 | ) | (4,565 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | 496,875 | $ | 325,818 | $ | (50,097 | ) | $ | 58,932 | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 492,324 | $ | 330,697 | $ | 35,055 | $ | 72,975 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 103 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| International Research Enhanced Equity Fund | International Unconstrained Equity Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 600 | 687 | 688 | 387 | ||||||||||||
Reinvested | 157 | 1,007 | 1 | 2 | ||||||||||||
Redeemed | (1,276 | ) | (1,492 | ) | (206 | ) | (77 | ) | ||||||||
Conversion from Class B Shares | — | 69 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (519 | ) | 271 | 483 | 312 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) |
| |||||||||||||||
Issued | — | — | (b) | — | — | |||||||||||
Reinvested | — | 21 | — | — | ||||||||||||
Redeemed | — | (38 | ) | — | — | |||||||||||
Conversion to Class A Shares | — | (76 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class B Shares | — | (93 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 67 | 196 | 167 | 208 | ||||||||||||
Reinvested | 32 | 229 | — | (b) | 1 | |||||||||||
Redeemed | (353 | ) | (316 | ) | (92 | ) | (19 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (254 | ) | 109 | 75 | 190 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 |
| |||||||||||||||
Issued | 581 | 141 | — | — | ||||||||||||
Reinvested | 2 | 8 | — | — | (b) | |||||||||||
Redeemed | (115 | ) | (70 | ) | — | (2 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | 468 | 79 | — | (2 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 |
| |||||||||||||||
Reinvested | — | — | — | (b) | — | (b) | ||||||||||
Redeemed | — | — | — | (2 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | — | — | (b) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 |
| |||||||||||||||
Issued | — | — | 4,336 | 301 | ||||||||||||
Reinvested | — | — | 15 | — | (b) | |||||||||||
Redeemed | — | — | (1 | ) | (3 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | — | — | 4,350 | 298 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 37,181 | 16,621 | 438 | 3,408 | ||||||||||||
Reinvested | 1,614 | 5,675 | — | 19 | ||||||||||||
Redeemed | (6,312 | ) | (2,957 | ) | (3,248 | ) | (255 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | 32,483 | 19,339 | (2,810 | ) | 3,172 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 104 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| International Value Fund | Intrepid International Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 205,683 | $ | 371,930 | $ | 102,499 | $ | 95,968 | ||||||||
Distributions reinvested | 7,392 | 17,402 | 2,734 | 490 | ||||||||||||
Cost of shares redeemed | (291,409 | ) | (138,921 | ) | (87,263 | ) | (42,454 | ) | ||||||||
Conversion from Class B Shares | — | 971 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (78,334 | ) | $ | 251,382 | $ | 17,970 | $ | 54,004 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 25 | $ | — | $ | — | ||||||||
Distributions reinvested | — | 30 | — | — | ||||||||||||
Cost of shares redeemed | — | (679 | ) | — | — | |||||||||||
Conversion to Class A Shares | — | (971 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class B capital transactions | $ | — | $ | (1,595 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 5,220 | $ | 11,310 | $ | 651 | $ | 1,873 | ||||||||
Distributions reinvested | 154 | 726 | 32 | 6 | ||||||||||||
Cost of shares redeemed | (10,150 | ) | (9,151 | ) | (1,054 | ) | (324 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (4,776 | ) | $ | 2,885 | $ | (371 | ) | $ | 1,555 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 765 | $ | 867 | $ | 318 | $ | 215 | ||||||||
Distributions reinvested | 8 | 19 | 3 | 1 | ||||||||||||
Cost of shares redeemed | (1,410 | ) | (577 | ) | (41 | ) | (81 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (637 | ) | $ | 309 | $ | 280 | $ | 135 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 20 | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 20 | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 28,014 | $ | 2,297 | $ | 900,498 | $ | 1,949,477 | ||||||||
Distributions reinvested | 61 | 36 | 39,523 | — | ||||||||||||
Cost of shares redeemed | (2,057 | ) | (29,993 | ) | (259,983 | ) | (16,332 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 26,018 | $ | (27,660 | ) | $ | 680,038 | $ | 1,933,145 | |||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class | ||||||||||||||||
Proceeds from shares issued | $ | 320,955 | $ | 578,308 | $ | 3,104 | $ | 387,580 | ||||||||
Distributions reinvested | 13,888 | 74,288 | 50 | 22,528 | ||||||||||||
Cost of shares redeemed | (1,188,471 | ) | (1,957,791 | ) | (27,450 | ) | (1,897,256 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Institutional Class capital transactions | $ | (853,628 | ) | $ | (1,305,195 | ) | $ | (24,296 | ) | $ | (1,487,148 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 57,659 | $ | 63,280 | $ | 6,578 | $ | 8,368 | ||||||||
Distributions reinvested | 1,701 | 4,957 | 221 | 105 | ||||||||||||
Cost of shares redeemed | (119,752 | ) | (114,639 | ) | (8,803 | ) | (4,909 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Select Class capital transactions | $ | (60,392 | ) | $ | (46,402 | ) | $ | (2,004 | ) | $ | 3,564 | |||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (971,729 | ) | $ | (1,126,276 | ) | $ | 671,617 | $ | 505,255 | ||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Commencement of offering of class shares effective September 9, 2016, for International Value Fund. |
| (c) | Commencement of offering of class shares effective May 29, 2015, for Intrepid International Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 105 | ||||||
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
| International Value Fund | Intrepid International Fund | |||||||||||||||
| Year Ended October 31, 2016 | Year Ended October 31, 2015 | Year Ended October 31, 2016 | Year Ended October 31, 2015 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 17,288 | 27,494 | 5,754 | 4,850 | ||||||||||||
Reinvested | 600 | 1,313 | 148 | 26 | ||||||||||||
Redeemed | (24,382 | ) | (10,221 | ) | (4,883 | ) | (2,172 | ) | ||||||||
Conversion from Class B Shares | — | 69 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (6,494 | ) | 18,655 | 1,019 | 2,704 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class B (a) |
| |||||||||||||||
Issued | — | 2 | — | — | ||||||||||||
Reinvested | — | 2 | — | — | ||||||||||||
Redeemed | — | (49 | ) | — | — | |||||||||||
Conversion to Class A Shares | — | (69 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class B Shares | — | (114 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued | 445 | 847 | 35 | 92 | ||||||||||||
Reinvested | 13 | 56 | 2 | — | (b) | |||||||||||
Redeemed | (874 | ) | (700 | ) | (57 | ) | (16 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (416 | ) | 203 | (20 | ) | 76 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 |
| |||||||||||||||
Issued | 65 | 65 | 18 | 11 | ||||||||||||
Reinvested | 1 | 2 | — | (b) | — | (b) | ||||||||||
Redeemed | (118 | ) | (44 | ) | (2 | ) | (4 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (52 | ) | 23 | 16 | 7 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) |
| |||||||||||||||
Issued | 2 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 2 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (d) |
| |||||||||||||||
Issued | 2,230 | 163 | 49,855 | 94,346 | ||||||||||||
Reinvested | 5 | 3 | 2,101 | — | ||||||||||||
Redeemed | (174 | ) | (2,138 | ) | (13,945 | ) | (836 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 2,061 | (1,972 | ) | 38,011 | 93,510 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Institutional Class |
| |||||||||||||||
Issued | 26,460 | 41,907 | 170 | 19,195 | ||||||||||||
Reinvested | 1,108 | 5,511 | 3 | 1,164 | ||||||||||||
Redeemed | (97,097 | ) | (139,563 | ) | (1,551 | ) | (91,679 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Institutional Class Shares | (69,529 | ) | (92,145 | ) | (1,378 | ) | (71,320 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Select Class |
| |||||||||||||||
Issued | 4,708 | 4,565 | 354 | 405 | ||||||||||||
Reinvested | 135 | 365 | 12 | 5 | ||||||||||||
Redeemed | (9,716 | ) | (8,265 | ) | (472 | ) | (241 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Select Class Shares | (4,873 | ) | (3,335 | ) | (106 | ) | 169 | |||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | All remaining Class B Shares converted to Class A Shares on June 19, 2015. |
| (b) | Amount rounds to less than 500. |
| (c) | Commencement of offering of class shares effective September 9, 2016, for International Value Fund. |
| (d) | Commencement of offering of class shares effective May 29, 2015, for Intrepid International Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 106 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 107 | ||||||
Table of Contents
FOR THE PERIODS INDICATED
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
Emerging Economies Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended October 31, 2016 | $ | 11.03 | $ | 0.15 | $ | 0.46 | $ | 0.61 | $ | (0.09 | ) | |||||||||
Year Ended October 31, 2015 | 13.13 | 0.13 | (g) | (2.03 | ) | (1.90 | ) | (0.20 | ) | |||||||||||
Year Ended October 31, 2014 | 13.63 | 0.22 | (0.57 | ) | (0.35 | ) | (0.15 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.88 | 0.19 | 0.67 | 0.86 | (0.11 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.65 | 0.17 | 0.21 | 0.38 | (0.15 | ) | ||||||||||||||
Class C |
| |||||||||||||||||||
Year Ended October 31, 2016 | 10.86 | 0.09 | 0.46 | 0.55 | — | (h) | ||||||||||||||
Year Ended October 31, 2015 | 12.92 | 0.10 | (g) | (2.03 | ) | (1.93 | ) | (0.13 | ) | |||||||||||
Year Ended October 31, 2014 | 13.44 | 0.15 | (0.57 | ) | (0.42 | ) | (0.10 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.72 | 0.13 | 0.66 | 0.79 | (0.07 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.58 | 0.15 | 0.15 | 0.30 | (0.16 | ) | ||||||||||||||
Class R5 |
| |||||||||||||||||||
Year Ended October 31, 2016 | 11.11 | 0.05 | 0.62 | 0.67 | — | |||||||||||||||
Year Ended October 31, 2015 | 13.22 | 0.20 | (g) | (2.06 | ) | (1.86 | ) | (0.25 | ) | |||||||||||
Year Ended October 31, 2014 | 13.71 | 0.29 | (0.58 | ) | (0.29 | ) | (0.20 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.94 | 0.25 | 0.68 | 0.93 | (0.16 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.71 | 0.25 | 0.18 | 0.43 | (0.20 | ) | ||||||||||||||
Class R6 |
| |||||||||||||||||||
Year Ended October 31, 2016 | 11.11 | 0.21 | 0.46 | 0.67 | (0.14 | ) | ||||||||||||||
September 1, 2015 (i) through October 31, 2015 | 10.46 | (0.02 | )(g) | 0.67 | 0.65 | — | ||||||||||||||
Select Class |
| |||||||||||||||||||
Year Ended October 31, 2016 | 11.06 | 0.18 | 0.47 | 0.65 | (0.03 | ) | ||||||||||||||
Year Ended October 31, 2015 | 13.17 | 0.18 | (g) | (2.06 | ) | (1.88 | ) | (0.23 | ) | |||||||||||
Year Ended October 31, 2014 | 13.67 | 0.26 | (0.58 | ) | (0.32 | ) | (0.18 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.91 | 0.21 | 0.70 | 0.91 | (0.15 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.68 | 0.22 | 0.18 | 0.40 | (0.17 | ) | ||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Amount rounds to less than $0.01. |
| (i) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 108 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 11.55 | 5.62 | % | $ | 148,331 | 1.42 | % | 1.42 | % | 1.70 | % | 72 | % | |||||||||||||
| 11.03 | (14.60 | ) | 43,220 | 1.58 | 1.06 | (g) | 1.99 | 118 | ||||||||||||||||||
| 13.13 | (2.56 | ) | 80,806 | 1.60 | 1.71 | 1.73 | 79 | |||||||||||||||||||
| 13.63 | 6.67 | 69,690 | 1.60 | 1.45 | 1.72 | 43 | ||||||||||||||||||||
| 12.88 | 3.15 | 30,356 | 1.65 | 1.37 | 1.76 | 72 | ||||||||||||||||||||
| 11.41 | 5.11 | 2,448 | 1.96 | 0.82 | 2.37 | 72 | ||||||||||||||||||||
| 10.86 | (15.02 | ) | 3,614 | 2.09 | 0.80 | (g) | 2.36 | 118 | ||||||||||||||||||
| 12.92 | (3.12 | ) | 5,331 | 2.10 | 1.13 | 2.23 | 79 | |||||||||||||||||||
| 13.44 | 6.25 | 5,089 | 2.10 | 1.02 | 2.22 | 43 | ||||||||||||||||||||
| 12.72 | 2.54 | 2,088 | 2.12 | 1.21 | 2.27 | 72 | ||||||||||||||||||||
| 11.78 | 6.03 | 1,602 | 1.08 | 0.49 | 1.25 | 72 | ||||||||||||||||||||
| 11.11 | (14.20 | ) | 81,516 | 1.14 | 1.65 | (g) | 1.25 | 118 | ||||||||||||||||||
| 13.22 | (2.12 | ) | 852,477 | 1.15 | 2.19 | 1.28 | 79 | |||||||||||||||||||
| 13.71 | 7.21 | 676,985 | 1.15 | 1.84 | 1.27 | 43 | ||||||||||||||||||||
| 12.94 | 3.53 | 331,032 | 1.19 | 1.99 | 1.31 | 72 | ||||||||||||||||||||
| 11.64 | 6.16 | 1,573,822 | 0.94 | 1.99 | 1.09 | 72 | ||||||||||||||||||||
| 11.11 | 6.21 | 732,627 | 1.07 | (0.92 | )(g) | 1.17 | 118 | |||||||||||||||||||
| 11.68 | 5.93 | 53,509 | 1.21 | 1.67 | 1.40 | 72 | ||||||||||||||||||||
| 11.06 | (14.45 | ) | 239,866 | 1.34 | 1.51 | (g) | 1.46 | 118 | ||||||||||||||||||
| 13.17 | (2.35 | ) | 288,059 | 1.35 | 1.96 | 1.48 | 79 | |||||||||||||||||||
| 13.67 | 7.04 | 277,822 | 1.35 | 1.61 | 1.47 | 43 | ||||||||||||||||||||
| 12.91 | 3.34 | 82,457 | 1.39 | 1.70 | 1.51 | 72 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 109 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2016 | $ | 19.53 | $ | 0.09 | $ | 2.28 | $ | 2.37 | $ | (0.11 | ) | |||||||||
Year Ended October 31, 2015 | 23.72 | 0.12 | (g) | (4.12 | ) | (4.00 | ) | (0.19 | ) | |||||||||||
Year Ended October 31, 2014 | 23.05 | 0.16 | (g) | 0.59 | 0.75 | (0.08 | ) | |||||||||||||
Year Ended October 31, 2013 | 22.01 | 0.10 | 1.02 | 1.12 | (0.08 | ) | ||||||||||||||
Year Ended October 31, 2012 | 21.09 | 0.07 | 0.85 | 0.92 | — | |||||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2016 | 18.96 | (0.01 | ) | 2.23 | 2.22 | — | ||||||||||||||
Year Ended October 31, 2015 | 23.03 | 0.03 | (g) | (4.02 | ) | (3.99 | ) | (0.08 | ) | |||||||||||
Year Ended October 31, 2014 | 22.41 | 0.05 | (g) | 0.57 | 0.62 | — | ||||||||||||||
Year Ended October 31, 2013 | 21.44 | (0.01 | ) | 0.99 | 0.98 | (0.01 | ) | |||||||||||||
Year Ended October 31, 2012 | 20.65 | (0.04 | ) | 0.83 | 0.79 | — | ||||||||||||||
Class R5 | ||||||||||||||||||||
September 9, 2016 (h) through October 31, 2016 | 22.40 | 0.01 | 0.08 | 0.09 | — | |||||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2016 | 20.13 | 0.19 | 2.35 | 2.54 | (0.21 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.44 | 0.22 | (g) | (4.23 | ) | (4.01 | ) | (0.30 | ) | |||||||||||
December 23, 2013 (h) through October 31, 2014 | 22.47 | 0.38 | (g) | 1.59 | 1.97 | — | ||||||||||||||
Institutional Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 20.15 | 0.17 | 2.35 | 2.52 | (0.18 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.42 | 0.23 | (g) | (4.26 | ) | (4.03 | ) | (0.24 | ) | |||||||||||
Year Ended October 31, 2014 | 23.73 | 0.17 | (g) | 0.70 | 0.87 | (0.18 | ) | |||||||||||||
Year Ended October 31, 2013 | 22.65 | 0.20 | 1.04 | 1.24 | (0.16 | ) | ||||||||||||||
Year Ended October 31, 2012 | 21.66 | 0.16 | 0.87 | 1.03 | (0.04 | ) | ||||||||||||||
Select Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 19.98 | 0.13 | 2.35 | 2.48 | (0.13 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.24 | 0.19 | (g) | (4.21 | ) | (4.02 | ) | (0.24 | ) | |||||||||||
Year Ended October 31, 2014 | 23.47 | 0.18 | (g) | 0.64 | 0.82 | (0.05 | ) | |||||||||||||
Year Ended October 31, 2013 | 22.40 | 0.17 | 1.03 | 1.20 | (0.13 | ) | ||||||||||||||
Year Ended October 31, 2012 | 21.42 | 0.13 | 0.86 | 0.99 | (0.01 | ) | ||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 110 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 21.79 | 12.25 | % | $ | 411,713 | 1.44 | % | 0.44 | % | 1.76 | % | 23 | % | |||||||||||||
| 19.53 | (16.95 | ) | 274,710 | 1.61 | 0.57 | (g) | 1.88 | 35 | ||||||||||||||||||
| 23.72 | 3.26 | 350,555 | 1.70 | 0.72 | (g) | 1.81 | 33 | |||||||||||||||||||
| 23.05 | 5.08 | 327,090 | 1.76 | 0.46 | 1.79 | 34 | ||||||||||||||||||||
| 22.01 | 4.36 | 281,194 | 1.82 | 0.33 | 1.82 | 20 | ||||||||||||||||||||
| 21.18 | 11.71 | 39,568 | 1.95 | (0.06 | ) | 2.26 | 23 | |||||||||||||||||||
| 18.96 | (17.38 | ) | 43,387 | 2.10 | 0.13 | (g) | 2.33 | 35 | ||||||||||||||||||
| 23.03 | 2.77 | 56,732 | 2.20 | 0.22 | (g) | 2.31 | 33 | |||||||||||||||||||
| 22.41 | 4.56 | 56,119 | 2.26 | (0.06 | ) | 2.29 | 34 | |||||||||||||||||||
| 21.44 | 3.83 | 44,643 | 2.32 | (0.17 | ) | 2.32 | 20 | |||||||||||||||||||
| 22.49 | 0.40 | 20 | 0.90 | 0.28 | 1.08 | 23 | ||||||||||||||||||||
| 22.46 | 12.83 | 1,980,671 | 0.94 | 0.96 | 1.08 | 23 | ||||||||||||||||||||
| 20.13 | (16.54 | ) | 1,128,390 | 1.10 | 0.99 | (g) | 1.16 | 35 | ||||||||||||||||||
| 24.44 | 8.77 | 1,130,050 | 1.20 | 1.85 | (g) | 1.33 | 33 | |||||||||||||||||||
| 22.49 | 12.71 | 390,647 | 1.04 | 0.84 | 1.22 | 23 | ||||||||||||||||||||
| 20.15 | (16.60 | ) | 316,635 | 1.21 | 1.05 | (g) | 1.31 | 35 | ||||||||||||||||||
| 24.42 | 3.72 | 411,449 | 1.30 | 0.72 | (g) | 1.40 | 33 | |||||||||||||||||||
| 23.73 | 5.47 | 1,123,600 | 1.36 | 0.88 | 1.39 | 34 | ||||||||||||||||||||
| 22.65 | 4.80 | 629,223 | 1.41 | 0.73 | 1.42 | 20 | ||||||||||||||||||||
| 22.33 | 12.51 | 301,959 | 1.20 | 0.66 | 1.43 | 23 | ||||||||||||||||||||
| 19.98 | (16.70 | ) | 502,729 | 1.35 | 0.88 | (g) | 1.48 | 35 | ||||||||||||||||||
| 24.24 | 3.51 | 583,501 | 1.45 | 0.78 | (g) | 1.56 | 33 | |||||||||||||||||||
| 23.47 | 5.34 | 1,900,639 | 1.51 | 0.74 | 1.54 | 34 | ||||||||||||||||||||
| 22.40 | 4.65 | 1,291,326 | 1.57 | 0.60 | 1.57 | 20 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 111 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
Emerging Markets Equity Income Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2016 | $ | 12.50 | $ | 0.44 | $ | 0.76 | $ | 1.20 | $ | (0.24 | ) | |||||||||
December 12, 2014 (h) through October 31, 2015 | 15.00 | 0.45 | (2.52 | ) | (2.07 | ) | (0.43 | ) | ||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.51 | 0.27 | 0.85 | 1.12 | (0.19 | ) | ||||||||||||||
December 12, 2014 (h) through October 31, 2015 | 15.00 | 0.42 | (2.55 | ) | (2.13 | ) | (0.36 | ) | ||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.53 | 0.40 | 0.85 | 1.25 | (0.27 | ) | ||||||||||||||
December 12, 2014 (h) through October 31, 2015 | 15.00 | 0.51 | (2.53 | ) | (2.02 | ) | (0.45 | ) | ||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.53 | 0.41 | 0.85 | 1.26 | (0.27 | ) | ||||||||||||||
December 12, 2014 (h) through October 31, 2015 | 15.00 | 0.52 | (2.53 | ) | (2.01 | ) | (0.46 | ) | ||||||||||||
Select Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.53 | 0.38 | 0.85 | 1.23 | (0.25 | ) | ||||||||||||||
December 12, 2014 (h) through October 31, 2015 | 15.00 | 0.49 | (2.53 | ) | (2.04 | ) | (0.43 | ) | ||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Certain non-recurring expenses incurred by the Fund were not annualized for the year ended October 31, 2016 and for the period ended October 31, 2015. |
| (g) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (h) | Commencement of operations. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 112 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e)(f) | Net | Expenses without waivers and reimbursements (f) | Portfolio turnover rate (c)(g) | ||||||||||||||||||||
| $ | 13.46 | 9.76 | % | $ | 8,291 | 1.54 | % | 3.36 | % | 3.29 | % | 21 | % | |||||||||||||
| 12.50 | (13.93 | ) | 86 | 1.57 | 3.72 | 10.55 | 25 | |||||||||||||||||||
| 13.44 | 9.10 | 94 | 2.05 | 2.15 | 8.18 | 21 | ||||||||||||||||||||
| 12.51 | (14.26 | ) | 32 | 2.08 | 3.32 | 12.02 | 25 | |||||||||||||||||||
| 13.51 | 10.15 | 19 | 1.10 | 3.22 | 9.72 | 21 | ||||||||||||||||||||
| 12.53 | (13.55 | ) | 17 | 1.14 | 4.05 | 10.84 | 25 | |||||||||||||||||||
| 13.52 | 10.26 | 24 | 1.05 | 3.32 | 9.33 | 21 | ||||||||||||||||||||
| 12.53 | (13.51 | ) | 17 | 1.08 | 4.10 | 10.82 | 25 | |||||||||||||||||||
| 13.51 | 9.96 | 3,148 | 1.30 | 3.05 | 8.02 | 21 | ||||||||||||||||||||
| 12.53 | (13.70 | ) | 2,541 | 1.33 | 3.85 | 10.36 | 25 | |||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 113 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
Global Research Enhanced Index Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | $ | 18.52 | $ | 0.35 | $ | (0.23 | ) | $ | 0.12 | $ | (0.19 | ) | $ | — | $ | (0.19 | ) | |||||||||||
Year Ended October 31, 2015 | 18.77 | 0.37 | (0.15 | ) | 0.22 | (0.22 | ) | (0.25 | ) | (0.47 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 17.33 | 0.34 | 1.35 | 1.69 | (0.15 | ) | (0.10 | ) | (0.25 | ) | ||||||||||||||||||
February 28, 2013 (g) through October 31, 2013 | 15.00 | 0.19 | 2.14 | 2.33 | — | — | — | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 18.43 | 0.26 | (0.23 | ) | 0.03 | — | — | — | ||||||||||||||||||||
Year Ended October 31, 2015 | 18.68 | 0.28 | (0.15 | ) | 0.13 | (0.13 | ) | (0.25 | ) | (0.38 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 17.28 | 0.25 | 1.33 | 1.58 | (0.08 | ) | (0.10 | ) | (0.18 | ) | ||||||||||||||||||
February 28, 2013 (g) through October 31, 2013 | 15.00 | 0.14 | 2.14 | 2.28 | — | — | — | |||||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 18.47 | 0.30 | (0.22 | ) | 0.08 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||
Year Ended October 31, 2015 | 18.72 | 0.32 | (0.15 | ) | 0.17 | (0.17 | ) | (0.25 | ) | (0.42 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 17.30 | 0.29 | 1.35 | 1.64 | (0.12 | ) | (0.10 | ) | (0.22 | ) | ||||||||||||||||||
February 28, 2013 (g) through October 31, 2013 | 15.00 | 0.17 | 2.13 | 2.30 | — | — | — | |||||||||||||||||||||
Select Class | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 18.56 | 0.39 | (0.24 | ) | 0.15 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||
Year Ended October 31, 2015 | 18.81 | 0.39 | (0.12 | ) | 0.27 | (0.27 | ) | (0.25 | ) | (0.52 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 17.37 | 0.39 | 1.33 | 1.72 | (0.18 | ) | (0.10 | ) | (0.28 | ) | ||||||||||||||||||
February 28, 2013 (g) through October 31, 2013 | 15.00 | 0.19 | 2.18 | 2.37 | — | — | — | |||||||||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Commencement of operations. |
| (h) | Certain non-recurring expenses incurred by the Fund were not annualized for the period ended October 31, 2013. |
| (i) | Ratios are disproportionate among classes due to the size of net assets and fixed expenses. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 114 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
Net asset | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 18.45 | 0.68 | % | $ | 20 | 0.59 | % | 1.95 | % | 3.30 | % | 35 | % | |||||||||||||
| 18.52 | 1.22 | 20 | 0.58 | 1.98 | 0.99 | 44 | ||||||||||||||||||||
| 18.77 | 9.90 | 64 | 0.58 | 1.87 | 0.81 | 40 | ||||||||||||||||||||
| 17.33 | 15.53 | 58 | 0.58 | (h) | 1.79 | (h) | 1.62 | (h)(i) | 25 | |||||||||||||||||
| 18.46 | 0.16 | 20 | 1.09 | 1.44 | 3.81 | 35 | ||||||||||||||||||||
| 18.43 | 0.73 | 20 | 1.08 | 1.48 | 1.50 | 44 | ||||||||||||||||||||
| 18.68 | 9.27 | 63 | 1.08 | 1.37 | 1.31 | 40 | ||||||||||||||||||||
| 17.28 | 15.20 | 58 | 1.08 | (h) | 1.29 | (h) | 2.12 | (h)(i) | 25 | |||||||||||||||||
| 18.46 | 0.46 | 20 | 0.84 | 1.70 | 3.55 | 35 | ||||||||||||||||||||
| 18.47 | 0.98 | 20 | 0.83 | 1.73 | 1.25 | 44 | ||||||||||||||||||||
| 18.72 | 9.58 | 63 | 0.83 | 1.62 | 1.06 | 40 | ||||||||||||||||||||
| 17.30 | 15.33 | 58 | 0.83 | (h) | 1.54 | (h) | 1.87 | (h)(i) | 25 | |||||||||||||||||
| 18.37 | 0.91 | 6,907,246 | 0.34 | 2.19 | 0.55 | 35 | ||||||||||||||||||||
| 18.56 | 1.51 | 7,415,218 | 0.33 | 2.06 | 0.56 | 44 | ||||||||||||||||||||
| 18.81 | 10.09 | 3,577,523 | 0.33 | 2.16 | 0.56 | 40 | ||||||||||||||||||||
| 17.37 | 15.80 | 1,895,025 | 0.33 | (h) | 1.73 | (h) | 0.60 | (h)(i) | 25 | |||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 115 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Return of capital | Total distributions | |||||||||||||||||||||||||
Global Unconstrained Equity Fund |
| |||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | $ | 16.12 | $ | 0.27 | (f) | $ | (0.88 | ) | $ | (0.61 | ) | $ | (0.30 | ) | $ | (0.27 | ) | $ | (0.82 | ) | $ | (1.39 | ) | |||||||||
Year Ended October 31, 2015 | 19.55 | 0.11 | (f) | 0.66 | 0.77 | (0.31 | ) | (3.89 | ) | — | (4.20 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.11 | 0.23 | 1.17 | 1.40 | (0.17 | ) | (1.79 | ) | — | (1.96 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.73 | 0.24 | 3.77 | 4.01 | (0.22 | ) | (0.41 | ) | — | (0.63 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.17 | 1.56 | 1.73 | — | (i) | — | — | — | (i) | ||||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.01 | 0.11 | (f) | (0.79 | ) | (0.68 | ) | (0.22 | ) | (0.27 | ) | (0.82 | ) | (1.31 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.43 | 0.04 | (f) | 0.64 | 0.68 | (0.21 | ) | (3.89 | ) | — | (4.10 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.01 | 0.14 | 1.16 | 1.30 | (0.09 | ) | (1.79 | ) | — | (1.88 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.65 | 0.16 | 3.76 | 3.92 | (0.15 | ) | (0.41 | ) | — | (0.56 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.09 | 1.56 | 1.65 | — | — | — | — | ||||||||||||||||||||||||
Class R2 |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.11 | 0.14 | (f) | (0.79 | ) | (0.65 | ) | (0.13 | ) | (0.27 | ) | (0.82 | ) | (1.22 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.49 | 0.08 | (f) | 0.65 | 0.73 | (0.22 | ) | (3.89 | ) | — | (4.11 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.06 | 0.18 | 1.17 | 1.35 | (0.13 | ) | (1.79 | ) | — | (1.92 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.69 | 0.20 | 3.77 | 3.97 | (0.19 | ) | (0.41 | ) | — | (0.60 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.13 | 1.56 | 1.69 | — | — | — | — | ||||||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.21 | 0.24 | (f) | (0.80 | ) | (0.56 | ) | (0.32 | ) | (0.27 | ) | (0.82 | ) | (1.41 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.65 | 0.21 | (f) | 0.64 | 0.85 | (0.40 | ) | (3.89 | ) | — | (4.29 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.19 | 0.31 | 1.19 | 1.50 | (0.25 | ) | (1.79 | ) | — | (2.04 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.79 | 0.32 | 3.79 | 4.11 | (0.30 | ) | (0.41 | ) | — | (0.71 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.23 | 1.57 | 1.80 | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.22 | 0.25 | (f) | (0.80 | ) | (0.55 | ) | (0.35 | ) | (0.27 | ) | (0.82 | ) | (1.44 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.66 | 0.21 | (f) | 0.66 | 0.87 | (0.42 | ) | (3.89 | ) | — | (4.31 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.20 | 0.32 | 1.19 | 1.51 | (0.26 | ) | (1.79 | ) | — | (2.05 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.80 | 0.33 | 3.78 | 4.11 | (0.30 | ) | (0.41 | ) | — | (0.71 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.24 | 1.57 | 1.81 | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||||
Select Class |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.18 | 0.26 | (f) | (0.83 | ) | (0.57 | ) | (0.29 | ) | (0.27 | ) | (0.82 | ) | (1.38 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.60 | 0.19 | (f) | 0.64 | 0.83 | (0.36 | ) | (3.89 | ) | — | (4.25 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.15 | 0.27 | 1.19 | 1.46 | (0.22 | ) | (1.79 | ) | — | (2.01 | ) | |||||||||||||||||||||
Year Ended October 31, 2013 | 16.76 | 0.29 | 3.77 | 4.06 | (0.26 | ) | (0.41 | ) | — | (0.67 | ) | |||||||||||||||||||||
November 30, 2011 (h) through October 31, 2012 | 15.00 | 0.20 | 1.57 | 1.77 | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Not annualized for periods less than one year. |
| (c) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (d) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (e) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (f) | Calculated based upon average shares outstanding. |
| (g) | Certain non-recurring expenses incurred by the Fund were not annualized for the year ended October 31, 2013 and for the period ended October 31, 2012. |
| (h) | Commencement of operations. |
| (i) | Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 116 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (b)(c) | Net assets, end of period (000’s) | Net expenses (d) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (b)(e) | ||||||||||||||||||||
| $ | 14.12 | (3.53 | )% | $ | 417 | 0.74 | % | 1.95 | % | 1.90 | % | 1,256 | % | |||||||||||||
| 16.12 | 4.76 | 244 | 1.00 | 0.67 | 7.57 | 132 | ||||||||||||||||||||
| 19.55 | 7.83 | 75 | 1.35 | 1.27 | 4.32 | 97 | ||||||||||||||||||||
| 20.11 | 24.74 | 70 | 1.35 | (g) | 1.37 | (g) | 5.36 | (g) | 71 | |||||||||||||||||
| 16.73 | 11.55 | 56 | 1.35 | (g) | 1.14 | (g) | 6.89 | (g) | 49 | |||||||||||||||||
| 14.02 | (4.02 | ) | 210 | 1.17 | 0.78 | 11.83 | 1,256 | |||||||||||||||||||
| 16.01 | 4.26 | 317 | 1.48 | 0.21 | 9.92 | 132 | ||||||||||||||||||||
| 19.43 | 7.28 | 74 | 1.85 | 0.77 | 4.82 | 97 | ||||||||||||||||||||
| 20.01 | 24.16 | 69 | 1.85 | (g) | 0.87 | (g) | 5.85 | (g) | 71 | |||||||||||||||||
| 16.65 | 11.00 | 56 | 1.85 | (g) | 0.65 | (g) | 7.38 | (g) | 49 | |||||||||||||||||
| 14.24 | (3.79 | ) | 18 | 0.92 | 1.00 | 13.46 | 1,256 | |||||||||||||||||||
| 16.11 | 4.55 | 20 | 1.46 | 0.45 | 8.67 | 132 | ||||||||||||||||||||
| 19.49 | 7.55 | 75 | 1.60 | 1.02 | 4.56 | 97 | ||||||||||||||||||||
| 20.06 | 24.45 | 69 | 1.60 | (g) | 1.12 | (g) | 5.60 | (g) | 71 | |||||||||||||||||
| 16.69 | 11.27 | 56 | 1.60 | (g) | 0.90 | (g) | 7.14 | (g) | 49 | |||||||||||||||||
| 14.24 | (3.12 | ) | 18 | 0.22 | 1.70 | 12.77 | 1,256 | |||||||||||||||||||
| 16.21 | 5.26 | 20 | 0.76 | 1.15 | 7.97 | 132 | ||||||||||||||||||||
| 19.65 | 8.34 | 76 | 0.90 | 1.72 | 3.86 | 97 | ||||||||||||||||||||
| 20.19 | 25.29 | 70 | 0.90 | (g) | 1.82 | (g) | 4.89 | (g) | 71 | |||||||||||||||||
| 16.79 | 11.99 | 56 | 0.90 | (g) | 1.60 | (g) | 6.45 | (g) | 49 | |||||||||||||||||
| 14.23 | (3.10 | ) | 18 | 0.17 | 1.75 | 12.75 | 1,256 | |||||||||||||||||||
| 16.22 | 5.34 | 20 | 0.71 | 1.20 | 7.91 | 132 | ||||||||||||||||||||
| 19.66 | 8.39 | 76 | 0.85 | 1.77 | 3.81 | 97 | ||||||||||||||||||||
| 20.20 | 25.33 | 70 | 0.85 | (g) | 1.87 | (g) | 4.85 | (g) | 71 | |||||||||||||||||
| 16.80 | 12.06 | 56 | 0.85 | (g) | 1.65 | (g) | 6.40 | (g) | 49 | |||||||||||||||||
| 14.23 | (3.23 | ) | 991 | 0.36 | 1.86 | 5.37 | 1,256 | |||||||||||||||||||
| 16.18 | 5.13 | 1,020 | 0.88 | 1.06 | 7.34 | 132 | ||||||||||||||||||||
| 19.60 | 8.11 | 4,156 | 1.10 | 1.52 | 4.06 | 97 | ||||||||||||||||||||
| 20.15 | 25.04 | 3,844 | 1.10 | (g) | 1.62 | (g) | 5.10 | (g) | 71 | |||||||||||||||||
| 16.76 | 11.77 | 3,075 | 1.10 | (g) | 1.40 | (g) | 6.64 | (g) | 49 | |||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 117 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (a) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
International Equity Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended October 31, 2016 | $ | 14.75 | $ | 0.22 | $ | (0.51 | ) | $ | (0.29 | ) | $ | (0.22 | ) | |||||||
Year Ended October 31, 2015 | 15.25 | 0.23 | (0.50 | ) | (0.27 | ) | (0.23 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.92 | 0.37 | (e) | (0.68 | ) | (0.31 | ) | (0.36 | ) | |||||||||||
Year Ended October 31, 2013 | 13.36 | 0.20 | 2.56 | 2.76 | (0.20 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.61 | 0.22 | 0.74 | 0.96 | (0.21 | ) | ||||||||||||||
Class C |
| |||||||||||||||||||
Year Ended October 31, 2016 | 14.02 | 0.13 | (0.47 | ) | (0.34 | ) | (0.18 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.52 | 0.15 | (0.48 | ) | (0.33 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.20 | 0.26 | (e) | (0.64 | ) | (0.38 | ) | (0.30 | ) | |||||||||||
Year Ended October 31, 2013 | 12.78 | 0.12 | 2.45 | 2.57 | (0.15 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.08 | 0.16 | 0.69 | 0.85 | (0.15 | ) | ||||||||||||||
Class R2 |
| |||||||||||||||||||
Year Ended October 31, 2016 | 14.69 | 0.18 | (0.50 | ) | (0.32 | ) | (0.20 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.19 | 0.20 | (0.51 | ) | (0.31 | ) | (0.19 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.87 | 0.30 | (e) | (0.65 | ) | (0.35 | ) | (0.33 | ) | |||||||||||
Year Ended October 31, 2013 | 13.31 | 0.11 | 2.61 | 2.72 | (0.16 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.58 | 0.15 | 0.77 | 0.92 | (0.19 | ) | ||||||||||||||
Class R5 |
| |||||||||||||||||||
Year Ended October 31, 2016 | 14.97 | 0.27 | (0.49 | ) | (0.22 | ) | (0.28 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.46 | 0.29 | (0.49 | ) | (0.20 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.44 | (e) | (0.69 | ) | (0.25 | ) | (0.42 | ) | |||||||||||
Year Ended October 31, 2013 | 13.52 | 0.27 | 2.60 | 2.87 | (0.26 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.75 | 0.29 | 0.74 | 1.03 | (0.26 | ) | ||||||||||||||
Class R6 |
| |||||||||||||||||||
Year Ended October 31, 2016 | 14.97 | 0.29 | (0.51 | ) | (0.22 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.46 | 0.32 | (0.52 | ) | (0.20 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.45 | (e) | (0.69 | ) | (0.24 | ) | (0.43 | ) | |||||||||||
Year Ended October 31, 2013 | 13.52 | 0.28 | 2.59 | 2.87 | (0.26 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.75 | 0.29 | 0.74 | 1.03 | (0.26 | ) | ||||||||||||||
Select Class |
| |||||||||||||||||||
Year Ended October 31, 2016 | 14.95 | 0.24 | (0.48 | ) | (0.24 | ) | (0.26 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.45 | 0.29 | (0.53 | ) | (0.24 | ) | (0.26 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.39 | (e) | (0.67 | ) | (0.28 | ) | (0.40 | ) | |||||||||||
Year Ended October 31, 2013 | 13.52 | 0.23 | 2.61 | 2.84 | (0.23 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.76 | 0.26 | 0.74 | 1.00 | (0.24 | ) | ||||||||||||||
| (a) | Calculated based upon average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (c) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (d) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (e) | Reflects special dividends paid out during the period by several of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.32, $0.21, $0.25, $0.39, $0.40 and $0.34 for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively, and the net investment income (loss) ratio would have been 2.01%, 1.40%, 1.59%, 2.40%, 2.48% and 2.08% for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 118 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (b) | Net assets, end of period (000’s) | Net expenses (c) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (d) | ||||||||||||||||||||
| $ | 14.24 | (1.83 | )% | $ | 216,932 | 1.31 | % | 1.62 | % | 1.49 | % | 11 | % | |||||||||||||
| 14.75 | (1.89 | ) | 224,370 | 1.31 | 1.50 | 1.59 | 13 | |||||||||||||||||||
| 15.25 | (2.06 | ) | 186,242 | 1.31 | 2.34 | (e) | 1.45 | 6 | ||||||||||||||||||
| 15.92 | 20.85 | 188,590 | 1.30 | 1.33 | 1.47 | 8 | ||||||||||||||||||||
| 13.36 | 7.70 | 98,274 | 1.30 | 1.72 | 1.51 | 5 | ||||||||||||||||||||
| 13.50 | (2.31 | ) | 22,235 | 1.81 | 0.97 | 2.06 | 11 | |||||||||||||||||||
| 14.02 | (2.36 | ) | 28,313 | 1.81 | 1.02 | 2.05 | 13 | |||||||||||||||||||
| 14.52 | (2.59 | ) | 26,299 | 1.81 | 1.73 | (e) | 1.95 | 6 | ||||||||||||||||||
| 15.20 | 20.25 | 23,655 | 1.80 | 0.83 | 1.97 | 8 | ||||||||||||||||||||
| 12.78 | 7.16 | 17,873 | 1.80 | 1.31 | 2.01 | 5 | ||||||||||||||||||||
| 14.17 | (2.08 | ) | 1,461 | 1.56 | 1.28 | 1.95 | 11 | |||||||||||||||||||
| 14.69 | (2.14 | ) | 1,203 | 1.56 | 1.28 | 1.92 | 13 | |||||||||||||||||||
| 15.19 | (2.33 | ) | 1,405 | 1.56 | 1.92 | (e) | 1.70 | 6 | ||||||||||||||||||
| 15.87 | 20.58 | 1,230 | 1.55 | 0.78 | 1.72 | 8 | ||||||||||||||||||||
| 13.31 | 7.45 | 721 | 1.55 | 1.16 | 1.74 | 5 | ||||||||||||||||||||
| 14.47 | (1.34 | ) | 58,836 | 0.86 | 1.93 | 1.02 | 11 | |||||||||||||||||||
| 14.97 | (1.42 | ) | 57,500 | 0.86 | 1.88 | 1.06 | 13 | |||||||||||||||||||
| 15.46 | (1.65 | ) | 95,749 | 0.86 | 2.73 | (e) | 1.00 | 6 | ||||||||||||||||||
| 16.13 | 21.42 | 106,963 | 0.85 | 1.79 | 1.02 | 8 | ||||||||||||||||||||
| 13.52 | 8.19 | 63,767 | 0.85 | 2.24 | 1.05 | 5 | ||||||||||||||||||||
| 14.46 | (1.36 | ) | 3,030,640 | 0.81 | 2.05 | 0.91 | 11 | |||||||||||||||||||
| 14.97 | (1.37 | ) | 2,088,835 | 0.80 | 2.03 | 0.91 | 13 | |||||||||||||||||||
| 15.46 | (1.60 | ) | 1,681,788 | 0.81 | 2.81 | (e) | 0.95 | 6 | ||||||||||||||||||
| 16.13 | 21.47 | 1,248,489 | 0.80 | 1.85 | 0.97 | 8 | ||||||||||||||||||||
| 13.52 | 8.23 | 682,861 | 0.80 | 2.26 | 1.00 | 5 | ||||||||||||||||||||
| 14.45 | (1.50 | ) | 94,362 | 1.06 | 1.69 | 1.24 | 11 | |||||||||||||||||||
| 14.95 | (1.66 | ) | 522,402 | 1.06 | 1.84 | 1.19 | 13 | |||||||||||||||||||
| 15.45 | (1.88 | ) | 494,344 | 1.06 | 2.41 | (e) | 1.20 | 6 | ||||||||||||||||||
| 16.13 | 21.23 | 434,316 | 1.05 | 1.51 | 1.22 | 8 | ||||||||||||||||||||
| 13.52 | 7.91 | 210,375 | 1.05 | 2.02 | 1.25 | 5 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 119 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
International Equity Income Fund |
| |||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | $ | 15.66 | $ | 0.45 | (g) | $ | (1.01 | ) | $ | (0.56 | ) | $ | (0.46 | ) | $ | (0.26 | ) | $ | (0.72 | ) | ||||||||
Year Ended October 31, 2015 | 16.41 | 0.39 | (g) | (0.33 | ) | 0.06 | (0.65 | ) | (0.16 | ) | (0.81 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.67 | 0.91 | (h) | (0.38 | ) | 0.53 | (0.66 | ) | (0.13 | ) | (0.79 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 14.12 | 0.43 | 2.55 | 2.98 | (0.41 | ) | (0.02 | ) | (0.43 | ) | ||||||||||||||||||
Year Ended October 31, 2012 | 13.37 | 0.31 | 0.88 | 1.19 | (0.44 | ) | — | (0.44 | ) | |||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.59 | 0.38 | (g) | (1.01 | ) | (0.63 | ) | (0.40 | ) | (0.26 | ) | (0.66 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.36 | 0.39 | (g) | (0.42 | ) | (0.03 | ) | (0.58 | ) | (0.16 | ) | (0.74 | ) | |||||||||||||||
Year Ended October 31, 2014 | 16.63 | 0.84 | (h) | (0.40 | ) | 0.44 | (0.58 | ) | (0.13 | ) | (0.71 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 14.11 | 0.34 | 2.55 | 2.89 | (0.35 | ) | (0.02 | ) | (0.37 | ) | ||||||||||||||||||
Year Ended October 31, 2012 | 13.35 | 0.36 | 0.77 | 1.13 | (0.37 | ) | — | (0.37 | ) | |||||||||||||||||||
Class R2 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.65 | 0.39 | (g) | (0.98 | ) | (0.59 | ) | (0.44 | ) | (0.26 | ) | (0.70 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.41 | 0.61 | (g) | (0.60 | ) | 0.01 | (0.61 | ) | (0.16 | ) | (0.77 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.67 | 0.87 | (h) | (0.39 | ) | 0.48 | (0.61 | ) | (0.13 | ) | (0.74 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 14.12 | 0.40 | 2.54 | 2.94 | (0.37 | ) | (0.02 | ) | (0.39 | ) | ||||||||||||||||||
Year Ended October 31, 2012 | 13.36 | 0.40 | 0.76 | 1.16 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.70 | 0.49 | (g) | (0.98 | ) | (0.49 | ) | (0.53 | ) | (0.26 | ) | (0.79 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.46 | 0.76 | (g) | (0.63 | ) | 0.13 | (0.73 | ) | (0.16 | ) | (0.89 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.72 | 0.99 | (h) | (0.39 | ) | 0.60 | (0.73 | ) | (0.13 | ) | (0.86 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 14.15 | 0.51 | 2.54 | 3.05 | (0.46 | ) | (0.02 | ) | (0.48 | ) | ||||||||||||||||||
Year Ended October 31, 2012 | 13.38 | 0.50 | 0.76 | 1.26 | (0.49 | ) | — | (0.49 | ) | |||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.69 | 0.51 | (g) | (0.99 | ) | (0.48 | ) | (0.54 | ) | (0.26 | ) | (0.80 | ) | |||||||||||||||
January 30, 2015 (i) through October 31, 2015 | 15.82 | 0.69 | (g) | (0.41 | ) | 0.28 | (0.41 | ) | — | (0.41 | ) | |||||||||||||||||
Select Class |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.70 | 0.46 | (g) | (0.98 | ) | (0.52 | ) | (0.51 | ) | (0.26 | ) | (0.77 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.45 | 0.49 | (g) | (0.37 | ) | 0.12 | (0.71 | ) | (0.16 | ) | (0.87 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.71 | 0.96 | (h) | (0.40 | ) | 0.56 | (0.69 | ) | (0.13 | ) | (0.82 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 14.14 | 0.47 | 2.55 | 3.02 | (0.43 | ) | (0.02 | ) | (0.45 | ) | ||||||||||||||||||
Year Ended October 31, 2012 | 13.37 | 0.47 | 0.76 | 1.23 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Reflects special dividends paid out during the period by several of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.66, $0.59, $0.62, $0.74 and $0.71 for Class A, Class C, Class R2, Class R5 and Select Class Shares, respectively, and the net investment income (loss) ratio would have been 3.94%, 3.53%, 3.74%, 4.44% and 4.25% for Class A, Class C, Class R2, Class R5 and Select Class Shares, respectively. |
| (i) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 120 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 14.38 | (3.60 | )% | $ | 66,722 | 1.24 | % | 3.06 | %(g) | 1.57 | % | 162 | % | |||||||||||||
| 15.66 | 0.29 | 66,499 | 1.25 | 2.42 | (g) | 1.67 | 238 | |||||||||||||||||||
| 16.41 | 3.18 | 74,652 | 1.25 | 5.44 | (h) | 1.67 | 138 | |||||||||||||||||||
| 16.67 | 21.40 | 49,118 | 1.24 | 2.77 | 1.82 | 63 | ||||||||||||||||||||
| 14.12 | 9.09 | 9,003 | 1.25 | 2.21 | 2.31 | 52 | ||||||||||||||||||||
| 14.30 | (4.09 | ) | 11,754 | 1.75 | 2.59 | (g) | 2.12 | 162 | ||||||||||||||||||
| 15.59 | (0.23 | ) | 8,649 | 1.75 | 2.45 | (g) | 2.20 | 238 | ||||||||||||||||||
| 16.36 | 2.67 | 3,530 | 1.75 | 5.03 | (h) | 2.17 | 138 | |||||||||||||||||||
| 16.63 | 20.74 | 1,957 | 1.74 | 2.16 | 2.32 | 63 | ||||||||||||||||||||
| 14.11 | 8.66 | 646 | 1.75 | 2.69 | 2.95 | 52 | ||||||||||||||||||||
| 14.36 | (3.84 | ) | 316 | 1.49 | 2.66 | (g) | 2.39 | 162 | ||||||||||||||||||
| 15.65 | (0.01 | ) | 52 | 1.50 | 3.74 | (g) | 1.89 | 238 | ||||||||||||||||||
| 16.41 | 2.90 | 574 | 1.50 | 5.24 | (h) | 1.92 | 138 | |||||||||||||||||||
| 16.67 | 21.12 | 558 | 1.49 | 2.60 | 2.11 | 63 | ||||||||||||||||||||
| 14.12 | 8.87 | 461 | 1.50 | 2.95 | 2.70 | 52 | ||||||||||||||||||||
| 14.42 | (3.14 | ) | 700 | 0.79 | 3.33 | (g) | 1.29 | 162 | ||||||||||||||||||
| 15.70 | 0.71 | 19 | 0.80 | 4.59 | (g) | 1.16 | 238 | |||||||||||||||||||
| 16.46 | 3.60 | 587 | 0.80 | 5.94 | (h) | 1.22 | 138 | |||||||||||||||||||
| 16.72 | 21.94 | 566 | 0.79 | 3.31 | 1.41 | 63 | ||||||||||||||||||||
| 14.15 | 9.62 | 465 | 0.80 | 3.65 | 2.00 | 52 | ||||||||||||||||||||
| 14.41 | (3.09 | ) | 21 | 0.75 | 3.48 | (g) | 3.06 | 162 | ||||||||||||||||||
| 15.69 | 1.66 | 21 | 0.75 | 5.70 | (g) | 1.15 | 238 | |||||||||||||||||||
| 14.41 | (3.31 | ) | 54,642 | 0.89 | 3.13 | (g) | 1.31 | 162 | ||||||||||||||||||
| 15.70 | 0.66 | 35,177 | 0.91 | 3.00 | (g) | 1.41 | 238 | |||||||||||||||||||
| 16.45 | 3.39 | 34,719 | 1.00 | 5.75 | (h) | 1.42 | 138 | |||||||||||||||||||
| 16.71 | 21.73 | 55,485 | 0.99 | 3.04 | 1.59 | 63 | ||||||||||||||||||||
| 14.14 | 9.43 | 27,292 | 1.00 | 3.44 | 2.20 | 52 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 121 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (a) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
International Opportunities Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2016 | $ | 14.48 | $ | 0.25 | $ | (0.93 | ) | $ | (0.68 | ) | $ | (0.03 | ) | |||||||
Year Ended October 31, 2015 | 14.80 | 0.20 | (0.23 | ) | (0.03 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.25 | 0.36 | (0.69 | ) | (0.33 | ) | (0.12 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.45 | 0.25 | 2.83 | 3.08 | (0.28 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.00 | 0.23 | 0.56 | 0.79 | (0.34 | ) | ||||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2016 | 14.04 | 0.14 | (0.88 | ) | (0.74 | ) | — | (e) | ||||||||||||
Year Ended October 31, 2015 | 14.41 | 0.10 | (0.19 | ) | (0.09 | ) | (0.28 | ) | ||||||||||||
Year Ended October 31, 2014 | 14.88 | 0.27 | (0.66 | ) | (0.39 | ) | (0.08 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.15 | 0.16 | 2.77 | 2.93 | (0.20 | ) | ||||||||||||||
Year Ended October 31, 2012 | 11.65 | 0.18 | 0.55 | 0.73 | (0.23 | ) | ||||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2016 | 14.75 | 0.32 | (0.92 | ) | (0.60 | ) | (0.10 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.13 | 0.26 | (0.21 | ) | 0.05 | (0.43 | ) | |||||||||||||
Year Ended October 31, 2014 | 15.57 | 0.44 | (0.70 | ) | (0.26 | ) | (0.18 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.69 | 0.32 | 2.88 | 3.20 | (0.32 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.20 | 0.31 | 0.56 | 0.87 | (0.38 | ) | ||||||||||||||
Institutional Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 14.76 | 0.30 | (0.93 | ) | (0.63 | ) | (0.08 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.13 | 0.24 | (0.20 | ) | 0.04 | (0.41 | ) | |||||||||||||
Year Ended October 31, 2014 | 15.57 | 0.42 | (0.69 | ) | (0.27 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.69 | 0.31 | 2.88 | 3.19 | (0.31 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.20 | 0.30 | 0.56 | 0.86 | (0.37 | ) | ||||||||||||||
Select Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 14.68 | 0.28 | (0.93 | ) | (0.65 | ) | (0.03 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.06 | 0.25 | (0.24 | ) | 0.01 | (0.39 | ) | |||||||||||||
Year Ended October 31, 2014 | 15.50 | 0.40 | (0.69 | ) | (0.29 | ) | (0.15 | ) | ||||||||||||
Year Ended October 31, 2013 | 12.64 | 0.29 | 2.87 | 3.16 | (0.30 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.15 | 0.28 | 0.56 | 0.84 | (0.35 | ) | ||||||||||||||
| (a) | Calculated based upon average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (c) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (d) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (e) | Amount rounds to less than 0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 122 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (b) | Net assets, end of period (000’s) | Net expenses (c) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (d) | ||||||||||||||||||||
| $ | 13.77 | (4.69 | )% | $ | 171,940 | 1.29 | % | 1.83 | % | 1.29 | % | 48 | % | |||||||||||||
| 14.48 | (0.15 | ) | 155,397 | 1.31 | 1.34 | 1.43 | 43 | |||||||||||||||||||
| 14.80 | (2.18 | ) | 110,667 | 1.23 | 2.39 | 1.24 | 55 | |||||||||||||||||||
| 15.25 | 25.09 | 123,807 | 1.25 | 1.78 | 1.26 | 36 | ||||||||||||||||||||
| 12.45 | 6.95 | 67,472 | 1.29 | 1.91 | 1.30 | 45 | ||||||||||||||||||||
| 13.30 | (5.26 | ) | 1,565 | 1.89 | 1.06 | 1.91 | 48 | |||||||||||||||||||
| 14.04 | (0.63 | ) | 1,743 | 1.83 | 0.70 | 1.83 | 43 | |||||||||||||||||||
| 14.41 | (2.65 | ) | 1,441 | 1.73 | 1.80 | 1.74 | 55 | |||||||||||||||||||
| 14.88 | 24.41 | 1,109 | 1.75 | 1.19 | 1.76 | 36 | ||||||||||||||||||||
| 12.15 | 6.47 | 531 | 1.79 | 1.55 | 1.80 | 45 | ||||||||||||||||||||
| 14.05 | (4.09 | ) | 2,522,883 | 0.71 | 2.29 | 0.71 | 48 | |||||||||||||||||||
| 14.75 | 0.41 | 2,003,409 | 0.71 | 1.75 | 0.72 | 43 | ||||||||||||||||||||
| 15.13 | (1.67 | ) | 1,539,613 | 0.73 | 2.82 | 0.74 | 55 | |||||||||||||||||||
| 15.57 | 25.71 | 1,204,314 | 0.75 | 2.27 | 0.76 | 36 | ||||||||||||||||||||
| 12.69 | 7.59 | 692,117 | 0.79 | 2.58 | 0.79 | 45 | ||||||||||||||||||||
| 14.05 | (4.25 | ) | 49,483 | 0.82 | 2.11 | 0.83 | 48 | |||||||||||||||||||
| 14.76 | 0.33 | 55,273 | 0.82 | 1.61 | 0.83 | 43 | ||||||||||||||||||||
| 15.13 | (1.76 | ) | 56,348 | 0.83 | 2.71 | 0.84 | 55 | |||||||||||||||||||
| 15.57 | 25.60 | 60,310 | 0.85 | 2.18 | 0.86 | 36 | ||||||||||||||||||||
| 12.69 | 7.45 | 41,574 | 0.89 | 2.47 | 0.90 | 45 | ||||||||||||||||||||
| 14.00 | (4.40 | ) | 23,999 | 1.05 | 1.99 | 1.05 | 48 | |||||||||||||||||||
| 14.68 | 0.13 | 24,548 | 1.00 | 1.71 | 1.01 | 43 | ||||||||||||||||||||
| 15.06 | (1.91 | ) | 47,581 | 0.98 | 2.55 | 0.99 | 55 | |||||||||||||||||||
| 15.50 | 25.38 | 47,743 | 0.99 | 2.04 | 1.01 | 36 | ||||||||||||||||||||
| 12.64 | 7.28 | 33,029 | 1.04 | 2.35 | 1.05 | 45 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 123 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (a) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
International Research Enhanced Equity Fund |
| |||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | $ | 16.54 | $ | 0.40 | (e) | $ | (0.89 | ) | $ | (0.49 | ) | $ | (0.36 | ) | $ | (0.15 | ) | $ | (0.51 | ) | ||||||||
Year Ended October 31, 2015 | 20.38 | 0.43 | (0.60 | ) | (0.17 | ) | (0.40 | ) | (3.27 | ) | (3.67 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 21.20 | 0.47 | (0.56 | ) | (0.09 | ) | (0.39 | ) | (0.34 | ) | (0.73 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 17.24 | 0.38 | 4.00 | 4.38 | (0.42 | ) | — | (0.42 | ) | |||||||||||||||||||
Year Ended October 31, 2012 | 16.83 | 0.37 | 0.45 | 0.82 | (0.41 | ) | — | (0.41 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 15.85 | 0.31 | (e) | (0.85 | ) | (0.54 | ) | (0.28 | ) | (0.15 | ) | (0.43 | ) | |||||||||||||||
Year Ended October 31, 2015 | 19.68 | 0.33 | (0.58 | ) | (0.25 | ) | (0.31 | ) | (3.27 | ) | (3.58 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 20.51 | 0.36 | (0.56 | ) | (0.20 | ) | (0.29 | ) | (0.34 | ) | (0.63 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 16.68 | 0.27 | 3.86 | 4.13 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||
Year Ended October 31, 2012 | 16.27 | 0.25 | 0.44 | 0.69 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.21 | 0.31 | (e) | (0.84 | ) | (0.53 | ) | (0.34 | ) | (0.15 | ) | (0.49 | ) | |||||||||||||||
Year Ended October 31, 2015 | 20.07 | 0.37 | (0.58 | ) | (0.21 | ) | (0.38 | ) | (3.27 | ) | (3.65 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 20.91 | 0.40 | (0.54 | ) | (0.14 | ) | (0.36 | ) | (0.34 | ) | (0.70 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 17.03 | 0.35 | 3.92 | 4.27 | (0.39 | ) | — | (0.39 | ) | |||||||||||||||||||
Year Ended October 31, 2012 | 16.66 | 0.32 | 0.45 | 0.77 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
Select Class | ||||||||||||||||||||||||||||
Year Ended October 31, 2016 | 16.70 | 0.46 | (e) | (0.92 | ) | (0.46 | ) | (0.41 | ) | (0.15 | ) | (0.56 | ) | |||||||||||||||
Year Ended October 31, 2015 | 20.54 | 0.48 | (0.60 | ) | (0.12 | ) | (0.45 | ) | (3.27 | ) | (3.72 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 21.36 | 0.52 | (0.56 | ) | (0.04 | ) | (0.44 | ) | (0.34 | ) | (0.78 | ) | ||||||||||||||||
Year Ended October 31, 2013 | 17.36 | 0.40 | 4.06 | 4.46 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
Year Ended October 31, 2012 | 16.96 | 0.41 | 0.45 | 0.86 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
| (a) | Calculated based upon average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (c) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (d) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (e) | Net investment income may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (f) | Amount rounds to less than 0.005%. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 124 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (b) | Net assets, end of period (000’s) | Net expenses (c) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (d) | ||||||||||||||||||||
| $ | 15.54 | (2.94 | )% | $ | 69,626 | 0.60 | % | 2.60 | %(e) | 1.02 | % | 24 | % | |||||||||||||
| 16.54 | (0.29 | ) | 82,667 | 0.60 | 2.51 | 0.99 | 39 | |||||||||||||||||||
| 20.38 | (0.40 | ) | 96,325 | 0.59 | 2.23 | 1.10 | 63 | |||||||||||||||||||
| 21.20 | 25.84 | 108,193 | 0.75 | 2.04 | 1.35 | 51 | ||||||||||||||||||||
| 17.24 | 5.16 | 96,191 | 1.07 | 2.27 | 1.31 | 19 | ||||||||||||||||||||
| 14.88 | (3.41 | ) | 13,507 | 1.10 | 2.14 | (e) | 1.55 | 24 | ||||||||||||||||||
| 15.85 | (0.77 | ) | 18,423 | 1.10 | 2.01 | 1.52 | 39 | |||||||||||||||||||
| 19.68 | (0.93 | ) | 20,724 | 1.09 | 1.75 | 1.60 | 63 | |||||||||||||||||||
| 20.51 | 25.09 | 21,802 | 1.30 | 1.49 | 1.85 | 51 | ||||||||||||||||||||
| 16.68 | 4.43 | 16,291 | 1.79 | 1.57 | 1.81 | 19 | ||||||||||||||||||||
| 15.19 | (3.22 | ) | 10,222 | 0.84 | 2.08 | (e) | 1.34 | 24 | ||||||||||||||||||
| 16.21 | (0.50 | ) | 3,331 | 0.85 | 2.22 | 1.41 | 39 | |||||||||||||||||||
| 20.07 | (0.66 | ) | 2,521 | 0.84 | 1.95 | 1.33 | 63 | |||||||||||||||||||
| 20.91 | 25.52 | 1,957 | 0.95 | 1.88 | 1.61 | 51 | ||||||||||||||||||||
| 17.03 | 4.94 | 786 | 1.32 | 1.97 | 1.56 | 19 | ||||||||||||||||||||
| 15.68 | (2.72 | ) | 1,241,856 | 0.34 | 2.98 | (e) | 0.59 | 24 | ||||||||||||||||||
| 16.70 | 0.00 | (f) | 779,908 | 0.35 | 2.79 | 0.60 | 39 | |||||||||||||||||||
| 20.54 | (0.16 | ) | 562,180 | 0.34 | 2.45 | 0.84 | 63 | |||||||||||||||||||
| 21.36 | 26.18 | 464,273 | 0.53 | 2.10 | 1.09 | 51 | ||||||||||||||||||||
| 17.36 | 5.40 | 469,065 | 0.82 | 2.51 | 1.06 | 19 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 125 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
International Unconstrained Equity Fund |
| |||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | $ | 17.61 | $ | 0.22 | (f)(g) | $ | (0.55 | ) | $ | (0.33 | ) | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | |||||||||
Year Ended October 31, 2015 | 18.59 | 0.09 | (f)(g) | 0.39 | 0.48 | (0.17 | ) | (1.29 | ) | (1.46 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.59 | 0.13 | (h) | (0.65 | ) | (0.52 | ) | (0.17 | ) | (1.31 | ) | (1.48 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.28 | 0.15 | 3.62 | 3.77 | (0.11 | ) | (0.35 | ) | (0.46 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.17 | 2.11 | 2.28 | — | — | — | |||||||||||||||||||||
Class C |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 17.45 | 0.13 | (f)(g) | (0.53 | ) | (0.40 | ) | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.44 | (0.02 | )(f)(g) | 0.39 | 0.37 | (0.07 | ) | (1.29 | ) | (1.36 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.47 | 0.09 | (h) | (0.69 | ) | (0.60 | ) | (0.12 | ) | (1.31 | ) | (1.43 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.20 | 0.07 | 3.59 | 3.66 | (0.04 | ) | (0.35 | ) | (0.39 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.10 | 2.10 | 2.20 | — | — | — | |||||||||||||||||||||
Class R2 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 17.57 | 0.15 | (f)(g) | (0.51 | ) | (0.36 | ) | — | — | — | ||||||||||||||||||
Year Ended October 31, 2015 | 18.55 | 0.03 | (f)(g) | 0.39 | 0.42 | (0.11 | ) | (1.29 | ) | (1.40 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.53 | 0.12 | (h) | (0.68 | ) | (0.56 | ) | (0.11 | ) | (1.31 | ) | (1.42 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.24 | 0.12 | 3.59 | 3.71 | (0.07 | ) | (0.35 | ) | (0.42 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.14 | 2.10 | 2.24 | — | — | — | |||||||||||||||||||||
Class R5 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 17.75 | 0.27 | (f)(g) | (0.52 | ) | (0.25 | ) | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.72 | 0.16 | (f)(g) | 0.39 | 0.55 | (0.23 | ) | (1.29 | ) | (1.52 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.69 | 0.24 | (h) | (0.67 | ) | (0.43 | ) | (0.23 | ) | (1.31 | ) | (1.54 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.35 | 0.25 | 3.61 | 3.86 | (0.17 | ) | (0.35 | ) | (0.52 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.24 | 2.11 | 2.35 | — | — | — | |||||||||||||||||||||
Class R6 |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 17.76 | 0.29 | (f)(g) | (0.52 | ) | (0.23 | ) | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.73 | (0.01 | )(f)(g) | 0.57 | 0.56 | (0.24 | ) | (1.29 | ) | (1.53 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.70 | 0.25 | (h) | (0.67 | ) | (0.42 | ) | (0.24 | ) | (1.31 | ) | (1.55 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.36 | 0.26 | 3.61 | 3.87 | (0.18 | ) | (0.35 | ) | (0.53 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.25 | 2.11 | 2.36 | — | — | — | |||||||||||||||||||||
Select Class |
| |||||||||||||||||||||||||||
Year Ended October 31, 2016 | 17.71 | 0.24 | (f)(g) | (0.50 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||
Year Ended October 31, 2015 | 18.67 | 0.15 | (f)(g) | 0.38 | 0.53 | (0.20 | ) | (1.29 | ) | (1.49 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.64 | 0.21 | (h) | (0.67 | ) | (0.46 | ) | (0.20 | ) | (1.31 | ) | (1.51 | ) | |||||||||||||||
Year Ended October 31, 2013 | 17.32 | 0.21 | 3.60 | 3.81 | (0.14 | ) | (0.35 | ) | (0.49 | ) | ||||||||||||||||||
November 30, 2011 (j) through October 31, 2012 | 15.00 | 0.21 | 2.11 | 2.32 | — | — | — | |||||||||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Not annualized for periods less than one year. |
| (c) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (d) | Includes interest expense, if applicable, which is less than 0.01% unless otherwise noted. |
| (e) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (f) | Calculated based upon average shares outstanding. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Reflects special dividends paid out during the period by one of the Fund’s holdings. Had the Fund not received the special dividend, the net investment income (loss) per share would have been $0.10, $0.06, $0.08, $0.20, $0.22 and $0.17 for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively and the net investment income (loss) ratio would have been 0.80%, 0.37%, 0.48%, 1.18%, 1.23% and 0.99% for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively. |
| (i) | Certain non-recurring expenses incurred by the Fund were not annualized for the year ended October 31, 2013 and for the period ended October 31, 2012. |
| (j) | Commencement of operations. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 126 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (b)(c) | Net assets, end of period (000’s) | Net expenses (d) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (b)(e) | ||||||||||||||||||||
| $ | 17.24 | (1.86 | )% | $ | 14,034 | 1.24 | % | 1.28 | %(g) | 1.61 | % | 51 | % | |||||||||||||
| 17.61 | 3.04 | 5,824 | 1.24 | 0.49 | (g) | 2.31 | 42 | |||||||||||||||||||
| 18.59 | (2.47 | ) | 351 | 1.32 | 0.98 | (h) | 5.09 | 63 | ||||||||||||||||||
| 20.59 | 22.23 | 83 | 1.32 | (i) | 0.89 | (i) | 7.99 | (i) | 65 | |||||||||||||||||
| 17.28 | 15.20 | 58 | 1.32 | (i) | 1.17 | (i) | 6.99 | (i) | 40 | |||||||||||||||||
| 17.04 | (2.28 | ) | 4,626 | 1.74 | 0.75 | (g) | 2.14 | 51 | ||||||||||||||||||
| 17.45 | 2.39 | 3,439 | 1.74 | (0.12 | )(g) | 2.79 | 42 | |||||||||||||||||||
| 18.44 | (2.91 | ) | 137 | 1.82 | 0.55 | (h) | 6.19 | 63 | ||||||||||||||||||
| 20.47 | 21.61 | 76 | 1.82 | (i) | 0.40 | (i) | 8.35 | (i) | 65 | |||||||||||||||||
| 17.20 | 14.67 | 57 | 1.82 | (i) | 0.67 | (i) | 7.47 | (i) | 40 | |||||||||||||||||
| 17.21 | (2.05 | ) | 20 | 1.49 | 0.87 | (g) | 4.37 | 51 | ||||||||||||||||||
| 17.57 | 2.67 | 20 | 1.51 | 0.19 | (g) | 5.11 | 42 | |||||||||||||||||||
| 18.55 | (2.68 | ) | 68 | 1.57 | 0.66 | (h) | 6.05 | 63 | ||||||||||||||||||
| 20.53 | 21.92 | 70 | 1.57 | (i) | 0.67 | (i) | 8.01 | (i) | 65 | |||||||||||||||||
| 17.24 | 14.93 | 57 | 1.57 | (i) | 0.92 | (i) | 7.23 | (i) | 40 | |||||||||||||||||
| 17.44 | (1.38 | ) | 20 | 0.80 | 1.57 | (g) | 3.59 | 51 | ||||||||||||||||||
| 17.75 | 3.43 | 20 | 0.81 | 0.89 | (g) | 4.43 | 42 | |||||||||||||||||||
| 18.72 | (1.99 | ) | 70 | 0.87 | 1.36 | (h) | 5.34 | 63 | ||||||||||||||||||
| 20.69 | 22.76 | 71 | 0.87 | (i) | 1.37 | (i) | 7.31 | (i) | 65 | |||||||||||||||||
| 17.35 | 15.67 | 58 | 0.87 | (i) | 1.62 | (i) | 6.54 | (i) | 40 | |||||||||||||||||
| 17.45 | (1.29 | ) | 81,146 | 0.74 | 1.70 | (g) | 1.02 | 51 | ||||||||||||||||||
| 17.76 | 3.48 | 5,335 | 0.74 | (0.05 | )(g) | 2.87 | 42 | |||||||||||||||||||
| 18.73 | (1.95 | ) | 70 | 0.82 | 1.41 | (h) | 5.29 | 63 | ||||||||||||||||||
| 20.70 | 22.80 | 71 | 0.82 | (i) | 1.42 | (i) | 7.26 | (i) | 65 | |||||||||||||||||
| 17.36 | 15.73 | 58 | 0.82 | (i) | 1.67 | (i) | 6.49 | (i) | 40 | |||||||||||||||||
| 17.45 | (1.47 | ) | 9,929 | 0.89 | 1.41 | (g) | 1.35 | 51 | ||||||||||||||||||
| 17.71 | 3.29 | 59,858 | 0.89 | 0.83 | (g) | 1.84 | 42 | |||||||||||||||||||
| 18.67 | (2.18 | ) | 3,868 | 1.07 | 1.17 | (h) | 5.55 | 63 | ||||||||||||||||||
| 20.64 | 22.49 | 3,925 | 1.07 | (i) | 1.17 | (i) | 7.52 | (i) | 65 | |||||||||||||||||
| 17.32 | 15.47 | 3,175 | 1.07 | (i) | 1.42 | (i) | 6.74 | (i) | 40 | |||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 127 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
International Value Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2016 | $ | 13.02 | $ | 0.23 | $ | (0.88 | ) | $ | (0.65 | ) | $ | (0.14 | ) | |||||||
Year Ended October 31, 2015 | 14.14 | 0.18 | (g) | (0.83 | ) | (0.65 | ) | (0.47 | ) | |||||||||||
Year Ended October 31, 2014 | 15.02 | 0.47 | (g)(h) | (1.07 | ) | (0.60 | ) | (0.28 | ) | |||||||||||
Year Ended October 31, 2013 | 12.18 | 0.22 | 2.91 | 3.13 | (0.29 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.05 | 0.31 | 0.21 | 0.52 | (0.39 | ) | ||||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.65 | 0.17 | (0.87 | ) | (0.70 | ) | (0.07 | ) | ||||||||||||
Year Ended October 31, 2015 | 13.72 | 0.10 | (g) | (0.78 | ) | (0.68 | ) | (0.39 | ) | |||||||||||
Year Ended October 31, 2014 | 14.61 | 0.38 | (g)(h) | (1.05 | ) | (0.67 | ) | (0.22 | ) | |||||||||||
Year Ended October 31, 2013 | 11.84 | 0.16 | 2.83 | 2.99 | (0.22 | ) | ||||||||||||||
Year Ended October 31, 2012 | 11.72 | 0.25 | 0.19 | 0.44 | (0.32 | ) | ||||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2016 | 12.83 | 0.19 | (0.87 | ) | (0.68 | ) | (0.11 | ) | ||||||||||||
Year Ended October 31, 2015 | 13.93 | 0.14 | (g) | (0.81 | ) | (0.67 | ) | (0.43 | ) | |||||||||||
Year Ended October 31, 2014 | 14.78 | 0.42 | (g)(h) | (1.05 | ) | (0.63 | ) | (0.22 | ) | |||||||||||
Year Ended October 31, 2013 | 11.99 | 0.18 | 2.88 | 3.06 | (0.27 | ) | ||||||||||||||
Year Ended October 31, 2012 | 11.86 | 0.28 | 0.19 | 0.47 | (0.34 | ) | ||||||||||||||
Class R5 | ||||||||||||||||||||
September 9, 2016 (i) through October 31, 2016 | �� | 12.55 | 0.03 | (0.07 | ) | (0.04 | ) | — | ||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2016 | 13.31 | 0.37 | (0.96 | ) | (0.59 | ) | (0.21 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.42 | 0.18 | (g) | (0.76 | ) | (0.58 | ) | (0.53 | ) | |||||||||||
Year Ended October 31, 2014 | 15.29 | 0.54 | (g)(h) | (1.09 | ) | (0.55 | ) | (0.32 | ) | |||||||||||
Year Ended October 31, 2013 | 12.38 | 0.30 | 2.96 | 3.26 | (0.35 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.26 | 0.37 | 0.21 | 0.58 | (0.46 | ) | ||||||||||||||
Institutional Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 13.29 | 0.31 | (0.93 | ) | (0.62 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.41 | 0.23 | (g) | (0.83 | ) | (0.60 | ) | (0.52 | ) | |||||||||||
Year Ended October 31, 2014 | 15.29 | 0.53 | (g)(h) | (1.09 | ) | (0.56 | ) | (0.32 | ) | |||||||||||
Year Ended October 31, 2013 | 12.38 | 0.29 | 2.95 | 3.24 | (0.33 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.26 | 0.36 | 0.20 | 0.56 | (0.44 | ) | ||||||||||||||
Select Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 13.37 | 0.28 | (0.91 | ) | (0.63 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.48 | 0.23 | (g) | (0.84 | ) | (0.61 | ) | (0.50 | ) | |||||||||||
Year Ended October 31, 2014 | 15.19 | 0.45 | (g)(h) | (1.04 | ) | (0.59 | ) | (0.12 | ) | |||||||||||
Year Ended October 31, 2013 | 12.31 | 0.27 | 2.93 | 3.20 | (0.32 | ) | ||||||||||||||
Year Ended October 31, 2012 | 12.19 | 0.34 | 0.21 | 0.55 | (0.43 | ) | ||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Reflects special dividends paid out during the period by several of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.39, $0.30, $0.34, $0.46, $0.45 and $0.37 for Class A, Class C, Class R2, Class R6, Institutional Class and Select Class Shares, respectively and the net investment income (loss) ratio would have been 2.67%, 2.13%, 2.39%, 3.06%, 2.99% and 2.44% for Class A, Class C, Class R2, Class R6, Institutional Class and Select Class Shares, respectively. |
| (i) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 128 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, | Net expenses (e) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 12.23 | (5.01 | )% | $ | 573,449 | 1.35 | % | 1.91 | % | 1.43 | % | 61 | % | |||||||||||||
| 13.02 | (4.63 | ) | 695,251 | 1.35 | 1.31 | (g) | 1.45 | 74 | ||||||||||||||||||
| 14.14 | (4.09 | ) | 491,010 | 1.33 | 3.19 | (g)(h) | 1.36 | 59 | ||||||||||||||||||
| 15.02 | 26.13 | 221,077 | 1.33 | 1.66 | 1.35 | 66 | ||||||||||||||||||||
| 12.18 | 4.64 | 124,691 | 1.35 | 2.66 | 1.37 | 62 | ||||||||||||||||||||
| 11.88 | (5.54 | ) | 24,453 | 1.85 | 1.43 | 1.91 | 61 | |||||||||||||||||||
| 12.65 | (5.01 | ) | 31,296 | 1.85 | 0.79 | (g) | 1.90 | 74 | ||||||||||||||||||
| 13.72 | (4.64 | ) | 31,176 | 1.83 | 2.65 | (g)(h) | 1.86 | 59 | ||||||||||||||||||
| 14.61 | 25.58 | 22,682 | 1.83 | 1.19 | 1.85 | 66 | ||||||||||||||||||||
| 11.84 | 4.04 | 14,311 | 1.85 | 2.23 | 1.87 | 62 | ||||||||||||||||||||
| 12.04 | (5.28 | ) | 1,182 | 1.59 | 1.65 | 1.91 | 61 | |||||||||||||||||||
| 12.83 | (4.84 | ) | 1,929 | 1.60 | 1.01 | (g) | 2.01 | 74 | ||||||||||||||||||
| 13.93 | (4.33 | ) | 1,768 | 1.58 | 2.91 | (g)(h) | 1.61 | 59 | ||||||||||||||||||
| 14.78 | 25.91 | 1,249 | 1.59 | 1.39 | 1.60 | 66 | ||||||||||||||||||||
| 11.99 | 4.27 | 881 | 1.60 | 2.43 | 1.62 | 62 | ||||||||||||||||||||
| 12.51 | (0.32 | ) | 20 | 0.79 | 1.52 | 0.79 | 61 | |||||||||||||||||||
| 12.51 | (4.45 | ) | 27,998 | 0.72 | 3.00 | 0.73 | 61 | |||||||||||||||||||
| 13.31 | (4.04 | ) | 2,354 | 0.73 | 1.32 | (g) | 0.73 | 74 | ||||||||||||||||||
| 14.42 | (3.64 | ) | 30,992 | 0.83 | 3.58 | (g)(h) | 0.84 | 59 | ||||||||||||||||||
| 15.29 | 26.84 | 107,313 | 0.84 | 2.12 | 0.85 | 66 | ||||||||||||||||||||
| 12.38 | 5.11 | 25,945 | 0.84 | 3.06 | 0.87 | 62 | ||||||||||||||||||||
| 12.50 | (4.63 | ) | 523,251 | 0.90 | 2.53 | 0.91 | 61 | |||||||||||||||||||
| 13.29 | (4.23 | ) | 1,480,321 | 0.95 | 1.63 | (g) | 0.99 | 74 | ||||||||||||||||||
| 14.41 | (3.75 | ) | 2,932,420 | 0.93 | 3.51 | (g)(h) | 0.96 | 59 | ||||||||||||||||||
| 15.29 | 26.72 | 1,087,334 | 0.94 | 2.08 | 0.95 | 66 | ||||||||||||||||||||
| 12.38 | 5.00 | 639,798 | 0.94 | 3.03 | 0.97 | 62 | ||||||||||||||||||||
| 12.57 | (4.74 | ) | 157,867 | 1.01 | 2.28 | 1.02 | 61 | |||||||||||||||||||
| 13.37 | (4.28 | ) | 233,045 | 1.03 | 1.62 | (g) | 1.03 | 74 | ||||||||||||||||||
| 14.48 | (3.90 | ) | 300,712 | 1.08 | 2.96 | (g)(h) | 1.10 | 59 | ||||||||||||||||||
| 15.19 | 26.46 | 1,634,392 | 1.09 | 1.99 | 1.10 | 66 | ||||||||||||||||||||
| 12.31 | 4.87 | 1,458,864 | 1.10 | 2.92 | 1.12 | 62 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 129 | ||||||
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
| Per share operating performance | ||||||||||||||||||||
| Investment operations | Distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
Intrepid International Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2016 | $ | 19.36 | $ | 0.40 | (g) | $ | (0.99 | ) | $ | (0.59 | ) | $ | (0.33 | ) | ||||||
Year Ended October 31, 2015 | 19.49 | 0.34 | (g) | (0.26 | ) | 0.08 | (0.21 | ) | ||||||||||||
Year Ended October 31, 2014 | 19.79 | 0.39 | (g) | (0.45 | ) | (0.06 | ) | (0.24 | ) | |||||||||||
Year Ended October 31, 2013 | 15.90 | 0.25 | 3.88 | 4.13 | (0.24 | ) | ||||||||||||||
Year Ended October 31, 2012 | 15.32 | 0.25 | 0.49 | 0.74 | (0.16 | ) | ||||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2016 | 19.52 | 0.28 | (g) | (0.97 | ) | (0.69 | ) | (0.26 | ) | |||||||||||
Year Ended October 31, 2015 | 19.63 | 0.23 | (g) | (0.24 | ) | (0.01 | ) | (0.10 | ) | |||||||||||
Year Ended October 31, 2014 | 19.92 | 0.36 | (g) | (0.52 | ) | (0.16 | ) | (0.13 | ) | |||||||||||
Year Ended October 31, 2013 | 16.00 | 0.17 | 3.90 | 4.07 | (0.15 | ) | ||||||||||||||
Year Ended October 31, 2012 | 15.36 | 0.18 | 0.50 | 0.68 | (0.04 | ) | ||||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2016 | 19.21 | 0.36 | (g) | (1.01 | ) | (0.65 | ) | (0.27 | ) | |||||||||||
Year Ended October 31, 2015 | 19.31 | 0.38 | (g) | (0.34 | ) | 0.04 | (0.14 | ) | ||||||||||||
Year Ended October 31, 2014 | 19.61 | 0.40 | (g) | (0.53 | ) | (0.13 | ) | (0.17 | ) | |||||||||||
Year Ended October 31, 2013 | 15.74 | 0.20 | 3.86 | 4.06 | (0.19 | ) | ||||||||||||||
Year Ended October 31, 2012 | 15.21 | 0.19 | 0.50 | 0.69 | (0.16 | ) | ||||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2016 | 19.84 | 0.49 | (g) | (1.01 | ) | (0.52 | ) | (0.41 | ) | |||||||||||
May 29, 2015 (h) through October 31, 2015 | 21.08 | 0.12 | (g) | (1.36 | ) | (1.24 | ) | — | ||||||||||||
Institutional Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 19.83 | 0.41 | (g) | (0.94 | ) | (0.53 | ) | (0.08 | ) | |||||||||||
Year Ended October 31, 2015 | 19.95 | 0.52 | (g) | (0.34 | ) | 0.18 | (0.30 | ) | ||||||||||||
Year Ended October 31, 2014 | 20.23 | 0.49 | (g) | (0.46 | ) | 0.03 | (0.31 | ) | ||||||||||||
Year Ended October 31, 2013 | 16.24 | 0.34 | 3.97 | 4.31 | (0.32 | ) | ||||||||||||||
Year Ended October 31, 2012 | 15.66 | 0.33 | 0.50 | 0.83 | (0.25 | ) | ||||||||||||||
Select Class | ||||||||||||||||||||
Year Ended October 31, 2016 | 20.13 | 0.46 | (g) | (1.01 | ) | (0.55 | ) | (0.38 | ) | |||||||||||
Year Ended October 31, 2015 | 20.22 | 0.42 | (g) | (0.26 | ) | 0.16 | (0.25 | ) | ||||||||||||
Year Ended October 31, 2014 | 20.51 | 0.51 | (g) | (0.53 | ) | (0.02 | ) | (0.27 | ) | |||||||||||
Year Ended October 31, 2013 | 16.46 | 0.31 | 4.01 | 4.32 | (0.27 | ) | ||||||||||||||
Year Ended October 31, 2012 | 15.85 | 0.30 | 0.51 | 0.81 | (0.20 | ) | ||||||||||||||
| (a) | Annualized for periods less than one year, unless otherwise noted. |
| (b) | Calculated based upon average shares outstanding. |
| (c) | Not annualized for periods less than one year. |
| (d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| (e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
| (f) | Portfolio turnover is calculated by dividing the lesser of total purchases or sales of portfolio securities for the reporting period by the monthly average value of portfolio securities owned during the reporting period. Excluded from both the numerator and denominator are amounts relating to derivatives and securities whose maturities or expiration dates at the time of acquisition were one year or less. |
| (g) | Net investment income (loss) may appear disproportionate among the classes due to the timing of recognition of income and changes in the relative size of the classes. |
| (h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
| 130 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
| Ratios to average net assets (a) | ||||||||||||||||||||||||||
| Net asset value, end of period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate (c)(f) | ||||||||||||||||||||
| $ | 18.44 | (3.07 | )% | $ | 164,327 | 1.25 | % | 2.21 | %(g) | 1.29 | % | 38 | % | |||||||||||||
| 19.36 | 0.45 | 152,834 | 1.29 | 1.75 | (g) | 1.49 | 33 | |||||||||||||||||||
| 19.49 | (0.33 | ) | 101,114 | 1.39 | 1.96 | (g) | 1.46 | 48 | ||||||||||||||||||
| 19.79 | 26.25 | 60,135 | 1.47 | 1.42 | 1.54 | 49 | ||||||||||||||||||||
| 15.90 | 4.97 | 32,231 | 1.50 | 1.65 | 1.62 | 46 | ||||||||||||||||||||
| 18.57 | (3.56 | ) | 2,287 | 1.75 | 1.52 | (g) | 1.87 | 38 | ||||||||||||||||||
| 19.52 | (0.05 | ) | 2,789 | 1.78 | 1.17 | (g) | 1.91 | 33 | ||||||||||||||||||
| 19.63 | (0.84 | ) | 1,318 | 1.89 | 1.79 | (g) | 1.96 | 48 | ||||||||||||||||||
| 19.92 | 25.60 | 1,131 | 1.98 | 0.94 | 2.04 | 49 | ||||||||||||||||||||
| 16.00 | 4.45 | 875 | 2.00 | 1.18 | 2.12 | 46 | ||||||||||||||||||||
| 18.29 | (3.36 | ) | 503 | 1.50 | 2.02 | (g) | 1.75 | 38 | ||||||||||||||||||
| 19.21 | 0.24 | 227 | 1.52 | 1.91 | (g) | 1.69 | 33 | |||||||||||||||||||
| 19.31 | (0.66 | ) | 98 | 1.64 | 2.03 | (g) | 1.71 | 48 | ||||||||||||||||||
| 19.61 | 26.02 | 98 | 1.72 | 1.16 | 1.79 | 49 | ||||||||||||||||||||
| 15.74 | 4.64 | 81 | 1.75 | 1.29 | 1.87 | 46 | ||||||||||||||||||||
| 18.91 | (2.59 | ) | 2,487,086 | 0.71 | 2.65 | (g) | 0.72 | 38 | ||||||||||||||||||
| 19.84 | (5.88 | ) | 1,854,941 | 0.73 | 1.47 | (g) | 0.74 | 33 | ||||||||||||||||||
| 19.22 | (2.67 | ) | 23,748 | 0.82 | 2.19 | (g) | 0.83 | 38 | ||||||||||||||||||
| 19.83 | 0.93 | 51,833 | 0.85 | 2.57 | (g) | 0.91 | 33 | |||||||||||||||||||
| 19.95 | 0.13 | 1,474,870 | 0.89 | 2.39 | (g) | 1.05 | 48 | |||||||||||||||||||
| 20.23 | 26.90 | 582,599 | 0.97 | 1.88 | 1.14 | 49 | ||||||||||||||||||||
| 16.24 | 5.50 | 303,575 | 1.00 | 2.16 | 1.21 | 46 | ||||||||||||||||||||
| 19.20 | (2.73 | ) | 16,363 | 0.90 | 2.44 | (g) | 1.08 | 38 | ||||||||||||||||||
| 20.13 | 0.80 | 19,292 | 0.97 | 2.04 | (g) | 1.12 | 33 | |||||||||||||||||||
| 20.22 | (0.13 | ) | 15,963 | 1.14 | 2.47 | (g) | 1.21 | 48 | ||||||||||||||||||
| 20.51 | 26.56 | 13,916 | 1.23 | 1.68 | 1.29 | 49 | ||||||||||||||||||||
| 16.46 | 5.24 | 9,467 | 1.25 | 1.94 | 1.37 | 46 | ||||||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 131 | ||||||
Table of Contents
AS OF OCTOBER 31, 2016
1. Organization
JPMorgan Trust I (“JPM I”) and JPMorgan Trust II (“JPM II”) (collectively, the “Trusts”) were formed on November 12, 2004, as Delaware statutory trusts, pursuant to Declarations of Trust dated November 5, 2004 and are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies.
The following are 12 separate funds of the Trusts (collectively, the “Funds”) covered by this report:
| Classes Offered | Trust | Diversified/Non-Diversified | ||||
| Emerging Economies Fund | Class A, Class C, Class R5, Class R6* and Select Class | JPM I | Diversified | |||
| Emerging Markets Equity Fund | Class A, Class C, Class R5**, Class R6, Institutional Class^ and Select Class | JPM I | Diversified | |||
| Emerging Markets Equity Income Fund | Class A, Class C, Class R5, Class R6 and Select Class | JPM I | Diversified | |||
| Global Research Enhanced Index Fund | Class A, Class C, Class R2, and Select Class | JPM I | Diversified | |||
| Global Unconstrained Equity Fund | Class A, Class C, Class R2, Class R5, Class R6 and Select Class | JPM I | Diversified | |||
| International Equity Fund | Class A, Class C, Class R2, Class R5, Class R6 and Select Class | JPM I | Diversified | |||
| International Equity Income Fund | Class A, Class C, Class R2, Class R5, Class R6*** and Select Class | JPM I | Diversified | |||
| International Opportunities Fund | Class A, Class C, Class R6, Institutional Class and Select Class | JPM I | Diversified | |||
| International Research Enhanced Equity Fund | Class A, Class C, Class R2 and Select Class | JPM II | Diversified | |||
| International Unconstrained Equity Fund | Class A, Class C, Class R2, Class R5, Class R6 and Select Class | JPM I | Diversified | |||
| International Value Fund | Class A, Class C, Class R2, Class R5**, Class R6, Institutional Class^ and Select Class | JPM I | Diversified | |||
| Intrepid International Fund | Class A, Class C, Class R2, Class R6****, Institutional Class and Select Class | JPM I | Diversified |
Emerging Markets Equity Income Fund commenced operations on December 12, 2014. Prior to March 27, 2015, the Fund was not publicly offered for investment.
As of October 31, 2016, Class A, Class C and Class R2 Shares of Global Research Enhanced Index Fund and Class R2 shares of the Global Unconstrained Equity Fund were not publicly offered for investment.
Prior to January 5, 2015, Class A, Class C, Class R5, Class R6 and Select Class Shares of Global Unconstrained Equity Fund were not publicly offered for investment.
| * | Class R6 Shares commenced operations on September 1, 2015, for Emerging Economies Fund. |
| ** | Class R5 Shares commenced operations on September 9, 2016, for Emerging Markets Equity Fund and International Value Fund. |
| *** | Class R6 Shares commenced operations on January 30, 2015, for International Equity Income Fund. |
| **** | Class R6 Shares commenced operations on May 29, 2015, for Intrepid International Fund. |
| ^ | Effective December 1, 2016, Institutional Class was renamed Class L and is publicly offered on a limited basis. |
The investment objective of Emerging Economies Fund is to seek long-term capital growth.
The investment objective of Emerging Markets Equity Fund is to seek to provide high total return from a portfolio of equity securities from emerging markets issuers.
The investment objective of Emerging Markets Equity Income Fund and the International Equity Income Fund is to seek to provide both current income and long-term capital appreciation.
The investment objective of Global Research Enhanced Index Fund, International Research Enhanced Equity Fund and International Unconstrained Equity Fund is to seek to provide long-term capital appreciation.
The investment objective of Global Unconstrained Equity Fund is to seek to provide long-term capital appreciation.
The investment objective of International Equity Fund is to seek total return from long-term capital growth and income. Total return consists of capital growth and current income.
The investment objective of International Opportunities Fund is to seek to provide high total return from a portfolio of equity securities of foreign companies in developed and, to a lesser extent, emerging markets.
The investment objective of International Value Fund is to seek to provide high total return from a portfolio of foreign company equity securities.
The investment objective of Intrepid International Fund is to seek to maximize long-term capital growth by investing primarily in equity securities in developed markets outside the U.S.
| 132 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Class A Shares generally provide for a front-end sales charge while Class C Shares provide for a contingent deferred sales charge (“CDSC”). No sales charges are assessed with respect to Class R2, Class R5, Class R6, Institutional Class and Select Class Shares. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, sub-transfer agency, distribution and shareholder servicing fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements. Certain Class A Shares, for which front-end sales charges have been waived, may be subject to a CDSC as described in the Funds’ prospectus.
On June 19, 2015, all Class B Shares converted to Class A Shares of the same Fund. Prior to June 19, 2015, Class B Shares automatically converted to Class A Shares after eight years and provided for a CDSC.
J.P. Morgan Investment Management Inc. (“JPMIM”) an indirect, wholly owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”) acts as Adviser (the “Adviser”) and Administrator (the “Administrator”) to the Funds. Prior to April 1, 2016, JPMorgan Funds Management, Inc. (“JPMFM”) served as the Funds’ administrator. Effective April 1, 2016, JPMFM merged into JPMIM and JPMIM became the Funds’ administrator under the Administration Agreement.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A. Valuation of Investments — The valuation of investments is in accordance with GAAP and the Funds’ valuation policies set forth by and under the supervision and responsibility of the Board of Trustees (the “Board”), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at such unadjusted quoted prices and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
The Administrator has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Board with the oversight and monitoring of the valuation of the Funds’ investments. The Administrator implements the valuation policies of the Funds’ investments, as directed by the Board. The AVC oversees and carries out the policies for the valuation of investments held in the Funds. This includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight, including but not limited to consideration of macro or security specific events, market events and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and at least on a quarterly basis with the AVC and the Board.
A market-based approach is primarily used to value the Funds’ investments. Investments for which market quotations are not readily available are fair valued by approved affiliated and unaffiliated pricing vendors or third party broker-dealers (collectively referred to as “Pricing Services”) or may be internally fair valued using methods set forth by the valuation policies approved by the Board. This may include related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may be used in which the anticipated future cash flows of the investment are discounted to calculate the fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. It is possible that the estimated values may differ significantly from the values that would have been used, had a ready market for the investments existed, and such differences could be material.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the net asset values (“NAV”) of the Funds are calculated on a valuation date. Certain foreign equity instruments, as well as certain derivatives with equity reference obligations, are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post closing, but prior to the time the NAVs are calculated. Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Futures are generally valued on the basis of available market quotations. Forward foreign currency exchange contracts are valued utilizing market quotations from approved Pricing Services.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds’ investments are summarized into the three broad levels listed below.
| • | Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments. |
| • | Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs. |
| • | Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds’ assumptions in determining the fair value of investments). |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 133 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments (“SOIs”) (amounts in thousands):
Emerging Economies Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $ | 77,173 | $ | — | $ | — | $ | 77,173 | ||||||||
Chile | 9,202 | — | — | 9,202 | ||||||||||||
China | 55,298 | 329,034 | — | 384,332 | ||||||||||||
Hong Kong | — | 71,797 | — | 71,797 | ||||||||||||
Hungary | — | 24,958 | — | 24,958 | ||||||||||||
India | 13,918 | 43,464 | — | 57,382 | ||||||||||||
Indonesia | — | 4,333 | — | 4,333 | ||||||||||||
Malaysia | 14,600 | 9,587 | — | 24,187 | ||||||||||||
Mexico | 48,767 | — | — | 48,767 | ||||||||||||
Poland | — | 47,120 | — | 47,120 | ||||||||||||
Russia | 53,899 | 105,545 | — | 159,444 | ||||||||||||
Singapore | — | 11,086 | — | 11,086 | ||||||||||||
South Africa | 9,144 | 9,494 | — | 18,638 | ||||||||||||
South Korea | — | 336,822 | — | 336,822 | ||||||||||||
Taiwan | 31,310 | 174,945 | — | 206,255 | ||||||||||||
Thailand | — | 112,440 | — | 112,440 | ||||||||||||
Turkey | — | 77,243 | — | 77,243 | ||||||||||||
United Arab Emirates | — | 25,127 | — | 25,127 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 313,311 | 1,382,995 | — | 1,696,306 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks | ||||||||||||||||
Brazil | 22,249 | — | — | 22,249 | ||||||||||||
Russia | 8,408 | 2,201 | — | 10,609 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Preferred Stocks | 30,657 | 2,201 | — | 32,858 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 36,972 | — | — | 36,972 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 380,940 | $ | 1,385,196 | $ | — | $ | 1,766,136 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (282 | ) | $ | — | $ | — | $ | (282 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
| 134 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Emerging Markets Equity Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ | 19,667 | $ | — | $ | — | $ | 19,667 | ||||||||
Australia | — | 20,646 | — | 20,646 | ||||||||||||
Brazil | 313,393 | — | — | 313,393 | ||||||||||||
China | 180,928 | 327,530 | — | 508,458 | ||||||||||||
Cyprus | 5,856 | — | — | 5,856 | ||||||||||||
Egypt | 9,934 | — | — | 9,934 | ||||||||||||
Hong Kong | 31,497 | 167,655 | — | 199,152 | ||||||||||||
India | 149,809 | 476,203 | — | 626,012 | ||||||||||||
Indonesia | — | 100,714 | — | 100,714 | ||||||||||||
Mexico | 34,115 | — | — | 34,115 | ||||||||||||
Panama | 34,550 | — | — | 34,550 | ||||||||||||
Peru | 36,520 | — | — | 36,520 | ||||||||||||
Russia | — | 171,895 | — | 171,895 | ||||||||||||
South Africa | — | 410,452 | — | 410,452 | ||||||||||||
South Korea | — | 118,476 | — | 118,476 | ||||||||||||
Switzerland | 23,468 | — | — | 23,468 | ||||||||||||
Taiwan | 133,552 | 116,218 | — | 249,770 | ||||||||||||
Thailand | — | 43,987 | — | 43,987 | ||||||||||||
Turkey | — | 10,444 | — | 10,444 | ||||||||||||
United States | 38,370 | — | — | 38,370 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 1,011,659 | 1,964,220 | — | 2,975,879 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks | ||||||||||||||||
Brazil | 21,153 | — | — | 21,153 | ||||||||||||
Structured Instruments | ||||||||||||||||
China | — | 34,485 | — | 34,485 | ||||||||||||
Warrants | ||||||||||||||||
Saudi Arabia | — | 19,787 | — | 19,787 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 91,254 | — | — | 91,254 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 1,124,066 | $ | 2,018,492 | $ | — | $ | 3,142,558 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Emerging Markets Equity Income Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $ | 1,142 | $ | — | $ | — | $ | 1,142 | ||||||||
Chile | 325 | — | — | 325 | ||||||||||||
China | — | 279 | — | 279 | ||||||||||||
Czech Republic | — | 415 | — | 415 | ||||||||||||
Hong Kong | 217 | 1,138 | — | 1,355 | ||||||||||||
Hungary | — | 208 | — | 208 | ||||||||||||
Indonesia | — | 136 | — | 136 | ||||||||||||
Mexico | 497 | — | — | 497 | ||||||||||||
Russia | 446 | 413 | — | 859 | ||||||||||||
South Africa | 250 | 1,420 | — | 1,670 | ||||||||||||
South Korea | 168 | 549 | — | 717 | ||||||||||||
Taiwan | 555 | 2,088 | — | 2,643 | ||||||||||||
Thailand | 23 | 273 | — | 296 | ||||||||||||
Turkey | — | 287 | — | 287 | ||||||||||||
United Arab Emirates | — | 160 | — | 160 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 3,623 | 7,366 | — | 10,989 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 135 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
| Emerging Markets Equity Income Fund (continued) | ||||||||||||||||
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Structured Instruments | ||||||||||||||||
China | $ | — | $ | 224 | $ | — | $ | 224 | ||||||||
Warrants | ||||||||||||||||
Saudi Arabia | — | 165 | — | 165 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 282 | — | — | 282 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 3,905 | $ | 7,755 | $ | — | $ | 11,660 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| Global Research Enhanced Index Fund | ||||||||||||||||
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 186,649 | $ | — | $ | 186,649 | ||||||||
Austria | — | — | (a) | — | — | (a) | ||||||||||
Belgium | 23,859 | 10,117 | — | 33,976 | ||||||||||||
Bermuda | 11,656 | — | — | 11,656 | ||||||||||||
Canada | 255,554 | — | — | 255,554 | ||||||||||||
China | — | 220 | — | 220 | ||||||||||||
Colombia | — | — | — | (b) | — | (b) | ||||||||||
Denmark | — | 58,137 | — | 58,137 | ||||||||||||
Finland | — | 20,831 | — | 20,831 | ||||||||||||
France | — | 284,664 | — | 284,664 | ||||||||||||
Germany | 1,291 | 230,210 | — | 231,501 | ||||||||||||
Hong Kong | 2,776 | 83,671 | — | 86,447 | ||||||||||||
Ireland | 56,832 | 2,203 | — | 59,035 | ||||||||||||
Israel | 6,614 | — | — | 6,614 | ||||||||||||
Italy | — | 48,312 | — | 48,312 | ||||||||||||
Japan | — | 645,333 | — | 645,333 | ||||||||||||
Luxembourg | — | 9,549 | — | 9,549 | ||||||||||||
Netherlands | 8,862 | 137,221 | — | 146,083 | ||||||||||||
New Zealand | — | 6,129 | — | 6,129 | ||||||||||||
Norway | — | 4,209 | — | 4,209 | ||||||||||||
Portugal | — | 5,931 | — | 5,931 | ||||||||||||
Singapore | 35,267 | 28,321 | — | 63,588 | ||||||||||||
Spain | — | 67,640 | — | 67,640 | ||||||||||||
Sweden | — | 51,172 | — | 51,172 | ||||||||||||
Switzerland | 47,318 | 207,987 | — | 255,305 | ||||||||||||
United Kingdom | 18,630 | 356,468 | — | 375,098 | ||||||||||||
United States | 3,909,964 | 15,031 | — | 3,924,995 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 4,378,623 | 2,460,005 | — | (b) | 6,838,628 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks | ||||||||||||||||
Germany | — | 28,069 | — | 28,069 | ||||||||||||
Right | ||||||||||||||||
Spain | 139 | — | — | 139 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 17,326 | — | — | 17,326 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 4,396,088 | $ | 2,488,074 | $ | — | (b) | $ | 6,884,162 | |||||||
|
|
|
|
|
|
|
| |||||||||
| 136 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Global Unconstrained Equity Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Canada | $ | 23 | $ | — | $ | — | $ | 23 | ||||||||
China | 110 | 29 | — | 139 | ||||||||||||
France | — | 108 | — | 108 | ||||||||||||
Germany | — | 34 | — | 34 | ||||||||||||
Hong Kong | — | 19 | — | 19 | ||||||||||||
India | 17 | — | — | 17 | ||||||||||||
Israel | 72 | — | — | 72 | ||||||||||||
Italy | — | 17 | — | 17 | ||||||||||||
Japan | — | 89 | — | 89 | ||||||||||||
Luxembourg | — | 18 | — | 18 | ||||||||||||
Netherlands | 33 | 23 | — | 56 | ||||||||||||
Russia | — | 21 | — | 21 | ||||||||||||
Singapore | 33 | — | — | 33 | ||||||||||||
Switzerland | 35 | 68 | — | 103 | ||||||||||||
United Kingdom | 30 | 98 | — | 128 | ||||||||||||
United States | 771 | — | — | 771 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 1,124 | 524 | — | 1,648 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 1,124 | $ | 524 | $ | — | $ | 1,648 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| International Equity Fund | ||||||||||||||||
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 43,462 | $ | — | $ | 43,462 | ||||||||
Belgium | 60,798 | — | — | 60,798 | ||||||||||||
China | 34,205 | 92,160 | — | 126,365 | ||||||||||||
Denmark | — | 36,116 | — | 36,116 | ||||||||||||
France | — | 398,619 | — | 398,619 | ||||||||||||
Germany | — | 215,914 | — | 215,914 | ||||||||||||
Hong Kong | — | 162,405 | — | 162,405 | ||||||||||||
India | 38,855 | — | — | 38,855 | ||||||||||||
Indonesia | — | 27,275 | — | 27,275 | ||||||||||||
Israel | 29,873 | — | — | 29,873 | ||||||||||||
Japan | — | 811,990 | — | 811,990 | ||||||||||||
Netherlands | 21,528 | 191,740 | — | 213,268 | ||||||||||||
South Africa | — | 36,245 | — | 36,245 | ||||||||||||
South Korea | — | 89,222 | — | 89,222 | ||||||||||||
Switzerland | — | 358,311 | — | 358,311 | ||||||||||||
Taiwan | 45,570 | — | — | 45,570 | ||||||||||||
United Kingdom | — | 612,136 | — | 612,136 | ||||||||||||
United States | — | 24,900 | — | 24,900 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 230,829 | 3,100,495 | — | 3,331,324 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stock | ||||||||||||||||
Germany | — | 43,587 | — | 43,587 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 36,620 | — | — | 36,620 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 267,449 | $ | 3,144,082 | $ | — | $ | 3,411,531 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 137 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
International Equity Income Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 2,527 | $ | — | $ | 2,527 | ||||||||
Belgium | 4,725 | — | — | 4,725 | ||||||||||||
Canada | 4,977 | — | — | 4,977 | ||||||||||||
China | — | 1,219 | — | 1,219 | ||||||||||||
Czech Republic | — | 3,378 | — | 3,378 | ||||||||||||
Denmark | — | 3,467 | — | 3,467 | ||||||||||||
Finland | — | 3,769 | — | 3,769 | ||||||||||||
France | — | 9,448 | — | 9,448 | ||||||||||||
Germany | — | 12,208 | — | 12,208 | ||||||||||||
Hong Kong | 1,582 | 1,606 | — | 3,188 | ||||||||||||
Israel | — | 2,361 | — | 2,361 | ||||||||||||
Japan | 3,338 | 7,857 | — | 11,195 | ||||||||||||
Netherlands | — | 12,663 | — | 12,663 | ||||||||||||
New Zealand | — | 1,427 | — | 1,427 | ||||||||||||
Norway | — | 2,113 | — | 2,113 | ||||||||||||
Russia | — | 8,154 | — | 8,154 | ||||||||||||
Switzerland | — | 4,070 | — | 4,070 | ||||||||||||
Taiwan | 4,730 | 1,415 | — | 6,145 | ||||||||||||
United Kingdom | 3,190 | 30,791 | — | 33,981 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 22,542 | 108,473 | — | 131,015 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 2,567 | — | — | 2,567 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 25,109 | $ | 108,473 | $ | — | $ | 133,582 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 3 | $ | — | $ | 3 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | (116 | ) | $ | — | $ | (116 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
| 138 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
International Opportunities Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 101,890 | $ | — | $ | 101,890 | ||||||||
Belgium | 56,617 | — | — | 56,617 | ||||||||||||
China | — | 13,963 | — | 13,963 | ||||||||||||
Denmark | — | 92,296 | — | 92,296 | ||||||||||||
Finland | — | 38,480 | — | 38,480 | ||||||||||||
France | — | 338,464 | — | 338,464 | ||||||||||||
Germany | — | 230,769 | — | 230,769 | ||||||||||||
Hong Kong | — | 61,857 | — | 61,857 | ||||||||||||
India | 29,371 | — | — | 29,371 | ||||||||||||
Italy | — | 99,436 | — | 99,436 | ||||||||||||
Japan | — | 710,923 | — | 710,923 | ||||||||||||
Netherlands | — | 158,373 | — | 158,373 | ||||||||||||
Norway | — | 43,920 | — | 43,920 | ||||||||||||
Spain | — | 12,122 | — | 12,122 | ||||||||||||
Sweden | — | 34,261 | — | 34,261 | ||||||||||||
Switzerland | — | 155,234 | — | 155,234 | ||||||||||||
United Kingdom | — | 425,734 | — | 425,734 | ||||||||||||
United States | — | 41,599 | — | 41,599 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 85,988 | 2,559,321 | — | 2,645,309 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks | ||||||||||||||||
Germany | — | 35,934 | — | 35,934 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 72,806 | — | — | 72,806 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 158,794 | $ | 2,595,255 | $ | — | $ | 2,754,049 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 17,384 | $ | — | $ | 17,384 | ||||||||
Futures Contracts | — | 601 | — | 601 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Appreciation in Other Financial Instruments | $ | — | $ | 17,985 | $ | — | $ | 17,985 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | (14,045 | ) | $ | — | $ | (14,045 | ) | ||||||
Futures Contracts | — | (215 | ) | — | (215 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Depreciation in Other Financial Instruments | $ | — | $ | (14,260 | ) | $ | — | $ | (14,260 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 139 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
International Research Enhanced Equity Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks |
| |||||||||||||||
Australia | $ | — | $ | 85,448 | $ | — | (b) | $ | 85,448 | |||||||
Belgium | 13,955 | — | — | 13,955 | ||||||||||||
Denmark | — | 10,985 | — | 10,985 | ||||||||||||
Finland | — | 26,289 | — | 26,289 | ||||||||||||
France | — | 139,327 | — | 139,327 | ||||||||||||
Germany | — | 119,777 | — | 119,777 | ||||||||||||
Hong Kong | — | 36,963 | — | 36,963 | ||||||||||||
Ireland | 5,161 | — | — | 5,161 | ||||||||||||
Israel | 10,141 | — | — | 10,141 | ||||||||||||
Italy | — | 31,358 | — | 31,358 | ||||||||||||
Japan | 1,800 | 304,643 | — | 306,443 | ||||||||||||
Luxembourg | — | 6,995 | — | 6,995 | ||||||||||||
Netherlands | — | 80,365 | — | 80,365 | ||||||||||||
New Zealand | — | 4,976 | — | 4,976 | ||||||||||||
Portugal | — | 4,027 | — | 4,027 | ||||||||||||
Singapore | — | 10,432 | — | 10,432 | ||||||||||||
Spain | — | 28,302 | — | 28,302 | ||||||||||||
Sweden | — | 16,417 | — | 16,417 | ||||||||||||
Switzerland | — | 126,833 | — | 126,833 | ||||||||||||
United Kingdom | — | 203,752 | — | 203,752 | ||||||||||||
United States | — | 11,218 | — | 11,218 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 31,057 | 1,248,107 | — | (b) | 1,279,164 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks |
| |||||||||||||||
Germany | — | 13,835 | — | 13,835 | ||||||||||||
Rights |
| |||||||||||||||
Spain | 64 | — | — | 64 | ||||||||||||
Short-Term Investment |
| |||||||||||||||
Investment Company | 32,949 | — | — | 32,949 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 64,070 | $ | 1,261,942 | $ | — | (b) | $ | 1,326,012 | |||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments |
| |||||||||||||||
Futures Contracts | $ | — | $ | 698 | $ | — | $ | 698 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| 140 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
International Unconstrained Equity Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Belgium | $ | 2,901 | $ | — | $ | — | $ | 2,901 | ||||||||
Canada | 4,953 | — | — | 4,953 | ||||||||||||
China | 5,158 | 5,794 | — | 10,952 | ||||||||||||
Denmark | — | 2,176 | — | 2,176 | ||||||||||||
Finland | — | 4,332 | — | 4,332 | ||||||||||||
France | — | 2,227 | — | 2,227 | ||||||||||||
Germany | — | 3,872 | — | 3,872 | ||||||||||||
Hong Kong | — | 9,347 | — | 9,347 | ||||||||||||
India | 2,358 | — | — | 2,358 | ||||||||||||
Israel | 3,034 | — | — | 3,034 | ||||||||||||
Italy | — | 1,402 | — | 1,402 | ||||||||||||
Japan | — | 8,299 | — | 8,299 | ||||||||||||
Netherlands | 1,288 | 10,275 | — | 11,563 | ||||||||||||
South Africa | — | 1,867 | — | 1,867 | ||||||||||||
South Korea | — | 1,591 | — | 1,591 | ||||||||||||
Switzerland | — | 13,194 | — | 13,194 | ||||||||||||
Taiwan | 2,241 | — | — | 2,241 | ||||||||||||
United Kingdom | — | 19,607 | — | 19,607 | ||||||||||||
United States | — | 1,912 | — | 1,912 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 21,933 | 85,895 | — | 107,828 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 2,047 | — | — | 2,047 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 23,980 | $ | 85,895 | $ | — | $ | 109,875 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 141 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
International Value Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 53,120 | $ | — | $ | 53,120 | ||||||||
Belgium | 13,045 | 13,724 | — | 26,769 | ||||||||||||
Canada | 12,437 | — | — | 12,437 | ||||||||||||
Chile | 7,574 | — | — | 7,574 | ||||||||||||
China | — | 12,886 | — | 12,886 | ||||||||||||
Denmark | — | 7,799 | — | 7,799 | ||||||||||||
Finland | — | 30,118 | — | 30,118 | ||||||||||||
France | — | 206,694 | — | 206,694 | ||||||||||||
Germany | — | 104,134 | — | 104,134 | ||||||||||||
Hong Kong | — | 26,312 | — | 26,312 | ||||||||||||
Ireland | 6,679 | — | — | 6,679 | ||||||||||||
Israel | 18,673 | — | — | 18,673 | ||||||||||||
Italy | — | 48,233 | — | 48,233 | ||||||||||||
Japan | — | 311,046 | — | 311,046 | ||||||||||||
Luxembourg | — | 14,356 | — | 14,356 | ||||||||||||
Netherlands | — | 93,253 | — | 93,253 | ||||||||||||
Norway | — | 16,215 | — | 16,215 | ||||||||||||
South Korea | — | 12,531 | — | 12,531 | ||||||||||||
Spain | — | 15,637 | — | 15,637 | ||||||||||||
Sweden | — | 24,591 | — | 24,591 | ||||||||||||
Switzerland | — | 60,268 | — | 60,268 | ||||||||||||
United Kingdom | — | 173,453 | — | 173,453 | ||||||||||||
United States | — | 16,134 | — | 16,134 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 58,408 | 1,240,504 | — | 1,298,912 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 16,805 | — | — | 16,805 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 75,213 | $ | 1,240,504 | $ | — | $ | 1,315,717 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 6,930 | $ | — | $ | 6,930 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | (7,369 | ) | $ | — | $ | (7,369 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
| 142 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
Intrepid International Fund
| Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 180,225 | $ | — | $ | 180,225 | ||||||||
Austria | — | 7,635 | — | 7,635 | ||||||||||||
Belgium | 10,411 | 17,637 | — | 28,048 | ||||||||||||
China | — | 8,718 | — | 8,718 | ||||||||||||
Denmark | — | 61,790 | — | 61,790 | ||||||||||||
Finland | — | 19,863 | — | 19,863 | ||||||||||||
France | — | 303,304 | — | 303,304 | ||||||||||||
Germany | — | 201,751 | — | 201,751 | ||||||||||||
Hong Kong | — | 90,905 | — | 90,905 | ||||||||||||
India | 9,822 | — | — | 9,822 | ||||||||||||
Indonesia | 11,138 | — | — | 11,138 | ||||||||||||
Ireland | — | 8,847 | — | 8,847 | ||||||||||||
Israel | 13,153 | — | — | 13,153 | ||||||||||||
Italy | — | 33,580 | — | 33,580 | ||||||||||||
Japan | — | 645,073 | — | 645,073 | ||||||||||||
Luxembourg | — | 11,487 | — | 11,487 | ||||||||||||
Netherlands | — | 113,674 | — | 113,674 | ||||||||||||
Norway | — | 28,920 | — | 28,920 | ||||||||||||
Portugal | — | 6,412 | — | 6,412 | ||||||||||||
Singapore | — | 13,881 | — | 13,881 | ||||||||||||
South Korea | 10,523 | — | — | 10,523 | ||||||||||||
Spain | — | 56,538 | — | 56,538 | ||||||||||||
Sweden | — | 71,745 | — | 71,745 | ||||||||||||
Switzerland | — | 227,978 | — | 227,978 | ||||||||||||
Taiwan | 12,275 | — | — | 12,275 | ||||||||||||
United Kingdom | — | 412,254 | — | 412,254 | ||||||||||||
United States | — | 27,788 | — | 27,788 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 67,322 | 2,550,005 | — | 2,617,327 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Preferred Stocks | ||||||||||||||||
Germany | — | 12,450 | — | 12,450 | ||||||||||||
Short-Term Investment | ||||||||||||||||
Investment Company | 55,706 | — | — | 55,706 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 123,028 | $ | 2,562,455 | $ | — | $ | 2,685,483 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | Amount rounds to less than 500. |
| (b) | Value is zero. |
For the Emerging Economies Fund and Intrepid International Fund the transfers from level 1 to level 2 in the amounts of approximately $25,117,000 and $26,193,000, respectively, are due to applying the fair value factors to certain securities during the year ended October 31, 2016.
For the Emerging Markets Equity Fund and Emerging Markets Equity Income Fund the transfers from level 1 to level 2 in the amounts of approximately $26,270,000 and $88,000, respectively, and the transfers from level 2 to level 1 in the amounts of approximately $25,558,000 and $61,000, respectively, are due to the application and non-application of the fair value factors to certain securities during the year ended October 31, 2016.
For the Global Research Enhanced Index Fund and International Research Enhanced Equity Fund there were no significant transfers among any levels during the year ended October 31, 2016.
For the Global Unconstrained Equity Fund, International Equity Fund, International Equity Income Fund, International Opportunities Fund, International Unconstrained Equity Fund and International Value Fund there were no transfers among any levels during the year ended October 31, 2016.
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933 (the “Securities Act”). Disposal of these securities may
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 143 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the net assets of the Funds.
As of October 31, 2016, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A or Regulation S under the Securities Act.
C. Futures Contracts — Emerging Economies Fund, Emerging Markets Equity Fund, Emerging Markets Equity Income Fund, Global Research Enhanced Index Fund, Global Unconstrained Equity Fund, International Opportunities Fund, International Research Enhanced Equity Fund and International Value Fund used index futures contracts to gain or reduce exposure to the stock market, maintain liquidity or minimize transaction costs. The Funds also bought futures contracts to invest incoming cash in the market or sold futures in response to cash outflows, thereby simulating an invested position in the underlying index while maintaining a cash balance for liquidity.
Futures contracts provide for the delayed delivery of the underlying instrument at a fixed price or are settled for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. Upon entering into a futures contract, the Funds are required to deposit with the broker, cash or securities in an amount equal to a certain percentage of the contract amount, which is referred to as the initial margin deposit. Subsequent payments, referred to as variation margin, are made or received by the Funds periodically and are based on changes in the market value of open futures contracts. Changes in the market value of open futures contracts are recorded as Change in net unrealized appreciation/depreciation on the Statements of Operations. Realized gains or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported on the Statements of Operations at the closing or expiration of the futures contract. Securities deposited as initial margin are designated on the SOIs and cash deposited is recorded on the Statements of Assets and Liabilities. A receivable from and/or a payable to brokers for the daily variation margin is also recorded on the Statements of Assets and Liabilities.
The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying instrument. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of positions.
The Funds’ futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
The table below discloses the volume of the Funds’ futures contracts activity during the year ended October 31, 2016 (amounts in thousands):
| Emerging Economies Fund | Emerging Markets Equity Fund | Emerging Markets Equity Income Fund | Global Research Enhanced Index Fund | Global Unconstrained Equity Fund | International Opportunities Fund | International Research Enhanced Equity Fund | International Value Fund | |||||||||||||||||||||||||
Futures Contracts: | ||||||||||||||||||||||||||||||||
Average Notional Balance Long | $ | 18,061 | $ | 44,955 | (a) | $ | 502 | (b) | $ | 87,241 | (c) | $ | 129,611 | (d) | $ | 14,839 | $ | 27,866 | $ | 4,256 | ||||||||||||
Ending Notional Balance Long | 22,949 | — | — | — | — | 70,537 | 26,645 | — | ||||||||||||||||||||||||
| (a) | For the period from August 1, 2016 to August 31, 2016. |
| (b) | For the period from September 1, 2016 to September 30, 2016. |
| (c) | For the period from November 1, 2015 to March 31, 2016. |
| (d) | For the period from March 1, 2016 to March 31, 2016. |
D. Forward Foreign Currency Exchange Contracts — International Equity Income Fund, International Opportunities Fund and International Value Fund may be exposed to foreign currency risks associated with some or all of their portfolio investments and used forward foreign currency exchange contracts to hedge or manage certain of these exposures as part of an investment strategy. The Funds also bought forward currency exchange contracts to gain exposure to currencies. Forward foreign currency exchange contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in U.S. dollars without the delivery of foreign currency.
The values of the forward foreign currency exchange contracts are adjusted daily based on the applicable exchange rate of the underlying currency. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract settlement date. When the forward foreign currency exchange contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time the contract was opened and the value at the time it was closed. The Funds also record a realized gain or loss when a forward foreign currency exchange contract offsets another forward foreign currency exchange contract with the same counterparty upon settlement.
As of October 31, 2016, the Funds did not receive or post collateral for forward foreign currency exchange contracts.
| 144 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
The table below discloses the volume of the Funds’ forward foreign currency exchange contracts activity during the year ended October 31, 2016 (amounts in thousands):
| Forward Foreign Currency Exchange Contracts: | International Equity Income Fund | International Opportunities Fund | International Value Fund | |||||||||
Average Settlement Value Purchased | $ | 5,834 | $ | 478,295 | $ | 386,008 | ||||||
Average Settlement Value Sold | 3,853 | 425,246 | 349,244 | |||||||||
Ending Settlement Value Purchased | 7,363 | 505,336 | 249,732 | |||||||||
Ending Settlement Value Sold | 6,470 | 407,071 | 221,603 | |||||||||
The Funds’ forward foreign currency contracts are subject to master netting arrangements (the right to close out all transactions with a counterparty and net amounts owed or due across transactions).
E. Summary of Derivatives Information
The following table presents the value of derivatives held as of October 31, 2016, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
Emerging Economies Fund
| Derivative Contracts | Statements of Assets and Liabilities Location | |||||
| Gross Liabilities: | Futures Contracts (a) | |||||
Equity contracts | Payables, Net Assets — Unrealized Depreciation | $ | (282 | ) | ||
|
| |||||
| (a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
The following table presents the value of derivatives held as of October 31, 2016, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
International Equity Income Fund
| Derivative Contracts | Statements of Assets and Liabilities Location | |||||
| Gross Assets: | Forward Foreign Currency Exchange Contracts | |||||
Foreign exchange contracts | Receivables | $ | 3 | |||
|
| |||||
Gross Liabilities: | ||||||
Foreign exchange contracts | Payables | $ | (116 | ) | ||
|
| |||||
The following table presents the value of derivatives held as of October 31, 2016, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
International Opportunities Fund
| Derivative Contracts | Statements of Assets and Liabilities Location | |||||||||||||
| Gross Assets: | Futures Contracts (a) | Forward Foreign Currency Exchange Contracts | Total | |||||||||||
Equity contracts | Receivables, Net Assets — Unrealized Appreciation | $ | 601 | $ | — | $ | 601 | |||||||
Foreign exchange contracts | Receivables | — | 17,384 | 17,384 | ||||||||||
|
|
|
|
|
| |||||||||
Total | $ | 601 | $ | 17,384 | $ | 17,985 | ||||||||
|
|
|
|
|
| |||||||||
Gross Liabilities: | ||||||||||||||
Equity contracts | Payables, Net Assets — Unrealized Depreciation | $ | (215 | ) | $ | — | $ | (215 | ) | |||||
Foreign exchange contracts | Payables | — | (14,045 | ) | (14,045 | ) | ||||||||
|
|
|
|
|
| |||||||||
Total | $ | (215 | ) | $ | (14,045 | ) | $ | (14,260 | ) | |||||
|
|
|
|
|
| |||||||||
| (a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 145 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
The following table presents the Fund’s gross derivative assets and liabilities by counterparty net of amounts available for offset under netting arrangements and any related collateral received or posted by the Fund as of October 31, 2016 (amounts in thousands):
International Opportunities Fund
| Counterparty | Gross Amount of Derivative Assets Presented on the Statement of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Received | Net Amount Due From Counterparty (Not less than zero) | ||||||||||||
BNP Paribas | $ | 789 | $ | — | $ | — | $ | 789 | ||||||||
Citibank, N.A. | 2,709 | (531 | ) | — | 2,178 | |||||||||||
Goldman Sachs International | 815 | (815 | ) | — | — | |||||||||||
Merrill Lynch International | 315 | (315 | ) | — | — | |||||||||||
Morgan Stanley | 1,202 | (1,202 | ) | — | ||||||||||||
Standard Chartered Bank | 10,644 | (113 | ) | — | 10,531 | |||||||||||
State Street Corp. | 890 | (19 | ) | — | 871 | |||||||||||
TD Bank Financial Group | 20 | (20 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| $ | 17,384 | $ | (3,015 | ) | $ | — | $ | 14,369 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| Counterparty | Gross Amount of Derivative Liabilities Presented on the Statement of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Posted | Net Amount Due To Counterparty (Not less than zero) | ||||||||||||
Australia and New Zealand Banking Group Limited | $ | 81 | $ | — | $ | — | $ | 81 | ||||||||
Citibank, N.A. | 531 | (531 | ) | — | �� | — | ||||||||||
Goldman Sachs International | 4,067 | (815 | ) | — | 3,252 | |||||||||||
Merrill Lynch International | 1,142 | (315 | ) | 827 | ||||||||||||
Morgan Stanley | 4,609 | (1,202 | ) | — | 3,407 | |||||||||||
Royal Bank of Canada | 705 | — | — | 705 | ||||||||||||
Standard Chartered Bank | 113 | (113 | ) | — | — | |||||||||||
State Street Corp. | 19 | (19 | ) | — | ||||||||||||
TD Bank Financial Group | 2,778 | (20 | ) | — | 2,758 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| $ | 14,045 | $ | (3,015 | ) | $ | — | $ | 11,030 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities subject to master netting arrangements on the Statements of Assets and Liabilities. |
The following table presents the value of derivatives held as of October 31, 2016, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
International Research Enhanced Equity Fund
| Derivative Contracts | Statements of Assets and Liabilities Location | |||||
| Gross Assets: | Futures Contracts (a) | |||||
Equity contracts | Receivables, Net Assets — Unrealized Appreciation | $ | 698 | |||
|
| |||||
| (a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
| 146 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
The following table presents the value of derivatives held as of October 31, 2016, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
International Value Fund
| Derivative Contracts | Statements of Assets and Liabilities Location | |||||
| Gross Assets: | Forward Foreign Currency Exchange Contracts | |||||
Foreign exchange contracts | Receivables | $ | 6,930 | |||
|
| |||||
Gross Liabilities: | ||||||
Foreign exchange contracts | Payables | $ | (7,369 | ) | ||
|
| |||||
The following table presents the Fund’s gross derivative assets and liabilities by counterparty net of amounts available for offset under netting arrangements and any related collateral received or posted by the Fund as of October 31, 2016 (amounts in thousands):
International Value Fund
| Counterparty | Gross Amount of Derivative Assets Presented on the Statement of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Received | Net Amount Due From Counterparty (Not less than zero) | ||||||||||||
Australia and New Zealand Banking Group Limited | $ | 367 | $ | (99 | ) | $ | — | $ | 268 | |||||||
BNP Paribas | 68 | — | — | 68 | ||||||||||||
Citibank, N.A. | 1,692 | (409 | ) | — | 1,283 | |||||||||||
Credit Suisse International | 2,512 | (905 | ) | — | 1,607 | |||||||||||
Deutsche Bank AG | 46 | (46 | ) | — | — | |||||||||||
Goldman Sachs International | 174 | (174 | ) | — | — | |||||||||||
HSBC Bank, N.A. | 567 | (255 | ) | — | 312 | |||||||||||
Morgan Stanley | 540 | — | — | 540 | ||||||||||||
Societe Generale | 217 | — | — | 217 | ||||||||||||
Standard Chartered Bank | 354 | (354 | ) | — | — | |||||||||||
State Street Corp. | 335 | (335 | ) | — | — | |||||||||||
TD Bank Financial Group | 58 | — | — | 58 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
| $ | 6,930 | $ | (2,577 | ) | $ | — | $ | 4,353 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| Counterparty | Gross Amount of Derivative Liabilities Presented on the Statement of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Posted | Net Amount Due To Counterparty (Not less than zero) | ||||||||||||
Australia and New Zealand Banking Group Limited | $ | 99 | $ | (99 | ) | $ | — | $ | — | |||||||
Citibank, N.A. | 409 | (409 | ) | — | — | |||||||||||
Credit Suisse International | 905 | (905 | ) | — | — | |||||||||||
Deutsche Bank AG | 754 | (46 | ) | — | 708 | |||||||||||
Goldman Sachs International | 416 | (174 | ) | — | 242 | |||||||||||
HSBC Bank, N.A. | 255 | (255 | ) | — | — | |||||||||||
Merrill Lynch International | 1,216 | — | — | 1,216 | ||||||||||||
Royal Bank of Canada | 288 | — | — | 288 | ||||||||||||
Standard Chartered Bank | 2,404 | (354 | ) | — | 2,050 | |||||||||||
State Street Corp. | 623 | (335 | ) | — | 288 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
| $ | 7,369 | $ | (2,577 | ) | $ | — | $ | 4,792 | ||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities subject to master netting arrangements on the Statements of Assets and Liabilities. |
The Funds are party to various derivative contracts governed by International Swaps and Derivatives Association master agreements (“ISDA agreements”). The Funds’ ISDA agreements, which are separately negotiated with each dealer counterparty, may contain provisions allowing, absent other considerations, a counterparty to exercise rights, to the extent not otherwise waived, against the Funds in the event the Funds’ net assets
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 147 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
decline over time by a pre-determined percentage or fall below a pre-determined floor. The ISDA agreements may also contain provisions allowing, absent other conditions, the Funds to exercise rights, to the extent not otherwise waived, against the counterparty (i.e. decline in a counterparty’s credit rating below a specified level). Such rights for both the counterparty and Funds often include the ability to terminate (i.e. close out) open contracts at prices which may favor the counterparty, which could have an adverse effect on the Funds. The ISDA agreements give the Funds and counterparty the right, upon an event of default, to close out all transactions traded under such agreements and to net amounts owed or due across all transactions and offset such net payable or receivable with collateral posted to a segregated account by one party to the other.
The following tables present the effect of derivatives on the Statements of Operations for the year ended October 31, 2016, by primary underlying risk exposure (amounts in thousands):
Emerging Economies Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 3,290 | ||
|
| |||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 697 | ||
|
| |||
Emerging Markets Equity Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 1,258 | ||
|
| |||
Emerging Markets Equity Income Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (105 | ) | |
|
| |||
Global Research Enhanced Index Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 11,473 | ||
|
| |||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (10,589 | ) | |
|
| |||
Global Unconstrained Equity Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 228 | ||
|
| |||
International Equity Income Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $ | 240 | ||
|
| |||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $ | (113 | ) | |
|
| |||
| 148 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
International Opportunities Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||||||||||
| Derivative Contracts | Futures Contracts | Forward Foreign Currency Exchange Contracts | Total | |||||||||
Equity contracts | $ | 8,069 | $ | — | $ | 8,069 | ||||||
Foreign exchange contracts | — | 30,000 | 30,000 | |||||||||
|
|
|
|
|
| |||||||
| $ | 8,069 | $ | 30,000 | $ | 38,069 | |||||||
|
|
|
|
|
| |||||||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||||||||||
| Derivative Contracts | Futures Contracts | Forward Foreign Currency Exchange Contracts | Total | |||||||||
Equity contracts | $ | 386 | $ | — | $ | 386 | ||||||
Foreign exchange contracts | — | 4,056 | 4,056 | |||||||||
|
|
|
|
|
| |||||||
| $ | 386 | $ | 4,056 | $ | 4,442 | |||||||
|
|
|
|
|
| |||||||
International Research Enhanced Equity Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | ||||
Equity contracts | $ | 3,623 | ||
|
| |||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 310 | ||
|
| |||
International Value Fund
| Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||||||||||
| Derivative Contracts | Futures Contracts | Forward Foreign Currency Exchange Contracts | Total | |||||||||
Equity contracts | $ | 1,684 | $ | — | $ | 1,684 | ||||||
Foreign exchange contracts | — | 18,395 | $ | 18,395 | ||||||||
|
|
|
|
|
| |||||||
| $ | 1,684 | $ | 18,395 | $ | 20,079 | |||||||
|
|
|
|
|
| |||||||
| Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
| Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $ | (2,175 | ) | |
|
| |||
The Funds’ derivatives contracts held at October 31, 2016 are not accounted for as hedging instruments under GAAP.
F. Structured Instruments — Emerging Markets Equity Fund and Emerging Markets Equity Income Fund invested in structured instruments that have similar economic characteristics to equity securities. These instruments often seek to replicate the performance of an underlying reference asset such as an equity security or market (“reference asset”). The value of these instruments is generally derived from the price movements of the reference asset. On maturity date of each instrument, the Funds will receive a payment from the instrument’s issuing entity based on the value of the reference asset and record a realized gain or loss. The instrument may receive dividends paid in connection with the reference asset which are reported as Net realized gain (loss) on investment transactions on the Statements of Operations.
Structured instruments may be issued by banks, broker dealers or their affiliates or other entities and typically constitute unsecured contractual obligations of the issuing entity. In addition to credit risk, investments in structured instruments generally have the same risks associated with a direct investment in the reference asset. However, there can be no assurance that structured instruments will trade at the same price or have the same value as the reference asset. In addition, structured instruments may be subject to transfer restrictions and a liquid market may not exist for these instruments.
The lack of a liquid market may make it difficult to sell the structured instruments or accurately value them. Investments in structured instruments subject the Funds to counterparty risk.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 149 | ||||||
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
G. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund’s books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at period end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
H. Offering and Organizational Costs — Total offering costs of approximately $121,000 incurred in connection with the offering of shares of Emerging Markets Equity Income Fund were amortized on a straight line basis over 12 months from the date the Fund commenced operations. For the year ended October 31, 2016, total offering costs amortized were approximately $14,000.
I. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts for amortization of premiums and accretion of discounts. Dividend income net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a fund first learns of the dividend.
J. Allocation of Income and Expenses — Expenses directly attributable to a fund are charged directly to that fund, while the expenses attributable to more than one fund of the Trusts are allocated among the respective funds. In calculating the NAV of each class, investment income, realized and unrealized gains and losses and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day.
Transfer agency fees and sub-transfer agency fees are class-specific expenses. The amount of the transfer agency fees and sub-transfer agency fees charged to each class of the Funds for the year ended October 31, 2016 are as follows (amounts in thousands):
| Class A | Class C | Class R2 | Class R5 | Class R6 | Institutional Class | Select Class | Total | |||||||||||||||||||||||||
Emerging Economies Fund | ||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 6 | $ | 2 | n/a | $ | 1 | $ | 9 | n/a | $ | 5 | $ | 23 | ||||||||||||||||||
Sub-transfer agency fees | 76 | 5 | n/a | 2 | — | n/a | 19 | 102 | ||||||||||||||||||||||||
Emerging Markets Equity Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 59 | 10 | n/a | — | 14 | $ | 14 | 17 | 114 | |||||||||||||||||||||||
Sub-transfer agency fees | 455 | 55 | n/a | — | — | 89 | 240 | 839 | ||||||||||||||||||||||||
Emerging Markets Equity Income Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 2 | 1 | n/a | — | (a) | — | (a) | n/a | — | (a) | 3 | |||||||||||||||||||||
Sub-transfer agency fees | — | — | n/a | — | — | n/a | — | — | ||||||||||||||||||||||||
Global Research Enhanced Index Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 1 | — | (a) | $ | — | (a) | n/a | n/a | n/a | 64 | 65 | |||||||||||||||||||||
Sub-transfer agency fees | — | — | — | n/a | n/a | n/a | 105 | 105 | ||||||||||||||||||||||||
Global Unconstrained Equity Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 3 | 1 | — | (a) | — | (a) | — | (a) | n/a | 2 | 6 | |||||||||||||||||||||
Sub-transfer agency fees | 16 | — | (a) | — | — | — | n/a | 2 | 18 | |||||||||||||||||||||||
International Equity Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 33 | 7 | 1 | 1 | 22 | n/a | 12 | 76 | ||||||||||||||||||||||||
Sub-transfer agency fees | 145 | 29 | 4 | 30 | — | n/a | 82 | 290 | ||||||||||||||||||||||||
International Equity Income Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 4 | 3 | 1 | 1 | — | (a) | n/a | 4 | 13 | |||||||||||||||||||||||
Sub-transfer agency fees | 33 | 8 | — | (a) | — | — | n/a | 14 | 55 | |||||||||||||||||||||||
| 150 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
Table of Contents
| Class A | Class��C | Class R2 | Class R5 | Class R6 | Institutional Class | Select Class | Total | |||||||||||||||||||||||||
International Opportunities Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | $ | 15 | $ | 2 | $ | n/a | $ | n/a | $ | 17 | $ | 2 | $ | 9 | $ | 45 | ||||||||||||||||
Sub-transfer agency fees | 121 | 2 | n/a | n/a | — | 6 | 13 | 142 | ||||||||||||||||||||||||
International Research Enhanced Equity Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 39 | 4 | 3 | n/a | n/a | n/a | 12 | 58 | ||||||||||||||||||||||||
Sub-transfer agency fees | 94 | 30 | 11 | n/a | n/a | n/a | 115 | 250 | ||||||||||||||||||||||||
International Unconstrained Equity Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 5 | 3 | $ | 1 | — | (a) | — | (a) | n/a | 4 | 13 | |||||||||||||||||||||
Sub-transfer agency fees | 6 | 2 | — | — | — | n/a | 4 | 12 | ||||||||||||||||||||||||
International Value Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 29 | 4 | 1 | — | 1 | $ | 9 | 8 | 52 | |||||||||||||||||||||||
Sub-transfer agency fees | 1,253 | 46 | 6 | — | — | 799 | 71 | 2,175 | ||||||||||||||||||||||||
Intrepid International Fund |
| |||||||||||||||||||||||||||||||
Transfer agency fees | 10 | 1 | 1 | n/a | 19 | 3 | 2 | 36 | ||||||||||||||||||||||||
Sub-transfer agency fees | 112 | 2 | 1 | n/a | — | 1 | 19 | 135 | ||||||||||||||||||||||||
| (a) | Amount rounds to less than 500. |
K. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds’ tax positions for all open tax years and has determined that as of October 31, 2016, no liability for income tax is required in the Funds’ financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each of the Funds’ Federal tax returns for the prior three fiscal years, or since inception if shorter, remains subject to examination by the Internal Revenue Service.
L. Foreign Taxes — The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. Certain Funds are subject to a tax imposed on short-term capital gains on securities of issuers domiciled in India. The Funds record an estimated deferred tax liability for these securities that have been held for less than one year at the end of the reporting period, assuming those positions were disposed of at the end of the period. This amount, if any, is reported as Deferred India capital gains tax in the accompanying Statements of Assets and Liabilities. Short-term realized capital losses on the sale of securities of issuers domiciled in India can be carried forward for eight years to offset potential future short-term realized capital gains.
India has enacted rules imposing a tax on the indirect transfers of Indian shares. Based upon current guidance from the Indian tax authorities, management does not believe that such tax will be applicable to the Funds. However, management’s conclusion, regarding this and other foreign tax matters, may be subject to future review based on changes in, or the interpretation of, the accounting standards and the tax laws and regulations.
M. Distributions to Shareholders — Distributions from net investment income if any, are generally declared and paid annually, except for International Equity Income Fund, which are declared and paid monthly and for International Equity Fund, which are declared and paid quarterly. Distributions are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in separate class expenses. Net realized capital gains, if any, are distributed by each Fund at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax-basis treatment.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 151 | ||||||
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NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
The following amounts were reclassified within the capital accounts (amounts in thousands):
| Paid-in-Capital | Accumulated undistributed (distributions in excess of) net investment income | Accumulated net realized gains (losses) | ||||||||||
Emerging Economies Fund | $ | — | $ | 403 | $ | (403 | ) | |||||
Emerging Markets Equity Fund | — | (186 | ) | 186 | ||||||||
Emerging Markets Equity Income Fund | — | (7 | ) | 7 | ||||||||
Global Research Enhanced Index Fund | — | (431 | ) | 431 | ||||||||
Global Unconstrained Equity Fund | — | 174 | (174 | ) | ||||||||
International Equity Fund | — | (1,457 | ) | 1,457 | ||||||||
International Equity Income Fund | — | 449 | (449 | ) | ||||||||
International Opportunities Fund | — | 30,151 | (30,151 | ) | ||||||||
International Research Enhanced Equity Fund | — | (78 | ) | 78 | ||||||||
International Unconstrained Equity Fund | — | 1,164 | (1,164 | ) | ||||||||
International Value Fund | (35,803 | ) | 19,119 | 16,684 | ||||||||
Intrepid International Fund | (281,157 | ) | 2,841 | 278,316 | ||||||||
The reclassifications for the Funds relate primarily to foreign currency gains or losses, expiration of capital loss carryforwards, return of capital distributions and investments in passive foreign investment companies (“PFICs”).
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to Investment Advisory Agreements, the Adviser supervises the investments of each Fund and for such services is paid a fee. The fee is accrued daily and paid monthly based on each Fund’s respective average daily net assets.
The annual rate for each Fund is as follows:
Emerging Economies Fund* | 0.85 | % | ||
Emerging Markets Equity Fund* | 0.85 | |||
Emerging Markets Equity Income Fund | 1.00 | |||
Global Research Enhanced Index Fund | 0.20 | |||
Global Unconstrained Equity Fund | 0.70 | |||
International Equity Fund** | 0.80 | |||
International Equity Income Fund | 0.70 | |||
International Opportunities Fund | 0.60 | |||
International Research Enhanced Equity Fund | 0.20 | |||
International Unconstrained Equity Fund | 0.70 | |||
International Value Fund | 0.60 | |||
Intrepid International Fund | 0.60 |
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
| * | Prior to May 20, 2016 the Investment Advisory fee for the Emerging Economies Fund and the Emerging Markets Equity Fund was 1.00%. |
| ** | Effective November 1, 2016 the Investment Advisory fee for the International Equity Fund was reduced to 0.70%. |
B. Administration Fee — Pursuant to Administration Agreements, the Administrator provides certain administration services to the Funds. In consideration of these services, the Administrator receives a fee accrued daily and paid monthly at an annual rate of 0.15% of the first $25 billion of the average daily net assets of all funds in the J.P. Morgan Funds Complex covered by the Administration Agreement (excluding certain funds of funds and money market funds) and 0.075% of the average daily net assets in excess of $25 billion of all such funds. For the year ended October 31, 2016, the effective rate was 0.08% of each Fund’s average daily net assets, notwithstanding any fee waivers and/or expense reimbursements.
The Administrator waived Administration fees as outlined in Note 3.F.
JPMorgan Chase Bank, N.A. (“JPMCB”), a wholly-owned subsidiary of JPMorgan, serves as the Funds’ sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the fees payable to the Administrator.
C. Distribution Fees — Pursuant to a Distribution Agreement, JPMorgan Distribution Services, Inc. (the “Distributor”), a wholly-owned subsidiary of JPMorgan, serves as the Trusts’ exclusive underwriter and promotes and arranges for the sale of each Fund’s shares. The Board has adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class C and Class R2 Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the
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1940 Act. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to the Distributor, at annual rates of the average daily net assets as shown in the table below:
| Class A | Class C | Class R2 | ||||||||||
Emerging Economies Fund | 0.25 | % | 0.75 | % | n/a | |||||||
Emerging Markets Equity Fund | 0.25 | 0.75 | n/a | |||||||||
Emerging Markets Equity Income Fund | 0.25 | 0.75 | n/a | |||||||||
Global Research Enhanced Index Fund | 0.25 | 0.75 | 0.50 | % | ||||||||
Global Unconstrained Equity Fund | 0.25 | 0.75 | 0.50 | |||||||||
International Equity Fund | 0.25 | 0.75 | 0.50 | |||||||||
International Equity Income Fund | 0.25 | 0.75 | 0.50 | |||||||||
International Opportunities Fund | 0.25 | 0.75 | n/a | |||||||||
International Research Enhanced Equity Fund | 0.25 | 0.75 | 0.50 | |||||||||
International Unconstrained Equity Fund | 0.25 | 0.75 | 0.50 | |||||||||
International Value Fund | 0.25 | 0.75 | 0.50 | |||||||||
Intrepid International Fund | 0.25 | 0.75 | 0.50 | |||||||||
In addition, the Distributor is entitled to receive the front-end sales charges from purchases of Class A Shares and the CDSC from redemptions of Class C Shares and certain Class A Shares for which front-end sales charges have been waived. For the year ended October 31, 2016, the Distributor retained the following amounts (in thousands):
| Front-End Sales Charge | CDSC | |||||||
Emerging Economies Fund | $ | 4 | $ | — | ||||
Emerging Markets Equity Fund | 85 | — | (a) | |||||
Emerging Markets Equity Income Fund | — | (a) | — | |||||
Global Unconstrained Equity Fund | 1 | — | ||||||
International Equity Fund | 13 | — | (a) | |||||
International Equity Income Fund | 40 | — | (a) | |||||
International Opportunities Fund | 4 | — | (a) | |||||
International Research Enhanced Equity Fund | 4 | — | (a) | |||||
International Unconstrained Equity Fund | 15 | — | (a) | |||||
International Value Fund | 289 | 1 | ||||||
Intrepid International Fund | 2 | — | ||||||
| (a) | Amount rounds to less than 500. |
D. Shareholder Servicing Fees — The Trusts, on behalf of the Funds, have entered into a Shareholder Servicing Agreement with the Distributor
under which the Distributor provides certain support services to the shareholders. The Class R6 Shares do not charge a shareholder servicing fee. For performing these services, the Distributor receives a fee that is accrued daily and paid monthly equal to a percentage of the average daily net assets as shown in the table below:
| Class A | Class C | Class R2 | Class R5 | Institutional Class | Select Class | |||||||||||||||||||
Emerging Economies Fund | 0.25 | % | 0.25 | % | n/a | 0.05 | % | n/a | 0.25 | % | ||||||||||||||
Emerging Markets Equity Fund | 0.25 | 0.25 | n/a | 0.05 | 0.10 | % | 0.25 | |||||||||||||||||
Emerging Markets Equity Income Fund | 0.25 | 0.25 | n/a | 0.05 | n/a | 0.25 | ||||||||||||||||||
Global Research Enhanced Index Fund | 0.25 | 0.25 | 0.25 | % | n/a | n/a | 0.25 | |||||||||||||||||
Global Unconstrained Equity Fund | 0.25 | 0.25 | 0.25 | 0.05 | n/a | 0.25 | ||||||||||||||||||
International Equity Fund | 0.25 | 0.25 | 0.25 | 0.05 | n/a | 0.25 | ||||||||||||||||||
International Equity Income Fund | 0.25 | 0.25 | 0.25 | 0.05 | n/a | 0.25 | ||||||||||||||||||
International Opportunities Fund | 0.25 | 0.25 | n/a | n/a | 0.10 | 0.25 | ||||||||||||||||||
International Research Enhanced Equity Fund | 0.25 | 0.25 | 0.25 | n/a | n/a | 0.25 | ||||||||||||||||||
International Unconstrained Equity Fund | 0.25 | 0.25 | 0.25 | 0.05 | n/a | 0.25 | ||||||||||||||||||
International Value Fund | 0.25 | 0.25 | 0.25 | 0.05 | 0.10 | 0.25 | ||||||||||||||||||
Intrepid International Fund | 0.25 | 0.25 | 0.25 | n/a | 0.10 | 0.25 | ||||||||||||||||||
The Distributor has entered into shareholder services contracts with affiliated and unaffiliated financial intermediaries who provide shareholder services and other related services to their clients or customers who invest in the Funds under which the Distributor will pay all or a portion of such fees earned to financial intermediaries for performing such services.
The Distributor waived shareholder servicing fees as outlined in Note 3.F.
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NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
E. Custodian and Accounting Fees — JPMCB provides portfolio and accounting services to the Funds. For performing these services, the Funds pay JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses. The amounts paid directly to JPMCB by the Funds for custody and accounting services are included in Custodian and accounting fees on the Statements of Operations.
Interest income earned on cash balances at the custodian, if any, is included as Interest income from affiliates on the Statements of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statements of Operations.
F. Waivers and Reimbursements — The Adviser, Administrator and/or Distributor have contractually agreed to waive fees and/or reimburse the Funds to the extent that total annual operating expenses (excluding acquired fund fees and expenses other than certain money market fund fees as described below, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation and extraordinary expenses) exceed the percentages of the Funds’ respective average daily net assets as shown in the table below:
| Class A | Class C | Class R2 | Class R5 | Class R6 | Institutional Class | Select Class | ||||||||||||||||||||||
Emerging Economies Fund* | 1.35 | % | 1.85 | % | n/a | 0.95 | % | 0.85 | % | n/a | 1.10 | % | ||||||||||||||||
Emerging Markets Equity Fund** | 1.35 | 1.85 | n/a | 0.95 | 0.85 | 0.95 | % | 1.10 | ||||||||||||||||||||
Emerging Markets Equity Income Fund | 1.55 | 2.05 | n/a | 1.10 | 1.05 | n/a | 1.30 | |||||||||||||||||||||
Global Research Enhanced Index Fund | 0.59 | 1.09 | 0.84 | % | n/a | n/a | n/a | 0.34 | ||||||||||||||||||||
Global Unconstrained Equity Fund*** | 0.75 | 1.25 | 1.00 | 0.30 | 0.25 | n/a | 0.40 | |||||||||||||||||||||
International Equity Fund | 1.31 | 1.81 | 1.56 | 0.86 | 0.81 | n/a | 1.06 | |||||||||||||||||||||
International Equity Income Fund | 1.25 | 1.75 | 1.50 | 0.80 | 0.75 | n/a | 0.90 | |||||||||||||||||||||
International Opportunities Fund**** | 1.31 | 1.92 | n/a | n/a | 0.81 | 0.91 | 1.06 | |||||||||||||||||||||
International Research Enhanced Equity Fund | 0.60 | 1.10 | 0.85 | n/a | n/a | n/a | 0.35 | |||||||||||||||||||||
International Unconstrained Equity Fund | 1.25 | 1.75 | 1.50 | 0.80 | 0.75 | n/a | 0.90 | |||||||||||||||||||||
International Value Fund | 1.35 | 1.85 | 1.60 | 0.95 | 0.85 | 0.95 | 1.10 | |||||||||||||||||||||
Intrepid International Fund | 1.25 | 1.75 | 1.50 | n/a | 0.75 | 0.85 | 0.90 | |||||||||||||||||||||
| * | Prior to May 20, 2016, the contractual expense limitations for Emerging Economies Fund were 1.55%, 2.05%, 1.10%, 1.05% and 1.30% for Class A, Class C, Class R5, Class R6 and Select Class Shares, respectively. |
| ** | Prior to May 20, 2016, the contractual expense limitations for Emerging Markets Equity Fund were 1.55%, 2.05%, 1.05%, 1.15% and 1.30% for Class A, Class C, Class R6, Institutional Class and Select Class Shares, respectively. |
| *** | The expense limitation agreement was in effect for the year ended October 31, 2016, and is in effect through May 31, 2017. Thereafter, the contractual expense limitation will be 1.25%, 1.75%, 1.50%, 0.80%, 0.75% and 0.90% for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively. |
| **** | The expense limitation is in place until October 31, 2018. |
Effective November 1, 2016, the contractual expense limitation for International Equity Fund were reduced to 1.24%, 1.74%, 1.49%, 0.84%, 0.74% and 0.99% for Class A, Class C, Class R2, Class R5, Class R6 and Select Class Shares, respectively until at least May 31, 2017.
Effective November 1, 2016 the contractual expense limitation for International Opportunities Fund were reduced to 1.24%, 1.74%, 0.74% and 0.99% for Class A, Class C, Class R6 and Select Class Shares, respectively until at least May 31, 2017.
Except as noted above, the expense limitation agreements were in effect for the year ended October 31, 2016 and are in place until February 28, 2017.
For the year ended October 31, 2016, the Funds’ service providers waived fees and/or reimbursed expenses for each of the Funds as follows (amounts in thousands). None of these parties expect the Funds to repay any such waived fees and/or reimbursed expenses in future years.
| Contractual Waivers | ||||||||||||||||||||
| Investment Advisory | Administration | Shareholder Servicing | Total | Contractual Reimbursements | ||||||||||||||||
Emerging Economies Fund | $ | 1,139 | $ | 759 | $ | 113 | $ | 2,011 | $ | 5 | ||||||||||
Emerging Markets Equity Fund | 1,968 | 1,312 | 932 | 4,212 | 3 | |||||||||||||||
Emerging Markets Equity Income Fund | 48 | 3 | 2 | 53 | 166 | |||||||||||||||
Global Research Enhanced Index Fund | 8,974 | 5,688 | 81 | 14,743 | 1 | |||||||||||||||
Global Unconstrained Equity Fund | 26 | 14 | 6 | 46 | 212 | |||||||||||||||
International Equity Fund | 2,003 | 1,332 | 334 | 3,669 | 7 | |||||||||||||||
International Equity Income Fund | 249 | 93 | 57 | 399 | 2 | |||||||||||||||
International Opportunities Fund | — | — | — | (a) | — | (a) | — | |||||||||||||
International Research Enhanced Equity Fund | 1,683 | 882 | 211 | 2,776 | — | (a) | ||||||||||||||
International Unconstrained Equity Fund | 168 | 75 | 34 | 277 | 1 | |||||||||||||||
International Value Fund | — | — | 501 | 501 | 5 | |||||||||||||||
Intrepid International Fund | — | — | 97 | 97 | 1 | |||||||||||||||
| (a) | Amount rounds to less than 500. |
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| Voluntary Waivers | ||||||||
| Investment Advisory | Total | |||||||
Global Unconstrained Equity Fund | $ | 87 | $ | 87 | ||||
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). Effective March 1, 2016, the Adviser, Administrator and/or Distributor, as shareholder servicing agent, have contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the respective net fees each collects from the affiliated money market fund on the applicable Funds’ investment in such affiliated money market fund. Prior to March 1, 2016, a portion of the waiver was voluntary.
The amounts of these waivers resulting from investments in these money market funds for the year ended October 31, 2016 were as follows (amounts in thousands):
Emerging Economies Fund | $ | 62 | ||
Emerging Markets Equity Fund | 120 | |||
Emerging Markets Equity Income Fund | — | (a) | ||
Global Research Enhanced Index Fund | 124 | |||
Global Unconstrained Equity Fund | 3 | |||
International Equity Fund | 140 | |||
International Equity Income Fund | 7 | |||
International Opportunities Fund | 96 | |||
International Research Enhanced Equity Fund | 60 | |||
International Unconstrained Equity Fund | 6 | |||
International Value Fund | 46 | |||
Intrepid International Fund | 90 |
| (a) | Amount rounds to less than 500. |
G. Other — Certain officers of the Trusts are affiliated with the Adviser, the Administrator and the Distributor. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.
The Board appointed a Chief Compliance Officer to the Funds in accordance with Federal securities regulations. Each Fund, along with other affiliated funds, makes reimbursement payments, on a pro-rata basis, to the Administrator for a portion of the fees associated with the Office of the Chief Compliance Officer. Such fees are included in Trustees’ and Chief Compliance Officer’s fees on the Statements of Operations.
The Trusts adopted a Trustee Deferred Compensation Plan (the “Plan”) which allows the Independent Trustees to defer the receipt of all or a portion of compensation related to performance of their duties as Trustees. The deferred fees are invested in various J.P. Morgan Funds until distribution in accordance with the Plan.
During the year ended October 31, 2016, International Equity Income Fund and International Unconstrained Equity Fund purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate are affiliated with the Adviser.
The Funds may use related party broker-dealers. For the year ended October 31, 2016, the Funds incurred brokerage commissions with broker-dealers affiliated with the Adviser as follows (amounts in thousands):
Emerging Economies Fund | $ | 3 | ||
Emerging Markets Equity Fund | 4 | |||
Emerging Markets Equity Income Fund | — | (a) | ||
Global Research Enhanced Index Fund | 15 | |||
Global Unconstrained Equity Fund | 2 | |||
International Equity Fund | 20 | |||
International Equity Income Fund | 1 | |||
International Opportunities Fund | 42 | |||
International Research Enhanced Equity Fund | 5 | |||
International Unconstrained Equity Fund | 2 | |||
International Value Fund | 21 | |||
Intrepid International Fund | 22 |
| (a) | Amount rounds to less than 500. |
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments, subject to certain conditions.
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NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
4. Investment Transactions
During the year ended October 31, 2016, purchases and sales of investments (excluding short-term investments) were as follows (amounts in thousands):
| Purchases (excluding U.S. Government) | Sales (excluding U.S. Government) | |||||||
Emerging Economies Fund | $ | 1,509,781 | $ | 895,020 | ||||
Emerging Markets Equity Fund | 1,073,184 | 532,748 | ||||||
Emerging Markets Equity Income Fund | 9,118 | 999 | ||||||
Global Research Enhanced Index Fund | 2,397,005 | 2,611,719 | ||||||
Global Unconstrained Equity Fund | 138,393 | 143,712 | ||||||
International Equity Fund | 865,695 | 342,320 | ||||||
International Equity Income Fund | 210,263 | 177,562 | ||||||
International Opportunities Fund | 1,860,042 | 1,198,244 | ||||||
International Research Enhanced Equity Fund | 720,207 | 248,259 | ||||||
International Unconstrained Equity Fund | 82,387 | 45,728 | ||||||
International Value Fund | 1,146,952 | 2,046,839 | ||||||
Intrepid International Fund | 1,545,140 | 901,162 | ||||||
During the year ended October 31, 2016, there were no purchases or sales of U.S. Government securities.
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investment securities held at October 31, 2016 were as follows (amounts in thousands):
| Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Emerging Economies Fund | $ | 1,666,022 | $ | 189,111 | $ | 88,997 | $ | 100,114 | ||||||||
Emerging Markets Equity Fund | 2,759,960 | 559,665 | 177,067 | 382,598 | ||||||||||||
Equity Markets Equity Income Fund | 11,266 | 740 | 346 | 394 | ||||||||||||
Global Research Enhanced Index Fund | 6,431,078 | 817,566 | 364,482 | 453,084 | ||||||||||||
Global Unconstrained Equity Fund | 1,700 | 69 | 121 | (52 | ) | |||||||||||
International Equity Fund | 3,246,440 | 522,648 | 357,557 | 165,091 | ||||||||||||
International Equity Income Fund | 130,818 | 7,544 | 4,780 | 2,764 | ||||||||||||
International Opportunities Fund | 2,707,134 | 249,436 | 202,521 | 46,915 | ||||||||||||
International Research Enhanced Equity Fund | 1,316,619 | 131,448 | 122,055 | 9,393 | ||||||||||||
International Unconstrained Equity Fund | 109,796 | 8,567 | 8,488 | 79 | ||||||||||||
International Value Fund | 1,358,600 | 76,642 | 119,525 | (42,883 | ) | |||||||||||
Intrepid International Fund | 2,708,447 | 217,097 | 240,061 | (22,964 | ) | |||||||||||
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to investments in PFICs and wash sale loss deferrals.
The tax character of distributions paid during the year ended October 31, 2016 was as follows (amounts in thousands):
| Ordinary Income* | Net Long-Term Capital Gains | Return of | Total Distributions Paid | |||||||||||||
Emerging Economies Fund | $ | 13,283 | $ | — | $ | — | $ | 13,283 | ||||||||
Emerging Markets Equity Fund | 20,262 | — | — | 20,262 | ||||||||||||
Emerging Markets Equity Income Fund | 141 | — | — | 141 | ||||||||||||
Global Research Enhanced Index Fund | 138,054 | — | — | 138,054 | ||||||||||||
Global Unconstrained Equity Fund | 5,669 | 524 | 1,030 | 7,223 | ||||||||||||
International Equity Fund | 64,361 | — | — | 64,361 | ||||||||||||
International Equity Income Fund | 3,670 | 1,746 | — | 5,416 | ||||||||||||
International Opportunities Fund | 14,487 | — | — | 14,487 | ||||||||||||
International Research Enhanced Equity Fund | 21,405 | 7,959 | — | 29,364 | ||||||||||||
International Unconstrained Equity Fund | 274 | — | — | 274 | ||||||||||||
International Value Fund | 29,657 | — | — | 29,657 | ||||||||||||
Intrepid International Fund | 42,882 | — | — | 42,882 | ||||||||||||
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The tax character of distributions paid during the year ended October 31, 2015 was as follows (amounts in thousands):
| Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Emerging Economies Fund | $ | 24,053 | $ | — | $ | 24,053 | ||||||
Emerging Markets Equity Fund | 27,266 | — | 27,266 | |||||||||
Emerging Markets Equity Income Fund | 88 | — | 88 | |||||||||
Global Research Enhanced Index Fund | 101,093 | 18,009 | 119,102 | |||||||||
Global Unconstrained Equity Fund | 414 | 679 | 1,093 | |||||||||
International Equity Fund | 49,283 | — | 49,283 | |||||||||
International Equity Income Fund | 4,463 | 1,130 | 5,593 | |||||||||
International Opportunities Fund | 46,728 | — | 46,728 | |||||||||
International Research Enhanced Equity Fund | 21,518 | 104,358 | 125,876 | |||||||||
International Unconstrained Equity Fund | 135 | 230 | 365 | |||||||||
International Value Fund | 134,534 | — | 134,534 | |||||||||
Intrepid International Fund | 24,512 | — | �� | 24,512 | ||||||||
| * | Short-term gains are treated as ordinary income for income tax purposes. |
At October 31, 2016, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows (amounts in thousands):
| Current Distributable Ordinary Income | Current Distributable Long-Term Capital Gain or (Tax Basis Capital Loss Carryover) | Unrealized Appreciation (Depreciation) | ||||||||||
Emerging Economies Fund | $ | 22,466 | $ | (240,682 | ) | $ | 99,314 | |||||
Emerging Markets Equity Fund | 19,137 | (97,872 | ) | 377,980 | ||||||||
Emerging Markets Equity Income Fund | 18 | (501 | ) | 394 | ||||||||
Global Research Enhanced Index Fund | 133,184 | (236,628 | ) | 452,481 | ||||||||
Global Unconstrained Equity Fund | — | — | (53 | ) | ||||||||
International Equity Fund | 8,174 | (41,407 | ) | 164,720 | ||||||||
International Equity Income Fund | 488 | (9,342 | ) | 2,754 | ||||||||
International Opportunities Fund | 94,751 | (109,971 | ) | 47,298 | ||||||||
International Research Enhanced Equity Fund | 31,206 | (3,153 | ) | 9,358 | ||||||||
International Unconstrained Equity Fund | 2,553 | (4,719 | ) | 78 | ||||||||
International Value Fund | 59,157 | (376,555 | ) | (43,707 | ) | |||||||
Intrepid International Fund | 64,358 | (297,270 | ) | (23,317 | ) | |||||||
For the Funds the cumulative timing differences primarily consist of wash sale loss deferrals, investments in PFICs, trustee deferred compensation and mark to market of forward foreign currency contracts.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized by the Funds after October 31, 2011, are carried forward indefinitely, and retain their character as short-term and/or long-term losses. Prior to the Act, net capital losses incurred by the Funds were carried forward for eight years and treated as short-term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
At October 31, 2016, the Funds had the following pre-enactment net capital loss carryforwards, expiring during the years indicated, which are available to offset future realized gains as follows (amounts in thousands):
| 2017 | 2018 | 2019 | Total | |||||||||||||
Emerging Economies Fund | $ | 1,890 | $ | — | $ | 16,730 | $ | 18,620 | ||||||||
Emerging Markets Equity Fund | 4,903 | — | — | 4,903 | ||||||||||||
International Equity Fund | — | 4,532 | 3,312 | 7,844 | ||||||||||||
International Opportunities Fund | — | — | 5,449 | 5,449 | ||||||||||||
International Value Fund | 241,545 | 63,767 | — | 305,312 | ||||||||||||
Intrepid International Fund | 250,971 | — | — | 250,971 | ||||||||||||
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NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
At October 31, 2016, the following Funds had post-enactment net capital loss carryforwards as follows (amounts in thousands):
| Capital Loss Carryforward Character | ||||||||
| Short-Term | Long-Term | |||||||
Emerging Economies Fund | $ | 146,542 | $ | 75,520 | ||||
Emerging Markets Equity Fund | 10,629 | 82,340 | ||||||
Emerging Markets Equity Income Fund | 183 | * | 318 | * | ||||
Global Research Enhanced Index Fund | 104,492 | 132,136 | ||||||
International Equity Fund | — | 33,563 | ||||||
International Equity Income Fund | 8,624 | 718 | ||||||
International Opportunities Fund | 82,645 | 21,877 | ||||||
International Research Enhanced Equity Fund | 2,467 | 686 | ||||||
International Unconstrained Equity Fund | 3,639 | 1,080 | ||||||
International Value Fund | 71,243 | — | ||||||
Intrepid International Fund | 46,299 | — | ||||||
| * | Amount includes capital loss carryforwards from business combinations, which are limited in future years under Internal Revenue Code Sections 381-384. |
During the year ended October 31, 2016, the following Fund utilized capital loss carryforwards as follows (amounts in thousands):
International Equity Fund | $ | 1,547 |
During the year ended October 31, 2016, the following Funds had expired capital loss carryforwards as follows (amounts in thousands):
International Value Fund | $ | 35,803 | ||
Intrepid International Fund | 281,157 |
6. Borrowings
The Funds rely upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. The Interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Funds because the Funds and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
The Trusts and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund’s borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until November 6, 2017.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility at October 31, 2016. Average borrowings from the Facility for the year ended October 31, 2016, were as follows (amounts in thousands):
| Average Borrowings | Average Interest Rate Paid | Number of Days Outstanding | Interest Paid | |||||||||||||
Emerging Economies Fund | $ | 26,124 | 0.36 | % | 5 | $ | 1 | |||||||||
Global Research Enhanced Index Fund | 10,348 | 0.49 | 6 | 1 | ||||||||||||
International Value Fund | 12,220 | 0.40 | 7 | 1 | ||||||||||||
Intrepid International Fund | 26,338 | 0.38 | 7 | 2 | ||||||||||||
In addition, effective August 16, 2016, the Trusts along with certain other trusts (“Borrowers”) entered into a joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a minimum of $25,000,000 in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which and any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the Fund must remediate within three business days with respect to the $25,000,000 minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
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Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% plus the greater of the federal funds effective rate or one month LIBOR. The annual commitment fee to maintain the Credit Facility is 0.15% and is incurred on the unused portion of the Credit Facility and is allocated to all participating funds pro rata based on their respective net assets. The initial term of the Credit Facility is 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended October 31, 2016.
7. Risks, Concentrations and Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund’s maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be made against each Fund that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic and market conditions and could result in losses that significantly exceed the Funds’ original investment. Many derivatives create leverage thereby causing the Funds to be more volatile than they would have been if they had not used derivatives. Derivatives also expose the Funds to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations), including credit risk of the derivative counterparty.
As of October 31, 2016, the J.P. Morgan Investor Funds and the JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of certain Funds as follows:
| J.P. Morgan Investor Funds | JPMorgan SmartRetirement Funds | |||||||
Emerging Economies Fund | n/a | 71.6 | % | |||||
Emerging Markets Equity Fund | n/a | 50.1 | ||||||
International Equity Fund | n/a | 71.2 | ||||||
International Opportunities Fund | n/a | 87.8 | ||||||
International Research Enhanced Equity Fund | 53.2 | % | n/a | |||||
International Unconstrained Equity Fund | 68.9 | n/a | ||||||
Intrepid International Fund | n/a | 89.3 | ||||||
As of October 31, 2016, the following Funds had individual shareholder accounts and/or omnibus accounts which collectively represented the following percentage of each Fund’s net assets:
| Number of Individual Affiliated Shareholder Accounts and/or Affiliated Omnibus Accounts | % of the Fund | Number of Individual Non-affiliated Shareholder Accounts and/or Non-affiliated Omnibus Accounts | % of the Fund | |||||||||||||
Emerging Markets Equity Income Fund | 4 | 24.6 | % | 1 | 58.9 | % | ||||||||||
Global Research Enhanced Index Fund | 1 | 87.3 | n/a | n/a | ||||||||||||
Global Unconstrained Equity Fund | 1 | 16.5 | 1 | 17.3 | ||||||||||||
International Equity Income Fund | n/a | n/a | 8 | 47.3 | ||||||||||||
International Research Enhanced Equity Fund | 3 | 18.3 | 1 | 17.3 | ||||||||||||
International Value Fund | n/a | n/a | 9 | 69.6 | ||||||||||||
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
The Funds may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of countries or regions, which may vary throughout the year depending on the Fund. Such concentrations may subject the Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
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NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2016 (continued)
As of October 31, 2016, the following Funds had non-U.S. country allocations representing greater than 10% of total investments as follows:
| Brazil | China | France | Germany | Hong Kong | India | Japan | ||||||||||||||||||||||
Emerging Economies Fund | — | % | 21.8 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||
Emerging Markets Equity Fund | 10.6 | 17.3 | — | — | — | 19.9 | — | |||||||||||||||||||||
Emerging Markets Equity Income Fund | — | — | — | — | 11.6 | — | — | |||||||||||||||||||||
International Equity Fund | — | — | 11.7 | — | — | — | 23.8 | |||||||||||||||||||||
International Opportunities Fund | — | — | 12.3 | — | — | — | 25.8 | |||||||||||||||||||||
International Research Enhanced Equity Fund | — | — | 10.5 | 10.1 | — | — | 23.1 | |||||||||||||||||||||
International Unconstrained Equity Fund | — | 10.0 | — | — | — | — | — | |||||||||||||||||||||
International Value Fund | — | — | 15.7 | — | — | — | 23.6 | |||||||||||||||||||||
Intrepid International Fund | — | — | 11.3 | — | — | — | 24.0 | |||||||||||||||||||||
| Netherlands | South Africa | South Korea | Switzerland | Taiwan | United Kingdom | |||||||||||||||||||
Emerging Economies Fund | — | % | — | % | 19.1 | % | — | % | 11.7 | % | — | % | ||||||||||||
Emerging Markets Equity Fund | — | 13.1 | — | — | — | — | ||||||||||||||||||
Emerging Markets Equity Income Fund | — | 14.3 | — | — | 22.7 | — | ||||||||||||||||||
International Equity Fund | — | — | — | 10.5 | — | 17.9 | ||||||||||||||||||
International Equity Income Fund | — | — | — | — | — | 25.4 | ||||||||||||||||||
International Opportunities Fund | — | — | — | — | — | 15.5 | ||||||||||||||||||
International Research Enhanced Equity Fund | — | — | — | — | — | 15.4 | ||||||||||||||||||
International Unconstrained Equity Fund | 10.5 | — | — | 12.0 | — | 17.8 | ||||||||||||||||||
International Value Fund | — | — | — | — | — | 13.2 | ||||||||||||||||||
Intrepid International Fund | — | — | — | — | — | 15.4 | ||||||||||||||||||
As of October 31, 2016, a significant portion of each Fund’s net assets consisted of securities that were denominated in foreign currencies. Changes in currency exchange rates will affect the value of, and investment income from, such securities.
8. Subsequent Event
The Institutional Class Shares of International Opportunities Fund and Intrepid International Fund liquidated on December 8, 2016.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of JPMorgan Trust I and JPMorgan Trust II and the Shareholders of JPMorgan Emerging Economies Fund, JPMorgan Emerging Markets Equity Fund, JPMorgan Emerging Markets Equity Income Fund, JPMorgan Global Research Enhanced Index Fund, JPMorgan Global Unconstrained Equity Fund, JPMorgan International Equity Fund, JPMorgan International Equity Income Fund, JPMorgan International Opportunities Fund, JPMorgan International Research Enhanced Equity Fund, JPMorgan International Unconstrained Equity Fund, JPMorgan International Value Fund and JPMorgan Intrepid International Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio 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 Emerging Economies Fund, JPMorgan Emerging Markets Equity Fund, JPMorgan Global Research Enhanced Index Fund, JPMorgan Global Unconstrained Equity Fund, JPMorgan International Equity Fund, JPMorgan International Equity Income Fund, JPMorgan International Opportunities Fund, JPMorgan International Unconstrained Equity Fund, JPMorgan International Value Fund and JPMorgan Intrepid International Fund (each a separate fund of JPMorgan Trust I), and JPMorgan International Research Enhanced Equity Fund (a separate fund of JPMorgan Trust II) as of October 31, 2016, 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 periods presented, and the financial position of JPMorgan Emerging Markets Equity Income Fund (a separate fund of JPMorgan Trust I) (hereafter collectively referred to as the “Funds”) as of October 31, 2016, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period December 12, 2014 (commencement of operations) through October 31, 2015, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter collectively 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 as of October 31, 2016 by correspondence with the transfer agent, custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
December 21, 2016
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(Unaudited)
The Funds’ Statement of Additional Information includes additional information about the Funds’ Trustees and is available, without charge, upon request by calling 1-800-480-4111 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth); Positions With the Funds (1) | Principal Occupations During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee (2) | Other Directorships Held Outside Fund Complex During Past 5 Years | |||
Independent Trustees | ||||||
| John F. Finn (1947); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1998. | Chairman (1985-present), President and Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 152 | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present); Director, Cardinal Health, Inc. (CAH) (1994-2014). | |||
| Dr. Matthew Goldstein (1941); Chairman since 2013; Trustee of Trusts since 2005; Trustee of heritage J.P. Morgan Funds since 2003. | Chancellor Emeritus, City University of New York (2015-present); Professor, City University of New York (2013-present); Chancellor, City University of New York (1999-2013); President, Adelphi University (New York) (1998-1999). | 152 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
| Robert J. Higgins (1945); Trustee of Trusts since 2005; Trustee of heritage J.P. Morgan Funds since 2002. | Retired; Director of Administration of the State of Rhode Island (2003-2004); President — Consumer Banking and Investment Services, Fleet Boston Financial (1971-2001). | 152 | None | |||
| Frankie D. Hughes (1952); Trustee of Trusts since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | 152 | Trustee, The Victory Portfolios (2000-2008) (Investment companies). | |||
| Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 152 | None | |||
| Mary E. Martinez (1960); Trustee of Trusts since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (Asset Management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | 152 | None | |||
| Marilyn McCoy* (1948); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1999. | Vice President of Administration and Planning, Northwestern University (1985-present). | 152 | None | |||
| Mitchell M. Merin (1953); Trustee of Trusts since 2013. | Retired; President and Chief Operating Officer, Morgan Stanley Investment Management, Member Morgan Stanley & Co. Management Committee (registered investment adviser) (1998-2005). | 152 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance); Trustee, Trinity College, Hartford, CT (2002-2010). | |||
| Dr. Robert A. Oden, Jr. (1946); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | 152 | Chairman, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American Schools of Oriental Research (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present). | |||
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Name (Year of Birth); Positions With the Funds (1) | Principal Occupations During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee (2) | Other Directorships Held Outside Fund Complex During Past 5 Years | |||
Independent Trustees (continued) | ||||||
| Marian U. Pardo** (1946); Trustee of Trusts since 2013. | Managing Director and Founder, Virtual Capital Management LLC (Investment Consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | 152 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
| Frederick W. Ruebeck (1939); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1994. | Consultant (2000-present); Adviser, JP Greene & Associates, LLC (broker-dealer) (2000-2009); Chief Investment Officer, Wabash College (2004-present); Director of Investments, Eli Lilly and Company (pharmaceuticals) (1988-1999). | 152 | None | |||
| James J. Schonbachler (1943); Trustee of Trusts since 2005; Trustee of heritage J.P. Morgan Funds since 2001. | Retired; Managing Director of Bankers Trust Company (financial services) (1968-1998). | 152 | None | |||
| (1) | The Trustees serve for an indefinite term, subject to the Trusts’ current retirement policy, which is age 78 for all Trustees. |
| (2) | A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes twelve registered investment companies (152 funds). |
| * | Two members of the Board of Trustees of Northwestern University are executive officers of registered investment advisers (not affiliated with JPMorgan) that are under common control with sub-advisers to certain J.P. Morgan Funds. |
| ** | In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
The contact address for each of the Trustees is 270 Park Avenue, New York, NY 10017.
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(Unaudited)
Name (Year of Birth), Positions Held with the Trusts (Since) | Principal Occupations During Past 5 Years | |
| Brian S. Shlissel (1964), President and Principal Executive Officer (2016) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) (2014 – present); Managing Director and Head of Mutual Fund Services, Allianz Global Investors; President and Chief Executive Officer, Allianz Global Investors Mutual Funds and PIMCO Closed-End Funds (1999-2014) | |
| Laura M. Del Prato (1964), Treasurer and Principal Financial Officer (2014)* | Managing Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since 2014; Partner, Cohen Fund Audit Services, Ltd. (2012-2013); Partner (2004-2012) and various other titles (1990-2004) at KPMG, LLP. | |
| Frank J. Nasta (1964), Secretary (2008) | Managing Director and Associate General Counsel, JPMorgan Chase since 2008. | |
| Stephen M. Ungerman (1953), Chief Compliance Officer (2005) | Managing Director, JPMorgan Chase & Co.; Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. | |
Elizabeth A. Davin (1964), Assistant Secretary (2005)* | Executive Director and Assistant General Counsel, JPMorgan Chase since February 2012; formerly Vice President and Assistant General Counsel, JPMorgan Chase from 2005 to February 2012; Senior Counsel, JPMorgan Chase (formerly Bank One Corporation) from 2004 to 2005. | |
| Jessica K. Ditullio (1962), Assistant Secretary (2005)* | Executive Director and Assistant General Counsel, JPMorgan Chase since February 2011; Ms. Ditullio has served as an attorney with various titles for JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
| John T. Fitzgerald (1975), Assistant Secretary (2008) | Executive Director and Assistant General Counsel, JPMorgan chase since February 2011; formerly, Vice President and Assistant General Counsel, JPMorgan Chase from 2005 to February 2011. | |
| Carmine Lekstutis (1980), Assistant Secretary (2011) | Executive Director and Assistant General Counsel, JPMorgan Chase since February 2015; formerly Vice President and Assistant General Counsel, JPMorgan Chase from 2011 to February 2015; Associate, Skadden, Arps, Slate, Meagher & Flom LLP (law firm) from 2006 to 2011. | |
| Gregory S. Samuels (1980), Assistant Secretary (2010) | Executive Director and Assistant General Counsel, JPMorgan Chase since 2014; formerly Vice President and Assistant General Counsel, JPMorgan Chase since 2010. | |
| Pamela L. Woodley (1971), Assistant Secretary (2012)** | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Michael M. D’Ambrosio (1969), Assistant Treasurer (2012) | Managing Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since May 2014; formerly Executive Director, JPMorgan Funds Management, Inc. from 2012 to May 2014; prior to joining JPMorgan Chase, Mr. D’Ambrosio was a Tax Director at PricewaterhouseCoopers LLP since 2006. | |
| Lauren A. Paino (1973), Assistant Treasurer (2014)** | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since August 2013; formerly Director, Credit Suisse Asset Management from 2000-2013. | |
| Joseph Parascondola (1963), Assistant Treasurer (2011)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since August 2006. | |
| Matthew J. Plastina (1970), Assistant Treasurer (2011)** | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from 2010 to January 2016. | |
Julie A. Roach (1971), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since August 2012; prior to joining JPMorgan Chase, Ms. Roach was a Senior Manager with Deloitte since 2001. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012; Assistant Treasurer, Wells Fargo Funds Management (2007-2009). | |
The contact address for each of the officers, unless otherwise noted, is 270 Park Avenue, New York, NY 10017.
| * | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| ** | The contact address for the officer is 4 New York Plaza, New York, NY 10004. |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these ongoing costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in each Class at the beginning of the reporting period, May 1, 2016, and continued to hold your shares at the end of the reporting period, October 31, 2016.
Actual Expenses
For each Class of each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
| Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
Emerging Economies Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 1,091.70 | $ | 7.15 | 1.36 | % | ||||||||
Hypothetical* | 1,000.00 | 1,018.30 | 6.90 | 1.36 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,088.70 | 9.82 | 1.87 | ||||||||||||
Hypothetical* | 1,000.00 | 1,015.74 | 9.48 | 1.87 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 1,092.80 | 5.05 | 0.96 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.31 | 4.88 | 0.96 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,094.00 | 4.53 | 0.86 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.81 | 4.37 | 0.86 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,092.60 | 5.89 | 1.12 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.51 | 5.69 | 1.12 | ||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,107.20 | 7.20 | 1.36 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.30 | 6.90 | 1.36 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,104.90 | 9.84 | 1.86 | ||||||||||||
Hypothetical* | 1,000.00 | 1,015.79 | 9.42 | 1.86 | ||||||||||||
Class R5 | ||||||||||||||||
Actual** | 1,000.00 | 1,004.00 | 1.23 | 0.90 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.61 | 4.57 | 0.90 | ||||||||||||
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
| Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
Emerging Markets Equity Fund (continued) | ||||||||||||||||
Class R6 | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 1,110.80 | $ | 4.56 | 0.86 | % | ||||||||
Hypothetical* | 1,000.00 | 1,020.81 | 4.37 | 0.86 | ||||||||||||
Institutional Class | ||||||||||||||||
Actual* | 1,000.00 | 1,110.10 | 5.09 | 0.96 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.31 | 4.88 | 0.96 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,109.30 | 5.89 | 1.11 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.56 | 5.63 | 1.11 | ||||||||||||
Emerging Markets Equity Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,080.70 | 8.05 | 1.54 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.39 | 7.81 | 1.54 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,077.50 | 10.65 | 2.04 | ||||||||||||
Hypothetical* | 1,000.00 | 1,014.88 | 10.33 | 2.04 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 1,082.80 | 5.71 | 1.09 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.66 | 5.53 | 1.09 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,083.80 | 5.45 | 1.04 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.91 | 5.28 | 1.04 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,081.70 | 6.75 | 1.29 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.65 | 6.55 | 1.29 | ||||||||||||
Global Research Enhanced Index Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,025.00 | 3.00 | 0.59 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.17 | 3.00 | 0.59 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,022.10 | 5.54 | 1.09 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.66 | 5.53 | 1.09 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,026.30 | 4.28 | 0.84 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.91 | 4.27 | 0.84 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,023.80 | 1.73 | 0.34 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.43 | 1.73 | 0.34 | ||||||||||||
Global Unconstrained Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,028.40 | 3.52 | 0.69 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.67 | 3.51 | 0.69 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,026.40 | 6.11 | 1.20 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.10 | 6.09 | 1.20 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,028.20 | 4.84 | 0.95 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.36 | 4.82 | 0.95 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 1,031.10 | 1.28 | 0.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.88 | 1.27 | 0.25 | ||||||||||||
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| Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
Global Unconstrained Equity Fund (continued) | ||||||||||||||||
Class R6 | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 1,031.20 | $ | 1.02 | 0.20 | % | ||||||||
Hypothetical* | 1,000.00 | 1,024.13 | 1.02 | 0.20 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,030.40 | 1.79 | 0.35 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.38 | 1.78 | 0.35 | ||||||||||||
International Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,034.20 | 6.70 | 1.31 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.55 | 6.65 | 1.31 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,031.80 | 9.24 | 1.81 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.04 | 9.17 | 1.81 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,032.50 | 7.97 | 1.56 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.29 | 7.91 | 1.56 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 1,036.90 | 4.40 | 0.86 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.81 | 4.37 | 0.86 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,036.40 | 4.15 | 0.81 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.06 | 4.12 | 0.81 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,035.80 | 5.42 | 1.06 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.81 | 5.38 | 1.06 | ||||||||||||
International Equity Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 987.50 | 6.19 | 1.24 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.90 | 6.29 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 985.70 | 8.68 | 1.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.39 | 8.82 | 1.74 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 986.60 | 7.44 | 1.49 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.65 | 7.56 | 1.49 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 989.80 | 3.95 | 0.79 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.17 | 4.01 | 0.79 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 990.00 | 3.70 | 0.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.42 | 3.76 | 0.74 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 989.30 | 4.45 | 0.89 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.66 | 4.52 | 0.89 | ||||||||||||
International Opportunities Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 990.60 | 6.40 | 1.28 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.70 | 6.50 | 1.28 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 988.10 | 9.55 | 1.91 | ||||||||||||
Hypothetical* | 1,000.00 | 1,015.53 | 9.68 | 1.91 | ||||||||||||
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
| Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
International Opportunities Fund (continued) | ||||||||||||||||
Class R6 | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 993.60 | $ | 3.56 | 0.71 | % | ||||||||
Hypothetical* | 1,000.00 | 1,021.57 | 3.61 | 0.71 | ||||||||||||
Institutional Class | ||||||||||||||||
Actual* | 1,000.00 | 992.90 | 4.16 | 0.83 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.96 | 4.22 | 0.83 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 992.20 | 5.26 | 1.05 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.86 | 5.33 | 1.05 | ||||||||||||
International Research Enhanced Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,006.50 | 2.98 | 0.59 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.17 | 3.00 | 0.59 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,004.00 | 5.49 | 1.09 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.66 | 5.53 | 1.09 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,005.30 | 4.23 | 0.84 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.91 | 4.27 | 0.84 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,008.40 | 1.72 | 0.34 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.43 | 1.73 | 0.34 | ||||||||||||
International Unconstrained Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,017.10 | 6.29 | 1.24 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.90 | 6.29 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,014.90 | 8.81 | 1.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.39 | 8.82 | 1.74 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,015.90 | 7.55 | 1.49 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.65 | 7.56 | 1.49 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 1,019.30 | 4.06 | 0.80 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.11 | 4.06 | 0.80 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,019.90 | 3.76 | 0.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.42 | 3.76 | 0.74 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,018.70 | 4.52 | 0.89 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.66 | 4.52 | 0.89 | ||||||||||||
International Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,006.60 | 6.81 | 1.35 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.35 | 6.85 | 1.35 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,004.20 | 9.32 | 1.85 | ||||||||||||
Hypothetical* | 1,000.00 | 1,015.84 | 9.37 | 1.85 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,005.80 | 7.97 | 1.58 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.19 | 8.01 | 1.58 | ||||||||||||
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| Beginning Account Value May 1, 2016 | Ending Account Value October 31, 2016 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
International Value Fund (continued) | ||||||||||||||||
Class R5 | ||||||||||||||||
Actual** | $ | 1,000.00 | $ | 996.80 | $ | 1.08 | 0.79 | % | ||||||||
Hypothetical* | 1,000.00 | 1,021.17 | 4.01 | 0.79 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,010.50 | 3.64 | 0.72 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.52 | 3.66 | 0.72 | ||||||||||||
Institutional Class | ||||||||||||||||
Actual* | 1,000.00 | 1,008.90 | 4.65 | 0.92 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.51 | 4.67 | 0.92 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,008.80 | 5.10 | 1.01 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.06 | 5.13 | 1.01 | ||||||||||||
Intrepid International Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 1,015.40 | 6.33 | 1.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.85 | 6.34 | 1.25 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 1,013.10 | 8.86 | 1.75 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.34 | 8.87 | 1.75 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 1,013.90 | 7.59 | 1.50 | ||||||||||||
Hypothetical* | �� | 1,000.00 | 1,017.60 | 7.61 | 1.50 | |||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 1,018.30 | 3.60 | 0.71 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.57 | 3.61 | 0.71 | ||||||||||||
Institutional Class | ||||||||||||||||
Actual* | 1,000.00 | 1,018.00 | 4.11 | 0.81 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.06 | 4.12 | 0.81 | ||||||||||||
Select Class | ||||||||||||||||
Actual* | 1,000.00 | 1,016.90 | 4.56 | 0.90 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.61 | 4.57 | 0.90 | ||||||||||||
| * | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| ** | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 52/366 (to reflect the actual period.) Commencement of operations was September 9, 2016. |
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BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited)
The Board of Trustees has established various standing committees composed of Trustees with diverse backgrounds, to which the Board of Trustees has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board of Trustees and its investment committees (money market and alternative products, equity, and fixed income) meet regularly throughout the year and consider factors that are relevant to their annual consideration of investment advisory agreements at each meeting. They also meet for the specific purpose of considering investment advisory agreement annual renewals. The Board of Trustees held meetings in person in June and August 2016, at which the Trustees considered the continuation of the investment advisory agreements for each of the Funds whose annual report is contained herein (each an “Advisory Agreement” and collectively, the “Advisory Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered the investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not “interested persons” (as defined in the 1940 Act) of any party to the Advisory Agreements or any of their affiliates, approved the continuation of each Advisory Agreement on August 17, 2016.
As part of their review of the Advisory Agreements, the Trustees considered and reviewed performance and other information about the Funds received from the Adviser. This information includes the Funds’ performance as compared to the performance of their peers and benchmarks and analyses by the Adviser of the Funds’ performance. In addition, the Trustees have engaged an independent management consulting firm (“independent consultant”) to report on the performance of certain J.P. Morgan Funds at each of the Trustees’ regular meetings. The Adviser also periodically provides comparative information regarding the Funds’ expense ratios and those of their peer groups. In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance and expense analyses compiled by Broadridge, using data from Lipper Inc., independent providers of investment company data (together, “Broadridge/Lipper”). The Trustees’ independent consultant also provided additional analyses of the performance of Funds with greater than two years of performance history in connection with the Trustees’ review of the Advisory Agreements. Before voting on the proposed Advisory Agreements, the Trustees reviewed the proposed Advisory Agreements with representatives of the Adviser, counsel to the Trusts and independent legal counsel and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the proposed Advisory Agreements. The Trustees
also discussed the proposed Advisory Agreements in executive sessions with independent legal counsel at which no representatives of the Adviser were present. Set forth below is a summary of the material factors evaluated by the Trustees in determining whether to approve each Advisory Agreement.
The Trustees considered information provided with respect to the Funds over the course of the year. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions. The Trustees determined that the compensation to be received by the Adviser from each Fund under the applicable Advisory Agreement was fair and reasonable and that the continuance of each Advisory Agreement was in the best interests of each Fund and its shareholders.
The factors summarized below were considered and discussed by the Trustees in reaching their conclusions:
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of the services provided to each Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of, and the amount of attention given to each Fund by, investment personnel of the Adviser. In addition, the Trustees reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund and the infrastructure supporting the team. The Trustees also considered information provided by the Adviser and JPMorgan Distribution Services, Inc. (“JPMDS”) about the structure and distribution strategy of each Fund. The Trustees reviewed information relating to the Adviser’s risk governance model and reports showing the Adviser’s compliance structure and ongoing compliance processes. The Trustees also considered the quality of the administrative services provided by J.P. Morgan Investment Management Inc. in its role as administrator (“JPMIM”).
The Trustees also considered their knowledge of the nature and quality of the services provided by the Adviser and its affiliates to the Funds gained from their experience as Trustees of the J.P. Morgan Funds. In addition, they considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the Adviser’s integrity and the Adviser’s responsiveness to questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes
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designed to improve investment results and the services provided to each Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the investment advisory services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates in providing services to each of the Funds. The Trustees reviewed and discussed this data. The Trustees recognized that this data is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, the Trustees concluded that the profitability to the Adviser under each of the Advisory Agreements was not unreasonable in light of the services and benefits provided to each Fund.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fallout” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser.
The Trustees also considered that JPMDS, an affiliate of the Adviser, and JPMIM earn fees from the Funds for providing shareholder and administrative services, respectively. These fees were shown separately in the profitability analysis presented to the Trustees. The Trustees also considered the payments of Rule 12b-1 fees to JPMDS, which also acts as the Funds’ distributor and that these fees are in turn generally paid to financial intermediaries that sell the Funds, including financial intermediaries that are affiliates of the Adviser. The Trustees also considered the fees paid to JPMorgan Chase Bank, N.A. (“JPMCB”) for custody and fund accounting, and other related services.
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from economies of scale. The Trustees considered that there may not be a direct relationship between economies of scale realized by the Funds and those realized by the Adviser as assets increase. The Trustees noted that the proposed investment advisory fee schedule for each Fund does not contain breakpoints, but that the fees remain competitive with peer funds. The Trustees also considered that the Adviser has implemented fee waivers and expense limitations (“Fee Caps”) which allow each Fund’s shareholders to share potential economies of scale from a Fund’s inception. The Trustees also considered that the Adviser has shared economies of scale by adding or enhancing services to the Funds over time, noting the Adviser’s substantial investments in its business in support of the Funds, including investments in trading systems and technology (including cybersecurity improvements), retention of key talent, additions to analyst and portfolio management teams, and regulatory support enhancements. The Trustees also considered whether it would be appropriate to add advisory fee breakpoints and the Trustees concluded that the current fee structure was reasonable in light of the Fee Caps that the Adviser has in place that serve to limit the overall net expense ratios of each Fund at competitive levels. The Trustees concluded that the Funds’ shareholders received the benefits of potential economies of scale through the Fee Caps and the Adviser’s reinvestment in its operations to serve the Funds and their shareholders.
Independent Written Evaluation of the Funds’ Senior Officer/ Chief Compliance Officer
The Trustees noted that, upon their direction, the Senior Officer for the International Equity Fund and International Research Enhanced Equity Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees. The Trustees considered the Senior Officer’s report in determining whether to continue the Advisory Agreements.
The Trustees noted that, upon their direction, the Chief Compliance Officer for the Emerging Economies Fund, Emerging Markets Equity Fund, Emerging Markets Equity Income Fund, Global Research Enhanced Index Fund, Global Unconstrained Equity Fund, International Equity Income Fund, International Opportunities Fund, International Unconstrained Equity Fund, International Value Fund and Intrepid International Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees. The Trustees considered the written evaluation in determining whether to continue the Advisory Agreements.
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BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited) (continued)
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of investment advisory services and fee rates offered to other clients of the Adviser, including institutional separate accounts and/or funds sub-advised by the Adviser, and for investment management styles substantially similar to that of each Fund. The Trustees considered the complexity of investment management for registered mutual funds relative to the Adviser’s other clients and noted differences in the regulatory, legal and other risks and responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered mutual fund involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the mutual fund, pays the sub-advisory fee and that many responsibilities related to the advisory function are retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees received and considered absolute and/or relative performance for the Funds which had at least one full year of performance at the time of review in a report prepared by Broadridge/Lipper. The Trustees considered the total return performance information, which included the ranking of the Funds which had at least one full year of performance at the time of review within a performance universe made up of funds with the same Broadridge/Lipper investment classification and objective (the “Universe”), as well as a sub-set of funds within the Universe (the “Peer Group”), by total return for applicable one-, three-, and five-year periods. The Trustees reviewed a description of Broadridge/Lipper’s methodology for selecting mutual funds in each Fund’s Peer Group and Universe. The Broadridge/Lipper materials provided to the Trustees highlighted information with respect to certain representative classes to assist the Trustees in their review. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark and considered the performance information provided for the Funds at regular Board meetings by the Adviser and the Trustees’ independent consultant and also considered the special analysis prepared by the Trustees’ independent consultant. The Broadridge/Lipper performance data noted by the Trustees as part of their review and the determinations made by the Trustees with respect to each Fund’s performance for certain representative classes are summarized below:
The Trustees noted that the Emerging Economies Fund’s performance for Class A shares was in the fourth, fourth and fifth quintiles based upon the Peer Group, and in the third, fourth and fourth quintiles based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2015,
respectively. The Trustees noted that the performance for the Select Class shares was in the fourth, fifth, and fourth quintiles, based upon the Peer Group, and in the third, fourth, and fourth quintiles, based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the Emerging Markets Equity Fund’s performance for Class A shares was in the fourth quintile based upon the Peer Group, and in the fourth, fourth and third quintiles, based upon the Universe, for the one-, three- and five-year periods ended December 31, 2015, respectively. The Trustees noted that performance for Select Class shares was in the fourth, fifth, and second quintiles based upon the Peer Group, and in the fourth, fourth, and third quintiles based upon the Universe, for r the one-, three- and five-year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the Emerging Markets Equity Income Fund’s performance for both Class A and Select Class shares was in the fifth quintile based upon both the Peer Group and Universe, for the one-year period ended December 31, 2015. The Trustees discussed the performance and investment strategy of the Fund with the Adviser. Based upon this discussion and various other factors, the Trustees concluded that the performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the Global Research Enhanced Index Fund’s performance for the Select Class shares was in the second quintile for the one-year period ended December 31, 2015. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analyses and evaluation prepared by the independent consultant. Based upon these discussions and
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various other factors, the Trustees concluded that the performance was reasonable.
The Trustees noted that the Global Unconstrained Equity Fund’s performance for both Class A and Select Class shares was in the first and second quintiles based upon both the Peer Group and Universe, for the one- and three-year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analyses and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was reasonable.
The Trustees noted that the International Equity Fund’s performance for Class A shares was in the third, fifth and fourth quintiles based upon the Peer group, and in the third, fifth and third quintiles, based upon the Universe, for the one-, three- and five-year periods ended December 31, 2015, respectively. The Trustees noted that the performance for the Select Class shares was in the third, fifth and third quintiles, based upon the Universe, for the one-, three- and five-year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the International Equity Income Fund’s performance for Class A shares was in the first quintile based upon the Peer Group, for the one- and three- year periods ended December 31, 2015, and in the first quintile, based upon the Universe, for the one- year period ended December 31, 2015. The Trustees noted that performance for the Select Class shares was in the first quintile based upon the Universe, for the one- and three- year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, including changes to the Fund’s name and investment strategy effective January 30, 2015, the Trustees concluded that the Fund’s performance was reasonable.
The Trustees noted that the International Opportunities Fund’s performance for Class A shares was in the first, first and second quintiles based upon the Peer Group, and in the first, second and second quintiles, based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2015. The Trustees noted that the performance for Select Class shares was in the first, second and second quintiles, based upon the
Universe, for the one- three- and five- year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable.
The Trustees noted that the International Research Enhanced Equity Fund’s performance for Class A shares was in the second, third and fourth quintiles, based upon the Peer Group, and in the second, third and third, based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2015, respectively. The Trustees noted that the performance for Select Class shares was in fourth quintile, based upon the Peer Group, and in the second, second and third quintiles, based upon the Universe, for the one- three- and five- year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the International Unconstrained Equity Fund’s performance for Class A shares was in the second and fourth quintiles based upon the Universe and for Select Class shares, was in the second and third quintiles based upon the Universe for the one- and three-year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the International Value Fund’s performance for both Class A and Select Class shares was in the fourth, fifth and fourth quintiles, based upon the Universe, for the one-, three- and five- year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was reasonable. They requested, however, that the Fund’s Adviser provide additional Fund performance
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BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited) (continued)
information to be reviewed with members of the Equity Committee at each of their regular meetings over the course of the next year.
The Trustees noted that the Intrepid International Fund’s performance for Class A shares was in the first, third and fourth quintiles based upon the Peer Group and in the first, second and third quintiles, based upon the Universe, for the one-, three- and five- year periods ended December 31, 2015, respectively. The Trustees noted that the performance for the Select Class shares was in the second, first and first quintiles, based upon the Peer Group, and in the first, second and second quintiles, based upon the Universe for the one-, three,- and five- year periods ended December 31, 2015, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the performance was reasonable.
Advisory Fees and Expense Ratios
The Trustees considered the contractual advisory fee rate paid by each Fund to the Adviser and compared that rate to the information prepared by Broadridge/Lipper concerning management fee rates paid by other funds in the same Broadridge/Lipper category as each Fund. The Trustees recognized that Broadridge/Lipper reported each Fund’s management fee rate as the combined contractual advisory fee and administration fee rates. The Trustees also reviewed information about other expenses and the expense ratios for each Fund. The Trustees considered the fee waiver and/or expense reimbursement arrangements currently in place for each Fund and considered the net advisory fee rate after taking into account any waivers and/or reimbursements. The Trustees recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The Trustees’ determination as a result of the review of each Fund’s advisory fees and expense ratios for certain representative classes are summarized below:
The Trustees noted that the Emerging Economies Fund’s net advisory fee and actual total expenses for both Class A and Select Class shares were in the first quintile, based upon the Peer Group, and that the actual total expenses for Class A and Select Class shares were in the first and second quintiles, respectively, based upon the Universe. The Trustees also noted that Fund’s expense caps were reduced effective July 1, 2015 and the advisory fees were reduced effective May 20, 2016. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the Emerging Markets Equity Fund’s net advisory fee for Class A shares was in the first and second
quintile, based upon the Peer Group and Universe, respectively, and that the actual total expenses were in first quintiles for both the Peer Group and the Universe. The Trustees noted that the net advisory fee and total actual expenses for the Select Class shares were in the second quintile based upon both the Peer Group and the Universe. The Trustees also noted that Fund’s expense caps were reduced effective March 1, 2015 and the advisory fees were reduced effective May 20, 2016. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the Emerging Markets Equity Income Fund’s net advisory fee for Class A shares was in the first quintile, and that the actual total expenses were in the second and third quintiles, respectively. The Trustees also noted that Fund’s expense caps were reduced effective July 1, 2015. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the Global Research Enhanced Index Fund’s net advisory fee and actual total expenses for Select Class shares were in the first quintile. After considering the factors identified above, in light of the information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the Global Unconstrained Equity Fund’s net advisory fee for both Class A and Select Class shares was in the first quintile, and that the actual total expenses for both Class A and Select Class shares were in the first quintiles, based upon the Peer Group and Universe, respectively. After considering the factors identified above, in light of the information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Equity Fund’s net advisory fee for Class A shares was in the second quintile, and that actual total expenses for Class A shares was in the second quintile. The Trustees also noted that the Fund’s contractual advisory fee and expense caps were reduced effective November 1, 2016. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Equity Income Fund’s net advisory fee for Class A shares was in the first quintile, and that the actual total expenses for Class A shares were in the second quintile, based upon the Peer Group. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Research Enhanced Equity Fund’s net advisory fee for both Class A and Select Class shares was in the first quintile, and actual total expenses for both Class A and Select Class shares were in the first quintile, based upon both the Peer Group and Universe. After consider-
| 174 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2016 | ||||
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ing the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Opportunities Fund’s net advisory fee for Class A shares was in the first quintile based upon both the Peer Group and Universe, and that the actual total expenses shares were in the second quintile, based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee for the Select Class shares was in the first quintile, and actual total expenses were in the third quintile, based upon the Universe. The Trustees also noted that the Fund’s expense caps were reduced effective November 1, 2016. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Unconstrained Equity Fund’s net advisory fee and total actual expenses for Class A shares was in the first quintile, based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee for the Select Class shares was in the first quintile and actual total expenses were in the second quintile, based upon the Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the International Value Fund’s net advisory fee for Class A shares was in the first quintile, based
upon the Peer Group and in the second quintile based upon the Universe, and that the actual total expenses were in the fourth and second quintiles, based upon the Peer Group and Universe, respectively. The Trustees noted that the net advisory fee for the Select Class shares was in the first quintile based upon the Peer Group, and in the second quintile, based upon the Universe, and that the actual total expenses were in the first quintile, based upon the Peer Group, and in the third quintile, based upon the Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
The Trustees noted that the Intrepid International Fund’s net advisory fee for Class A shares was in the second quintile, based upon both the Peer Group and Universe, and that the actual total expenses for Class A shares were in the third and second quintiles, based on the Peer Group and Universe, respectively. The Trustees noted that the net advisory fee for the Select Class shares was in second and third quintiles, based upon the Peer Group and Universe, respectively, and that actual total expenses were in the second quintile based upon both the Peer Group and Universe. The Trustees also noted that the Fund’s contractual advisory fee and expense caps were reduced effective March 1, 2015. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were reasonable.
| OCTOBER 31, 2016 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 175 | ||||||
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(Unaudited)
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2016. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2016. The information necessary to complete your income tax returns for the calendar year ending December 31, 2016 will be provided under separate cover.
Dividends Received Deductions (DRD)
Each fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the 70% dividends received deductions for corporate shareholders for the fiscal year ended October 31, 2016:
Dividends Received Deduction | ||||
Global Research Enhanced Index Fund | 51.11 | % | ||
Global Unconstrained Equity Fund | 4.04 | |||
Long Term Capital Gain
Each fund listed below distributed the following amount, or maximum allowable amount, of long-term capital gain dividends for the fiscal year ended October 31, 2016 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
Global Unconstrained Equity Fund | $ | 524 | ||
International Equity Income Fund | 1,746 | |||
International Research Enhanced Equity Fund | 7,959 | |||
Qualified Dividend Income (QDI)
Each fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions treated as
qualified dividends for the fiscal year ended October 31, 2016 (amounts in thousands):
Qualified Dividend Income | ||||
Emerging Economies Fund | $ | 17,609 | ||
Emerging Markets Equity Fund | 24,541 | |||
Emerging Markets Equity Income Fund | 170 | |||
Global Research Enhanced Index Fund | 138,054 | |||
Global Unconstrained Equity Fund | 467 | |||
International Equity Fund | 71,676 | |||
International Equity Income Fund | 4,145 | |||
International Opportunities Fund | 20,270 | |||
International Research Enhanced Equity Fund | 24,302 | |||
International Unconstrained Equity Fund | 495 | |||
International Value Fund | 35,104 | |||
Intrepid International Fund | 50,069 | |||
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2016, the following Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses are as follows or amounts as finally determined (amounts in thousands):
| Gross Income | Foreign Tax Pass Through | |||||||
Emerging Economies Fund | $ | 36,358 | $ | 4,326 | ||||
Emerging Markets Equity Fund | 49,058 | 4,279 | ||||||
Emerging Markets Equity Income Fund | 209 | 29 | ||||||
International Equity Fund | 99,197 | 7,316 | ||||||
International Equity Income Fund | 5,272 | 475 | ||||||
International Opportunities Fund | 83,837 | 5,783 | ||||||
International Research Enhanced Equity Fund | 32,852 | 2,897 | ||||||
International Unconstrained Equity Fund | 1,653 | 222 | ||||||
International Value Fund | 69,211 | 5,447 | ||||||
Intrepid International Fund | 88,805 | 7,187 | ||||||
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Rev. January 2011
| FACTS | WHAT DOES J.P. MORGAN FUNDS DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
◾ Social Security number and account balances
◾ transaction history and account transactions
◾ checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons J.P. Morgan Funds chooses to share; and whether you can limit this sharing. |
| Reasons we can share your personal information | Does J.P. Morgan Funds share? | Can you limit this sharing? | ||
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||
For marketing purposes — to offer our products and services to you | Yes | No | ||
| For joint marketing with other financial companies | No | We don’t share | ||
For our affiliates’ everyday business purposes — information about your transactions and experiences | No | We don’t share | ||
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share | ||
| For nonaffiliates to market to you | No | We don’t share |
| Questions? | Call 1-800-480-4111 or go to www.jpmorganfunds.com | |
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Page 2 |
| Who we are | ||
| Who is providing this notice? | J.P. Morgan Funds | |
| What we do | ||
| How does J.P. Morgan Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We authorize our employees to access your information only when they need it to do their work and we require companies that work for us to protect your information. | |
How does J.P. Morgan Funds collect my personal information? | We collect your personal information, for example, when you:
◾ open an account or provide contact information
◾ give us your account information or pay us by check
◾ make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates and other companies. | |
| Why can’t I limit all sharing? | Federal law gives you the right to limit only
◾ sharing for affiliates’ everyday business purposes – information about your creditworthiness
◾ affiliates from using your information to market to you
◾ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
| Definitions | ||
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
◾ J.P. Morgan Funds does not share with our affiliates. | |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
◾ J.P. Morgan Funds does not share with nonaffiliates so they can market to you. | |
| Joint Marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
◾ J.P. Morgan Funds doesn’t jointly market. | |
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J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds.
Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risk as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure by visiting www.sipc.org or by calling SIPC at 202-371-8300.
Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. Shareholders may request the Form N-Q without charge by calling 1-800-480-4111 or by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
A description of each Fund’s policies and procedures with respect to the disclosure of each Fund’s holdings is available in the prospectus and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-800-480-4111 and on the Funds’ website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Adviser. A copy of the Funds’ voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds’ website at www.jpmorganfunds.com no later than August 31 of each year. The Funds’ proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
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J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.
| © JPMorgan Chase & Co., 2016. All rights reserved. October 2016. | AN-INTEQ-1016 |
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| ITEM 2. | CODE OF ETHICS. |
Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.
The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 12(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by positing its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer and principal financial
officer. There were no amendments to the code of ethics or waivers granted with respect to the code of ethics in the period covered by the report.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
| (a) | (1) Disclose that the registrant’s board of directors has determined that the registrant either: |
| (i) | Has at least one audit committee financial expert serving on its audit committee; or |
| (ii) | Does not have an audit committee financial expert serving on its audit committee. |
The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. The Securities and Exchange Commission has stated that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liabilities that are greater than the duties, obligations and liabilities imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee:
| (i) | Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or |
| (ii) | Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)). |
Effective January 1, 2016, James Schonbachler replaced Mitchell Merin as the audit committee financial expert. He is not an “interested person” of the Registrant and is also “independent” as defined by the U.S. Securities and Exchange Commission for purposes of audit committee financial expert determinations.
(3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert.
Not applicable.
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| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional
services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
| AUDIT FEES | ||
| 2016 – $46,470 | ||
| 2015 – $45,600 |
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
| AUDIT-RELATED FEES | ||
| 2016 – $12,610 | ||
| 2015 – $12,300 |
Audit-related fees consists of semi-annual financial statement reviews and security count procedures performed as required under Rule 17f-2 of the Investment Company Act of 1940 during the Registrant’s fiscal year.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
TAX FEES |
| 2016 – $11,745 |
| 2015 – $11,380 |
The tax fees consist of fees billed in connection with preparing the federal regulated investment company income tax returns for the Registrant for the tax years ended October 31, 2016 and 2015, respectively.
For the last fiscal year, no tax fees were required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
| ALL OTHER FEES |
| 2016 – Not applicable |
| 2015 – Not applicable |
(e) (1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Pursuant to the Registrant’s Audit Committee Charter and written policies and procedures for the pre-approval of audit and non-audit services (the “Pre-approval Policy”), the Audit Committee pre-approves all audit and non-audit services performed by the Registrant’s independent public registered accounting firm for the Registrant. In addition, the Audit Committee pre-approves the auditor’s engagement for non-audit services with the Registrant’s investment adviser (not including a sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser) and any Service Affiliate in accordance with paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if the engagement relates directly to the operations and financial reporting of the Registrant. Proposed services may be pre-approved either 1) without consideration of specific case-by-case services or 2) require the specific pre-approval of the Audit Committee. Therefore, initially the Pre-approval Policy listed a number of audit and non-audit services that have been approved by the Audit Committee, or which were not subject to pre-approval under the transition provisions of Sarbanes-Oxley Act of 2002 (the “Pre-approval List”). The Audit Committee annually reviews and pre-approves the
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services included on the Pre-approval List that may be provided by the independent public registered accounting firm without obtaining additional specific pre-approval of individual services from the Audit Committee. The Audit Committee adds to, or subtracts from, the list of general pre-approved services from time to time, based on subsequent determinations. All other audit and non-audit services not on the Pre-approval List must be specifically pre-approved by the Audit Committee.
One or more members of the Audit Committee may be appointed as the Committee’s delegate for the purposes of considering whether to approve such services. Any pre-approvals granted by the delegate will be reported, for informational purposes only, to the Audit Committee at its next scheduled meeting. The Audit Committee’s responsibilities to pre-approve services performed by the independent public registered accounting firm are not delegated to management.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
| 2016 – 0.0% |
| 2015 – 0.0% |
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
Not applicable—Less than 50%.
(g) Disclose the aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
The aggregate non-audit fees billed by the independent registered public accounting firm for services rendered to the Registrant, and rendered to Service Affiliates, for the last two calendar year ends were:
| 2015 - $29.2 million |
| 2014 - $30.6 million |
(h) Disclose whether the registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee has considered whether the provision of the non-audit services that were rendered to Service Affiliates that were not pre-approved (not requiring pre-approval) is compatible with maintaining the independent public registered accounting firm’s independence. All services provided by the independent public registered accounting firm to the Registrant or to Service Affiliates that were required to be pre-approved were pre-approved as required.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees.
Not applicable.
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| ITEM 6. | SCHEDULE OF INVESTMENTS. |
File Schedule I – Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in Section 210.12-12 of Regulation S-X, unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Included in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
Not applicable.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).
Not applicable.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.
No material changes to report.
| ITEM 11. | CONTROLS AND PROCEDURES. |
(a) Disclose the conclusions of the registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time
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periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
There were no changes in the Registrant’s internal control over financial reporting that occurred during the last fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
| ITEM 12. | EXHIBITS. |
| (a) | File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. |
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
Code of Ethics applicable to its Principal Executive and Principal Financial Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2).
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.
Not applicable.
(b) A separate or combined certification for each principal executive officer and principal officer of the registrant as required by Rule 30a-2(b) under the Act of 1940.
Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 are attached hereto.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
JPMorgan Trust II
| By: | /s/ Brian S. Shlissel | |
Brian S. Shlissel President and Principal Executive Officer December 30, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Brian S. Shlissel | |
Brian S. Shlissel President and Principal Executive Officer December 30, 2016 | ||
| By: | /s/ Laura M. Del Prato | |
Laura M. Del Prato Treasurer and Principal Financial Officer December 30, 2016 | ||