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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)
Noah D. Greenhill
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: June 30
Date of reporting period: July 1, 2017 through June 30, 2018
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 Small Cap Funds
June 30, 2018
JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)
JPMorgan Small Cap Core Fund
JPMorgan Small Cap Equity Fund
JPMorgan Small Cap Growth Fund
JPMorgan Small Cap Value Fund
JPMorgan U.S. Small Company Fund
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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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
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“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 1 |
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J.P. Morgan Small Cap Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities. Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from July 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, growth stocks generally outperformed value stocks and small cap stocks outperformed large cap and mid cap stocks. For the twelve months ended June 30, 2018, the S&P 500 returned 14.37% and the Russell 2000 returned 17.57%.
2 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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(formerly known as JPMorgan Dynamic Small Cap Growth Fund)1
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class A Shares, without a sales charge)* | 35.50% | |||
Russell 2000 Index2 | 17.57% | |||
Russell 2000 Growth Index | 21.86% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 218,757 |
INVESTMENT OBJECTIVE**
The JPMorgan Small Cap Blend Fund (the “Fund”) seeks capital growth over the long term.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, outperformed both the Russell 2000 Index (the “New Benchmark”) and the Russell 2000 Growth Index (the “Old Benchmark”) for the twelve months ended June 30, 2018.
Relative to the New Benchmark, the Fund’s security selection and overweight positions in the information technology and health care sectors were leading contributors to performance, while the Fund’s security selection in the energy and materials sectors was a leading detractor from relative performance.
Relative to the Old Benchmark, the Fund’s security selection in the health care and information technology sectors was a leading contributor to performance, while the Fund’s security selection in the energy and consumer staples sectors made the smallest contribution to relative performance.
Leading individual contributors to performance relative to both the New Benchmark and the Old Benchmark included the Fund’s overweight positions in Nektar Therapeutics, GrubHub Inc. and Nutanix Inc. Shares of Nektar Therapeutics, a developer of biopharmaceutical drugs, rose after the company reported positive data from a clinical trial of its melanoma treatment and announced a partnership with Bristol-Myers Squibb Co. Shares of GrubHub, an online food delivery and
take-out service, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018 and announced a partnership with Yum Brands Inc. Shares of Nutanix, a provider of cloud computing storage, rose on accelerated revenue growth.
Leading individual detractors from performance relative to both the New Benchmark and the Old Benchmark included the Fund’s overweight positions in Macom Technology Solutions Holdings Inc., GenMark Diagnostics Inc. and E.L.F. Beauty Inc. Shares of Macom Technology Solutions Holdings, a semiconductor manufacturer, fell after the company reported lower-than-expected earnings and revenue for its fiscal quarter ended December 31, 2017. Shares of GenMark Diagnostics, a medical testing provider, fell after the company reported a loss for the first quarter of 2018. Shares of E.L.F. Beauty, a cosmetics and skin care company, fell amid a slowdown in revenue growth.
HOW WAS THE FUND POSITIONED?
Prior to June 1, 2018, the Fund’s portfolio managers utilized a bottom-up approach to stock selection, researching individual companies in an effort to construct portfolios of stocks that have strong fundamentals. The Fund’s portfolio managers preferred to invest in high quality companies with durable franchises that, in their view, possessed the ability to generate strong future earnings growth. With the effectiveness of the investment strategy change, the portfolio managers positioned the Fund to invest in small cap companies across both growth and value styles.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 3 |
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JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)1
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Performance Food Group Co. | 1.1 | % | |||||
2. | Teladoc, Inc. | 1.1 | ||||||
3. | Ollie’s Bargain Outlet Holdings, Inc. | 1.0 | ||||||
4. | Boyd Gaming Corp. | 1.0 | ||||||
5. | Envestnet, Inc. | 1.0 | ||||||
6. | Entegris, Inc. | 1.0 | ||||||
7. | Saia, Inc. | 1.0 | ||||||
8. | Advanced Disposal Services, Inc. | 1.0 | ||||||
9. | Evercore, Inc., Class A | 1.0 | ||||||
10. | HubSpot, Inc. | 0.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 19.2 | % | ||
Industrials | 17.1 | |||
Health Care | 16.4 | |||
Consumer Discretionary | 16.1 | |||
Financials | 12.6 | |||
Real Estate | 4.5 | |||
Materials | 3.5 | |||
Energy | 3.2 | |||
Utilities | 2.4 | |||
Consumer Staples | 2.3 | |||
Telecommunication Services | 0.3 | |||
Short-Term Investments | 2.4 |
1 | On June 1, 2018, the Fund changed its name and revised its investment strategy to invest in a portfolio of small cap companies across both growth and value styles. Previously, the Fund’s strategy was to invest in a portfolio of small cap growth companies. |
2 | On June 1, 2018, the Fund adopted the Russell 2000 Index as its primary benchmark to better reflect the Fund’s new strategy. |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
4 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | May 19, 1997 | |||||||||||||
With Sales Charge* | 28.39 | % | 14.72 | % | 11.11 | % | ||||||||
Without Sales Charge | 35.50 | 15.97 | 11.71 | |||||||||||
CLASS C SHARES | January 7, 1998 | |||||||||||||
With CDSC** | 33.82 | 15.38 | 11.12 | |||||||||||
Without CDSC | 34.82 | 15.38 | 11.12 | |||||||||||
CLASS I SHARES | April 5, 1999 | 35.82 | 16.26 | 12.06 |
* | 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 (6/30/08 TO 6/30/18)
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.
Effective June 1, 2018 (“the Effective Date”), the Fund’s investment strategies changed. Although past performance is not necessarily an indication of how the Fund will perform in the future, in view of these changes, the Fund’s performance record prior to this date might be less relevant for investors considering whether to purchase shares of the Fund. On the Effective Date, the Fund’s benchmark changed from the Russell 2000 Growth Index to the Russell 2000 Index because the adviser believes that the Russell 2000 Index is a more appropriate comparison in light of the Fund’s new name and investment strategies.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Small Cap Blend Fund, the Russell 2000 Index, the Russell 2000 Growth Index and the Lipper Small-Cap Core Funds Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the Russell 2000 and Russell 2000 Growth Indexes do 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 Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Growth Index is an unmanaged index which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 5 |
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FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class R5 Shares)* | 18.85% | |||
Russell 2000 Index | 17.57% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 313,820 |
INVESTMENT OBJECTIVE**
The JPMorgan Small Cap Core Fund (the “Fund”) seeks capital growth over the long term.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class R5 Shares outperformed the Russell 2000 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the industrial cyclical and pharmaceutical sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the retail and utilities sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Insperity Inc., ArcBest Corp. and General Cable Co. Shares of Insperity, a provider of employee administrative services, rose after the company reported better-than-expected revenue for the fourth quarter of 2017. Shares of ArcBest, a freight transportation provider, rose on continued earnings growth. Shares of General Cable, a maker of electrical and fiber-optic cable, rose after the company agreed to a $3 billion takeover offer from Prysmian SpA.
Leading individual detractors from relative performance included the Fund’s overweight positions in Office Depot Inc., Spark Energy Inc. and TiVo Corp. Shares of Office Depot, an office products retail chain, fell in the first half of the reporting period after the company forecast a drop in 2017 sales due to store closures and the impact of hurricanes. Shares of Spark Energy, an electricity and natural gas utility, fell due to the impact of bad weather, including Hurricane Harvey, which hurt the company’s financial results. Shares of TiVo, a provider of entertainment technology and software, fell amid investor concerns about the company’s patent infringement litigation against Comcast Corp.
HOW WAS THE FUND POSITIONED?
In accordance with its investment process, the Fund’s portfolio managers take limited sector bets and construct the Fund so that stock selection is typically the primary driver of its relative performance versus the Benchmark. The Fund’s portfolio managers employ a bottom-up approach to stock selection,
using quantitative screening and proprietary analysis to construct a portfolio of companies that they believe are attractively valued and possess strong momentum. During the reporting period, the Fund was managed and positioned in accordance with this investment process.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Haemonetics Corp. | 1.2 | % | |||||
2. | Insperity, Inc. | 1.2 | ||||||
3. | Delek US Holdings, Inc. | 1.1 | ||||||
4. | Trinseo SA | 1.1 | ||||||
5. | Molina Healthcare, Inc. | 1.0 | ||||||
6. | Tech Data Corp. | 1.0 | ||||||
7. | Integer Holdings Corp. | 1.0 | ||||||
8. | Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | 0.9 | ||||||
9. | Travelport Worldwide Ltd. | 0.9 | ||||||
10. | FirstCash, Inc. | 0.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Industrials | 17.2 | % | ||
Financials | 16.5 | |||
Health Care | 15.9 | |||
Information Technology | 14.9 | |||
Consumer Discretionary | 11.6 | |||
Real Estate | 6.2 | |||
Energy | 5.2 | |||
Materials | 4.1 | |||
Utilities | 2.7 | |||
Consumer Staples | 1.9 | |||
Telecommunication Services | 0.2 | |||
Short-Term Investments | 3.6 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
6 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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JPMorgan Small Cap Core Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | May 31, 2016 | |||||||||||||
With Sales Charge* | 12.10 | % | 12.19 | % | 10.57 | % | ||||||||
Without Sales Charge | 18.31 | 13.41 | 11.17 | |||||||||||
CLASS C SHARES | May 31, 2016 | |||||||||||||
With CDSC** | 16.71 | 13.17 | 11.05 | |||||||||||
Without CDSC | 17.71 | 13.17 | 11.05 | |||||||||||
CLASS I SHARES | January 3, 2017 | 18.60 | 13.55 | 11.24 | ||||||||||
CLASS R2 SHARES | July 31, 2017 | 18.00 | 12.83 | 10.50 | ||||||||||
CLASS R3 SHARES | July 31, 2017 | 18.30 | 13.11 | 10.78 | ||||||||||
CLASS R4 SHARES | July 31, 2017 | 18.60 | 13.39 | 11.05 | ||||||||||
CLASS R5 SHARES | January 1, 1997 | 18.85 | 13.62 | 11.27 | ||||||||||
CLASS R6 SHARES | May 31, 2016 | 18.89 | 13.65 | 11.29 |
* | 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 (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class A, Class C, Class I, Class R2, Class R3, Class R4 and Class R6 Shares prior to their inception date are based on the performance of Class R5 Shares. The actual returns of Class A, Class C, Class I, Class R2, Class R3 and Class R4 Shares would have been lower than those shown because these Share Classes have higher expenses than Class R5 Shares. The actual returns of the 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 $10,000 invested in Class R5 Shares of the JPMorgan Small Cap Core Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 2000 Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect
reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class R5 Shares have no minimum initial investment.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 7 |
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JPMorgan Small Cap Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Reporting Period Return: | ||||
Fund (Class A Shares, without a sales charge)* | 14.33% | |||
Russell 2000 Index | 17.57% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 6,828,239 |
INVESTMENT OBJECTIVE**
The JPMorgan Small Cap Equity Fund (the “Fund”) seeks capital growth over the long term.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, underperformed the Russell 2000 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the consumer discretionary sector and its security selection and underweight position in the health care sector were leading detractors from performance relative to the Benchmark, while the Fund’s security selection in the financial services and technology sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Spectrum Brands Holdings Inc., Toro Co. and ProAssurance Corp. Shares of Spectrum Brands, a consumer products maker that was not held in the Benchmark, fell after the company reported lower-than-expected earnings for four consecutive quarters and announced the resignation of its chief executive officer. Shares of Toro, a maker of landscaping and irrigation products that was not held in the Benchmark, fell amid weakness in sales. Shares of ProAssurance, a property and casualty insurer, fell after the company reported weaker-than-expected earnings for the first quarter of 2018.
Leading individual contributors to relative performance included the Fund’s overweight positions in GrubHub Inc., Cabot Microelectronics Corp. and Splunk Inc. Shares of GrubHub, an online food delivery and take-out service, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018, and announced a partnership with Yum Brands Inc. Shares of Cabot Microelectronics, a maker of semiconductor manufacturing materials, rose after the company reported positive quarterly earnings and revenue, driven by news products and increased demand from key customers. Shares of Splunk, a cloud computer software provider that was not held in the Benchmark, rose after the company reported earnings growth and increased licensing revenue.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up approach to stock selection, constructing portfolios based on company fundamentals and proprietary analysis. The Fund’s portfolio managers looked for companies that, in their view, had leading competitive advantages, predictable and durable business models, and sustainable free cash flow generation with management teams committed to increasing intrinsic value.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Pool Corp. | 2.3 | % | |||||
2. | AptarGroup, Inc. | 2.2 | ||||||
3. | Toro Co. (The) | 2.1 | ||||||
4. | Performance Food Group Co. | 1.9 | ||||||
5. | Encompass Health Corp. | 1.8 | ||||||
6. | West Pharmaceutical Services, Inc. | 1.7 | ||||||
7. | Cabot Microelectronics Corp. | 1.6 | ||||||
8. | Catalent, Inc. | 1.5 | ||||||
9. | National Retail Properties, Inc. | 1.5 | ||||||
10. | Brunswick Corp. | 1.5 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Industrials | 18.3 | % | ||
Financials | 15.6 | |||
Health Care | 13.1 | |||
Information Technology | 13.0 | |||
Consumer Discretionary | 11.7 | |||
Materials | 6.5 | |||
Real Estate | 6.4 | |||
Energy | 3.8 | |||
Consumer Staples | 2.7 | |||
Utilities | 2.4 | |||
Investment Funds | 1.3 | |||
Short-Term Investments | 5.2 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
8 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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JPMorgan Small Cap Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | December 20, 1994 | |||||||||||||
With Sales Charge* | 8.34 | % | 11.76 | % | 11.93 | % | ||||||||
Without Sales Charge | 14.33 | 12.97 | 12.53 | |||||||||||
CLASS C SHARES | February 19, 2005 | |||||||||||||
With CDSC** | 12.76 | 12.41 | 11.97 | |||||||||||
Without CDSC | 13.76 | 12.41 | 11.97 | |||||||||||
CLASS I SHARES | May 7, 1996 | 14.64 | 13.30 | 12.86 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 14.04 | 12.69 | 12.26 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 14.35 | 12.98 | 12.54 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 14.61 | 13.30 | 12.86 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 14.83 | 13.53 | 13.09 | ||||||||||
CLASS R6 SHARES | May 31, 2016 | 14.89 | 13.55 | 13.10 |
* | 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 (6/30/08 TO 6/30/18)
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 and Class R3 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares. The actual returns of Class R3 Shares would have been different than those shown because Class R3 Shares had different expenses than Class A Shares at time of launch.
Returns for Class R4 Shares prior to their inception date are based on the performance of the Class I Shares. The actual returns for Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses to Class I Shares.
Returns for Class R6 Shares prior to their inception date are based on the performance of the 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 $10,000 invested in Class A Shares of the JPMorgan Small Cap Equity Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index from June 30, 2008 to June 30, 2018.
The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the Russell 2000 Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 9 |
Table of Contents
JPMorgan Small Cap Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Reporting Period Return: | ||||
Fund (Class A Shares, without a sales charge)* | 35.07% | |||
Russell 2000 Growth Index | 21.86% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 2,189,912 |
INVESTMENT OBJECTIVE**
The JPMorgan Small Cap Growth Fund (the “Fund”) seeks long-term capital growth primarily by investing in a portfolio of equity securities of small-capitalization and emerging growth companies.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, outperformed the Russell 2000 Growth Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and overweight position in the technology sector and its security selection in the health care sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the energy sector was the sole sector detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Nektar Therapeutics, GrubHub Inc. and Nutanix Inc. Shares of Nektar Therapeutics, a developer of biopharmaceutical drugs, rose after the company reported positive data from a clinical trial of its melanoma treatment and announced a partnership with Bristol-Myers Squibb Co. Shares of GrubHub, an online food delivery and take-out service, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018, and announced a partnership with Yum Brands Inc. Shares of Nutanix, a provider of cloud computing storage, rose on accelerated revenue growth.
Leading individual detractors from relative performance included the Fund’s overweight positions in GenMark Diagnostics Inc., Macom Technology Solutions Holdings Inc. and E.L.F. Beauty Inc. Shares of GenMark Diagnostics, a medical testing provider, fell after the company reported a loss for the first quarter of 2018. Shares of Macom Technology Solutions Holdings, a semiconductor manufacturer, fell after the company reported lower-than-expected earnings and revenue for its fiscal first quarter ended December 31, 2017. Shares of E.L.F. Beauty, a cosmetics and skin care company, fell amid a slowdown in revenue growth.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection, researching individual companies in an effort to construct portfolios of stocks that have strong fundamentals. The Fund’s portfolio managers preferred to invest in high quality companies with durable franchises that, in their view, possessed the ability to generate strong future earnings growth.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Performance Food Group Co. | 1.8 | % | |||||
2. | Teladoc, Inc. | 1.7 | ||||||
3. | Ollie’s Bargain Outlet Holdings, Inc. | 1.6 | ||||||
4. | Boyd Gaming Corp. | 1.6 | ||||||
5. | Envestnet, Inc. | 1.6 | ||||||
6. | Entegris, Inc. | 1.6 | ||||||
7. | Saia, Inc. | 1.6 | ||||||
8. | Advanced Disposal Services, Inc. | 1.5 | ||||||
9. | Evercore, Inc., Class A | 1.5 | ||||||
10. | HubSpot, Inc. | 1.4 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 24.7 | % | ||
Health Care | 23.7 | |||
Industrials | 17.8 | |||
Consumer Discretionary | 17.5 | |||
Financials | 5.1 | |||
Materials | 3.0 | |||
Consumer Staples | 2.6 | |||
Real Estate | 1.6 | |||
Energy | 1.6 | |||
Short-Term Investments | 2.4 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
10 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | July 1, 1991 | |||||||||||||
With Sales Charge* | 27.98 | % | 14.69 | % | 12.42 | % | ||||||||
Without Sales Charge | 35.07 | 15.93 | 13.03 | |||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | 33.46 | 15.35 | 12.43 | |||||||||||
Without CDSC | 34.46 | 15.35 | 12.43 | |||||||||||
CLASS I SHARES | March 26, 1996 | 35.47 | 16.21 | 13.31 | ||||||||||
CLASS L SHARES | February 19, 2005 | 35.58 | 16.40 | 13.46 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 34.68 | 15.63 | 12.74 | ||||||||||
CLASS R3 SHARES | July 31, 2017 | 35.07 | 15.93 | 13.03 | ||||||||||
CLASS R4 SHARES | July 31, 2017 | 35.40 | 16.20 | 13.30 | ||||||||||
CLASS R5 SHARES | September 9, 2016 | 35.58 | 16.40 | 13.46 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | 35.73 | 16.51 | 13.55 |
* | 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 (6/30/08 TO 6/30/18)
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 their inception date are based on the performance of Class A Shares. All prior class performance for Class R2 Shares has been adjusted to reflect the differences in expenses between classes.
Returns for Class R3 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns for Class R3 Shares would be similar to those shown because Class R3 Shares have similar expenses to Class A Shares. Returns for Class R4 Shares prior to their inception date are based on the performance of Class I Shares. The actual returns for Class R4 Shares would be similar to those shown because Class R4 Shares have similar expenses to Class I Shares.
Returns for Class R5 and Class R6 Shares prior to their inception date are based on the performance of Class L Shares. The actual returns for Class R5 and Class R6 Shares would have been different than those shown because Class R5 and Class R6 Shares have different expenses than Class L Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Small Cap Growth Fund, the Russell 2000 Growth Index and the Lipper Small-Cap Growth Funds Index from June 30, 2008 to June 30,
2018. The performance of the Fund assumes reinvestment of all dividends and
capital gain distributions, if any, and includes a sales charge. The performance of the Russell 2000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Small-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Growth Index is an unmanaged index which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Small-Cap Growth Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 11 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 11.70% | |||
Russell 2000 Value Index | 13.10% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 1,928,282 |
INVESTMENT OBJECTIVE**
The JPMorgan Small Cap Value Fund (the “Fund”) seeks long-term capital growth primarily by investing in equity securities of small-capitalization companies.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the Russell 2000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the pharmaceutical and health services & systems sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the energy and consumer cyclical sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Community Health Systems Inc., Versartis Inc. and Otonomy Inc. Shares of Community Health Systems, a hospitals operator, fell amid investor concerns about the company’s debt payments and weak cash flow. Shares of Versartis, a drug development company, fell early in the reporting period after the company reported its growth hormone drug failed a late-stage clinical trial. Shares of Otonomy, a drug development company, fell early in the reporting period after the company reported its steroid drug candidate failed a late-stage clinical trial.
Leading individual contributors to relative performance included the Fund’s overweight positions in Dillard’s Inc., Take-Two Interactive Software Inc. and Denbury Resources Inc. Shares of Dillard’s, a department store chain, rose after the company reported better-than-expected earnings for the first quarter of 2018. Shares of Take-Two Interactive Software, a videogame publisher not held in the Benchmark, rose amid investor expectations of rising consumer demand for online games and entertainment. Shares of Denbury Resources, a petroleum and natural gas producer, rose as prices for petroleum rose faster than prices for other energy commodities during the reporting period.
HOW WAS THE FUND POSITIONED?
In accordance with Fund’s investment process, its portfolio managers take limited sector bets and construct the Fund so that stock selection is typically the primary driver of its relative performance versus the Benchmark. The Fund’s portfolio
managers use a quantitative ranking methodology to identify stocks in each sector that, in their view, trade at attractive levels. Through bottom-up fundamental research, they seek companies that they believe have attractive valuations, exhibit high earnings quality and have management teams that make effective capital deployment decisions. During the reporting period, the Fund was managed and positioned in accordance with this investment process.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | NetScout Systems, Inc. | 1.3 | % | |||||
2. | Dillard’s, Inc., Class A | 1.2 | ||||||
3. | FTI Consulting, Inc. | 1.2 | ||||||
4. | Pinnacle Entertainment, Inc. | 1.0 | ||||||
5. | KB Home | 1.0 | ||||||
6. | Vishay Intertechnology, Inc. | 1.0 | ||||||
7. | Convergys Corp. | 1.0 | ||||||
8. | EMCOR Group, Inc. | 1.0 | ||||||
9. | ACCO Brands Corp. | 1.0 | ||||||
10. | Westamerica Bancorp | 0.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 27.4 | % | ||
Consumer Discretionary | 12.6 | |||
Industrials | 12.1 | |||
Information Technology | 11.3 | |||
Real Estate | 10.3 | |||
Energy | 6.6 | |||
Health Care | 6.4 | |||
Utilities | 5.8 | |||
Materials | 4.4 | |||
Consumer Staples | 1.3 | |||
Telecommunication Services | 0.5 | |||
Short-Term Investments | 1.3 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
12 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 |
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | January 27, 1995 | |||||||||||||
With Sales Charge* | 5.55 | % | 8.44 | % | 8.90 | % | ||||||||
Without Sales Charge | 11.41 | 9.62 | 9.49 | |||||||||||
CLASS C SHARES | March 22, 1999 | |||||||||||||
With CDSC** | 9.84 | 8.97 | 8.83 | |||||||||||
Without CDSC | 10.84 | 8.97 | 8.83 | |||||||||||
CLASS I SHARES | January 27, 1995 | 11.70 | 9.90 | 9.76 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 11.08 | 9.33 | 9.20 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 11.42 | 9.61 | 9.47 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 11.65 | 9.87 | 9.73 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 11.85 | 10.01 | 9.87 | ||||||||||
CLASS R6 SHARES | February 22, 2005 | 11.97 | 10.13 | 9.95 |
* | 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 (6/30/08 TO 6/30/18)
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 and Class R4 Shares prior to their inception date are based on the performance of the Class I Shares. Returns for the Class R3 Shares prior to their inception dates are based on the performance of Class A Shares. Prior performance for Class R2, Class R3 and Class R4 Shares has been adjusted to reflect the differences in expenses between classes.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Small Cap Value Fund, the Russell 2000 Value Index and the Lipper Small-Cap Value Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 2000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of
the securities included in the benchmark, if applicable. The performance of the Lipper Small-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Value Index is an unmanaged index which measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Small-Cap Value Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 13 |
Table of Contents
JPMorgan U.S. Small Company Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | 15.84% | |||
Russell 2000 Index | 17.57% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 1,778,846 |
INVESTMENT OBJECTIVE**
The JPMorgan U.S. Small Company Fund (the “Fund”) seeks to provide high total return from a portfolio of small company stocks.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the Russell 2000 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the telecommunications and health services & systems sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the pharmaceutical and energy sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Xperi Corp., Versartis Inc. and Tivity Health Inc. Shares of Xperi, a technology licensing and intellectual property vendor, fell amid litigation and acquisitions costs. Shares of Versartis, a drug development company, fell early in the reporting period after the company reported its growth hormone drug failed a late-stage clinical trial. Shares of Tivity, a provider of health care and fitness programs, fell amid increasing competition in the health benefits sector.
Leading individual contributors to relative performance included the Fund’s overweight positions in MyoKardia Inc., Pinnacle Entertainment Inc. and Solid Biosciences Inc. Shares of MyoKardia, a drug development company, rose as the company reported proceeding to late-stage clinical trials for its heart disease drug. Shares of Pinnacle Entertainment, a casino and gaming company, rose after the company agreed to be acquired by Penn National Gaming Inc. Shares of Solid Biosciences, a developer of treatments for muscular dystrophy, rose after U.S. regulators lifted their suspension of a gene therapy clinical trial.
HOW WAS THE FUND POSITIONED?
In accordance with its investment process, the Fund’s portfolio managers take limited sector bets and construct the Fund so that stock selection is typically the primary driver of its relative performance versus the Benchmark. The Fund’s portfolio managers use a quantitative ranking methodology to identify
stocks in each sector that, in their view, trade at attractive levels. Through bottom-up fundamental research, they seek companies that exhibit high earnings quality and have management teams that make effective capital deployment decisions. During the reporting period, the Fund was managed and positioned in accordance with this investment process.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | NetScout Systems, Inc. | 1.4 | % | |||||
2. | EMCOR Group, Inc. | 1.3 | ||||||
3. | Pinnacle Entertainment, Inc. | 1.2 | ||||||
4. | Aspen Technology, Inc. | 1.2 | ||||||
5. | Banner Corp. | 1.1 | ||||||
6. | Molina Healthcare, Inc. | 1.1 | ||||||
7. | Tenet Healthcare Corp. | 1.0 | ||||||
8. | Bloomin’ Brands, Inc. | 1.0 | ||||||
9. | ACCO Brands Corp. | 0.9 | ||||||
10. | Barrett Business Services, Inc. | 0.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Health Care | 17.3 | % | ||
Information Technology | 17.1 | |||
Financials | 15.6 | |||
Consumer Discretionary | 14.4 | |||
Industrials | 13.6 | |||
Real Estate | 5.3 | |||
Energy | 4.5 | |||
Materials | 3.2 | |||
Utilities | 2.8 | |||
Consumer Staples | 1.9 | |||
Telecommunication Services | 0.6 | |||
Short-Term Investments | 3.7 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
14 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan U.S. Small Company Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | November 1, 2007 | |||||||||||||
With Sales Charge* | 9.36 | % | 10.67 | % | 10.44 | % | ||||||||
Without Sales Charge | 15.41 | 11.88 | 11.04 | |||||||||||
CLASS C SHARES | November 1, 2007 | |||||||||||||
With CDSC** | 13.79 | 11.33 | 10.49 | |||||||||||
Without CDSC | 14.79 | 11.33 | 10.49 | |||||||||||
CLASS I SHARES | September 10, 2001 | 15.67 | 12.16 | 11.33 | ||||||||||
CLASS L SHARES | November 4, 1993 | 15.84 | 12.35 | 11.52 | ||||||||||
CLASS R2 SHARES | November 1, 2011 | 15.07 | 11.60 | 10.86 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 15.43 | 11.88 | 11.04 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 15.68 | 12.16 | 11.34 | ||||||||||
CLASS R5 SHARES | September 9, 2016 | 15.84 | 12.34 | 11.51 | ||||||||||
CLASS R6 SHARES | November 1, 2011 | 15.94 | 12.45 | 11.58 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 R4 Shares prior to their inception dates are based on the performance of the Class I Shares. The actual returns for Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses to Class I Shares.
Returns for Class R2 and R3 shares prior to their inception date are based on the performance of the Class A Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares. The actual returns for Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to Class A Shares.
Returns for Class R5 and Class R6 Shares prior to their inception date are based on the performance of the Class L Shares. The actual returns of Class R5 Shares would have been lower than those shown because Class R5 Shares have higher expenses than Class L Shares. The actual returns of Class R6 Shares would have been different than these shown because Class R6 Shares have different expenses than Class L Shares.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan U.S. Small Company Fund, the Russell 2000
Index and the Lipper Small-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 2000 Index does not reflect the deduction of expenses associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Small-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 2000 Index is an unmanaged index which measures the performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. The Lipper Small-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class L 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 15 |
Table of Contents
JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.9% | ||||||||
Aerospace & Defense — 1.5% |
| |||||||
Curtiss-Wright Corp. | 2 | 267 | ||||||
HEICO Corp. | 22 | 1,584 | ||||||
Hexcel Corp. | 17 | 1,108 | ||||||
National Presto Industries, Inc. | 3 | 389 | ||||||
|
| |||||||
3,348 | ||||||||
|
| |||||||
Auto Components — 0.6% | ||||||||
Cooper-Standard Holdings, Inc.* | 5 | 644 | ||||||
LCI Industries | 3 | 283 | ||||||
Tower International, Inc. | 14 | 442 | ||||||
|
| |||||||
1,369 | ||||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
Winnebago Industries, Inc. | 22 | 879 | ||||||
|
| |||||||
Banks — 7.4% | ||||||||
1st Source Corp. | 15 | 790 | ||||||
BancFirst Corp. | 7 | 424 | ||||||
Bank of the Ozarks, Inc. | 15 | 657 | ||||||
Camden National Corp. | 18 | 819 | ||||||
City Holding Co. | 7 | 512 | ||||||
Community Trust Bancorp, Inc. | 18 | 918 | ||||||
First Busey Corp. | 26 | 810 | ||||||
First Commonwealth Financial Corp. | 59 | 917 | ||||||
First Financial Bancorp | 22 | 687 | ||||||
First Merchants Corp. | 13 | 582 | ||||||
Heritage Commerce Corp. | 30 | 510 | ||||||
Heritage Financial Corp. | 25 | 857 | ||||||
Independent Bank Corp. | 5 | 422 | ||||||
Independent Bank Corp. | 15 | 377 | ||||||
Lakeland Bancorp, Inc. | 21 | 418 | ||||||
Mercantile Bank Corp. | 12 | 431 | ||||||
NBT Bancorp, Inc. | 11 | 427 | ||||||
Park National Corp. | 6 | 648 | ||||||
S&T Bancorp, Inc. | 20 | 872 | ||||||
Sandy Spring Bancorp, Inc. | 20 | 808 | ||||||
Signature Bank* | 3 | 433 | ||||||
Texas Capital Bancshares, Inc.* | 19 | 1,766 | ||||||
Tompkins Financial Corp. | 6 | 538 | ||||||
Trustmark Corp. | 17 | 555 | ||||||
|
| |||||||
16,178 | ||||||||
|
| |||||||
Beverages — 0.3% | ||||||||
Boston Beer Co., Inc. (The), Class A* | 2 | 551 | ||||||
|
| |||||||
Biotechnology — 6.6% | ||||||||
ACADIA Pharmaceuticals, Inc.* | 14 | 218 | ||||||
Adverum Biotechnologies, Inc.* | 88 | 465 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Biotechnology — continued | ||||||||
Atara Biotherapeutics, Inc.* | 21 | 764 | ||||||
Avrobio, Inc.* | 12 | 346 | ||||||
Bellicum Pharmaceuticals, Inc.* | 60 | 442 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.* | 28 | 1,121 | ||||||
Clementia Pharmaceuticals, Inc. (Canada)* | 33 | 432 | ||||||
Clovis Oncology, Inc.* | 6 | 268 | ||||||
Coherus Biosciences, Inc.* | 30 | 417 | ||||||
Exact Sciences Corp.* | 10 | 620 | ||||||
FibroGen, Inc.* | 20 | 1,282 | ||||||
G1 Therapeutics, Inc.* | 17 | 733 | ||||||
Global Blood Therapeutics, Inc.* | 6 | 275 | ||||||
Halozyme Therapeutics, Inc.* | 65 | 1,095 | ||||||
Homology Medicines, Inc.* | 46 | 936 | ||||||
Insmed, Inc.* | 9 | 214 | ||||||
Neurocrine Biosciences, Inc.* | 8 | 749 | ||||||
Portola Pharmaceuticals, Inc.* | 13 | 476 | ||||||
REGENXBIO, Inc.* | 20 | 1,407 | ||||||
Sage Therapeutics, Inc.* | 4 | 692 | ||||||
Spark Therapeutics, Inc.* | 17 | 1,372 | ||||||
|
| |||||||
14,324 | ||||||||
|
| |||||||
Building Products — 3.6% | ||||||||
Advanced Drainage Systems, Inc. | 56 | 1,588 | ||||||
American Woodmark Corp.* | 4 | 369 | ||||||
CSW Industrials, Inc.* | 7 | 375 | ||||||
Lennox International, Inc. | 7 | 1,417 | ||||||
Masonite International Corp.* | 14 | 1,031 | ||||||
Simpson Manufacturing Co., Inc. | 8 | 474 | ||||||
Trex Co., Inc.* | 32 | 2,015 | ||||||
Universal Forest Products, Inc. | 13 | 492 | ||||||
|
| |||||||
7,761 | ||||||||
|
| |||||||
Capital Markets — 1.8% | ||||||||
Evercore, Inc., Class A | 20 | 2,102 | ||||||
Financial Engines, Inc. | 7 | 313 | ||||||
LPL Financial Holdings, Inc. | 11 | 734 | ||||||
PennantPark Investment Corp. | 87 | 607 | ||||||
WisdomTree Investments, Inc. | 30 | 276 | ||||||
|
| |||||||
4,032 | ||||||||
|
| |||||||
Chemicals — 2.1% | ||||||||
Ferro Corp.* | 77 | 1,604 | ||||||
Innophos Holdings, Inc. | 12 | 576 | ||||||
Innospec, Inc. | 8 | 617 | ||||||
Quaker Chemical Corp. | 4 | 542 | ||||||
Sensient Technologies Corp. | 8 | 593 | ||||||
Stepan Co. | 7 | 577 | ||||||
|
| |||||||
4,509 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
16 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Commercial Services & Supplies — 2.1% | ||||||||
Advanced Disposal Services, Inc.* | 86 | 2,141 | ||||||
Brady Corp., Class A | 10 | 380 | ||||||
Deluxe Corp. | 9 | 593 | ||||||
Kimball International, Inc., Class B | 22 | 347 | ||||||
UniFirst Corp. | 4 | 793 | ||||||
VSE Corp. | 7 | 343 | ||||||
|
| |||||||
4,597 | ||||||||
|
| |||||||
Communications Equipment — 1.1% | ||||||||
Ciena Corp.* | 26 | 700 | ||||||
NETGEAR, Inc.* | 11 | 700 | ||||||
Quantenna Communications, Inc.* | 63 | 986 | ||||||
|
| |||||||
2,386 | ||||||||
|
| |||||||
Construction & Engineering — 0.2% | ||||||||
Comfort Systems USA, Inc. | 10 | 462 | ||||||
|
| |||||||
Construction Materials — 1.2% | ||||||||
Eagle Materials, Inc. | 9 | 927 | ||||||
Summit Materials, Inc., Class A* | 62 | 1,621 | ||||||
|
| |||||||
2,548 | ||||||||
|
| |||||||
Distributors — 0.6% | ||||||||
Pool Corp. | 9 | 1,351 | ||||||
|
| |||||||
Diversified Consumer Services — 0.8% | ||||||||
Bright Horizons Family Solutions, Inc.* | 17 | 1,784 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.3% | ||||||||
Cincinnati Bell, Inc.* | 44 | 694 | ||||||
|
| |||||||
Electric Utilities — 0.6% | ||||||||
El Paso Electric Co. | 10 | 589 | ||||||
Portland General Electric Co. | 18 | 761 | ||||||
|
| |||||||
1,350 | ||||||||
|
| |||||||
Electrical Equipment — 0.2% | ||||||||
EnerSys | 7 | 502 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 2.4% |
| |||||||
Belden, Inc. | 4 | 246 | ||||||
CTS Corp. | 20 | 703 | ||||||
ePlus, Inc.* | 6 | 603 | ||||||
Littelfuse, Inc. | 8 | 1,756 | ||||||
Plexus Corp.* | 9 | 534 | ||||||
SYNNEX Corp. | 8 | 757 | ||||||
Tech Data Corp.* | 8 | 681 | ||||||
|
| |||||||
5,280 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Energy Equipment & Services — 0.2% | ||||||||
Forum Energy Technologies, Inc.* | 40 | 498 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 4.1% |
| |||||||
American Campus Communities, Inc. | 15 | 634 | ||||||
American Homes 4 Rent, Class A | 30 | 656 | ||||||
Brixmor Property Group, Inc. | 36 | 624 | ||||||
CubeSmart | 20 | 648 | ||||||
Equity Commonwealth* | 19 | 605 | ||||||
Gramercy Property Trust | 12 | 337 | ||||||
Highwoods Properties, Inc. | 26 | 1,323 | ||||||
JBG SMITH Properties | 17 | 609 | ||||||
Rayonier, Inc. | 17 | 646 | ||||||
Rexford Industrial Realty, Inc. | 18 | 562 | ||||||
RLJ Lodging Trust | 31 | 692 | ||||||
Sunstone Hotel Investors, Inc. | 43 | 707 | ||||||
Terreno Realty Corp. | 10 | 377 | ||||||
Washington | 19 | 582 | ||||||
|
| |||||||
9,002 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.1% | ||||||||
Performance Food Group Co.* | 68 | 2,486 | ||||||
|
| |||||||
Food Products — 0.7% | ||||||||
Freshpet, Inc.* | 44 | 1,205 | ||||||
John B Sanfilippo & Son, Inc. | 5 | 401 | ||||||
|
| |||||||
1,606 | ||||||||
|
| |||||||
Gas Utilities — 0.9% | ||||||||
Chesapeake Utilities Corp. | 8 | 600 | ||||||
ONE Gas, Inc. | 10 | 777 | ||||||
Southwest Gas Holdings, Inc. | 9 | 649 | ||||||
|
| |||||||
2,026 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.1% | ||||||||
GenMark Diagnostics, Inc.* | 106 | 676 | ||||||
Insulet Corp.* | 15 | 1,264 | ||||||
iRhythm Technologies, Inc.* | 17 | 1,370 | ||||||
K2M Group Holdings, Inc.* | 50 | 1,133 | ||||||
Nevro Corp.* | 18 | 1,423 | ||||||
TransEnterix, Inc.* | 108 | 469 | ||||||
Varex Imaging Corp.* | 9 | 349 | ||||||
|
| |||||||
6,684 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.4% | ||||||||
Acadia Healthcare Co., Inc.* | 30 | 1,211 | ||||||
Amedisys, Inc.* | 16 | 1,386 | ||||||
Encompass Health Corp. | 10 | 698 | ||||||
Ensign Group, Inc. (The) | 9 | 337 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 17 |
Table of Contents
JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Health Care Providers & Services — continued | ||||||||
Providence Service Corp. (The)* | 5 | 385 | ||||||
Tivity Health, Inc.* | 10 | 363 | ||||||
WellCare Health Plans, Inc.* | 4 | 961 | ||||||
|
| |||||||
5,341 | ||||||||
|
| |||||||
Health Care Technology — 1.7% | ||||||||
Evolent Health, Inc., Class A* | 63 | 1,330 | ||||||
Teladoc, Inc.* | 40 | 2,324 | ||||||
|
| |||||||
3,654 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.1% | ||||||||
Boyd Gaming Corp. | 65 | 2,243 | ||||||
Cheesecake Factory, Inc. (The) | 11 | 592 | ||||||
Cracker Barrel Old Country Store, Inc. | 4 | 595 | ||||||
Jack in the Box, Inc. | 5 | 420 | ||||||
Red Rock Resorts, Inc., Class A | 21 | 697 | ||||||
Ruth’s Hospitality Group, Inc. | 12 | 345 | ||||||
Sonic Corp. | 8 | 282 | ||||||
Texas Roadhouse, Inc. | 23 | 1,520 | ||||||
|
| |||||||
6,694 | ||||||||
|
| |||||||
Household Durables — 0.8% | ||||||||
Helen of Troy Ltd.* | 8 | 794 | ||||||
TRI Pointe Group, Inc.* | 57 | 937 | ||||||
|
| |||||||
1,731 | ||||||||
|
| |||||||
Insurance — 1.2% | ||||||||
Argo Group International Holdings Ltd. | 2 | 145 | ||||||
James River Group Holdings Ltd. | 6 | 229 | ||||||
Old Republic International Corp. | 27 | 535 | ||||||
Safety Insurance Group, Inc. | 5 | 459 | ||||||
Selective Insurance Group, Inc. | 14 | 764 | ||||||
Third Point Reinsurance Ltd. (Bermuda)* | 36 | 448 | ||||||
|
| |||||||
2,580 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.0% | ||||||||
Groupon, Inc.* | 254 | 1,091 | ||||||
Wayfair, Inc., Class A* | 10 | 1,192 | ||||||
|
| |||||||
2,283 | ||||||||
|
| |||||||
Internet Software & Services — 4.4% | ||||||||
2U, Inc.* | 17 | 1,393 | ||||||
Cloudera, Inc.* | 74 | 1,012 | ||||||
DocuSign, Inc.* | 11 | 586 | ||||||
Envestnet, Inc.* | 40 | 2,217 | ||||||
GrubHub, Inc.* | 6 | 580 | ||||||
Instructure, Inc.* | 33 | 1,391 | ||||||
Nutanix, Inc., Class A* | 16 | 841 | ||||||
Okta, Inc.* | 30 | 1,504 | ||||||
|
| |||||||
9,524 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
IT Services — 1.0% | ||||||||
CSG Systems International, Inc. | 14 | 589 | ||||||
MAXIMUS, Inc. | 10 | 598 | ||||||
Science Applications International Corp. | 8 | 652 | ||||||
Sykes Enterprises, Inc.* | 15 | 438 | ||||||
|
| |||||||
2,277 | ||||||||
|
| |||||||
Leisure Products — 0.2% | ||||||||
Callaway Golf Co. | 27 | 510 | ||||||
|
| |||||||
Machinery — 4.7% | ||||||||
Alamo Group, Inc. | 7 | 607 | ||||||
Barnes Group, Inc. | 8 | 449 | ||||||
Blue Bird Corp.* | 13 | 301 | ||||||
Crane Co. | 7 | 539 | ||||||
Evoqua Water Technologies Corp.* | 44 | 904 | ||||||
Graco, Inc. | 28 | 1,261 | ||||||
Hillenbrand, Inc. | 8 | 399 | ||||||
ITT, Inc. | 27 | 1,416 | ||||||
John Bean Technologies Corp. | 17 | 1,489 | ||||||
Kadant, Inc. | 4 | 388 | ||||||
Mueller Industries, Inc. | 17 | 502 | ||||||
Oshkosh Corp. | 19 | 1,346 | ||||||
Standex International Corp. | 4 | 458 | ||||||
Woodward, Inc. | 4 | 269 | ||||||
|
| |||||||
10,328 | ||||||||
|
| |||||||
Marine — 0.5% | ||||||||
Kirby Corp.* | 14 | 1,161 | ||||||
|
| |||||||
Media — 2.2% | ||||||||
AMC Networks, Inc., Class A* | 7 | 435 | ||||||
Cable One, Inc. | 1 | 396 | ||||||
Cinemark Holdings, Inc. | 12 | 432 | ||||||
Emerald Expositions Events, Inc. | 15 | 317 | ||||||
Entercom Communications Corp., Class A | 48 | 361 | ||||||
Hemisphere Media Group, Inc.* | 28 | 370 | ||||||
John Wiley & Sons, Inc., Class A | 7 | 449 | ||||||
MSG Networks, Inc., Class A* | 17 | 402 | ||||||
World Wrestling Entertainment, Inc., Class A | 21 | 1,537 | ||||||
|
| |||||||
4,699 | ||||||||
|
| |||||||
Multiline Retail — 1.3% | ||||||||
Big Lots, Inc. | 11 | 443 | ||||||
Ollie’s Bargain Outlet Holdings, Inc.* | 32 | 2,298 | ||||||
|
| |||||||
2,741 | ||||||||
|
| |||||||
Multi-Utilities — 0.3% | ||||||||
Unitil Corp. | 12 | 595 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
18 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Oil, Gas & Consumable Fuels — 3.0% | ||||||||
Antero Midstream GP LP | 32 | 600 | ||||||
Callon Petroleum Co.* | 53 | 571 | ||||||
Centennial Resource Development, Inc., Class A* | 26 | 464 | ||||||
CNX Resources Corp.* | 30 | 525 | ||||||
Delek US Holdings, Inc. | 15 | 764 | ||||||
Jagged Peak Energy, Inc.* | 58 | 759 | ||||||
Matador Resources Co.* | 17 | 525 | ||||||
PDC Energy, Inc.* | 6 | 352 | ||||||
Peabody Energy Corp. | 7 | 306 | ||||||
RSP Permian, Inc.* | 13 | 556 | ||||||
SemGroup Corp., Class A | 24 | 604 | ||||||
WildHorse Resource Development Corp.* | 22 | 568 | ||||||
|
| |||||||
6,594 | ||||||||
|
| |||||||
Paper & Forest Products — 0.3% | ||||||||
Neenah, Inc. | 7 | 552 | ||||||
|
| |||||||
Personal Products — 0.2% | ||||||||
Inter Parfums, Inc. | 9 | 455 | ||||||
|
| |||||||
Pharmaceuticals — 2.8% | ||||||||
Horizon Pharma plc* | 73 | 1,210 | ||||||
Nektar Therapeutics* | 10 | 499 | ||||||
Optinose, Inc.* | 42 | 1,164 | ||||||
Prestige Brands Holdings, Inc.* | 10 | 395 | ||||||
Revance Therapeutics, Inc.* | 36 | 987 | ||||||
TherapeuticsMD, Inc.* | 175 | 1,094 | ||||||
Tricida, Inc.* | 23 | 680 | ||||||
|
| |||||||
6,029 | ||||||||
|
| |||||||
Professional Services — 0.4% | ||||||||
Insperity, Inc. | 5 | 469 | ||||||
Korn/Ferry International | 8 | 474 | ||||||
|
| |||||||
943 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.4% | ||||||||
RE/MAX Holdings, Inc., Class A | 18 | 923 | ||||||
|
| |||||||
Road & Rail — 1.3% | ||||||||
Marten Transport Ltd. | 27 | 630 | ||||||
Saia, Inc.* | 27 | 2,184 | ||||||
|
| |||||||
2,814 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.5% |
| |||||||
Cabot Microelectronics Corp. | 6 | 636 | ||||||
Entegris, Inc. | 65 | 2,203 | ||||||
Inphi Corp.* | 54 | 1,757 | ||||||
MKS Instruments, Inc. | 16 | 1,530 | ||||||
Monolithic Power Systems, Inc. | 12 | 1,621 | ||||||
|
| |||||||
7,747 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Software — 6.8% | ||||||||
Domo, Inc., Class B* | 18 | 491 | ||||||
Guidewire Software, Inc.* | 7 | 664 | ||||||
HubSpot, Inc.* | 16 | 2,036 | ||||||
Paycom Software, Inc.* | 16 | 1,594 | ||||||
Pluralsight, Inc., Class A* | 39 | 959 | ||||||
Progress Software Corp. | 10 | 400 | ||||||
Proofpoint, Inc.* | 14 | 1,579 | ||||||
RingCentral, Inc., Class A* | 22 | 1,521 | ||||||
SailPoint Technologies Holding, Inc.* | 67 | 1,655 | ||||||
Smartsheet, Inc., Class A* | 28 | 714 | ||||||
Tyler Technologies, Inc.* | 4 | 999 | ||||||
Zendesk, Inc.* | 31 | 1,678 | ||||||
Zscaler, Inc.* | 19 | 665 | ||||||
|
| |||||||
14,955 | ||||||||
|
| |||||||
Specialty Retail — 3.5% | ||||||||
Burlington Stores, Inc.* | 4 | 650 | ||||||
Floor & Decor Holdings, Inc., Class A* | 30 | 1,500 | ||||||
Hudson Ltd., Class A (United Kingdom)* | 86 | 1,507 | ||||||
Lithia Motors, Inc., Class A | 16 | 1,525 | ||||||
National Vision Holdings, Inc.* | 51 | 1,857 | ||||||
Williams-Sonoma, Inc. | 10 | 632 | ||||||
|
| |||||||
7,671 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.7% | ||||||||
Carter’s, Inc. | 5 | 583 | ||||||
Columbia Sportswear Co. | 7 | 615 | ||||||
Movado Group, Inc. | 10 | 497 | ||||||
Wolverine World Wide, Inc. | 56 | 1,942 | ||||||
|
| |||||||
3,637 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 2.2% | ||||||||
BofI Holding, Inc.* | 24 | 984 | ||||||
First Defiance Financial Corp. | 7 | 465 | ||||||
Meridian Bancorp, Inc. | 43 | 832 | ||||||
TrustCo Bank Corp. | 85 | 758 | ||||||
Washington Federal, Inc. | 26 | 835 | ||||||
Waterstone Financial, Inc. | 22 | 368 | ||||||
WSFS Financial Corp. | 11 | 573 | ||||||
|
| |||||||
4,815 | ||||||||
|
| |||||||
Trading Companies & Distributors — 2.5% | ||||||||
Applied Industrial Technologies, Inc. | 23 | 1,580 | ||||||
H&E Equipment Services, Inc. | 31 | 1,153 | ||||||
MSC Industrial Direct Co., Inc., Class A | 8 | 684 | ||||||
Rush Enterprises, Inc., Class A* | 35 | 1,500 | ||||||
SiteOne Landscape Supply, Inc.* | 7 | 551 | ||||||
|
| |||||||
5,468 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 19 |
Table of Contents
JPMorgan Small Cap Blend Fund
(formerly known as JPMorgan Dynamic Small Cap Growth Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Water Utilities — 0.6% | ||||||||
American States Water Co. | 11 | 615 | ||||||
Middlesex Water Co. | 14 | 590 | ||||||
|
| |||||||
1,205 | ||||||||
|
| |||||||
Total Common Stocks | 214,133 | |||||||
|
| |||||||
Short-Term Investments — 2.4% |
| |||||||
Investment Companies — 2.4% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) (Cost $5,211) | 5,211 | 5,211 | ||||||
|
| |||||||
Total Investments — 100.3% |
| 219,344 | ||||||
Liabilities in Excess of |
| (587 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 218,757 | |||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Core Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.0% | ||||||||
Aerospace & Defense — 1.2% | ||||||||
AAR Corp. | 18 | 849 | ||||||
Engility Holdings, Inc.* | 14 | 442 | ||||||
HEICO Corp., Class A | 13 | 776 | ||||||
Moog, Inc., Class A | 4 | 281 | ||||||
Vectrus, Inc.* | 44 | 1,346 | ||||||
|
| |||||||
3,694 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.2% | ||||||||
Atlas Air Worldwide Holdings, Inc.* | 5 | 359 | ||||||
Park-Ohio Holdings Corp. | 4 | 158 | ||||||
|
| |||||||
517 | ||||||||
|
| |||||||
Airlines — 0.7% | ||||||||
Hawaiian Holdings, Inc. | 11 | 399 | ||||||
SkyWest, Inc. | 34 | 1,780 | ||||||
|
| |||||||
2,179 | ||||||||
|
| |||||||
Auto Components — 1.3% | ||||||||
American Axle & Manufacturing Holdings, Inc.* | 57 | 887 | ||||||
Cooper-Standard Holdings, Inc.* | 19 | 2,502 | ||||||
Dana, Inc. | 19 | 380 | ||||||
Modine Manufacturing Co.* | 6 | 111 | ||||||
Stoneridge, Inc.* | 2 | 73 | ||||||
Tower International, Inc. | 6 | 183 | ||||||
|
| |||||||
4,136 | ||||||||
|
| |||||||
Banks — 10.0% | ||||||||
Bancorp, Inc. (The)* | 54 | 560 | ||||||
Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | 65 | 2,981 | ||||||
Cadence BanCorp | 5 | 139 | ||||||
Cathay General Bancorp | 9 | 365 | ||||||
Central Valley Community Bancorp | 3 | 70 | ||||||
Community Trust Bancorp, Inc. | 2 | 91 | ||||||
Customers Bancorp, Inc.* | 4 | 123 | ||||||
East West Bancorp, Inc. | 39 | 2,521 | ||||||
Enterprise Financial Services Corp. | 2 | 108 | ||||||
Fidelity Southern Corp. | 16 | 402 | ||||||
Financial Institutions, Inc. | 20 | 667 | ||||||
First BanCorp (Puerto Rico)* | 182 | 1,391 | ||||||
First Business Financial Services, Inc. | 5 | 138 | ||||||
First Community Bancshares, Inc. | 6 | 203 | ||||||
First Financial Bancorp | 6 | 196 | ||||||
First Merchants Corp. | 40 | 1,860 | ||||||
Fulton Financial Corp. | 57 | 940 | ||||||
Hancock Whitney Corp. | 43 | 1,987 | ||||||
Hanmi Financial Corp. | 38 | 1,066 | ||||||
Hilltop Holdings, Inc. | 15 | 334 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Banks — continued | ||||||||
Hope Bancorp, Inc. | 67 | 1,201 | ||||||
Howard Bancorp, Inc.* | 1 | 25 | ||||||
IBERIABANK Corp. | 6 | 457 | ||||||
NBT Bancorp, Inc. | 3 | 128 | ||||||
Northeast Bancorp | 4 | 96 | ||||||
Pacific Mercantile Bancorp* | 6 | 54 | ||||||
PacWest Bancorp | 27 | 1,346 | ||||||
Popular, Inc. (Puerto Rico) | 61 | 2,757 | ||||||
Preferred Bank | 12 | 716 | ||||||
Premier Financial Bancorp, Inc. | 3 | 51 | ||||||
Shore Bancshares, Inc. | 7 | 131 | ||||||
Sierra Bancorp | 3 | 89 | ||||||
SVB Financial Group* | 2 | 463 | ||||||
TCF Financial Corp. | 106 | 2,597 | ||||||
Towne Bank | 2 | 71 | ||||||
TriCo Bancshares | 5 | 178 | ||||||
TriState Capital Holdings, Inc.* | 8 | 206 | ||||||
Triumph Bancorp, Inc.* | 7 | 272 | ||||||
United Community Banks, Inc. | 20 | 607 | ||||||
Wintrust Financial Corp. | 30 | 2,577 | ||||||
Zions Bancorp | 23 | 1,212 | ||||||
|
| |||||||
31,376 | ||||||||
|
| |||||||
Biotechnology — 7.0% |
| |||||||
Acorda Therapeutics, Inc.* | 11 | 301 | ||||||
Aduro Biotech, Inc.* | 68 | 478 | ||||||
Akebia Therapeutics, Inc.* | 38 | 379 | ||||||
Allena Pharmaceuticals, Inc.* | 29 | 374 | ||||||
AMAG Pharmaceuticals, Inc.* | 54 | 1,049 | ||||||
Amicus Therapeutics, Inc.* | 64 | 1,005 | ||||||
AnaptysBio, Inc.* | 7 | 497 | ||||||
Aptinyx, Inc.* | 1 | 24 | ||||||
Audentes Therapeutics, Inc.* | 16 | 627 | ||||||
Bellicum Pharmaceuticals, Inc.* | 106 | 779 | ||||||
Bluebird Bio, Inc.* | 7 | 1,130 | ||||||
Blueprint Medicines Corp.* | 9 | 590 | ||||||
Cara Therapeutics, Inc.* | 19 | 360 | ||||||
Catalyst Pharmaceuticals, Inc.* | 135 | 420 | ||||||
Coherus Biosciences, Inc.* | 55 | 766 | ||||||
Concert Pharmaceuticals, Inc.* | 21 | 357 | ||||||
Dynavax Technologies Corp.* | 37 | 567 | ||||||
Esperion Therapeutics, Inc.* | 10 | 384 | ||||||
FibroGen, Inc.* | 14 | 864 | ||||||
Forty Seven, Inc.* | 16 | 250 | ||||||
Heron Therapeutics, Inc.* | 31 | 1,189 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 21 |
Table of Contents
JPMorgan Small Cap Core Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Biotechnology — continued | ||||||||
Homology Medicines, Inc.* | 25 | 508 | ||||||
Jounce Therapeutics, Inc.* | 26 | 200 | ||||||
Loxo Oncology, Inc.* | 8 | 1,345 | ||||||
Madrigal Pharmaceuticals, Inc.* | 3 | 811 | ||||||
Mersana Therapeutics, Inc.* | 22 | 391 | ||||||
Ra Pharmaceuticals, Inc.* | 35 | 344 | ||||||
Radius Health, Inc.* | 3 | 91 | ||||||
Rhythm Pharmaceuticals, Inc.* | 22 | 700 | ||||||
Rigel Pharmaceuticals, Inc.* | 98 | 277 | ||||||
Sage Therapeutics, Inc.* | 6 | 963 | ||||||
Sarepta Therapeutics, Inc.* | 12 | 1,639 | ||||||
Selecta Biosciences, Inc.* | 45 | 599 | ||||||
Spark Therapeutics, Inc.* | 6 | 505 | ||||||
Synergy Pharmaceuticals, Inc.* | 58 | 101 | ||||||
Syros Pharmaceuticals, Inc.* | 59 | 600 | ||||||
TESARO, Inc.* | 4 | 169 | ||||||
Xencor, Inc.* | 12 | 455 | ||||||
|
| |||||||
22,088 | ||||||||
|
| |||||||
Building Products — 0.5% |
| |||||||
Universal Forest Products, Inc. | 41 | 1,516 | ||||||
|
| |||||||
Capital Markets — 1.1% |
| |||||||
BGC Partners, Inc., Class A | 93 | 1,054 | ||||||
BrightSphere Investment Group plc | 48 | 685 | ||||||
Houlihan Lokey, Inc. | 9 | 467 | ||||||
INTL. FCStone, Inc.* | 2 | 97 | ||||||
Investment Technology Group, Inc. | 25 | 529 | ||||||
Piper Jaffray Cos. | 4 | 309 | ||||||
Pzena Investment Management, Inc., Class A | 7 | 68 | ||||||
Stifel Financial Corp. | 2 | 110 | ||||||
|
| |||||||
3,319 | ||||||||
|
| |||||||
Chemicals — 1.5% |
| |||||||
Chemours Co. (The) | 10 | 461 | ||||||
FutureFuel Corp. | 20 | 283 | ||||||
OMNOVA Solutions, Inc.* | 16 | 167 | ||||||
Rayonier Advanced Materials, Inc. | 19 | 319 | ||||||
Trinseo SA | 48 | 3,385 | ||||||
|
| |||||||
4,615 | ||||||||
|
| |||||||
Commercial Services & Supplies — 2.6% |
| |||||||
ABM Industries, Inc. | 16 | 455 | ||||||
ACCO Brands Corp. | 162 | 2,247 | ||||||
BrightView Holdings, Inc.* | 22 | 492 | ||||||
Essendant, Inc. | 29 | 389 | ||||||
Herman Miller, Inc. | 3 | 98 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Commercial Services & Supplies — continued | ||||||||
Kimball International, Inc., Class B | 14 | 219 | ||||||
Knoll, Inc. | 6 | 118 | ||||||
LSC Communications, Inc. | 59 | 916 | ||||||
Quad/Graphics, Inc. | 132 | 2,751 | ||||||
Steelcase, Inc., Class A | 34 | 453 | ||||||
VSE Corp. | 2 | 82 | ||||||
|
| |||||||
8,220 | ||||||||
|
| |||||||
Communications Equipment — 0.7% |
| |||||||
Ciena Corp.* | 44 | 1,164 | ||||||
Plantronics, Inc. | 16 | 1,197 | ||||||
|
| |||||||
2,361 | ||||||||
|
| |||||||
Construction & Engineering — 2.5% |
| |||||||
Comfort Systems USA, Inc. | 2 | 87 | ||||||
EMCOR Group, Inc. | 26 | 1,995 | ||||||
HC2 Holdings, Inc.* | 183 | 1,071 | ||||||
KBR, Inc. | 124 | 2,228 | ||||||
MasTec, Inc.* | 36 | 1,827 | ||||||
Sterling Construction Co., Inc.* | 19 | 250 | ||||||
Tutor Perini Corp.* | 15 | 268 | ||||||
|
| |||||||
7,726 | ||||||||
|
| |||||||
Consumer Finance — 1.9% |
| |||||||
Enova International, Inc.* | 13 | 479 | ||||||
FirstCash, Inc. | 33 | 2,929 | ||||||
Green Dot Corp., Class A* | 34 | 2,459 | ||||||
|
| |||||||
5,867 | ||||||||
|
| |||||||
Containers & Packaging — 0.3% |
| |||||||
Berry Global Group, Inc.* | 14 | 626 | ||||||
Graphic Packaging Holding Co. | 25 | 360 | ||||||
|
| |||||||
986 | ||||||||
|
| |||||||
Distributors — 0.1% |
| |||||||
Funko, Inc., Class A* | 30 | 375 | ||||||
|
| |||||||
Diversified Consumer Services — 0.7% |
| |||||||
Capella Education Co. | 2 | 199 | ||||||
Grand Canyon Education, Inc.* | 9 | 971 | ||||||
K12, Inc.* | 24 | 389 | ||||||
Weight Watchers International, Inc.* | 7 | 678 | ||||||
|
| |||||||
2,237 | ||||||||
|
| |||||||
Diversified Financial Services — 0.1% |
| |||||||
Cannae Holdings, Inc.* | 5 | 100 | ||||||
Marlin Business Services Corp. | 3 | 93 | ||||||
|
| |||||||
193 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Diversified Telecommunication Services — 0.1% |
| |||||||
Ooma, Inc.* | 34 | 487 | ||||||
|
| |||||||
Electric Utilities — 1.2% |
| |||||||
IDACORP, Inc. | 6 | 592 | ||||||
MGE Energy, Inc. | 4 | 244 | ||||||
PNM Resources, Inc. | 9 | 346 | ||||||
Portland General Electric Co. | 42 | 1,786 | ||||||
Spark Energy, Inc., Class A | 80 | 782 | ||||||
|
| |||||||
3,750 | ||||||||
|
| |||||||
Electrical Equipment — 0.4% |
| |||||||
Atkore International Group, Inc.* | 23 | 484 | ||||||
EnerSys | 7 | 493 | ||||||
Regal Beloit Corp. | 4 | 313 | ||||||
|
| |||||||
1,290 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 4.3% |
| |||||||
Benchmark Electronics, Inc. | 51 | 1,479 | ||||||
Fitbit, Inc., Class A* | 24 | 157 | ||||||
Insight Enterprises, Inc.* | 43 | 2,086 | ||||||
KEMET Corp.* | 77 | 1,847 | ||||||
Kimball Electronics, Inc.* | 30 | 558 | ||||||
Littelfuse, Inc. | 3 | 634 | ||||||
Methode Electronics, Inc. | 25 | 1,006 | ||||||
Plexus Corp.* | 3 | 179 | ||||||
Sanmina Corp.* | 65 | 1,907 | ||||||
Tech Data Corp.* | 38 | 3,114 | ||||||
Vishay Precision Group, Inc.* | 11 | 401 | ||||||
|
| |||||||
13,368 | ||||||||
|
| |||||||
Energy Equipment & Services — 1.2% |
| |||||||
C&J Energy Services, Inc.* | 7 | 156 | ||||||
Exterran Corp.* | 29 | 719 | ||||||
FTS International, Inc.* | 22 | 309 | ||||||
Mammoth Energy Services, Inc.* | 3 | 98 | ||||||
Matrix Service Co.* | 29 | 527 | ||||||
McDermott International, Inc.* | 30 | 588 | ||||||
Oil States International, Inc.* | 32 | 1,011 | ||||||
PHI, Inc. (Non-Voting)* | 7 | 76 | ||||||
RigNet, Inc.* | 38 | 394 | ||||||
|
| |||||||
3,878 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 6.2% |
| |||||||
American Assets Trust, Inc. | 9 | 352 | ||||||
Armada Hoffler Properties, Inc. | 89 | 1,329 | ||||||
Ashford Hospitality Trust, Inc. | 166 | 1,345 | ||||||
Braemar Hotels & Resorts, Inc. | 30 | 338 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Equity Real Estate Investment Trusts (REITs) — continued |
| |||||||
Chatham Lodging Trust | 10 | 216 | ||||||
Chesapeake Lodging Trust | 12 | 372 | ||||||
CoreCivic, Inc. | 16 | 380 | ||||||
CorEnergy Infrastructure Trust, Inc. | 1 | 41 | ||||||
CoreSite Realty Corp. | 6 | 717 | ||||||
Cousins Properties, Inc. | 32 | 308 | ||||||
CyrusOne, Inc. | 3 | 163 | ||||||
DCT Industrial Trust, Inc. | 10 | 640 | ||||||
DiamondRock Hospitality Co. | 39 | 481 | ||||||
Education Realty Trust, Inc. | 1 | 60 | ||||||
First Industrial Realty Trust, Inc. | 48 | 1,615 | ||||||
Franklin Street Properties Corp. | 4 | 31 | ||||||
GEO Group, Inc. (The) | 89 | 2,437 | ||||||
Getty Realty Corp. | 29 | 817 | ||||||
Highwoods Properties, Inc. | 8 | 411 | ||||||
Hudson Pacific Properties, Inc. | 6 | 220 | ||||||
InfraREIT, Inc. | 11 | 237 | ||||||
LaSalle Hotel Properties | 9 | 322 | ||||||
New Senior Investment Group, Inc. | 8 | 60 | ||||||
NexPoint Residential Trust, Inc. | 24 | 691 | ||||||
Preferred Apartment Communities, Inc., Class A | 24 | 415 | ||||||
PS Business Parks, Inc. | 2 | 257 | ||||||
Ramco-Gershenson Properties Trust | 26 | 344 | ||||||
Retail Opportunity Investments Corp. | 31 | 590 | ||||||
Rexford Industrial Realty, Inc. | 25 | 785 | ||||||
RLJ Lodging Trust | 24 | 525 | ||||||
Summit Hotel Properties, Inc. | 55 | 781 | ||||||
Sun Communities, Inc. | 3 | 284 | ||||||
Sunstone Hotel Investors, Inc. | 50 | 834 | ||||||
Tier REIT, Inc. | 20 | 468 | ||||||
Xenia Hotels & Resorts, Inc. | 26 | 621 | ||||||
|
| |||||||
19,487 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.8% |
| |||||||
Performance Food Group Co.* | 33 | 1,204 | ||||||
SpartanNash Co. | 35 | 893 | ||||||
US Foods Holding Corp.* | 12 | 457 | ||||||
|
| |||||||
2,554 | ||||||||
|
| |||||||
Food Products — 0.6% |
| |||||||
Dean Foods Co. | 39 | 408 | ||||||
Pilgrim’s Pride Corp.* | 31 | 628 | ||||||
Pinnacle Foods, Inc. | 4 | 281 | ||||||
Sanderson Farms, Inc. | 4 | 389 | ||||||
TreeHouse Foods, Inc.* | 3 | 142 | ||||||
|
| |||||||
1,848 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 23 |
Table of Contents
JPMorgan Small Cap Core Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Gas Utilities — 0.7% |
| |||||||
New Jersey Resources Corp. | 15 | 673 | ||||||
Southwest Gas Holdings, Inc. | 14 | 1,075 | ||||||
WGL Holdings, Inc. | 5 | 462 | ||||||
|
| |||||||
2,210 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.1% |
| |||||||
Globus Medical, Inc., Class A* | 6 | 313 | ||||||
Haemonetics Corp.* | 42 | 3,793 | ||||||
Inogen, Inc.* | 7 | 1,259 | ||||||
Integer Holdings Corp.* | 47 | 3,039 | ||||||
Lantheus Holdings, Inc.* | 72 | 1,040 | ||||||
Masimo Corp.* | 3 | 332 | ||||||
|
| |||||||
9,776 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.2% |
| |||||||
Addus HomeCare Corp.* | 25 | 1,431 | ||||||
American Renal Associates Holdings, Inc.* | 15 | 233 | ||||||
Cross Country Healthcare, Inc.* | 79 | 890 | ||||||
Diplomat Pharmacy, Inc.* | 37 | 936 | ||||||
Encompass Health Corp. | 24 | 1,639 | ||||||
Envision Healthcare Corp.* | 3 | 112 | ||||||
Molina Healthcare, Inc.* | 34 | 3,283 | ||||||
Owens & Minor, Inc. | 28 | 460 | ||||||
RadNet, Inc.* | 34 | 509 | ||||||
Surgery Partners, Inc.* | 12 | 176 | ||||||
Tenet Healthcare Corp.* | 74 | 2,474 | ||||||
WellCare Health Plans, Inc.* | 4 | 1,000 | ||||||
|
| |||||||
13,143 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.4% |
| |||||||
Bloomin’ Brands, Inc. | 91 | 1,829 | ||||||
Dine Brands Global, Inc. | 8 | 606 | ||||||
Pinnacle Entertainment, Inc.* | 38 | 1,288 | ||||||
Ruth’s Hospitality Group, Inc. | 23 | 640 | ||||||
|
| |||||||
4,363 | ||||||||
|
| |||||||
Household Durables — 2.0% |
| |||||||
Beazer Homes USA, Inc.* | 60 | 884 | ||||||
Hamilton Beach Brands Holding Co., Class A | 4 | 109 | ||||||
Helen of Troy Ltd.* | 16 | 1,544 | ||||||
Hooker Furniture Corp. | 10 | 469 | ||||||
KB Home | 37 | 1,000 | ||||||
Lifetime Brands, Inc. | 18 | 223 | ||||||
Taylor Morrison Home Corp., Class A* | 96 | 1,984 | ||||||
|
| |||||||
6,213 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Household Products — 0.3% |
| |||||||
Central Garden & Pet Co., Class A* | 27 | 1,105 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.8% |
| |||||||
Atlantic Power Corp.* | 52 | 114 | ||||||
NRG Yield, Inc., Class A | 5 | 85 | ||||||
NRG Yield, Inc., Class C | 77 | 1,316 | ||||||
Ormat Technologies, Inc. | 12 | 644 | ||||||
Vistra Energy Corp.* | 11 | 252 | ||||||
|
| |||||||
2,411 | ||||||||
|
| |||||||
Insurance — 2.2% |
| |||||||
American Equity Investment Life Holding Co. | 46 | 1,642 | ||||||
CNO Financial Group, Inc. | 59 | 1,128 | ||||||
First American Financial Corp. | 13 | 657 | ||||||
HCI Group, Inc. | 7 | 281 | ||||||
Kinsale Capital Group, Inc. | 11 | 587 | ||||||
National General Holdings Corp. | 6 | 162 | ||||||
Selective Insurance Group, Inc. | 4 | 227 | ||||||
Stewart Information Services Corp. | 18 | 771 | ||||||
United Fire Group, Inc. | 5 | 250 | ||||||
Universal Insurance Holdings, Inc. | 36 | 1,273 | ||||||
|
| |||||||
6,978 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.1% |
| |||||||
Groupon, Inc.* | 90 | 387 | ||||||
Liberty Expedia Holdings, Inc., Class A* | 29 | 1,265 | ||||||
Liberty TripAdvisor Holdings, Inc., Class A* | 82 | 1,327 | ||||||
Shutterfly, Inc.* | 5 | 423 | ||||||
|
| |||||||
3,402 | ||||||||
|
| |||||||
Internet Software & Services — 2.4% |
| |||||||
Apptio, Inc., Class A* | 20 | 721 | ||||||
Blucora, Inc.* | 61 | 2,261 | ||||||
DocuSign, Inc.* | 7 | 365 | ||||||
Etsy, Inc.* | 10 | 430 | ||||||
Five9, Inc.* | 15 | 510 | ||||||
Limelight Networks, Inc.* | 111 | 497 | ||||||
New Relic, Inc.* | 14 | 1,408 | ||||||
Nutanix, Inc., Class A* | 12 | 614 | ||||||
QuinStreet, Inc.* | 27 | 348 | ||||||
SendGrid, Inc.* | 3 | 66 | ||||||
Web.com Group, Inc.* | 10 | 253 | ||||||
|
| |||||||
7,473 | ||||||||
|
| |||||||
IT Services — 2.1% |
| |||||||
CACI International, Inc., Class A* | 6 | 1,079 | ||||||
ServiceSource International, Inc.* | 46 | 180 |
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
IT Services — continued |
| |||||||
Sykes Enterprises, Inc.* | 16 | 450 | ||||||
Travelport Worldwide Ltd. | 159 | 2,955 | ||||||
Unisys Corp.* | 89 | 1,149 | ||||||
Virtusa Corp.* | 14 | 691 | ||||||
|
| |||||||
6,504 | ||||||||
|
| |||||||
Machinery — 3.4% |
| |||||||
Barnes Group, Inc. | 6 | 374 | ||||||
Columbus McKinnon Corp. | 22 | 937 | ||||||
Federal Signal Corp. | 18 | 413 | ||||||
Global Brass & Copper Holdings, Inc. | 58 | 1,803 | ||||||
Greenbrier Cos., Inc. (The) | 6 | 314 | ||||||
Hurco Cos., Inc. | 2 | 90 | ||||||
Hyster-Yale Materials Handling, Inc. | 4 | 283 | ||||||
Kadant, Inc. | 8 | 805 | ||||||
Meritor, Inc.* | 106 | 2,180 | ||||||
Milacron Holdings Corp.* | 40 | 757 | ||||||
SPX FLOW, Inc.* | 5 | 228 | ||||||
Standex International Corp. | 1 | 147 | ||||||
TriMas Corp.* | 11 | 317 | ||||||
Wabash National Corp. | 93 | 1,741 | ||||||
Watts Water Technologies, Inc., Class A | 4 | 282 | ||||||
|
| |||||||
10,671 | ||||||||
|
| |||||||
Marine — 0.2% |
| |||||||
Costamare, Inc. (Monaco) | 71 | 563 | ||||||
|
| |||||||
Media — 1.0% |
| |||||||
Gannett Co., Inc. | 122 | 1,302 | ||||||
Gray Television, Inc.* | 42 | 671 | ||||||
MDC Partners, Inc., Class A* | 49 | 225 | ||||||
Nexstar Media Group, Inc., Class A | 3 | 222 | ||||||
Sinclair Broadcast Group, Inc., Class A | 26 | 852 | ||||||
|
| |||||||
3,272 | ||||||||
|
| |||||||
Metals & Mining — 0.9% |
| |||||||
AK Steel Holding Corp.* | 74 | 321 | ||||||
Cleveland-Cliffs, Inc.* | 59 | 501 | ||||||
Commercial Metals Co. | 21 | 443 | ||||||
Ramaco Resources, Inc.* | 23 | 159 | ||||||
Ryerson Holding Corp.* | 16 | 173 | ||||||
Warrior Met Coal, Inc. | 33 | 904 | ||||||
Worthington Industries, Inc. | 5 | 199 | ||||||
|
| |||||||
2,700 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.4% |
| |||||||
Capstead Mortgage Corp. | 10 | 91 | ||||||
Invesco Mortgage Capital, Inc. | 6 | 91 | ||||||
Redwood Trust, Inc. | 68 | 1,114 | ||||||
|
| |||||||
1,296 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Multiline Retail — 0.2% |
| |||||||
BJ’s Wholesale Club Holdings, Inc.* | 26 | 610 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 3.9% |
| |||||||
Abraxas Petroleum Corp.* | 233 | 672 | ||||||
Arch Coal, Inc., Class A | 8 | 643 | ||||||
Delek US Holdings, Inc. | 68 | 3,408 | ||||||
Denbury Resources, Inc.* | 318 | 1,528 | ||||||
EP Energy Corp., Class A* | 39 | 118 | ||||||
NACCO Industries, Inc., Class A | 2 | 65 | ||||||
Peabody Energy Corp. | 50 | 2,283 | ||||||
Renewable Energy Group, Inc.* | 56 | 1,007 | ||||||
REX American Resources Corp.* | 1 | 49 | ||||||
SRC Energy, Inc.* | 43 | 476 | ||||||
W&T Offshore, Inc.* | 301 | 2,149 | ||||||
|
| |||||||
12,398 | ||||||||
|
| |||||||
Paper & Forest Products — 1.5% |
| |||||||
Boise Cascade Co. | 15 | 665 | ||||||
Louisiana-Pacific Corp. | 33 | 885 | ||||||
Schweitzer-Mauduit International, Inc. | 35 | 1,515 | ||||||
Verso Corp., Class A* | 74 | 1,610 | ||||||
|
| |||||||
4,675 | ||||||||
|
| |||||||
Personal Products — 0.1% |
| |||||||
USANA Health Sciences, Inc.* | 2 | 193 | ||||||
|
| |||||||
Pharmaceuticals — 1.7% |
| |||||||
Aclaris Therapeutics, Inc.* | 27 | 545 | ||||||
Amphastar Pharmaceuticals, Inc.* | 9 | 136 | ||||||
Assembly Biosciences, Inc.* | 12 | 459 | ||||||
Endo International plc* | 51 | 482 | ||||||
Horizon Pharma plc* | 94 | 1,553 | ||||||
Medicines Co. (The)* | 3 | 117 | ||||||
Phibro Animal Health Corp., Class A | 11 | 511 | ||||||
resTORbio, Inc.* | 12 | 112 | ||||||
Revance Therapeutics, Inc.* | 6 | 176 | ||||||
TherapeuticsMD, Inc.* | 109 | 682 | ||||||
WaVe Life Sciences Ltd.* | 14 | 524 | ||||||
|
| |||||||
5,297 | ||||||||
|
| |||||||
Professional Services — 3.5% |
| |||||||
Barrett Business Services, Inc. | 28 | 2,733 | ||||||
CRA International, Inc. | 5 | 274 | ||||||
Heidrick & Struggles International, Inc. | 13 | 469 | ||||||
ICF International, Inc. | 10 | 703 | ||||||
Insperity, Inc. | 39 | 3,761 | ||||||
Kelly Services, Inc., Class A | 2 | 46 | ||||||
Kforce, Inc. | 3 | 106 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 25 |
Table of Contents
JPMorgan Small Cap Core Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Professional Services — continued |
| |||||||
Korn/Ferry International | 7 | 403 | ||||||
TriNet Group, Inc.* | 18 | 1,024 | ||||||
TrueBlue, Inc.* | 55 | 1,469 | ||||||
|
| |||||||
10,988 | ||||||||
|
| |||||||
Road & Rail — 1.3% |
| |||||||
ArcBest Corp. | 59 | 2,691 | ||||||
Avis Budget Group, Inc.* | 23 | 735 | ||||||
Covenant Transportation Group, Inc., Class A* | 5 | 154 | ||||||
Schneider National, Inc., Class B | 11 | 305 | ||||||
Universal Logistics Holdings, Inc. | 3 | 75 | ||||||
YRC Worldwide, Inc.* | 4 | 37 | ||||||
|
| |||||||
3,997 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 2.2% |
| |||||||
Advanced Energy Industries, Inc.* | 15 | 844 | ||||||
Alpha & Omega Semiconductor Ltd.* | 31 | 447 | ||||||
Cohu, Inc. | 34 | 821 | ||||||
Cypress Semiconductor Corp. | 71 | 1,105 | ||||||
Ichor Holdings Ltd.* | 23 | 497 | ||||||
Rudolph Technologies, Inc.* | 8 | 228 | ||||||
Sigma Designs, Inc.* | 19 | 118 | ||||||
SMART Global Holdings, Inc.* | 59 | 1,877 | ||||||
Ultra Clean Holdings, Inc.* | 61 | 1,017 | ||||||
|
| |||||||
6,954 | ||||||||
|
| |||||||
Software — 3.4% |
| |||||||
Carbon Black, Inc.* | 4 | 112 | ||||||
CommVault Systems, Inc.* | 7 | 481 | ||||||
Domo, Inc., Class B* | 26 | 699 | ||||||
Imperva, Inc.* | 19 | 931 | ||||||
MicroStrategy, Inc., Class A* | 3 | 364 | ||||||
Pegasystems, Inc. | 4 | 225 | ||||||
Pivotal Software, Inc., Class A* | 20 | 473 | ||||||
Pluralsight, Inc., Class A* | 54 | 1,325 | ||||||
QAD, Inc., Class A | 3 | 145 | ||||||
Qualys, Inc.* | 9 | 780 | ||||||
RingCentral, Inc., Class A* | 29 | 2,060 | ||||||
SailPoint Technologies Holding, Inc.* | 27 | 655 | ||||||
Smartsheet, Inc., Class A* | 32 | 826 | ||||||
Synchronoss Technologies, Inc.* | 60 | 371 | ||||||
TiVo Corp. | 53 | 712 | ||||||
Zscaler, Inc.* | 11 | 408 | ||||||
|
| |||||||
10,567 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Specialty Retail — 2.9% |
| |||||||
Abercrombie & Fitch Co., Class A | 24 | 575 | ||||||
Asbury Automotive Group, Inc.* | 3 | 178 | ||||||
Caleres, Inc. | 31 | 1,059 | ||||||
Children’s Place, Inc. (The) | 10 | 1,209 | ||||||
Conn’s, Inc.* | 11 | 356 | ||||||
Express, Inc.* | 21 | 190 | ||||||
Group 1 Automotive, Inc. | 8 | 485 | ||||||
Hudson Ltd., Class A (United Kingdom)* | 44 | 775 | ||||||
Office Depot, Inc. | 465 | 1,187 | ||||||
Party City Holdco, Inc.* | 27 | 416 | ||||||
RH* | 3 | 363 | ||||||
Tailored Brands, Inc. | 97 | 2,478 | ||||||
|
| |||||||
9,271 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.9% |
| |||||||
Deckers Outdoor Corp.* | 10 | 1,083 | ||||||
Fossil Group, Inc.* | 58 | 1,556 | ||||||
Perry Ellis International, Inc.* | 10 | 280 | ||||||
|
| |||||||
2,919 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.9% |
| |||||||
BankFinancial Corp. | 5 | 83 | ||||||
HomeStreet, Inc.* | 10 | 281 | ||||||
Meta Financial Group, Inc. | 8 | 808 | ||||||
MGIC Investment Corp.* | 45 | 483 | ||||||
OceanFirst Financial Corp. | 13 | 395 | ||||||
PennyMac Financial Services, Inc., Class A* | 10 | 193 | ||||||
Radian Group, Inc. | 10 | 156 | ||||||
Walker & Dunlop, Inc. | 10 | 549 | ||||||
|
| |||||||
2,948 | ||||||||
|
| |||||||
Tobacco — 0.1% |
| |||||||
Turning Point Brands, Inc. | 12 | 380 | ||||||
|
| |||||||
Trading Companies & Distributors — 1.0% |
| |||||||
Applied Industrial Technologies, Inc. | 10 | 673 | ||||||
GMS, Inc.* | 13 | 358 | ||||||
MRC Global, Inc.* | 76 | 1,645 | ||||||
Titan Machinery, Inc.* | 15 | 230 | ||||||
Veritiv Corp.* | 3 | 131 | ||||||
|
| |||||||
3,037 | ||||||||
|
| |||||||
Water Utilities — 0.0% (a) |
| |||||||
Consolidated Water Co. Ltd. (Cayman Islands) | 3 | 35 | ||||||
|
| |||||||
Total Common Stocks | 304,416 | |||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
Investments | NO. OF WARRANTS (000) | VALUE ($000) | ||||||
Warrants — 0.0% |
| |||||||
Consumer Finance — 0.0% |
| |||||||
Emergent Capital, Inc. expiring 10/1/2019, price 10.75*‡ | 2 | — | ||||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 3.7% |
| |||||||
Investment Companies — 3.7% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) (Cost $11,474) | 11,474 | 11,474 | ||||||
|
| |||||||
Total Investments — 100.7% |
| 315,890 | ||||||
Liabilities in Excess of |
| (2,070 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 313,820 | |||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||
Long Contracts |
| |||||||||||||||||
Russell 2000 E-Mini Index | 106 | 09/2018 | USD | 8,732 | (70 | ) | ||||||||||||
|
| |||||||||||||||||
(70 | ) | |||||||||||||||||
|
|
Abbreviations | ||
REIT | Real Estate Investment Trust | |
USD | United States Dollar | |
(a) | Amount rounds to less than 0.05% of net assets. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(c) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 27 |
Table of Contents
JPMorgan Small Cap Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 94.0% | ||||||||
Auto Components — 1.0% |
| |||||||
LCI Industries | 721 | 65,031 | ||||||
|
| |||||||
Banks — 10.4% |
| |||||||
Associated Banc-Corp. | 2,481 | 67,736 | ||||||
BankUnited, Inc. | 1,783 | 72,840 | ||||||
Cadence BanCorp | 1,348 | 38,909 | ||||||
Commerce Bancshares, Inc. | 823 | 53,268 | ||||||
First Financial Bancorp | 1,586 | 48,614 | ||||||
First Hawaiian, Inc. | 2,166 | 62,854 | ||||||
First Horizon National Corp. | 4,066 | 72,533 | ||||||
First Interstate BancSystem, Inc., Class A | 638 | 26,940 | ||||||
Glacier Bancorp, Inc. | 168 | 6,488 | ||||||
Great Western Bancorp, Inc. | 1,492 | 62,664 | ||||||
IBERIABANK Corp. | 899 | 68,142 | ||||||
Western Alliance Bancorp* | 1,122 | 63,512 | ||||||
Wintrust Financial Corp. | 788 | 68,582 | ||||||
|
| |||||||
713,082 | ||||||||
|
| |||||||
Building Products — 1.6% |
| |||||||
JELD-WEN Holding, Inc.* | 1,437 | 41,091 | ||||||
USG Corp.* | 1,591 | 68,605 | ||||||
|
| |||||||
109,696 | ||||||||
|
| |||||||
Capital Markets — 3.6% |
| |||||||
Eaton Vance Corp. | 904 | 47,198 | ||||||
FactSet Research Systems, Inc. | 270 | 53,562 | ||||||
Lazard Ltd., Class A | 963 | 47,107 | ||||||
Moelis & Co., Class A | 748 | 43,842 | ||||||
Morningstar, Inc. | 411 | 52,669 | ||||||
|
| |||||||
244,378 | ||||||||
|
| |||||||
Chemicals — 3.8% |
| |||||||
GCP Applied Technologies, Inc.* | 2,154 | 62,366 | ||||||
PQ Group Holdings, Inc.* | 3,570 | 64,267 | ||||||
Quaker Chemical Corp. | 412 | 63,801 | ||||||
Valvoline, Inc. | 3,249 | 70,081 | ||||||
|
| |||||||
260,515 | ||||||||
|
| |||||||
Commercial Services & Supplies — 5.0% |
| |||||||
Advanced Disposal Services, Inc.* | 1,819 | 45,064 | ||||||
Brady Corp., Class A | 2,393 | 92,268 | ||||||
BrightView Holdings, Inc.* | 1,100 | 24,134 | ||||||
Herman Miller, Inc. | 1,301 | 44,102 | ||||||
KAR Auction Services, Inc. | 1,471 | 80,606 | ||||||
MSA Safety, Inc. | 139 | 13,373 | ||||||
US Ecology, Inc. | 675 | 42,982 | ||||||
|
| |||||||
342,529 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Construction & Engineering — 0.6% |
| |||||||
Willscot Corp., Class A* | 2,771 | 41,013 | ||||||
|
| |||||||
Containers & Packaging — 2.7% |
| |||||||
AptarGroup, Inc. | 1,594 | 148,887 | ||||||
Crown Holdings, Inc.* | 844 | 37,790 | ||||||
|
| |||||||
186,677 | ||||||||
|
| |||||||
Distributors — 2.3% |
| |||||||
Pool Corp. | 1,052 | 159,448 | ||||||
|
| |||||||
Diversified Consumer Services — 0.8% |
| |||||||
ServiceMaster Global Holdings, Inc.* | 930 | 55,296 | ||||||
|
| |||||||
Electric Utilities — 1.2% |
| |||||||
Portland General Electric Co. | 1,996 | 85,341 | ||||||
|
| |||||||
Electrical Equipment — 0.8% |
| |||||||
Generac Holdings, Inc.* | 1,067 | 55,193 | ||||||
|
| |||||||
Energy Equipment & Services — 2.7% |
| |||||||
Core Laboratories NV | 790 | 99,674 | ||||||
Patterson-UTI Energy, Inc. | 4,543 | 81,773 | ||||||
|
| |||||||
181,447 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 5.1% |
| |||||||
CubeSmart | 1,311 | 42,226 | ||||||
EastGroup Properties, Inc. | 864 | 82,555 | ||||||
National Retail Properties, Inc. | 2,375 | 104,387 | ||||||
Outfront Media, Inc. | 2,859 | 55,612 | ||||||
RLJ Lodging Trust | 2,958 | 65,231 | ||||||
|
| |||||||
350,011 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.9% |
| |||||||
Performance Food Group Co.* | 3,613 | 132,591 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 3.0% |
| |||||||
ICU Medical, Inc.* | 301 | 88,277 | ||||||
West Pharmaceutical Services, Inc. | 1,142 | 113,430 | ||||||
|
| |||||||
201,707 | ||||||||
|
| |||||||
Health Care Providers & Services — 6.0% |
| |||||||
Encompass Health Corp. | 1,855 | 125,596 | ||||||
HealthEquity, Inc.* | 789 | 59,266 | ||||||
Magellan Health, Inc.* | 370 | 35,460 | ||||||
Molina Healthcare, Inc.* | 505 | 49,495 | ||||||
Premier, Inc., Class A* | 1,359 | 49,444 | ||||||
Tivity Health, Inc.* | 562 | 19,784 | ||||||
WellCare Health Plans, Inc.* | 286 | 70,392 | ||||||
|
| |||||||
409,437 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Health Care Technology — 1.9% |
| |||||||
Cotiviti Holdings, Inc.* | 1,410 | 62,204 | ||||||
Medidata Solutions, Inc.* | 822 | 66,256 | ||||||
|
| |||||||
128,460 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.4% |
| |||||||
Monarch Casino & Resort, Inc.* | 611 | 26,898 | ||||||
Papa John’s International, Inc. | 1,139 | 57,760 | ||||||
Zoe’s Kitchen, Inc.* | 1,089 | 10,624 | ||||||
|
| |||||||
95,282 | ||||||||
|
| |||||||
Household Products — 0.8% |
| |||||||
Spectrum Brands Holdings, Inc. | 691 | 56,403 | ||||||
|
| |||||||
Insurance — 1.6% |
| |||||||
Kinsale Capital Group, Inc. | 641 | 35,174 | ||||||
ProAssurance Corp. | 1,215 | 43,055 | ||||||
RLI Corp. | 504 | 33,373 | ||||||
|
| |||||||
111,602 | ||||||||
|
| |||||||
Internet Software & Services — 4.0% |
| |||||||
Cision Ltd.* | 4,137 | 61,844 | ||||||
GrubHub, Inc.* | 783 | 82,171 | ||||||
Instructure, Inc.* | 978 | 41,595 | ||||||
Q2 Holdings, Inc.* | 1,549 | 88,361 | ||||||
|
| |||||||
273,971 | ||||||||
|
| |||||||
IT Services — 0.8% |
| |||||||
CoreLogic, Inc.* | 1,005 | 52,165 | ||||||
|
| |||||||
Leisure Products — 2.7% |
| |||||||
Acushnet Holdings Corp. | 2,763 | 67,573 | ||||||
Brunswick Corp. | 1,554 | 100,212 | ||||||
Malibu Boats, Inc., Class A* | 408 | 17,096 | ||||||
|
| |||||||
184,881 | ||||||||
|
| |||||||
Machinery — 7.8% |
| |||||||
Allison Transmission Holdings, Inc. | 976 | 39,509 | ||||||
Altra Industrial Motion Corp. | 1,120 | 48,291 | ||||||
Douglas Dynamics, Inc. | 996 | 47,802 | ||||||
Evoqua Water Technologies Corp.* | 1,858 | 38,099 | ||||||
Gates Industrial Corp. plc* | 1,803 | 29,336 | ||||||
Lincoln Electric Holdings, Inc. | 644 | 56,542 | ||||||
Proto Labs, Inc.* | 298 | 35,457 | ||||||
RBC Bearings, Inc.* | 723 | 93,070 | ||||||
Toro Co. (The) | 2,432 | 146,538 | ||||||
|
| |||||||
534,644 | ||||||||
|
| |||||||
Media — 2.1% |
| |||||||
Cinemark Holdings, Inc. | 2,484 | 87,127 | ||||||
Emerald Expositions Events, Inc. | 267 | 5,506 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Media — continued |
| |||||||
EW Scripps Co. (The), Class A | 3,643 | 48,781 | ||||||
|
| |||||||
141,414 | ||||||||
|
| |||||||
Multiline Retail — 0.4% |
| |||||||
BJ’s Wholesale Club Holdings, Inc.* | 1,237 | 29,250 | ||||||
|
| |||||||
Multi-Utilities — 1.1% |
| |||||||
NorthWestern Corp. | 1,331 | 76,202 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.2% |
| |||||||
SRC Energy, Inc.* | 7,312 | 80,580 | ||||||
|
| |||||||
Pharmaceuticals — 2.3% |
| |||||||
Catalent, Inc.* | 2,509 | 105,119 | ||||||
Prestige Brands Holdings, Inc.* | 1,435 | 55,085 | ||||||
|
| |||||||
160,204 | ||||||||
|
| |||||||
Real Estate Management & Development — 1.3% |
| |||||||
HFF, Inc., Class A | 1,381 | 47,422 | ||||||
Realogy Holdings Corp. | 1,807 | 41,207 | ||||||
|
| |||||||
88,629 | ||||||||
|
| |||||||
Road & Rail — 1.7% |
| |||||||
Knight-Swift Transportation Holdings, Inc. | 1,475 | 56,364 | ||||||
Landstar System, Inc. | 538 | 58,781 | ||||||
|
| |||||||
115,145 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 1.6% |
| |||||||
Cabot Microelectronics Corp. | 998 | 107,302 | ||||||
|
| |||||||
Software — 6.8% |
| |||||||
Aspen Technology, Inc.* | 822 | 76,213 | ||||||
Blackbaud, Inc. | 650 | 66,622 | ||||||
Guidewire Software, Inc.* | 752 | 66,732 | ||||||
Manhattan Associates, Inc.* | 1,120 | 52,665 | ||||||
MicroStrategy, Inc., Class A* | 252 | 32,135 | ||||||
SailPoint Technologies Holding, Inc.* | 1,248 | 30,632 | ||||||
Tableau Software, Inc., Class A* | 672 | 65,657 | ||||||
Tyler Technologies, Inc.* | 318 | 70,616 | ||||||
|
| |||||||
461,272 | ||||||||
|
| |||||||
Specialty Retail — 0.1% |
| |||||||
Chico’s FAS, Inc. | 759 | 6,180 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.0% |
| |||||||
Carter’s, Inc. | 601 | 65,146 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.9% |
| |||||||
Applied Industrial Technologies, Inc. | 857 | 60,124 | ||||||
|
| |||||||
Total Common Stocks | 6,422,248 | |||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 29 |
Table of Contents
JPMorgan Small Cap Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Exchange Traded Funds — 1.3% |
| |||||||
U.S. Equity — 1.3% | ||||||||
iShares Russell 2000 ETF | 539 | 88,296 | ||||||
|
| |||||||
Short-Term Investments — 5.2% | ||||||||
Investment Companies — 5.2% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) (Cost $354,263) | 354,263 | 354,263 | ||||||
|
| |||||||
Total Investments — 100.5% | 6,864,807 | |||||||
Liabilities in Excess of | (36,568 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 6,828,239 | ||||||
|
|
Percentages indicated are based on net assets.
Abbreviations
ETF | Exchange Traded Fund |
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
30 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.3% | ||||||||
Aerospace & Defense — 1.9% | ||||||||
HEICO Corp. | 341 | 24,866 | ||||||
Hexcel Corp. | 262 | 17,398 | ||||||
|
| |||||||
42,264 | ||||||||
|
| |||||||
Automobiles — 0.6% |
| |||||||
Winnebago Industries, Inc. | 340 | 13,808 | ||||||
|
| |||||||
Banks — 2.0% |
| |||||||
Bank of the Ozarks | 229 | 10,326 | ||||||
Signature Bank* | 53 | 6,802 | ||||||
Texas Capital Bancshares, Inc.* | 303 | 27,727 | ||||||
|
| |||||||
44,855 | ||||||||
|
| |||||||
Biotechnology — 10.3% |
| |||||||
ACADIA Pharmaceuticals, Inc.* | 225 | 3,438 | ||||||
Adverum Biotechnologies, Inc.* | 1,380 | 7,312 | ||||||
Atara Biotherapeutics, Inc.* | 327 | 12,002 | ||||||
Avrobio, Inc.* | 190 | 5,432 | ||||||
Bellicum Pharmaceuticals, Inc.* | 940 | 6,941 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.* | 446 | 17,608 | ||||||
Clementia Pharmaceuticals, Inc. (Canada)* | 516 | 6,791 | ||||||
Clovis Oncology, Inc.* | 93 | 4,216 | ||||||
Coherus Biosciences, Inc.* | 468 | 6,551 | ||||||
Exact Sciences Corp.* | 163 | 9,739 | ||||||
FibroGen, Inc.* | 322 | 20,127 | ||||||
G1 Therapeutics, Inc.* | 265 | 11,514 | ||||||
Global Blood Therapeutics, Inc.* | 96 | 4,323 | ||||||
Halozyme Therapeutics, Inc.* | 1,020 | 17,202 | ||||||
Homology Medicines, Inc.* | 721 | 14,699 | ||||||
Insmed, Inc.* | 143 | 3,370 | ||||||
Neurocrine Biosciences, Inc.* | 120 | 11,757 | ||||||
Portola Pharmaceuticals, Inc.* | 198 | 7,477 | ||||||
REGENXBIO, Inc.* | 308 | 22,095 | ||||||
Sage Therapeutics, Inc.* | 69 | 10,877 | ||||||
Spark Therapeutics, Inc.* | 260 | 21,540 | ||||||
|
| |||||||
225,011 | ||||||||
|
| |||||||
Building Products — 4.3% |
| |||||||
Advanced Drainage Systems, Inc. | 873 | 24,933 | ||||||
Lennox International, Inc. | 111 | 22,253 | ||||||
Masonite International Corp.* | 225 | 16,182 | ||||||
Trex Co., Inc.* | 505 | 31,636 | ||||||
|
| |||||||
95,004 | ||||||||
|
| |||||||
Capital Markets — 2.4% |
| |||||||
Evercore, Inc., Class A | 313 | 33,006 | ||||||
Financial Engines, Inc. | 110 | 4,919 | ||||||
PennantPark Investment Corp. | 1,361 | 9,536 | ||||||
WisdomTree Investments, Inc. | 478 | 4,339 | ||||||
|
| |||||||
51,800 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Chemicals — 1.1% |
| |||||||
Ferro Corp.* | 1,208 | 25,190 | ||||||
|
| |||||||
Commercial Services & Supplies — 1.5% |
| |||||||
Advanced Disposal Services, Inc.* | 1,357 | 33,621 | ||||||
|
| |||||||
Communications Equipment — 1.2% |
| |||||||
Ciena Corp.* | 415 | 11,003 | ||||||
Quantenna Communications, Inc.* | 996 | 15,479 | ||||||
|
| |||||||
26,482 | ||||||||
|
| |||||||
Construction Materials — 1.8% |
| |||||||
Eagle Materials, Inc. | 139 | 14,558 | ||||||
Summit Materials, Inc., Class A* | 970 | 25,456 | ||||||
|
| |||||||
40,014 | ||||||||
|
| |||||||
Distributors — 1.0% |
| |||||||
Pool Corp. | 140 | 21,210 | ||||||
|
| |||||||
Diversified Consumer Services — 1.3% |
| |||||||
Bright Horizons Family Solutions, Inc.* | 273 | 28,010 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 1.3% |
| |||||||
Littelfuse, Inc. | 121 | 27,573 | ||||||
|
| |||||||
Energy Equipment & Services — 0.4% |
| |||||||
Forum Energy Technologies, Inc.* | 633 | 7,821 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 1.0% |
| |||||||
CubeSmart | 316 | 10,176 | ||||||
Highwoods Properties, Inc. | 220 | 11,150 | ||||||
|
| |||||||
21,326 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.8% |
| |||||||
Performance Food Group Co.* | 1,063 | 39,027 | ||||||
|
| |||||||
Food Products — 0.9% |
| |||||||
Freshpet, Inc.* | 690 | 18,931 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 4.5% |
| |||||||
GenMark Diagnostics, Inc.* | 1,429 | 9,115 | ||||||
Insulet Corp.* | 232 | 19,855 | ||||||
iRhythm Technologies, Inc.* | 265 | 21,511 | ||||||
K2M Group Holdings, Inc.* | 790 | 17,784 | ||||||
Nevro Corp.* | 280 | 22,351 | ||||||
TransEnterix, Inc.* | 1,690 | 7,368 | ||||||
|
| |||||||
97,984 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.6% |
| |||||||
Acadia Healthcare Co., Inc.* | 465 | 19,015 | ||||||
Amedisys, Inc.* | 255 | 21,771 | ||||||
WellCare Health Plans, Inc.* | 61 | 15,098 | ||||||
|
| |||||||
55,884 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 31 |
Table of Contents
JPMorgan Small Cap Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Health Care Technology — 2.6% |
| |||||||
Evolent Health, Inc., Class A* | 992 | 20,884 | ||||||
Teladoc, Inc.* | 629 | 36,495 | ||||||
|
| |||||||
57,379 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.2% |
| |||||||
Boyd Gaming Corp. | 1,016 | 35,217 | ||||||
Red Rock Resorts, Inc., Class A | 327 | 10,959 | ||||||
Texas Roadhouse, Inc. | 364 | 23,863 | ||||||
|
| |||||||
70,039 | ||||||||
|
| |||||||
Household Durables — 0.7% |
| |||||||
TRI Pointe Group, Inc.* | 900 | 14,717 | ||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.6% |
| |||||||
Groupon, Inc.* | 3,985 | 17,135 | ||||||
Wayfair, Inc., Class A* | 158 | 18,724 | ||||||
|
| |||||||
35,859 | ||||||||
|
| |||||||
Internet Software & Services — 6.8% |
| |||||||
2U, Inc.* | 262 | 21,880 | ||||||
Cloudera, Inc.* | 1,165 | 15,886 | ||||||
DocuSign, Inc.* | 174 | 9,211 | ||||||
Envestnet, Inc.* | 634 | 34,812 | ||||||
GrubHub, Inc.* | 87 | 9,112 | ||||||
Instructure, Inc.* | 513 | 21,841 | ||||||
Nutanix, Inc., Class A* | 256 | 13,203 | ||||||
Okta, Inc.* | 469 | 23,611 | ||||||
|
| |||||||
149,556 | ||||||||
|
| |||||||
Machinery — 4.6% |
| |||||||
Evoqua Water Technologies Corp.* | 693 | 14,201 | ||||||
Graco, Inc. | 438 | 19,807 | ||||||
ITT, Inc. | 425 | 22,239 | ||||||
John Bean Technologies Corp. | 263 | 23,377 | ||||||
Oshkosh Corp. | 301 | 21,136 | ||||||
|
| |||||||
100,760 | ||||||||
|
| |||||||
Marine — 0.8% |
| |||||||
Kirby Corp.* | 218 | 18,230 | ||||||
|
| |||||||
Media — 1.1% |
| |||||||
World Wrestling Entertainment, Inc., Class A | 331 | 24,132 | ||||||
|
| |||||||
Multiline Retail — 1.6% |
| |||||||
Ollie’s Bargain Outlet Holdings, Inc.* | 498 | 36,085 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.3% |
| |||||||
Centennial Resource Development, Inc., Class A* | 403 | 7,285 | ||||||
Jagged Peak Energy, Inc.* | 915 | 11,918 | ||||||
RSP Permian, Inc.* | 199 | 8,739 | ||||||
|
| |||||||
27,942 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Pharmaceuticals — 4.0% |
| |||||||
Horizon Pharma plc* | 1,147 | 19,003 | ||||||
Nektar Therapeutics* | 161 | 7,839 | ||||||
Optinose, Inc.* | 629 | 17,603 | ||||||
Revance Therapeutics, Inc.* | 565 | 15,508 | ||||||
TherapeuticsMD, Inc.* | 2,753 | 17,176 | ||||||
Tricida, Inc.* | 343 | 10,255 | ||||||
|
| |||||||
87,384 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.7% |
| |||||||
RE/MAX Holdings, Inc., Class A | 276 | 14,493 | ||||||
|
| |||||||
Road & Rail — 1.6% |
| |||||||
Saia, Inc.* | 424 | 34,288 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 5.1% |
| |||||||
Entegris, Inc. | 1,020 | 34,592 | ||||||
Inphi Corp.* | 846 | 27,579 | ||||||
MKS Instruments, Inc. | 251 | 24,030 | ||||||
Monolithic Power Systems, Inc. | 190 | 25,456 | ||||||
|
| |||||||
111,657 | ||||||||
|
| |||||||
Software — 10.4% |
| |||||||
Domo, Inc., Class B* | 277 | 7,560 | ||||||
Guidewire Software, Inc.* | 117 | 10,425 | ||||||
HubSpot, Inc.* | 255 | 31,962 | ||||||
Paycom Software, Inc.* | 253 | 25,031 | ||||||
Pluralsight, Inc., Class A* | 616 | 15,057 | ||||||
Proofpoint, Inc.* | 215 | 24,801 | ||||||
RingCentral, Inc., Class A* | 340 | 23,884 | ||||||
SailPoint Technologies Holding, Inc.* | 1,059 | 25,993 | ||||||
Smartsheet, Inc., Class A* | 432 | 11,222 | ||||||
Tyler Technologies, Inc.* | 71 | 15,686 | ||||||
Zendesk, Inc.* | 484 | 26,350 | ||||||
Zscaler, Inc.* | 292 | 10,445 | ||||||
|
| |||||||
228,416 | ||||||||
|
| |||||||
Specialty Retail — 5.0% |
| |||||||
Burlington Stores, Inc.* | 68 | 10,205 | ||||||
Floor & Decor Holdings, Inc., Class A* | 478 | 23,559 | ||||||
Hudson Ltd., Class A (United Kingdom)* | 1,353 | 23,656 | ||||||
Lithia Motors, Inc., Class A | 253 | 23,949 | ||||||
National Vision Holdings, Inc.* | 797 | 29,158 | ||||||
|
| |||||||
110,527 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.4% |
| |||||||
Wolverine World Wide, Inc. | 877 | 30,485 | ||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.7% |
| |||||||
BofI Holding, Inc.* | 378 | 15,456 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
32 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Trading Companies & Distributors — 3.2% |
| |||||||
Applied Industrial Technologies, Inc. | 269 | 18,885 | ||||||
H&E Equipment Services, Inc. | 482 | 18,112 | ||||||
Rush Enterprises, Inc., Class A* | 543 | 23,545 | ||||||
SiteOne Landscape Supply, Inc.* | 103 | 8,657 | ||||||
|
| |||||||
69,199 | ||||||||
|
| |||||||
Total Common Stocks | 2,152,419 | |||||||
|
| |||||||
Short-Term Investments — 2.4% | ||||||||
Investment Companies — 2.4% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) (Cost $52,237) | 52,237 | 52,237 | ||||||
|
| |||||||
Total Investments — 100.7% | 2,204,656 | |||||||
Liabilities in Excess of | (14,744 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 2,189,912 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 33 |
Table of Contents
JPMorgan Small Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 99.4% | ||||||||
Aerospace & Defense — 0.8% | ||||||||
Curtiss-Wright Corp. | 76 | 8,998 | ||||||
Moog, Inc., Class A | 81 | 6,299 | ||||||
|
| |||||||
15,297 | ||||||||
|
| |||||||
Auto Components — 0.3% | ||||||||
Cooper-Standard Holdings, Inc.* | 7 | 967 | ||||||
Stoneridge, Inc.* | 145 | 5,106 | ||||||
|
| |||||||
6,073 | ||||||||
|
| |||||||
Banks — 16.4% | ||||||||
1st Source Corp. | 102 | 5,434 | ||||||
American National Bankshares, Inc. | 6 | 236 | ||||||
BancFirst Corp. | 121 | 7,151 | ||||||
BancorpSouth Bank | 352 | 11,585 | ||||||
Bank of Hawaii Corp. | 154 | 12,838 | ||||||
Banner Corp. | 143 | 8,599 | ||||||
Bryn Mawr Bank Corp. | 29 | 1,347 | ||||||
Cadence BanCorp | 16 | 471 | ||||||
Cathay General Bancorp | 194 | 7,859 | ||||||
Central Pacific Financial Corp. | 430 | 12,322 | ||||||
Central Valley Community Bancorp | 23 | 480 | ||||||
Century Bancorp, Inc., Class A | 8 | 604 | ||||||
Citizens & Northern Corp. | 18 | 468 | ||||||
City Holding Co. | 136 | 10,246 | ||||||
Columbia Banking System, Inc. | 99 | 4,037 | ||||||
Community Bank System, Inc. | 128 | 7,549 | ||||||
Community Trust Bancorp, Inc. | 115 | 5,747 | ||||||
East West Bancorp, Inc. | 12 | 759 | ||||||
FCB Financial Holdings, Inc., Class A* | 232 | 13,612 | ||||||
Financial Institutions, Inc. | 65 | 2,152 | ||||||
First Bancorp | 29 | 1,166 | ||||||
First BanCorp (Puerto Rico)* | 1,140 | 8,719 | ||||||
First Citizens BancShares, Inc., Class A | 8 | 3,186 | ||||||
First Commonwealth Financial Corp. | 1,143 | 17,731 | ||||||
First Community Bancshares, Inc. | 57 | 1,810 | ||||||
First Financial Bancorp | 287 | 8,804 | ||||||
First Financial Bankshares, Inc. | 71 | 3,624 | ||||||
First Financial Corp. | 20 | 884 | ||||||
First Hawaiian, Inc. | 91 | 2,635 | ||||||
First Interstate BancSystem, Inc., Class A | 95 | 4,007 | ||||||
Flushing Financial Corp. | 138 | 3,589 | ||||||
Glacier Bancorp, Inc. | 200 | 7,717 | ||||||
Great Southern Bancorp, Inc. | 35 | 1,985 | ||||||
Great Western Bancorp, Inc. | 98 | 4,132 | ||||||
Hancock Whitney Corp. | 24 | 1,139 | ||||||
Hilltop Holdings, Inc. | 229 | 5,058 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Banks — continued | ||||||||
Hope Bancorp, Inc. | 430 | 7,662 | ||||||
Independent Bank Corp. | 52 | 1,316 | ||||||
Investors Bancorp, Inc. | 916 | 11,717 | ||||||
Lakeland Financial Corp. | 39 | 1,894 | ||||||
Mercantile Bank Corp. | 18 | 658 | ||||||
OFG Bancorp (Puerto Rico) | 530 | 7,445 | ||||||
PacWest Bancorp | 140 | 6,904 | ||||||
Preferred Bank | 17 | 1,020 | ||||||
Republic Bancorp, Inc., Class A | 18 | 833 | ||||||
S&T Bancorp, Inc. | 21 | 891 | ||||||
South State Corp. | 7 | 591 | ||||||
State Bank Financial Corp. | 54 | 1,807 | ||||||
Stock Yards Bancorp, Inc. | 18 | 679 | ||||||
Tompkins Financial Corp. | 21 | 1,795 | ||||||
TriState Capital Holdings, Inc.* | 24 | 626 | ||||||
Trustmark Corp. | 334 | 10,889 | ||||||
UMB Financial Corp. | 210 | 15,970 | ||||||
Umpqua Holdings Corp. | 555 | 12,544 | ||||||
Union Bankshares Corp. | 347 | 13,502 | ||||||
Washington Trust Bancorp, Inc. | 36 | 2,080 | ||||||
Webster Financial Corp. | 105 | 6,695 | ||||||
West Bancorp, Inc. | 12 | 306 | ||||||
Westamerica Bancorp | 324 | 18,287 | ||||||
|
| |||||||
315,793 | ||||||||
|
| |||||||
Biotechnology — 2.2% | ||||||||
Acorda Therapeutics, Inc.* | 31 | 896 | ||||||
Adamas Pharmaceuticals, Inc.* | 100 | 2,573 | ||||||
AMAG Pharmaceuticals, Inc.* | 278 | 5,411 | ||||||
Arcus Biosciences, Inc.* | 165 | 2,021 | ||||||
Ardelyx, Inc.* | 296 | 1,094 | ||||||
Arsanis, Inc.* | 46 | 167 | ||||||
Bluebird Bio, Inc.* | 15 | 2,307 | ||||||
Deciphera Pharmaceuticals, Inc.* | 123 | 4,832 | ||||||
Enanta Pharmaceuticals, Inc.* | 41 | 4,787 | ||||||
Epizyme, Inc.* | 79 | 1,065 | ||||||
Fate Therapeutics, Inc.* | 285 | 3,235 | ||||||
Five Prime Therapeutics, Inc.* | 151 | 2,394 | ||||||
Iovance Biotherapeutics, Inc.* | 271 | 3,470 | ||||||
MacroGenics, Inc.* | 8 | 155 | ||||||
Radius Health, Inc.* | 35 | 1,029 | ||||||
Rigel Pharmaceuticals, Inc.* | 327 | 925 | ||||||
Sarepta Therapeutics, Inc.* | 17 | 2,194 | ||||||
Syndax Pharmaceuticals, Inc.* | 166 | 1,165 | ||||||
Tocagen, Inc.* | 242 | 2,256 | ||||||
|
| |||||||
41,976 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
34 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Building Products — 0.1% | ||||||||
Gibraltar Industries, Inc.* | 59 | 2,212 | ||||||
|
| |||||||
Capital Markets — 1.0% | ||||||||
Arlington Asset Investment Corp., Class A | 41 | 421 | ||||||
Associated Capital Group, Inc., Class A | 11 | 398 | ||||||
GAMCO Investors, Inc., Class A | 18 | 476 | ||||||
Oppenheimer Holdings, Inc., Class A | 65 | 1,831 | ||||||
Stifel Financial Corp. | 153 | 7,984 | ||||||
Virtus Investment Partners, Inc. | 60 | 7,677 | ||||||
|
| |||||||
18,787 | ||||||||
|
| |||||||
Chemicals — 1.1% |
| |||||||
FutureFuel Corp. | 159 | 2,221 | ||||||
Minerals Technologies, Inc. | 99 | 7,422 | ||||||
Rayonier Advanced Materials, Inc. | 75 | 1,278 | ||||||
Trinseo SA | 122 | 8,677 | ||||||
Tronox Ltd., Class A | 70 | 1,374 | ||||||
|
| |||||||
20,972 | ||||||||
|
| |||||||
Commercial Services & Supplies — 2.0% | ||||||||
ACCO Brands Corp. | 1,367 | 18,930 | ||||||
ARC Document Solutions, Inc.* | 251 | 444 | ||||||
BrightView Holdings, Inc.* | 55 | 1,203 | ||||||
Ennis, Inc. | 78 | 1,596 | ||||||
Essendant, Inc. | 357 | 4,721 | ||||||
Quad/Graphics, Inc. | 323 | 6,728 | ||||||
VSE Corp. | 112 | 5,361 | ||||||
|
| |||||||
38,983 | ||||||||
|
| |||||||
Communications Equipment — 1.9% |
| |||||||
Ciena Corp.* | 16 | 411 | ||||||
Comtech Telecommunications Corp. | 33 | 1,065 | ||||||
Infinera Corp.* | 116 | 1,155 | ||||||
InterDigital, Inc. | 63 | 5,121 | ||||||
NETGEAR, Inc.* | 58 | 3,631 | ||||||
NetScout Systems, Inc.* | 838 | 24,874 | ||||||
Ribbon Communications, Inc.* | 76 | 540 | ||||||
|
| |||||||
36,797 | ||||||||
|
| |||||||
Construction & Engineering — 1.6% | ||||||||
Argan, Inc. | 34 | 1,372 | ||||||
EMCOR Group, Inc. | 253 | 19,304 | ||||||
KBR, Inc. | 223 | 3,996 | ||||||
MYR Group, Inc.* | 163 | 5,776 | ||||||
|
| |||||||
30,448 | ||||||||
|
| |||||||
Consumer Finance — 0.3% | ||||||||
Nelnet, Inc., Class A | 85 | 4,982 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Containers & Packaging — 0.3% | ||||||||
Graphic Packaging Holding Co. | 345 | 4,999 | ||||||
Myers Industries, Inc. | 51 | 987 | ||||||
|
| |||||||
5,986 | ||||||||
|
| |||||||
Distributors — 0.1% | ||||||||
Funko, Inc., Class A* | 210 | 2,635 | ||||||
Weyco Group, Inc. | 6 | 226 | ||||||
|
| |||||||
2,861 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.8% | ||||||||
Houghton Mifflin Harcourt Co.* | 824 | 6,303 | ||||||
K12, Inc.* | 250 | 4,094 | ||||||
Regis Corp.* | 244 | 4,039 | ||||||
|
| |||||||
14,436 | ||||||||
|
| |||||||
Diversified Financial Services — 0.3% | ||||||||
Cannae Holdings, Inc.* | 211 | 3,922 | ||||||
Marlin Business Services Corp. | 30 | 907 | ||||||
|
| |||||||
4,829 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.5% |
| |||||||
Frontier Communications Corp. | 1,018 | 5,457 | ||||||
Windstream Holdings, Inc.* | 717 | 3,776 | ||||||
|
| |||||||
9,233 | ||||||||
|
| |||||||
Electric Utilities — 1.5% | ||||||||
El Paso Electric Co. | 242 | 14,296 | ||||||
Portland General Electric Co. | 310 | 13,260 | ||||||
Spark Energy, Inc., Class A | 88 | 860 | ||||||
|
| |||||||
28,416 | ||||||||
|
| |||||||
Electrical Equipment — 0.2% | ||||||||
Powell Industries, Inc. | 115 | 3,998 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 4.0% |
| |||||||
Bel Fuse, Inc., Class B | 190 | 3,967 | ||||||
Benchmark Electronics, Inc. | 590 | 17,187 | ||||||
Fabrinet (Thailand)* | 92 | 3,394 | ||||||
Insight Enterprises, Inc.* | 86 | 4,183 | ||||||
OSI Systems, Inc.* | 69 | 5,297 | ||||||
Tech Data Corp.* | 206 | 16,917 | ||||||
TTM Technologies, Inc.* | 351 | 6,187 | ||||||
Vishay Intertechnology, Inc. | 852 | 19,755 | ||||||
|
| |||||||
76,887 | ||||||||
|
| |||||||
Energy Equipment & Services — 1.6% | ||||||||
Archrock, Inc. | 742 | 8,899 | ||||||
FTS International, Inc.* | 136 | 1,931 | ||||||
Natural Gas Services Group, Inc.* | 42 | 984 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 35 |
Table of Contents
JPMorgan Small Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Energy Equipment & Services — continued | ||||||||
Noble Corp. plc* | 1,552 | 9,826 | ||||||
Unit Corp.* | 171 | 4,368 | ||||||
US Silica Holdings, Inc. | 153 | 3,933 | ||||||
|
| |||||||
29,941 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 10.4% |
| |||||||
Alexander & Baldwin, Inc. | 187 | 4,401 | ||||||
American Assets Trust, Inc. | 159 | 6,103 | ||||||
Apartment Investment & Management Co., Class A | 185 | 7,813 | ||||||
Ashford Hospitality Trust, Inc. | 839 | 6,798 | ||||||
Bluerock Residential Growth REIT, Inc. | 43 | 382 | ||||||
Braemar Hotels & Resorts, Inc. | 277 | 3,160 | ||||||
CBL & Associates Properties, Inc. | 339 | 1,891 | ||||||
Cedar Realty Trust, Inc. | 257 | 1,215 | ||||||
CorEnergy Infrastructure Trust, Inc. | 71 | 2,670 | ||||||
CoreSite Realty Corp. | 78 | 8,622 | ||||||
DCT Industrial Trust, Inc. | 173 | 11,539 | ||||||
DiamondRock Hospitality Co. | 1,028 | 12,622 | ||||||
EPR Properties | 32 | 2,067 | ||||||
First Industrial Realty Trust, Inc. | 118 | 3,937 | ||||||
Franklin Street Properties Corp. | 311 | 2,661 | ||||||
GEO Group, Inc. (The) | 463 | 12,753 | ||||||
Getty Realty Corp. | 137 | 3,858 | ||||||
Gladstone Commercial Corp. | 69 | 1,317 | ||||||
Government Properties Income Trust | 179 | 2,832 | ||||||
Hersha Hospitality Trust | 159 | 3,404 | ||||||
Highwoods Properties, Inc. | 28 | 1,415 | ||||||
Hospitality Properties Trust | 149 | 4,272 | ||||||
InfraREIT, Inc. | 378 | 8,387 | ||||||
Kite Realty Group Trust | 114 | 1,947 | ||||||
LaSalle Hotel Properties | 74 | 2,543 | ||||||
LTC Properties, Inc. | 93 | 3,953 | ||||||
Mack-Cali Realty Corp. | 398 | 8,065 | ||||||
Pebblebrook Hotel Trust | 312 | 12,113 | ||||||
Pennsylvania REIT | 417 | 4,578 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 481 | 9,576 | ||||||
PotlatchDeltic Corp. | 35 | 1,795 | ||||||
Preferred Apartment Communities, Inc., Class A | 186 | 3,162 | ||||||
PS Business Parks, Inc. | 50 | 6,374 | ||||||
RLJ Lodging Trust | 393 | 8,670 | ||||||
Saul Centers, Inc. | 11 | 595 | ||||||
Select Income | 68 | 1,530 | ||||||
STAG Industrial, Inc. | 66 | 1,794 | ||||||
Sunstone Hotel Investors, Inc. | 472 | 7,840 | ||||||
Taubman Centers, Inc. | 13 | 752 | ||||||
Urstadt Biddle Properties, Inc., Class A | 73 | 1,650 | ||||||
Washington | 9 | 261 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Equity Real Estate Investment Trusts (REITs) — continued |
| |||||||
Washington Prime Group, Inc. | 613 | 4,975 | ||||||
Xenia Hotels & Resorts, Inc. | 186 | 4,524 | ||||||
|
| |||||||
200,816 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.0% (a) | ||||||||
United Natural Foods, Inc.* | 7 | 299 | ||||||
|
| |||||||
Food Products — 0.5% |
| |||||||
Darling Ingredients, Inc.* | 495 | 9,831 | ||||||
Dean Foods Co. | 55 | 579 | ||||||
|
| |||||||
10,410 | ||||||||
|
| |||||||
Gas Utilities — 1.6% | ||||||||
Northwest Natural Gas Co. | 210 | 13,385 | ||||||
Southwest Gas Holdings, Inc. | 141 | 10,777 | ||||||
Spire, Inc. | 85 | 6,012 | ||||||
|
| |||||||
30,174 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 0.4% | ||||||||
AngioDynamics, Inc.* | 213 | 4,739 | ||||||
FONAR Corp.* | 37 | 990 | ||||||
Meridian Bioscience, Inc. | 178 | 2,829 | ||||||
|
| |||||||
8,558 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.8% | ||||||||
American Renal Associates Holdings, Inc.* | 316 | 4,988 | ||||||
Community Health Systems, Inc.* | 1,593 | 5,290 | ||||||
Cross Country Healthcare, Inc.* | 65 | 735 | ||||||
LifePoint Health, Inc.* | 238 | 11,595 | ||||||
Molina Healthcare, Inc.* | 84 | 8,256 | ||||||
Owens & Minor, Inc. | 460 | 7,693 | ||||||
Patterson Cos., Inc. | 130 | 2,938 | ||||||
Tivity Health, Inc.* | 43 | 1,521 | ||||||
Triple-S Management Corp., Class B (Puerto Rico)* | 180 | 7,027 | ||||||
WellCare Health Plans, Inc.* | 15 | 3,570 | ||||||
|
| |||||||
53,613 | ||||||||
|
| |||||||
Health Care Technology — 0.2% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 399 | 4,784 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.5% |
| |||||||
Brinker International, Inc. | 181 | 8,635 | ||||||
Penn National Gaming, Inc.* | 318 | 10,672 | ||||||
Pinnacle Entertainment, Inc.* | 601 | 20,278 | ||||||
Ruth’s Hospitality Group, Inc. | 256 | 7,191 | ||||||
Speedway Motorsports, Inc. | 38 | 663 | ||||||
|
| |||||||
47,439 | ||||||||
|
| |||||||
Household Durables — 2.3% | ||||||||
AV Homes, Inc.* | 28 | 593 | ||||||
Beazer Homes USA, Inc.* | 582 | 8,580 | ||||||
Hamilton Beach Brands Holding Co., Class A | 93 | 2,696 |
SEE NOTES TO FINANCIAL STATEMENTS.
36 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Household Durables — continued | ||||||||
Helen of Troy Ltd.* | 26 | 2,589 | ||||||
Hovnanian Enterprises, Inc., Class A* | 2,409 | 3,926 | ||||||
KB Home | 737 | 20,078 | ||||||
TRI Pointe Group, Inc.* | 377 | 6,168 | ||||||
|
| |||||||
44,630 | ||||||||
|
| |||||||
Household Products — 0.2% | ||||||||
Central Garden & Pet Co., Class A* | 98 | 3,966 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 1.3% |
| |||||||
Atlantic Power Corp.* | 1,980 | 4,357 | ||||||
Pattern Energy Group, Inc., Class A | 260 | 4,877 | ||||||
Vistra Energy Corp.* | 693 | 16,388 | ||||||
|
| |||||||
25,622 | ||||||||
|
| |||||||
Insurance — 4.1% | ||||||||
Argo Group International Holdings Ltd. | 71 | 4,100 | ||||||
CNO Financial Group, Inc. | 768 | 14,619 | ||||||
Global Indemnity Ltd. (Cayman Islands) | 11 | 425 | ||||||
Hallmark Financial Services, Inc.* | 69 | 686 | ||||||
HCI Group, Inc. | 32 | 1,318 | ||||||
Heritage Insurance Holdings, Inc. | 564 | 9,408 | ||||||
Horace Mann Educators Corp. | 97 | 4,317 | ||||||
Infinity Property & Casualty Corp. | 8 | 1,181 | ||||||
MBIA, Inc.* | 1,219 | 11,022 | ||||||
Navigators Group, Inc. (The) | 55 | 3,118 | ||||||
Primerica, Inc. | 178 | 17,749 | ||||||
ProAssurance Corp. | 123 | 4,364 | ||||||
Third Point Reinsurance Ltd. (Bermuda)* | 370 | 4,619 | ||||||
Universal Insurance Holdings, Inc. | 53 | 1,857 | ||||||
|
| |||||||
78,783 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.7% | ||||||||
Liberty Expedia Holdings, Inc., Class A* | 135 | 5,923 | ||||||
Liberty TripAdvisor Holdings, Inc., Class A* | 454 | 7,313 | ||||||
|
| |||||||
13,236 | ||||||||
|
| |||||||
Internet Software & Services — 0.1% | ||||||||
Nutanix, Inc., Class A* | 42 | 2,171 | ||||||
|
| |||||||
IT Services — 1.9% | ||||||||
Convergys Corp. | 795 | 19,440 | ||||||
Perficient, Inc.* | 203 | 5,350 | ||||||
Travelport Worldwide Ltd. | 263 | 4,874 | ||||||
Unisys Corp.* | 577 | 7,438 | ||||||
|
| |||||||
37,102 | ||||||||
|
| |||||||
Machinery — 2.4% | ||||||||
AGCO Corp. | 89 | 5,428 | ||||||
Briggs & Stratton Corp. | 144 | 2,532 | ||||||
Douglas Dynamics, Inc. | 254 | 12,168 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Machinery — continued | ||||||||
Graham Corp. | 24 | 622 | ||||||
Harsco Corp.* | 206 | 4,550 | ||||||
Hurco Cos., Inc. | 43 | 1,902 | ||||||
Kadant, Inc. | 57 | 5,481 | ||||||
LB Foster Co., Class A* | 31 | 716 | ||||||
Wabash National Corp. | 723 | 13,488 | ||||||
|
| |||||||
46,887 | ||||||||
|
| |||||||
Marine — 0.4% | ||||||||
Costamare, Inc. (Monaco) | 945 | 7,545 | ||||||
|
| |||||||
Media — 1.5% | ||||||||
Eros International plc (India)* | 178 | 2,311 | ||||||
Gannett Co., Inc. | 1,056 | 11,298 | ||||||
Hemisphere Media Group, Inc.* | 345 | 4,521 | ||||||
MSG Networks, Inc., Class A* | 105 | 2,508 | ||||||
New Media Investment Group, Inc. | 256 | 4,725 | ||||||
tronc, Inc.* | 219 | 3,786 | ||||||
|
| |||||||
29,149 | ||||||||
|
| |||||||
Metals & Mining — 2.0% | ||||||||
Carpenter Technology Corp. | 157 | 8,264 | ||||||
Kaiser Aluminum Corp. | 102 | 10,578 | ||||||
Schnitzer Steel Industries, Inc., Class A | 48 | 1,614 | ||||||
SunCoke Energy, Inc.* | 358 | 4,794 | ||||||
Warrior Met Coal, Inc. | 156 | 4,293 | ||||||
Worthington Industries, Inc. | 220 | 9,212 | ||||||
|
| |||||||
38,755 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 2.1% |
| |||||||
AG Mortgage Investment Trust, Inc. | 88 | 1,657 | ||||||
ARMOUR Residential REIT, Inc. | 111 | 2,528 | ||||||
Capstead Mortgage Corp. | 1,419 | 12,702 | ||||||
Cherry Hill Mortgage Investment Corp. | 145 | 2,584 | ||||||
CYS Investments, Inc. | 1,374 | 10,302 | ||||||
Dynex Capital, Inc. | 368 | 2,404 | ||||||
Invesco Mortgage Capital, Inc. | 511 | 8,128 | ||||||
|
| |||||||
40,305 | ||||||||
|
| |||||||
Multiline Retail — 1.3% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 92 | 2,171 | ||||||
Dillard’s, Inc., Class A | 251 | 23,682 | ||||||
|
| |||||||
25,853 | ||||||||
|
| |||||||
Multi-Utilities — 1.1% | ||||||||
Avista Corp. | 233 | 12,270 | ||||||
NorthWestern Corp. | 123 | 7,053 | ||||||
Unitil Corp. | 20 | 1,031 | ||||||
|
| |||||||
20,354 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 37 |
Table of Contents
JPMorgan Small Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Oil, Gas & Consumable Fuels — 5.1% | ||||||||
Arch Coal, Inc., Class A | 126 | 9,914 | ||||||
Delek US Holdings, Inc. | 347 | 17,429 | ||||||
Denbury Resources, Inc.* | 2,996 | 14,410 | ||||||
EP Energy Corp., Class A* | 1,751 | 5,251 | ||||||
Gulfport Energy Corp.* | 905 | 11,370 | ||||||
HighPoint Resources Corp.* | 634 | 3,855 | ||||||
NACCO Industries, Inc., Class A | 45 | 1,525 | ||||||
PDC Energy, Inc.* | 165 | 9,980 | ||||||
REX American Resources Corp.* | 153 | 12,364 | ||||||
Sanchez Energy Corp.* | 367 | 1,657 | ||||||
Ship Finance International Ltd. (Norway) | 109 | 1,627 | ||||||
W&T Offshore, Inc.* | 1,121 | 8,016 | ||||||
|
| |||||||
97,398 | ||||||||
|
| |||||||
Paper & Forest Products — 1.0% | ||||||||
Domtar Corp. | 93 | 4,440 | ||||||
Louisiana-Pacific Corp. | 17 | 460 | ||||||
Schweitzer-Mauduit International, Inc. | 212 | 9,286 | ||||||
Verso Corp., Class A* | 219 | 4,768 | ||||||
|
| |||||||
18,954 | ||||||||
|
| |||||||
Pharmaceuticals — 0.8% | ||||||||
Amphastar Pharmaceuticals, Inc.* | 38 | 583 | ||||||
Dermira, Inc.* | 88 | 810 | ||||||
Intra-Cellular Therapies, Inc.* | 160 | 2,827 | ||||||
Medicines Co. (The)* | 109 | 3,997 | ||||||
MyoKardia, Inc.* | 46 | 2,284 | ||||||
Prestige Brands Holdings, Inc.* | 152 | 5,845 | ||||||
|
| |||||||
16,346 | ||||||||
|
| |||||||
Professional Services — 2.6% | ||||||||
Acacia Research Corp.* | 139 | 575 | ||||||
Barrett Business Services, Inc. | 105 | 10,152 | ||||||
CRA International, Inc. | 26 | 1,298 | ||||||
FTI Consulting, Inc.* | 369 | 22,329 | ||||||
Huron Consulting Group, Inc.* | 206 | 8,437 | ||||||
ICF International, Inc. | 40 | 2,828 | ||||||
TrueBlue, Inc.* | 173 | 4,649 | ||||||
|
| |||||||
50,268 | ||||||||
|
| |||||||
Road & Rail — 0.9% | ||||||||
ArcBest Corp. | 249 | 11,370 | ||||||
Covenant Transportation Group, Inc., Class A* | 41 | 1,279 | ||||||
YRC Worldwide, Inc.* | 458 | 4,598 | ||||||
|
| |||||||
17,247 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Semiconductors & Semiconductor Equipment — 1.9% |
| |||||||
Amkor Technology, Inc.* | 703 | 6,035 | ||||||
Cirrus Logic, Inc.* | 243 | 9,295 | ||||||
Cypress Semiconductor Corp. | 563 | 8,770 | ||||||
Rambus, Inc.* | 570 | 7,152 | ||||||
Xperi Corp. | 358 | 5,770 | ||||||
|
| |||||||
37,022 | ||||||||
|
| |||||||
Software — 1.5% | ||||||||
Fair Isaac Corp.* | 65 | 12,604 | ||||||
MicroStrategy, Inc., Class A* | 30 | 3,783 | ||||||
Progress Software Corp. | 239 | 9,271 | ||||||
Synchronoss Technologies, Inc.* | 264 | 1,631 | ||||||
TiVo Corp. | 92 | 1,233 | ||||||
|
| |||||||
28,522 | ||||||||
|
| |||||||
Specialty Retail — 2.1% | ||||||||
Cato Corp. (The), Class A | 139 | 3,422 | ||||||
Chico’s FAS, Inc. | 176 | 1,434 | ||||||
Children’s Place, Inc. (The) | 105 | 12,696 | ||||||
Hibbett Sports, Inc.* | 280 | 6,417 | ||||||
Murphy USA, Inc.* | 112 | 8,343 | ||||||
Office Depot, Inc. | 1,073 | 2,737 | ||||||
Party City Holdco, Inc.* | 52 | 798 | ||||||
Pier 1 Imports, Inc. | 146 | 347 | ||||||
Sally Beauty Holdings, Inc.* | 243 | 3,890 | ||||||
|
| |||||||
40,084 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
Deckers Outdoor Corp.* | 64 | 7,214 | ||||||
Movado Group, Inc. | 252 | 12,157 | ||||||
Perry Ellis International, Inc.* | 51 | 1,391 | ||||||
|
| |||||||
20,762 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 3.5% | ||||||||
BankFinancial Corp. | 128 | 2,266 | ||||||
Beneficial Bancorp, Inc. | 1,074 | 17,399 | ||||||
Charter Financial Corp. | 232 | 5,600 | ||||||
First Defiance Financial Corp. | 32 | 2,159 | ||||||
Meridian Bancorp, Inc. | 292 | 5,586 | ||||||
Northfield Bancorp, Inc. | 598 | 9,934 | ||||||
Oritani Financial Corp. | 26 | 420 | ||||||
Radian Group, Inc. | 104 | 1,689 | ||||||
Territorial Bancorp, Inc. | 15 | 459 | ||||||
United Community Financial Corp. | 40 | 438 | ||||||
United Financial Bancorp, Inc. | 91 | 1,594 | ||||||
Walker & Dunlop, Inc. | 127 | 7,079 | ||||||
Washington Federal, Inc. | 331 | 10,814 | ||||||
Waterstone Financial, Inc. | 83 | 1,417 | ||||||
WSFS Financial Corp. | 18 | 981 | ||||||
|
| |||||||
67,835 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
38 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Tobacco — 0.5% | ||||||||
Universal Corp. | 105 | 6,922 | ||||||
Vector Group Ltd. | 186 | 3,545 | ||||||
|
| |||||||
10,467 | ||||||||
|
| |||||||
Trading Companies & Distributors — 1.2% | ||||||||
DXP Enterprises, Inc.* | 128 | 4,890 | ||||||
MRC Global, Inc.* | 585 | 12,672 | ||||||
Titan Machinery, Inc.* | 352 | 5,467 | ||||||
|
| |||||||
23,029 | ||||||||
|
| |||||||
Water Utilities — 0.4% | ||||||||
American States Water Co. | 133 | 7,614 | ||||||
California Water Service Group | 19 | 720 | ||||||
|
| |||||||
8,334 | ||||||||
|
| |||||||
Total Common Stocks | 1,915,626 | |||||||
|
| |||||||
NO. OF WARRANTS (000) | ||||||||
Warrants — 0.0% | ||||||||
Consumer Finance — 0.0% | ||||||||
Emergent Capital, Inc. expiring 10/1/2019, price 10.75*‡ | 3 | — | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 1.3% | ||||||||
Investment Companies — 1.3% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) (Cost $25,875) | 25,875 | 25,875 | ||||||
|
| |||||||
Total Investments — 100.7% | 1,941,501 | |||||||
Liabilities in Excess of | (13,219 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,928,282 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts | ||||||||||||||||||||
Russell 2000 E-Mini Index | 175 | 09/2018 | USD | 14,416 | (241 | ) | ||||||||||||||
|
| |||||||||||||||||||
(241 | ) | |||||||||||||||||||
|
|
Abbreviations
REIT | Real Estate Investment Trust | |
USD | United States Dollar | |
(a) | Amount rounds to less than 0.05% of net assets. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(c) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 39 |
Table of Contents
JPMorgan U.S. Small Company Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.2% | ||||||||
Aerospace & Defense — 0.5% | ||||||||
Curtiss-Wright Corp. | 61 | 7,296 | ||||||
Moog, Inc., Class A | 30 | 2,300 | ||||||
|
| |||||||
9,596 | ||||||||
|
| |||||||
Auto Components — 0.6% | ||||||||
Stoneridge, Inc.* | 311 | 10,939 | ||||||
|
| |||||||
Banks — 8.2% | ||||||||
1st Source Corp. | 50 | 2,681 | ||||||
BancFirst Corp. | 155 | 9,152 | ||||||
BancorpSouth Bank | 205 | 6,765 | ||||||
Banner Corp. | 329 | 19,765 | ||||||
Cadence BanCorp | 14 | 393 | ||||||
Cathay General Bancorp | 80 | 3,251 | ||||||
Central Pacific Financial Corp. | 264 | 7,555 | ||||||
Central Valley Community Bancorp | 19 | 396 | ||||||
Citizens & Northern Corp. | 21 | 535 | ||||||
City Holding Co. | 51 | 3,844 | ||||||
CVB Financial Corp. | 331 | 7,430 | ||||||
East West Bancorp, Inc. | 3 | 211 | ||||||
FCB Financial Holdings, Inc., Class A* | 247 | 14,494 | ||||||
First Commonwealth Financial Corp. | 335 | 5,202 | ||||||
First Community Bancshares, Inc. | 22 | 714 | ||||||
First Financial Bancorp | 87 | 2,658 | ||||||
First Hawaiian, Inc. | 74 | 2,147 | ||||||
First Interstate BancSystem, Inc., Class A | 54 | 2,275 | ||||||
Flushing Financial Corp. | 68 | 1,772 | ||||||
Great Western Bancorp, Inc. | 26 | 1,109 | ||||||
Guaranty Bancorp | 34 | 1,010 | ||||||
Heritage Financial Corp. | 73 | 2,547 | ||||||
Hope Bancorp, Inc. | 164 | 2,923 | ||||||
Independent Bank Corp. | 11 | 823 | ||||||
Independent Bank Corp. | 96 | 2,435 | ||||||
Investors Bancorp, Inc. | 225 | 2,880 | ||||||
National Bank Holdings Corp., Class A | 19 | 720 | ||||||
OFG Bancorp (Puerto Rico) | 186 | 2,612 | ||||||
PacWest Bancorp | 55 | 2,708 | ||||||
People’s United Financial, Inc. | 112 | 2,026 | ||||||
Sierra Bancorp | 23 | 655 | ||||||
Simmons First National Corp., Class A | 95 | 2,851 | ||||||
Southside Bancshares, Inc. | 16 | 543 | ||||||
TCF Financial Corp. | 206 | 5,082 | ||||||
Trustmark Corp. | 71 | 2,307 | ||||||
UMB Financial Corp. | 50 | 3,789 | ||||||
Union Bankshares Corp. | 40 | 1,559 | ||||||
Webster Financial Corp. | 48 | 3,064 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Banks — continued | ||||||||
West Bancorp, Inc. | 33 | 825 | ||||||
Westamerica Bancorp | 204 | 11,534 | ||||||
|
| |||||||
145,242 | ||||||||
|
| |||||||
Biotechnology — 7.7% | ||||||||
ACADIA Pharmaceuticals, Inc.* | 80 | 1,219 | ||||||
Achillion Pharmaceuticals, Inc.* | 836 | 2,365 | ||||||
Aimmune Therapeutics, Inc.* | 112 | 3,004 | ||||||
Alder Biopharmaceuticals, Inc.* | 251 | 3,966 | ||||||
AMAG Pharmaceuticals, Inc.* | 363 | 7,082 | ||||||
Amicus Therapeutics, Inc.* | 342 | 5,339 | ||||||
Aptinyx, Inc.* | 136 | 3,277 | ||||||
Arena Pharmaceuticals, Inc.* | 104 | 4,541 | ||||||
Biohaven Pharmaceutical Holding Co. Ltd.* | 102 | 4,015 | ||||||
Bluebird Bio, Inc.* | 18 | 2,747 | ||||||
Cara Therapeutics, Inc.* | 161 | 3,083 | ||||||
Clovis Oncology, Inc.* | 62 | 2,833 | ||||||
CytomX Therapeutics, Inc.* | 117 | 2,675 | ||||||
Eagle Pharmaceuticals, Inc.* | 28 | 2,096 | ||||||
Flexion Therapeutics, Inc.* | 120 | 3,112 | ||||||
Forty Seven, Inc.* | 87 | 1,394 | ||||||
Global Blood Therapeutics, Inc.* | 122 | 5,496 | ||||||
Homology Medicines, Inc.* | 140 | 2,848 | ||||||
La Jolla Pharmaceutical Co.* | 111 | 3,247 | ||||||
Mersana Therapeutics, Inc.* | 131 | 2,345 | ||||||
MiMedx Group, Inc.* | 382 | 2,438 | ||||||
Myriad Genetics, Inc.* | 191 | 7,123 | ||||||
NewLink Genetics Corp.* | 406 | 1,934 | ||||||
Novavax, Inc.* | 1,701 | 2,279 | ||||||
Puma Biotechnology, Inc.* | 81 | 4,773 | ||||||
REGENXBIO, Inc.* | 98 | 7,010 | ||||||
Sangamo Therapeutics, Inc.* | 67 | 954 | ||||||
Sarepta Therapeutics, Inc.* | 62 | 8,142 | ||||||
Selecta Biosciences, Inc.* | 247 | 3,273 | ||||||
Seres Therapeutics, Inc.* | 347 | 2,986 | ||||||
Solid Biosciences, Inc.* | 144 | 5,138 | ||||||
Spark Therapeutics, Inc.* | 67 | 5,520 | ||||||
Synergy Pharmaceuticals, Inc.* | 1,111 | 1,934 | ||||||
TG Therapeutics, Inc.* | 242 | 3,176 | ||||||
Vanda Pharmaceuticals, Inc.* | 243 | 4,637 | ||||||
Voyager Therapeutics, Inc.* | 185 | 3,607 | ||||||
Xencor, Inc.* | 132 | 4,878 | ||||||
|
| |||||||
136,486 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
40 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Building Products — 1.4% | ||||||||
Continental Building Products, Inc.* | 431 | 13,604 | ||||||
Gibraltar Industries, Inc.* | 118 | 4,425 | ||||||
Masonite International Corp.* | 95 | 6,790 | ||||||
|
| |||||||
24,819 | ||||||||
|
| |||||||
Capital Markets — 1.1% | ||||||||
BrightSphere Investment Group plc | 53 | 749 | ||||||
Evercore, Inc., Class A | 31 | 3,258 | ||||||
Houlihan Lokey, Inc. | 135 | 6,889 | ||||||
MarketAxess Holdings, Inc. | 28 | 5,560 | ||||||
Stifel Financial Corp. | 23 | 1,197 | ||||||
Virtus Investment Partners, Inc. | 17 | 2,162 | ||||||
|
| |||||||
19,815 | ||||||||
|
| |||||||
Chemicals — 1.7% | ||||||||
FutureFuel Corp. | 185 | 2,593 | ||||||
Minerals Technologies, Inc. | 104 | 7,829 | ||||||
OMNOVA Solutions, Inc.* | 240 | 2,491 | ||||||
PolyOne Corp. | 39 | 1,686 | ||||||
Sensient Technologies Corp. | 31 | 2,189 | ||||||
Trinseo SA | 195 | 13,864 | ||||||
|
| |||||||
30,652 | ||||||||
|
| |||||||
Commercial Services & Supplies — 2.0% | ||||||||
ACCO Brands Corp. | 1,198 | 16,598 | ||||||
ARC Document Solutions, Inc.* | 17 | 30 | ||||||
BrightView Holdings, Inc.* | 50 | 1,100 | ||||||
Deluxe Corp. | 99 | 6,561 | ||||||
Ennis, Inc. | 281 | 5,710 | ||||||
Essendant, Inc. | 56 | 746 | ||||||
Interface, Inc. | 61 | 1,395 | ||||||
VSE Corp. | 90 | 4,300 | ||||||
|
| |||||||
36,440 | ||||||||
|
| |||||||
Communications Equipment — 2.1% | ||||||||
InterDigital, Inc. | 164 | 13,243 | ||||||
NetScout Systems, Inc.* | 814 | 24,184 | ||||||
|
| |||||||
37,427 | ||||||||
|
| |||||||
Construction & Engineering — 1.6% | ||||||||
EMCOR Group, Inc. | 297 | 22,656 | ||||||
MasTec, Inc.* | 51 | 2,588 | ||||||
MYR Group, Inc.* | 99 | 3,514 | ||||||
|
| |||||||
28,758 | ||||||||
|
| |||||||
Consumer Finance — 0.6% |
| |||||||
Credit Acceptance Corp.* | 9 | 3,145 | ||||||
Green Dot Corp., Class A* | 43 | 3,127 | ||||||
Nelnet, Inc., Class A | 67 | 3,937 | ||||||
|
| |||||||
10,209 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Containers & Packaging — 0.5% | ||||||||
Graphic Packaging Holding Co. | 630 | 9,140 | ||||||
Myers Industries, Inc. | 29 | 561 | ||||||
|
| |||||||
9,701 | ||||||||
|
| |||||||
Distributors — 0.1% | ||||||||
Funko, Inc., Class A* | 176 | 2,207 | ||||||
Weyco Group, Inc. | 11 | 397 | ||||||
|
| |||||||
2,604 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.3% | ||||||||
Houghton Mifflin Harcourt Co.* | 789 | 6,034 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.6% |
| |||||||
Frontier Communications Corp. | 1,194 | 6,399 | ||||||
Windstream Holdings, Inc.* | 832 | 4,383 | ||||||
|
| |||||||
10,782 | ||||||||
|
| |||||||
Electric Utilities — 1.0% | ||||||||
El Paso Electric Co. | 97 | 5,733 | ||||||
PNM Resources, Inc. | 72 | 2,785 | ||||||
Portland General Electric Co. | 171 | 7,295 | ||||||
Spark Energy, Inc., Class A | 139 | 1,357 | ||||||
|
| |||||||
17,170 | ||||||||
|
| |||||||
Electrical Equipment — 0.9% | ||||||||
Generac Holdings, Inc.* | 260 | 13,460 | ||||||
Powell Industries, Inc. | 85 | 2,947 | ||||||
|
| |||||||
16,407 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 3.0% |
| |||||||
Bel Fuse, Inc., Class B | 21 | 447 | ||||||
Benchmark Electronics, Inc. | 290 | 8,465 | ||||||
ePlus, Inc.* | 79 | 7,415 | ||||||
Knowles Corp.* | 214 | 3,271 | ||||||
OSI Systems, Inc.* | 110 | 8,491 | ||||||
Tech Data Corp.* | 103 | 8,450 | ||||||
TTM Technologies, Inc.* | 147 | 2,597 | ||||||
Vishay Intertechnology, Inc. | 581 | 13,468 | ||||||
|
| |||||||
52,604 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.8% | ||||||||
Archrock, Inc. | 308 | 3,696 | ||||||
FTS International, Inc.* | 127 | 1,810 | ||||||
Natural Gas Services Group, Inc.* | 50 | 1,168 | ||||||
RigNet, Inc.* | 87 | 891 | ||||||
SEACOR Holdings, Inc.* | 28 | 1,604 | ||||||
Unit Corp.* | 114 | 2,916 | ||||||
US Silica Holdings, Inc. | 59 | 1,516 | ||||||
|
| |||||||
13,601 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 41 |
Table of Contents
JPMorgan U.S. Small Company Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Equity Real Estate Investment Trusts (REITs) — 5.3% |
| |||||||
Alexander & Baldwin, Inc. | 42 | 980 | ||||||
American Assets Trust, Inc. | 89 | 3,396 | ||||||
Ashford Hospitality Trust, Inc. | 594 | 4,815 | ||||||
CBL & Associates Properties, Inc. | 97 | 538 | ||||||
CorEnergy Infrastructure Trust, Inc. | 50 | 1,869 | ||||||
CoreSite Realty Corp. | 128 | 14,174 | ||||||
CubeSmart | 64 | 2,056 | ||||||
DCT Industrial Trust, Inc. | 77 | 5,108 | ||||||
DiamondRock Hospitality Co. | 543 | 6,665 | ||||||
EastGroup Properties, Inc. | 42 | 3,975 | ||||||
EPR Properties | 5 | 292 | ||||||
Equity LifeStyle Properties, Inc. | 24 | 2,233 | ||||||
First Industrial Realty Trust, Inc. | 48 | 1,584 | ||||||
Franklin Street Properties Corp. | 82 | 700 | ||||||
GEO Group, Inc. (The) | 354 | 9,744 | ||||||
Gladstone Commercial Corp. | 19 | 357 | ||||||
Government Properties Income Trust | 26 | 404 | ||||||
Hersha Hospitality Trust | 220 | 4,717 | ||||||
Highwoods Properties, Inc. | 36 | 1,801 | ||||||
Hospitality Properties Trust | 97 | 2,772 | ||||||
InfraREIT, Inc. | 28 | 625 | ||||||
LTC Properties, Inc. | 100 | 4,270 | ||||||
Mack-Cali Realty Corp. | 86 | 1,734 | ||||||
National Retail Properties, Inc. | 12 | 527 | ||||||
Pebblebrook Hotel Trust | 74 | 2,860 | ||||||
Pennsylvania | 50 | 551 | ||||||
PotlatchDeltic Corp. | 30 | 1,520 | ||||||
PS Business Parks, Inc. | 24 | 3,084 | ||||||
Ramco-Gershenson Properties Trust | 175 | 2,312 | ||||||
RLJ Lodging Trust | 152 | 3,343 | ||||||
Saul Centers, Inc. | 47 | 2,491 | ||||||
Taubman Centers, Inc. | 32 | 1,851 | ||||||
Xenia Hotels & Resorts, Inc. | 40 | 974 | ||||||
|
| |||||||
94,322 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.2% | ||||||||
Ingles Markets, Inc., Class A | 86 | 2,722 | ||||||
|
| |||||||
Food Products — 1.4% |
| |||||||
Darling Ingredients, Inc.* | 735 | 14,602 | ||||||
Dean Foods Co. | 244 | 2,568 | ||||||
Pilgrim’s Pride Corp.* | 156 | 3,148 | ||||||
Post Holdings, Inc.* | 23 | 2,004 | ||||||
Sanderson Farms, Inc. | 20 | 2,103 | ||||||
Seneca Foods Corp., Class A* | 19 | 510 | ||||||
|
| |||||||
24,935 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Gas Utilities — 0.3% | ||||||||
Northwest Natural Gas Co. | 24 | 1,550 | ||||||
Southwest Gas Holdings, Inc. | 48 | 3,684 | ||||||
|
| |||||||
5,234 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 2.1% | ||||||||
AngioDynamics, Inc.* | 284 | 6,311 | ||||||
Integer Holdings Corp.* | 243 | 15,684 | ||||||
Lantheus Holdings, Inc.* | 75 | 1,094 | ||||||
Meridian Bioscience, Inc. | 209 | 3,315 | ||||||
NuVasive, Inc.* | 96 | 5,014 | ||||||
Orthofix International NV* | 46 | 2,614 | ||||||
OrthoPediatrics Corp.* | 38 | 1,007 | ||||||
Utah Medical Products, Inc. | 18 | 1,994 | ||||||
|
| |||||||
37,033 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.4% | ||||||||
Civitas Solutions, Inc.* | 328 | 5,382 | ||||||
Community Health Systems, Inc.* | 294 | 976 | ||||||
Cross Country Healthcare, Inc.* | 379 | 4,268 | ||||||
Molina Healthcare, Inc.* | 192 | 18,756 | ||||||
Owens & Minor, Inc. | 112 | 1,878 | ||||||
RadNet, Inc.* | 127 | 1,911 | ||||||
Surgery Partners, Inc.* | 134 | 1,994 | ||||||
Tenet Healthcare Corp.* | 549 | 18,423 | ||||||
Tivity Health, Inc.* | 411 | 14,457 | ||||||
Triple-S Management Corp., Class B (Puerto Rico)* | 208 | 8,140 | ||||||
WellCare Health Plans, Inc.* | 7 | 1,699 | ||||||
|
| |||||||
77,884 | ||||||||
|
| |||||||
Health Care Technology — 0.2% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 328 | 3,937 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.5% |
| |||||||
Bloomin’ Brands, Inc. | 886 | 17,803 | ||||||
Brinker International, Inc. | 160 | 7,611 | ||||||
Penn National Gaming, Inc.* | 401 | 13,466 | ||||||
Pinnacle Entertainment, Inc.* | 654 | 22,060 | ||||||
Speedway Motorsports, Inc. | 79 | 1,373 | ||||||
|
| |||||||
62,313 | ||||||||
|
| |||||||
Household Durables — 2.5% | ||||||||
AV Homes, Inc.* | 45 | 972 | ||||||
Beazer Homes USA, Inc.* | 333 | 4,909 | ||||||
Hamilton Beach Brands Holding Co., Class A | 106 | 3,079 | ||||||
Hovnanian Enterprises, Inc., Class A* | 1,860 | 3,031 | ||||||
KB Home | 538 | 14,652 | ||||||
Lifetime Brands, Inc. | 17 | 218 |
SEE NOTES TO FINANCIAL STATEMENTS.
42 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Household Durables — continued | ||||||||
Taylor Morrison Home Corp., Class A* | 714 | 14,843 | ||||||
TRI Pointe Group, Inc.* | 116 | 1,898 | ||||||
|
| |||||||
43,602 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 1.0% |
| |||||||
Atlantic Power Corp.* | 1,790 | 3,938 | ||||||
Pattern Energy Group, Inc., Class A | 133 | 2,496 | ||||||
Vistra Energy Corp.* | 491 | 11,627 | ||||||
|
| |||||||
18,061 | ||||||||
|
| |||||||
Insurance — 2.1% | ||||||||
Ambac Financial Group, Inc.* | 15 | 294 | ||||||
CNO Financial Group, Inc. | 284 | 5,400 | ||||||
First American Financial Corp. | 52 | 2,689 | ||||||
Global Indemnity Ltd. (Cayman Islands) | 19 | 737 | ||||||
Kemper Corp. | 29 | 2,194 | ||||||
Kinsale Capital Group, Inc. | 64 | 3,489 | ||||||
MBIA, Inc.* | 486 | 4,390 | ||||||
Navigators Group, Inc. (The) | 79 | 4,486 | ||||||
Primerica, Inc. | 82 | 8,177 | ||||||
ProAssurance Corp. | 63 | 2,247 | ||||||
Third Point Reinsurance Ltd. (Bermuda)* | 102 | 1,272 | ||||||
Universal Insurance Holdings, Inc. | 57 | 2,015 | ||||||
|
| |||||||
37,390 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.1% |
| |||||||
Liberty Expedia Holdings, Inc., Class A* | 188 | 8,243 | ||||||
Liberty TripAdvisor Holdings, Inc., Class A* | 240 | 3,864 | ||||||
Shutterfly, Inc.* | 73 | 6,599 | ||||||
|
| |||||||
18,706 | ||||||||
|
| |||||||
Internet Software & Services — 1.6% | ||||||||
Box, Inc., Class A* | 72 | 1,787 | ||||||
Care.com, Inc.* | 98 | 2,036 | ||||||
DocuSign, Inc.* | 39 | 2,060 | ||||||
NIC, Inc. | 218 | 3,391 | ||||||
Nutanix, Inc., Class A* | 73 | 3,765 | ||||||
SendGrid, Inc.* | 14 | 376 | ||||||
Web.com Group, Inc.* | 586 | 15,140 | ||||||
|
| |||||||
28,555 | ||||||||
|
| |||||||
IT Services — 2.5% | ||||||||
Convergys Corp. | 311 | 7,589 | ||||||
CSG Systems International, Inc. | 9 | 352 | ||||||
Euronet Worldwide, Inc.* | 24 | 2,036 | ||||||
EVERTEC, Inc. (Puerto Rico) | 31 | 686 | ||||||
Perficient, Inc.* | 316 | 8,322 | ||||||
Science Applications International Corp. | 109 | 8,829 | ||||||
Switch, Inc., Class A | 45 | 550 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
IT Services — continued | ||||||||
Travelport Worldwide Ltd. | 593 | 10,992 | ||||||
Unisys Corp.* | 419 | 5,399 | ||||||
|
| |||||||
44,755 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.4% | ||||||||
Luminex Corp. | 78 | 2,288 | ||||||
Medpace Holdings, Inc.* | 92 | 3,939 | ||||||
|
| |||||||
6,227 | ||||||||
|
| |||||||
Machinery — 3.3% | ||||||||
Actuant Corp., Class A | 199 | 5,844 | ||||||
Briggs & Stratton Corp. | 304 | 5,350 | ||||||
Douglas Dynamics, Inc. | 246 | 11,822 | ||||||
FreightCar America, Inc. | 36 | 603 | ||||||
Graham Corp. | 34 | 877 | ||||||
Harsco Corp.* | 143 | 3,151 | ||||||
Hillenbrand, Inc. | 185 | 8,709 | ||||||
Kadant, Inc. | 67 | 6,423 | ||||||
LB Foster Co., Class A* | 22 | 503 | ||||||
Meritor, Inc.* | 22 | 461 | ||||||
Wabash National Corp. | 770 | 14,368 | ||||||
|
| |||||||
58,111 | ||||||||
|
| |||||||
Media — 1.8% | ||||||||
Entravision Communications Corp., Class A | 226 | 1,132 | ||||||
Eros International plc (India)* | 227 | 2,956 | ||||||
Gannett Co., Inc. | 869 | 9,294 | ||||||
Hemisphere Media Group, Inc.* | 231 | 3,022 | ||||||
MSG Networks, Inc., Class A* | 158 | 3,784 | ||||||
New Media Investment Group, Inc. | 119 | 2,207 | ||||||
Sinclair Broadcast Group, Inc., Class A | 201 | 6,465 | ||||||
tronc, Inc.* | 176 | 3,035 | ||||||
|
| |||||||
31,895 | ||||||||
|
| |||||||
Metals & Mining — 0.8% | ||||||||
Kaiser Aluminum Corp. | 63 | 6,590 | ||||||
SunCoke Energy, Inc.* | 44 | 583 | ||||||
Worthington Industries, Inc. | 162 | 6,787 | ||||||
|
| |||||||
13,960 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 1.1% |
| |||||||
Capstead Mortgage Corp. | 921 | 8,242 | ||||||
Cherry Hill Mortgage Investment Corp. | 48 | 848 | ||||||
CYS Investments, Inc. | 1,044 | 7,832 | ||||||
Dynex Capital, Inc. | 40 | 263 | ||||||
Invesco Mortgage Capital, Inc. | 183 | 2,902 | ||||||
|
| |||||||
20,087 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 43 |
Table of Contents
JPMorgan U.S. Small Company Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Multiline Retail — 0.4% |
| |||||||
BJ’s Wholesale Club Holdings, Inc.* | 85 | 1,998 | ||||||
Dillard’s, Inc., Class A | 52 | 4,886 | ||||||
|
| |||||||
6,884 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 3.7% | ||||||||
Adams Resources & Energy, Inc. | 14 | 585 | ||||||
Arch Coal, Inc., Class A | 54 | 4,259 | ||||||
Delek US Holdings, Inc. | 242 | 12,156 | ||||||
Denbury Resources, Inc.* | 985 | 4,737 | ||||||
Dorian LPG Ltd.* | 6 | 45 | ||||||
EP Energy Corp., Class A* | 761 | 2,284 | ||||||
Gulfport Energy Corp.* | 802 | 10,085 | ||||||
HighPoint Resources Corp.* | 398 | 2,422 | ||||||
NACCO Industries, Inc., Class A | 53 | 1,792 | ||||||
PDC Energy, Inc.* | 53 | 3,180 | ||||||
REX American Resources Corp.* | 159 | 12,834 | ||||||
Sanchez Energy Corp.* | 306 | 1,384 | ||||||
W&T Offshore, Inc.* | 1,444 | 10,325 | ||||||
|
| |||||||
66,088 | ||||||||
|
| |||||||
Paper & Forest Products — 0.2% | ||||||||
Domtar Corp. | 38 | 1,809 | ||||||
Verso Corp., Class A* | 75 | 1,639 | ||||||
|
| |||||||
3,448 | ||||||||
|
| |||||||
Personal Products — 0.3% | ||||||||
Herbalife Nutrition Ltd.* | 33 | 1,794 | ||||||
Medifast, Inc. | 13 | 2,018 | ||||||
USANA Health Sciences, Inc.* | 19 | 2,214 | ||||||
|
| |||||||
6,026 | ||||||||
|
| |||||||
Pharmaceuticals — 2.6% | ||||||||
Endo International plc* | 1,070 | 10,088 | ||||||
Horizon Pharma plc* | 333 | 5,518 | ||||||
Mallinckrodt plc* | 785 | 14,644 | ||||||
Menlo Therapeutics, Inc.* | 94 | 763 | ||||||
Paratek Pharmaceuticals, Inc.* | 273 | 2,788 | ||||||
Prestige Brands Holdings, Inc.* | 179 | 6,866 | ||||||
Reata Pharmaceuticals, Inc., Class A* | 118 | 4,130 | ||||||
resTORbio, Inc.* | 69 | 631 | ||||||
|
| |||||||
45,428 | ||||||||
|
| |||||||
Professional Services — 2.0% | ||||||||
Acacia Research Corp.* | 219 | 908 | ||||||
Barrett Business Services, Inc. | 170 | 16,439 | ||||||
Huron Consulting Group, Inc.* | 199 | 8,127 | ||||||
TrueBlue, Inc.* | 151 | 4,080 | ||||||
WageWorks, Inc.* | 121 | 6,055 | ||||||
|
| |||||||
35,609 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Road & Rail — 0.4% | ||||||||
ArcBest Corp. | 94 | 4,305 | ||||||
Covenant Transportation Group, Inc., Class A* | 28 | 885 | ||||||
Schneider National, Inc., Class B | 49 | 1,334 | ||||||
YRC Worldwide, Inc.* | 118 | 1,190 | ||||||
|
| |||||||
7,714 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 2.8% |
| |||||||
Advanced Energy Industries, Inc.* | 24 | 1,394 | ||||||
Amkor Technology, Inc.* | 644 | 5,530 | ||||||
Cirrus Logic, Inc.* | 195 | 7,482 | ||||||
Cohu, Inc. | 35 | 865 | ||||||
Entegris, Inc. | 133 | 4,516 | ||||||
Rambus, Inc.* | 899 | 11,273 | ||||||
Silicon Laboratories, Inc.* | 17 | 1,723 | ||||||
Synaptics, Inc.* | 141 | 7,102 | ||||||
Xperi Corp. | 571 | 9,187 | ||||||
|
| |||||||
49,072 | ||||||||
|
| |||||||
Software — 5.0% | ||||||||
ACI Worldwide, Inc.* | 82 | 2,020 | ||||||
Aspen Technology, Inc.* | 232 | 21,553 | ||||||
Carbon Black, Inc.* | 25 | 655 | ||||||
Domo, Inc., Class B* | 143 | 3,893 | ||||||
Fair Isaac Corp.* | 78 | 15,060 | ||||||
Manhattan Associates, Inc.* | 41 | 1,923 | ||||||
MicroStrategy, Inc., Class A* | 17 | 2,146 | ||||||
Pivotal Software, Inc., Class A* | 112 | 2,726 | ||||||
Pluralsight, Inc., Class A* | 300 | 7,330 | ||||||
Progress Software Corp. | 399 | 15,481 | ||||||
Proofpoint, Inc.* | 36 | 4,186 | ||||||
Smartsheet, Inc., Class A* | 180 | 4,682 | ||||||
Synchronoss Technologies, Inc.* | 988 | 6,097 | ||||||
Zix Corp.* | 374 | 2,018 | ||||||
|
| |||||||
89,770 | ||||||||
|
| |||||||
Specialty Retail — 2.9% | ||||||||
American Eagle Outfitters, Inc. | 309 | 7,180 | ||||||
Asbury Automotive Group, Inc.* | 77 | 5,271 | ||||||
Children’s Place, Inc. (The) | 98 | 11,826 | ||||||
Murphy USA, Inc.* | 61 | 4,547 | ||||||
Pier 1 Imports, Inc. | 920 | 2,189 | ||||||
RH* | 108 | 15,074 | ||||||
Sleep Number Corp.* | 203 | 5,879 | ||||||
|
| |||||||
51,966 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 0.1% |
| |||||||
Electronics For Imaging, Inc.* | 30 | 990 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
44 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Textiles, Apparel & Luxury Goods — 1.2% | ||||||||
Crocs, Inc.* | 242 | 4,265 | ||||||
Movado Group, Inc. | 194 | 9,365 | ||||||
Perry Ellis International, Inc.* | 61 | 1,666 | ||||||
Wolverine World Wide, Inc. | 189 | 6,585 | ||||||
|
| |||||||
21,881 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 2.5% | ||||||||
BankFinancial Corp. | 86 | 1,518 | ||||||
Beneficial Bancorp, Inc. | 639 | 10,356 | ||||||
Capitol Federal Financial, Inc. | 19 | 243 | ||||||
Charter Financial Corp. | 56 | 1,357 | ||||||
First Defiance Financial Corp. | 18 | 1,221 | ||||||
Meridian Bancorp, Inc. | 491 | 9,410 | ||||||
MGIC Investment Corp.* | 211 | 2,257 | ||||||
NMI Holdings, Inc., Class A* | 98 | 1,596 | ||||||
Northfield Bancorp, Inc. | 528 | 8,769 | ||||||
Radian Group, Inc. | 55 | 890 | ||||||
Walker & Dunlop, Inc. | 123 | 6,862 | ||||||
|
| |||||||
44,479 | ||||||||
|
| |||||||
Trading Companies & Distributors — 1.3% | ||||||||
Applied Industrial Technologies, Inc. | 70 | 4,925 | ||||||
DXP Enterprises, Inc.* | 125 | 4,775 | ||||||
MRC Global, Inc.* | 417 | 9,043 | ||||||
Titan Machinery, Inc.* | 300 | 4,671 | ||||||
|
| |||||||
23,414 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Water Utilities — 0.5% | ||||||||
American States Water Co. | 160 | 9,134 | ||||||
|
| |||||||
Total Common Stocks | 1,710,918 | |||||||
|
| |||||||
NO. OF (000) | ||||||||
Warrants — 0.0% | ||||||||
Consumer Finance — 0.0% | ||||||||
Emergent Capital, Inc. expiring 10/1/2019, price 10.75*‡ | — | (a) | — | |||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 3.7% |
| |||||||
Investment Companies — 3.7% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) | 65,468 | 65,468 | ||||||
|
| |||||||
Total Investments — 99.9% | 1,776,386 | |||||||
Other Assets Less | 2,460 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,778,846 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||
Long Contracts | ||||||||||||||||||
Russell 2000 E-Mini Index | 752 | 09/2018 | USD | 61,946 | (1,239 | ) | ||||||||||||
|
| |||||||||||||||||
(1,239 | ) | |||||||||||||||||
|
|
Abbreviations
REIT | Real Estate Investment Trust | |
USD | United States Dollar | |
(a) | Amount rounds to less than one thousand. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(c) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 45 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Small Cap Blend Fund (formerly known | JPMorgan Small Cap Core Fund | JPMorgan Small Cap Equity Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in non-affiliates, at value | $ | 214,133 | $ | 304,416 | $ | 6,510,544 | ||||||
Investments in affiliates, at value | 5,211 | 11,474 | 354,263 | |||||||||
Cash | 1 | 37 | — | |||||||||
Deposits at broker for futures contracts | — | 440 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 145 | 156 | 20,248 | |||||||||
Fund shares sold | 707 | 382 | 7,972 | |||||||||
Dividends from non-affiliates | 101 | 264 | 5,955 | |||||||||
Dividends from affiliates | 8 | 10 | 415 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 220,306 | 317,179 | 6,899,397 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES: | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 948 | 2,720 | 52,619 | |||||||||
Fund shares redeemed | 306 | 375 | 12,642 | |||||||||
Variation margin on futures contracts | — | 9 | — | |||||||||
Accrued liabilities: | ||||||||||||
Investment advisory fees | 114 | 130 | 3,599 | |||||||||
Administration fees | 10 | — | 435 | |||||||||
Distribution fees | 43 | 2 | 321 | |||||||||
Service fees | 41 | 14 | 886 | |||||||||
Custodian and accounting fees | 5 | 10 | 30 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | (a) | — | |||||||
Other | 82 | 99 | 626 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 1,549 | 3,359 | 71,158 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 218,757 | $ | 313,820 | $ | 6,828,239 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
46 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Blend Fund (formerly known | JPMorgan Small Cap Core Fund | JPMorgan Small Cap Equity Fund | ||||||||||
NET ASSETS: | ||||||||||||
Paid-in-Capital | $ | 113,573 | $ | 221,941 | $ | 4,538,654 | ||||||
Accumulated undistributed (distributions in excess of) net investment income | (889 | ) | 532 | 10,932 | ||||||||
Accumulated net realized gains (losses) | 47,130 | 12,363 | 171,047 | |||||||||
Net unrealized appreciation (depreciation) | 58,943 | 78,984 | 2,107,606 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 218,757 | $ | 313,820 | $ | 6,828,239 | ||||||
|
|
|
|
|
| |||||||
Net Assets: | ||||||||||||
Class A | $ | 85,586 | $ | 4,624 | $ | 1,095,395 | ||||||
Class C | 40,470 | 1,816 | 143,030 | |||||||||
Class I | 92,701 | 15,557 | 2,868,739 | |||||||||
Class R2 | — | 24 | 12,133 | |||||||||
Class R3 | — | 24 | 2,542 | |||||||||
Class R4 | — | 1,536 | 624 | |||||||||
Class R5 | — | 223,933 | 1,255,251 | |||||||||
Class R6 | — | 66,306 | 1,450,525 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 218,757 | $ | 313,820 | $ | 6,828,239 | ||||||
|
|
|
|
|
| |||||||
Outstanding units of beneficial interest (shares) | ||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||
Class A | 3,211 | 81 | 20,891 | |||||||||
Class C | 2,035 | 32 | 3,656 | |||||||||
Class I | 3,037 | 271 | 47,402 | |||||||||
Class R2 | — | — | (a) | 236 | ||||||||
Class R3 | — | — | (a) | 49 | ||||||||
Class R4 | — | 27 | 10 | |||||||||
Class R5 | — | 3,886 | 20,682 | |||||||||
Class R6 | — | 1,152 | 23,903 | |||||||||
Net Asset Value (b): | ||||||||||||
Class A — Redemption price per share | $ | 26.65 | $ | 57.16 | $ | 52.43 | ||||||
Class C — Offering price per share (c) | 19.89 | 56.67 | 39.12 | |||||||||
Class I — Offering and redemption price per share | 30.53 | 57.44 | 60.52 | |||||||||
Class R2 — Offering and redemption price per share | — | 57.32 | 51.44 | |||||||||
Class R3 — Offering and redemption price per share | — | 57.40 | 52.13 | |||||||||
Class R4 — Offering and redemption price per share | — | 57.48 | 60.42 | |||||||||
Class R5 — Offering and redemption price per share | — | 57.63 | 60.69 | |||||||||
Class R6 — Offering and redemption price per share | — | 57.55 | 60.68 | |||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | ||||||
Class A maximum public offering price per share | $ | 28.13 | $ | 60.33 | $ | 55.34 | ||||||
|
|
|
|
|
| |||||||
Cost of investments in non-affiliates | $ | 155,190 | $ | 225,362 | $ | 4,402,938 | ||||||
Cost of investments in affiliates | 5,211 | 11,474 | 354,263 |
(a) | Amount rounds to less than one thousand. |
(b) | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
(c) | Redemption price for Class C Shares varies based upon length of time the shares are held. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 47 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan Small Cap Growth Fund | JPMorgan Small Cap Value Fund | JPMorgan | ||||||||||
ASSETS: | ||||||||||||
Investments in non-affiliates, at value | $ | 2,152,419 | $ | 1,915,626 | $ | 1,710,918 | ||||||
Investments in affiliates, at value | 52,237 | 25,875 | 65,468 | |||||||||
Cash | — | 356 | 198 | |||||||||
Deposits at broker for futures contracts | — | 997 | 2,605 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 55,743 | 11,012 | 12,876 | |||||||||
Fund shares sold | 7,926 | 863 | 3,077 | |||||||||
Dividends from non-affiliates | 710 | 3,297 | 1,583 | |||||||||
Dividends from affiliates | 87 | 46 | 44 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 2,269,122 | 1,958,072 | 1,796,769 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES: | ||||||||||||
Payables: | ||||||||||||
Due to custodian | 1 | — | — | |||||||||
Investment securities purchased | 12,765 | 17,999 | 12,452 | |||||||||
Fund shares redeemed | 64,852 | 10,018 | 3,814 | |||||||||
Variation margin on futures contracts | — | 38 | 120 | |||||||||
Accrued liabilities: | ||||||||||||
Investment advisory fees | 1,118 | 1,024 | 885 | |||||||||
Administration fees | 104 | 120 | 119 | |||||||||
Distribution fees | 108 | 110 | 97 | |||||||||
Service fees | 163 | 158 | 194 | |||||||||
Custodian and accounting fees | 10 | 15 | 14 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | — | (a) | |||||||
Other | 89 | 308 | 228 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 79,210 | 29,790 | 17,923 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 2,189,912 | $ | 1,928,282 | $ | 1,778,846 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
48 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Growth Fund | JPMorgan Small Cap Value Fund | JPMorgan | ||||||||||
NET ASSETS: | ||||||||||||
Paid-in-Capital | $ | 1,346,885 | $ | 1,344,204 | $ | 1,333,562 | ||||||
Accumulated undistributed (distributions in excess of) net investment income | (4,513 | ) | 2,058 | 870 | ||||||||
Accumulated net realized gains (losses) | 212,449 | 76,954 | 86,156 | |||||||||
Net unrealized appreciation (depreciation) | 635,091 | 505,066 | 358,258 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 2,189,912 | $ | 1,928,282 | $ | 1,778,846 | ||||||
|
|
|
|
|
| |||||||
Net Assets: | ||||||||||||
Class A | $ | 337,933 | $ | 336,054 | $ | 210,050 | ||||||
Class C | 43,116 | 25,885 | 45,633 | |||||||||
Class I | 268,082 | 336,366 | 433,317 | |||||||||
Class L | 434,286 | — | 554,361 | |||||||||
Class R2 | 31,569 | 45,300 | 49,715 | |||||||||
Class R3 | 446 | 12,948 | 17,655 | |||||||||
Class R4 | 726 | 102 | 5,773 | |||||||||
Class R5 | 28,656 | 131,506 | 6,491 | |||||||||
Class R6 | 1,045,098 | 1,040,121 | 455,851 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 2,189,912 | $ | 1,928,282 | $ | 1,778,846 | ||||||
|
|
|
|
|
| |||||||
Outstanding units of beneficial interest (shares) | ||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||
Class A | 18,315 | 11,048 | 10,716 | |||||||||
Class C | 3,183 | 1,027 | 2,440 | |||||||||
Class I | 13,173 | 10,432 | 21,607 | |||||||||
Class L | 20,726 | — | 27,654 | |||||||||
Class R2 | 1,770 | 1,504 | 2,586 | |||||||||
Class R3 | 24 | 426 | 906 | |||||||||
Class R4 | 39 | 3 | 289 | |||||||||
Class R5 | 1,367 | 4,076 | 324 | |||||||||
Class R6 | 49,400 | 32,202 | 22,718 | |||||||||
Net Asset Value (a): | ||||||||||||
Class A — Redemption price per share | $ | 18.45 | $ | 30.42 | $ | 19.60 | ||||||
Class C — Offering price per share (b) | 13.55 | 25.21 | 18.70 | |||||||||
Class I — Offering and redemption price per share | 20.35 | 32.25 | 20.05 | |||||||||
Class L — Offering and redemption price per share | 20.95 | — | 20.05 | |||||||||
Class R2 — Offering and redemption price per share | 17.84 | 30.13 | 19.22 | |||||||||
Class R3 — Offering and redemption price per share | 18.45 | 30.38 | 19.50 | |||||||||
Class R4 — Offering and redemption price per share | 18.50 | 32.21 | 19.98 | |||||||||
Class R5 — Offering and redemption price per share | 20.96 | 32.26 | 20.01 | |||||||||
Class R6 — Offering and redemption price per share | 21.16 | 32.30 | 20.07 | |||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | ||||||
Class A maximum public offering price per share | $ | 19.47 | $ | 32.11 | $ | 20.69 | ||||||
|
|
|
|
|
| |||||||
Cost of investments in non-affiliates | $ | 1,517,328 | $ | 1,410,319 | $ | 1,351,421 | ||||||
Cost of investments in affiliates | 52,237 | 25,875 | 65,468 |
(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.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 49 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Small Cap Blend Fund (formerly known | JPMorgan Small Cap Core Fund | JPMorgan Small Cap Equity Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income from non-affiliates | $ | — | $ | 1 | $ | — | ||||||
Interest income from affiliates | — | (a) | — | (a) | 3 | |||||||
Dividend income from non-affiliates | 819 | 3,253 | 88,850 | |||||||||
Dividend income from affiliates | 46 | 76 | 3,290 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 865 | 3,330 | 92,143 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES: | ||||||||||||
Investment advisory fees | 1,299 | 1,683 | 41,785 | |||||||||
Administration fees | 162 | 210 | 5,224 | |||||||||
Distribution fees: | ||||||||||||
Class A | 188 | 8 | 2,717 | |||||||||
Class C | 289 | 11 | 1,145 | |||||||||
Class R2 (b) | — | — | (a) | 66 | ||||||||
Class R3 (b) | — | — | (a) | 6 | ||||||||
Service fees: | ||||||||||||
Class A | 188 | 8 | 2,717 | |||||||||
Class C | 96 | 4 | 382 | |||||||||
Class I | 216 | 35 | 6,620 | |||||||||
Class R2 (b) | — | — | (a) | 33 | ||||||||
Class R3 (b) | — | — | (a) | 5 | ||||||||
Class R4 (b) | — | 2 | 1 | |||||||||
Class R5 | — | 201 | 1,222 | |||||||||
Custodian and accounting fees | 32 | 49 | 173 | |||||||||
Interest expense to affiliates | — | (a) | — | — | ||||||||
Professional fees | 62 | 67 | 123 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | 26 | 26 | 44 | |||||||||
Printing and mailing costs | 1 | 39 | 472 | |||||||||
Registration and filing fees | 50 | 159 | 362 | |||||||||
Transfer agency fees (See Note 2.D.) | 32 | 11 | 203 | |||||||||
Other | 10 | 15 | 97 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 2,651 | 2,528 | 63,397 | |||||||||
|
|
|
|
|
| |||||||
Less fees waived | (197 | ) | (435 | ) | (1,744 | ) | ||||||
Less earnings credits | — | — | — | (a) | ||||||||
Less expense reimbursements | — | — | (a) | (16 | ) | |||||||
|
|
|
|
|
| |||||||
Net expenses | 2,454 | 2,093 | 61,637 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | (1,589 | ) | 1,237 | 30,506 | ||||||||
|
|
|
|
|
| |||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||
Investments in non-affiliates | 67,803 | 17,141 | 239,434 | |||||||||
Futures contracts | — | 1,577 | — | |||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 67,803 | 18,718 | 239,434 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||
Investments in non-affiliates | (5,489 | ) | 24,578 | 609,763 | ||||||||
Futures contracts | — | (82 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation | (5,489 | ) | 24,496 | 609,763 | ||||||||
|
|
|
|
|
| |||||||
Net realized/unrealized gains (losses) | 62,314 | 43,214 | 849,197 | |||||||||
|
|
|
|
|
| |||||||
Change in net assets resulting from operations | $ | 60,725 | $ | 44,451 | $ | 879,703 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Small Cap Core Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
50 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Growth Fund | JPMorgan Small Cap Value Fund | JPMorgan | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income from non-affiliates | $ | — | $ | 5 | $ | 11 | ||||||
Interest income from affiliates | 1 | — | (a) | 1 | ||||||||
Dividend income from non-affiliates | 6,303 | 38,428 | 21,275 | |||||||||
Dividend income from affiliates | 454 | 387 | 468 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 6,758 | 38,820 | 21,755 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES: | ||||||||||||
Investment advisory fees | 10,649 | 12,975 | 10,572 | |||||||||
Administration fees | 1,331 | 1,623 | 1,432 | |||||||||
Distribution fees: | ||||||||||||
Class A | 619 | 1,015 | 556 | |||||||||
Class C | 205 | 235 | 354 | |||||||||
Class R2 | 135 | 279 | 253 | |||||||||
Class R3 (b) | 1 | 33 | 34 | |||||||||
Service fees: | ||||||||||||
Class A | 619 | 1,015 | 556 | |||||||||
Class C | 68 | 78 | 118 | |||||||||
Class I | 436 | 874 | 1,023 | |||||||||
Class L | 369 | — | 633 | |||||||||
Class R2 | 67 | 140 | 126 | |||||||||
Class R3 (b) | 1 | 33 | 34 | |||||||||
Class R4 (b) | 1 | — | (a) | 9 | ||||||||
Class R5 | 5 | 130 | 2 | |||||||||
Custodian and accounting fees | 63 | 92 | 81 | |||||||||
Professional fees | 82 | 79 | 72 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | 30 | 32 | 31 | |||||||||
Printing and mailing costs | 130 | 149 | 176 | |||||||||
Registration and filing fees | 187 | 170 | 174 | |||||||||
Transfer agency fees (See Note 2.D.) | 93 | 322 | 106 | |||||||||
Other | 38 | 56 | 35 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 15,129 | 19,330 | 16,377 | |||||||||
|
|
|
|
|
| |||||||
Less fees waived | (493 | ) | (622 | ) | (88 | ) | ||||||
Less expense reimbursements | (8 | ) | (29 | ) | (1 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 14,628 | 18,679 | 16,288 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | (7,870 | ) | 20,141 | 5,467 | ||||||||
|
|
|
|
|
| |||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||
Investments in non-affiliates | 300,478 | 109,907 | 139,495 | |||||||||
Futures contracts | — | 5,710 | 5,500 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 300,478 | 115,617 | 144,995 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||
Investments in non-affiliates | 197,385 | 84,504 | 112,419 | |||||||||
Futures contracts | — | (82 | ) | (1,133 | ) | |||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation | 197,385 | 84,422 | 111,286 | |||||||||
|
|
|
|
|
| |||||||
Net realized/unrealized gains (losses) | 497,863 | 200,039 | 256,281 | |||||||||
|
|
|
|
|
| |||||||
Change in net assets resulting from operations | $ | 489,993 | $ | 220,180 | $ | 261,748 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Small Cap Growth Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 51 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund) | JPMorgan Small Cap Core Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (1,589 | ) | $ | (1,258 | ) | $ | 1,237 | $ | 759 | ||||||
Net realized gain (loss) | 67,803 | 23,961 | 18,718 | 20,916 | ||||||||||||
Change in net unrealized appreciation/depreciation | (5,489 | ) | 25,078 | 24,496 | 21,541 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 60,725 | 47,781 | 44,451 | 43,216 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | �� | |||||||||||||||
From net investment income | — | — | (1 | ) | — | (a) | ||||||||||
From net realized gains | (8,120 | ) | (8,616 | ) | (251 | ) | (7 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | — | — | — | — | (a) | |||||||||||
From net realized gains | (5,253 | ) | (6,161 | ) | (108 | ) | (5 | ) | ||||||||
Class I (b) | ||||||||||||||||
From net investment income | — | — | (74 | ) | — | |||||||||||
From net realized gains | (8,033 | ) | (8,471 | ) | (1,801 | ) | — | |||||||||
Class R2 (c) | ||||||||||||||||
From net investment income | — | — | — | (a) | — | |||||||||||
From net realized gains | — | — | (2 | ) | — | |||||||||||
Class R3 (c) | ||||||||||||||||
From net investment income | — | — | — | (a) | — | |||||||||||
From net realized gains | — | — | (2 | ) | — | |||||||||||
Class R4 (c) | ||||||||||||||||
From net investment income | — | — | — | (a) | — | |||||||||||
From net realized gains | — | — | (2 | ) | — | |||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | — | (626 | ) | (599 | ) | ||||||||||
From net realized gains | — | — | (15,051 | ) | (17,764 | ) | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | — | — | (134 | ) | — | (a) | ||||||||||
From net realized gains | — | — | (2,773 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (21,406 | ) | (23,248 | ) | (20,825 | ) | (18,377 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 9,046 | (7,047 | ) | 79,449 | 21,270 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 48,365 | 17,486 | 103,075 | 46,109 | ||||||||||||
Beginning of period | 170,392 | 152,906 | 210,745 | 164,636 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 218,757 | $ | 170,392 | $ | 313,820 | $ | 210,745 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | (889 | ) | $ | (669 | ) | $ | 532 | $ | 184 | ||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective January 3, 2017 for JPMorgan Small Cap Core Fund. |
(c) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Small Cap Core Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
52 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Equity Fund | JPMorgan Small Cap Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 30,506 | $ | 27,722 | $ | (7,870 | ) | $ | (5,008 | ) | ||||||
Net realized gain (loss) | 239,434 | 265,294 | 300,478 | 83,723 | ||||||||||||
Change in net unrealized appreciation/depreciation | 609,763 | 631,255 | 197,385 | 264,591 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 879,703 | 924,271 | 489,993 | 343,306 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (2,285 | ) | (3,188 | ) | — | — | ||||||||||
From net realized gains | (60,347 | ) | (32,659 | ) | (17,975 | ) | (6,279 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | — | (479 | ) | — | — | |||||||||||
From net realized gains | (10,709 | ) | (5,074 | ) | (2,339 | ) | (877 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (10,544 | ) | (9,633 | ) | — | — | ||||||||||
From net realized gains | (124,367 | ) | (53,162 | ) | (11,269 | ) | (3,529 | ) | ||||||||
Class L | ||||||||||||||||
From net realized gains | — | — | (23,301 | ) | (9,811 | ) | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | (5 | ) | (23 | ) | — | — | ||||||||||
From net realized gains | (780 | ) | (276 | ) | (2,118 | ) | (772 | ) | ||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | (15 | ) | — | (b) | — | — | ||||||||||
From net realized gains | (124 | ) | (1 | ) | (2 | ) | — | |||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | — | (b) | — | (b) | — | — | ||||||||||
From net realized gains | (4 | ) | — | (b) | (2 | ) | — | |||||||||
Class R5 (c) | ||||||||||||||||
From net investment income | (7,451 | ) | (5,428 | ) | — | — | ||||||||||
From net realized gains | (58,657 | ) | (25,600 | ) | (152 | ) | (28 | ) | ||||||||
Class R6 | ||||||||||||||||
From net investment income | (9,002 | ) | (3,830 | ) | — | — | ||||||||||
From net realized gains | (65,340 | ) | (15,853 | ) | (54,605 | ) | (15,304 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (349,630 | ) | (155,206 | ) | (111,763 | ) | (36,600 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 9,723 | 2,070,448 | 495,754 | (27,916 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 539,796 | 2,839,513 | 873,984 | 278,790 | ||||||||||||
Beginning of period | 6,288,443 | 3,448,930 | 1,315,928 | 1,037,138 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 6,828,239 | $ | 6,288,443 | $ | 2,189,912 | $ | 1,315,928 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 10,932 | $ | 13,011 | $ | (4,513 | ) | $ | (2,738 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Equity Fund and July 31, 2017 for JPMorgan Small Cap Growth Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Growth Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 53 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Small Cap Value Fund | JPMorgan U.S. Small Company Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 20,141 | $ | 13,280 | $ | 5,467 | $ | 4,809 | ||||||||
Net realized gain (loss) | 115,617 | 104,303 | 144,995 | 97,982 | ||||||||||||
Change in net unrealized appreciation/depreciation | 84,422 | 216,461 | 111,286 | 175,814 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 220,180 | 334,044 | 261,748 | 278,605 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (3,065 | ) | (2,556 | ) | — | (192 | ) | |||||||||
From net realized gains | (23,065 | ) | (390 | ) | (13,966 | ) | (15 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | (167 | ) | (124 | ) | — | — | ||||||||||
From net realized gains | (1,985 | ) | (36 | ) | (3,080 | ) | (3 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (3,303 | ) | (1,795 | ) | (744 | ) | (967 | ) | ||||||||
From net realized gains | (19,875 | ) | (217 | ) | (25,022 | ) | (19 | ) | ||||||||
Class L | ||||||||||||||||
From net investment income | — | — | (2,189 | ) | (3,751 | ) | ||||||||||
From net realized gains | — | — | (42,243 | ) | (45 | ) | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | (338 | ) | (181 | ) | — | — | ||||||||||
From net realized gains | (3,399 | ) | (37 | ) | (3,249 | ) | (2 | ) | ||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | (100 | ) | (2 | ) | (26 | ) | — | (b) | ||||||||
From net realized gains | (686 | ) | — | (b) | (846 | ) | — | (b) | ||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | (1 | ) | — | (b) | (15 | ) | — | (b) | ||||||||
From net realized gains | (5 | ) | — | (b) | (255 | ) | — | (b) | ||||||||
Class R5 (c) | ||||||||||||||||
From net investment income | (1,348 | ) | (730 | ) | (1 | ) | — | (b) | ||||||||
From net realized gains | (6,986 | ) | (73 | ) | (17 | ) | — | (b) | ||||||||
Class R6 | ||||||||||||||||
From net investment income | (11,435 | ) | (6,792 | ) | (1,594 | ) | (1,045 | ) | ||||||||
From net realized gains | (54,340 | ) | (552 | ) | (22,188 | ) | (11 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (130,098 | ) | (13,485 | ) | (115,435 | ) | (6,050 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (277,003 | ) | 41,312 | (119,140 | ) | 155,806 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (186,921 | ) | 361,871 | 27,173 | 428,361 | |||||||||||
Beginning of period | 2,115,203 | 1,753,332 | 1,751,673 | 1,323,312 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,928,282 | $ | 2,115,203 | $ | 1,778,846 | $ | 1,751,673 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 2,058 | $ | 2,857 | $ | 870 | $ | 823 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Small Company Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
54 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund) | JPMorgan Small Cap Core Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 15,940 | $ | 11,085 | $ | 2,760 | $ | 2,255 | ||||||||
Distributions reinvested | 5,772 | 6,122 | 252 | 7 | ||||||||||||
Cost of shares redeemed | (17,025 | ) | (16,068 | ) | (922 | ) | (154 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 4,687 | $ | 1,139 | $ | 2,090 | $ | 2,108 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 11,682 | $ | 11,882 | $ | 795 | $ | 1,055 | ||||||||
Distributions reinvested | 349 | 888 | 108 | 5 | ||||||||||||
Cost of shares redeemed | (14,448 | ) | (12,954 | ) | (223 | ) | (93 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (2,417 | ) | $ | (184 | ) | $ | 680 | $ | 967 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class I (a) | ||||||||||||||||
Proceeds from shares issued | $ | 49,518 | $ | 15,936 | $ | 33,484 | $ | 3,813 | ||||||||
Distributions reinvested | 7,882 | 8,203 | 1,875 | — | ||||||||||||
Cost of shares redeemed | (50,624 | ) | (32,141 | ) | (23,067 | ) | (391 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 6,776 | $ | (8,002 | ) | $ | 12,292 | $ | 3,422 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (b) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 20 | $ | — | ||||||||
Distributions reinvested | — | — | 2 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | 22 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 20 | $ | — | ||||||||
Distributions reinvested | — | — | 2 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | — | $ | — | $ | 22 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 1,555 | $ | — | ||||||||
Distributions reinvested | — | — | 2 | — | ||||||||||||
Cost of shares redeemed | — | — | (107 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | — | $ | — | $ | 1,450 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 51,871 | $ | 38,644 | ||||||||
Distributions reinvested | — | — | 14,939 | 15,729 | ||||||||||||
Cost of shares redeemed | — | — | (49,890 | ) | (55,810 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | $ | — | $ | 16,920 | $ | (1,437 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 46,416 | $ | 16,336 | ||||||||
Distributions reinvested | — | — | 2,907 | 2 | ||||||||||||
Cost of shares redeemed | — | — | (3,350 | ) | (128 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | — | $ | — | $ | 45,973 | $ | 16,210 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 9,046 | $ | (7,047 | ) | $ | 79,449 | $ | 21,270 | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective January 3, 2017 for JPMorgan Small Cap Core Fund. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Small Cap Core Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 55 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund) | JPMorgan Small Cap Core Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 656 | 554 | 51 | 44 | ||||||||||||
Reinvested | 255 | 331 | 5 | — | (a) | |||||||||||
Redeemed | (705 | ) | (784 | ) | (17 | ) | (3 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 206 | 101 | 39 | 41 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 657 | 773 | 14 | 21 | ||||||||||||
Reinvested | 21 | 62 | 2 | — | (a) | |||||||||||
Redeemed | (787 | ) | (793 | ) | (4 | ) | (2 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (109 | ) | 42 | 12 | 19 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I (b) | ||||||||||||||||
Issued | 1,801 | 694 | 598 | 75 | ||||||||||||
Reinvested | 305 | 395 | 35 | — | ||||||||||||
Redeemed | (1,787 | ) | (1,422 | ) | (429 | ) | (8 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 319 | (333 | ) | 204 | 67 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (c) | ||||||||||||||||
Issued | — | — | — | (a) | — | |||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | — | (a) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (c) | ||||||||||||||||
Issued | — | — | — | (a) | — | |||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | — | — | — | (a) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (c) | ||||||||||||||||
Issued | — | — | 29 | — | ||||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
Redeemed | — | — | (2 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | — | — | 27 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | — | — | 952 | 766 | ||||||||||||
Reinvested | — | — | 281 | 316 | ||||||||||||
Redeemed | — | — | (904 | ) | (1,110 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | — | 329 | (28 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | — | — | 840 | 320 | ||||||||||||
Reinvested | — | — | 55 | — | (a) | |||||||||||
Redeemed | — | — | (62 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | — | — | 833 | 318 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective January 3, 2017 for JPMorgan Small Cap Core Fund. |
(c) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Small Cap Core Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
56 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Equity Fund | JPMorgan Small Cap Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 261,260 | $ | 712,876 | $ | 143,219 | $ | 44,992 | ||||||||
Distributions reinvested | 58,136 | 33,701 | 16,796 | 5,928 | ||||||||||||
Cost of shares redeemed | (442,597 | ) | (501,564 | ) | (73,782 | ) | (82,003 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (123,201 | ) | $ | 245,013 | $ | 86,233 | $ | (31,083 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 6,912 | $ | 102,287 | $ | 27,470 | $ | 4,659 | ||||||||
Distributions reinvested | 10,428 | 5,234 | 2,267 | 747 | ||||||||||||
Cost of shares redeemed | (54,198 | ) | (23,821 | ) | (12,373 | ) | (7,991 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (36,858 | ) | $ | 83,700 | $ | 17,364 | $ | (2,585 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 728,118 | $ | 1,796,080 | $ | 214,425 | $ | 43,698 | ||||||||
Distributions reinvested | 127,579 | 56,261 | 10,622 | 3,134 | ||||||||||||
Cost of shares redeemed | (923,843 | ) | (712,211 | ) | (107,938 | ) | (66,724 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (68,146 | ) | $ | 1,140,130 | $ | 117,109 | $ | (19,892 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 174,119 | $ | 143,110 | ||||||||
Distributions reinvested | — | — | 21,436 | 8,911 | ||||||||||||
Cost of shares redeemed | — | — | (208,654 | ) | (142,376 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | — | $ | — | $ | (13,099 | ) | $ | 9,645 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 4,488 | $ | 11,048 | $ | 7,304 | $ | 3,047 | ||||||||
Distributions reinvested | 397 | 156 | 2,045 | 749 | ||||||||||||
Cost of shares redeemed | (6,823 | ) | (4,834 | ) | (7,260 | ) | (7,190 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (1,938 | ) | $ | 6,370 | $ | 2,089 | $ | (3,394 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 3,244 | $ | 100 | $ | 430 | $ | — | ||||||||
Distributions reinvested | 138 | 1 | 2 | — | ||||||||||||
Cost of shares redeemed | (1,138 | ) | — | (b) | (42 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 2,244 | $ | 101 | $ | 390 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 634 | $ | 68 | $ | 698 | $ | — | ||||||||
Distributions reinvested | 4 | — | (b) | 2 | — | |||||||||||
Cost of shares redeemed | (89 | ) | (12 | ) | (40 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 549 | $ | 56 | $ | 660 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 199,217 | $ | 537,839 | $ | 27,789 | $ | 2,006 | ||||||||
Distributions reinvested | 60,149 | 28,546 | 152 | 28 | ||||||||||||
Cost of shares redeemed | (374,064 | ) | (825,391 | ) | (1,442 | ) | (1,033 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (114,698 | ) | $ | (259,006 | ) | $ | 26,499 | $ | 1,001 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 631,942 | $ | 956,921 | $ | 505,197 | $ | 97,840 | ||||||||
Distributions reinvested | 74,202 | 19,663 | 54,603 | 15,303 | ||||||||||||
Cost of shares redeemed | (354,373 | ) | (122,500 | ) | (301,291 | ) | (94,751 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 351,771 | $ | 854,084 | $ | 258,509 | $ | 18,392 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 9,723 | $ | 2,070,448 | $ | 495,754 | $ | (27,916 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Equity Fund and July 31, 2017 for JPMorgan Small Cap Growth Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Growth Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 57 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Small Cap Equity Fund | JPMorgan Small Cap Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 5,187 | 15,821 | 8,439 | 3,363 | ||||||||||||
Reinvested | 1,180 | 733 | 1,070 | 476 | ||||||||||||
Redeemed | (8,823 | ) | (10,880 | ) | (4,457 | ) | (6,238 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (2,456 | ) | 5,674 | 5,052 | (2,399 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 183 | 2,965 | 2,182 | 448 | ||||||||||||
Reinvested | 283 | 149 | 196 | 79 | ||||||||||||
Redeemed | (1,432 | ) | (671 | ) | (1,007 | ) | (782 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (966 | ) | 2,443 | 1,371 | (255 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 12,557 | 34,733 | 11,500 | 2,997 | ||||||||||||
Reinvested | 2,241 | 1,069 | 615 | 231 | ||||||||||||
Redeemed | (16,281 | ) | (13,483 | ) | (5,782 | ) | (4,614 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (1,483 | ) | 22,319 | 6,333 | (1,386 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | — | — | 9,322 | 9,579 | ||||||||||||
Reinvested | — | — | 1,206 | 640 | ||||||||||||
Redeemed | — | — | (11,497 | ) | (9,866 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | — | — | (969 | ) | 353 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 91 | 248 | 448 | 236 | ||||||||||||
Reinvested | 8 | 3 | 135 | 62 | ||||||||||||
Redeemed | (137 | ) | (106 | ) | (451 | ) | (568 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (38 | ) | 145 | 132 | (270 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Issued | 66 | 2 | 26 | — | ||||||||||||
Reinvested | 3 | — | (b) | — | (b) | — | ||||||||||
Redeemed | (22 | ) | — | (b) | (2 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 47 | 2 | 24 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Issued | 11 | 1 | 41 | — | ||||||||||||
Reinvested | — | (b) | — | (b) | — | (b) | — | |||||||||
Redeemed | (2 | ) | — | (b) | (2 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 9 | 1 | 39 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Issued | 3,448 | 10,246 | 1,360 | 137 | ||||||||||||
Reinvested | 1,052 | 541 | 8 | 2 | ||||||||||||
Redeemed | (6,519 | ) | (16,447 | ) | (72 | ) | (68 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (2,019 | ) | (5,660 | ) | 1,296 | 71 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 11,211 | 18,906 | 26,133 | 6,529 | ||||||||||||
Reinvested | 1,298 | 372 | 3,044 | 1,091 | ||||||||||||
Redeemed | (6,135 | ) | (2,294 | ) | (15,867 | ) | (6,293 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 6,374 | 16,984 | 13,310 | 1,327 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Equity Fund and July 31, 2017 for JPMorgan Small Cap Growth Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Small Cap Growth Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
58 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Small Cap Value Fund | JPMorgan U.S. Small Company Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 60,386 | $ | 164,312 | $ | 44,296 | $ | 110,173 | ||||||||
Distributions reinvested | 23,733 | 2,757 | 12,503 | 184 | ||||||||||||
Cost of shares redeemed | (280,733 | ) | (295,769 | ) | (109,587 | ) | (135,423 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (196,614 | ) | $ | (128,700 | ) | $ | (52,788 | ) | $ | (25,066 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 2,007 | $ | 6,479 | $ | 6,012 | $ | 13,089 | ||||||||
Distributions reinvested | 2,038 | 145 | 2,725 | 3 | ||||||||||||
Cost of shares redeemed | (19,425 | ) | (14,435 | ) | (16,485 | ) | (17,634 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (15,380 | ) | $ | (7,811 | ) | $ | (7,748 | ) | $ | (4,542 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 110,534 | $ | 154,661 | $ | 100,489 | $ | 151,877 | ||||||||
Distributions reinvested | 23,006 | 1,883 | 24,711 | 921 | ||||||||||||
Cost of shares redeemed | (156,637 | ) | (126,507 | ) | (113,460 | ) | (113,193 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (23,097 | ) | $ | 30,037 | $ | 11,740 | $ | 39,605 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 99,730 | $ | 318,606 | ||||||||
Distributions reinvested | — | — | 40,197 | 3,378 | ||||||||||||
Cost of shares redeemed | — | — | (346,397 | ) | (322,926 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | — | $ | — | $ | (206,470 | ) | $ | (942 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 15,183 | $ | 27,657 | $ | 15,072 | $ | 24,052 | ||||||||
Distributions reinvested | 3,488 | 203 | 2,439 | 2 | ||||||||||||
Cost of shares redeemed | (35,329 | ) | (23,402 | ) | (23,258 | ) | (13,867 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (16,658 | ) | $ | 4,458 | $ | (5,747 | ) | $ | 10,187 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 9,713 | $ | 15,085 | $ | 8,039 | $ | 9,868 | ||||||||
Distributions reinvested | 786 | 2 | 870 | — | (b) | |||||||||||
Cost of shares redeemed | (11,467 | ) | (1,818 | ) | (1,973 | ) | (478 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | (968 | ) | $ | 13,269 | $ | 6,936 | $ | 9,390 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 55 | $ | 37 | $ | 5,108 | $ | 862 | ||||||||
Distributions reinvested | 6 | — | (b) | 270 | — | (b) | ||||||||||
Cost of shares redeemed | (1 | ) | — | (677 | ) | (81 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 60 | $ | 37 | $ | 4,701 | $ | 781 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 34,935 | $ | 74,810 | $ | 6,329 | $ | 142 | ||||||||
Distributions reinvested | 7,845 | 736 | 18 | — | (b) | |||||||||||
Cost of shares redeemed | (48,118 | ) | (59,662 | ) | (398 | ) | — | (b) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (5,338 | ) | $ | 15,884 | $ | 5,949 | $ | 142 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 210,275 | $ | 310,196 | $ | 189,990 | $ | 178,533 | ||||||||
Distributions reinvested | 65,764 | 7,344 | 23,112 | 1,023 | ||||||||||||
Cost of shares redeemed | (295,047 | ) | (203,402 | ) | (88,815 | ) | (53,305 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | (19,008 | ) | $ | 114,138 | $ | 124,287 | $ | 126,251 | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (277,003 | ) | $ | 41,312 | $ | (119,140 | ) | $ | 155,806 | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Small Company Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 59 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Small Cap Value Fund | JPMorgan U.S. Small Company Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 2,050 | 5,807 | 2,384 | 6,362 | ||||||||||||
Reinvested | 822 | 95 | 690 | 10 | ||||||||||||
Redeemed | (9,593 | ) | (10,507 | ) | (5,894 | ) | (7,832 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (6,721 | ) | (4,605 | ) | (2,820 | ) | (1,460 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 81 | 269 | 337 | 773 | ||||||||||||
Reinvested | 85 | 6 | 157 | — | (a) | |||||||||||
Redeemed | (783 | ) | (608 | ) | (924 | ) | (1,055 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (617 | ) | (333 | ) | (430 | ) | (282 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 3,529 | 5,207 | 5,279 | 8,467 | ||||||||||||
Reinvested | 752 | 62 | 1,332 | 50 | ||||||||||||
Redeemed | (5,046 | ) | (4,216 | ) | (5,956 | ) | (6,374 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (765 | ) | 1,053 | 655 | 2,143 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | — | — | 5,276 | 18,258 | ||||||||||||
Reinvested | — | — | 2,166 | 181 | ||||||||||||
Redeemed | — | — | (18,304 | ) | (18,084 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | — | — | (10,862 | ) | 355 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 522 | 979 | 827 | 1,399 | ||||||||||||
Reinvested | 122 | 7 | 137 | — | (a) | |||||||||||
Redeemed | (1,223 | ) | (835 | ) | (1,270 | ) | (814 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (579 | ) | 151 | (306 | ) | 585 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Issued | 325 | 520 | 434 | 557 | ||||||||||||
Reinvested | 27 | — | (a) | 48 | — | (a) | ||||||||||
Redeemed | (385 | ) | (61 | ) | (106 | ) | (27 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | (33 | ) | 459 | 376 | 530 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Issued | 2 | 1 | 266 | 47 | ||||||||||||
Reinvested | — | (a) | — | (a) | 15 | — | (a) | |||||||||
Redeemed | — | (a) | — | (35 | ) | (4 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 2 | 1 | 246 | 43 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Issued | 1,124 | 2,462 | 335 | 8 | ||||||||||||
Reinvested | 256 | 24 | 1 | — | (a) | |||||||||||
Redeemed | (1,535 | ) | (1,978 | ) | (20 | ) | — | (a) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (155 | ) | 508 | 316 | 8 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 6,791 | 10,248 | 10,065 | 9,897 | ||||||||||||
Reinvested | 2,143 | 240 | 1,243 | 55 | ||||||||||||
Redeemed | (9,407 | ) | (6,799 | ) | (4,637 | ) | (2,985 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | (473 | ) | 3,689 | 6,671 | 6,967 | |||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective September 9, 2016. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Small Company Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
60 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 61 |
Table of Contents
FOR THE PERIODS INDICATED
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 realized gain | ||||||||||||||||
JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund) | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended June 30, 2018 | $ | 22.03 | $ | (0.20 | ) | $ | 7.54 | $ | 7.34 | $ | (2.72 | ) | ||||||||
Year Ended June 30, 2017 | 19.14 | (0.16 | ) | 6.24 | 6.08 | (3.19 | ) | |||||||||||||
Year Ended June 30, 2016 | 26.04 | (0.16 | ) | (3.52 | ) | (3.68 | ) | (3.22 | ) | |||||||||||
Year Ended June 30, 2015 | 25.11 | (0.20 | ) | 3.17 | 2.97 | (2.04 | ) | |||||||||||||
Year Ended June 30, 2014 | 23.10 | (0.24 | ) | 4.44 | 4.20 | (2.19 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 17.12 | (0.24 | ) | 5.73 | 5.49 | (2.72 | ) | |||||||||||||
Year Ended June 30, 2017 | 15.58 | (0.21 | ) | 4.94 | 4.73 | (3.19 | ) | |||||||||||||
Year Ended June 30, 2016 | 21.97 | (0.22 | ) | (2.95 | ) | (3.17 | ) | (3.22 | ) | |||||||||||
Year Ended June 30, 2015 | 21.61 | (0.28 | ) | 2.68 | 2.40 | (2.04 | ) | |||||||||||||
Year Ended June 30, 2014 | 20.25 | (0.32 | ) | 3.87 | 3.55 | (2.19 | ) | |||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 24.83 | (0.15 | ) | 8.57 | 8.42 | (2.72 | ) | |||||||||||||
Year Ended June 30, 2017 | 21.17 | (0.12 | ) | 6.97 | 6.85 | (3.19 | ) | |||||||||||||
Year Ended June 30, 2016 | 28.34 | (0.14 | ) | (3.81 | ) | (3.95 | ) | (3.22 | ) | |||||||||||
Year Ended June 30, 2015 | 27.08 | (0.15 | ) | 3.45 | 3.30 | (2.04 | ) | |||||||||||||
Year Ended June 30, 2014 | 24.70 | (0.19 | ) | 4.76 | 4.57 | (2.19 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
SEE NOTES TO FINANCIAL STATEMENTS.
62 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 26.65 | 35.55 | % | $ | 85,586 | 1.24 | % | (0.81 | )% | 1.36 | % | 89 | % | |||||||||||||
22.03 | 34.99 | 66,189 | 1.25 | (0.78 | ) | 1.48 | 41 | |||||||||||||||||||
19.14 | (14.42 | ) | 55,583 | 1.25 | (0.76 | ) | 1.51 | 56 | ||||||||||||||||||
26.04 | 13.02 | 73,175 | 1.25 | (0.82 | ) | 1.44 | 48 | |||||||||||||||||||
25.11 | 18.56 | 86,997 | 1.33 | (0.95 | ) | 1.38 | 65 | |||||||||||||||||||
19.89 | 34.88 | 40,470 | 1.74 | (1.31 | ) | 1.83 | 89 | |||||||||||||||||||
17.12 | 34.25 | 36,707 | 1.74 | (1.28 | ) | 2.04 | 41 | |||||||||||||||||||
15.58 | (14.80 | ) | 32,734 | 1.75 | (1.27 | ) | 2.12 | 56 | ||||||||||||||||||
21.97 | 12.46 | 50,162 | 1.75 | (1.32 | ) | 2.02 | 48 | |||||||||||||||||||
21.61 | 17.93 | 55,458 | 1.83 | (1.45 | ) | 1.88 | 65 | |||||||||||||||||||
30.53 | 35.91 | 92,701 | 0.99 | (0.56 | ) | 1.08 | 89 | |||||||||||||||||||
24.83 | 35.29 | 67,496 | 1.00 | (0.53 | ) | 1.18 | 41 | |||||||||||||||||||
21.17 | (14.19 | ) | 64,589 | 1.00 | (0.57 | ) | 1.09 | 56 | ||||||||||||||||||
28.34 | 13.30 | 386,459 | 1.00 | (0.57 | ) | 1.11 | 48 | |||||||||||||||||||
27.08 | 18.87 | 417,048 | 1.06 | (0.69 | ) | 1.13 | 65 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 63 |
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 | ||||||||||||||||||||||
JPMorgan Small Cap Core Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 52.32 | $ | 0.04 | (e)(f) | $ | 9.19 | $ | 9.23 | $ | (0.01 | ) | $ | (4.38 | ) | $ | (4.39 | ) | ||||||||||
Year Ended June 30, 2017 | 45.88 | (0.04 | )(e) | 11.81 | 11.77 | (0.20 | ) | (5.13 | ) | (5.33 | ) | |||||||||||||||||
May 31, 2016 (g) through June 30, 2016 | 45.81 | 0.02 | (e)(f) | 0.05 | 0.07 | — | — | — | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 52.14 | (0.24 | )(e)(f) | 9.15 | 8.91 | — | (4.38 | ) | (4.38 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 45.86 | (0.24 | )(e) | 11.74 | 11.50 | (0.09 | ) | (5.13 | ) | (5.22 | ) | |||||||||||||||||
May 31, 2016 (g) through June 30, 2016 | 45.81 | — | (e)(f)(h) | 0.05 | 0.05 | — | — | — | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 52.58 | 0.17 | (e)(f) | 9.24 | 9.41 | (0.17 | ) | (4.38 | ) | (4.55 | ) | |||||||||||||||||
January 3, 2017 (g) through June 30, 2017 | 50.44 | 0.07 | (e) | 2.07 | 2.14 | — | — | — | ||||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 53.24 | (0.08 | )(e)(f) | 8.58 | 8.50 | (0.04 | ) | (4.38 | ) | (4.42 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 53.24 | 0.05 | (e)(f) | 8.58 | 8.63 | (0.09 | ) | (4.38 | ) | (4.47 | ) | |||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 53.24 | 0.18 | (e)(f) | 8.58 | 8.76 | (0.14 | ) | (4.38 | ) | (4.52 | ) | |||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 52.64 | 0.26 | (e)(f) | 9.28 | 9.54 | (0.17 | ) | (4.38 | ) | (4.55 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 45.90 | 0.20 | (e) | 11.83 | 12.03 | (0.16 | ) | (5.13 | ) | (5.29 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 56.18 | 0.15 | (e)(f) | (5.25 | ) | (5.10 | ) | (0.32 | ) | (4.86 | ) | (5.18 | ) | |||||||||||||||
Year Ended June 30, 2015 | 58.70 | 0.37 | (e) | 3.20 | 3.57 | (0.10 | ) | (5.99 | ) | (6.09 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 48.11 | 0.15 | (i) | 13.44 | 13.59 | (0.27 | ) | (2.73 | ) | (3.00 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 52.57 | 0.33 | (e)(f) | 9.23 | 9.56 | (0.20 | ) | (4.38 | ) | (4.58 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 45.90 | 0.29 | (e) | 11.76 | 12.05 | (0.25 | ) | (5.13 | ) | (5.38 | ) | |||||||||||||||||
May 31, 2016 (g) through June 30, 2016 | 45.81 | 0.04 | (e)(f) | 0.05 | 0.09 | — | — | — |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(e) | Calculated based upon average shares outstanding. |
(f) | 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. |
(g) | Commencement of offering of class of shares. |
(h) | Amount rounds to less than $0.005. |
(i) | Reflects special dividends paid out during the period by one of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.09 and the net investment income (loss) ratio would have been 0.17% for Class R5 Shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
64 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (b) | ||||||||||||||||||||
$ | 57.16 | 18.37 | % | $ | 4,624 | 1.24 | % | 0.07 | %(f) | 1.41 | % | 39 | % | |||||||||||||
52.32 | 26.29 | 2,203 | 1.24 | (0.07 | ) | 1.45 | 61 | |||||||||||||||||||
45.88 | 0.15 | 23 | 1.25 | 0.56 | (f) | 1.39 | 58 | |||||||||||||||||||
56.67 | 17.79 | 1,816 | 1.74 | (0.45 | )(f) | 1.90 | 39 | |||||||||||||||||||
52.14 | 25.68 | 1,017 | 1.74 | (0.47 | ) | 1.96 | 61 | |||||||||||||||||||
45.86 | 0.11 | 20 | 1.74 | 0.06 | (f) | 1.89 | 58 | |||||||||||||||||||
57.44 | 18.64 | 15,557 | 0.99 | 0.32 | (f) | 1.12 | 39 | |||||||||||||||||||
52.58 | 4.24 | 3,545 | 0.99 | 0.26 | 1.21 | 61 | ||||||||||||||||||||
57.32 | 16.67 | 24 | 1.49 | (0.15 | )(f) | 1.72 | 39 | |||||||||||||||||||
57.40 | 16.94 | 24 | 1.24 | 0.10 | (f) | 1.46 | 39 | |||||||||||||||||||
57.48 | 17.21 | 1,536 | 0.99 | 0.36 | (f) | 1.11 | 39 | |||||||||||||||||||
57.63 | 18.88 | 223,933 | 0.79 | 0.48 | (f) | 0.97 | 39 | |||||||||||||||||||
52.64 | 26.87 | 187,198 | 0.79 | 0.40 | 1.11 | 61 | ||||||||||||||||||||
45.90 | (8.97 | ) | 164,573 | 0.80 | 0.30 | (f) | 1.16 | 58 | ||||||||||||||||||
56.18 | 7.01 | 815,652 | 0.80 | 0.66 | 1.13 | 56 | ||||||||||||||||||||
58.70 | 28.95 | 703,307 | 0.79 | 0.28 | (i) | 1.12 | 51 | |||||||||||||||||||
57.55 | 18.95 | 66,306 | 0.74 | 0.59 | (f) | 0.86 | 39 | |||||||||||||||||||
52.57 | 26.94 | 16,782 | 0.74 | 0.56 | 0.98 | 61 | ||||||||||||||||||||
45.90 | 0.20 | 20 | 0.74 | 1.06 | (f) | 0.88 | 58 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 65 |
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 | ||||||||||||||||||||||
JPMorgan Small Cap Equity Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 48.63 | $ | 0.10 | $ | 6.67 | $ | 6.77 | $ | (0.10 | ) | $ | (2.87 | ) | $ | (2.97 | ) | |||||||||||
Year Ended June 30, 2017 | 41.68 | 0.11 | 8.21 | 8.32 | (0.12 | ) | (1.25 | ) | (1.37 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 44.68 | 0.13 | (f) | 0.08 | 0.21 | (0.14 | ) | (3.07 | ) | (3.21 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 46.56 | 0.08 | 2.98 | 3.06 | (0.08 | ) | (4.86 | ) | (4.94 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 39.94 | 0.10 | (g) | 8.97 | 9.07 | (0.07 | ) | (2.38 | ) | (2.45 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 37.07 | (0.12 | ) | 5.04 | 4.92 | — | (2.87 | ) | (2.87 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 32.21 | (0.09 | ) | 6.31 | 6.22 | (0.11 | ) | (1.25 | ) | (1.36 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 35.32 | (0.06 | )(f) | 0.02 | (0.04 | ) | — | (3.07 | ) | (3.07 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 37.96 | (0.12 | ) | 2.34 | 2.22 | — | (4.86 | ) | (4.86 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 33.06 | (0.10 | )(g) | 7.38 | 7.28 | — | (2.38 | ) | (2.38 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 55.69 | 0.26 | 7.67 | 7.93 | (0.23 | ) | (2.87 | ) | (3.10 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 47.50 | 0.28 | 9.37 | 9.65 | (0.21 | ) | (1.25 | ) | (1.46 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 50.31 | 0.25 | (f) | 0.17 | 0.42 | (0.16 | ) | (3.07 | ) | (3.23 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 51.78 | 0.24 | 3.36 | 3.60 | (0.21 | ) | (4.86 | ) | (5.07 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 44.14 | 0.26 | (g) | 9.94 | 10.20 | (0.18 | ) | (2.38 | ) | (2.56 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 47.81 | (0.03 | ) | 6.55 | 6.52 | (0.02 | ) | (2.87 | ) | (2.89 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 41.08 | — | (h) | 8.08 | 8.08 | (0.10 | ) | (1.25 | ) | (1.35 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 44.04 | 0.01 | (f) | 0.10 | 0.11 | — | (3.07 | ) | (3.07 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 45.99 | (0.04 | ) | 2.95 | 2.91 | — | (4.86 | ) | (4.86 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 39.52 | (0.01 | )(g) | 8.86 | 8.85 | — | (2.38 | ) | (2.38 | ) | ||||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 48.54 | 0.12 | 6.63 | 6.75 | (0.29 | ) | (2.87 | ) | (3.16 | ) | ||||||||||||||||||
September 9, 2016 (j) through June 30, 2017 | 43.22 | 0.12 | 6.68 | 6.80 | (0.23 | ) | (1.25 | ) | (1.48 | ) | ||||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 55.64 | 0.33 | 7.59 | 7.92 | (0.27 | ) | (2.87 | ) | (3.14 | ) | ||||||||||||||||||
September 9, 2016 (j) through June 30, 2017 | 49.28 | 0.23 | 7.63 | 7.86 | (0.25 | ) | (1.25 | ) | (1.50 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 55.84 | 0.37 | 7.70 | 8.07 | (0.35 | ) | (2.87 | ) | (3.22 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 47.57 | 0.36 | 9.42 | 9.78 | (0.26 | ) | (1.25 | ) | (1.51 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 50.43 | 0.36 | (f) | 0.15 | 0.51 | (0.30 | ) | (3.07 | ) | (3.37 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 51.88 | 0.34 | 3.37 | 3.71 | (0.30 | ) | (4.86 | ) | (5.16 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 44.21 | 0.36 | (g) | 9.96 | 10.32 | (0.27 | ) | (2.38 | ) | (2.65 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 55.83 | 0.41 | 7.69 | 8.10 | (0.38 | ) | (2.87 | ) | (3.25 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 47.57 | 0.46 | 9.34 | 9.80 | (0.29 | ) | (1.25 | ) | (1.54 | ) | ||||||||||||||||||
May 31, 2016 (j) through June 30, 2016 | 47.04 | 0.06 | (f) | 0.47 | 0.53 | — | — | — |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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. |
(g) | 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 $(0.04), $(0.21), $0.10, $(0.15) and $0.20 for Class A, Class C, Class I, Class R2 and Class R5 Shares, respectively, and the net investment income (loss) ratio would have been (0.09)%, (0.59)%, 0.21%, (0.34)% and 0.41% for Class A, Class C, Class I, Class R2 and Class R5 Class Shares, respectively. |
(h) | Amount rounds to less than $0.005. |
(i) | Amount rounds to less than 0.005%. |
(j) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
66 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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 (loss) | Expenses | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 52.43 | 14.33 | % | $ | 1,095,395 | 1.24 | % | 0.19 | % | 1.26 | % | 17 | % | |||||||||||||
48.63 | 20.14 | 1,135,394 | 1.29 | 0.24 | 1.35 | 21 | ||||||||||||||||||||
41.68 | 1.10 | 736,629 | 1.29 | 0.31 | (f) | 1.38 | 32 | |||||||||||||||||||
44.68 | 7.49 | 674,619 | 1.29 | 0.17 | 1.39 | 20 | ||||||||||||||||||||
46.56 | 23.27 | 738,967 | 1.29 | 0.23 | (g) | 1.37 | 30 | |||||||||||||||||||
39.12 | 13.76 | 143,030 | 1.74 | (0.32 | ) | 1.76 | 17 | |||||||||||||||||||
37.07 | 19.53 | 171,352 | 1.79 | (0.25 | ) | 1.84 | 21 | |||||||||||||||||||
32.21 | 0.63 | 70,176 | 1.79 | (0.20 | )(f) | 1.85 | 32 | |||||||||||||||||||
35.32 | 6.92 | 35,783 | 1.79 | (0.33 | ) | 1.87 | 20 | |||||||||||||||||||
37.96 | 22.67 | 39,824 | 1.79 | (0.26 | )(g) | 1.87 | 30 | |||||||||||||||||||
60.52 | 14.61 | 2,868,739 | 0.98 | 0.45 | 1.00 | 17 | ||||||||||||||||||||
55.69 | 20.50 | 2,722,213 | 0.99 | 0.54 | 1.07 | 21 | ||||||||||||||||||||
47.50 | 1.41 | 1,261,772 | 0.99 | 0.54 | (f) | 1.14 | 32 | |||||||||||||||||||
50.31 | 7.81 | 1,435,112 | 0.99 | 0.48 | 1.14 | 20 | ||||||||||||||||||||
51.78 | 23.65 | 1,443,768 | 0.99 | 0.53 | (g) | 1.12 | 30 | |||||||||||||||||||
51.44 | 14.02 | 12,133 | 1.49 | (0.06 | ) | 1.52 | 17 | |||||||||||||||||||
47.81 | 19.85 | 13,078 | 1.53 | 0.00 | (i) | 1.73 | 21 | |||||||||||||||||||
41.08 | 0.85 | 5,313 | 1.54 | 0.03 | (f) | 1.72 | 32 | |||||||||||||||||||
44.04 | 7.23 | 3,446 | 1.54 | (0.08 | ) | 1.73 | 20 | |||||||||||||||||||
45.99 | 22.95 | 3,883 | 1.54 | (0.02 | )(g) | 1.62 | 30 | |||||||||||||||||||
52.13 | 14.33 | 2,542 | 1.23 | 0.24 | 1.30 | 17 | ||||||||||||||||||||
48.54 | 15.92 | 104 | 1.24 | 0.32 | 1.36 | 21 | ||||||||||||||||||||
60.42 | 14.61 | 624 | 0.98 | 0.57 | 1.07 | 17 | ||||||||||||||||||||
55.64 | 16.14 | 60 | 0.99 | 0.55 | 1.14 | 21 | ||||||||||||||||||||
60.69 | 14.83 | 1,255,251 | 0.79 | 0.64 | 0.85 | 17 | ||||||||||||||||||||
55.84 | 20.74 | 1,267,593 | 0.79 | 0.68 | 0.86 | 21 | ||||||||||||||||||||
47.57 | 1.62 | 1,349,107 | 0.79 | 0.78 | (f) | 0.86 | 32 | |||||||||||||||||||
50.43 | 8.03 | 1,244,878 | 0.79 | 0.68 | 0.89 | 20 | ||||||||||||||||||||
51.88 | 23.90 | 1,177,534 | 0.79 | 0.73 | (g) | 0.92 | 30 | |||||||||||||||||||
60.68 | 14.89 | 1,450,525 | 0.73 | 0.71 | 0.75 | 17 | ||||||||||||||||||||
55.83 | 20.80 | 978,649 | 0.74 | 0.85 | 0.76 | 21 | ||||||||||||||||||||
47.57 | 1.13 | 25,933 | 0.73 | 1.60 | (f) | 0.75 | 32 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 67 |
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 realized gain | ||||||||||||||||
JPMorgan Small Cap Growth Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended June 30, 2018 | $ | 14.81 | $ | (0.14 | )(f) | $ | 5.11 | $ | 4.97 | $ | (1.33 | ) | ||||||||
Year Ended June 30, 2017 | 11.43 | (0.10 | ) | 3.94 | 3.84 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 14.50 | (0.09 | ) | (1.94 | ) | (2.03 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 13.96 | (0.11 | )(f) | 1.77 | 1.66 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 13.00 | (0.12 | ) | 2.52 | 2.40 | (1.44 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 11.23 | (0.16 | )(f) | 3.81 | 3.65 | (1.33 | ) | |||||||||||||
Year Ended June 30, 2017 | 8.82 | (0.13 | ) | 3.00 | 2.87 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 11.50 | (0.12 | ) | (1.52 | ) | (1.64 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 11.36 | (0.14 | )(f) | 1.40 | 1.26 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 10.87 | (0.16 | ) | 2.09 | 1.93 | (1.44 | ) | |||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 16.18 | (0.11 | )(f) | 5.61 | 5.50 | (1.33 | ) | |||||||||||||
Year Ended June 30, 2017 | 12.42 | (0.07 | ) | 4.29 | 4.22 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 15.61 | (0.07 | ) | (2.08 | ) | (2.15 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 14.91 | (0.08 | )(f) | 1.90 | 1.82 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 13.77 | (0.09 | ) | 2.67 | 2.58 | (1.44 | ) | |||||||||||||
Class L | ||||||||||||||||||||
Year Ended June 30, 2018 | 16.60 | (0.08 | )(f) | 5.76 | 5.68 | (1.33 | ) | |||||||||||||
Year Ended June 30, 2017 | 12.72 | (0.05 | ) | 4.39 | 4.34 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 15.93 | (0.05 | ) | (2.12 | ) | (2.17 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 15.17 | (0.06 | )(f) | 1.94 | 1.88 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 13.96 | (0.07 | ) | 2.72 | 2.65 | (1.44 | ) | |||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended June 30, 2018 | 14.39 | (0.17 | )(f) | 4.95 | 4.78 | (1.33 | ) | |||||||||||||
Year Ended June 30, 2017 | 11.15 | (0.13 | ) | 3.83 | 3.70 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 14.20 | (0.12 | ) | (1.89 | ) | (2.01 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 13.73 | (0.14 | )(f) | 1.73 | 1.59 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 12.84 | (0.16 | ) | 2.49 | 2.33 | (1.44 | ) | |||||||||||||
Class R3 | ||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 15.17 | (0.13 | )(f) | 4.74 | 4.61 | (1.33 | ) | |||||||||||||
Class R4 | ||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 15.17 | (0.09 | )(f) | 4.75 | 4.66 | (1.33 | ) | |||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended June 30, 2018 | 16.60 | (0.07 | )(f) | 5.76 | 5.69 | (1.33 | ) | |||||||||||||
September 9, 2016 (g) through June 30, 2017 | 13.75 | (0.04 | ) | 3.35 | 3.31 | (0.46 | ) | |||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended June 30, 2018 | 16.73 | (0.06 | )(f) | 5.82 | 5.76 | (1.33 | ) | |||||||||||||
Year Ended June 30, 2017 | 12.80 | (0.04 | ) | 4.43 | 4.39 | (0.46 | ) | |||||||||||||
Year Ended June 30, 2016 | 16.01 | (0.03 | ) | (2.14 | ) | (2.17 | ) | (1.04 | ) | |||||||||||
Year Ended June 30, 2015 | 15.23 | (0.05 | )(f) | 1.95 | 1.90 | (1.12 | ) | |||||||||||||
Year Ended June 30, 2014 | 14.00 | (0.06 | ) | 2.73 | 2.67 | (1.44 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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. |
(g) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
68 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets (a) | ||||||||||||||||||||||||||
Net asset period | Total return (excludes sales charge) (c)(d) | Net assets, end of period (000’s) | Net expenses (e) | Net income | Expenses | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 18.45 | 35.14 | % | $ | 337,933 | 1.24 | % | (0.83 | )%(f) | 1.29 | % | 58 | % | |||||||||||||
14.81 | 34.36 | 196,403 | 1.24 | (0.75 | ) | 1.40 | 42 | |||||||||||||||||||
11.43 | (14.17 | ) | 179,093 | 1.25 | (0.77 | ) | 1.50 | 47 | ||||||||||||||||||
14.50 | 13.04 | 266,805 | 1.25 | (0.82 | )(f) | 1.42 | 50 | |||||||||||||||||||
13.96 | 18.94 | 282,408 | 1.25 | (0.86 | ) | 1.37 | 58 | |||||||||||||||||||
13.55 | 34.56 | 43,116 | 1.74 | (1.32 | )(f) | 1.77 | 58 | |||||||||||||||||||
11.23 | 33.51 | 20,352 | 1.74 | (1.25 | ) | 1.85 | 42 | |||||||||||||||||||
8.82 | (14.50 | ) | 18,218 | 1.75 | (1.27 | ) | 1.91 | 47 | ||||||||||||||||||
11.50 | 12.47 | 26,297 | 1.75 | (1.32 | )(f) | 1.87 | 50 | |||||||||||||||||||
11.36 | 18.29 | 28,035 | 1.75 | (1.36 | ) | 1.87 | 58 | |||||||||||||||||||
20.35 | 35.45 | 268,082 | 0.99 | (0.57 | )(f) | 1.02 | 58 | |||||||||||||||||||
16.18 | 34.69 | 110,644 | 1.00 | (0.50 | ) | 1.12 | 42 | |||||||||||||||||||
12.42 | (13.92 | ) | 102,174 | 1.00 | (0.52 | ) | 1.18 | 47 | ||||||||||||||||||
15.61 | 13.29 | 157,631 | 1.00 | (0.57 | )(f) | 1.16 | 50 | |||||||||||||||||||
14.91 | 19.20 | 156,585 | 1.00 | (0.62 | ) | 1.12 | 58 | |||||||||||||||||||
20.95 | 35.65 | 434,286 | 0.84 | (0.43 | )(f) | 0.86 | 58 | |||||||||||||||||||
16.60 | 34.82 | 360,044 | 0.85 | (0.35 | ) | 0.93 | 42 | |||||||||||||||||||
12.72 | (13.76 | ) | 271,369 | 0.85 | (0.35 | ) | 0.96 | 47 | ||||||||||||||||||
15.93 | 13.47 | 279,248 | 0.85 | (0.42 | )(f) | 0.95 | 50 | |||||||||||||||||||
15.17 | 19.46 | 302,087 | 0.85 | (0.46 | ) | 0.97 | 58 | |||||||||||||||||||
17.84 | 34.83 | 31,569 | 1.49 | (1.08 | )(f) | 1.52 | 58 | |||||||||||||||||||
14.39 | 33.96 | 23,569 | 1.49 | (1.00 | ) | 1.70 | 42 | |||||||||||||||||||
11.15 | (14.34 | ) | 21,276 | 1.50 | (1.01 | ) | 1.85 | 47 | ||||||||||||||||||
14.20 | 12.74 | 28,364 | 1.50 | (1.07 | )(f) | 1.72 | 50 | |||||||||||||||||||
13.73 | 18.62 | 31,119 | 1.50 | (1.11 | ) | 1.62 | 58 | |||||||||||||||||||
18.45 | 31.93 | 446 | 1.23 | (0.80 | )(f) | 1.28 | 58 | |||||||||||||||||||
18.50 | 32.28 | 726 | 0.99 | (0.53 | )(f) | 1.17 | 58 | |||||||||||||||||||
20.96 | 35.71 | 28,656 | 0.84 | (0.37 | )(f) | 0.88 | 58 | |||||||||||||||||||
16.60 | 24.72 | 1,186 | 0.82 | (0.31 | ) | 0.84 | 42 | |||||||||||||||||||
21.16 | 35.86 | 1,045,098 | 0.74 | (0.32 | )(f) | 0.76 | 58 | |||||||||||||||||||
16.73 | 34.99 | 603,730 | 0.75 | (0.25 | ) | 0.76 | 42 | |||||||||||||||||||
12.80 | (13.69 | ) | 445,008 | 0.75 | (0.25 | ) | 0.77 | 47 | ||||||||||||||||||
16.01 | 13.55 | 486,724 | 0.75 | (0.31 | )(f) | 0.79 | 50 | |||||||||||||||||||
15.23 | 19.55 | 355,032 | 0.75 | (0.36 | ) | 0.87 | 58 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 69 |
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 | ||||||||||||||||||||||
JPMorgan Small Cap Value Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 29.18 | $ | 0.20 | (f) | $ | 3.01 | $ | 3.21 | $ | (0.23 | ) | $ | (1.74 | ) | $ | (1.97 | ) | ||||||||||
Year Ended June 30, 2017 | 24.64 | 0.11 | (f) | 4.58 | 4.69 | (0.13 | ) | (0.02 | ) | (0.15 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 26.65 | 0.17 | (0.94 | ) | (0.77 | ) | (0.15 | ) | (1.09 | ) | (1.24 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 27.98 | 0.22 | (0.01 | ) | 0.21 | (0.20 | ) | (1.34 | ) | (1.54 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 23.77 | 0.12 | (g) | 4.87 | 4.99 | (0.11 | ) | (0.67 | ) | (0.78 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 24.55 | 0.04 | (f) | 2.50 | 2.54 | (0.14 | ) | (1.74 | ) | (1.88 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 20.82 | (0.05 | )(f) | 3.87 | 3.82 | (0.07 | ) | (0.02 | ) | (0.09 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 22.77 | 0.02 | (0.82 | ) | (0.80 | ) | (0.06 | ) | (1.09 | ) | (1.15 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 24.19 | 0.05 | (0.02 | ) | 0.03 | (0.11 | ) | (1.34 | ) | (1.45 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 20.73 | (0.03 | )(g) | 4.22 | 4.19 | (0.06 | ) | (0.67 | ) | (0.73 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 30.80 | 0.30 | (f) | 3.18 | 3.48 | (0.29 | ) | (1.74 | ) | (2.03 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 25.97 | 0.20 | (f) | 4.81 | 5.01 | (0.16 | ) | (0.02 | ) | (0.18 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 28.00 | 0.23 | (0.97 | ) | (0.74 | ) | (0.20 | ) | (1.09 | ) | (1.29 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.31 | 0.31 | (0.02 | ) | 0.29 | (0.26 | ) | (1.34 | ) | (1.60 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 24.86 | 0.20 | (g) | 5.09 | 5.29 | (0.17 | ) | (0.67 | ) | (0.84 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 28.94 | 0.12 | (f) | 2.98 | 3.10 | (0.17 | ) | (1.74 | ) | (1.91 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 24.48 | 0.04 | (f) | 4.53 | 4.57 | (0.09 | ) | (0.02 | ) | (0.11 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 26.49 | 0.11 | (0.94 | ) | (0.83 | ) | (0.09 | ) | (1.09 | ) | (1.18 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 27.83 | 0.16 | (0.02 | ) | 0.14 | (0.14 | ) | (1.34 | ) | (1.48 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 23.67 | 0.07 | (g) | 4.83 | 4.90 | (0.07 | ) | (0.67 | ) | (0.74 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 29.14 | 0.20 | (f) | 3.01 | 3.21 | (0.23 | ) | (1.74 | ) | (1.97 | ) | |||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 25.89 | 0.12 | (f) | 3.31 | 3.43 | (0.16 | ) | (0.02 | ) | (0.18 | ) | |||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 30.77 | 0.32 | (f) | 3.14 | 3.46 | (0.28 | ) | (1.74 | ) | (2.02 | ) | |||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 27.30 | 0.18 | (f) | 3.49 | 3.67 | (0.18 | ) | (0.02 | ) | (0.20 | ) | |||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 30.80 | 0.35 | (f) | 3.17 | 3.52 | (0.32 | ) | (1.74 | ) | (2.06 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 25.97 | 0.23 | (f) | 4.81 | 5.04 | (0.19 | ) | (0.02 | ) | (0.21 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 28.01 | 0.26 | (0.98 | ) | (0.72 | ) | (0.23 | ) | (1.09 | ) | (1.32 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.31 | 0.34 | (0.02 | ) | 0.32 | (0.28 | ) | (1.34 | ) | (1.62 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 24.85 | 0.23 | (g) | 5.09 | 5.32 | (0.19 | ) | (0.67 | ) | (0.86 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 30.83 | 0.38 | (f) | 3.18 | 3.56 | (0.35 | ) | (1.74 | ) | (2.09 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 25.99 | 0.27 | (f) | 4.82 | 5.09 | (0.23 | ) | (0.02 | ) | (0.25 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 28.03 | 0.31 | (1.00 | ) | (0.69 | ) | (0.26 | ) | (1.09 | ) | (1.35 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.33 | 0.37 | (0.02 | ) | 0.35 | (0.31 | ) | (1.34 | ) | (1.65 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 24.87 | 0.24 | (g) | 5.09 | 5.33 | (0.20 | ) | (0.67 | ) | (0.87 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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. |
(g) | Reflects special dividends paid out during the period by one of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.11, $(0.05), $0.18, $0.05, $0.22 and $0.23 for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively, and the net investment income (loss) ratio would have been 0.41%, (0.20)%, 0.66%, 0.20%, 0.79% and 0.82% for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
70 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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 income | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 30.42 | 11.41 | % | $ | 336,054 | 1.24 | % | 0.67 | %(f) | 1.30 | % | 39 | % | |||||||||||||
29.18 | 19.01 | 518,464 | 1.24 | 0.39 | (f) | 1.44 | 41 | |||||||||||||||||||
24.64 | (2.54 | ) | 551,313 | 1.25 | 0.69 | 1.53 | 46 | |||||||||||||||||||
26.65 | 1.04 | 618,977 | 1.24 | 0.84 | 1.44 | 38 | ||||||||||||||||||||
27.98 | 21.24 | 516,950 | 1.24 | 0.46 | (g) | 1.40 | 40 | |||||||||||||||||||
25.21 | 10.80 | 25,885 | 1.75 | 0.14 | (f) | 1.78 | 39 | |||||||||||||||||||
24.55 | 18.32 | 40,349 | 1.85 | (0.21 | )(f) | 1.86 | 41 | |||||||||||||||||||
20.82 | (3.12 | ) | 41,161 | 1.86 | 0.07 | 1.94 | 46 | |||||||||||||||||||
22.77 | 0.42 | 49,815 | 1.85 | 0.23 | 1.89 | 38 | ||||||||||||||||||||
24.19 | 20.45 | 52,909 | 1.84 | (0.15 | )(g) | 1.89 | 40 | |||||||||||||||||||
32.25 | 11.70 | 336,366 | 0.99 | 0.96 | (f) | 1.01 | 39 | |||||||||||||||||||
30.80 | 19.30 | 344,875 | 0.99 | 0.67 | (f) | 1.11 | 41 | |||||||||||||||||||
25.97 | (2.28 | ) | 263,436 | 1.00 | 0.88 | 1.18 | 46 | |||||||||||||||||||
28.00 | 1.27 | 495,605 | 0.99 | 1.10 | 1.14 | 38 | ||||||||||||||||||||
29.31 | 21.52 | 404,848 | 0.99 | 0.71 | (g) | 1.15 | 40 | |||||||||||||||||||
30.13 | 11.12 | 45,300 | 1.52 | 0.41 | (f) | 1.63 | 39 | |||||||||||||||||||
28.94 | 18.68 | 60,282 | 1.52 | 0.14 | (f) | 1.75 | 41 | |||||||||||||||||||
24.48 | (2.78 | ) | 47,309 | 1.50 | 0.45 | 1.91 | 46 | |||||||||||||||||||
26.49 | 0.77 | 48,675 | 1.49 | 0.59 | 1.76 | 38 | ||||||||||||||||||||
27.83 | 20.95 | 47,939 | 1.49 | 0.25 | (g) | 1.66 | 40 | |||||||||||||||||||
30.38 | 11.42 | 12,948 | 1.25 | 0.67 | (f) | 1.29 | 39 | |||||||||||||||||||
29.14 | 13.24 | 13,390 | 1.27 | 0.53 | (f) | 1.28 | 41 | |||||||||||||||||||
32.21 | 11.65 | 102 | 1.01 | 1.03 | (f) | 1.27 | 39 | |||||||||||||||||||
30.77 | 13.44 | 39 | 1.06 | 0.75 | (f) | 1.10 | 41 | |||||||||||||||||||
32.26 | 11.85 | 131,506 | 0.84 | 1.11 | (f) | 0.87 | 39 | |||||||||||||||||||
30.80 | 19.43 | 130,338 | 0.88 | 0.77 | (f) | 0.89 | 41 | |||||||||||||||||||
25.97 | (2.21 | ) | 96,674 | 0.90 | 1.04 | 0.93 | 46 | |||||||||||||||||||
28.01 | 1.39 | 103,149 | 0.91 | 1.19 | 0.93 | 38 | ||||||||||||||||||||
29.31 | 21.67 | 79,792 | 0.90 | 0.85 | (g) | 0.95 | 40 | |||||||||||||||||||
32.30 | 11.97 | 1,040,121 | 0.74 | 1.21 | (f) | 0.76 | 39 | |||||||||||||||||||
30.83 | 19.59 | 1,007,466 | 0.76 | 0.90 | (f) | 0.76 | 41 | |||||||||||||||||||
25.99 | (2.07 | ) | 753,439 | 0.77 | 1.21 | 0.77 | 46 | |||||||||||||||||||
28.03 | 1.49 | 554,522 | 0.79 | 1.32 | 0.81 | 38 | ||||||||||||||||||||
29.33 | 21.71 | 453,645 | 0.85 | 0.87 | (g) | 0.90 | 40 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 71 |
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 | ||||||||||||||||||||||
JPMorgan U.S. Small Company Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 18.10 | $ | — | (f)(h) | $ | 2.69 | $ | 2.69 | $ | — | $ | (1.19 | ) | $ | (1.19 | ) | |||||||||||
Year Ended June 30, 2017 | 15.09 | — | (f)(h) | 3.02 | 3.02 | (0.01 | ) | — | (f) | (0.01 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 16.96 | 0.02 | (1.20 | ) | (1.18 | ) | (0.02 | ) | (0.67 | ) | (0.69 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.25 | 0.03 | 1.22 | 1.25 | — | (0.54 | ) | (0.54 | ) | |||||||||||||||||||
Year Ended June 30, 2014 | 13.17 | (0.01 | )(i) | 3.39 | 3.38 | (0.01 | ) | (0.29 | ) | (0.30 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 17.40 | (0.09 | )(h) | 2.58 | 2.49 | — | (1.19 | ) | (1.19 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 14.57 | (0.08 | )(h) | 2.91 | 2.83 | — | — | (f) | — | (f) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.46 | (0.05 | ) | (1.17 | ) | (1.22 | ) | — | (0.67 | ) | (0.67 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.86 | (0.05 | ) | 1.19 | 1.14 | — | (0.54 | ) | (0.54 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.91 | (0.08 | )(i) | 3.32 | 3.24 | — | (0.29 | ) | (0.29 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.47 | 0.05 | (h) | 2.75 | 2.80 | (0.03 | ) | (1.19 | ) | (1.22 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 15.40 | 0.04 | (h) | 3.08 | 3.12 | (0.05 | ) | — | (f) | (0.05 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 17.29 | 0.06 | (1.22 | ) | (1.16 | ) | (0.06 | ) | (0.67 | ) | (0.73 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.53 | 0.08 | 1.24 | 1.32 | (0.02 | ) | (0.54 | ) | (0.56 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.37 | 0.03 | (i) | 3.45 | 3.48 | (0.03 | ) | (0.29 | ) | (0.32 | ) | |||||||||||||||||
Class L | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.46 | 0.08 | (h) | 2.76 | 2.84 | (0.06 | ) | (1.19 | ) | (1.25 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 15.39 | 0.08 | (h) | 3.08 | 3.16 | (0.09 | ) | — | (f) | (0.09 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 17.28 | 0.10 | (1.24 | ) | (1.14 | ) | (0.08 | ) | (0.67 | ) | (0.75 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.51 | 0.11 | 1.24 | 1.35 | (0.04 | ) | (0.54 | ) | (0.58 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.35 | 0.06 | (i) | 3.44 | 3.50 | (0.05 | ) | (0.29 | ) | (0.34 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 17.81 | (0.05 | )(h) | 2.65 | 2.60 | — | (1.19 | ) | (1.19 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 14.88 | (0.04 | )(h) | 2.97 | 2.93 | — | — | (f) | — | (f) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.77 | (0.01 | ) | (1.19 | ) | (1.20 | ) | (0.02 | ) | (0.67 | ) | (0.69 | ) | |||||||||||||||
Year Ended June 30, 2015 | 16.12 | (0.01 | ) | 1.20 | 1.19 | — | (0.54 | ) | (0.54 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.09 | (0.05 | )(i) | 3.38 | 3.33 | (0.01 | ) | (0.29 | ) | (0.30 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.03 | 0.01 | (h) | 2.68 | 2.69 | (0.03 | ) | (1.19 | ) | (1.22 | ) | |||||||||||||||||
September 9, 2016 (j) through June 30, 2017 | 16.02 | 0.04 | (h) | 2.04 | 2.08 | (0.07 | ) | — | (f) | (0.07 | ) | |||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.44 | 0.05 | (h) | 2.75 | 2.80 | (0.07 | ) | (1.19 | ) | (1.26 | ) | |||||||||||||||||
September 9, 2016 (j) through June 30, 2017 | 16.36 | 0.13 | (h) | 2.04 | 2.17 | (0.09 | ) | — | (f) | (0.09 | ) | |||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.45 | 0.08 | (h) | 2.74 | 2.82 | (0.07 | ) | (1.19 | ) | (1.26 | ) | |||||||||||||||||
September 9, 2016 (j) through June 30, 2017 | 16.35 | 0.07 | (h) | 2.13 | 2.20 | (0.10 | ) | — | (f) | (0.10 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.48 | 0.10 | (h) | 2.76 | 2.86 | (0.08 | ) | (1.19 | ) | (1.27 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 15.40 | 0.10 | (h) | 3.08 | 3.18 | (0.10 | ) | — | (f) | (0.10 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 17.29 | 0.11 | (1.23 | ) | (1.12 | ) | (0.10 | ) | (0.67 | ) | (0.77 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.52 | 0.12 | 1.24 | 1.36 | (0.05 | ) | (0.54 | ) | (0.59 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.35 | 0.06 | (i) | 3.46 | 3.52 | (0.06 | ) | (0.29 | ) | (0.35 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Amount rounds to less than $0.005. |
(g) | Amount rounds to less than 0.005%. |
(h) | 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. |
(i) | Reflects special dividends paid out during the period by one of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income(loss) per share would have been $(0.02), $(0.09), $0.02, $0.05, $(0.05), and $0.06 for Class A, Class C, Class I, Class L, Class R2 and Class R6 Shares, respectively, and the net investment income (loss) ratio would have been (0.12)%, (0.61)%, 0.13%, 0.34%, (0.36)% and 0.38% for Class A, Class C, Class I, Class L, Class R2 and Class R6 Class Shares, respectively. |
(j) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
72 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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| 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 (loss) | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 19.60 | 15.40 | % | $ | 210,050 | 1.22 | % | 0.00 | %(g)(h) | 1.23 | % | 52 | % | |||||||||||||
18.10 | 20.04 | 244,958 | 1.25 | (0.01 | )(h) | 1.35 | 53 | |||||||||||||||||||
15.09 | (6.86 | ) | 226,309 | 1.26 | 0.15 | 1.44 | 49 | |||||||||||||||||||
16.96 | 7.98 | 240,064 | 1.25 | 0.21 | 1.40 | 56 | ||||||||||||||||||||
16.25 | 25.86 | 126,858 | 1.25 | (0.08 | )(i) | 1.34 | 51 | |||||||||||||||||||
18.70 | 14.85 | 45,633 | 1.73 | (0.50 | )(h) | 1.73 | 52 | |||||||||||||||||||
17.40 | 19.43 | 49,946 | 1.75 | (0.51 | )(h) | 1.85 | 53 | |||||||||||||||||||
14.57 | (7.35 | ) | 45,932 | 1.76 | (0.34 | ) | 1.91 | 49 | ||||||||||||||||||
16.46 | 7.47 | 45,202 | 1.75 | (0.28 | ) | 1.88 | 56 | |||||||||||||||||||
15.86 | 25.27 | 22,539 | 1.75 | (0.57 | )(i) | 1.84 | 51 | |||||||||||||||||||
20.05 | 15.73 | 433,317 | 0.96 | 0.27 | (h) | 0.97 | 52 | |||||||||||||||||||
18.47 | 20.29 | 387,043 | 1.01 | 0.25 | (h) | 1.05 | 53 | |||||||||||||||||||
15.40 | (6.63 | ) | 289,631 | 1.00 | 0.42 | 1.11 | 49 | |||||||||||||||||||
17.29 | 8.25 | 246,645 | 1.00 | 0.45 | 1.11 | 56 | ||||||||||||||||||||
16.53 | 26.21 | 160,279 | 1.00 | 0.17 | (i) | 1.09 | 51 | |||||||||||||||||||
20.05 | 15.95 | 554,361 | 0.81 | 0.42 | (h) | 0.82 | 52 | |||||||||||||||||||
18.46 | 20.50 | 711,139 | 0.82 | 0.43 | (h) | 0.87 | 53 | |||||||||||||||||||
15.39 | (6.48 | ) | 587,279 | 0.82 | 0.63 | 0.90 | 49 | |||||||||||||||||||
17.28 | 8.49 | 352,036 | 0.82 | 0.64 | 0.94 | 56 | ||||||||||||||||||||
16.51 | 26.42 | 216,698 | 0.82 | 0.39 | (i) | 0.94 | 51 | |||||||||||||||||||
19.22 | 15.13 | 49,715 | 1.48 | (0.25 | )(h) | 1.48 | 52 | |||||||||||||||||||
17.81 | 19.70 | 51,511 | 1.50 | (0.24 | )(h) | 1.69 | 53 | |||||||||||||||||||
14.88 | (7.09 | ) | 34,326 | 1.51 | (0.05 | ) | 1.75 | 49 | ||||||||||||||||||
16.77 | 7.66 | 17,846 | 1.50 | (0.04 | ) | 1.66 | 56 | |||||||||||||||||||
16.12 | 25.66 | 9,785 | 1.50 | (0.32 | )(i) | 1.59 | 51 | |||||||||||||||||||
19.50 | 15.49 | 17,655 | 1.21 | 0.04 | (h) | 1.21 | 52 | |||||||||||||||||||
18.03 | 13.01 | 9,560 | 1.23 | 0.25 | (h) | 1.24 | 53 | |||||||||||||||||||
19.98 | 15.73 | 5,773 | 1.01 | 0.28 | (h) | 1.04 | 52 | |||||||||||||||||||
18.44 | 13.24 | 794 | 1.00 | 0.89 | (h) | 1.07 | 53 | |||||||||||||||||||
20.01 | 15.83 | 6,491 | 0.85 | 0.43 | (h) | 0.86 | 52 | |||||||||||||||||||
18.45 | 13.44 | 145 | 0.83 | 0.51 | (h) | 0.90 | 53 | |||||||||||||||||||
20.07 | 16.05 | 455,851 | 0.71 | 0.53 | (h) | 0.72 | 52 | |||||||||||||||||||
18.48 | 20.64 | 296,577 | 0.72 | 0.55 | (h) | 0.72 | 53 | |||||||||||||||||||
15.40 | (6.39 | ) | 139,835 | 0.73 | 0.71 | 0.74 | 49 | |||||||||||||||||||
17.29 | 8.54 | 69,755 | 0.73 | 0.73 | 0.76 | 56 | ||||||||||||||||||||
16.52 | 26.54 | 45,604 | 0.75 | 0.42 | (i) | 0.84 | 51 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 73 |
Table of Contents
AS OF JUNE 30, 2018
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 6 separate funds of the Trusts (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Trust | Diversified/Non-Diversified | ||||
JPMorgan Small Cap Blend Fund* | Class A, Class C, Class I and Class R6** | JPM I | Diversified | |||
JPMorgan Small Cap Core Fund | Class A, Class C, Class I, Class R2***, Class R3***, Class R4***, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Small Cap Equity Fund | Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Small Cap Growth Fund | Class A, Class C, Class I, Class L, Class R2, Class R3****, Class R4****, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan Small Cap Value Fund | Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan U.S. Small Company Fund | Class A, Class C, Class I, Class L, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM I | Diversified |
* | Effective June 1, 2018, JPMorgan Dynamic Small Cap Growth Fund changed its name to JPMorgan Small Cap Blend Fund. |
** | Class R6 commenced operations on July 2, 2018 for JPMorgan Small Cap Blend Fund. |
*** | Class R2, Class R3 and Class R4 commenced operations on July 31, 2017 for JPMorgan Small Cap Core Fund. |
**** | Class R3 and Class R4 commenced operations on July 31, 2017 for JPMorgan Small Cap Growth Fund. |
The investment objectives of JPMorgan Small Cap Blend Fund (“Small Cap Blend Fund”), JPMorgan Small Cap Core Fund (“Small Cap Core Fund”) and JPMorgan Small Cap Equity Fund (“Small Cap Equity Fund”) are to seek capital growth over the long term.
The investment objective of JPMorgan Small Cap Growth Fund (“Small Cap Growth Fund”) is to seek long-term capital growth primarily by investing in a portfolio of equity securities of small-capitalization and emerging growth companies.
The investment objective of JPMorgan Small Cap Value Fund (“Small Cap Value Fund”) is to seek long-term capital growth primarily by investing in equity securities of small-capitalization companies.
The investment objective of JPMorgan U.S. Small Company Fund (“U.S. Small Company Fund”) is to seek to provide high total return from a portfolio of small company stocks.
Class L Shares for the Small Cap Growth Fund and U.S. Small Company Fund are publicly offered on a limited basis. Investors are not eligible to purchase shares of the Funds unless they meet certain requirements as described in the Funds’ prospectuses.
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 I, Class L, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares. 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. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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 Boards of Trustees (the “Boards”), 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 Boards.
74 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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The Administrator has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Boards 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 Boards. 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 Boards.
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 Boards. 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. 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 contracts are generally valued on the basis of available market quotations.
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). |
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):
Small Cap Blend Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 219,344 | $ | — | $ | — | $ | 219,344 | ||||||||
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Small Cap Core Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (b) | $ | 315,890 | $ | — | $ | — | (c) | $ | 315,890 | |||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts (a) | $ | (70 | ) | $ | — | $ | — | $ | (70 | ) | ||||||
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Small Cap Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 6,864,807 | $ | — | $ | — | $ | 6,864,807 | ||||||||
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JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 75 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Small Cap Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 2,204,656 | $ | — | $ | — | $ | 2,204,656 | ||||||||
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Small Cap Value Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (b) | $ | 1,941,501 | $ | — | $ | — | (c) | $ | 1,941,501 | |||||||
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Depreciation in Other Financial Instruments |
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Futures Contracts (a) | $ | (241 | ) | $ | — | $ | — | $ | (241 | ) | ||||||
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U.S. Small Company Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (b) | $ | 1,776,386 | $ | — | $ | — | (c) | $ | 1,776,386 | |||||||
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Depreciation in Other Financial Instruments |
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Futures Contracts (a) | $ | (1,239 | ) | $ | — | $ | — | $ | (1,239 | ) | ||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for asset class specifics of portfolio holdings. |
(b) | All portfolio holdings designated as level 1 and level 3 are disclosed individually on the SOIs. Level 3 consists of a warrant. Please refer to the SOIs for industry specifics of portfolio holdings. |
(c) | Value is zero. |
There were no transfers among any levels during the year ended June 30, 2018.
B. Futures Contracts — Small Cap Core Fund, Small Cap Value Fund and U.S. Small Company Fund used index futures contracts to gain or reduce exposure to the stock market, maintain liquidity or minimize transaction costs. The Funds buy futures contracts to invest incoming cash in the market or sell futures in response to cash outflows, thereby simulating an invested position in the underlying index while maintaining a cash balance for liquidity.
Futures contracts provide for the delayed delivery of 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 use of futures contracts exposes the Funds to equity price risk. 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.
76 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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The table below discloses the volume of the Funds’ futures contracts activity during the year ended June 30, 2018 (amounts in thousands):
Small Cap Core Fund | Small Cap Value Fund | U.S. Small Company Fund | ||||||||||
Futures Contracts — Equity: | ||||||||||||
Average Notional Balance Long | $ | 5,932 | $ | 34,910 | $ | 42,195 | ||||||
Ending Notional Balance Long | 8,732 | 14,416 | 61,946 |
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).
C. 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.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
D. 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 are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | Total | |||||||||||||||||||||||||||||||
Small Cap Blend Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 26 | $ | 2 | $ | 4 | n/a | n/a | n/a | n/a | n/a | n/a | $ | 32 | ||||||||||||||||||||||||||
Small Cap Core Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 2 | — | (a) | 2 | n/a | $ | — | (a) | $ | — | (a) | $ | — | (a) | $ | 7 | $ | — | (a) | 11 | ||||||||||||||||||||
Small Cap Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 85 | 11 | 68 | n/a | 3 | 1 | — | (a) | 17 | 18 | 203 | |||||||||||||||||||||||||||||
Small Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 66 | 3 | 9 | $ | 5 | 2 | — | (a) | — | (a) | — | (a) | 8 | 93 | ||||||||||||||||||||||||||
Small Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 178 | 6 | 13 | n/a | 69 | 4 | — | (a) | 7 | 45 | 322 | |||||||||||||||||||||||||||||
U.S. Small Company Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 34 | 9 | 15 | 14 | 10 | — | (a) | 3 | 1 | 20 | 106 |
(a) | Amount rounds to less than one thousand. |
E. 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 (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 June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
F. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually, except for Small Cap Value Fund, which are generally 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.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (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) | ||||||||||
Small Cap Blend Fund | $ | 5,052 | $ | 1,369 | $ | (6,421 | ) | |||||
Small Cap Core Fund | — | (54 | ) | 54 | ||||||||
Small Cap Equity Fund | — | (3,283 | ) | 3,283 | ||||||||
Small Cap Growth Fund | — | (a) | 6,095 | (6,095 | ) | |||||||
Small Cap Value Fund | — | (1,183 | ) | 1,183 | ||||||||
U.S. Small Company Fund | — | (851 | ) | 851 |
(a) | Amount rounds to less than one thousand. |
The reclassifications for the Funds relate primarily to investments in partnerships, non-taxable dividends, net operating losses and tax equalization.
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:
Small Cap Blend Fund | 0.65 | % | ||
Small Cap Core Fund | 0.65 | |||
Small Cap Equity Fund | 0.65 | |||
Small Cap Growth Fund | 0.65 | |||
Small Cap Value Fund | 0.65 | |||
U.S. Small Company Fund | 0.60 |
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
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 June 30, 2018, 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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trusts’ principal underwriter and promotes and arranges for the sale of each Fund’s shares.
The Boards have adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class C, Class R2 and Class R3 Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the 1940 Act. Class I, Class L, Class R4, Class R5 and Class R6 Shares do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class R2 | Class R3 | |||||||||||||
Small Cap Blend Fund | 0.25 | % | 0.75 | % | n/a | n/a | ||||||||||
Small Cap Core Fund | 0.25 | 0.75 | 0.50 | % | 0.25 | % | ||||||||||
Small Cap Equity Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Small Cap Growth Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Small Cap Value Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
U.S. Small Company Fund | 0.25 | 0.75 | 0.50 | 0.25 |
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In addition, JPMDS 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 June 30, 2018, JPMDS retained the following (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Small Cap Blend Fund | $ | 2 | $ | — | ||||
Small Cap Core Fund | 3 | — | ||||||
Small Cap Equity Fund | 26 | 1 | ||||||
Small Cap Growth Fund | 112 | 2 | ||||||
Small Cap Value Fund | 9 | — | (a) | |||||
U.S. Small Company Fund | 12 | — | (a) |
(a) | Amount rounds to less than one thousand. |
D. Service Fees — The Trusts, on behalf of the Funds, have entered into a Shareholder Servicing Agreement with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | |||||||||||||||||||||||||
Small Cap Blend Fund | 0.25 | % | 0.25 | % | 0.25 | % | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||||
Small Cap Core Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | % | 0.25 | % | 0.25 | % | 0.10 | % | ||||||||||||||||||||
Small Cap Equity Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | 0.25 | 0.25 | 0.10 | ||||||||||||||||||||||||
Small Cap Growth Fund | 0.25 | 0.25 | 0.25 | 0.10 | % | 0.25 | 0.25 | 0.25 | 0.10 | |||||||||||||||||||||||
Small Cap Value Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | 0.25 | 0.25 | 0.10 | ||||||||||||||||||||||||
U.S. Small Company Fund | 0.25 | 0.25 | 0.25 | 0.10 | 0.25 | 0.25 | 0.25 | 0.10 |
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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 in Interest income from affiliates on the Statements of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately 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 JPMDS 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | ||||||||||||||||||||||||||||
Small Cap Blend Fund* | 1.24 | % | 1.74 | % | 0.99 | % | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Small Cap Core Fund | 1.24 | ** | 1.74 | ** | 0.99 | ** | n/a | 1.49 | %** | 1.24 | %** | 0.99 | %** | 0.80 | % | 0.74 | %** | |||||||||||||||||||
Small Cap Equity Fund | 1.24 | *** | 1.74 | *** | 0.99 | *** | n/a | 1.49 | *** | 1.24 | *** | 0.99 | *** | 0.80 | 0.74 | *** | ||||||||||||||||||||
Small Cap Growth Fund | 1.24 | **** | 1.74 | **** | 0.99 | **** | 0.85 | % | 1.49 | **** | 1.24 | **** | 0.99 | **** | 0.84 | **** | 0.74 | **** | ||||||||||||||||||
Small Cap Value Fund***** | 1.24 | 1.74 | 0.99 | n/a | 1.49 | 1.24 | 0.99 | 0.84 | 0.74 | |||||||||||||||||||||||||||
U.S. Small Company Fund | 1.26 | 1.76 | 1.01 | 0.83 | 1.51 | 1.26 | 1.01 | 0.86 | 0.76 |
* | Prior to November 1, 2017, the contractual expense limitations for Small Cap Blend Fund was 1.25%, 1.75% and 1.00%, for Class A, Class C and Class I Shares, respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
** | Prior to November 1, 2017, the contractual expense limitations for Small Cap Core Fund was 1.25%, 1.75%, 1.00%, 1.50%, 1.25%, 1.00% and 0.75%, for Class A, Class C, Class I, Class R2, Class R3, Class R4 and Class R6 Shares, respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
*** | Prior to November 1, 2017, the contractual expense limitations for Small Cap Equity Fund was 1.30%, 1.80%, 1.00%, 1.55%, 1.25%, 1.00% and 0.75%, for Class A, Class C, Class I, Class R2, Class R3, Class R4 and Class R6 Shares, respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
**** | Prior to November 1, 2017, the contractual expense limitations for Small Cap Growth Fund was 1.25%, 1.75%, 1.00%, 1.50%, 1.25%, 1.00%, 0.85% and 0.75%, for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares, respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
***** | Prior to November 1, 2017, the contractual expense limitations for Small Cap Value Fund was 1.25%, 1.86%, 1.00%, 1.61%, 1.36%, 1.11%, 0.91% and 0.86%, for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares, respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
Except as noted above, the expense limitation agreements were in effect for the year ended June 30, 2018. The contractual expense limitation percentages in the table above are in place until at least October 31, 2018 unless noted otherwise.
For the year ended June 30, 2018, 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 reimbursed expenses in future years.
Contractual Waivers | ||||||||||||||||||||
Investment Advisory Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Small Cap Blend Fund | $ | 99 | $ | 66 | $ | 25 | $ | 190 | $ | — | ||||||||||
Small Cap Core Fund | 198 | 127 | 98 | 423 | — | (a) | ||||||||||||||
Small Cap Equity Fund | 307 | 205 | 677 | 1,189 | 16 | |||||||||||||||
Small Cap Growth Fund | 207 | 136 | 81 | 424 | 8 | |||||||||||||||
Small Cap Value Fund | 175 | 113 | 267 | 555 | 29 | |||||||||||||||
U.S. Small Company Fund | — | — | 1 | 1 | 1 |
(a) | Amount rounds to less than one thousand. |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 Fund’s investment in such affiliated money market fund.
The amount of waivers resulting from investments in these money market funds for the year ended June 30, 2018 was as follows (amounts in thousands):
Small Cap Blend Fund | $ | 7 | ||
Small Cap Core Fund | 12 | |||
Small Cap Equity Fund | 555 | |||
Small Cap Growth Fund | 69 | |||
Small Cap Value Fund | 67 | |||
U.S. Small Company Fund | 87 |
G. Other — Certain officers of the Trusts are affiliated with the Adviser, the Administrator and JPMDS. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.
The Boards 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 June 30, 2018, the Funds purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate were affiliated with the Adviser.
The Funds may use related party broker-dealers. For the year ended June 30, 2018, the Funds incurred brokerage commissions with broker-dealers affiliated with the Adviser as follows (amounts in thousands):
Small Cap Blend Fund | $ | — | (a) | |
Small Cap Core Fund | — | (a) | ||
Small Cap Equity Fund | 1 | |||
Small Cap Growth Fund | — | (a) | ||
Small Cap Value Fund | — | (a) | ||
U.S. Small Company Fund | 2 |
(a) | Amount rounds to less than one thousand. |
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The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended June 30, 2018, purchases and sales of investments (excluding short-term investments and transfers in-kind) were as follows (amounts in thousands):
Purchases (excluding U.S. Government) | Sales (excluding U.S. Government) | |||||||
Small Cap Blend Fund | $ | 174,342 | $ | 188,463 | ||||
Small Cap Core Fund | 156,273 | 97,137 | ||||||
Small Cap Equity Fund | 1,024,181 | 1,398,783 | ||||||
Small Cap Growth Fund | 1,289,927 | 938,326 | ||||||
Small Cap Value Fund | 770,631 | 1,108,547 | ||||||
U.S. Small Company Fund | 899,979 | 1,107,441 |
During the year ended June 30, 2018, 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 investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Small Cap Blend Fund | $ | 164,521 | $ | 58,234 | $ | 3,411 | $ | 54,823 | ||||||||
Small Cap Core Fund | 238,291 | 86,824 | 9,295 | 77,529 | ||||||||||||
Small Cap Equity Fund | 4,758,830 | 2,192,025 | 86,048 | 2,105,977 | ||||||||||||
Small Cap Growth Fund | 1,590,453 | 647,437 | 33,234 | 614,203 | ||||||||||||
Small Cap Value Fund | 1,443,870 | 567,856 | 70,466 | 497,390 | ||||||||||||
U.S. Small Company Fund | 1,423,924 | 428,910 | 77,687 | 351,223 |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to mark to market of futures contracts, wash sale loss deferrals and non-taxable dividends.
The tax character of distributions paid during the year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Small Cap Blend Fund | $ | 1,346 | $ | 20,060 | $ | 21,406 | ||||||
Small Cap Core Fund | 3,556 | 17,269 | 20,825 | |||||||||
Small Cap Equity Fund | 125,515 | 224,115 | 349,630 | |||||||||
Small Cap Growth Fund | 563 | 111,200 | 111,763 | |||||||||
Small Cap Value Fund | 19,757 | 110,341 | 130,098 | |||||||||
U.S. Small Company Fund | 17,257 | 98,178 | 115,435 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Small Cap Blend Fund | $ | 127 | $ | 23,121 | $ | 23,248 | ||||||
Small Cap Core Fund | 599 | 17,778 | 18,377 | |||||||||
Small Cap Equity Fund | 22,582 | 132,624 | 155,206 | |||||||||
Small Cap Growth Fund | — | 36,600 | 36,600 | |||||||||
Small Cap Value Fund | 12,657 | 828 | 13,485 | |||||||||
U.S. Small Company Fund | 6,050 | — | 6,050 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
As of June 30, 2018, 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) | ||||||||||
Small Cap Blend Fund | $ | 8,571 | $ | 42,679 | $ | 54,823 | ||||||
Small Cap Core Fund | 3,336 | 11,053 | 77,529 | |||||||||
Small Cap Equity Fund | 19,130 | 164,544 | 2,105,977 | |||||||||
Small Cap Growth Fund | 57,779 | 175,554 | 614,203 | |||||||||
Small Cap Value Fund | 5,853 | 80,877 | 497,390 | |||||||||
U.S. Small Company Fund | 32,736 | 61,348 | 351,223 |
For the Funds, the cumulative timing differences primarily consist of mark to market of futures contracts, wash sale loss deferrals, non-taxable dividends and late year ordinary loss deferrals.
At June 30, 2018, the Funds did not have any capital loss carryforwards.
Late year ordinary losses incurred after December 31 and specified ordinary losses incurred after October 31 are deemed to arise on the first business day of Funds’ next taxable year. For the year ended June 30, 2018, the following Funds deferred to July 1, 2018 late year ordinary losses and specified ordinary losses of (amounts in thousands):
Specified Ordinary Loss | Late Year Ordinary Loss | |||||||
Small Cap Blend Fund | $ | 47 | $ | 815 | ||||
Small Cap Growth Fund | — | 4,471 |
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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 5, 2018.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility during the year ended June 30, 2018.
The Trusts, along with certain other trusts (“Borrowers”), have 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 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.
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. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
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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.
As of June 30, 2018, the Funds had non-affiliated omnibus accounts which owned more than 10% of the respective Fund’s outstanding shares as follows:
Number of Non-Affiliated Omnibus Accounts | % of the Fund | |||||||
Small Cap Blend Fund | 3 | 56.7 | % | |||||
Small Cap Core Fund | 4 | 31.8 | ||||||
Small Cap Equity Fund | 4 | 19.6 | ||||||
Small Cap Growth Fund | 6 | 21.4 | ||||||
Small Cap Value Fund | 6 | 13.0 | ||||||
U.S. Small Company Fund | 9 | 22.2 |
As of June 30, 2018, the JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of the following Funds:
JPMorgan SmartRetirement Funds | ||||
Small Cap Growth Fund | 14.9 | % | ||
Small Cap Value Fund | 18.9 |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
Because the Funds may invest a significant portion of their assets in REITs, the Funds may be subject to certain risks similar to those associated with direct investments in real estate. REITs may be affected by changes in the value of their underlying properties and by defaults by tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareholders, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time.
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. 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.
8. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Boards of Trustees of JPMorgan Trust I and JPMorgan Trust II and Shareholders of JPMorgan Small Cap Blend Fund, JPMorgan Small Cap Core Fund, JPMorgan Small Cap Equity Fund, JPMorgan Small Cap Growth Fund, JPMorgan Small Cap Value Fund and JPMorgan U.S. Small Company Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund), JPMorgan Small Cap Core Fund, JPMorgan Small Cap Equity Fund and JPMorgan U.S. Small Company Fund (four of the funds constituting JPMorgan Trust I) and JPMorgan Small Cap Growth Fund and JPMorgan Small Cap Value Fund (two of the funds constituting JPMorgan Trust II) (hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
84 | J.P. MORGAN SMALL CAP FUNDS | JUNE 30, 2018 |
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the 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), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trusts since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trusts since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | 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). | 135 | None | |||
Raymond Kanner** (1953); Trustee of Trusts since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present). |
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 85 |
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TRUSTEES
(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | 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). | 135 | 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). | 135 | 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) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
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). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
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). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
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). | 135 | 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 eleven registered investment companies (135 funds). |
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* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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.
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 87 |
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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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
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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 (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, January 1, 2018, and continued to hold your shares at the end of the reporting period, June 30, 2018.
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 each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Small Cap Blend Fund (formerly known as JPMorgan Dynamic Small Cap Growth Fund) | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,151.70 | $ | 6.62 | 1.24 | % | ||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,149.00 | 9.27 | 1.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.17 | 8.70 | 1.74 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,153.40 | 5.29 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 | ||||||||||||
JPMorgan Small Cap Core Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,079.10 | 6.34 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,076.60 | 8.91 | 1.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,080.30 | 5.11 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,077.80 | 7.68 | 1.49 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.41 | 7.45 | 1.49 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,079.20 | 6.39 | 1.24 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,080.50 | 5.11 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 |
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 89 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Small Cap Core Fund (continued) | ||||||||||||||||
Class R5 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,081.40 | $ | 4.13 | 0.80 | % | ||||||||
Hypothetical | 1,000.00 | 1,020.83 | 4.01 | 0.80 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,081.80 | 3.82 | 0.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
JPMorgan Small Cap Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,056.20 | 6.27 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,053.60 | 8.81 | 1.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,057.50 | 5.00 | 0.98 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.93 | 4.91 | 0.98 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,054.70 | 7.54 | 1.48 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,056.30 | 6.27 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,057.60 | 5.00 | 0.98 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.93 | 4.91 | 0.98 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,058.40 | 4.03 | 0.79 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.88 | 3.96 | 0.79 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,058.80 | 3.73 | 0.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||
JPMorgan Small Cap Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,147.40 | 6.55 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,145.40 | 9.20 | 1.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,149.10 | 5.22 | 0.98 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.93 | 4.91 | 0.98 | ||||||||||||
Class L | ||||||||||||||||
Actual | 1,000.00 | 1,149.80 | 4.48 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,146.50 | 7.88 | 1.48 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,147.40 | 6.55 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,149.10 | 5.28 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 |
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Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Small Cap Growth Fund (continued) | ||||||||||||||||
Class R5 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,149.80 | $ | 4.48 | 0.84 | % | ||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,150.60 | 3.95 | 0.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
JPMorgan Small Cap Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,054.60 | 6.32 | 1.24 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,051.80 | 8.85 | 1.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.17 | 8.70 | 1.74 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,056.00 | 5.05 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,053.40 | 7.59 | 1.49 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.41 | 7.45 | 1.49 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,054.70 | 6.32 | 1.24 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,055.80 | 5.05 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,056.40 | 4.28 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,057.10 | 3.77 | 0.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
JPMorgan U.S. Small Company Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,070.50 | 6.26 | 1.22 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.74 | 6.11 | 1.22 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,068.00 | 8.87 | 1.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,072.20 | 4.93 | 0.96 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.03 | 4.81 | 0.96 | ||||||||||||
Class L | ||||||||||||||||
Actual | 1,000.00 | 1,073.30 | 4.16 | 0.81 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.78 | 4.06 | 0.81 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,069.00 | 7.59 | 1.48 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,070.80 | 6.21 | 1.21 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.79 | 6.06 | 1.21 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,071.90 | 5.24 | 1.02 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.74 | 5.11 | 1.02 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan U.S. Small Company Fund (continued) | ||||||||||||||||
Class R5 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,072.90 | $ | 4.32 | 0.84 | % | ||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,073.80 | 3.65 | 0.71 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.27 | 3.56 | 0.71 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deduction | ||||
JPMorgan Small Cap Blend Fund | 8.83 | % | ||
JPMorgan Small Cap Core Fund | 54.11 | |||
JPMorgan Small Cap Equity Fund | 100.00 | |||
JPMorgan Small Cap Growth Fund | 10.80 | |||
JPMorgan Small Cap Value Fund | 100.00 | |||
JPMorgan U.S. Small Company Fund | 41.50 |
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 June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Small Cap Blend Fund | $ | 24,431 | ||
JPMorgan Small Cap Core Fund | 17,269 | |||
JPMorgan Small Cap Equity Fund | 224,115 | |||
JPMorgan Small Cap Growth Fund | 111,200 | |||
JPMorgan Small Cap Value Fund | 110,341 | |||
JPMorgan U.S. Small Company Fund | 98,178 |
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 June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Small Cap Blend Fund | $ | 819 | ||
JPMorgan Small Cap Core Fund | 3,259 | |||
JPMorgan Small Cap Equity Fund | 89,078 | |||
JPMorgan Small Cap Growth Fund | 563 | |||
JPMorgan Small Cap Value Fund | 19,757 | |||
JPMorgan U.S. Small Company Fund | 17,256 |
JUNE 30, 2018 | J.P. MORGAN SMALL CAP FUNDS | 93 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-SC-618 |
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Annual Report
J.P. Morgan Mid Cap/Multi-Cap Funds
June 30, 2018
JPMorgan Growth Advantage Fund
JPMorgan Mid Cap Equity Fund
JPMorgan Mid Cap Growth Fund
JPMorgan Mid Cap Value Fund
JPMorgan Value Advantage Fund
Table of Contents
CEO’s Letter | 1 | |||
Market Overview | 2 | |||
Fund Commentaries: | ||||
3 | ||||
5 | ||||
7 | ||||
9 | ||||
11 | ||||
Schedules of Portfolio Investments | 13 | |||
Financial Statements | 28 | |||
Financial Highlights | 44 | |||
Notes to Financial Statements | 54 | |||
Report of Independent Registered Public Accounting Firm | 63 | |||
Trustees | 64 | |||
Officers | 67 | |||
Schedule of Shareholder Expenses | 68 | |||
Tax Letter | 71 | |||
Privacy Policy — Located at the back of this Annual Report |
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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
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“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 1 |
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J.P. Morgan Mid Cap/Multi-Cap Funds
MARKET OVERVIEW
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities. Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from July 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, growth stocks generally outperformed value stocks and small cap stocks slightly outperformed large cap and mid cap stocks. For the twelve months ended June 30, 2018, the S&P 500 returned 14.37% and the Russell Midcap Index returned 12.33%.
2 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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JPMorgan Growth Advantage Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class A Shares, without a sales charge)* | 26.22% | |||
Russell 3000 Growth Index | 22.47% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 8,691,587 |
INVESTMENT OBJECTIVE**
The JPMorgan Growth Advantage Fund (the “Fund”) seeks to provide long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, outperformed the Russell 3000 Growth Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the health care sector and its security selection and overweight position in the technology sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the producer durables and materials & processing sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Kite Pharma Inc., Netflix Corp. and Amazon.com Inc. Shares of Kite Pharma, a drug maker, rose ahead of its October 2017 acquisition by Gilead Sciences Inc. Shares of Netflix, an Internet provider of entertainment, rose amid growth in subscriptions and revenue. Shares of Amazon.com, an Internet retailer, rose with continued growth in sales, earnings and market share.
Leading individual detractors from relative performance included the Fund’s overweight positions in Mohawk Industries Inc. and Acadia Healthcare Co. and its underweight position in Microsoft Corp. Shares of Mohawk Industries, a maker of commercial and residential flooring, fell amid competitive pressure from lower cost imports and shrinking demand for the company’s ceramic tiles. Shares of Acadia Healthcare, a provider of behavioral health care services that was not held in the Benchmark, fell early in the reporting period after the company posted lower-than-expected earnings and revenue in the third quarter of 2017. Shares of Microsoft, a computer software and hardware provider, rose on continued growth in earnings and revenue.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection, researching individual companies across
market capitalizations in an effort to construct portfolios of stocks that have strong fundamentals. The Fund’s portfolio managers sought to invest in high quality companies with durable franchises that, in their view, possessed the ability to generate strong future earnings growth.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Amazon.com, Inc. | 5.9 | % | |||||
2. | Alphabet, Inc., Class C | 5.7 | ||||||
3. | Apple, Inc. | 5.7 | ||||||
4. | UnitedHealth Group, Inc. | 3.5 | ||||||
5. | Facebook, Inc., Class A | 3.0 | ||||||
6. | Waste Connections, Inc. | 2.6 | ||||||
7. | Microsoft Corp. | 2.4 | ||||||
8. | Mastercard, Inc., Class A | 2.3 | ||||||
9. | Visa, Inc., Class A | 2.1 | ||||||
10. | Netflix, Inc. | 1.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 44.9 | % | ||
Health Care | 14.3 | |||
Industrials | 13.3 | |||
Consumer Discretionary | 13.2 | |||
Financials | 8.2 | |||
Energy | 2.0 | |||
Others (each less than 1.0%) | 1.6 | |||
Short-Term Investments | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 3 |
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JPMorgan Growth Advantage Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | October 29, 1999 | |||||||||||||
With Sales Charge* | 19.62 | % | 16.32 | % | 11.59 | % | ||||||||
Without Sales Charge | 26.22 | 17.58 | 12.20 | |||||||||||
CLASS C SHARES | May 1, 2006 | |||||||||||||
With CDSC** | 24.60 | 16.99 | 11.63 | |||||||||||
Without CDSC | 25.60 | 16.99 | 11.63 | |||||||||||
CLASS I SHARES | May 1, 2006 | 26.56 | 17.80 | 12.44 | ||||||||||
CLASS R2 SHARES | July 31, 2017 | 25.90 | 17.29 | 11.94 | ||||||||||
CLASS R3 SHARES | May 31, 2017 | 26.27 | 17.59 | 12.22 | ||||||||||
CLASS R4 SHARES | May 31, 2017 | 26.56 | 17.86 | 12.50 | ||||||||||
CLASS R5 SHARES | January 8, 2009 | 26.74 | 18.04 | 12.64 | ||||||||||
CLASS R6 SHARES | December 23, 2013 | 26.86 | 18.14 | 12.69 |
* | 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 (6/30/08 TO 6/30/18)
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 and Class R3 Shares prior to their inception dates 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. The actual returns for Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to Class R2 Shares.
Returns for Class R4 and Class R5 Shares prior to their inception dates are based on the performance of Class I Shares. The actual returns of Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses to Class I Shares. The actual returns of Class R5 Shares would have been different than those shown because Class R5 Shares have different expenses than Class I Shares.
Returns for Class R6 Shares prior to their inception date are based on the performance of Class R5 Shares from January 8, 2009 to December 22, 2013 and Class I Shares prior to January 8, 2009. 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 and Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Growth Advantage Fund, the Russell 3000 Growth Index and the Lipper Multi-Cap Growth Funds Index from June 30, 2008 to
June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the Russell 3000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Multi-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 3000 Growth Index is an unmanaged index which measures the performance of those Russell 3000 companies (largest 3000 U.S. companies) with higher price-to-book ratios and higher forecasted growth values. The Lipper Multi-Cap Growth Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
4 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 12.70% | |||
Russell Midcap Index | 12.33% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 2,733,708 |
INVESTMENT OBJECTIVE**
The JPMorgan Mid Cap Equity Fund (the “Fund”) seeks long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell Midcap Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and overweight position in the technology sector and its security selection in the health care sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the energy and materials & processing sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Kite Pharma Inc., Energen Corp. and Kohl’s Corp. Shares of Kite Pharma, a drug maker not held in the Benchmark, rose ahead of its October 2017 acquisition by Gilead Sciences Inc. Shares of Energen, an oil and natural gas exploration and production company, rose amid investor expectations that activist investors would seek to acquire the company, as well as better-than-expected earnings. Shares of Kohl’s, an apparel retailer, rose amid better-than-expected sales and earnings.
Leading individual detractors from relative performance included the Fund’s overweight positions in Mohawk Industries Inc., Dish Network Inc. and Fortune Brands Home & Security Inc. Shares of Mohawk Industries, a maker of commercial and residential flooring, fell amid increased competition from lower cost imports and shrinking demand for the company’s ceramic tile products. Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of Fortune Brands, a manufacturer of home furnishings and home security systems, fell after the company reported lower-than-expected earnings and sales for the first quarter of 2018.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up approach to stock selection, constructing a portfolio based on company fundamentals, quantitative screening and proprietary
fundamental analysis. The Fund’s portfolio managers sought to identify dominant franchises with predictable business models they deemed capable of achieving, in their view, sustained growth, as well as undervalued companies with the potential to grow their intrinsic value per share.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Hilton Worldwide Holdings, Inc. | 1.5 | % | |||||
2. | Waste Connections, Inc. | 1.5 | ||||||
3. | Amphenol Corp., Class A | 1.3 | ||||||
4. | Ross Stores, Inc. | 1.2 | ||||||
5. | CBRE Group, Inc., Class A | 1.1 | ||||||
6. | Energen Corp. | 1.1 | ||||||
7. | Global Payments, Inc. | 1.1 | ||||||
8. | S&P Global, Inc. | 1.0 | ||||||
9. | ServiceNow, Inc. | 1.0 | ||||||
10. | EQT Corp. | 1.0 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 20.4 | % | ||
Consumer Discretionary | 16.3 | |||
Financials | 14.9 | |||
Industrials | 12.4 | |||
Health Care | 11.2 | |||
Real Estate | 6.4 | |||
Energy | 4.0 | |||
Materials | 3.9 | |||
Utilities | 3.8 | |||
Consumer Staples | 3.7 | |||
Short-Term Investments | 3.0 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 5 |
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JPMorgan Mid Cap Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | November 2, 2009 | |||||||||||||
With Sales Charge* | 6.49 | % | 10.89 | % | 9.44 | % | ||||||||
Without Sales Charge | 12.39 | 12.09 | 10.04 | |||||||||||
CLASS C SHARES | November 2, 2009 | |||||||||||||
With CDSC** | 10.80 | 11.53 | 9.56 | |||||||||||
Without CDSC | 11.80 | 11.53 | 9.56 | |||||||||||
CLASS I SHARES | January 1, 1997 | 12.70 | 12.47 | 10.36 | ||||||||||
CLASS R2 SHARES | March 14, 2014 | 12.09 | 11.85 | 9.92 | ||||||||||
CLASS R5 SHARES | March 14, 2014 | 12.85 | 12.57 | 10.41 | ||||||||||
CLASS R6 SHARES | March 14, 2014 | 12.93 | 12.63 | 10.44 |
* | 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 (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class A and Class C Shares prior to their inception dates are based on the performance of Class I Shares. The actual returns of Class A and Class C Shares would have been lower than those shown because Class A and Class C Shares have higher expenses than Class I Shares.
Returns for Class R2 Shares prior to their inception date are based on the performance of Class A Shares from November 2, 2009 to March 13, 2014 and Class I Shares prior to November 2, 2009. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A and Class I Shares.
Returns for Class R5 and Class R6 Shares prior to their inception dates are based on the performance of Class I Shares. The actual returns of Class R5 and Class R6 Shares would have been different because Class R5 and Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in the Class I Shares of JPMorgan Mid Cap Equity Fund, the Russell Midcap Index, the Lipper Multi-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index from June 30, 2008 to June 30, 2018. 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 Russell Midcap Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Mid-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell Midcap Index is an unmanaged index which measures the performance of the 800 smallest companies in the Russell 1000 Index. The Lipper Mid-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index are indices based on total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
6 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 18.75% | |||
Russell Midcap Growth Index | 18.52% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 3,917,244 |
INVESTMENT OBJECTIVE**
The JPMorgan Mid Cap Growth Fund (the “Fund”) seeks growth of capital.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell Midcap Growth Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and overweight position in the technology sector and its underweight position in the materials & processing sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the producer durables and consumer discretionary sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Kite Pharma Inc., Splunk Inc. and Copart Inc. Shares of Kite Pharma, a drug maker that was not held in the Benchmark, rose ahead of its October 2017 acquisition by Gilead Sciences Inc. Shares of Splunk, a data analytics software provider, rose amid consistent better-than-expected earnings and sales during the reporting period. Shares of Copart, an online automotive auction service, rose after the company reported consecutive quarters of better-than-expected earnings and sales.
Leading individual detractors from relative performance included the Fund’s overweight positions in Mohawk Industries Inc. and Acadia Healthcare Inc. and its underweight position in Align Technology Inc. Shares of Mohawk Industries, a maker of commercial and residential flooring, fell amid increased competition from lower cost imports and shrinking demand for the company’s ceramic tile products. Shares of Acadia Healthcare, a provider of behavioral health care services that was not held in the Benchmark, fell early in the reporting period after the company posted lower-than-expected earnings and revenue in the third quarter of 2017. Shares of Align Technology, a maker of dental devices, rose after the company raised its revenue growth target and increased its share repurchase program.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection, researching individual companies in an effort
to construct a portfolio of stocks that have strong fundamentals. The Fund’s portfolio managers sought to invest in high quality companies with durable franchises that, in their view, possessed the ability to generate strong future earnings growth.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Waste Connections, Inc. | 3.0 | % | |||||
2. | Ross Stores, Inc. | 2.3 | ||||||
3. | Global Payments, Inc. | | 2.1 | | ||||
4. | S&P Global, Inc. | | 2.0 | | ||||
5. | ServiceNow, Inc. | | 2.0 | | ||||
6. | GoDaddy, Inc., Class A | | 1.8 | | ||||
7. | O’Reilly Automotive, Inc. | | 1.7 | | ||||
8. | Palo Alto Networks, Inc. | | 1.6 | | ||||
9. | Hilton Worldwide Holdings, Inc. | | 1.6 | | ||||
10. | Jazz Pharmaceuticals plc | | 1.6 | |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | | 32.8 | % | |
Industrials | | 17.3 | ||
Consumer Discretionary | | 16.0 | ||
Health Care | | 15.9 | ||
Financials | | 8.8 | ||
Materials | | 3.5 | ||
Energy | | 1.5 | ||
Real Estate | | 1.3 | ||
Short-Term Investments | | 2.9 | |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 7 |
Table of Contents
JPMorgan Mid Cap Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 18, 1992 | |||||||||||||
With Sales Charge* | 12.17 | % | 12.58 | % | 9.38 | % | ||||||||
Without Sales Charge | 18.39 | 13.80 | 9.97 | |||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | 16.81 | 13.24 | 9.40 | |||||||||||
Without CDSC | 17.81 | 13.24 | 9.40 | |||||||||||
CLASS I SHARES | March 2, 1989 | 18.75 | 14.15 | 10.30 | ||||||||||
CLASS R2 SHARES | June 19, 2009 | 18.10 | 13.59 | 9.78 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 18.38 | 13.79 | 9.97 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 18.66 | 14.08 | 10.24 | ||||||||||
CLASS R5 SHARES | November 1, 2011 | 18.89 | 14.30 | 10.41 | ||||||||||
CLASS R6 SHARES | November 1, 2011 | 18.95 | 14.37 | 10.45 |
* | 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 (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for the Class R2, Class R3, Class R4, Class R5 and Class R6 Shares prior to their inception dates are based on the performance of Class I Shares. Prior performance for Class R2, Class R3 and Class R4 Shares has been adjusted to reflect the differences in expenses between classes. The actual returns of Class R5 and Class R6 Shares would have been different than those shown because Class R5 and Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Mid Cap Growth Fund, the Russell Midcap Growth Index and the Lipper Mid-Cap Growth Funds Index from June 30, 2008 to June 30, 2018. 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 Russell Midcap Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain
distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Mid-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell Midcap Growth Index is an unmanaged index which measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Mid-Cap Growth Funds Index is an index based on total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
8 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | 6.73% | |||
Russell Midcap Value Index | 7.60% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 18,283,851 |
INVESTMENT OBJECTIVE**
The JPMorgan Mid Cap Value Fund (the “Fund”) seeks growth from capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the Russell Midcap Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the materials sector and its security selection and underweight position in the energy sector were leading detractors from performance relative to the Benchmark, while the Fund’s underweight position and security selection in the real estate sector and its security selection in the financials sector were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Dish Network Inc., EQT Corp. and Newell Brands Inc.Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of EQT, a natural gas production and transmission company, fell as natural gas prices declined during the reporting period and the company reported a loss for the first quarter of 2018. Shares of Newell Brands, a maker of household products, fell amid a proxy battle with activist investors seeking to replace the company’s board of directors.
Leading individual contributors to relative performance included the Fund’s overweight positions in Kohl’s Corp., Dr. Pepper Snapple Group Inc. and T. Rowe Price Group Inc.Shares of Kohl’s, an apparel retailer, rose amid better-than-expected sales and earnings. Shares of Dr. Pepper Snapple Group, a soft drinks maker, rose ahead of the company’s acquisition by Keurig Co. Shares of T. Rowe Price Group, a financial services provider, rose amid consecutive quarters of better-than-expected earnings during the reporting period.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection and sought to identify durable franchises possessing the ability to generate, in their view, sustainable levels of free cash flow.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Energen Corp. | 2.1 | % | |||||
2. | EQT Corp. | 2.0 | ||||||
3. | M&T Bank Corp. | 1.8 | ||||||
4. | Williams Cos., Inc. (The) | 1.7 | ||||||
5. | Mohawk Industries, Inc. | 1.7 | ||||||
6. | Loews Corp. | 1.7 | ||||||
7. | CMS Energy Corp. | 1.7 | ||||||
8. | Dr Pepper Snapple Group, Inc. | 1.6 | ||||||
9. | WEC Energy Group, Inc. | 1.6 | ||||||
10. | Xcel Energy, Inc. | 1.6 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 21.4 | % | ||
Consumer Discretionary | 16.6 | |||
Real Estate | 11.2 | |||
Information Technology | 8.3 | |||
Utilities | 7.6 | |||
Industrials | 7.5 | |||
Consumer Staples | 7.3 | |||
Health Care | 6.6 | |||
Energy | 6.5 | |||
Materials | 4.2 | |||
Short-Term Investments | 2.8 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 9 |
Table of Contents
JPMorgan Mid Cap Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||||
CLASS A SHARES | April 30, 2001 | |||||||||||||||
With Sales Charge* | 0.64 | % | 9.14 | % | 9.50 | % | ||||||||||
Without Sales Charge | 6.20 | 10.32 | 10.09 | |||||||||||||
CLASS C SHARES | April 30, 2001 | |||||||||||||||
With CDSC** | 4.68 | 9.76 | 9.54 | |||||||||||||
Without CDSC | 5.68 | 9.76 | 9.54 | |||||||||||||
CLASS I SHARES | October 31, 2001 | 6.47 | 10.60 | 10.37 | ||||||||||||
CLASS L SHARES | November 13, 1997 | 6.73 | 10.87 | 10.63 | ||||||||||||
CLASS R2 SHARES | November 3, 2008 | 5.93 | 10.04 | 9.82 | ||||||||||||
CLASS R3 SHARES | September 9, 2016 | 6.20 | 10.32 | 10.09 | ||||||||||||
CLASS R4 SHARES | September 9, 2016 | 6.48 | 10.60 | 10.36 | ||||||||||||
CLASS R5 SHARES | September 9, 2016 | 6.61 | 10.83 | 10.62 | ||||||||||||
CLASS R6 SHARES | September 9, 2016 | 6.71 | 10.87 | 10.63 |
* | 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. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 and Class R3 Shares prior to their inception dates are based on the performance of Class A Shares. The actual returns of Class R2 and Class R3 Shares would have been lower than those shown because Class R2 and Class R3 Shares have higher expenses than Class A Shares.
Returns for the Class R4 Shares prior to their inception date are based on the performance of Class I Shares. The actual returns of Class R4 Shares would have been lower because Class R4 Shares have higher expenses than Class I Shares.
Returns for the Class R5 and R6 Shares prior to their inception dates are based on the performance of Class L Shares. The actual returns of Class R5 Shares would have been lower than those shown because Class R5 Shares have higher expenses than Class L Shares. The actual returns for Class R6 Shares would have been similar to those shown because Class R6 Shares have similar expenses to Class L Shares.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan Mid Cap Value Fund, the Russell Midcap Value Index, the Lipper Mid-Cap Value Funds Index and the Lipper Mid-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 Russell Midcap Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Mid-Cap Value Funds Index and the Lipper Mid-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell Midcap Value Index is an unmanaged index which measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Mid-Cap Value Funds Index and the Lipper Mid-Cap Core Funds Index are indices based on total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class L 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
10 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | 8.26% | |||
Russell 3000 Value Index | 7.25% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 11,384,237 |
INVESTMENT OBJECTIVE**
The JPMorgan Value Advantage Fund (the “Fund”) seeks to provide long-term total return from a combination of income and capital gains.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares outperformed the Russell 3000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and underweight position in the industrials and consumer staples sectors were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the materials sector and its underweight position in the energy sector were leading detractors from relative performance.
Leading individual contributors to performance relative to the Benchmark included the Fund’s underweight position in General Electric Co. and its overweight positions in T. Rowe Price Group Inc. and Kohl’s Corp. Shares of General Electric, an industrial conglomerate not held in the Fund, fell amid the company’s restructuring efforts and in June 2018, the stock was removed from the Dow Jones Industrial Average after 111 consecutive years on the index. Shares of T. Rowe Price Group, a financial services provider, rose amid consecutive quarters of better-than-expected earnings during the reporting period.Shares of Kohl’s, an apparel retailer, rose amid better-than-expected sales and earnings.
Leading individual detractors from relative performance included the Fund’s overweight positions in Dish Network Corp. and Ball Corp. and its underweight position in Intel Corp.Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of Ball, a metal packaging maker, fell after the company reported weakness in its key North and Central American markets. Shares of Intel, a semiconductor manufacturer not held in the Fund, rose amid gains in the broader semiconductor sector.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection and sought to identify durable franchises possessing the ability to generate, in the portfolio managers’
view, significant levels of free cash flow. During the reporting period, the Fund’s largest overweight position was in the consumer discretionary sector and the Fund’s largest underweight position was in the health care sector.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Bank of America Corp. | 3.0 | % | |||||
2. | Wells Fargo & Co. | 2.9 | ||||||
3. | Pfizer, Inc. | 2.4 | ||||||
4. | Capital One Financial Corp. | 2.1 | ||||||
5. | Exxon Mobil Corp. | 1.9 | ||||||
6. | Loews Corp. | 1.6 | ||||||
7. | PNC Financial Services Group, Inc. (The) | 1.6 | ||||||
8. | M&T Bank Corp. | 1.5 | ||||||
9. | Johnson & Johnson | 1.5 | ||||||
10. | Texas Instruments, Inc. | 1.5 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 29.5 | % | ||
Consumer Discretionary | 12.7 | |||
Health Care | 9.2 | |||
Energy | 9.0 | |||
Real Estate | 7.7 | |||
Consumer Staples | 6.7 | |||
Information Technology | 6.6 | |||
Industrials | 6.2 | |||
Utilities | 4.7 | |||
Materials | 4.4 | |||
Telecommunication Services | 1.1 | |||
Short-Term Investments | 2.2 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 11 |
Table of Contents
JPMorgan Value Advantage Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 |
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||||
CLASS A SHARES | February 28, 2005 | |||||||||||||||
With Sales Charge* | 2.15 | % | 8.68 | % | 9.37 | % | ||||||||||
Without Sales Charge | 7.81 | 9.86 | 9.96 | |||||||||||||
CLASS C SHARES | February 28, 2005 | |||||||||||||||
With CDSC** | 6.27 | 9.31 | 9.41 | |||||||||||||
Without CDSC | 7.27 | 9.31 | 9.41 | |||||||||||||
CLASS I SHARES | February 28, 2005 | 8.07 | 10.13 | 10.24 | ||||||||||||
CLASS L SHARES | February 28, 2005 | 8.26 | 10.39 | 10.51 | ||||||||||||
CLASS R2 SHARES | July 31, 2017 | 7.51 | 9.58 | 9.68 | ||||||||||||
CLASS R3 SHARES | September 9, 2016 | 7.82 | 9.86 | 9.96 | ||||||||||||
CLASS R4 SHARES | September 9, 2016 | 8.07 | 10.13 | 10.24 | ||||||||||||
CLASS R5 SHARES | September 9, 2016 | 8.25 | 10.38 | 10.50 | ||||||||||||
CLASS R6 SHARES | September 9, 2016 | 8.35 | 10.41 | 10.52 |
* | 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 (6/30/08 TO 6/30/18)
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 and Class R3 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns of Class R2 would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares. Returns for Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to Class A Shares.
Returns for the Class R4 Shares prior to their inception date are based on the performance of Class I Shares. The actual returns of Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses to Class I Shares.
Returns for the Class R5 and R6 Shares prior to their inception dates are based on the performance of Class L Shares. The actual returns for R5 and Class R6 Shares would have been different to those shown because R5 and Class R6 Shares have different expenses to Class L Shares.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan Value Advantage Fund, the Russell 3000 Value Index and the Lipper Multi-Cap Value Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 3000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Multi-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 3000 Value Index is an unmanaged index which measures the performance of those Russell 3000 companies (largest 3000 U.S. companies) with lower price-to-book ratios and lower forecasted growth values. The Lipper Multi-Cap Value Funds Index is an index based on total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class L 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
12 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth Advantage Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 18, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.8% | ||||||||
Aerospace & Defense — 1.6% | ||||||||
Boeing Co. (The) | 418 | 140,344 | ||||||
|
| |||||||
Airlines — 0.6% | ||||||||
Delta Air Lines, Inc. | 974 | 48,247 | ||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
Tesla, Inc.* | 107 | 36,833 | ||||||
|
| |||||||
Banks — 2.3% | ||||||||
Comerica, Inc. | 696 | 63,299 | ||||||
East West Bancorp, Inc. | 1,432 | 93,340 | ||||||
First Republic Bank | 462 | 44,678 | ||||||
|
| |||||||
201,317 | ||||||||
|
| |||||||
Biotechnology — 3.1% | ||||||||
Exact Sciences Corp.* | 707 | 42,296 | ||||||
Exelixis, Inc.* | 1,367 | 29,422 | ||||||
Intercept Pharmaceuticals, Inc.* | 381 | 31,961 | ||||||
Sage Therapeutics, Inc.* | 194 | 30,351 | ||||||
Spark Therapeutics, Inc.* | 584 | 48,299 | ||||||
Vertex Pharmaceuticals, Inc.* | 503 | 85,473 | ||||||
|
| |||||||
267,802 | ||||||||
|
| |||||||
Building Products — 1.8% | ||||||||
Fortune Brands Home & Security, Inc. | 913 | 48,997 | ||||||
Lennox International, Inc. | 538 | 107,721 | ||||||
|
| |||||||
156,718 | ||||||||
|
| |||||||
Capital Markets — 4.9% | ||||||||
BlackRock, Inc. | 129 | 64,127 | ||||||
Charles Schwab Corp. (The) | 2,849 | 145,584 | ||||||
Nasdaq, Inc. | 766 | 69,894 | ||||||
S&P Global, Inc. | 702 | 143,070 | ||||||
|
| |||||||
422,675 | ||||||||
|
| |||||||
Commercial Services & Supplies — 3.6% | ||||||||
Copart, Inc.* | 1,494 | 84,507 | ||||||
Waste Connections, Inc. | 3,037 | 228,659 | ||||||
|
| |||||||
313,166 | ||||||||
|
| |||||||
Communications Equipment — 1.9% | ||||||||
Arista Networks, Inc.* | 244 | 62,712 | ||||||
Palo Alto Networks, Inc.* | 492 | 101,030 | ||||||
|
| |||||||
163,742 | ||||||||
|
| |||||||
Construction Materials — 0.7% | ||||||||
Eagle Materials, Inc. | 584 | 61,323 | ||||||
|
| |||||||
Distributors — 0.8% | ||||||||
LKQ Corp.* | 2,050 | 65,385 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electronic Equipment, Instruments & Components — 1.6% |
| |||||||
Amphenol Corp., Class A | 781 | 68,064 | ||||||
Corning, Inc. | 2,655 | 73,028 | ||||||
|
| |||||||
141,092 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 1.3% | ||||||||
DexCom, Inc.* | 337 | 32,046 | ||||||
Intuitive Surgical, Inc.* | 164 | 78,280 | ||||||
|
| |||||||
110,326 | ||||||||
|
| |||||||
Health Care Providers & Services — 5.3% | ||||||||
Acadia Healthcare Co., Inc.* | 1,510 | 61,770 | ||||||
AmerisourceBergen Corp. | 296 | 25,274 | ||||||
Centene Corp.* | 596 | 73,372 | ||||||
UnitedHealth Group, Inc. | 1,228 | 301,277 | ||||||
|
| |||||||
461,693 | ||||||||
|
| |||||||
Health Care Technology — 1.7% | ||||||||
Evolent Health, Inc., Class A* | 2,141 | 45,062 | ||||||
Teladoc, Inc.* | 786 | 45,633 | ||||||
Veeva Systems, Inc., Class A* | 704 | 54,109 | ||||||
|
| |||||||
144,804 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.0% | ||||||||
Hilton Worldwide Holdings, Inc. | 1,139 | 90,142 | ||||||
|
| |||||||
Insurance — 1.0% | ||||||||
Progressive Corp. (The) | 1,462 | 86,495 | ||||||
|
| |||||||
Internet & Direct Marketing Retail — 9.3% | ||||||||
Amazon.com, Inc.* | 300 | 510,280 | ||||||
Booking Holdings, Inc.* | 44 | 88,989 | ||||||
Netflix, Inc.* | 427 | 167,102 | ||||||
Wayfair, Inc., Class A* | 386 | 45,853 | ||||||
|
| |||||||
812,224 | ||||||||
|
| |||||||
Internet Software & Services — 10.8% | ||||||||
Alphabet, Inc., Class C* | 443 | 494,573 | ||||||
DocuSign, Inc.* | 259 | 13,714 | ||||||
Facebook, Inc., Class A* | 1,344 | 261,225 | ||||||
GoDaddy, Inc., Class A* | 1,540 | 108,745 | ||||||
Spotify Technology SA* | 383 | 64,419 | ||||||
|
| |||||||
942,676 | ||||||||
|
| |||||||
IT Services — 9.3% | ||||||||
Gartner, Inc.* | 592 | 78,690 | ||||||
Global Payments, Inc. | 1,062 | 118,369 | ||||||
Mastercard, Inc., Class A | 992 | 195,007 | ||||||
PayPal Holdings, Inc.* | 1,263 | 105,187 | ||||||
Square, Inc., Class A* | 690 | 42,556 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 13 |
Table of Contents
JPMorgan Growth Advantage Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
IT Services — continued | ||||||||
Visa, Inc., Class A | 1,362 | 180,370 | ||||||
Worldpay, Inc.* | 1,036 | 84,757 | ||||||
|
| |||||||
804,936 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 1.1% | ||||||||
Illumina, Inc.* | 336 | 93,869 | ||||||
|
| |||||||
Machinery — 4.4% | ||||||||
Deere & Co. | 506 | 70,767 | ||||||
Nordson Corp. | 336 | 43,197 | ||||||
Oshkosh Corp. | 1,236 | 86,944 | ||||||
Parker-Hannifin Corp. | 265 | 41,316 | ||||||
Stanley Black & Decker, Inc. | 649 | 86,233 | ||||||
WABCO Holdings, Inc.* | 475 | 55,561 | ||||||
|
| |||||||
384,018 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.9% | ||||||||
Concho Resources, Inc.* | 689 | 95,268 | ||||||
EOG Resources, Inc. | 590 | 73,351 | ||||||
|
| |||||||
168,619 | ||||||||
|
| |||||||
Pharmaceuticals — 1.8% | ||||||||
Jazz Pharmaceuticals plc* | 482 | 83,014 | ||||||
Revance Therapeutics, Inc.* | 1,172 | 32,177 | ||||||
TherapeuticsMD, Inc.* | 6,047 | 37,735 | ||||||
|
| |||||||
152,926 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.9% |
| |||||||
CBRE Group, Inc., Class A* | 1,663 | 79,368 | ||||||
|
| |||||||
Road & Rail — 0.9% | ||||||||
Old Dominion Freight Line, Inc. | 496 | 73,892 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.6% |
| |||||||
Applied Materials, Inc. | 1,404 | 64,869 | ||||||
Broadcom, Inc. | 424 | 102,758 | ||||||
Cavium, Inc.* | 969 | 83,844 | ||||||
NVIDIA Corp. | 607 | 143,704 | ||||||
|
| |||||||
395,175 | ||||||||
|
| |||||||
Software — 10.8% | ||||||||
Adobe Systems, Inc.* | 514 | 125,294 | ||||||
Electronic Arts, Inc.* | 887 | 125,057 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Software — continued | ||||||||
Guidewire Software, Inc.* | 527 | 46,769 | ||||||
Microsoft Corp. | 2,076 | 204,744 | ||||||
Red Hat, Inc.* | 416 | 55,871 | ||||||
SailPoint Technologies Holding, Inc.* | 891 | 21,863 | ||||||
salesforce.com, Inc.* | 1,169 | 159,493 | ||||||
ServiceNow, Inc.* | 573 | 98,808 | ||||||
Splunk, Inc.* | 669 | 66,324 | ||||||
Take-Two Interactive Software, Inc.* | 295 | 34,957 | ||||||
|
| |||||||
939,180 | ||||||||
|
| |||||||
Specialty Retail — 0.9% | ||||||||
Ross Stores, Inc. | 957 | 81,123 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 5.6% |
| |||||||
Apple, Inc. | 2,637 | 488,089 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Lululemon Athletica, Inc.* | 450 | 56,182 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.3% | ||||||||
Fastenal Co. | 568 | 27,323 | ||||||
|
| |||||||
Total Common Stocks | 8,411,704 | |||||||
|
| |||||||
Short-Term Investments — 2.5% | ||||||||
Investment Companies — 2.5% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 218,911 | 218,911 | ||||||
|
| |||||||
Total Investments — 99.3% | 8,630,615 | |||||||
Other Assets Less Liabilities — 0.7% | 60,972 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 8,691,587 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
14 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.1% | ||||||||
Aerospace & Defense — 0.5% | ||||||||
HEICO Corp., Class A | 227 | 13,837 | ||||||
|
| |||||||
Air Freight & Logistics — 0.5% | ||||||||
XPO Logistics, Inc.* | 138 | 13,775 | ||||||
|
| |||||||
Auto Components — 1.0% | ||||||||
Aptiv plc | 192 | 17,611 | ||||||
BorgWarner, Inc. | 223 | 9,631 | ||||||
|
| |||||||
27,242 | ||||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
Tesla, Inc.* | 8 | 2,743 | ||||||
Thor Industries, Inc. | 80 | 7,811 | ||||||
|
| |||||||
10,554 | ||||||||
|
| |||||||
Banks — 5.1% | ||||||||
Citizens Financial Group, Inc. | 302 | 11,759 | ||||||
Comerica, Inc. | 129 | 11,747 | ||||||
East West Bancorp, Inc. | 246 | 16,052 | ||||||
Fifth Third Bancorp | 689 | 19,771 | ||||||
First Republic Bank | 194 | 18,779 | ||||||
Huntington Bancshares, Inc. | 752 | 11,094 | ||||||
M&T Bank Corp. | 143 | 24,290 | ||||||
SunTrust Banks, Inc. | 311 | 20,514 | ||||||
Zions Bancorp | 105 | 5,547 | ||||||
|
| |||||||
139,553 | ||||||||
|
| |||||||
Beverages — 1.6% | ||||||||
Constellation Brands, Inc., Class A | 57 | 12,384 | ||||||
Dr Pepper Snapple Group, Inc. | 183 | 22,299 | ||||||
Molson Coors Brewing Co., Class B | 119 | 8,109 | ||||||
|
| |||||||
42,792 | ||||||||
|
| |||||||
Biotechnology — 2.0% | ||||||||
BioMarin Pharmaceutical, Inc.* | 78 | 7,348 | ||||||
Exact Sciences Corp.* | 138 | 8,257 | ||||||
Exelixis, Inc.* | 390 | 8,397 | ||||||
Intercept Pharmaceuticals, Inc.* | 78 | 6,536 | ||||||
Sage Therapeutics, Inc.* | 50 | 7,858 | ||||||
Spark Therapeutics, Inc.* | 89 | 7,332 | ||||||
Vertex Pharmaceuticals, Inc.* | 56 | 9,586 | ||||||
|
| |||||||
55,314 | ||||||||
|
| |||||||
Building Products — 1.5% | ||||||||
Fortune Brands Home & Security, Inc. | 367 | 19,700 | ||||||
Lennox International, Inc. | 106 | 21,204 | ||||||
|
| |||||||
40,904 | ||||||||
|
| |||||||
Capital Markets — 5.3% | ||||||||
Affiliated Managers Group, Inc. | 46 | 6,898 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Capital Markets — continued | ||||||||
Ameriprise Financial, Inc. | 147 | 20,518 | ||||||
Invesco Ltd. | 351 | 9,328 | ||||||
Nasdaq, Inc. | 191 | 17,424 | ||||||
Northern Trust Corp. | 145 | 14,888 | ||||||
Raymond James Financial, Inc. | 141 | 12,610 | ||||||
S&P Global, Inc. | 135 | 27,484 | ||||||
T. Rowe Price Group, Inc. | 181 | 20,955 | ||||||
TD Ameritrade Holding Corp. | 253 | 13,835 | ||||||
|
| |||||||
143,940 | ||||||||
|
| |||||||
Chemicals — 0.4% | ||||||||
Sherwin-Williams Co. (The) | 29 | 11,622 | ||||||
|
| |||||||
Commercial Services & Supplies — 2.2% | ||||||||
Copart, Inc.* | 376 | 21,255 | ||||||
Waste Connections, Inc. | 537 | 40,418 | ||||||
|
| |||||||
61,673 | ||||||||
|
| |||||||
Communications Equipment — 1.9% | ||||||||
Arista Networks, Inc.* | 68 | 17,584 | ||||||
CommScope Holding Co., Inc.* | 384 | 11,210 | ||||||
Palo Alto Networks, Inc.* | 108 | 22,203 | ||||||
|
| |||||||
50,997 | ||||||||
|
| |||||||
Construction Materials — 1.2% | ||||||||
Eagle Materials, Inc. | 122 | 12,775 | ||||||
Vulcan Materials Co. | 147 | 19,010 | ||||||
|
| |||||||
31,785 | ||||||||
|
| |||||||
Consumer Finance — 0.5% | ||||||||
Ally Financial, Inc. | 493 | 12,959 | ||||||
|
| |||||||
Containers & Packaging — 2.3% | ||||||||
Avery Dennison Corp. | 148 | 15,121 | ||||||
Ball Corp. | 605 | 21,513 | ||||||
Silgan Holdings, Inc. | 437 | 11,726 | ||||||
WestRock Co. | 244 | 13,935 | ||||||
|
| |||||||
62,295 | ||||||||
|
| |||||||
Distributors — 0.9% | ||||||||
Genuine Parts Co. | 122 | 11,182 | ||||||
LKQ Corp.* | 393 | 12,540 | ||||||
|
| |||||||
23,722 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.4% | ||||||||
Bright Horizons Family Solutions, Inc.* | 114 | 11,698 | ||||||
|
| |||||||
Electric Utilities — 1.2% | ||||||||
Edison International | 109 | 6,916 | ||||||
Evergy, Inc. | 83 | 4,681 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 15 |
Table of Contents
JPMorgan Mid Cap Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Electric Utilities — continued | ||||||||
Xcel Energy, Inc. | 467 | 21,316 | ||||||
|
| |||||||
32,913 | ||||||||
|
| |||||||
Electrical Equipment — 1.1% | ||||||||
Acuity Brands, Inc. | 86 | 10,011 | ||||||
AMETEK, Inc. | 178 | 12,821 | ||||||
Hubbell, Inc. | 68 | 7,150 | ||||||
|
| |||||||
29,982 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 3.8% |
| |||||||
Amphenol Corp., Class A | 411 | 35,802 | ||||||
Arrow Electronics, Inc.* | 197 | 14,815 | ||||||
CDW Corp. | 190 | 15,368 | ||||||
Corning, Inc. | 485 | 13,329 | ||||||
IPG Photonics Corp.* | 52 | 11,406 | ||||||
Keysight Technologies, Inc.* | 207 | 12,211 | ||||||
|
| |||||||
102,931 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 5.3% |
| |||||||
American Campus Communities, Inc. | 157 | 6,713 | ||||||
American Homes 4 Rent, Class A | 307 | 6,813 | ||||||
AvalonBay Communities, Inc. | 82 | 14,082 | ||||||
Boston Properties, Inc. | 112 | 13,992 | ||||||
Brixmor Property Group, Inc. | 548 | 9,552 | ||||||
Essex Property Trust, Inc. | 35 | 8,478 | ||||||
Federal Realty Investment Trust | 95 | 12,072 | ||||||
JBG SMITH Properties | 143 | 5,219 | ||||||
Kimco Realty Corp. | 464 | 7,879 | ||||||
Outfront Media, Inc. | 438 | 8,510 | ||||||
Park Hotels & Resorts, Inc. | 132 | 4,033 | ||||||
Rayonier, Inc. | 303 | 11,706 | ||||||
Regency Centers Corp. | 119 | 7,373 | ||||||
Vornado Realty Trust | 186 | 13,737 | ||||||
Weyerhaeuser Co. | 281 | 10,261 | ||||||
WP Carey, Inc. | 76 | 5,070 | ||||||
|
| |||||||
145,490 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.6% | ||||||||
Kroger Co. (The) | 550 | 15,637 | ||||||
|
| |||||||
Food Products — 0.7% | ||||||||
Pinnacle Foods, Inc. | 167 | 10,847 | ||||||
Post Holdings, Inc.* | 113 | 9,707 | ||||||
|
| |||||||
20,554 | ||||||||
|
| |||||||
Gas Utilities — 0.5% | ||||||||
National Fuel Gas Co. | 238 | 12,601 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Health Care Equipment & Supplies — 2.0% | ||||||||
DexCom, Inc.* | 150 | 14,209 | ||||||
Edwards Lifesciences Corp.* | 82 | 11,944 | ||||||
ResMed, Inc. | 130 | 13,507 | ||||||
Zimmer Biomet Holdings, Inc. | 139 | 15,491 | ||||||
|
| |||||||
55,151 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.8% | ||||||||
Acadia Healthcare Co., Inc.* | 261 | 10,669 | ||||||
AmerisourceBergen Corp. | 254 | 21,678 | ||||||
Centene Corp.* | 148 | 18,261 | ||||||
Cigna Corp. | 89 | 15,090 | ||||||
Henry Schein, Inc.* | 133 | 9,661 | ||||||
Humana, Inc. | 39 | 11,646 | ||||||
Laboratory Corp. of America Holdings* | 74 | 13,282 | ||||||
Premier, Inc., Class A* | 233 | 8,484 | ||||||
Universal Health Services, Inc., Class B | 101 | 11,240 | ||||||
WellCare Health Plans, Inc.* | 42 | 10,224 | ||||||
|
| |||||||
130,235 | ||||||||
|
| |||||||
Health Care Technology — 0.9% | ||||||||
Teladoc, Inc.* | 188 | 10,913 | ||||||
Veeva Systems, Inc., Class A* | 169 | 13,005 | ||||||
|
| |||||||
23,918 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.7% | ||||||||
Hilton Worldwide Holdings, Inc. | 534 | 42,235 | ||||||
Marriott International, Inc., Class A | 33 | 4,218 | ||||||
Red Rock Resorts, Inc., Class A | 404 | 13,548 | ||||||
Vail Resorts, Inc. | 48 | 13,024 | ||||||
|
| |||||||
73,025 | ||||||||
|
| |||||||
Household Durables — 1.2% | ||||||||
Mohawk Industries, Inc.* | 110 | 23,493 | ||||||
Newell Brands, Inc. | 379 | 9,776 | ||||||
|
| |||||||
33,269 | ||||||||
|
| |||||||
Household Products — 0.2% | ||||||||
Energizer Holdings, Inc. | 93 | 5,866 | ||||||
|
| |||||||
Industrial Conglomerates — 0.5% | ||||||||
Carlisle Cos., Inc. | 129 | 13,931 | ||||||
|
| |||||||
Insurance — 4.1% | ||||||||
Alleghany Corp. | 13 | 7,328 | ||||||
Chubb Ltd. | 25 | 3,137 | ||||||
Hartford Financial Services Group, Inc. (The) | 352 | 18,015 | ||||||
Loews Corp. | 481 | 23,235 | ||||||
Marsh & McLennan Cos., Inc. | 138 | 11,347 | ||||||
Principal Financial Group, Inc. | 135 | 7,169 |
SEE NOTES TO FINANCIAL STATEMENTS.
16 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Insurance — continued | ||||||||
Progressive Corp. (The) | 371 | 21,948 | ||||||
Unum Group | 176 | 6,522 | ||||||
WR Berkley Corp. | 98 | 7,088 | ||||||
XL Group Ltd. (Bermuda) | 122 | 6,840 | ||||||
|
| |||||||
112,629 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.0% | ||||||||
Expedia Group, Inc. | 142 | 17,068 | ||||||
Wayfair, Inc., Class A* | 79 | 9,418 | ||||||
|
| |||||||
26,486 | ||||||||
|
| |||||||
Internet Software & Services — 2.5% | ||||||||
DocuSign, Inc.* | 46 | 2,457 | ||||||
GoDaddy, Inc., Class A* | 339 | 23,948 | ||||||
GrubHub, Inc.* | 113 | 11,865 | ||||||
Match Group, Inc.* | 165 | 6,407 | ||||||
Spotify Technology SA* | 60 | 10,094 | ||||||
Twitter, Inc.* | 325 | 14,184 | ||||||
|
| |||||||
68,955 | ||||||||
|
| |||||||
IT Services — 3.9% | ||||||||
Fiserv, Inc.* | 242 | 17,952 | ||||||
Gartner, Inc.* | 141 | 18,699 | ||||||
Global Payments, Inc. | 261 | 29,132 | ||||||
Jack Henry & Associates, Inc. | 110 | 14,392 | ||||||
Square, Inc., Class A* | 241 | 14,843 | ||||||
Worldpay, Inc.* | 150 | 12,267 | ||||||
|
| |||||||
107,285 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.4% | ||||||||
Illumina, Inc.* | 40 | 11,110 | ||||||
|
| |||||||
Machinery — 4.3% | ||||||||
Fortive Corp. | 246 | 18,946 | ||||||
IDEX Corp. | 99 | 13,466 | ||||||
Middleby Corp. (The)* | 52 | 5,428 | ||||||
Nordson Corp. | 110 | 14,125 | ||||||
Oshkosh Corp. | 208 | 14,591 | ||||||
Parker-Hannifin Corp. | 45 | 6,998 | ||||||
Snap-on, Inc. | 111 | 17,903 | ||||||
Stanley Black & Decker, Inc. | 109 | 14,423 | ||||||
WABCO Holdings, Inc.* | 101 | 11,795 | ||||||
|
| |||||||
117,675 | ||||||||
|
| |||||||
Marine — 0.2% | ||||||||
Kirby Corp.* | 82 | 6,889 | ||||||
|
| |||||||
Media — 0.6% | ||||||||
CBS Corp. (Non-Voting), Class B | 164 | 9,239 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Media — continued | ||||||||
DISH Network Corp., Class A* | 234 | 7,872 | ||||||
|
| |||||||
17,111 | ||||||||
|
| |||||||
Multiline Retail — 1.0% | ||||||||
Kohl’s Corp. | 257 | 18,719 | ||||||
Nordstrom, Inc. | 146 | 7,579 | ||||||
|
| |||||||
26,298 | ||||||||
|
| |||||||
Multi-Utilities — 2.1% | ||||||||
CMS Energy Corp. | 487 | 23,041 | ||||||
Sempra Energy | 115 | 13,407 | ||||||
WEC Energy Group, Inc. | 335 | 21,678 | ||||||
|
| |||||||
58,126 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 4.0% | ||||||||
Concho Resources, Inc.* | 148 | 20,434 | ||||||
Energen Corp.* | 400 | 29,135 | ||||||
EQT Corp. | 495 | 27,327 | ||||||
PBF Energy, Inc., Class A | 213 | 8,947 | ||||||
Williams Cos., Inc. (The) | 910 | 24,672 | ||||||
|
| |||||||
110,515 | ||||||||
|
| |||||||
Personal Products — 0.6% | ||||||||
Coty, Inc., Class A | 579 | 8,162 | ||||||
Edgewell Personal Care Co.* | 153 | 7,713 | ||||||
|
| |||||||
15,875 | ||||||||
|
| |||||||
Pharmaceuticals — 1.1% | ||||||||
Catalent, Inc.* | 228 | 9,547 | ||||||
Jazz Pharmaceuticals plc* | 123 | 21,262 | ||||||
|
| |||||||
30,809 | ||||||||
|
| |||||||
Professional Services — 0.1% | ||||||||
Verisk Analytics, Inc.* | 26 | 2,838 | ||||||
|
| |||||||
Real Estate Management & Development —1.1% |
| |||||||
CBRE Group, Inc., Class A* | 615 | 29,342 | ||||||
|
| |||||||
Road & Rail — 0.5% | ||||||||
Old Dominion Freight Line, Inc. | 101 | 15,030 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 2.3% |
| |||||||
Analog Devices, Inc. | 120 | 11,471 | ||||||
Broadcom, Inc. | 38 | 9,099 | ||||||
Cavium, Inc.* | 225 | 19,462 | ||||||
Lam Research Corp. | 89 | 15,401 | ||||||
Teradyne, Inc. | 236 | 8,992 | ||||||
|
| |||||||
64,425 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 17 |
Table of Contents
JPMorgan Mid Cap Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Software — 6.0% | ||||||||
Autodesk, Inc.* | 123 | 16,072 | ||||||
Electronic Arts, Inc.* | 113 | 15,992 | ||||||
Guidewire Software, Inc.* | 111 | 9,846 | ||||||
Paycom Software, Inc.* | 107 | 10,604 | ||||||
Proofpoint, Inc.* | 108 | 12,477 | ||||||
Red Hat, Inc.* | 147 | 19,806 | ||||||
ServiceNow, Inc.* | 159 | 27,388 | ||||||
Splunk, Inc.* | 162 | 16,056 | ||||||
Synopsys, Inc.* | 141 | 12,044 | ||||||
Take-Two Interactive Software, Inc.* | 95 | 11,197 | ||||||
Tyler Technologies, Inc.* | 58 | 12,815 | ||||||
|
| |||||||
164,297 | ||||||||
|
| |||||||
Specialty Retail — 5.2% | ||||||||
AutoZone, Inc.* | 23 | 15,694 | ||||||
Best Buy Co., Inc. | 193 | 14,372 | ||||||
Floor & Decor Holdings, Inc., Class A* | 76 | 3,747 | ||||||
Gap, Inc. (The) | 434 | 14,057 | ||||||
O’Reilly Automotive, Inc.* | 83 | 22,734 | ||||||
Ross Stores, Inc. | 373 | 31,603 | ||||||
Tiffany & Co. | 122 | 16,035 | ||||||
Tractor Supply Co. | 163 | 12,430 | ||||||
Ulta Beauty, Inc.* | 47 | 10,973 | ||||||
|
| |||||||
141,645 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 2.0% | ||||||||
Lululemon Athletica, Inc.* | 132 | 16,430 | ||||||
PVH Corp. | 111 | 16,639 | ||||||
Ralph Lauren Corp. | 88 | 11,081 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Textiles, Apparel & Luxury Goods — continued |
| |||||||
Tapestry, Inc. | 203 | 9,487 | ||||||
|
| |||||||
53,637 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.9% | ||||||||
Fastenal Co. | 174 | 8,363 | ||||||
MSC Industrial Direct Co., Inc., Class A | 151 | 12,811 | ||||||
WW Grainger, Inc. | 9 | 2,745 | ||||||
|
| |||||||
23,919 | ||||||||
|
| |||||||
Total Common Stocks | 2,655,061 | |||||||
|
| |||||||
Short-Term Investments — 3.0% |
| |||||||
Investment Companies — 3.0% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 80,883 | 80,883 | ||||||
|
| |||||||
Total Investments — 100.1% | 2,735,944 | |||||||
Liabilities in Excess of | (2,236 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 2,733,708 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
18 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.3% | ||||||||
Aerospace & Defense — 1.0% | ||||||||
HEICO Corp., Class A | 650 | 39,614 | ||||||
|
| |||||||
Air Freight & Logistics — 1.0% | ||||||||
XPO Logistics, Inc.* | 394 | 39,441 | ||||||
|
| |||||||
Auto Components — 1.3% | ||||||||
Aptiv plc | 550 | 50,397 | ||||||
|
| |||||||
Automobiles — 0.8% | ||||||||
Tesla, Inc.* | 23 | 7,870 | ||||||
Thor Industries, Inc. | 230 | 22,371 | ||||||
|
| |||||||
30,241 | ||||||||
|
| |||||||
Banks — 2.5% | ||||||||
Comerica, Inc. | 370 | 33,631 | ||||||
East West Bancorp, Inc. | 700 | 45,650 | ||||||
First Republic Bank | 201 | 19,406 | ||||||
|
| |||||||
98,687 | ||||||||
|
| |||||||
Biotechnology — 4.0% | ||||||||
BioMarin Pharmaceutical, Inc.* | 223 | 21,035 | ||||||
Exact Sciences Corp.* | 396 | 23,647 | ||||||
Exelixis, Inc.* | 1,117 | 24,044 | ||||||
Intercept Pharmaceuticals, Inc.* | 223 | 18,718 | ||||||
Sage Therapeutics, Inc.* | 144 | 22,525 | ||||||
Spark Therapeutics, Inc.* | 254 | 20,988 | ||||||
Vertex Pharmaceuticals, Inc.* | 162 | 27,464 | ||||||
|
| |||||||
158,421 | ||||||||
|
| |||||||
Building Products — 2.2% | ||||||||
Fortune Brands Home & Security, Inc. | 446 | 23,967 | ||||||
Lennox International, Inc. | 303 | 60,712 | ||||||
|
| |||||||
84,679 | ||||||||
|
| |||||||
Capital Markets — 5.4% | ||||||||
Affiliated Managers Group, Inc. | 133 | 19,745 | ||||||
Ameriprise Financial, Inc. | 167 | 23,346 | ||||||
Nasdaq, Inc. | 547 | 49,879 | ||||||
S&P Global, Inc. | 386 | 78,687 | ||||||
TD Ameritrade Holding Corp. | 723 | 39,601 | ||||||
|
| |||||||
211,258 | ||||||||
|
| |||||||
Commercial Services & Supplies — 4.5% | ||||||||
Copart, Inc.* | 1,076 | 60,842 | ||||||
Waste Connections, Inc. | 1,537 | 115,681 | ||||||
|
| |||||||
176,523 | ||||||||
|
| |||||||
Communications Equipment — 2.9% | ||||||||
Arista Networks, Inc.* | 196 | 50,370 | ||||||
Palo Alto Networks, Inc.* | 309 | 63,576 | ||||||
|
| |||||||
113,946 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Construction Materials — 2.3% | ||||||||
Eagle Materials, Inc. | 348 | 36,574 | ||||||
Vulcan Materials Co. | 422 | 54,433 | ||||||
|
| |||||||
91,007 | ||||||||
|
| |||||||
Containers & Packaging — 1.1% | ||||||||
Avery Dennison Corp. | 424 | 43,270 | ||||||
|
| |||||||
Distributors — 0.9% | ||||||||
LKQ Corp.* | 1,125 | 35,897 | ||||||
|
| |||||||
Diversified Consumer Services — 0.9% | ||||||||
Bright Horizons Family Solutions, Inc.* | 327 | 33,473 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 3.3% |
| |||||||
Amphenol Corp., Class A | 678 | 59,073 | ||||||
Corning, Inc. | 1,387 | 38,154 | ||||||
IPG Photonics Corp.* | 148 | 32,653 | ||||||
|
| |||||||
129,880 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
DexCom, Inc.* | 428 | 40,680 | ||||||
Edwards Lifesciences Corp.* | 235 | 34,194 | ||||||
ResMed, Inc. | 373 | 38,666 | ||||||
|
| |||||||
113,540 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.0% | ||||||||
Acadia Healthcare Co., Inc.* | 747 | 30,549 | ||||||
AmerisourceBergen Corp. | 236 | 20,098 | ||||||
Centene Corp.* | 424 | 52,253 | ||||||
Premier, Inc., Class A* | 662 | 24,069 | ||||||
WellCare Health Plans, Inc.* | 118 | 29,130 | ||||||
|
| |||||||
156,099 | ||||||||
|
| |||||||
Health Care Technology — 1.7% | ||||||||
Teladoc, Inc.* | 538 | 31,243 | ||||||
Veeva Systems, Inc., Class A* | 484 | 37,227 | ||||||
|
| |||||||
68,470 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 3.5% | ||||||||
Hilton Worldwide Holdings, Inc. | 793 | 62,801 | ||||||
Red Rock Resorts, Inc., Class A | 1,158 | 38,786 | ||||||
Vail Resorts, Inc. | 136 | 37,290 | ||||||
|
| |||||||
138,877 | ||||||||
|
| |||||||
Insurance — 0.8% | ||||||||
Progressive Corp. (The) | 534 | 31,580 | ||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.7% | ||||||||
Wayfair, Inc., Class A* | 227 | 26,949 | ||||||
|
| |||||||
Internet Software & Services — 4.6% | ||||||||
DocuSign, Inc.* | 133 | 7,053 | ||||||
GoDaddy, Inc., Class A* | 971 | 68,538 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 19 |
Table of Contents
JPMorgan Mid Cap Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Internet Software & Services — continued | ||||||||
GrubHub, Inc.* | 324 | 33,970 | ||||||
Spotify Technology SA* | 172 | 28,904 | ||||||
Twitter, Inc.* | 930 | 40,600 | ||||||
|
| |||||||
179,065 | ||||||||
|
| |||||||
IT Services — 6.8% | ||||||||
Fiserv, Inc.* | 694 | 51,389 | ||||||
Gartner, Inc.* | 403 | 53,516 | ||||||
Global Payments, Inc. | 748 | 83,383 | ||||||
Square, Inc., Class A* | 689 | 42,488 | ||||||
Worldpay, Inc.* | 429 | 35,112 | ||||||
|
| |||||||
265,888 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.8% | ||||||||
Illumina, Inc.* | 114 | 31,804 | ||||||
|
| |||||||
Machinery — 5.9% | ||||||||
Fortive Corp. | 703 | 54,224 | ||||||
Nordson Corp. | 315 | 40,436 | ||||||
Oshkosh Corp. | 594 | 41,763 | ||||||
Parker-Hannifin Corp. | 129 | 20,042 | ||||||
Stanley Black & Decker, Inc. | 311 | 41,277 | ||||||
WABCO Holdings, Inc.* | 289 | 33,784 | ||||||
|
| |||||||
231,526 | ||||||||
|
| |||||||
Marine — 0.5% | ||||||||
Kirby Corp.* | 236 | 19,721 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 1.5% | ||||||||
Concho Resources, Inc.* | 423 | 58,484 | ||||||
|
| |||||||
Pharmaceuticals — 2.3% | ||||||||
Catalent, Inc.* | 650 | 27,224 | ||||||
Jazz Pharmaceuticals plc* | 353 | 60,869 | ||||||
|
| |||||||
88,093 | ||||||||
|
| |||||||
Professional Services — 0.2% | ||||||||
Verisk Analytics, Inc.* | 76 | 8,206 | ||||||
|
| |||||||
Real Estate Management & Development — 1.2% |
| |||||||
CBRE Group, Inc., Class A* | 1,020 | 48,706 | ||||||
|
| |||||||
Road & Rail — 1.1% | ||||||||
Old Dominion Freight Line, Inc. | 289 | 43,049 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.9% |
| |||||||
Broadcom, Inc. | 107 | 26,019 | ||||||
Cavium, Inc.* | 644 | 55,697 | ||||||
Lam Research Corp. | 255 | 44,075 | ||||||
Teradyne, Inc. | 671 | 25,557 | ||||||
|
| |||||||
151,348 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Software — 11.1% | ||||||||
Autodesk, Inc.* | 351 | 46,026 | ||||||
Electronic Arts, Inc.* | 325 | 45,790 | ||||||
Guidewire Software, Inc.* | 318 | 28,190 | ||||||
Paycom Software, Inc.* | 307 | 30,350 | ||||||
Proofpoint, Inc.* | 310 | 35,723 | ||||||
Red Hat, Inc.* | 422 | 56,691 | ||||||
ServiceNow, Inc.* | 454 | 78,366 | ||||||
Splunk, Inc.* | 464 | 45,971 | ||||||
Take-Two Interactive Software, Inc.* | 271 | 32,052 | ||||||
Tyler Technologies, Inc.* | 165 | 36,713 | ||||||
|
| |||||||
435,872 | ||||||||
|
| |||||||
Specialty Retail — 6.0% | ||||||||
Floor & Decor Holdings, Inc., Class A* | 217 | 10,691 | ||||||
O’Reilly Automotive, Inc.* | 238 | 65,045 | ||||||
Ross Stores, Inc. | 1,067 | 90,461 | ||||||
Tractor Supply Co. | 465 | 35,583 | ||||||
Ulta Beauty, Inc.* | 135 | 31,439 | ||||||
|
| |||||||
233,219 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.9% | ||||||||
Lululemon Athletica, Inc.* | 377 | 47,031 | ||||||
Tapestry, Inc. | 582 | 27,167 | ||||||
|
| |||||||
74,198 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.8% | ||||||||
Fastenal Co. | 492 | 23,694 | ||||||
WW Grainger, Inc. | 26 | 8,019 | ||||||
|
| |||||||
31,713 | ||||||||
|
| |||||||
Total Common Stocks | 3,773,141 | |||||||
|
| |||||||
Short-Term Investments — 2.9% |
| |||||||
Investment Companies — 2.9% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 114,331 | 114,331 | ||||||
|
| |||||||
Total Investments — 99.2% | 3,887,472 | |||||||
Other Assets Less Liabilities — 0.8% | 29,772 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 3,917,244 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.2% |
| |||||||
Auto Components — 0.7% | ||||||||
BorgWarner, Inc. | 2,984 | 128,800 | ||||||
|
| |||||||
Banks — 7.6% | ||||||||
Citizens Financial Group, Inc. | 4,040 | 157,148 | ||||||
Fifth Third Bancorp | 8,833 | 253,512 | ||||||
First Republic Bank | 1,651 | 159,781 | ||||||
Huntington Bancshares, Inc. | 9,638 | 142,256 | ||||||
M&T Bank Corp. | 1,905 | 324,101 | ||||||
SunTrust Banks, Inc. | 4,147 | 273,795 | ||||||
Zions Bancorp | 1,412 | 74,401 | ||||||
|
| |||||||
1,384,994 | ||||||||
|
| |||||||
Beverages — 3.1% | ||||||||
Constellation Brands, Inc., Class A | 756 | 165,450 | ||||||
Dr Pepper Snapple Group, Inc. | 2,439 | 297,584 | ||||||
Molson Coors Brewing Co., Class B | 1,530 | 104,097 | ||||||
|
| |||||||
567,131 | ||||||||
|
| |||||||
Building Products — 0.8% | ||||||||
Fortune Brands Home & Security, Inc. | 2,806 | 150,665 | ||||||
|
| |||||||
Capital Markets — 5.1% | ||||||||
Ameriprise Financial, Inc. | 1,181 | 165,200 | ||||||
Invesco Ltd. | 4,698 | 124,784 | ||||||
Northern Trust Corp. | 1,933 | 198,837 | ||||||
Raymond James Financial, Inc. | 1,886 | 168,495 | ||||||
T. Rowe Price Group, Inc. | 2,409 | 279,667 | ||||||
|
| |||||||
936,983 | ||||||||
|
| |||||||
Chemicals — 0.9% | ||||||||
Sherwin-Williams Co. (The) | 381 | 155,324 | ||||||
|
| |||||||
Communications Equipment — 0.8% | ||||||||
CommScope Holding Co., Inc.* | 5,131 | 149,858 | ||||||
|
| |||||||
Consumer Finance — 1.0% | ||||||||
Ally Financial, Inc. | 6,591 | 173,157 | ||||||
|
| |||||||
Containers & Packaging — 3.4% | ||||||||
Ball Corp. | 7,766 | 276,088 | ||||||
Silgan Holdings, Inc. | 5,842 | 156,730 | ||||||
WestRock Co. | 3,265 | 186,154 | ||||||
|
| |||||||
618,972 | ||||||||
|
| |||||||
Distributors — 0.8% | ||||||||
Genuine Parts Co. | 1,628 | 149,476 | ||||||
|
| |||||||
Electric Utilities — 2.4% | ||||||||
Edison International | 1,464 | 92,649 | ||||||
Evergy, Inc. | 1,108 | 62,227 | ||||||
Xcel Energy, Inc. | 6,228 | 284,478 | ||||||
|
| |||||||
439,354 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electrical Equipment — 2.0% | ||||||||
Acuity Brands, Inc. | 914 | 105,909 | ||||||
AMETEK, Inc. | 2,374 | 171,311 | ||||||
Hubbell, Inc. | 906 | 95,764 | ||||||
|
| |||||||
372,984 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 4.2% |
| |||||||
Amphenol Corp., Class A | 2,323 | 202,468 | ||||||
Arrow Electronics, Inc.* | 2,629 | 197,881 | ||||||
CDW Corp. | 2,540 | 205,228 | ||||||
Keysight Technologies, Inc.* | 2,764 | 163,183 | ||||||
|
| |||||||
768,760 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 10.3% |
| |||||||
American Campus Communities, Inc. | 2,098 | 89,942 | ||||||
American Homes 4 Rent, Class A | 4,115 | 91,275 | ||||||
AvalonBay Communities, Inc. | 1,094 | 188,094 | ||||||
Boston Properties, Inc. | 1,490 | 186,905 | ||||||
Brixmor Property Group, Inc. | 7,330 | 127,759 | ||||||
Essex Property Trust, Inc. | 475 | 113,449 | ||||||
Federal Realty Investment Trust | 1,275 | 161,331 | ||||||
JBG SMITH Properties | 1,921 | 70,043 | ||||||
Kimco Realty Corp. | 6,208 | 105,480 | ||||||
Outfront Media, Inc. | 5,855 | 113,878 | ||||||
Park Hotels & Resorts, Inc. | 1,771 | 54,260 | ||||||
Rayonier, Inc. | 4,044 | 156,463 | ||||||
Regency Centers Corp. | 1,590 | 98,735 | ||||||
Vornado Realty Trust | 2,483 | 183,519 | ||||||
Weyerhaeuser Co. | 3,764 | 137,217 | ||||||
|
| |||||||
1,878,350 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.1% | ||||||||
Kroger Co. (The) | 7,340 | 208,822 | ||||||
|
| |||||||
Food Products — 1.5% | ||||||||
Pinnacle Foods, Inc. | 2,229 | 145,021 | ||||||
Post Holdings, Inc.* | 1,509 | 129,814 | ||||||
|
| |||||||
274,835 | ||||||||
|
| |||||||
Gas Utilities — 0.9% | ||||||||
National Fuel Gas Co. | 3,179 | 168,385 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 1.1% | ||||||||
Zimmer Biomet Holdings, Inc. | 1,788 | 199,234 | ||||||
|
| |||||||
Health Care Providers & Services — 5.5% | ||||||||
AmerisourceBergen Corp. | 2,296 | 195,809 | ||||||
Cigna Corp. | 1,186 | 201,531 | ||||||
Henry Schein, Inc.* | 1,779 | 129,220 | ||||||
Humana, Inc. | 523 | 155,676 | ||||||
Laboratory Corp. of America Holdings* | 988 | 177,458 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 21 |
Table of Contents
JPMorgan Mid Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Health Care Providers & Services — continued |
| |||||||
Universal Health Services, Inc., Class B | 1,348 | 150,245 | ||||||
|
| |||||||
1,009,939 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.8% | ||||||||
Hilton Worldwide Holdings, Inc. | 3,422 | 270,887 | ||||||
Marriott International, Inc., Class A | 448 | 56,711 | ||||||
|
| |||||||
327,598 | ||||||||
|
| |||||||
Household Durables — 2.4% | ||||||||
Mohawk Industries, Inc.* | 1,463 | 313,486 | ||||||
Newell Brands, Inc. | 5,070 | 130,746 | ||||||
|
| |||||||
444,232 | ||||||||
|
| |||||||
Household Products — 0.4% | ||||||||
Energizer Holdings, Inc. | 1,249 | 78,661 | ||||||
|
| |||||||
Industrial Conglomerates — 1.0% | ||||||||
Carlisle Cos., Inc. | 1,718 | 186,098 | ||||||
|
| |||||||
Insurance — 7.4% | ||||||||
Alleghany Corp. | 171 | 98,107 | ||||||
Chubb Ltd. | 333 | 42,310 | ||||||
Hartford Financial Services Group, Inc. (The) | 4,736 | 242,144 | ||||||
Loews Corp. | 6,422 | 310,036 | ||||||
Marsh & McLennan Cos., Inc. | 1,850 | 151,685 | ||||||
Principal Financial Group, Inc. | 1,736 | 91,924 | ||||||
Progressive Corp. (The) | 2,467 | 145,943 | ||||||
Unum Group | 2,363 | 87,407 | ||||||
WR Berkley Corp. | 1,311 | 94,933 | ||||||
XL Group Ltd. (Bermuda) | 1,638 | 91,634 | ||||||
|
| |||||||
1,356,123 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 1.3% | ||||||||
Expedia Group, Inc. | 1,896 | 227,883 | ||||||
|
| |||||||
Internet Software & Services — 0.5% | ||||||||
Match Group, Inc.* | 2,216 | 85,861 | ||||||
|
| |||||||
IT Services — 1.1% | ||||||||
Jack Henry & Associates, Inc. | 1,475 | 192,237 | ||||||
|
| |||||||
Machinery — 2.7% | ||||||||
IDEX Corp. | 1,318 | 179,900 | ||||||
Middleby Corp. (The)* | 697 | 72,829 | ||||||
Snap-on, Inc. | 1,487 | 238,996 | ||||||
|
| |||||||
491,725 | ||||||||
|
| |||||||
Media — 1.3% | ||||||||
CBS Corp. (Non-Voting), Class B | 2,198 | 123,594 | ||||||
DISH Network Corp., Class A* | 3,136 | 105,385 | ||||||
|
| |||||||
228,979 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.4% |
| |||||||
Starwood Property Trust, Inc. | 3,091 | 67,110 | ||||||
|
| |||||||
Multiline Retail — 1.9% | ||||||||
Kohl’s Corp. | 3,428 | 249,876 | ||||||
Nordstrom, Inc. | 1,960 | 101,477 | ||||||
|
| |||||||
351,353 | ||||||||
|
| |||||||
Multi-Utilities — 4.2% | ||||||||
CMS Energy Corp. | 6,503 | 307,456 | ||||||
Sempra Energy | 1,543 | 179,116 | ||||||
WEC Energy Group, Inc. | 4,475 | 289,284 | ||||||
|
| |||||||
775,856 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.5% | ||||||||
Energen Corp.* | 5,337 | 388,647 | ||||||
EQT Corp. | 6,606 | 364,540 | ||||||
PBF Energy, Inc., Class A | 2,855 | 119,705 | ||||||
Williams Cos., Inc. (The) | 11,684 | 316,748 | ||||||
|
| |||||||
1,189,640 | ||||||||
|
| |||||||
Personal Products — 1.2% | ||||||||
Coty, Inc., Class A | 7,748 | 109,251 | ||||||
Edgewell Personal Care Co.* | 2,047 | 103,279 | ||||||
|
| |||||||
212,530 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.9% |
| |||||||
CBRE Group, Inc., Class A* | 3,451 | 164,732 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 0.8% |
| |||||||
Analog Devices, Inc. | 1,598 | 153,323 | ||||||
|
| |||||||
Software — 0.9% | ||||||||
Synopsys, Inc.* | 1,881 | 160,965 | ||||||
|
| |||||||
Specialty Retail — 4.4% | ||||||||
AutoZone, Inc.* | 312 | 209,612 | ||||||
Best Buy Co., Inc. | 2,574 | 191,974 | ||||||
Gap, Inc. (The) | 5,797 | 187,765 | ||||||
Tiffany & Co. | 1,627 | 214,126 | ||||||
|
| |||||||
803,477 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 2.0% | ||||||||
PVH Corp. | 1,484 | 222,158 | ||||||
Ralph Lauren Corp. | 1,178 | 148,124 | ||||||
|
| |||||||
370,282 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.9% | ||||||||
MSC Industrial Direct Co., Inc., Class A | 2,017 | 171,180 | ||||||
|
| |||||||
Total Common Stocks | 17,775,868 | |||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 2.8% |
| |||||||
Investment Companies — 2.8% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 511,256 | 511,256 | ||||||
|
| |||||||
Total Investments — 100.0% | 18,287,124 | |||||||
Liabilities in Excess of | (3,273 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 18,283,851 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
(c) | Amount rounds to less than 0.05% of net assets. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 23 |
Table of Contents
JPMorgan Value Advantage Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.3% | ||||||||
Aerospace & Defense — 1.0% |
| |||||||
United Technologies Corp. | 933 | 116,711 | ||||||
|
| |||||||
Airlines — 2.0% |
| |||||||
Delta Air Lines, Inc. | 3,205 | 158,795 | ||||||
Southwest Airlines Co. | 1,356 | 68,988 | ||||||
|
| |||||||
227,783 | ||||||||
|
| |||||||
Banks — 14.8% |
| |||||||
Bank of America Corp. | 12,346 | 348,034 | ||||||
Citigroup, Inc. | 2,142 | 143,352 | ||||||
Citizens Financial Group, Inc. | 2,363 | 91,917 | ||||||
Fifth Third Bancorp | 2,539 | 72,865 | ||||||
First Republic Bank | 570 | 55,147 | ||||||
M&T Bank Corp. | 1,043 | 177,469 | ||||||
PNC Financial Services Group, Inc. (The) | 1,336 | 180,558 | ||||||
SunTrust Banks, Inc. | 2,253 | 148,761 | ||||||
US Bancorp | 2,560 | 128,076 | ||||||
Wells Fargo & Co. | 6,056 | 335,751 | ||||||
|
| |||||||
1,681,930 | ||||||||
|
| |||||||
Beverages — 2.0% |
| |||||||
Dr Pepper Snapple Group, Inc. | 1,063 | 129,695 | ||||||
Molson Coors Brewing Co., Class B | 1,420 | 96,648 | ||||||
|
| |||||||
226,343 | ||||||||
|
| |||||||
Capital Markets — 4.2% |
| |||||||
Charles Schwab Corp. (The) | 1,772 | 90,574 | ||||||
Invesco Ltd. | 1,786 | 47,446 | ||||||
Morgan Stanley | 1,978 | 93,768 | ||||||
Northern Trust Corp. | 762 | 78,377 | ||||||
T. Rowe Price Group, Inc. | 1,419 | 164,678 | ||||||
|
| |||||||
474,843 | ||||||||
|
| |||||||
Chemicals — 0.3% |
| |||||||
AdvanSix, Inc.* | 929 | 34,040 | ||||||
|
| |||||||
Communications Equipment — 1.7% |
| |||||||
Cisco Systems, Inc. | 2,924 | 125,841 | ||||||
CommScope Holding Co., Inc.* | 2,182 | 63,737 | ||||||
|
| |||||||
189,578 | ||||||||
|
| |||||||
Construction Materials — 1.1% |
| |||||||
Martin Marietta Materials, Inc. | 542 | 121,062 | ||||||
|
| |||||||
Consumer Finance — 3.3% |
| |||||||
Ally Financial, Inc. | 1,994 | 52,370 | ||||||
American Express Co. | 880 | 86,250 | ||||||
Capital One Financial Corp. | 2,583 | 237,395 | ||||||
|
| |||||||
376,015 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Containers & Packaging — 2.5% |
| |||||||
Ball Corp. | 4,121 | 146,511 | ||||||
Graphic Packaging Holding Co. | 4,081 | 59,218 | ||||||
WestRock Co. | 1,479 | 84,314 | ||||||
|
| |||||||
290,043 | ||||||||
|
| |||||||
Distributors — 0.5% |
| |||||||
Genuine Parts Co. | 598 | 54,876 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.1% |
| |||||||
AT&T, Inc. | 1,059 | 34,002 | ||||||
Verizon Communications, Inc. | 1,753 | 88,197 | ||||||
|
| |||||||
122,199 | ||||||||
|
| |||||||
Electric Utilities — 4.8% |
| |||||||
American Electric Power Co., Inc. | 1,785 | 123,605 | ||||||
Duke Energy Corp. | 726 | 57,411 | ||||||
Edison International | 921 | 58,266 | ||||||
Eversource Energy | 988 | 57,901 | ||||||
NextEra Energy, Inc. | 734 | 122,565 | ||||||
Xcel Energy, Inc. | 2,681 | 122,448 | ||||||
|
| |||||||
542,196 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.6% |
| |||||||
Arrow Electronics, Inc.* | 986 | 74,257 | ||||||
|
| |||||||
Energy Equipment & Services — 0.2% |
| |||||||
Apergy Corp.* | 500 | 20,879 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 6.9% |
| |||||||
American Homes 4 Rent, Class A | 3,395 | 75,309 | ||||||
Brixmor Property Group, Inc. | 4,784 | 83,377 | ||||||
CorePoint Lodging, Inc.* | 1,449 | 37,516 | ||||||
EastGroup Properties, Inc. | 542 | 51,755 | ||||||
Federal Realty Investment Trust | 435 | 55,037 | ||||||
Kimco Realty Corp. | 4,279 | 72,696 | ||||||
Mid-America Apartment Communities, Inc. | 1,062 | 106,896 | ||||||
Outfront Media, Inc. | 3,339 | 64,938 | ||||||
Public Storage | 489 | 110,844 | ||||||
Rayonier, Inc. | 2,065 | 79,894 | ||||||
Weyerhaeuser Co. | 1,357 | 49,469 | ||||||
|
| |||||||
787,731 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.5% |
| |||||||
Kroger Co. (The) | 2,429 | 69,112 | ||||||
Walgreens Boots Alliance, Inc. | 1,716 | 102,980 | ||||||
|
| |||||||
172,092 | ||||||||
|
| |||||||
Food Products — 0.9% |
| |||||||
Post Holdings, Inc.* | 1,175 | 101,065 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Health Care Equipment & Supplies — 0.5% |
| |||||||
Medtronic plc | 609 | 52,162 | ||||||
|
| |||||||
Health Care Providers & Services — 2.4% |
| |||||||
Aetna, Inc. | 390 | 71,633 | ||||||
CVS Health Corp. | 453 | 29,175 | ||||||
HCA Healthcare, Inc. | 543 | 55,695 | ||||||
UnitedHealth Group, Inc. | 465 | 113,994 | ||||||
|
| |||||||
270,497 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.3% |
| |||||||
Brinker International, Inc. | 1,356 | 64,553 | ||||||
Hilton Worldwide Holdings, Inc. | 1,050 | 83,127 | ||||||
|
| |||||||
147,680 | ||||||||
|
| |||||||
Household Products — 1.8% |
| |||||||
Clorox Co. (The) | 298 | 40,345 | ||||||
Energizer Holdings, Inc. | 1,121 | 70,551 | ||||||
Procter & Gamble Co. (The) | 1,261 | 98,421 | ||||||
|
| |||||||
209,317 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.7% |
| |||||||
Carlisle Cos., Inc. | 642 | 69,493 | ||||||
Honeywell International, Inc. | 879 | 126,623 | ||||||
|
| |||||||
196,116 | ||||||||
|
| |||||||
Insurance — 7.4% |
| |||||||
Alleghany Corp. | 73 | 42,085 | ||||||
American International Group, Inc. | 2,453 | 130,036 | ||||||
Chubb Ltd. | 654 | 83,102 | ||||||
Fairfax Financial Holdings Ltd. (Canada) | 106 | 59,637 | ||||||
Hartford Financial Services Group, Inc. (The) | 2,075 | 106,119 | ||||||
Loews Corp. | 3,856 | 186,183 | ||||||
Marsh & McLennan Cos., Inc. | 506 | 41,480 | ||||||
Prudential Financial, Inc. | 397 | 37,128 | ||||||
Travelers Cos., Inc. (The) | 935 | 114,347 | ||||||
Unum Group | 1,215 | 44,950 | ||||||
|
| |||||||
845,067 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.5% |
| |||||||
Expedia Group, Inc. | 507 | 60,959 | ||||||
|
| |||||||
Machinery — 1.5% |
| |||||||
Dover Corp. | 1,000 | 73,215 | ||||||
Illinois Tool Works, Inc. | 413 | 57,283 | ||||||
Middleby Corp. (The)* | 392 | 40,933 | ||||||
|
| |||||||
171,431 | ||||||||
|
| |||||||
Media — 4.2% |
| |||||||
CBS Corp. (Non-Voting), Class B | 1,223 | 68,784 | ||||||
Charter Communications, Inc., Class A* | 437 | 128,217 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Media — continued |
| |||||||
Clear Channel Outdoor Holdings, Inc., Class A | 483 | 2,076 | ||||||
DISH Network Corp., Class A* | 4,393 | 147,659 | ||||||
Entercom Communications Corp., Class A | 6,373 | 48,118 | ||||||
Nexstar Media Group, Inc., Class A | 1,203 | 88,285 | ||||||
|
| |||||||
483,139 | ||||||||
|
| |||||||
Multiline Retail — 1.8% |
| |||||||
Kohl’s Corp. | 1,593 | 116,160 | ||||||
Nordstrom, Inc. | 1,790 | 92,692 | ||||||
|
| |||||||
208,852 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 8.9% |
| |||||||
ConocoPhillips | 1,849 | 128,711 | ||||||
EQT Corp. | 1,813 | 100,063 | ||||||
Exxon Mobil Corp. | 2,668 | 220,683 | ||||||
Kinder Morgan, Inc. | 6,961 | 122,999 | ||||||
Marathon Petroleum Corp. | 1,270 | 89,069 | ||||||
Occidental Petroleum Corp. | 1,517 | 126,959 | ||||||
PBF Energy, Inc., Class A | 1,010 | 42,356 | ||||||
Phillips 66 | 1,068 | 119,911 | ||||||
Williams Cos., Inc. (The) | 2,256 | 61,147 | ||||||
|
| |||||||
1,011,898 | ||||||||
|
| |||||||
Paper & Forest Products — 0.5% |
| |||||||
KapStone Paper and Packaging Corp. | 1,524 | 52,561 | ||||||
|
| |||||||
Personal Products — 0.5% |
| |||||||
Coty, Inc., Class A | 4,168 | 58,770 | ||||||
|
| |||||||
Pharmaceuticals — 6.4% |
| |||||||
Allergan plc | 678 | 112,983 | ||||||
Johnson & Johnson | 1,405 | 170,522 | ||||||
Merck & Co., Inc. | 2,754 | 167,170 | ||||||
Pfizer, Inc. | 7,655 | 277,724 | ||||||
|
| |||||||
728,399 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.8% |
| |||||||
CBRE Group, Inc., Class A* | 2,010 | 95,938 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 2.7% |
| |||||||
Analog Devices, Inc. | 761 | 73,033 | ||||||
QUALCOMM, Inc. | 1,096 | 61,515 | ||||||
Texas Instruments, Inc. | 1,526 | 168,260 | ||||||
|
| |||||||
302,808 | ||||||||
|
| |||||||
Software — 1.2% |
| |||||||
Microsoft Corp. | 1,413 | 139,348 | ||||||
|
| |||||||
Specialty Retail — 3.8% |
| |||||||
AutoZone, Inc.* | 199 | 133,820 | ||||||
Best Buy Co., Inc. | 725 | 54,091 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 25 |
Table of Contents
JPMorgan Value Advantage Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Specialty Retail — continued |
| |||||||
Dick’s Sporting Goods, Inc. | 791 | 27,883 | ||||||
Home Depot, Inc. (The) | 387 | 75,585 | ||||||
Murphy USA, Inc.* | 957 | 71,082 | ||||||
Tiffany & Co. | 524 | 69,010 | ||||||
|
| |||||||
431,471 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 0.4% |
| |||||||
Hewlett Packard Enterprise Co. | 2,998 | 43,795 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.6% |
| |||||||
Columbia Sportswear Co. | 691 | 63,164 | ||||||
|
| |||||||
Total Common Stocks | 11,187,015 | |||||||
|
| |||||||
NO. OF RIGHTS | ||||||||
Rights — 0.0% (a) | ||||||||
Media — 0.0% (a) |
| |||||||
Media General, Inc., CVR*‡ | 2,982 | 147 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 2.2% |
| |||||||
Investment Companies — 2.2% |
| |||||||
JPMorgan U.S. Government Money Market Fund Institutional Class Shares, 1.80% (b)(c) | 253,654 | 253,654 | ||||||
|
| |||||||
Total Investments — 100.5% | 11,440,816 | |||||||
Liabilities in Excess of | (56,579 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 11,384,237 | ||||||
|
|
Percentages indicated are based on net assets.
Abbreviations
CVR | Contingent Value Rights | |
(a) | Amount rounds to less than 0.05% of net assets. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(c) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 27 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | JPMorgan Mid Cap Growth Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in non-affiliates, at value | $ | 8,411,704 | $ | 2,655,061 | $ | 3,773,141 | ||||||
Investments in affiliates, at value | 218,911 | 80,883 | 114,331 | |||||||||
Cash | — | 3 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 85,021 | 75,146 | 82,370 | |||||||||
Fund shares sold | 8,219 | 1,479 | 7,558 | |||||||||
Dividends from non-affiliates | 1,163 | 2,386 | 1,052 | |||||||||
Dividends from affiliates | 280 | 101 | 165 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 8,725,298 | 2,815,059 | 3,978,617 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES: | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 13,254 | 10,527 | 53,625 | |||||||||
Fund shares redeemed | 14,107 | 68,851 | 4,390 | |||||||||
Accrued liabilities: | ||||||||||||
Investment advisory fees | 4,105 | 1,356 | 2,088 | |||||||||
Administration fees | 201 | 88 | 248 | |||||||||
Distribution fees | 836 | 102 | 273 | |||||||||
Service fees | 860 | 155 | 324 | |||||||||
Custodian and accounting fees | 40 | 13 | 19 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | — | — | (a) | — | ||||||||
Other | 308 | 259 | 406 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 33,711 | 81,351 | 61,373 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 8,691,587 | $ | 2,733,708 | $ | 3,917,244 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | JPMorgan Mid Cap Growth Fund | ||||||||||
NET ASSETS: | ||||||||||||
Paid-in-Capital | $ | 4,681,911 | $ | 1,667,630 | $ | 2,760,321 | ||||||
Accumulated undistributed (distributions in excess of) net investment income | (10,288 | ) | 5,278 | (6,360 | ) | |||||||
Accumulated net realized gains (losses) | 397,561 | 183,003 | 176,578 | |||||||||
Net unrealized appreciation (depreciation) | 3,622,403 | 877,797 | 986,705 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 8,691,587 | $ | 2,733,708 | $ | 3,917,244 | ||||||
|
|
|
|
|
| |||||||
Net Assets: | ||||||||||||
Class A | $ | 1,724,681 | $ | 402,897 | $ | 934,982 | ||||||
Class C | 740,817 | 27,666 | 82,939 | |||||||||
Class I | 1,753,505 | 326,026 | 1,140,704 | |||||||||
Class R2 | 43 | 443 | 38,486 | |||||||||
Class R3 | 266 | — | 26,638 | |||||||||
Class R4 | 12,005 | — | 14,320 | |||||||||
Class R5 | 112,830 | 6,499 | 313,336 | |||||||||
Class R6 | 4,347,440 | 1,970,177 | 1,365,839 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 8,691,587 | $ | 2,733,708 | $ | 3,917,244 | ||||||
|
|
|
|
|
| |||||||
Outstanding units of beneficial interest (shares) | ||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||
Class A | 79,353 | 7,813 | 30,321 | |||||||||
Class C | 38,665 | 557 | 3,404 | |||||||||
Class I | 78,408 | 6,231 | 32,187 | |||||||||
Class R2 | 2 | 9 | 1,149 | |||||||||
Class R3 | 12 | — | 756 | |||||||||
Class R4 | 537 | — | 405 | |||||||||
Class R5 | 4,958 | 124 | 8,740 | |||||||||
Class R6 | 190,068 | 37,607 | 37,939 | |||||||||
Net Asset Value (a): | ||||||||||||
Class A — Redemption price per share | $ | 21.73 | $ | 51.57 | $ | 30.84 | ||||||
Class C — Offering price per share (b) | 19.16 | 49.66 | 24.37 | |||||||||
Class I — Offering and redemption price per share | 22.36 | 52.32 | 35.44 | |||||||||
Class R2 — Offering and redemption price per share | 21.68 | 51.08 | 33.49 | |||||||||
Class R3 — Offering and redemption price per share | 21.74 | — | 35.23 | |||||||||
Class R4 — Offering and redemption price per share | 22.36 | — | 35.40 | |||||||||
Class R5 — Offering and redemption price per share | 22.76 | 52.35 | 35.85 | |||||||||
Class R6 — Offering and redemption price per share | 22.87 | 52.39 | 36.00 | |||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | ||||||
Class A maximum public offering price per share | $ | 22.93 | $ | 54.43 | $ | 32.55 | ||||||
|
|
|
|
|
| |||||||
Cost of investments in non-affiliates | $ | 4,789,301 | $ | 1,777,264 | $ | 2,786,436 | ||||||
Cost of investments in affiliates | 218,911 | 80,883 | 114,331 |
(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.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 29 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan Mid Cap Value Fund | JPMorgan Value Advantage Fund | |||||||
ASSETS: | ||||||||
Investments in non-affiliates, at value | $ | 17,775,868 | $ | 11,187,162 | ||||
Investments in affiliates, at value | 511,256 | 253,654 | ||||||
Receivables: | ||||||||
Investment securities sold | — | 2,045 | ||||||
Fund shares sold | 28,991 | 7,984 | ||||||
Dividends from non-affiliates | 26,485 | 9,596 | ||||||
Dividends from affiliates | 666 | 417 | ||||||
|
|
|
| |||||
Total Assets | 18,343,266 | 11,460,858 | ||||||
|
|
|
| |||||
LIABILITIES: | ||||||||
Payables: | ||||||||
Due to custodian | 2 | — | ||||||
Fund shares redeemed | 45,670 | 68,214 | ||||||
Accrued liabilities: | ||||||||
Investment advisory fees | 9,565 | 5,545 | ||||||
Administration fees | 1,158 | 353 | ||||||
Distribution fees | 595 | 654 | ||||||
Service fees | 1,038 | 1,149 | ||||||
Custodian and accounting fees | 84 | 55 | ||||||
Trustees’ and Chief Compliance Officer’s fees | 23 | 3 | ||||||
Other | 1,280 | 648 | ||||||
|
|
|
| |||||
Total Liabilities | 59,415 | 76,621 | ||||||
|
|
|
| |||||
Net Assets | $ | 18,283,851 | $ | 11,384,237 | ||||
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
30 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Value Fund | JPMorgan Value Advantage Fund | |||||||
NET ASSETS: | ||||||||
Paid-in-Capital | $ | 11,036,559 | $ | 8,124,426 | ||||
Accumulated undistributed (distributions in excess of) net investment income | 79,148 | 67,136 | ||||||
Accumulated net realized gains (losses) | 618,540 | 296,628 | ||||||
Net unrealized appreciation (depreciation) | 6,549,604 | 2,896,047 | ||||||
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Total Net Assets | $ | 18,283,851 | $ | 11,384,237 | ||||
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Net Assets: | ||||||||
Class A | $ | 1,967,162 | $ | 1,346,080 | ||||
Class C | 214,331 | 591,602 | ||||||
Class I | 2,985,882 | 2,296,056 | ||||||
Class L | 11,795,588 | 3,255,993 | ||||||
Class R2 | 82,108 | 38 | ||||||
Class R3 | 62,576 | 1,132 | ||||||
Class R4 | 17,859 | 17,231 | ||||||
Class R5 | 84,457 | 6,114 | ||||||
Class R6 | 1,073,888 | 3,869,991 | ||||||
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Total | $ | 18,283,851 | $ | 11,384,237 | ||||
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Outstanding units of beneficial interest (shares) | ||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||
Class A | 50,128 | 38,050 | ||||||
Class C | 5,688 | 16,808 | ||||||
Class I | 75,204 | 64,498 | ||||||
Class L | 293,343 | 91,422 | ||||||
Class R2 | 2,181 | 1 | ||||||
Class R3 | 1,606 | 32 | ||||||
Class R4 | 452 | 486 | ||||||
Class R5 | 2,104 | 172 | ||||||
Class R6 | 26,721 | 108,694 | ||||||
Net Asset Value (a): | ||||||||
Class A — Redemption price per share | $ | 39.24 | $ | 35.38 | ||||
Class C — Offering price per share (b) | 37.68 | 35.20 | ||||||
Class I — Offering and redemption price per share | 39.70 | 35.60 | ||||||
Class L — Offering and redemption price per share | 40.21 | 35.62 | ||||||
Class R2 — Offering and redemption price per share | 37.64 | 35.22 | ||||||
Class R3 — Offering and redemption price per share | 38.97 | 35.11 | ||||||
Class R4 — Offering and redemption price per share | 39.56 | 35.47 | ||||||
Class R5 — Offering and redemption price per share | 40.15 | 35.57 | ||||||
Class R6 — Offering and redemption price per share | 40.19 | 35.60 | ||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | ||||
Class A maximum public offering price per share | $ | 41.41 | $ | 37.34 | ||||
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Cost of investments in non-affiliates | $ | 11,226,264 | $ | 8,291,115 | ||||
Cost of investments in affiliates | 511,256 | 253,654 |
(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.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 31 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | JPMorgan Mid Cap Growth Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income from non-affiliates | $ | — | (a) | $ | — | (a) | $ | — | (a) | |||
Interest income from affiliates | 5 | 1 | 1 | |||||||||
Dividend income from non-affiliates | 44,154 | 33,091 | 20,376 | |||||||||
Dividend income from affiliates | 3,073 | 1,049 | 1,500 | |||||||||
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Total investment income | 47,232 | 34,141 | 21,877 | |||||||||
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EXPENSES: | ||||||||||||
Investment advisory fees | 51,756 | 18,856 | 22,981 | |||||||||
Administration fees | 6,470 | 2,358 | 2,873 | |||||||||
Distribution fees: | ||||||||||||
Class A | 4,241 | 991 | 2,330 | |||||||||
Class C | 4,969 | 220 | 641 | |||||||||
Class R2 (b) | — | (a) | 2 | 191 | ||||||||
Class R3 | 1 | — | 17 | |||||||||
Service fees: | ||||||||||||
Class A | 4,241 | 991 | 2,330 | |||||||||
Class C | 1,656 | 73 | 214 | |||||||||
Class I | 3,722 | 1,067 | 2,727 | |||||||||
Class R2 (b) | — | (a) | 1 | 95 | ||||||||
Class R3 | 1 | — | 17 | |||||||||
Class R4 | 12 | — | 13 | |||||||||
Class R5 | 108 | 6 | 283 | |||||||||
Custodian and accounting fees | 219 | 76 | 108 | |||||||||
Interest expense to affiliates | — | — | (a) | — | ||||||||
Professional fees | 147 | 83 | 94 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | 35 | 35 | 37 | |||||||||
Printing and mailing costs | 383 | 152 | 194 | |||||||||
Registration and filing fees | 381 | 144 | 213 | |||||||||
Transfer agency fees (See Note 2.C.) | 261 | 54 | 564 | |||||||||
Other | 178 | 48 | 69 | |||||||||
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Total expenses | 78,781 | 25,157 | 35,991 | |||||||||
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Less fees waived | (6,794 | ) | (2,565 | ) | (1,980 | ) | ||||||
Less earnings credits | — | (a) | — | — | (a) | |||||||
Less expense reimbursements | (23 | ) | — | (41 | ) | |||||||
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Net expenses | 71,964 | 22,592 | 33,970 | |||||||||
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Net investment income (loss) | (24,732 | ) | 11,549 | (12,093 | ) | |||||||
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REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gain (loss) on transactions from investments in non-affiliates | 694,039 | 280,150 | 321,274 | |||||||||
Change in net unrealized appreciation/depreciation on investments in non-affiliates | 1,184,781 | 63,890 | 272,913 | |||||||||
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Net realized/unrealized gains (losses) | 1,878,820 | 344,040 | 594,187 | |||||||||
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Change in net assets resulting from operations | $ | 1,854,088 | $ | 355,589 | $ | 582,094 | ||||||
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(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
32 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Value Fund | JPMorgan Value Advantage Fund | |||||||
INVESTMENT INCOME: | ||||||||
Interest income from non-affiliates | $ | — | (a) | $ | — | (a) | ||
Interest income from affiliates | 7 | 9 | ||||||
Dividend income from non-affiliates | 319,092 | 250,315 | ||||||
Dividend income from affiliates | 6,352 | 4,089 | ||||||
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| |||||
Total investment income | 325,451 | 254,413 | ||||||
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EXPENSES: | ||||||||
Investment advisory fees | 120,919 | 75,968 | ||||||
Administration fees | 15,119 | 9,498 | ||||||
Distribution fees: | ||||||||
Class A | 5,237 | 3,633 | ||||||
Class C | 2,347 | 5,040 | ||||||
Class R2 (b) | 431 | — | (a) | |||||
Class R3 | 115 | 2 | ||||||
Service fees: | ||||||||
Class A | 5,237 | 3,633 | ||||||
Class C | 782 | 1,680 | ||||||
Class I | 7,518 | 6,001 | ||||||
Class L | 12,236 | 3,837 | ||||||
Class R2 (b) | 216 | — | (a) | |||||
Class R3 | 114 | 2 | ||||||
Class R4 | 30 | 18 | ||||||
Class R5 | 79 | 5 | ||||||
Custodian and accounting fees | 486 | 311 | ||||||
Professional fees | 235 | 198 | ||||||
Trustees’ and Chief Compliance Officer’s fees | 18 | 19 | ||||||
Printing and mailing costs | 1,568 | 581 | ||||||
Registration and filing fees | 583 | 456 | ||||||
Transfer agency fees (See Note 2.C.) | 1,032 | 271 | ||||||
Other | 423 | 179 | ||||||
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Total expenses | 174,725 | 111,332 | ||||||
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Less fees waived | (14,187 | ) | (10,541 | ) | ||||
Less earnings credits | — | — | (a) | |||||
Less expense reimbursements | (539 | ) | (35 | ) | ||||
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Net expenses | 159,999 | 100,756 | ||||||
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Net investment income (loss) | 165,452 | 153,657 | ||||||
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REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gain (loss) on transactions from investments in non-affiliates | 714,557 | 371,543 | ||||||
Change in net unrealized appreciation/depreciation on investments in non-affiliates | 323,839 | 415,090 | ||||||
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Net realized/unrealized gains (losses) | 1,038,396 | 786,633 | ||||||
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Change in net assets resulting from operations | $ | 1,203,848 | $ | 940,290 | ||||
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(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Value Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 33 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (24,732 | ) | $ | (20,857 | ) | $ | 11,549 | $ | 8,576 | ||||||
Net realized gain (loss) | 694,039 | 258,483 | 280,150 | 120,548 | ||||||||||||
Change in net unrealized appreciation/depreciation | 1,184,781 | 1,188,472 | 63,890 | 282,160 | ||||||||||||
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Change in net assets resulting from operations | 1,854,088 | 1,426,098 | 355,589 | 411,284 | ||||||||||||
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DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | — | — | — | (356 | ) | |||||||||||
From net realized gains | (69,162 | ) | — | (21,659 | ) | (10,459 | ) | |||||||||
Class C | ||||||||||||||||
From net realized gains | (29,276 | ) | — | (1,665 | ) | (964 | ) | |||||||||
Class I | ||||||||||||||||
From net investment income | — | — | (521 | ) | (2,165 | ) | ||||||||||
From net realized gains | (52,479 | ) | — | (19,740 | ) | (20,374 | ) | |||||||||
Class R2 (a) | ||||||||||||||||
From net investment income | — | — | — | — | (b) | |||||||||||
From net realized gains | (1 | ) | — | (22 | ) | (19 | ) | |||||||||
Class R3 (c) | ||||||||||||||||
From net realized gains | (11 | ) | — | — | — | |||||||||||
Class R4 (c) | ||||||||||||||||
From net realized gains | (1 | ) | — | — | — | |||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | — | (17 | ) | (11 | ) | ||||||||||
From net realized gains | (4,273 | ) | — | (300 | ) | (84 | ) | |||||||||
Class R6 | ||||||||||||||||
From net investment income | — | — | (7,565 | ) | (6,472 | ) | ||||||||||
From net realized gains | (165,239 | ) | — | (118,825 | ) | (46,392 | ) | |||||||||
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Total distributions to shareholders | (320,442 | ) | — | (170,314 | ) | (87,296 | ) | |||||||||
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CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 60,031 | (291,788 | ) | (260,045 | ) | 120,141 | ||||||||||
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NET ASSETS: | ||||||||||||||||
Change in net assets | 1,593,677 | 1,134,310 | (74,770 | ) | 444,129 | |||||||||||
Beginning of period | 7,097,910 | 5,963,600 | 2,808,478 | 2,364,349 | ||||||||||||
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End of period | $ | 8,691,587 | $ | 7,097,910 | $ | 2,733,708 | $ | 2,808,478 | ||||||||
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Accumulated undistributed (distributions in excess of) net investment income | $ | (10,288 | ) | $ | (9,977 | ) | $ | 5,278 | $ | 2,627 | ||||||
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(a) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth Advantage Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective May 31, 2017 for JPMorgan Growth Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
34 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Growth Fund | JPMorgan Mid Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (12,093 | ) | $ | (9,289 | ) | $ | 165,452 | $ | 140,662 | ||||||
Net realized gain (loss) | 321,274 | 128,903 | 714,557 | 458,502 | ||||||||||||
Change in net unrealized appreciation/depreciation | 272,913 | 403,806 | 323,839 | 1,674,398 | ||||||||||||
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Change in net assets resulting from operations | 582,094 | 523,420 | 1,203,848 | 2,273,562 | ||||||||||||
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DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | — | — | (10,151 | ) | (9,018 | ) | ||||||||||
From net realized gains | (64,175 | ) | (449 | ) | (40,349 | ) | (135,546 | ) | ||||||||
Class C | ||||||||||||||||
From net realized gains | (6,964 | ) | (55 | ) | (4,819 | ) | (33,147 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | — | — | (21,474 | ) | (17,549 | ) | ||||||||||
From net realized gains | (64,653 | ) | (390 | ) | (54,995 | ) | (155,821 | ) | ||||||||
Class L | ||||||||||||||||
From net investment income | — | — | (115,010 | ) | (100,129 | ) | ||||||||||
From net realized gains | — | — | (224,024 | ) | (669,173 | ) | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | — | — | (285 | ) | (133 | ) | ||||||||||
From net realized gains | (2,500 | ) | (11 | ) | (1,680 | ) | (4,114 | ) | ||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | — | — | (401 | ) | — | (b) | ||||||||||
From net realized gains | (102 | ) | — | (b) | (954 | ) | (1 | ) | ||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | — | — | (124 | ) | — | (b) | ||||||||||
From net realized gains | (242 | ) | — | (b) | (261 | ) | (1 | ) | ||||||||
Class R5 (c) | ||||||||||||||||
From net investment income | — | — | (715 | ) | — | (b) | ||||||||||
From net realized gains | (16,962 | ) | (96 | ) | (1,450 | ) | (1 | ) | ||||||||
Class R6 (c) | ||||||||||||||||
From net investment income | — | — | (6,725 | ) | (437 | ) | ||||||||||
From net realized gains | (63,898 | ) | (275 | ) | (12,644 | ) | (2,480 | ) | ||||||||
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Total distributions to shareholders | (219,496 | ) | (1,276 | ) | (496,061 | ) | (1,127,550 | ) | ||||||||
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CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 466,368 | (285,349 | ) | (826,948 | ) | 1,692,858 | ||||||||||
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NET ASSETS: | ||||||||||||||||
Change in net assets | 828,966 | 236,795 | (119,161 | ) | 2,838,870 | |||||||||||
Beginning of period | 3,088,278 | 2,851,483 | 18,403,012 | 15,564,142 | ||||||||||||
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End of period | $ | 3,917,244 | $ | 3,088,278 | $ | 18,283,851 | $ | 18,403,012 | ||||||||
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Accumulated undistributed (distributions in excess of) net investment income | $ | (6,360 | ) | $ | (5,294 | ) | $ | 79,148 | $ | 72,501 | ||||||
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(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Growth and JPMorgan Mid Cap Value Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Value Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 35 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Value Advantage Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||
Net investment income (loss) | $ | 153,657 | $ | 120,170 | ||||
Net realized gain (loss) | 371,543 | 526,307 | ||||||
Change in net unrealized appreciation/depreciation | 415,090 | 1,078,370 | ||||||
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Change in net assets resulting from operations | 940,290 | 1,724,847 | ||||||
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DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Class A | ||||||||
From net investment income | (12,114 | ) | (17,004 | ) | ||||
From net realized gains | (14,662 | ) | — | |||||
Class C | ||||||||
From net investment income | (1,306 | ) | (4,071 | ) | ||||
From net realized gains | (6,508 | ) | — | |||||
Class I | ||||||||
From net investment income | (27,074 | ) | (17,338 | ) | ||||
From net realized gains | (23,851 | ) | — | |||||
Class L | ||||||||
From net investment income | (51,294 | ) | (51,645 | ) | ||||
From net realized gains | (38,934 | ) | — | |||||
Class R2 (a) | ||||||||
From net investment income | — | (b) | — | |||||
From net realized gains | — | (b) | — | |||||
Class R3 (c) | ||||||||
From net investment income | (9 | ) | — | (b) | ||||
From net realized gains | (8 | ) | — | |||||
Class R4 (c) | ||||||||
From net investment income | (24 | ) | — | (b) | ||||
From net realized gains | (19 | ) | — | |||||
Class R5 (c) | ||||||||
From net investment income | (65 | ) | — | (b) | ||||
From net realized gains | (50 | ) | — | |||||
Class R6 (c) | ||||||||
From net investment income | (44,453 | ) | (44,017 | ) | ||||
From net realized gains | (33,205 | ) | — | |||||
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Total distributions to shareholders | (253,576 | ) | (134,075 | ) | ||||
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CAPITAL TRANSACTIONS: | ||||||||
Change in net assets resulting from capital transactions | (360,503 | ) | (623,697 | ) | ||||
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NET ASSETS: | ||||||||
Change in net assets | 326,211 | 967,075 | ||||||
Beginning of period | 11,058,026 | 10,090,951 | ||||||
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End of period | $ | 11,384,237 | $ | 11,058,026 | ||||
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Accumulated undistributed (distributions in excess of) net investment income | $ | 67,136 | $ | 57,021 | ||||
|
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|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016. |
SEE NOTES TO FINANCIAL STATEMENTS.
36 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 385,379 | $ | 381,174 | $ | 69,668 | $ | 121,592 | ||||||||
Distributions reinvested | 67,889 | — | 21,589 | 10,791 | ||||||||||||
Cost of shares redeemed | (604,708 | ) | (822,569 | ) | (90,548 | ) | (133,304 | ) | ||||||||
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Change in net assets resulting from Class A capital transactions | $ | (151,440 | ) | $ | (441,395 | ) | $ | 709 | $ | (921 | ) | |||||
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Class C | ||||||||||||||||
Proceeds from shares issued | $ | 167,812 | $ | 114,033 | $ | 2,589 | $ | 7,205 | ||||||||
Distributions reinvested | 27,785 | — | 1,665 | 964 | ||||||||||||
Cost of shares redeemed | (179,201 | ) | (227,966 | ) | (8,820 | ) | (13,282 | ) | ||||||||
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| |||||||||
Change in net assets resulting from Class C capital transactions | $ | 16,396 | $ | (113,933 | ) | $ | (4,566 | ) | $ | (5,113 | ) | |||||
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Class I | ||||||||||||||||
Proceeds from shares issued | $ | 820,383 | $ | 917,922 | $ | 67,824 | $ | 289,476 | ||||||||
Distributions reinvested | 48,329 | — | 19,948 | 19,559 | ||||||||||||
Cost of shares redeemed | (1,088,919 | ) | (424,343 | ) | (567,749 | ) | (241,418 | ) | ||||||||
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|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (220,207 | ) | $ | 493,579 | $ | (479,977 | ) | $ | 67,617 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 40 | $ | — | $ | 75 | $ | 107 | ||||||||
Distributions reinvested | 1 | — | 19 | 13 | ||||||||||||
Cost of shares redeemed | (2 | ) | — | (284 | ) | (284 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | 39 | $ | — | $ | (190 | ) | $ | (164 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 379 | $ | 20 | $ | — | $ | — | ||||||||
Distributions reinvested | 11 | — | — | — | ||||||||||||
Cost of shares redeemed | (187 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 203 | $ | 20 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 12,768 | $ | 20 | $ | — | $ | — | ||||||||
Distributions reinvested | 1 | — | — | — | ||||||||||||
Cost of shares redeemed | (1,127 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 11,642 | $ | 20 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 22,793 | $ | 17,853 | $ | 4,460 | $ | 831 | ||||||||
Distributions reinvested | 4,273 | — | 317 | 95 | ||||||||||||
Cost of shares redeemed | (31,002 | ) | (23,614 | ) | (361 | ) | (2,320 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (3,936 | ) | $ | (5,761 | ) | $ | 4,416 | $ | (1,394 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 1,307,512 | $ | 161,959 | $ | 659,956 | $ | 173,778 | ||||||||
Distributions reinvested | 165,238 | — | 126,386 | 52,511 | ||||||||||||
Cost of shares redeemed | (1,065,416 | ) | (386,277 | ) | (566,779 | ) | (166,173 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 407,334 | $ | (224,318 | ) | $ | 219,563 | $ | 60,116 | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 60,031 | $ | (291,788 | ) | $ | (260,045 | ) | $ | 120,141 | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth Advantage Fund. |
(b) | Commencement of offering of class of shares effective May 31, 2017 for JPMorgan Growth Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 37 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Growth Advantage Fund | JPMorgan Mid Cap Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 19,063 | 23,931 | 1,371 | 2,680 | ||||||||||||
Reinvested | 3,464 | — | 435 | 244 | ||||||||||||
Redeemed | (29,518 | ) | (51,511 | ) | (1,784 | ) | (2,942 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (6,991 | ) | (27,580 | ) | 22 | (18 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 9,329 | 7,911 | 52 | 164 | ||||||||||||
Reinvested | 1,603 | — | 35 | 22 | ||||||||||||
Redeemed | (10,165 | ) | (16,036 | ) | (180 | ) | (302 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | 767 | (8,125 | ) | (93 | ) | (116 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 39,183 | 55,638 | 1,338 | 6,309 | ||||||||||||
Reinvested | 2,400 | — | 396 | 436 | ||||||||||||
Redeemed | (55,106 | ) | (26,275 | ) | (11,347 | ) | (5,239 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (13,523 | ) | 29,363 | (9,613 | ) | 1,506 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Issued | 2 | — | 3 | 2 | ||||||||||||
Reinvested | — | (b) | — | — | (b) | — | (b) | |||||||||
Redeemed | — | (b) | — | (6 | ) | (6 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | 2 | — | (3 | ) | (4 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (c) | ||||||||||||||||
Issued | 20 | 1 | — | — | ||||||||||||
Reinvested | — | (b) | — | — | — | |||||||||||
Redeemed | (9 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 11 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (c) | ||||||||||||||||
Issued | 587 | 1 | — | — | ||||||||||||
Reinvested | — | (b) | — | — | — | |||||||||||
Redeemed | (51 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 536 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 1,072 | 1,062 | 88 | 19 | ||||||||||||
Reinvested | 209 | — | 6 | 2 | ||||||||||||
Redeemed | (1,457 | ) | (1,434 | ) | (7 | ) | (49 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (176 | ) | (372 | ) | 87 | (28 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 63,769 | 9,786 | 13,118 | 3,807 | ||||||||||||
Reinvested | 8,033 | — | 2,502 | 1,169 | ||||||||||||
Redeemed | (49,818 | ) | (23,089 | ) | (10,935 | ) | (3,615 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 21,984 | (13,303 | ) | 4,685 | 1,361 | |||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth Advantage Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective May 31, 2017 for JPMorgan Growth Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
38 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Mid Cap Growth Fund | JPMorgan Mid Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 118,397 | $ | 98,041 | $ | 363,088 | $ | 419,157 | ||||||||
Distributions reinvested | 61,743 | 434 | 45,299 | 131,659 | ||||||||||||
Cost of shares redeemed | (251,332 | ) | (295,300 | ) | (671,647 | ) | (852,023 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (71,192 | ) | $ | (196,825 | ) | $ | (263,260 | ) | $ | (301,207 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 14,077 | $ | 16,838 | $ | 7,880 | $ | 23,292 | ||||||||
Distributions reinvested | 6,179 | 49 | 4,180 | 26,948 | ||||||||||||
Cost of shares redeemed | (35,034 | ) | (38,935 | ) | (263,384 | ) | (180,218 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (14,778 | ) | $ | (22,048 | ) | $ | (251,324 | ) | $ | (129,978 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 339,754 | $ | 310,137 | $ | 751,430 | $ | 963,041 | ||||||||
Distributions reinvested | 61,456 | 339 | 70,707 | 157,140 | ||||||||||||
Cost of shares redeemed | (427,645 | ) | (362,253 | ) | (851,133 | ) | (727,688 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (26,435 | ) | $ | (51,777 | ) | $ | (28,996 | ) | $ | 392,493 | |||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 1,968,939 | $ | 3,537,449 | ||||||||
Distributions reinvested | — | — | 306,493 | 668,445 | ||||||||||||
Cost of shares redeemed | — | — | (3,432,839 | ) | (2,817,548 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | — | $ | — | $ | (1,157,407 | ) | $ | 1,388,346 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 14,239 | $ | 17,018 | $ | 17,627 | $ | 37,304 | ||||||||
Distributions reinvested | 2,362 | 10 | 1,815 | 3,910 | ||||||||||||
Cost of shares redeemed | (17,165 | ) | (19,788 | ) | (25,651 | ) | (26,653 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (564 | ) | $ | (2,760 | ) | $ | (6,209 | ) | $ | 14,561 | |||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 27,693 | $ | 154 | $ | 51,385 | $ | 19,636 | ||||||||
Distributions reinvested | 102 | — | (b) | 1,347 | 1 | |||||||||||
Cost of shares redeemed | (1,822 | ) | (12 | ) | (10,294 | ) | (706 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 25,973 | $ | 142 | $ | 42,438 | $ | 18,931 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 14,393 | $ | 122 | $ | 18,175 | $ | 3,529 | ||||||||
Distributions reinvested | 242 | — | (b) | 385 | 1 | |||||||||||
Cost of shares redeemed | (897 | ) | (2 | ) | (4,544 | ) | (38 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 13,738 | $ | 120 | $ | 14,016 | $ | 3,492 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 79,191 | $ | 40,930 | $ | 70,982 | $ | 30,405 | ||||||||
Distributions reinvested | 15,915 | 91 | 2,165 | 1 | ||||||||||||
Cost of shares redeemed | (59,057 | ) | (60,912 | ) | (21,198 | ) | (421 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 36,049 | $ | (19,891 | ) | $ | 51,949 | $ | 29,985 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 649,363 | $ | 197,543 | $ | 924,565 | $ | 292,949 | ||||||||
Distributions reinvested | 63,657 | 274 | 18,935 | 2,917 | ||||||||||||
Cost of shares redeemed | (209,443 | ) | (190,127 | ) | (171,655 | ) | (19,631 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 503,577 | $ | 7,690 | $ | 771,845 | $ | 276,235 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 466,368 | $ | (285,349 | ) | $ | (826,948 | ) | $ | 1,692,858 | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Growth and JPMorgan Mid Cap Value Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Value Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 39 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Mid Cap Growth Fund | JPMorgan Mid Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 3,941 | 3,890 | 9,353 | 11,445 | ||||||||||||
Reinvested | 2,145 | 18 | 1,153 | 3,648 | ||||||||||||
Redeemed | (8,462 | ) | (11,718 | ) | (17,242 | ) | (23,250 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (2,376 | ) | (7,810 | ) | (6,736 | ) | (8,157 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 586 | 818 | 210 | 663 | ||||||||||||
Reinvested | 271 | 3 | 111 | 778 | ||||||||||||
Redeemed | (1,457 | ) | (1,896 | ) | (7,079 | ) | (5,080 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (600 | ) | (1,075 | ) | (6,758 | ) | (3,639 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 9,954 | 10,786 | 19,096 | 26,028 | ||||||||||||
Reinvested | 1,861 | 12 | 1,778 | 4,300 | ||||||||||||
Redeemed | (12,666 | ) | (12,803 | ) | (21,586 | ) | (19,566 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (851 | ) | (2,005 | ) | (712 | ) | 10,762 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | — | — | 49,400 | 94,419 | ||||||||||||
Reinvested | — | — | 7,611 | 18,060 | ||||||||||||
Redeemed | — | — | (86,072 | ) | (75,042 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | — | — | (29,061 | ) | 37,437 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 437 | 629 | 472 | 1,050 | ||||||||||||
Reinvested | 75 | — | (a) | 48 | 113 | |||||||||||
Redeemed | (526 | ) | (729 | ) | (686 | ) | (754 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (14 | ) | (100 | ) | (166 | ) | 409 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) |
| |||||||||||||||
Issued | 799 | 5 | 1,326 | 530 | ||||||||||||
Reinvested | 3 | — | (a) | 34 | — | (a) | ||||||||||
Redeemed | (51 | ) | — | (a) | (265 | ) | (19 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 751 | 5 | 1,095 | 511 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Issued | 419 | 4 | 464 | 94 | ||||||||||||
Reinvested | 7 | — | (a) | 10 | — | (a) | ||||||||||
Redeemed | (25 | ) | — | (a) | (115 | ) | (1 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 401 | 4 | 359 | 93 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 (c) | ||||||||||||||||
Issued | 2,258 | 1,404 | 1,800 | 795 | ||||||||||||
Reinvested | 477 | 3 | 54 | — | (a) | |||||||||||
Redeemed | (1,695 | ) | (2,103 | ) | (534 | ) | (11 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 1,040 | (696 | ) | 1,320 | 784 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Issued | 18,762 | 6,766 | 23,270 | 7,706 | ||||||||||||
Reinvested | 1,899 | 10 | 471 | 79 | ||||||||||||
Redeemed | (6,005 | ) | (6,595 | ) | (4,290 | ) | (515 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 14,656 | 181 | 19,451 | 7,270 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Growth and JPMorgan Mid Cap Value Fund. |
(c) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Mid Cap Value Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
40 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Value Advantage Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
CAPITAL TRANSACTIONS: | ||||||||
Class A | ||||||||
Proceeds from shares issued | $ | 302,187 | $ | 526,758 | ||||
Distributions reinvested | 25,163 | 16,190 | ||||||
Cost of shares redeemed | (497,550 | ) | (1,438,824 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class A capital transactions | $ | (170,200 | ) | $ | (895,876 | ) | ||
|
|
|
| |||||
Class C | ||||||||
Proceeds from shares issued | $ | 58,391 | $ | 124,351 | ||||
Distributions reinvested | 7,029 | 3,544 | ||||||
Cost of shares redeemed | (261,978 | ) | (223,429 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class C capital transactions | $ | (196,558 | ) | $ | (95,534 | ) | ||
|
|
|
| |||||
Class I | ||||||||
Proceeds from shares issued | $ | 844,644 | $ | 1,247,895 | ||||
Distributions reinvested | 44,769 | 12,528 | ||||||
Cost of shares redeemed | (897,538 | ) | (728,849 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class I capital transactions | $ | (8,125 | ) | $ | 531,574 | |||
|
|
|
| |||||
Class L | ||||||||
Proceeds from shares issued | $ | 1,135,519 | $ | 1,631,959 | ||||
Distributions reinvested | 85,647 | 45,687 | ||||||
Cost of shares redeemed | (1,811,163 | ) | (3,876,760 | ) | ||||
Redemptions in-kind (See Note 7) | — | (644,712 | ) | |||||
|
|
|
| |||||
Change in net assets resulting from Class L capital transactions | $ | (589,997 | ) | $ | (2,843,826 | ) | ||
|
|
|
| |||||
Class R2 (a) | ||||||||
Proceeds from shares issued | $ | 38 | $ | — | ||||
Distributions reinvested | — | (b) | — | |||||
Cost of shares redeemed | (1 | ) | — | |||||
|
|
|
| |||||
Change in net assets resulting from Class R2 capital transactions | $ | 37 | $ | — | ||||
|
|
|
| |||||
Class R3 (c) | ||||||||
Proceeds from shares issued | $ | 793 | $ | 393 | ||||
Distributions reinvested | 14 | — | (b) | |||||
Cost of shares redeemed | (103 | ) | (15 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R3 capital transactions | $ | 704 | $ | 378 | ||||
|
|
|
| |||||
Class R4 (c) | ||||||||
Proceeds from shares issued | $ | 19,694 | $ | 31 | ||||
Distributions reinvested | 43 | — | (b) | |||||
Cost of shares redeemed | (2,597 | ) | — | (b) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R4 capital transactions | $ | 17,140 | $ | 31 | ||||
|
|
|
| |||||
Class R5 (c) | ||||||||
Proceeds from shares issued | $ | 6,381 | $ | 415 | ||||
Distributions reinvested | 115 | — | (b) | |||||
Cost of shares redeemed | (1,014 | ) | — | (b) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R5 capital transactions | $ | 5,482 | $ | 415 | ||||
|
|
|
| |||||
Class R6 (c) | ||||||||
Proceeds from shares issued | $ | 1,235,372 | $ | 2,989,115 | ||||
Distributions reinvested | 77,658 | 44,017 | ||||||
Cost of shares redeemed | (732,016 | ) | (353,991 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R6 capital transactions | $ | 581,014 | $ | 2,679,141 | ||||
|
|
|
| |||||
Total change in net assets resulting from capital transactions | $ | (360,503 | ) | $ | (623,697 | ) | ||
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 41 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Value Advantage Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
SHARE TRANSACTIONS: | ||||||||
Class A | ||||||||
Issued | 8,673 | 16,726 | ||||||
Reinvested | 704 | 497 | ||||||
Redeemed | (14,215 | ) | (45,710 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | (4,838 | ) | (28,487 | ) | ||||
|
|
|
| |||||
Class C | ||||||||
Issued | 1,674 | 3,919 | ||||||
Reinvested | 198 | 109 | ||||||
Redeemed | (7,551 | ) | (7,093 | ) | ||||
|
|
|
| |||||
Change in Class C Shares | (5,679 | ) | (3,065 | ) | ||||
|
|
|
| |||||
Class I | ||||||||
Issued | 24,044 | 38,266 | ||||||
Reinvested | 1,245 | 383 | ||||||
Redeemed | (25,207 | ) | (23,245 | ) | ||||
|
|
|
| |||||
Change in Class I Shares | 82 | 15,404 | ||||||
|
|
|
| |||||
Class L | ||||||||
Issued | 32,262 | 51,361 | ||||||
Reinvested | 2,380 | 1,397 | ||||||
Redeemed | (51,546 | ) | (129,686 | ) | ||||
Redemptions in-kind (See Note 7) | — | (19,228 | ) | |||||
|
|
|
| |||||
Change in Class L Shares | (16,904 | ) | (96,156 | ) | ||||
|
|
|
| |||||
Class R2 (a) | ||||||||
Issued | 1 | — | ||||||
Reinvested | — | (b) | — | |||||
Redeemed | — | (b) | — | |||||
|
|
|
| |||||
Change in Class R2 Shares | 1 | — | ||||||
|
|
|
| |||||
Class R3 (c) | ||||||||
Issued | 22 | 12 | ||||||
Reinvested | 1 | — | (b) | |||||
Redeemed | (3 | ) | — | (b) | ||||
|
|
|
| |||||
Change in Class R3 Shares | 20 | 12 | ||||||
|
|
|
| |||||
Class R4 (c) | ||||||||
Issued | 558 | 1 | ||||||
Reinvested | 1 | — | (b) | |||||
Redeemed | (74 | ) | — | |||||
|
|
|
| |||||
Change in Class R4 Shares | 485 | 1 | ||||||
|
|
|
| |||||
Class R5 (c) | ||||||||
Issued | 186 | 12 | ||||||
Reinvested | 3 | — | (b) | |||||
Redeemed | (29 | ) | — | (b) | ||||
|
|
|
| |||||
Change in Class R5 Shares | 160 | 12 | ||||||
|
|
|
| |||||
Class R6 (c) | ||||||||
Issued | 35,495 | 100,995 | ||||||
Reinvested | 2,160 | 1,347 | ||||||
Redeemed | (20,295 | ) | (11,008 | ) | ||||
|
|
|
| |||||
Change in Class R6 Shares | 17,360 | 91,334 | ||||||
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective September 9, 2016. |
SEE NOTES TO FINANCIAL STATEMENTS.
42 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 43 |
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 realized gain | ||||||||||||||||
JPMorgan Growth Advantage Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended June 30, 2018 | $ | 17.95 | $ | (0.12 | ) | $ | 4.74 | $ | 4.62 | $ | (0.84 | ) | ||||||||
Year Ended June 30, 2017 | 14.42 | (0.09 | ) | 3.62 | 3.53 | — | ||||||||||||||
Year Ended June 30, 2016 | 15.74 | (0.08 | ) | (0.71 | ) | (0.79 | ) | (0.53 | ) | |||||||||||
Year Ended June 30, 2015 | 14.24 | (0.10 | ) | 2.17 | 2.07 | (0.57 | ) | |||||||||||||
Year Ended June 30, 2014 | 11.43 | (0.07 | ) | 3.52 | 3.45 | (0.64 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 15.99 | (0.19 | ) | 4.20 | 4.01 | (0.84 | ) | |||||||||||||
Year Ended June 30, 2017 | 12.91 | (0.15 | ) | 3.23 | 3.08 | — | ||||||||||||||
Year Ended June 30, 2016 | 14.22 | (0.14 | ) | (0.64 | ) | (0.78 | ) | (0.53 | ) | |||||||||||
Year Ended June 30, 2015 | 12.98 | (0.15 | ) | 1.96 | 1.81 | (0.57 | ) | |||||||||||||
Year Ended June 30, 2014 | 10.51 | (0.12 | ) | 3.23 | 3.11 | (0.64 | ) | |||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 18.40 | (0.07 | ) | 4.87 | 4.80 | (0.84 | ) | |||||||||||||
Year Ended June 30, 2017 | 14.75 | (0.05 | ) | 3.70 | 3.65 | — | ||||||||||||||
Year Ended June 30, 2016 | 16.06 | (0.06 | ) | (0.72 | ) | (0.78 | ) | (0.53 | ) | |||||||||||
Year Ended June 30, 2015 | 14.50 | (0.07 | ) | 2.20 | 2.13 | (0.57 | ) | |||||||||||||
Year Ended June 30, 2014 | 11.60 | (0.04 | ) | 3.58 | 3.54 | (0.64 | ) | |||||||||||||
Class R2 | ||||||||||||||||||||
July 31, 2017 (f) through June 30, 2018 | 18.47 | (0.14 | ) | 4.19 | 4.05 | (0.84 | ) | |||||||||||||
Class R3 | ||||||||||||||||||||
Year Ended June 30, 2018 | 17.96 | (0.11 | ) | 4.73 | 4.62 | (0.84 | ) | |||||||||||||
May 31, 2017 (f) through June 30, 2017 | 17.85 | (0.01 | ) | 0.12 | 0.11 | — | ||||||||||||||
Class R4 | ||||||||||||||||||||
Year Ended June 30, 2018 | 18.40 | (0.03 | ) | 4.83 | 4.80 | (0.84 | ) | |||||||||||||
May 31, 2017 (f) through June 30, 2017 | 18.29 | — | (g) | 0.11 | 0.11 | — | ||||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended June 30, 2018 | 18.69 | (0.04 | ) | 4.95 | 4.91 | (0.84 | ) | |||||||||||||
Year Ended June 30, 2017 | 14.96 | (0.03 | ) | 3.76 | 3.73 | — | ||||||||||||||
Year Ended June 30, 2016 | 16.25 | (0.03 | ) | (0.73 | ) | (0.76 | ) | (0.53 | ) | |||||||||||
Year Ended June 30, 2015 | 14.63 | (0.04 | ) | 2.23 | 2.19 | (0.57 | ) | |||||||||||||
Year Ended June 30, 2014 | 11.68 | (0.02 | ) | 3.61 | 3.59 | (0.64 | ) | |||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended June 30, 2018 | 18.76 | (0.02 | ) | 4.97 | 4.95 | (0.84 | ) | |||||||||||||
Year Ended June 30, 2017 | 15.00 | (0.01 | ) | 3.77 | 3.76 | — | ||||||||||||||
Year Ended June 30, 2016 | 16.27 | (0.01 | ) | (0.73 | ) | (0.74 | ) | (0.53 | ) | |||||||||||
Year Ended June 30, 2015 | 14.64 | (0.03 | ) | 2.23 | 2.20 | (0.57 | ) | |||||||||||||
December 23, 2013 (f) through June 30, 2014 | 13.86 | (0.01 | ) | 0.79 | 0.78 | — |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
(g) | Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
44 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 21.73 | 26.22 | % | $ | 1,724,681 | 1.16 | % | (0.57 | )% | 1.25 | % | 31 | % | |||||||||||||
17.95 | 24.48 | 1,550,092 | 1.24 | (0.56 | ) | 1.32 | 34 | |||||||||||||||||||
14.42 | (5.07 | ) | 1,643,136 | 1.25 | (0.55 | ) | 1.35 | 46 | ||||||||||||||||||
15.74 | 14.99 | 1,174,260 | 1.24 | (0.65 | ) | 1.35 | 46 | |||||||||||||||||||
14.24 | 30.69 | 717,564 | 1.24 | (0.51 | ) | 1.31 | 62 | |||||||||||||||||||
19.16 | 25.60 | 740,817 | 1.66 | (1.07 | ) | 1.76 | 31 | |||||||||||||||||||
15.99 | 23.86 | 605,999 | 1.74 | (1.06 | ) | 1.82 | 34 | |||||||||||||||||||
12.91 | (5.55 | ) | 594,190 | 1.75 | (1.04 | ) | 1.85 | 46 | ||||||||||||||||||
14.22 | 14.43 | 321,500 | 1.74 | (1.14 | ) | 1.84 | 46 | |||||||||||||||||||
12.98 | 30.12 | 144,229 | 1.74 | (1.01 | ) | 1.81 | 62 | |||||||||||||||||||
22.36 | 26.56 | 1,753,505 | 0.92 | (0.32 | ) | 1.00 | 31 | |||||||||||||||||||
18.40 | 24.75 | 1,691,899 | 1.00 | (0.31 | ) | 1.04 | 34 | |||||||||||||||||||
14.75 | (4.91 | ) | 922,981 | 1.08 | (0.41 | ) | 1.09 | 46 | ||||||||||||||||||
16.06 | 15.14 | 1,219,501 | 1.09 | (0.48 | ) | 1.09 | 46 | |||||||||||||||||||
14.50 | 31.03 | 975,175 | 1.05 | (0.30 | ) | 1.06 | 62 | |||||||||||||||||||
21.68 | 22.39 | 43 | 1.41 | (0.77 | ) | 1.59 | 31 | |||||||||||||||||||
21.74 | 26.20 | 266 | 1.15 | (0.53 | ) | 1.28 | 31 | |||||||||||||||||||
17.96 | 0.62 | 20 | 1.25 | (0.55 | ) | 1.25 | 34 | |||||||||||||||||||
22.36 | 26.56 | 12,005 | 0.88 | (0.16 | ) | 1.00 | 31 | |||||||||||||||||||
18.40 | 0.60 | 20 | 0.99 | (0.29 | ) | 1.00 | 34 | |||||||||||||||||||
22.76 | 26.74 | 112,830 | 0.77 | (0.18 | ) | 0.85 | 31 | |||||||||||||||||||
18.69 | 24.93 | 95,952 | 0.85 | (0.17 | ) | 0.88 | 34 | |||||||||||||||||||
14.96 | (4.72 | ) | 82,358 | 0.89 | (0.20 | ) | 0.90 | 46 | ||||||||||||||||||
16.25 | 15.42 | 58,686 | 0.86 | (0.25 | ) | 0.87 | 46 | |||||||||||||||||||
14.63 | 31.25 | 1,453,864 | 0.85 | (0.11 | ) | 0.86 | 62 | |||||||||||||||||||
22.87 | 26.86 | 4,347,440 | 0.67 | (0.07 | ) | 0.75 | 31 | |||||||||||||||||||
18.76 | 25.07 | 3,153,928 | 0.74 | (0.06 | ) | 0.75 | 34 | |||||||||||||||||||
15.00 | (4.59 | ) | 2,720,935 | 0.76 | (0.07 | ) | 0.76 | 46 | ||||||||||||||||||
16.27 | 15.48 | 2,414,333 | 0.76 | (0.17 | ) | 0.77 | 46 | |||||||||||||||||||
14.64 | 5.63 | 271,958 | 0.80 | (0.15 | ) | 0.82 | 62 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 45 |
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 | ||||||||||||||||||||||
JPMorgan Mid Cap Equity Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 48.53 | $ | — | (f) | $ | 5.89 | $ | 5.89 | $ | — | $ | (2.85 | ) | $ | (2.85 | ) | |||||||||||
Year Ended June 30, 2017 | 42.95 | (0.02 | ) | 7.02 | 7.00 | (0.05 | ) | (1.37 | ) | (1.42 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 47.12 | (0.01 | ) | (2.02 | ) | (2.03 | ) | (0.03 | ) | (2.11 | ) | (2.14 | ) | |||||||||||||||
Year Ended June 30, 2015 | 44.91 | (0.03 | ) | 4.32 | 4.29 | (0.02 | ) | (2.06 | ) | (2.08 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 38.10 | (0.04 | ) | 10.25 | 10.21 | (0.02 | ) | (3.38 | ) | (3.40 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 47.05 | (0.24 | ) | 5.70 | 5.46 | — | (2.85 | ) | (2.85 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 41.85 | (0.25 | ) | 6.82 | 6.57 | — | (1.37 | ) | (1.37 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 46.16 | (0.23 | ) | (1.97 | ) | (2.20 | ) | — | (2.11 | ) | (2.11 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 44.21 | (0.25 | ) | 4.23 | 3.98 | — | (2.03 | ) | (2.03 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 37.71 | (0.24 | ) | 10.12 | 9.88 | — | (3.38 | ) | (3.38 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.13 | 0.14 | 5.97 | 6.11 | (0.07 | ) | (2.85 | ) | (2.92 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 43.41 | 0.14 | 7.09 | 7.23 | (0.14 | ) | (1.37 | ) | (1.51 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 47.47 | 0.11 | (1.99 | ) | (1.88 | ) | (0.07 | ) | (2.11 | ) | (2.18 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 45.15 | 0.13 | 4.34 | 4.47 | (0.09 | ) | (2.06 | ) | (2.15 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 38.22 | 0.11 | 10.30 | 10.41 | (0.10 | ) | (3.38 | ) | (3.48 | ) | ||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 48.21 | (0.14 | ) | 5.86 | 5.72 | — | (2.85 | ) | (2.85 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 42.75 | (0.14 | ) | 6.98 | 6.84 | (0.01 | ) | (1.37 | ) | (1.38 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 46.98 | (0.13 | ) | (1.99 | ) | (2.12 | ) | — | (2.11 | ) | (2.11 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 44.87 | (0.14 | ) | 4.30 | 4.16 | — | (2.05 | ) | (2.05 | ) | ||||||||||||||||||
March 14, 2014 (g) through June 30, 2014 | 42.92 | (0.05 | ) | 2.01 | 1.96 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.17 | 0.24 | 5.94 | 6.18 | (0.15 | ) | (2.85 | ) | (3.00 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 43.43 | 0.18 | 7.11 | 7.29 | (0.18 | ) | (1.37 | ) | (1.55 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 47.49 | 0.18 | (2.03 | ) | (1.85 | ) | (0.10 | ) | (2.11 | ) | (2.21 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 45.15 | 0.20 | 4.33 | 4.53 | (0.13 | ) | (2.06 | ) | (2.19 | ) | ||||||||||||||||||
March 14, 2014 (g) through June 30, 2014 | 43.14 | 0.04 | 2.02 | 2.06 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.18 | 0.27 | 5.96 | 6.23 | (0.17 | ) | (2.85 | ) | (3.02 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 43.44 | 0.21 | 7.09 | 7.30 | (0.19 | ) | (1.37 | ) | (1.56 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 47.49 | 0.20 | (2.02 | ) | (1.82 | ) | (0.12 | ) | (2.11 | ) | (2.23 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 45.15 | 0.20 | 4.34 | 4.54 | (0.14 | ) | (2.06 | ) | (2.20 | ) | ||||||||||||||||||
March 14, 2014 (g) through June 30, 2014 | 43.14 | 0.04 | 2.02 | 2.06 | (0.05 | ) | — | (0.05 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Amount rounds to less than $0.005. |
(g) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
46 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 51.57 | 12.37 | % | $ | 402,897 | 1.17 | % | 0.01 | % | 1.25 | % | 31 | % | |||||||||||||
48.53 | 16.61 | 378,055 | 1.24 | (0.05 | ) | 1.37 | 38 | |||||||||||||||||||
42.95 | (4.17 | ) | 335,424 | 1.25 | (0.03 | ) | 1.43 | 39 | ||||||||||||||||||
47.12 | 9.99 | 232,320 | 1.24 | (0.06 | ) | 1.44 | 41 | |||||||||||||||||||
44.91 | 27.96 | 156,016 | 1.24 | (0.08 | ) | 1.41 | 47 | |||||||||||||||||||
49.66 | 11.83 | 27,666 | 1.67 | (0.50 | ) | 1.76 | 31 | |||||||||||||||||||
47.05 | 16.01 | 30,596 | 1.74 | (0.56 | ) | 1.92 | 38 | |||||||||||||||||||
41.85 | (4.64 | ) | 32,045 | 1.75 | (0.54 | ) | 1.96 | 39 | ||||||||||||||||||
46.16 | 9.44 | 25,597 | 1.74 | (0.56 | ) | 1.91 | 41 | |||||||||||||||||||
44.21 | 27.34 | 20,018 | 1.74 | (0.57 | ) | 1.93 | 47 | |||||||||||||||||||
52.32 | 12.68 | 326,026 | 0.89 | 0.26 | 1.00 | 31 | ||||||||||||||||||||
49.13 | 17.01 | 778,378 | 0.89 | 0.30 | 1.08 | 38 | ||||||||||||||||||||
43.41 | (3.81 | ) | 622,440 | 0.90 | 0.25 | 1.20 | 39 | |||||||||||||||||||
47.47 | 10.35 | 1,773,929 | 0.89 | 0.29 | 1.16 | 41 | ||||||||||||||||||||
45.15 | 28.45 | 1,773,321 | 0.89 | 0.27 | 1.18 | 47 | ||||||||||||||||||||
51.08 | 12.09 | 443 | 1.43 | (0.28 | ) | 1.57 | 31 | |||||||||||||||||||
48.21 | 16.30 | 600 | 1.49 | (0.31 | ) | 1.69 | 38 | |||||||||||||||||||
42.75 | (4.38 | ) | 688 | 1.50 | (0.30 | ) | 1.81 | 39 | ||||||||||||||||||
46.98 | 9.71 | 823 | 1.49 | (0.31 | ) | 1.69 | 41 | |||||||||||||||||||
44.87 | 4.56 | 688 | 1.47 | (0.41 | ) | 1.60 | 47 | |||||||||||||||||||
52.35 | 12.83 | 6,499 | 0.75 | 0.47 | 0.85 | 31 | ||||||||||||||||||||
49.17 | 17.14 | 1,804 | 0.79 | 0.40 | 0.87 | 38 | ||||||||||||||||||||
43.43 | (3.73 | ) | 2,840 | 0.80 | 0.42 | 0.91 | 39 | |||||||||||||||||||
47.49 | 10.49 | 1,636 | 0.79 | 0.43 | 0.88 | 41 | ||||||||||||||||||||
45.15 | 4.77 | 91 | 0.78 | 0.27 | 0.91 | 47 | ||||||||||||||||||||
52.39 | 12.93 | 1,970,177 | 0.67 | 0.51 | 0.75 | 31 | ||||||||||||||||||||
49.18 | 17.18 | 1,619,045 | 0.74 | 0.45 | 0.75 | 38 | ||||||||||||||||||||
43.44 | (3.66 | ) | 1,370,912 | 0.74 | 0.46 | 0.77 | 39 | |||||||||||||||||||
47.49 | 10.53 | 1,268,988 | 0.74 | 0.45 | 0.80 | 41 | ||||||||||||||||||||
45.15 | 4.78 | 823,036 | 0.73 | 0.34 | 0.86 | 47 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 47 |
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 realized gain | ||||||||||||||||
JPMorgan Mid Cap Growth Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended June 30, 2018 | $ | 27.99 | $ | (0.19 | ) | $ | 5.18 | $ | 4.99 | $ | (2.14 | ) | ||||||||
Year Ended June 30, 2017 | 23.43 | (0.14 | ) | 4.71 | 4.57 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 27.71 | (0.15 | ) | (2.67 | ) | (2.82 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 27.49 | (0.18 | ) | 3.19 | 3.01 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 22.99 | (0.13 | )(f) | 7.42 | 7.29 | (2.79 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 22.64 | (0.27 | ) | 4.14 | 3.87 | (2.14 | ) | |||||||||||||
Year Ended June 30, 2017 | 19.05 | (0.22 | ) | 3.82 | 3.60 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 22.93 | (0.22 | ) | (2.20 | ) | (2.42 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 23.35 | (0.26 | ) | 2.63 | 2.37 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 19.97 | (0.22 | )(f) | 6.39 | 6.17 | (2.79 | ) | |||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 31.79 | (0.10 | ) | 5.89 | 5.79 | (2.14 | ) | |||||||||||||
Year Ended June 30, 2017 | 26.52 | (0.07 | ) | 5.35 | 5.28 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 31.06 | (0.09 | ) | (2.99 | ) | (3.08 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 30.39 | (0.11 | ) | 3.57 | 3.46 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 25.08 | (0.06 | )(f) | 8.16 | 8.10 | (2.79 | ) | |||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended June 30, 2018 | 30.31 | (0.28 | ) | 5.60 | 5.32 | (2.14 | ) | |||||||||||||
Year Ended June 30, 2017 | 25.41 | (0.21 | ) | 5.12 | 4.91 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 29.96 | (0.18 | ) | (2.91 | ) | (3.09 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 29.54 | (0.24 | ) | 3.45 | 3.21 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 24.56 | (0.20 | )(f) | 7.97 | 7.77 | (2.79 | ) | |||||||||||||
Class R3 | ||||||||||||||||||||
Year Ended June 30, 2018 | 31.71 | (0.19 | ) | 5.85 | 5.66 | (2.14 | ) | |||||||||||||
September 9, 2016 (g) through June 30, 2017 | 27.06 | (0.13 | ) | 4.79 | 4.66 | (0.01 | ) | |||||||||||||
Class R4 | ||||||||||||||||||||
Year Ended June 30, 2018 | 31.77 | (0.12 | ) | 5.89 | 5.77 | (2.14 | ) | |||||||||||||
September 9, 2016 (g) through June 30, 2017 | 27.06 | (0.06 | ) | 4.78 | 4.72 | (0.01 | ) | |||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended June 30, 2018 | 32.09 | (0.06 | ) | 5.96 | 5.90 | (2.14 | ) | |||||||||||||
Year Ended June 30, 2017 | 26.74 | (0.03 | ) | 5.39 | 5.36 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 31.26 | (0.03 | ) | (3.03 | ) | (3.06 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 30.52 | (0.07 | ) | 3.60 | 3.53 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 25.15 | (0.02 | )(f) | 8.18 | 8.16 | (2.79 | ) | |||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended June 30, 2018 | 32.20 | (0.04 | ) | 5.98 | 5.94 | (2.14 | ) | |||||||||||||
Year Ended June 30, 2017 | 26.82 | (0.02 | ) | 5.41 | 5.39 | (0.01 | ) | |||||||||||||
Year Ended June 30, 2016 | 31.33 | (0.02 | ) | (3.03 | ) | (3.05 | ) | (1.46 | ) | |||||||||||
Year Ended June 30, 2015 | 30.57 | (0.06 | ) | 3.61 | 3.55 | (2.79 | ) | |||||||||||||
Year Ended June 30, 2014 | 25.17 | — | (f)(h) | 8.19 | 8.19 | (2.79 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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 $(0.14), $(0.23), $(0.06), $(0.20), $(0.02) and $(0.01) and for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively, and the net investment income (loss) ratio would have been (0.53)%, (1.03)%, (0.22)%, (0.73)%, (0.08)%, (0.03)% for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
(g) | Commencement of offering of class of shares. |
(h) | Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
48 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 30.84 | 18.39 | % | $ | 934,982 | 1.23 | % | (0.62 | )% | 1.30 | % | 56 | % | |||||||||||||
27.99 | 19.52 | 915,226 | 1.23 | (0.56 | ) | 1.36 | 41 | |||||||||||||||||||
23.43 | (10.29 | ) | 949,148 | 1.24 | (0.59 | ) | 1.40 | 56 | ||||||||||||||||||
27.71 | 12.37 | 984,262 | 1.23 | (0.68 | ) | 1.35 | 57 | |||||||||||||||||||
27.49 | 33.44 | 765,310 | 1.24 | (0.51 | )(f) | 1.37 | 69 | |||||||||||||||||||
24.37 | 17.76 | 82,939 | 1.73 | (1.12 | ) | 1.76 | 56 | |||||||||||||||||||
22.64 | 18.92 | 90,640 | 1.73 | (1.06 | ) | 1.85 | 41 | |||||||||||||||||||
19.05 | (10.70 | ) | 96,729 | 1.74 | (1.08 | ) | 1.90 | 56 | ||||||||||||||||||
22.93 | 11.78 | 75,494 | 1.73 | (1.19 | ) | 1.86 | 57 | |||||||||||||||||||
23.35 | 32.85 | 41,047 | 1.73 | (1.01 | )(f) | 1.86 | 69 | |||||||||||||||||||
35.44 | 18.72 | 1,140,704 | 0.92 | (0.30 | ) | 1.00 | 56 | |||||||||||||||||||
31.79 | 19.92 | 1,050,151 | 0.92 | (0.25 | ) | 1.08 | 41 | |||||||||||||||||||
26.52 | (10.01 | ) | 929,489 | 0.93 | (0.31 | ) | 1.13 | 56 | ||||||||||||||||||
31.06 | 12.68 | 1,562,284 | 0.92 | (0.37 | ) | 1.12 | 57 | |||||||||||||||||||
30.39 | 33.91 | 1,254,748 | 0.93 | (0.20 | )(f) | 1.12 | 69 | |||||||||||||||||||
33.49 | 18.06 | 38,486 | 1.48 | (0.87 | ) | 1.57 | 56 | |||||||||||||||||||
30.31 | 19.34 | 35,242 | 1.42 | (0.74 | ) | 1.69 | 41 | |||||||||||||||||||
25.41 | (10.42 | ) | 32,092 | 1.40 | (0.71 | ) | 1.71 | 56 | ||||||||||||||||||
29.96 | 12.18 | 9,868 | 1.39 | (0.85 | ) | 1.64 | 57 | |||||||||||||||||||
29.54 | 33.25 | 1,852 | 1.40 | (0.71 | )(f) | 1.59 | 69 | |||||||||||||||||||
35.23 | 18.34 | 26,638 | 1.23 | (0.54 | ) | 1.26 | 56 | |||||||||||||||||||
31.71 | 17.24 | 152 | 1.23 | (0.54 | ) | 1.42 | 41 | |||||||||||||||||||
35.40 | 18.66 | 14,320 | 0.98 | (0.33 | ) | 1.01 | 56 | |||||||||||||||||||
31.77 | 17.46 | 129 | 0.98 | (0.23 | ) | 1.10 | 41 | |||||||||||||||||||
35.85 | 18.89 | 313,336 | 0.78 | (0.16 | ) | 0.85 | 56 | |||||||||||||||||||
32.09 | 20.06 | 247,068 | 0.78 | (0.10 | ) | 0.89 | 41 | |||||||||||||||||||
26.74 | (9.87 | ) | 224,498 | 0.79 | (0.13 | ) | 0.91 | 56 | ||||||||||||||||||
31.26 | 12.87 | 164,713 | 0.78 | (0.25 | ) | 0.87 | 57 | |||||||||||||||||||
30.52 | 34.06 | 27,454 | 0.79 | (0.06 | )(f) | 0.92 | 69 | |||||||||||||||||||
36.00 | 18.95 | 1,365,839 | 0.73 | (0.11 | ) | 0.76 | 56 | |||||||||||||||||||
32.20 | 20.11 | 749,670 | 0.73 | (0.06 | ) | 0.76 | 41 | |||||||||||||||||||
26.82 | (9.82 | ) | 619,527 | 0.73 | (0.06 | ) | 0.77 | 56 | ||||||||||||||||||
31.33 | 12.92 | 265,905 | 0.73 | (0.19 | ) | 0.78 | 57 | |||||||||||||||||||
30.57 | 34.16 | 86,150 | 0.74 | (0.01 | )(f) | 0.86 | 69 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 49 |
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 | ||||||||||||||||||||||
JPMorgan Mid Cap Value Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 37.80 | $ | 0.20 | $ | 2.14 | $ | 2.34 | $ | (0.18 | ) | $ | (0.72 | ) | $ | (0.90 | ) | |||||||||||
Year Ended June 30, 2017 | 35.41 | 0.17 | 4.60 | 4.77 | (0.14 | ) | (2.24 | ) | (2.38 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 36.98 | 0.19 | 0.33 | 0.52 | (0.14 | ) | (1.95 | ) | (2.09 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 37.25 | 0.20 | 2.52 | 2.72 | (0.20 | ) | (2.79 | ) | (2.99 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 31.68 | 0.15 | (f) | 7.02 | 7.17 | (0.15 | ) | (1.45 | ) | (1.60 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 36.35 | (0.02 | ) | 2.07 | 2.05 | — | (0.72 | ) | (0.72 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 34.17 | (0.02 | ) | 4.44 | 4.42 | — | (2.24 | ) | (2.24 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.79 | 0.01 | 0.32 | 0.33 | — | (1.95 | ) | (1.95 | ) | |||||||||||||||||||
Year Ended June 30, 2015 | 36.19 | 0.01 | 2.44 | 2.45 | (0.06 | ) | (2.79 | ) | (2.85 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 30.84 | (0.03 | )(f) | 6.83 | 6.80 | — | (g) | (1.45 | ) | (1.45 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.24 | 0.30 | 2.16 | 2.46 | (0.28 | ) | (0.72 | ) | (1.00 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.79 | 0.27 | 4.66 | 4.93 | (0.24 | ) | (2.24 | ) | (2.48 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 37.36 | 0.28 | 0.33 | 0.61 | (0.23 | ) | (1.95 | ) | (2.18 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 37.61 | 0.28 | 2.55 | 2.83 | (0.29 | ) | (2.79 | ) | (3.08 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 31.95 | 0.23 | (f) | 7.10 | 7.33 | (0.22 | ) | (1.45 | ) | (1.67 | ) | |||||||||||||||||
Class L | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.70 | 0.40 | 2.20 | 2.60 | (0.37 | ) | (0.72 | ) | (1.09 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 36.19 | 0.36 | 4.71 | 5.07 | (0.32 | ) | (2.24 | ) | (2.56 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 37.76 | 0.37 | 0.33 | 0.70 | (0.32 | ) | (1.95 | ) | (2.27 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 37.99 | 0.40 | 2.56 | 2.96 | (0.40 | ) | (2.79 | ) | (3.19 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 32.26 | 0.32 | (f) | 7.17 | 7.49 | (0.31 | ) | (1.45 | ) | (1.76 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 36.33 | 0.10 | 2.05 | 2.15 | (0.12 | ) | (0.72 | ) | (0.84 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 34.14 | 0.07 | 4.43 | 4.50 | (0.07 | ) | (2.24 | ) | (2.31 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.73 | 0.10 | 0.32 | 0.42 | (0.06 | ) | (1.95 | ) | (2.01 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 36.14 | 0.10 | 2.43 | 2.53 | (0.15 | ) | (2.79 | ) | (2.94 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 30.81 | 0.06 | (f) | 6.82 | 6.88 | (0.10 | ) | (1.45 | ) | (1.55 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 37.67 | 0.21 | 2.11 | 2.32 | (0.30 | ) | (0.72 | ) | (1.02 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 35.78 | 0.26 | 4.15 | 4.41 | (0.28 | ) | (2.24 | ) | (2.52 | ) | ||||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.16 | 0.33 | 2.13 | 2.46 | (0.34 | ) | (0.72 | ) | (1.06 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 36.18 | 0.38 | 4.15 | 4.53 | (0.31 | ) | (2.24 | ) | (2.55 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.67 | 0.38 | 2.17 | 2.55 | (0.35 | ) | (0.72 | ) | (1.07 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 36.60 | 0.36 | 4.28 | 4.64 | (0.33 | ) | (2.24 | ) | (2.57 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.69 | 0.43 | 2.16 | 2.59 | (0.37 | ) | (0.72 | ) | (1.09 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 36.60 | 0.32 | 4.34 | 4.66 | (0.33 | ) | (2.24 | ) | (2.57 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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 $0.14, $(0.03), $0.23, $0.32 and $0.05 for Class A, Class C, Class I, Class L and Class R2 Shares, respectively and the net investment income (loss) ratio would have been 0.41%, (0.10)%, 0.66%, 0.90% and 0.16% for Class A, Class C, Class I, Class L and Class R2 Shares, respectively. |
(g) | Amount rounds to less than $0.005. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
50 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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, period | Net expenses (e) | Net investment income (loss) | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 39.24 | 6.20 | % | $ | 1,967,162 | 1.23 | % | 0.51 | % | 1.26 | % | 13 | % | |||||||||||||
37.80 | 13.83 | 2,149,689 | 1.23 | 0.45 | 1.36 | 23 | ||||||||||||||||||||
35.41 | 1.85 | 2,302,567 | 1.24 | 0.54 | 1.41 | 20 | ||||||||||||||||||||
36.98 | 7.68 | 2,623,772 | 1.23 | 0.53 | 1.38 | 18 | ||||||||||||||||||||
37.25 | 23.25 | 3,404,974 | 1.23 | 0.42 | (f) | 1.37 | 25 | |||||||||||||||||||
37.68 | 5.65 | 214,331 | 1.74 | (0.06 | ) | 1.75 | 13 | |||||||||||||||||||
36.35 | 13.27 | 452,351 | 1.74 | (0.06 | ) | 1.80 | 23 | |||||||||||||||||||
34.17 | 1.35 | 549,619 | 1.75 | 0.03 | 1.83 | 20 | ||||||||||||||||||||
35.79 | 7.12 | 595,385 | 1.74 | 0.03 | 1.84 | 18 | ||||||||||||||||||||
36.19 | 22.63 | 608,283 | 1.74 | (0.09 | )(f) | 1.87 | 25 | |||||||||||||||||||
39.70 | 6.44 | 2,985,882 | 0.98 | 0.77 | 1.00 | 13 | ||||||||||||||||||||
38.24 | 14.15 | 2,902,646 | 0.98 | 0.72 | 1.07 | 23 | ||||||||||||||||||||
35.79 | 2.11 | 2,332,160 | 0.99 | 0.80 | 1.11 | 20 | ||||||||||||||||||||
37.36 | 7.92 | 2,347,703 | 0.98 | 0.75 | 1.10 | 18 | ||||||||||||||||||||
37.61 | 23.59 | 2,967,759 | 0.98 | 0.67 | (f) | 1.12 | 25 | |||||||||||||||||||
40.21 | 6.73 | 11,795,588 | 0.74 | 1.00 | 0.86 | 13 | ||||||||||||||||||||
38.70 | 14.39 | 12,478,637 | 0.74 | 0.96 | 0.91 | 23 | ||||||||||||||||||||
36.19 | 2.35 | 10,313,629 | 0.75 | 1.04 | 0.94 | 20 | ||||||||||||||||||||
37.76 | 8.19 | 10,320,516 | 0.74 | 1.05 | 0.94 | 18 | ||||||||||||||||||||
37.99 | 23.88 | 8,581,992 | 0.74 | 0.92 | (f) | 0.97 | 25 | |||||||||||||||||||
37.64 | 5.93 | 82,108 | 1.49 | 0.26 | 1.51 | 13 | ||||||||||||||||||||
36.33 | 13.53 | 85,287 | 1.49 | 0.21 | 1.65 | 23 | ||||||||||||||||||||
34.14 | 1.61 | 66,167 | 1.50 | 0.29 | 1.75 | 20 | ||||||||||||||||||||
35.73 | 7.38 | 71,697 | 1.49 | 0.28 | 1.71 | 18 | ||||||||||||||||||||
36.14 | 22.94 | 71,958 | 1.49 | 0.17 | (f) | 1.62 | 25 | |||||||||||||||||||
38.97 | 6.17 | 62,576 | 1.24 | 0.55 | 1.25 | 13 | ||||||||||||||||||||
37.67 | 12.70 | 19,262 | 1.24 | 0.87 | 1.35 | 23 | ||||||||||||||||||||
39.56 | 6.45 | 17,859 | 0.99 | 0.83 | 1.00 | 13 | ||||||||||||||||||||
38.16 | 12.89 | 3,537 | 0.99 | 1.26 | 1.10 | 23 | ||||||||||||||||||||
40.15 | 6.61 | 84,457 | 0.84 | 0.96 | 0.85 | 13 | ||||||||||||||||||||
38.67 | 13.06 | 30,334 | 0.84 | 1.18 | 1.02 | 23 | ||||||||||||||||||||
40.19 | 6.71 | 1,073,888 | 0.74 | 1.08 | 0.75 | 13 | ||||||||||||||||||||
38.69 | 13.13 | 281,269 | 0.74 | 1.05 | 0.75 | 23 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 51 |
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 | ||||||||||||||||||||||
JPMorgan Value Advantage Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 33.40 | $ | 0.35 | (f) | $ | 2.26 | $ | 2.61 | $ | (0.28 | ) | $ | (0.35 | ) | $ | (0.63 | ) | ||||||||||
Year Ended June 30, 2017 | 28.66 | 0.27 | 4.77 | 5.04 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 29.84 | 0.27 | (0.99 | ) | (0.72 | ) | (0.17 | ) | (0.29 | ) | (0.46 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.15 | 0.19 | 1.47 | 1.66 | (0.26 | ) | (0.71 | ) | (0.97 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 24.64 | 0.34 | 5.03 | 5.37 | (0.16 | ) | (0.70 | ) | (0.86 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.20 | 0.18 | (f) | 2.24 | 2.42 | (0.07 | ) | (0.35 | ) | (0.42 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 28.52 | 0.11 | 4.74 | 4.85 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 29.72 | 0.14 | (0.99 | ) | (0.85 | ) | (0.06 | ) | (0.29 | ) | (0.35 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.08 | 0.04 | 1.47 | 1.51 | (0.16 | ) | (0.71 | ) | (0.87 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 24.61 | 0.20 | 5.02 | 5.22 | (0.05 | ) | (0.70 | ) | (0.75 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.62 | 0.44 | (f) | 2.28 | 2.72 | (0.39 | ) | (0.35 | ) | (0.74 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 28.86 | 0.35 | 4.80 | 5.15 | (0.39 | ) | — | (0.39 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 29.99 | 0.33 | (0.98 | ) | (0.65 | ) | (0.19 | ) | (0.29 | ) | (0.48 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.27 | 0.27 | 1.48 | 1.75 | (0.32 | ) | (0.71 | ) | (1.03 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 24.72 | 0.42 | 5.03 | 5.45 | (0.20 | ) | (0.70 | ) | (0.90 | ) | ||||||||||||||||||
Class L | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.63 | 0.50 | (f) | 2.29 | 2.79 | (0.45 | ) | (0.35 | ) | (0.80 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 28.86 | 0.41 | 4.82 | 5.23 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 30.06 | 0.43 | (1.02 | ) | (0.59 | ) | (0.32 | ) | (0.29 | ) | (0.61 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 29.31 | 0.34 | 1.50 | 1.84 | (0.38 | ) | (0.71 | ) | (1.09 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 24.74 | 0.48 | 5.04 | 5.52 | (0.25 | ) | (0.70 | ) | (0.95 | ) | ||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
July 31, 2017 (g) through June 30, 2018 | 34.04 | 0.25 | (f) | 1.64 | 1.89 | (0.36 | ) | (0.35 | ) | (0.71 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.24 | 0.35 | (f) | 2.26 | 2.61 | (0.39 | ) | (0.35 | ) | (0.74 | ) | |||||||||||||||||
September 9, 2016 (g) through June 30, 2017 | 29.33 | 0.29 | 4.06 | 4.35 | (0.44 | ) | — | (0.44 | ) | |||||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.55 | 0.51 | (f) | 2.20 | 2.71 | (0.44 | ) | (0.35 | ) | (0.79 | ) | |||||||||||||||||
September 9, 2016 (g) through June 30, 2017 | 29.56 | 0.27 | 4.18 | 4.45 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.59 | 0.50 | (f) | 2.28 | 2.78 | (0.45 | ) | (0.35 | ) | (0.80 | ) | |||||||||||||||||
September 9, 2016 (g) through June 30, 2017 | 29.57 | 0.30 | 4.20 | 4.50 | (0.48 | ) | — | (0.48 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 33.61 | 0.54 | (f) | 2.26 | 2.80 | (0.46 | ) | (0.35 | ) | (0.81 | ) | |||||||||||||||||
September 9, 2016 (g) through June 30, 2017 | 29.57 | 0.36 | 4.17 | 4.53 | (0.49 | ) | — | (0.49 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Net investment income (loss) may appear disproportionate among classes due to the timing of recognition of income and changes in the relative size of the classes. |
(g) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
52 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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| 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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 35.38 | 7.81 | % | $ | 1,346,080 | 1.17 | % | 1.01 | %(f) | 1.25 | % | 23 | % | |||||||||||||
33.40 | 17.60 | 1,432,370 | 1.24 | 0.85 | 1.36 | 24 | ||||||||||||||||||||
28.66 | (2.34 | ) | 2,045,698 | 1.24 | 0.98 | 1.43 | 26 | |||||||||||||||||||
29.84 | 5.78 | 2,440,061 | 1.24 | 0.64 | 1.41 | 17 | ||||||||||||||||||||
29.15 | 22.19 | 1,701,250 | 1.24 | 1.26 | 1.33 | 36 | ||||||||||||||||||||
35.20 | 7.27 | 591,602 | 1.67 | 0.51 | (f) | 1.75 | 23 | |||||||||||||||||||
33.20 | 17.02 | 746,521 | 1.74 | 0.34 | 1.81 | 24 | ||||||||||||||||||||
28.52 | (2.82 | ) | 728,800 | 1.74 | 0.49 | 1.85 | 26 | |||||||||||||||||||
29.72 | 5.26 | 701,023 | 1.73 | 0.14 | 1.83 | 17 | ||||||||||||||||||||
29.08 | 21.58 | 402,880 | 1.74 | 0.74 | 1.83 | 36 | ||||||||||||||||||||
35.60 | 8.07 | 2,296,056 | 0.92 | 1.26 | (f) | 1.00 | 23 | |||||||||||||||||||
33.62 | 17.89 | 2,165,577 | 0.99 | 1.09 | 1.04 | 24 | ||||||||||||||||||||
28.86 | (2.10 | ) | 1,414,635 | 0.99 | 1.16 | 1.05 | 26 | |||||||||||||||||||
29.99 | 6.05 | 3,095,251 | 0.99 | 0.89 | 1.05 | 17 | ||||||||||||||||||||
29.27 | 22.49 | 2,546,808 | 0.99 | 1.53 | 1.08 | 36 | ||||||||||||||||||||
35.62 | 8.29 | 3,255,993 | 0.74 | 1.42 | (f) | 0.85 | 23 | |||||||||||||||||||
33.63 | 18.17 | 3,643,327 | 0.75 | 1.32 | 0.87 | 24 | ||||||||||||||||||||
28.86 | (1.87 | ) | 5,901,818 | 0.74 | 1.50 | 0.88 | 26 | |||||||||||||||||||
30.06 | 6.36 | 5,058,172 | 0.74 | 1.15 | 0.90 | 17 | ||||||||||||||||||||
29.31 | 22.77 | 3,042,506 | 0.74 | 1.77 | 0.93 | 36 | ||||||||||||||||||||
35.22 | 5.54 | 38 | 1.41 | 0.78 | (f) | 1.61 | 23 | |||||||||||||||||||
35.11 | 7.82 | 1,132 | 1.15 | 1.01 | (f) | 1.28 | 23 | |||||||||||||||||||
33.24 | 14.87 | 385 | 1.24 | 1.09 | 1.36 | 24 | ||||||||||||||||||||
35.47 | 8.07 | 17,231 | 0.89 | 1.43 | (f) | 1.00 | 23 | |||||||||||||||||||
33.55 | 15.10 | 34 | 1.00 | 1.05 | 1.08 | 24 | ||||||||||||||||||||
35.57 | 8.25 | 6,114 | 0.76 | 1.41 | (f) | 0.88 | 23 | |||||||||||||||||||
33.59 | 15.27 | 422 | 0.83 | 1.14 | 0.89 | 24 | ||||||||||||||||||||
35.60 | 8.31 | 3,869,991 | 0.67 | 1.52 | (f) | 0.75 | 23 | |||||||||||||||||||
33.61 | 15.35 | 3,069,390 | 0.74 | 1.39 | 0.75 | 24 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 53 |
Table of Contents
AS OF JUNE 30, 2018
1. Organization
JPMorgan Trust I (“JPM I”) and JPMorgan Trust II (“JPM II”) 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.
J.P. Morgan Mutual Fund Investment Trust (“JPMMFIT”), an open-end management investment company, was organized as a Massachusetts business trust on September 23, 1997.
J.P. Morgan Fleming Mutual Fund Group, Inc. (“JPMFMFG”, and with JPM I, JPM II and JPMMFIT, collectively, the “Trusts”), an open-end management investment company, was organized as a Maryland corporation on August 19, 1997.
The following are 5 separate funds of the Trusts (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Trust | Diversified/Non-Diversified | ||||
JPMorgan Growth Advantage Fund | Class A, Class C, Class I, Class R2*, Class R3**, Class R4**, Class R5 and Class R6 | JPMMFIT | Diversified | |||
JPMorgan Mid Cap Equity Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Mid Cap Growth Fund | Class A, Class C, Class I, Class R2, Class R3***, Class R4***, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan Mid Cap Value Fund | Class A, Class C, Class I, Class L, Class R2, Class R3***, Class R4***, Class R5**** and Class R6**** | JPMFMFG | Diversified | |||
JPMorgan Value Advantage Fund | Class A, Class C, Class I, Class L, Class R2*, Class R3***, Class R4***, Class R5**** and Class R6**** | JPM I | Diversified | |||
* | Class R2 Shares commenced operations on July 31, 2017 for JPMorgan Growth Advantage Fund and JPMorgan Value Advantage Fund. |
** | Class R3 and Class R4 Shares commenced operations on May 31, 2017 for JPMorgan Growth Advantage Fund. |
*** | Class R3 and Class R4 Shares commenced operations on September 9, 2016 for JPMorgan Mid Cap Growth Fund, JPMorgan Mid Cap Value Fund and JPMorgan Value Advantage Fund. |
**** | Class R5 and Class R6 Shares commenced operations on September 9, 2016 for JPMorgan Mid Cap Value Fund and JPMorgan Value Advantage Fund. |
The investment objective of JPMorgan Growth Advantage Fund (“Growth Advantage Fund”) and JPMorgan Mid Cap Equity Fund (“Mid Cap Equity Fund”) is to seek to provide long-term capital growth.
The investment objective of JPMorgan Mid Cap Growth Fund (“Mid Cap Growth Fund”) is to seek growth of capital.
The investment objective of JPMorgan Mid Cap Value Fund (“Mid Cap Value Fund”) is to seek growth from capital appreciation.
The investment objective of JPMorgan Value Advantage Fund (“Value Advantage Fund”) is to seek to provide long-term total return from a combination of income and capital gains.
Effective as of the close of business on December 1, 2016, Class L Shares of the Value Advantage Fund are publicly offered only on a limited basis. Investors are not eligible to purchase Class L Shares of the Fund unless they meet certain requirements as described in the Fund’s prospectuses.
Effective as of the close of business on January 3, 2014, all share classes of the Mid Cap Equity Fund are publicly offered only on a limited basis. Investors are not eligible to purchase shares of the Fund unless they meet certain requirements as described in the Fund’s prospectuses.
Effective as of the close of business on February 22, 2013, all share classes of the Mid Cap Value Fund are publicly offered only on a limited basis. Investors are not eligible to purchase shares of the Fund unless they meet certain requirements as described in the Fund’s prospectuses.
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 I, Class L, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares. Certain Class A Shares, for which front-end sales charges have been waived, may be subject to a CDSC as described in the Funds’ prospectuses. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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
54 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
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 Boards of Trustees (the “Boards”), 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 Boards.
The Administrator has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Boards 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 Boards. 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 Boards.
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 Boards. 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. Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
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). |
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):
Growth Advantage Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Total Investments in Securities (a) | $ | 8,630,615 | $ | — | $ | — | $ | 8,630,615 | ||||||||
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Mid Cap Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Total Investments in Securities (a) | $ | 2,735,944 | $ | — | $ | — | $ | 2,735,944 | ||||||||
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JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 55 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Mid Cap Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Total Investments in Securities (a) | $ | 3,887,472 | $ | — | $ | — | $ | 3,887,472 | ||||||||
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Mid Cap Value Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Total Investments in Securities (a) | $ | 18,287,124 | $ | — | $ | — | $ | 18,287,124 | ||||||||
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Value Advantage Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Total Investments in Securities (b) | $ | 11,440,669 | $ | — | $ | 147 | $ | 11,440,816 | ||||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for industry specifics of portfolio holdings. |
(b) | All portfolio holdings designated as level 1 and level 3 are disclosed individually on the SOIs. Level 3 consists of rights. Please refer to the SOIs for industry specifics of portfolio holdings. |
There were no transfers among any levels for the year ended June 30, 2018.
B. 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, and dividend expense on securities sold short, are recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
C. 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 are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | Total | |||||||||||||||||||||||||||||||
Growth Advantage Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 112 | $ | 57 | $ | 55 | n/a | $ | — | (a) | $ | — | (a) | $ | — | (a) | $ | 5 | $ | 32 | $ | 261 | ||||||||||||||||||
Mid Cap Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 22 | 3 | 14 | n/a | — | (a) | n/a | n/a | — | (a) | 15 | 54 | ||||||||||||||||||||||||||||
Mid Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 435 | 9 | 39 | n/a | 26 | — | (a) | — | (a) | 7 | 48 | 564 | ||||||||||||||||||||||||||||
Mid Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 154 | 19 | 46 | $ | 790 | 10 | — | (a) | — | (a) | — | (a) | 13 | 1,032 | ||||||||||||||||||||||||||
Value Advantage Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 80 | 56 | 38 | 64 | — | (a) | — | (a) | 1 | 2 | 30 | 271 |
(a) | Amount rounds to less than one thousand. |
56 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
Table of Contents
D. 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 (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 June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
E. Distributions to Shareholders — Distributions from net investment income are generally declared and paid at least annually. Distributions are declared separately for each class of each Fund. 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.
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) | ||||||||||
Growth Advantage Fund | $ | (9,925 | ) | $ | 24,421 | $ | (14,496 | ) | ||||
Mid Cap Equity Fund | 2 | (795 | ) | 793 | ||||||||
Mid Cap Growth Fund | 3 | 11,027 | (11,030 | ) | ||||||||
Mid Cap Value Fund | — | (3,920 | ) | 3,920 | ||||||||
Value Advantage Fund | 192 | (7,203 | ) | 7,011 |
The reclassifications for the Funds relate primarily to investments in partnerships, non-taxable dividends and net operating losses.
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:
Growth Advantage Fund | 0.65 | % | ||
Mid Cap Equity Fund | 0.65 | |||
Mid Cap Growth Fund | 0.65 | |||
Mid Cap Value Fund | 0.65 | |||
Value Advantage Fund | 0.65 |
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
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 June 30, 2018, 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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trusts’ principal underwriter and promotes and arranges for the sale of each Fund’s shares.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The Boards have adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class C, Class R2 and Class R3 Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the 1940 Act. Class I, Class L, Class R4, Class R5 and Class R6 Shares do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class R2 | Class R3 | |||||||||||||
Growth Advantage Fund | 0.25 | % | 0.75 | % | 0.50 | % | 0.25 | % | ||||||||
Mid Cap Equity Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
Mid Cap Growth Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Mid Cap Value Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Value Advantage Fund | 0.25 | 0.75 | 0.50 | 0.25 |
In addition, JPMDS 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 June 30, 2018, JPMDS retained the following (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Growth Advantage Fund | $ | 401 | $ | 2 | ||||
Mid Cap Equity Fund | 111 | — | (a) | |||||
Mid Cap Growth Fund | 71 | — | (a) | |||||
Mid Cap Value Fund | 21 | 1 | ||||||
Value Advantage Fund | 187 | 1 |
(a) | Amount rounds to less than one thousand. |
D. Service Fees — The Trusts, on behalf of the Funds, have entered into a Shareholder Servicing Agreement with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | |||||||||||||||||||||||||
Growth Advantage Fund | 0.25 | % | 0.25 | % | 0.25 | % | n/a | 0.25 | % | 0.25 | % | 0.25 | % | 0.10 | % | |||||||||||||||||
Mid Cap Equity Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
Mid Cap Growth Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | 0.25 | 0.25 | 0.10 | ||||||||||||||||||||||||
Mid Cap Value Fund | 0.25 | 0.25 | 0.25 | 0.10 | % | 0.25 | 0.25 | 0.25 | 0.10 | |||||||||||||||||||||||
Value Advantage Fund | 0.25 | 0.25 | 0.25 | 0.10 | 0.25 | 0.25 | 0.25 | 0.10 |
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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 in Interest income from affiliates on the Statement of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately 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 JPMDS 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | ||||||||||||||||||||||||||||
Growth Advantage Fund | 1.14 | %^ | 1.64 | %^ | 0.89 | %^ | n/a | 1.39 | %^ | 1.14 | %^ | 0.89 | %^ | 0.74 | %^ | 0.64 | %^ | |||||||||||||||||||
Mid Cap Equity Fund | 1.14 | ^^ | 1.64 | ^^ | 0.89 | ^^ | n/a | 1.39 | ^^ | n/a | n/a | 0.74 | ^^ | 0.64 | ^^ | |||||||||||||||||||||
Mid Cap Growth Fund | 1.24 | 1.74 | 0.93 | n/a | 1.49 | 1.24 | 0.99 | 0.79 | 0.74 | |||||||||||||||||||||||||||
Mid Cap Value Fund | 1.24 | 1.75 | 0.99 | 0.75 | % | 1.50 | 1.25 | 1.00 | 0.85 | 0.75 | ||||||||||||||||||||||||||
Value Advantage Fund | 1.14 | ^^^ | 1.64 | ^^^ | 0.89 | ^^^ | 0.75 | 1.39 | ^^^ | 1.14 | ^^^ | 0.89 | ^^^ | 0.74 | ^^^ | 0.64 | ^^^ |
^ | The contractual expense percentages for Growth Advantage Fund in the table above are in place until at least October 31, 2019. Prior to November 1, 2017, the contractual expense limitations for Growth Advantage Fund were 1.24%, 1.74%, 0.99%, 1.50%, 1.25%, 1.00%, 0.85% and 0.75% for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares, respectively. |
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^^ | The contractual expense percentages for Mid Cap Equity Fund in the table above are in place until at least October 31, 2019. Prior to November 1, 2017, the contractual expense limitations for Mid Cap Equity Fund were 1.25%, 1.75%, 0.90%, 1.50%, 0.80% and 0.75% for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
^^^ | The contractual expense percentages for Value Advantage Fund in the table above are in place until at least October 31, 2019. Prior to November 1, 2017, the contractual expense limitations for Value Advantage Fund were 1.24%, 1.74%, 0.99%, 1.50%, 1.25%, 1.00%, 0.85% and 0.75% for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares, respectively. |
Except as noted above, the expense limitation agreements were in effect for the year ended June 30, 2018 and the contractual expense limitation percentages in the table above are in place until at least October 31, 2018.
For the year ended June 30, 2018, 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 Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Growth Advantage Fund | $ | 3,557 | $ | 2,373 | $ | 324 | $ | 6,254 | $ | 23 | ||||||||||
Mid Cap Equity Fund | 1,286 | 857 | 229 | 2,372 | — | |||||||||||||||
Mid Cap Growth Fund | 264 | 169 | 1,293 | 1,726 | 41 | |||||||||||||||
Mid Cap Value Fund | 86 | 58 | 12,861 | 13,005 | 539 | |||||||||||||||
Value Advantage Fund | 4,933 | 3,288 | 1,568 | 9,789 | 35 |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 Fund’s investment in such affiliated money market fund.
The amount of waivers resulting from investments in these money market funds for the year ended June 30, 2018 was as follows (amounts in thousands):
Growth Advantage Fund | $ | 540 | ||
Mid Cap Equity Fund | 193 | |||
Mid Cap Growth Fund | 254 | |||
Mid Cap Value Fund | 1,182 | |||
Value Advantage Fund | 752 |
G. Other — Certain officers of the Trusts are affiliated with the Adviser, the Administrator and JPMDS. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.
The Boards 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 June 30, 2018, the Funds purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate were affiliated with the Adviser.
The Funds may use related party broker-dealers. For the year ended June 30, 2018, the Funds incurred brokerage commissions with broker-dealers affiliated with the Adviser as follows (amounts in thousands):
Growth Advantage Fund | $ | 1 | ||
Mid Cap Equity Fund | — | (a) | ||
Mid Cap Growth Fund | 1 | |||
Mid Cap Value Fund | 2 | |||
Value Advantage Fund | 2 |
(a) | Amount rounds to less than one thousand. |
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 JUNE 30, 2018 (continued)
4. Investment Transactions
During the year ended June 30, 2018, purchases and sales of investments (excluding short-term investments and transfers in-kind) were as follows (amounts in thousands):
Purchases (excluding U.S. | Sales (excluding U.S. | |||||||
Growth Advantage Fund | $ | 2,400,519 | $ | 2,774,236 | ||||
Mid Cap Equity Fund | 859,465 | 1,260,936 | ||||||
Mid Cap Growth Fund | 2,090,895 | 1,887,561 | ||||||
Mid Cap Value Fund | 2,341,631 | 3,175,091 | ||||||
Value Advantage Fund | 2,545,962 | 2,832,086 |
During the year ended June 30, 2018, 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 investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Growth Advantage Fund | $ | 5,039,544 | $ | 3,654,216 | $ | 63,145 | $ | 3,591,071 | ||||||||
Mid Cap Equity Fund | 1,885,077 | 889,907 | 39,040 | 850,867 | ||||||||||||
Mid Cap Growth Fund | 2,929,533 | 996,741 | 38,802 | 957,939 | ||||||||||||
Mid Cap Value Fund | 11,783,601 | 6,862,407 | 358,884 | 6,503,523 | ||||||||||||
Value Advantage Fund | 8,586,699 | 3,101,808 | 247,691 | 2,854,117 |
For the Funds, the difference between book and tax basis appreciation/(depreciation) on investments is primarily attributed to wash sale loss deferrals.
The tax character of distributions paid during the year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term | Total Distributions Paid | ||||||||||
Growth Advantage Fund | $ | 10,634 | $ | 309,808 | $ | 320,442 | ||||||
Mid Cap Equity Fund | 46,277 | 124,037 | 170,314 | |||||||||
Mid Cap Growth Fund | — | 219,496 | 219,496 | |||||||||
Mid Cap Value Fund | 175,864 | 320,197 | 496,061 | |||||||||
Value Advantage Fund | 136,339 | 117,237 | 253,576 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distribution Paid | ||||||||||
Mid Cap Equity Fund | $ | 9,004 | $ | 78,292 | $ | 87,296 | ||||||
Mid Cap Growth Fund | — | 1,276 | 1,276 | |||||||||
Mid Cap Value Fund | 143,520 | 984,030 | 1,127,550 | |||||||||
Value Advantage Fund | 134,075 | — | 134,075 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
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As of June 30, 2018, 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 | Unrealized Appreciation (Depreciation) | ||||||||||
Growth Advantage Fund | $ | 34,608 | $ | 394,284 | $ | 3,591,071 | ||||||
Mid Cap Equity Fund | 31,100 | 184,155 | 850,867 | |||||||||
Mid Cap Growth Fund | 22,962 | 182,385 | 957,939 | |||||||||
Mid Cap Value Fund | 80,523 | 663,571 | 6,503,523 | |||||||||
Value Advantage Fund | 106,126 | 299,647 | 2,854,117 |
For the Funds, the cumulative timing differences primarily consist of late year ordinary loss deferrals and wash sale loss deferrals.
During the year ended June 30, 2018, the following Fund utilized net capital loss carryforwards as follows (amounts in thousands):
Mid Cap Value Fund | $ | 7,367 |
Late year ordinary losses incurred after December 31 as well as net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of the Funds’ next taxable year. For the year ended June 30, 2018, the following Funds deferred to July 1, 2018 late year ordinary losses and post-October capital losses of (amounts in thousands):
Late Year Ordinary Loss Deferral | ||||
Growth Advantage Fund | $ | 10,229 | ||
Mid Cap Growth Fund | 6,257 |
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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 5, 2018.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility at June 30, 2018. Average borrowings from the Facility during the year ended June 30, 2018, were as follows (amounts in thousands, except number of days outstanding):
Average Borrowings | Average Interest Rate Paid | Number of Days Outstanding | Interest Paid | |||||||||||||
Mid Cap Equity Fund | $ | 6,018 | 2.50 | % | 1 | $ | — | (a) |
(a) | Amount rounds to less than one thousand. |
The Trusts, along with certain other trusts (“Borrowers”), have 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 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.
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. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
7. Redemptions in-Kind
During the year ended June 30, 2017, certain Class L shareholders sold their shares of Value Advantage Fund. The portfolio securities were delivered primarily by means of a redemption in-kind in exchange for shares of the Fund. Cash and portfolio securities were transferred as of the close of business on the date and at the market value listed below (amounts in thousands):
March 17, 2017 | Value | Realized Gains (Losses) | Type | |||||||||
Class L | $ | 644,712 | * | $ | 273,526 | Redemption in-kind |
* | This amount includes cash of approximately $21,734,000 associated with the redemption in-kind. |
8. 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.
As of June 30, 2018, the Funds had omnibus accounts which owned more than 10% of the respective Fund’s outstanding shares as follows:
Number of Affiliated Omnibus Accounts | % of the Fund | Number of Non-affiliated Omnibus Accounts | % of the Fund | |||||||||||||
Growth Advantage Fund | 4 | 12.4 | % | 3 | 14.0 | % | ||||||||||
Mid Cap Equity Fund | — | — | 4 | 22.1 | ||||||||||||
Mid Cap Growth Fund | — | — | 7 | 15.7 | ||||||||||||
Mid Cap Value Fund | — | — | 7 | 20.5 | ||||||||||||
Value Advantage Fund | — | — | 4 | 11.1 |
As of June 30, 2018, the JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of the following Funds:
JPMorgan SmartRetirement Funds | ||||
Growth Advantage Fund | 29.5 | % | ||
Mid Cap Equity Fund | 47.7 | |||
Value Advantage Fund | 20.9 |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
9. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Boards of Trustees of J.P. Morgan Mutual Fund Investment Trust, J.P. Morgan Fleming Mutual Fund Group, Inc., JPMorgan Trust I and JPMorgan Trust II and Shareholders of JPMorgan Growth Advantage Fund, JPMorgan Mid Cap Equity Fund, JPMorgan Mid Cap Growth Fund, JPMorgan Mid Cap Value Fund and JPMorgan Value Advantage Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Mid Cap Equity Fund and JPMorgan Value Advantage Fund (two of the funds constituting JPMorgan Trust I), JPMorgan Mid Cap Growth Fund (one of the funds constituting JPMorgan Trust II), JPMorgan Growth Advantage Fund (constituting J.P. Morgan Mutual Fund Investment Trust) and JPMorgan Mid Cap Value Fund (constituting J.P. Morgan Fleming Mutual Fund Group, Inc.) (hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the 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), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trusts since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trusts since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | 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). | 135 | None | |||
Raymond Kanner** (1953); Trustee of Trusts since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present). |
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Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | 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). | 135 | 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). | 135 | 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) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
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). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
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). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
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). | 135 | 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 eleven registered investment companies (135 funds). |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 65 |
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(Unaudited)
* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), Secretary (2018) | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 67 |
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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 (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, January 1, 2018, and continued to hold your shares at the end of the reporting period, June 30, 2018.
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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Growth Advantage Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,104.70 | $ | 5.90 | 1.13 | % | ||||||||
Hypothetical | 1,000.00 | 1,019.19 | 5.66 | 1.13 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,101.80 | 8.49 | 1.63 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.71 | 8.15 | 1.63 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,105.80 | 4.59 | 0.88 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.43 | 4.41 | 0.88 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,103.30 | 7.20 | 1.38 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.95 | 6.90 | 1.38 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,104.70 | 5.90 | 1.13 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.19 | 5.66 | 1.13 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,106.40 | 4.60 | 0.88 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.43 | 4.41 | 0.88 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,107.00 | 3.81 | 0.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,107.50 | 3.29 | 0.63 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.67 | 3.16 | 0.63 |
68 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Mid Cap Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,028.10 | $ | 5.68 | 1.13 | % | ||||||||
Hypothetical | 1,000.00 | 1,019.19 | 5.66 | 1.13 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,025.40 | 8.19 | 1.63 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.71 | 8.15 | 1.63 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,029.30 | 4.43 | 0.88 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.43 | 4.41 | 0.88 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,026.70 | 6.93 | 1.38 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.95 | 6.90 | 1.38 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,030.10 | 3.67 | 0.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,030.70 | 3.17 | 0.63 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.67 | 3.16 | 0.63 | ||||||||||||
JPMorgan Mid Cap Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,058.70 | 6.28 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,055.90 | 8.82 | 1.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.22 | 8.65 | 1.73 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,060.10 | 4.70 | 0.92 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.23 | 4.61 | 0.92 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,057.10 | 7.55 | 1.48 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,058.60 | 6.28 | 1.23 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.70 | 6.16 | 1.23 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,059.90 | 5.01 | 0.98 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.93 | 4.91 | 0.98 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,061.00 | 3.99 | 0.78 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.93 | 3.91 | 0.78 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,061.30 | 3.73 | 0.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||
JPMorgan Mid Cap Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 995.70 | 6.14 | 1.24 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 993.40 | 8.65 | 1.75 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.12 | 8.75 | 1.75 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 997.00 | 4.90 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 |
JUNE 30, 2018 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | 69 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During | Annualized Expense Ratio | |||||||||||||
JPMorgan Mid Cap Value Fund (continued) | ||||||||||||||||
Class L | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 998.30 | $ | 3.72 | 0.75 | % | ||||||||
Hypothetical | 1,000.00 | 1,021.08 | 3.76 | 0.75 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 994.50 | 7.42 | 1.50 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.36 | 7.50 | 1.50 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 995.70 | 6.14 | 1.24 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 997.00 | 4.90 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 997.80 | 4.16 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 998.30 | 3.72 | 0.75 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.08 | 3.76 | 0.75 | ||||||||||||
JPMorgan Value Advantage Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 987.20 | 5.62 | 1.14 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.14 | 5.71 | 1.14 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 984.90 | 8.07 | 1.64 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.66 | 8.20 | 1.64 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 988.30 | 4.34 | 0.88 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.43 | 4.41 | 0.88 | ||||||||||||
Class L | ||||||||||||||||
Actual | 1,000.00 | 989.20 | 3.65 | 0.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 986.00 | 6.80 | 1.38 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.95 | 6.90 | 1.38 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 987.30 | 5.57 | 1.13 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.19 | 5.66 | 1.13 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 988.60 | 4.39 | 0.89 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.38 | 4.46 | 0.89 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 989.20 | 3.60 | 0.73 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.17 | 3.66 | 0.73 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 989.40 | 3.11 | 0.63 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.67 | 3.16 | 0.63 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
70 | J.P. MORGAN MID CAP/MULTI-CAP FUNDS | JUNE 30, 2018 |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deduction | ||||
JPMorgan Growth Advantage Fund | 88.90 | % | ||
JPMorgan Mid Cap Equity Fund | 61.95 | |||
JPMorgan Mid Cap Value Fund | 100.00 | |||
JPMorgan Value Advantage Fund | 100.00 |
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 June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Growth Advantage Fund | $ | 309,808 | ||
JPMorgan Mid Cap Equity Fund | 124,037 | |||
JPMorgan Mid Cap Growth Fund | 219,496 | |||
JPMorgan Mid Cap Value Fund | 320,197 | |||
JPMorgan Value Advantage Fund | 117,237 |
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 June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Growth Advantage Fund | $ | 10,634 | ||
JPMorgan Mid Cap Equity Fund | 33,173 | |||
JPMorgan Mid Cap Value Fund | 175,864 | |||
JPMorgan Value Advantage Fund | 136,339 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-MC-618 |
Table of Contents
Annual Report
J.P. Morgan Large Cap Funds
June 30, 2018
JPMorgan Equity Focus Fund
JPMorgan Equity Income Fund
JPMorgan Growth and Income Fund
JPMorgan Hedged Equity Fund
JPMorgan Large Cap Growth Fund
JPMorgan Large Cap Value Fund
JPMorgan U.S. Equity Fund
JPMorgan U.S. Research Enhanced Equity Fund
(formerly known as JPMorgan Disciplined Equity Fund)
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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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
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“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 1 |
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J.P. Morgan Large Cap Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities.
Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from July 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, growth stocks generally outperformed value stocks and small cap stocks slightly outperformed large cap and mid cap stocks. For the twelve months ended June 30, 2018, the S&P 500 returned 14.37%.
2 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 15.31% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 253,370 |
INVESTMENT OBJECTIVE**
The JPMorgan Equity Focus Fund (the “Fund”) seeks long term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the financial services sector and its security selection and underweight position in the health care sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the consumer discretionary and materials & processing sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Kohl’s Corp., T. Rowe Price Group Inc. and Mastercard Inc. Shares of Kohl’s, an apparel retailer, rose amid better-than-expected sales and earnings. Shares of T. Rowe Price Group, a financial services provider, rose amid consecutive quarters of better-than-expected earnings during the reporting period. Shares of Mastercard, a credit card and payments transfer service, rose amid increased revenue from growth in consumer spending.
Leading individual detractors from relative performance included the Fund’s overweight positions in Dish Network Corp., American International Group Inc. and Walgreens Boots Alliance Inc. Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of American International Group, a property and casualty insurer, fell after the company reported lower-than-expected earnings in the first quarter of 2018 due to the impact of winter storms across the U.S. and mudslides in California. Shares of Walgreens Boots Alliance, a retail and wholesale pharmacy chain, fell amid investor concerns that its wholesale pharmacy business would lose market share to Amazon.com Inc.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to stock selection. As a result of this approach
to stock selection, the Fund’s largest overweight positions were in the financial services and technology sectors and the Fund’s smallest positions were in the utilities and consumer staples sectors.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Amazon.com, Inc. | 5.1 | % | |||||
2. | Alphabet, Inc., Class C | 4.9 | ||||||
3. | Apple, Inc. | 4.4 | ||||||
4. | Mastercard, Inc., Class A | 4.0 | ||||||
5. | UnitedHealth Group, Inc. | 3.9 | ||||||
6. | AutoZone, Inc. | 3.6 | ||||||
7. | Kinder Morgan, Inc. | 3.4 | ||||||
8. | American International Group, Inc. | 3.2 | ||||||
9. | Ball Corp. | 3.1 | ||||||
10. | Federal Realty Investment Trust | 3.1 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 24.6 | % | ||
Financials | 19.2 | |||
Consumer Discretionary | 13.0 | |||
Health Care | 9.6 | |||
Industrials | 7.0 | |||
Energy | 6.6 | |||
Real Estate | 5.4 | |||
Materials | 4.6 | |||
Consumer Staples | 3.6 | |||
Utilities | 2.4 | |||
Short-Term Investments | 4.0 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 3 |
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JPMorgan Equity Focus Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 3 YEAR | 5 YEAR | SINCE INCEPTION | ||||||||||||||||
CLASS A SHARES | July 29, 2011 | |||||||||||||||||||
With Sales Charge* | 8.99 | % | 10.00 | % | 12.09 | % | 12.53 | % | ||||||||||||
Without Sales Charge | 15.02 | 11.99 | 13.30 | 13.41 | ||||||||||||||||
CLASS C SHARES | July 29, 2011 | |||||||||||||||||||
With CDSC** | 13.49 | 11.43 | 12.74 | 12.85 | ||||||||||||||||
Without CDSC | 14.49 | 11.43 | 12.74 | 12.85 | ||||||||||||||||
CLASS I SHARES | July 29, 2011 | 15.31 | 12.27 | 13.59 | 13.69 |
* | 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 (7/29/11 TO 6/30/18)
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 July 29, 2011.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Equity Focus Fund, the S&P 500 Index, the Lipper Large-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index from July 29, 2011 to June 30, 2018. 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 S&P 500 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 securities included in the benchmark, if applicable. The performance of the Lipper Large-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The S&P 500 Index is an unmanaged index
generally representative of the performance of large companies in the U.S. stock market. The Lipper Large-Cap Core Funds Index and the Lipper Multi-Cap Growth Funds Index are indexes based on the total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I Shares have a $1,000,000 minimum initial investment.
Subsequent to the inception date of the Fund and through July 31, 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.
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.
4 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 10.22% | |||
Russell 1000 Value Index | 6.77% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 17,254,495 |
INVESTMENT OBJECTIVE**
The JPMorgan Equity Income Fund (the “Fund”) seeks capital appreciation and current income.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell 1000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and overweight position in the information technology sector and its security selection in the industrials sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the materials and consumer discretionary sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s underweight position in General Electric Co. and its overweight positions in Microsoft Corp. and CME Group Inc. Shares of General Electric, an industrial conglomerate not held in the Fund, fell amid the company’s restructuring efforts and in June 2018 the stock was removed from the Dow Jones Industrial Average after 111 consecutive years in the index. Shares of Microsoft, a computer software and hardware provider, rose on continued growth in earnings and revenue. Shares of CME Group, an operator of security and commodities exchanges, rose amid trading volume growth and investor demand for Bitcoin.
Leading individual detractors from relative performance included the Fund’s underweight positions in Intel Corp. and Cisco Systems Inc. and its overweight position in Comcast Corp. Shares of Intel, a semiconductor manufacturer not held in the Fund, rose amid gains in the broader semiconductor sector. Shares of Cisco Systems, a provider of computer networking products and services not held in the Fund, rose as its move to a subscription-based business led to better-than-expected earnings and revenue for the first quarter of 2018. Shares of Comcast, a cable TV service, fell during a bidding war with rival Walt Disney Co. for the entertainment assets of 21st Century Fox Inc.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers’ focus remained on stock selection, as they believed that quality companies trading at
attractive valuations have the greatest potential to outperform in the long term. As the Fund aimed to purchase stocks with above average dividend yields, the research process was designed to identify companies with predictable and durable business models deemed capable of generating sustainable free cash flow.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Bank of America Corp. | 3.0 | % | |||||
2. | Chevron Corp. | 2.9 | ||||||
3. | Microsoft Corp. | 2.8 | ||||||
4. | Apple, Inc. | 2.4 | ||||||
5. | Occidental Petroleum Corp. | 2.4 | ||||||
6. | ConocoPhillips | 2.3 | ||||||
7. | Merck & Co., Inc. | 2.3 | ||||||
8. | CME Group, Inc. | 2.3 | ||||||
9. | BlackRock, Inc. | 2.2 | ||||||
10. | Home Depot, Inc. (The) | 2.2 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 25.7 | % | ||
Health Care | 12.7 | |||
Information Technology | 12.3 | |||
Industrials | 10.2 | |||
Energy | 9.5 | |||
Consumer Discretionary | 7.4 | |||
Consumer Staples | 6.7 | |||
Utilities | 3.9 | |||
Materials | 3.9 | |||
Real Estate | 2.8 | |||
Telecommunication Services | 1.4 | |||
Short-Term Investments | 3.5 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 5 |
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JPMorgan Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 18, 1992 | |||||||||||||
With Sales Charge* | 4.15 | % | 9.64 | % | 9.43 | % | ||||||||
Without Sales Charge | 9.94 | 10.83 | 10.01 | |||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | 8.35 | 10.26 | 9.45 | |||||||||||
Without CDSC | 9.35 | 10.26 | 9.45 | |||||||||||
CLASS I SHARES | July 2, 1987 | 10.22 | 11.10 | 10.31 | ||||||||||
CLASS R2 SHARES | February 28, 2011 | 9.66 | 10.53 | 9.79 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 9.90 | 10.82 | 10.01 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 10.18 | 11.10 | 10.31 | ||||||||||
CLASS R5 SHARES | February 28, 2011 | 10.38 | 11.30 | 10.47 | ||||||||||
CLASS R6 SHARES | January 31, 2012 | 10.49 | 11.39 | 10.51 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2, Class R4, and Class R5 Shares prior to their inception dates are based on the performance of Class I Shares. With respect to Class R2 Shares, prior class performance has been adjusted to reflect the differences in expenses between classes. The actual returns for Class R4 would have been similar to those shown because Class R4 Shares had similar expenses to Class I Shares. The actual returns for Class R5 Shares would have been different than those shown because Class R5 Shares have different expenses than Class I Shares.
Returns for Class R3 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns for Class R3 Shares would have been similar than those shown because Class R3 currently have the same expenses as Class A Shares.
Returns for Class R6 Shares prior to their inception date are based on the performance of Class R5 Shares and, prior to February 28, 2011, Class I 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 and Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Equity Income Fund, the Russell 1000 Value Index and the Lipper Equity Income Funds Index from June 30, 2008 to June 30, 2018.
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 Russell 1000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper 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 Russell 1000 Value Index is an unmanaged index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Lipper 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.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
6 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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JPMorgan Growth and Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class A Shares, without a sales charge)* | 12.04% | |||
Russell 1000 Value Index | 6.77% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 610,763 |
INVESTMENT OBJECTIVE**
The JPMorgan Growth and Income Fund (the “Fund”) seeks to provide capital growth over the long term and earn income from dividends.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, outperformed the Russell 1000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection and overweight position in the information technology sector and its security selection in the energy sector were leading contributors to performance relative to the Benchmark, while the Fund’s security selection in the materials sector was the sole sector detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Macy’s Inc., T. Rowe Price Group Inc. and Microsoft Corp. Shares of Macy’s, a department store chains operator, rose after the company reported better-than-expected earnings and sales for the first quarter for 2018. Shares of T. Rowe Price Group, a financial services provider, rose amid consecutive quarters of better-than-expected earnings during the reporting period. Shares of Microsoft, a computer software and hardware provider, rose on continued growth in earnings and revenue.
Leading individual detractors from relative performance included the Fund’s overweight positions in Dish Network Co. and Invesco Ltd., and its underweight position in Intel Corp. Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of Invesco, and investment management company, fell after the company reported weak monthly growth in assets under management and lower-than-expected revenue for the first quarter of 2018. Shares of Intel, a semiconductor manufacturer not held in the Fund, rose amid gains in the broader semiconductor sector.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers focused on stock selection and aimed to invest in undervalued companies with durable franchises, strong management and the ability to grow their intrinsic value per share. The portfolio managers employed a bottom-up
approach to security selection and fundamental research. During the reporting period, the Fund’s largest positions were in the financials and information technology sectors and its smallest positions were in the telecommunication services and materials sectors.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Bank of America Corp. | 3.1 | % | |||||
2. | Microsoft Corp. | 2.8 | ||||||
3. | Home Depot, Inc. (The) | 2.4 | ||||||
4. | Honeywell International, Inc. | 2.2 | ||||||
5. | Merck & Co., Inc. | 2.1 | ||||||
6. | Chevron Corp. | 2.0 | ||||||
7. | BlackRock, Inc. | 2.0 | ||||||
8. | Morgan Stanley | 2.0 | ||||||
9. | Berkshire Hathaway, Inc., Class B | 1.8 | ||||||
10. | Occidental Petroleum Corp. | 1.8 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 28.2 | % | ||
Health Care | 13.6 | |||
Information Technology | 11.2 | |||
Energy | 10.9 | |||
Consumer Discretionary | 9.1 | |||
Industrials | 8.4 | |||
Consumer Staples | 4.8 | |||
Real Estate | 4.2 | |||
Utilities | 2.5 | |||
Materials | 1.4 | |||
Telecommunication Services | 1.2 | |||
Short-Term Investments | 4.5 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 7 |
Table of Contents
JPMorgan Growth and Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 23, 1987 | |||||||||||||
With Sales Charge* | 6.15 | % | 10.20 | % | 8.59 | % | ||||||||
Without Sales Charge | 12.04 | 11.39 | 9.17 | |||||||||||
CLASS C SHARES | January 2, 1998 | |||||||||||||
With CDSC** | 10.48 | 10.83 | 8.63 | |||||||||||
Without CDSC | 11.48 | 10.83 | 8.63 | |||||||||||
CLASS I SHARES | January 25, 1996 | 12.31 | 11.66 | 9.48 | ||||||||||
CLASS R2 SHARES | November 2, 2015 | 11.76 | 11.24 | 9.10 | ||||||||||
CLASS R3 SHARES | July 31, 2017 | 12.08 | 11.40 | 9.18 | ||||||||||
CLASS R4 SHARES | July 31, 2017 | 12.33 | 11.66 | 9.48 | ||||||||||
CLASS R5 SHARES | November 2, 2015 | 12.52 | 11.77 | 9.53 | ||||||||||
CLASS R6 SHARES | November 2, 2015 | 12.59 | 11.81 | 9.55 |
* | 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 (6/30/08 TO 6/30/18)
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 their inception date are based on the performance of Class A Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares.
Returns for Class R3 Shares prior to their inception date are based on the performance of the Class A Shares. The actual returns of Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to Class A Shares.
Returns for Class R4 Shares prior to their inception date are based on the performance of the Class I Shares. The actual returns of Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses to Class I Shares.
Returns for Class R5 and Class R6 Shares prior to their inception date are based on the performance of Class I Shares. The actual returns of Class R5 and Class R6 Shares would have been different than those shown because Class R5 and Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Growth and Income Fund, the Russell 1000 Value Index, the Lipper Large-Cap Value Funds Index and the Lipper Large-Cap Core Funds
Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the Russell 1000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmarks, if applicable. The performance of the Lipper Large-Cap Value Funds Index and the Lipper 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 Russell 1000 Value Index is an unmanaged index, which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Large-Cap Value Funds Index and the Lipper Large-Cap Core Funds Index are indexes based on the total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment and carry a 5.25% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
8 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 7.52% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 2,428,392 |
INVESTMENT OBJECTIVE**
The JPMorgan Hedged Equity Fund (the “Fund”) seeks to provide capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s options hedge allowed the Fund to generally perform as designed, delivering returns with less volatility than the Benchmark during the reporting period. The Fund captured 44% of the Benchmark’s total return with about 45% of the Benchmark’s volatility during the twelve month reporting period.
The Fund’s security selection in the telecommunications and financials sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the technology and energy sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s underweight positions in Boeing Co., Netflix.com Inc. and Mastercard Inc. Shares of Boeing, a commercial aircraft manufacturer, rose amid growth in new orders and continued earnings growth. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue. Shares of Mastercard, a credit card and payments transfer service, rose amid increased revenue from growth in consumer spending.
Leading individual contributors to relative performance included the Fund’s overweight positions in Adobe Systems Inc., UnitedHealth Group Inc. and Union Pacific Corp. Shares of Adobe Systems, a software developer, rose after the company reported better-than-expected first quarter earnings and revenue. Shares of UnitedHealth Group, a health insurer, rose amid continued growth in earnings and revenue. Shares of Union Pacific, a railroad operator, rose after the company reported better-than-expected earnings and growth in revenue for the first quarter of 2018.
HOW WAS THE FUND POSITIONED?
The Fund used an enhanced index strategy that invests primarily in common stocks of large capitalization U.S. companies, while systematically purchasing and selling exchange-traded index put options and selling exchange-traded index call
options. The option overlay is known as a “Put/Spread Collar” strategy. The combination of the diversified portfolio of equity securities, downside protection from index put options and income from index call options provided the Fund with a portion of the returns associated with equity market investments, while exposing the Fund to less risk than traditional long-only equity strategies.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Microsoft Corp. | 4.0 | % | |||||
2. | Apple, Inc. | 3.7 | ||||||
3. | Amazon.com, Inc. | 3.0 | ||||||
4. | Facebook, Inc., Class A | 2.1 | ||||||
5. | Bank of America Corp. | 1.8 | ||||||
6. | UnitedHealth Group, Inc. | 1.8 | ||||||
7. | Alphabet, Inc., Class A | 1.7 | ||||||
8. | Alphabet, Inc., Class C | 1.6 | ||||||
9. | Visa, Inc., Class A | 1.5 | ||||||
10. | Berkshire Hathaway, Inc., Class B | 1.4 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 24.7 | % | ||
Consumer Discretionary | 14.3 | |||
Health Care | 13.1 | |||
Financials | 13.0 | |||
Industrials | 9.5 | |||
Energy | 6.0 | |||
Consumer Staples | 5.8 | |||
Utilities | 2.8 | |||
Materials | 2.6 | |||
Real Estate | 2.1 | |||
Put Options Purchased | 1.4 | |||
Telecommunication Services | 1.0 | |||
Short-Term Investment | 3.7 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 9 |
Table of Contents
JPMorgan Hedged Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 3 YEAR | SINCE INCEPTION | |||||||||||||
CLASS A SHARES | December 13, 2013 | |||||||||||||||
With Sales Charge* | 1.59 | % | 4.77 | % | 5.69 | % | ||||||||||
Without Sales Charge | 7.22 | 6.66 | 6.95 | |||||||||||||
CLASS C SHARES | December 13, 2013 | |||||||||||||||
With CDSC** | 5.73 | 6.15 | 6.42 | |||||||||||||
Without CDSC | 6.73 | 6.15 | 6.42 | |||||||||||||
CLASS I SHARES | December 13, 2013 | 7.52 | 6.96 | 7.23 | ||||||||||||
CLASS R5 SHARES | December 13, 2013 | 7.64 | 7.14 | 7.42 | ||||||||||||
CLASS R6 SHARES | December 13, 2013 | 7.75 | 7.19 | 7.47 |
* | 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 (12/13/13 TO 6/30/18)
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 13, 2013.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Hedged Equity Fund, the S&P 500 Index, the ICE BofAML 3-Month U.S. Treasury Bill Index (formerly BofA Merrill Lynch 3-Month U.S. Treasury Bill Index) and the Lipper Alternative Long/Short Equity Funds Average from December 13, 2013 to June 30, 2018. 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 S&P 500 Index and the ICE BofAML 3-Month U.S. Treasury Bill Index (formerly BofA Merrill Lynch 3-Month U.S. Treasury Bill Index) does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmarks, if applicable. The performance of the Lipper Alternative Long/Short Equity 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The ICE BofAML 3-Month U.S. Treasury Bill Index (formerly BofA
Merrill Lynch 3-Month U.S. Treasury Bill Index) is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the ICE BofAML 3-Month U.S. Treasury Bill Index (formerly BofA Merrill Lynch 3-Month U.S. Treasury Bill Index) is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond, 3 months from the rebalancing date. Investors cannot invest directly in an index. The Lipper Alternative Long/Short Equity 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.
Class I Shares have a $1,000,000 minimum initial investment.
Subsequent to the inception date of the Fund and through May 30, 2014, 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.
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.
10 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Large Cap Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 28.77% | |||
Russell 1000 Growth Index | 22.51% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 14,350,587 |
INVESTMENT OBJECTIVE**
The JPMorgan Large Cap Growth Fund (the “Fund”) seeks long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell 1000 Growth Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s overweight position and security selection in the financial services sector and its security selection in the health care sector were leading contributors to performance relative to the Benchmark. The Fund’s security selection in the producer durables and energy sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Netflix.com Inc., Mastercard Inc. and Nvidia Corp. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue. Shares of Mastercard, a credit card and payments transfer service, rose amid increased revenue from growth in consumer spending. Shares of Nvidia, a maker of semiconductors and software, rose amid better-than-expected earnings and continued strong demand for its products in the gaming and data center businesses.
Leading individual detractors from relative performance included the Fund’s overweight positions in Ulta Beauty Inc. and Delta Air Lines Inc. and its underweight position in Microsoft Corp. Shares of Ulta Beauty, a retailer of cosmetics and other personal care products, fell after the company reported lower-than-expected earnings and weakness in quarterly sales. Shares of Delta Air Lines, an airline operator, fell along with the broader airlines sector amid investor expectations of rising fuel prices. Shares of Microsoft, a computer software and hardware provider, rose on growth in earnings and revenue.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers utilized a bottom-up approach to stock selection, rigorously researching individual companies in an effort to construct portfolios of stocks that have strong
fundamentals and positive price momentum. The Fund’s portfolio managers sought to invest in companies with attractive fundamentals that, in their view, possessed the potential to significantly exceed expectations for a prolonged period of time.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Amazon.com, Inc. | 6.0 | % | |||||
2. | Mastercard, Inc., Class A | 5.3 | ||||||
3. | Alphabet, Inc., Class C | 4.8 | ||||||
4. | Intuitive Surgical, Inc. | 4.2 | ||||||
5. | Apple, Inc. | 4.1 | ||||||
6. | Netflix, Inc. | 3.5 | ||||||
7. | Home Depot, Inc. (The) | 3.2 | ||||||
8. | Adobe Systems, Inc. | 2.9 | ||||||
9. | Microsoft Corp. | 2.9 | ||||||
10. | Charles Schwab Corp. (The) | 2.6 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 46.9 | % | ||
Consumer Discretionary | 16.5 | |||
Health Care | 13.5 | |||
Industrials | 8.0 | |||
Financials | 7.6 | |||
Consumer Staples | 3.6 | |||
Materials | 1.5 | |||
Real Estate | 0.6 | |||
Short-Term Investments | 1.8 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 11 |
Table of Contents
JPMorgan Large Cap Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 22, 1994 | |||||||||||||
With Sales Charge* | 21.73 | % | 15.96 | % | 10.86 | % | ||||||||
Without Sales Charge | 28.48 | 17.22 | 11.46 | |||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | 26.83 | 16.63 | 10.89 | |||||||||||
Without CDSC | 27.83 | 16.63 | 10.89 | |||||||||||
CLASS I SHARES | February 28, 1992 | 28.77 | 17.42 | 11.68 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 28.11 | 16.91 | 11.18 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 28.43 | 17.17 | 11.47 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 28.74 | 17.42 | 11.68 | ||||||||||
CLASS R5 SHARES | April 14, 2009 | 28.96 | 17.64 | 11.87 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | 29.11 | 17.74 | 11.94 |
* | 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 (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
Returns for Class R2, Class R3, Class R4 and Class R5 Shares prior to their inception dates are based on the performance of Class I Shares. With respect to Class R2 and Class R3 Shares, prior class performance has been adjusted to reflect the differences in expenses between classes. The actual returns for Class R4 would have been similar to those shown because Class R4 Shares had similar expenses to Class I Shares. The actual returns for Class R5 Shares would have been different than those shown because Class R5 Shares have different expenses than Class I Shares.
Returns for Class R6 Shares prior to their inception date are based on the performance of Class R5 Shares and, prior to April 14, 2009, Class I 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 and Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Large Cap Growth Fund, the Russell 1000 Growth Index and the Lipper Large-Cap Growth Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 1000 Growth Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper 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 Russell 1000 Growth Index is an unmanaged index which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper 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.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
12 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 6.81% | |||
Russell 1000 Value Index | 6.77% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 1,652,352 |
INVESTMENT OBJECTIVE**
The JPMorgan Large Cap Value Fund (the “Fund”) seeks capital appreciation with the incidental goal of achieving current income by investing primarily in equity securities.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell 1000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the energy sector and its security selection and overweight position in the auto & transportation sector were leading contributors to performance relative to the Benchmark. The Fund’s security selection in the industrial cyclical sector and its underweight position and security selection in the semiconductors & hardware sector were leading detractors from relative performance.
Leading individual contributors to performance relative to the Benchmark included the Fund’s overweight positions in D.R. Horton Inc., Diamondback Energy Inc. and its underweight position in Exxon Mobil Corp. Shares of D.R. Horton, a home builder, rose on better-than-expected earnings and revenue for several consecutive quarters during the reporting period. Shares of Diamondback Energy, an oil and natural gas producer, rose early in the reporting period after the company reported better-than-expected earnings and raised its production forecast. Shares of Exxon Mobil, a petroleum and natural gas producer not held in the Fund, fell after the company reported lower-than-expected earnings for the first quarter of 2018.
Leading individual detractors from relative performance included the Fund’s overweight positions in Allergan PLC, Dish Network Corp. and CommScope Holding Co. Shares of Allergan, a drug maker, fell after a U.S. court ruled against a key patent claim and after news reports that the company would bid to acquire Shire PLC. Shares of Dish Network, a subscription TV service, fell after the company reported a drop in earnings and subscriptions. Shares of CommScope Holding, a maker of communications infrastructure and networking products, fell after the company reported a fourth-quarter loss due to acquisition costs and lower sales in its wireless and broadband businesses.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers combined a bottom-up fundamental approach to security selection with a systematic valuation process. Overall, the Fund’s portfolio managers looked to take advantage of mispriced stocks that they believed appeared attractive relative to their fair value.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Bank of America Corp. | 3.8 | % | |||||
2. | Cigna Corp. | 3.1 | ||||||
3. | Lennar Corp., Class A | 3.0 | ||||||
4. | Citigroup, Inc. | 2.8 | ||||||
5. | Wells Fargo & Co. | 2.4 | ||||||
6. | General Motors Co. | 2.3 | ||||||
7. | Occidental Petroleum Corp. | 2.2 | ||||||
8. | Pioneer Natural Resources Co. | 2.1 | ||||||
9. | KeyCorp | 2.1 | ||||||
10. | Broadcom, Inc. | 2.0 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 28.0 | % | ||
Consumer Discretionary | 14.5 | |||
Health Care | 13.3 | |||
Energy | 13.1 | |||
Industrials | 9.3 | |||
Information Technology | 6.9 | |||
Materials | 5.4 | |||
Consumer Staples | 2.4 | |||
Real Estate | 1.1 | |||
Others (each less than 1.0%) | 0.7 | |||
Short-Term Investments | 5.3 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 13 |
Table of Contents
JPMorgan Large Cap Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 18, 1992 | |||||||||||||
With Sales Charge* | 0.91 | % | 11.06 | % | 9.01 | % | ||||||||
Without Sales Charge | 6.52 | 12.27 | 9.60 | |||||||||||
CLASS C SHARES | March 22, 1999 | |||||||||||||
With CDSC** | 5.01 | 11.69 | 9.05 | |||||||||||
Without CDSC | 6.01 | 11.69 | 9.05 | |||||||||||
CLASS I SHARES | March 1, 1991 | 6.81 | 12.45 | 9.80 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 6.28 | 11.95 | 9.32 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 6.98 | 12.66 | 10.02 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | 7.04 | 12.72 | 10.06 |
* | 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 (6/30/08 TO 6/30/18)
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 their inception date are based on the performance of Class I Shares. Prior class performance has been adjusted to reflect the differences in expenses between classes.
Returns for Class R6 Shares prior to their 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 Class I Shares of the JPMorgan Large Cap Value Fund, the Russell 1000 Value Index and the Lipper Large-Cap Value Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 1000 Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been
adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Large-Cap Value 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 Russell 1000 Value Index is an unmanaged index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Lipper Large-Cap Value Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
14 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | 13.63% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 15,058,097 |
INVESTMENT OBJECTIVE**
The JPMorgan U.S. Equity Fund (the “Fund”) seeks to provide high total return from a portfolio of selected equity securities.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the industrial cyclical and pharmaceutical/medical technology sector was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the energy and software & services sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight position in Walt Disney Co. and its underweight positions in Netflix.com Inc. and Boeing Co. Shares of Walt Disney, an entertainment and media company, fell amid a bidding war with rival Comcast Corp. for the entertainment assets of 21st Century Fox Inc. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue. Shares of Boeing, a commercial aircraft manufacturer, rose amid growth in new orders and continued earnings growth.
Leading individual contributors to relative performance included the Fund’s overweight positions in UnitedHealth Group Inc., Northrop Grumman Corp. and EOG Resources Inc. Shares of UnitedHealth Group, a health insurer, rose amid continued growth in earnings and revenue. Shares of Northrop Grumman, an aerospace and defense company, rose after the company reported better-than-expected revenue growth for the first quarter of 2018 and raised its earnings forecast for the full year 2018. Shares of EOG Resources, an oil and natural gas exploration company, rose amid an increase in global energy prices during the reporting period.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to stock selection, researching companies to determine what they believed to be their underlying value and potential for future earnings growth. As a result of this
approach to stock selection, the Fund’s largest overweight positions relative to the Benchmark for the twelve months ended June 30, 2018 were in the insurance and media sectors, while the Fund’s largest underweight positions were in the real estate investment trusts and financial sectors.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Microsoft Corp. | 4.2 | % | |||||
2. | Alphabet, Inc., Class A | 3.7 | ||||||
3. | Amazon.com, Inc. | 3.4 | ||||||
4. | Apple, Inc. | 3.2 | ||||||
5. | UnitedHealth Group, Inc. | 2.7 | ||||||
6. | Bank of America Corp. | 2.7 | ||||||
7. | Pfizer, Inc. | 2.2 | ||||||
8. | Visa, Inc., Class A | 2.1 | ||||||
9. | Johnson & Johnson | 2.0 | ||||||
10. | Citigroup, Inc. | 1.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 27.3 | % | ||
Health Care | 15.1 | |||
Consumer Discretionary | 13.9 | |||
Financials | 13.4 | |||
Industrials | 10.8 | |||
Energy | 6.8 | |||
Consumer Staples | 4.9 | |||
Utilities | 2.7 | |||
Materials | 1.9 | |||
Telecommunication Services | 1.3 | |||
Real Estate | 0.9 | |||
Short-Term Investments | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 15 |
Table of Contents
JPMorgan U.S. Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 10, 2001 | |||||||||||||
With Sales Charge* | 7.23 | % | 11.74 | % | 9.75 | % | ||||||||
Without Sales Charge | 13.20 | 12.95 | 10.34 | |||||||||||
CLASS C SHARES | September 10, 2001 | |||||||||||||
With CDSC** | 11.66 | 12.37 | 9.79 | |||||||||||
Without CDSC | 12.66 | 12.37 | 9.79 | |||||||||||
CLASS I SHARES | September 10, 2001 | 13.44 | 13.15 | 10.57 | ||||||||||
CLASS L SHARES | September 17, 1993 | 13.63 | 13.31 | 10.73 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 12.88 | 12.66 | 10.07 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 13.18 | 12.94 | 10.33 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 13.48 | 13.16 | 10.57 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 13.66 | 13.37 | 10.78 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | 13.75 | 13.44 | 10.84 |
* | 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 (6/30/08 TO 6/30/18)
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 and Class R3 Shares prior to their inception dates are based on the performance of Class A Shares. The actual returns of Class R2 Shares would have been lower than those shown because Class R2 Shares have higher expenses than Class A Shares. The actual returns of Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to Class A Shares.
Returns for Class R6 Shares prior to their 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.
Returns for Class R4 Shares prior to their inception date are based on the performance of Class I Shares. The actual returns for Class R4 Shares would have been similar to those shown because Class R4 Shares have similar expenses than Class I Shares.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan U.S. Equity Fund, the S&P 500 Index and the Lipper Large-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 500 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 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The Lipper 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 L 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
16 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan U.S. Research Enhanced Equity Fund
(formerly known as JPMorgan Disciplined Equity Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | 13.20% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 6,737,090 |
INVESTMENT OBJECTIVE**
The JPMorgan U.S. Research Enhanced Equity Fund (the “Fund”) seeks to provide a consistently high total return from a broadly diversified portfolio of equity securities with risk characteristics similar to the Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index).
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the telecommunications and financials sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the technology and energy sectors was a leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s underweight positions in Boeing Co., Netflix.com Inc. and Mastercard Inc. Shares of Boeing, a commercial aircraft manufacturer, rose amid growth in new orders and continued earnings growth. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue. Shares of Mastercard, a credit card and payments transfer service, rose amid increased revenue from growth in consumer spending.
Leading individual contributors to relative performance included the Fund’s overweight positions in Adobe Systems Inc., UnitedHealth Group Inc. and Union Pacific Corp. Shares of Adobe Systems, a software developer, rose after the company reported better-than-expected first quarter earnings and revenue. Shares of UnitedHealth Group, a health insurer, rose amid continued growth in earnings and revenue. Shares of Union Pacific, a railroad operator, rose after the company reported better-than-expected earnings and growth in revenue for the first quarter of 2018.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers attempted to construct the portfolio so that stock selection was the principal source of poten-
tial excess return. The Fund’s portfolio managers sought investment opportunities in companies that they believed were attractive based on valuation and strong fundamentals.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Microsoft Corp. | 4.1 | % | |||||
2. | Apple, Inc. | 3.8 | ||||||
3. | Amazon.com, Inc. | 3.1 | ||||||
4. | Facebook, Inc., Class A | 2.2 | ||||||
5. | Bank of America Corp. | 1.9 | ||||||
6. | UnitedHealth Group, Inc. | 1.8 | ||||||
7. | Alphabet, Inc., Class A | 1.8 | ||||||
8. | Alphabet, Inc., Class C | 1.7 | ||||||
9. | Visa, Inc., Class A | 1.5 | ||||||
10. | Berkshire Hathaway, Inc., Class B | 1.4 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 25.6 | % | ||
Consumer Discretionary | 14.8 | |||
Health Care | 13.6 | |||
Financials | 13.5 | |||
Industrials | 9.8 | |||
Energy | 6.2 | |||
Consumer Staples | 6.0 | |||
Utilities | 2.9 | |||
Materials | 2.6 | |||
Real Estate | 2.2 | |||
Telecommunication Services | 1.1 | |||
Short-Term Investments | 1.7 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 17 |
Table of Contents
JPMorgan U.S. Research Enhanced Equity Fund
(formerly known as JPMorgan Disciplined Equity Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 28, 2001 | |||||||||||||
With Sales Charge* | 6.98 | % | 10.74 | % | 9.35 | % | ||||||||
Without Sales Charge | 12.92 | 11.94 | 9.94 | |||||||||||
CLASS I SHARES | September 10, 2001 | 13.19 | 12.22 | 10.22 | ||||||||||
CLASS L SHARES | January 3, 1997 | 13.20 | 12.33 | 10.36 | ||||||||||
CLASS R6 SHARES | March 24, 2003 | 13.28 | 12.44 | 10.47 |
* | Sales Charge for Class A Shares is 5.25%. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan U.S. Research Enhanced Equity Fund, the S&P 500 Index and the Lipper Large-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 500 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 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The Lipper 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 L 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
18 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Focus Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.0% | ||||||||
Airlines — 2.8% |
| |||||||
Delta Air Lines, Inc. | 144 | 7,155 | ||||||
|
| |||||||
Banks — 3.1% | ||||||||
Wells Fargo & Co. | 142 | 7,888 | ||||||
|
| |||||||
Beverages — 1.8% | ||||||||
Molson Coors Brewing Co., Class B | 66 | 4,469 | ||||||
|
| |||||||
Biotechnology — 1.4% | ||||||||
Vertex Pharmaceuticals, Inc.* | 21 | 3,583 | ||||||
|
| |||||||
Capital Markets — 6.6% | ||||||||
Charles Schwab Corp. (The) | 108 | 5,498 | ||||||
S&P Global, Inc. | 26 | 5,297 | ||||||
T. Rowe Price Group, Inc. | 52 | 6,013 | ||||||
|
| |||||||
16,808 | ||||||||
|
| |||||||
Commercial Services & Supplies — 1.7% | ||||||||
Waste Connections, Inc. | 58 | 4,330 | ||||||
|
| |||||||
Consumer Finance — 3.9% | ||||||||
Ally Financial, Inc. | 101 | 2,656 | ||||||
Capital One Financial Corp. | 78 | 7,132 | ||||||
|
| |||||||
9,788 | ||||||||
|
| |||||||
Containers & Packaging — 4.6% |
| |||||||
Ball Corp. | 224 | 7,967 | ||||||
WestRock Co. | 65 | 3,695 | ||||||
|
| |||||||
11,662 | ||||||||
|
| |||||||
Electric Utilities — 2.4% |
| |||||||
Xcel Energy, Inc. | 133 | 6,063 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 5.4% |
| |||||||
Federal Realty Investment Trust | 63 | 7,913 | ||||||
Public Storage | 25 | 5,684 | ||||||
|
| |||||||
13,597 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.8% |
| |||||||
Walgreens Boots Alliance, Inc. | 77 | 4,615 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 1.5% |
| |||||||
Intuitive Surgical, Inc.* | 8 | 3,715 | ||||||
|
| |||||||
Health Care Providers & Services — 4.6% |
| |||||||
Acadia Healthcare Co., Inc.* | 44 | 1,817 | ||||||
UnitedHealth Group, Inc. | 40 | 9,774 | ||||||
|
| |||||||
11,591 | ||||||||
|
| |||||||
Insurance — 5.6% |
| |||||||
American International Group, Inc. | 152 | 8,060 | ||||||
Loews Corp. | 127 | 6,122 | ||||||
|
| |||||||
14,182 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Internet & Direct Marketing Retail — 5.1% |
| |||||||
Amazon.com, Inc.* | 8 | 12,918 | ||||||
|
| |||||||
Internet Software & Services — 4.9% |
| |||||||
Alphabet, Inc., Class C* | 11 | 12,350 | ||||||
|
| |||||||
IT Services — 3.9% |
| |||||||
Mastercard, Inc., Class A | 51 | 10,009 | ||||||
|
| |||||||
Machinery — 2.4% |
| |||||||
Parker-Hannifin Corp. | 16 | 2,553 | ||||||
Stanley Black & Decker, Inc. | 27 | 3,568 | ||||||
|
| |||||||
6,121 | ||||||||
|
| |||||||
Media — 2.2% | ||||||||
DISH Network Corp., Class A* | 167 | 5,625 | ||||||
|
| |||||||
Multiline Retail — 2.0% | ||||||||
Kohl’s Corp. | 71 | 5,143 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.6% | ||||||||
Concho Resources, Inc.* | 32 | 4,426 | ||||||
Kinder Morgan, Inc. | 482 | 8,522 | ||||||
Marathon Petroleum Corp. | 55 | 3,873 | ||||||
|
| |||||||
16,821 | ||||||||
|
| |||||||
Pharmaceuticals — 2.2% | ||||||||
Pfizer, Inc. | 153 | 5,548 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.7% |
| |||||||
Broadcom, Inc. | 22 | 5,265 | ||||||
NVIDIA Corp. | 17 | 4,006 | ||||||
|
| |||||||
9,271 | ||||||||
|
| |||||||
Software — 7.8% | ||||||||
Electronic Arts, Inc.* | 31 | 4,360 | ||||||
Microsoft Corp. | 71 | 6,989 | ||||||
salesforce.com, Inc.* | 31 | 4,179 | ||||||
ServiceNow, Inc.* | 24 | 4,134 | ||||||
|
| |||||||
19,662 | ||||||||
|
| |||||||
Specialty Retail — 3.6% | ||||||||
AutoZone, Inc.* | 14 | 9,114 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.4% |
| |||||||
Apple, Inc. | 60 | 11,038 | ||||||
|
| |||||||
Total Common Stocks | 243,066 | |||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 19 |
Table of Contents
JPMorgan Equity Focus Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 4.0% | ||||||||
Investment Companies — 4.0% | ||||||||
JPMorgan U.S. Government Money Market Fund | 10,204 | 10,204 | ||||||
|
| |||||||
Total Investments — 100.0% | 253,270 | |||||||
Other Assets Less Liabilities — 0.0% (c) | 100 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 253,370 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
(c) | Amount rounds to less than 0.05% of net assets. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.6% | ||||||||
Aerospace & Defense — 1.4% |
| |||||||
General Dynamics Corp. | 1,321 | 246,297 | ||||||
|
| |||||||
Banks — 9.7% | ||||||||
Bank of America Corp. | 18,100 | 510,231 | ||||||
BB&T Corp. | 3,565 | 179,821 | ||||||
Cullen/Frost Bankers, Inc. | 996 | 107,849 | ||||||
M&T Bank Corp. | 443 | 75,324 | ||||||
PNC Financial Services Group, Inc. (The) | 2,709 | 365,985 | ||||||
US Bancorp | 3,590 | 179,562 | ||||||
Wells Fargo & Co. | 4,487 | 248,763 | ||||||
|
| |||||||
1,667,535 | ||||||||
|
| |||||||
Beverages — 2.7% | ||||||||
Coca-Cola Co. (The) | 3,004 | 131,739 | ||||||
Dr Pepper Snapple Group, Inc. | 1,067 | 130,135 | ||||||
Molson Coors Brewing Co., Class B | 1,208 | 82,212 | ||||||
PepsiCo, Inc. | 1,169 | 127,243 | ||||||
|
| |||||||
471,329 | ||||||||
|
| |||||||
Biotechnology — 0.8% | ||||||||
Gilead Sciences, Inc. | 1,923 | 136,238 | ||||||
|
| |||||||
Capital Markets — 6.8% | ||||||||
BlackRock, Inc. | 762 | 380,100 | ||||||
CME Group, Inc. | 2,388 | 391,478 | ||||||
Northern Trust Corp. | 1,332 | 137,043 | ||||||
S&P Global, Inc. | 232 | 47,366 | ||||||
T. Rowe Price Group, Inc. | 1,916 | 222,380 | ||||||
|
| |||||||
1,178,367 | ||||||||
|
| |||||||
Chemicals — 3.9% | ||||||||
Air Products & Chemicals, Inc. | 1,361 | 211,976 | ||||||
DowDuPont, Inc. | 2,531 | 166,851 | ||||||
PPG Industries, Inc. | 1,874 | 194,390 | ||||||
RPM International, Inc. | 1,605 | 93,585 | ||||||
|
| |||||||
666,802 | ||||||||
|
| |||||||
Commercial Services & Supplies — 1.4% | ||||||||
Republic Services, Inc. | 3,557 | 243,188 | ||||||
|
| |||||||
Consumer Finance — 1.5% | ||||||||
Capital One Financial Corp. | 1,526 | 140,194 | ||||||
Discover Financial Services | 1,780 | 125,349 | ||||||
|
| |||||||
265,543 | ||||||||
|
| |||||||
Distributors — 1.0% | ||||||||
Genuine Parts Co. | 1,854 | 170,145 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.4% |
| |||||||
Verizon Communications, Inc. | 4,864 | 244,714 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electric Utilities — 2.2% | ||||||||
NextEra Energy, Inc. | 1,303 | 217,640 | ||||||
Xcel Energy, Inc. | 3,380 | 154,413 | ||||||
|
| |||||||
372,053 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.6% | ||||||||
Apergy Corp.* | 525 | 21,900 | ||||||
Schlumberger Ltd. | 1,292 | 86,594 | ||||||
|
| |||||||
108,494 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 2.8% |
| |||||||
Alexandria Real Estate Equities, Inc. | 347 | 43,776 | ||||||
AvalonBay Communities, Inc. | 925 | 159,044 | ||||||
Boston Properties, Inc. | 636 | 79,800 | ||||||
Simon Property Group, Inc. | 856 | 145,720 | ||||||
Vornado Realty Trust | 756 | 55,884 | ||||||
|
| |||||||
484,224 | ||||||||
|
| |||||||
Food Products — 1.6% | ||||||||
Kraft Heinz Co. (The) | 1,455 | 91,424 | ||||||
Mondelez International, Inc., Class A | 4,383 | 179,717 | ||||||
|
| |||||||
271,141 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
Abbott Laboratories | 1,963 | 119,705 | ||||||
Becton Dickinson and Co. | 837 | 200,490 | ||||||
Medtronic plc | 2,135 | 182,806 | ||||||
|
| |||||||
503,001 | ||||||||
|
| |||||||
Health Care Providers & Services — 0.8% | ||||||||
CVS Health Corp. | 2,108 | 135,670 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.0% | ||||||||
McDonald’s Corp. | 1,240 | 194,248 | ||||||
Starbucks Corp. | 1,797 | 87,806 | ||||||
Wyndham Destinations, Inc. | 484 | 21,420 | ||||||
Wyndham Hotels & Resorts, Inc. | 809 | 47,578 | ||||||
|
| |||||||
351,052 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.6% | ||||||||
3M Co. | 560 | 110,258 | ||||||
Honeywell International, Inc. | 1,127 | 162,305 | ||||||
|
| |||||||
272,563 | ||||||||
|
| |||||||
Insurance — 7.7% | ||||||||
Arthur J Gallagher & Co. | 1,620 | 105,724 | ||||||
Chubb Ltd. | 1,168 | 148,420 | ||||||
Cincinnati Financial Corp. | 975 | 65,218 | ||||||
Hartford Financial Services Group, Inc. (The) | 4,908 | 250,937 | ||||||
MetLife, Inc. | 4,227 | 184,310 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 21 |
Table of Contents
JPMorgan Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Insurance — continued | ||||||||
Progressive Corp. (The) | 1,291 | 76,383 | ||||||
Prudential Financial, Inc. | 2,046 | 191,358 | ||||||
Travelers Cos., Inc. (The) | 2,470 | 302,220 | ||||||
|
| |||||||
1,324,570 | ||||||||
|
| |||||||
IT Services — 2.3% | ||||||||
Accenture plc, Class A | 570 | 93,269 | ||||||
Automatic Data Processing, Inc. | 833 | 111,792 | ||||||
Fidelity National Information Services, Inc. | 1,808 | 191,667 | ||||||
|
| |||||||
396,728 | ||||||||
|
| |||||||
Leisure Products — 0.5% | ||||||||
Hasbro, Inc. | 869 | 80,221 | ||||||
|
| |||||||
Machinery — 4.0% | ||||||||
Dover Corp. | 3,073 | 224,908 | ||||||
Illinois Tool Works, Inc. | 1,894 | 262,351 | ||||||
Snap-on, Inc. | 217 | 34,926 | ||||||
Stanley Black & Decker, Inc. | 1,241 | 164,869 | ||||||
|
| |||||||
687,054 | ||||||||
|
| |||||||
Media — 1.1% |
| |||||||
Comcast Corp., Class A | 5,580 | 183,092 | ||||||
|
| |||||||
Multiline Retail — 0.4% | ||||||||
Target Corp. | 894 | 68,073 | ||||||
|
| |||||||
Multi-Utilities — 1.8% | ||||||||
CMS Energy Corp. | 2,803 | 132,543 | ||||||
DTE Energy Co. | 261 | 27,026 | ||||||
NiSource, Inc. | 3,563 | 93,624 | ||||||
Public Service Enterprise Group, Inc. | 1,027 | 55,618 | ||||||
|
| |||||||
308,811 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 8.9% | ||||||||
Chevron Corp. | 3,941 | 498,232 | ||||||
ConocoPhillips | 5,665 | 394,431 | ||||||
Exxon Mobil Corp. | 1,795 | 148,486 | ||||||
Occidental Petroleum Corp. | 4,852 | 406,020 | ||||||
Valero Energy Corp. | 776 | 86,015 | ||||||
|
| |||||||
1,533,184 | ||||||||
|
| |||||||
Pharmaceuticals — 8.2% | ||||||||
Bristol-Myers Squibb Co. | 3,378 | 186,920 | ||||||
Eli Lilly & Co. | 2,735 | 233,375 | ||||||
Johnson & Johnson | 2,699 | 327,465 | ||||||
Merck & Co., Inc. | 6,455 | 391,841 | ||||||
Pfizer, Inc. | 7,469 | 270,969 | ||||||
|
| |||||||
1,410,570 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Road & Rail — 1.8% | ||||||||
Norfolk Southern Corp. | 976 | 147,213 | ||||||
Union Pacific Corp. | 1,135 | 160,814 | ||||||
|
| |||||||
308,027 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.7% |
| |||||||
Analog Devices, Inc. | 2,863 | 274,666 | ||||||
KLA-Tencor Corp. | 1,075 | 110,266 | ||||||
QUALCOMM, Inc. | 1,210 | 67,910 | ||||||
Texas Instruments, Inc. | 3,326 | 366,721 | ||||||
|
| |||||||
819,563 | ||||||||
|
| |||||||
Software — 2.8% | ||||||||
Microsoft Corp. | 4,975 | 490,545 | ||||||
|
| |||||||
Specialty Retail — 2.2% | ||||||||
Home Depot, Inc. (The) | 1,923 | 375,129 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 2.4% |
| |||||||
Apple, Inc. | 2,280 | 422,034 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.3% | ||||||||
VF Corp. | 671 | 54,707 | ||||||
|
| |||||||
Tobacco — 2.4% | ||||||||
Altria Group, Inc. | 4,141 | 235,177 | ||||||
Philip Morris International, Inc. | 2,175 | 175,587 | ||||||
|
| |||||||
410,764 | ||||||||
|
| |||||||
Total Common Stocks | 16,661,428 | |||||||
|
| |||||||
Short-Term Investments — 3.5% |
| |||||||
Investment Companies — 3.5% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 608,619 | 608,619 | ||||||
|
| |||||||
Total Investments — 100.1% | 17,270,047 | |||||||
Liabilities in Excess of | (15,552 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 17,254,495 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.1% | ||||||||
Aerospace & Defense — 1.6% |
| |||||||
General Dynamics Corp. | 27 | 5,108 | ||||||
United Technologies Corp. | 36 | 4,513 | ||||||
|
| |||||||
9,621 | ||||||||
|
| |||||||
Banks — 11.5% | ||||||||
Bank of America Corp. | 679 | 19,130 | ||||||
BB&T Corp. | 121 | 6,088 | ||||||
Citigroup, Inc. | 90 | 6,013 | ||||||
Cullen/Frost Bankers, Inc. | 36 | 3,886 | ||||||
M&T Bank Corp. | 37 | 6,245 | ||||||
PNC Financial Services Group, Inc. (The) | 62 | 8,376 | ||||||
SunTrust Banks, Inc. | 114 | 7,513 | ||||||
US Bancorp | 125 | 6,233 | ||||||
Wells Fargo & Co. | 128 | 7,107 | ||||||
|
| |||||||
70,591 | ||||||||
|
| |||||||
Beverages — 1.9% | ||||||||
Dr Pepper Snapple Group, Inc. | 34 | 4,136 | ||||||
Molson Coors Brewing Co., Class B | 113 | 7,709 | ||||||
|
| |||||||
11,845 | ||||||||
|
| |||||||
Biotechnology — 1.0% | ||||||||
Gilead Sciences, Inc. | 84 | 5,979 | ||||||
|
| |||||||
Capital Markets — 8.3% | ||||||||
BlackRock, Inc. | 25 | 12,326 | ||||||
Charles Schwab Corp. (The) | 69 | 3,500 | ||||||
Goldman Sachs Group, Inc. (The) | 31 | 6,860 | ||||||
Invesco Ltd. | 197 | 5,238 | ||||||
Morgan Stanley | 255 | 12,096 | ||||||
T. Rowe Price Group, Inc. | 91 | 10,576 | ||||||
|
| |||||||
50,596 | ||||||||
|
| |||||||
Chemicals — 1.4% | ||||||||
Air Products & Chemicals, Inc. | 19 | 2,912 | ||||||
DowDuPont, Inc. | 82 | 5,392 | ||||||
|
| |||||||
8,304 | ||||||||
|
| |||||||
Consumer Finance — 2.2% | ||||||||
Capital One Financial Corp. | 72 | 6,617 | ||||||
Discover Financial Services | 98 | 6,893 | ||||||
|
| |||||||
13,510 | ||||||||
|
| |||||||
Distributors — 0.7% | ||||||||
Genuine Parts Co. | 45 | 4,121 | ||||||
|
| |||||||
Diversified Financial Services — 1.8% | ||||||||
Berkshire Hathaway, Inc., Class B* | 60 | 11,143 | ||||||
|
| |||||||
Diversified Telecommunication Services — 1.2% | ||||||||
Verizon Communications, Inc. | 148 | 7,427 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electric Utilities — 1.2% | ||||||||
NextEra Energy, Inc. | 24 | 3,942 | ||||||
Xcel Energy, Inc. | 77 | 3,508 | ||||||
|
| |||||||
7,450 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.2% | ||||||||
Apergy Corp.* | 24 | 1,019 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 4.2% |
| |||||||
AvalonBay Communities, Inc. | 20 | 3,438 | ||||||
Crown Castle International Corp. | 44 | 4,722 | ||||||
Macerich Co. (The) | 56 | 3,200 | ||||||
Simon Property Group, Inc. | 28 | 4,799 | ||||||
Ventas, Inc. | 79 | 4,488 | ||||||
Vornado Realty Trust | 69 | 5,130 | ||||||
|
| |||||||
25,777 | ||||||||
|
| |||||||
Food Products — 0.4% | ||||||||
Mondelez International, Inc., Class A | 62 | 2,558 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 1.7% | ||||||||
Becton Dickinson and Co. | 25 | 6,085 | ||||||
Medtronic plc | 50 | 4,263 | ||||||
|
| |||||||
10,348 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.7% | ||||||||
Aetna, Inc. | 35 | 6,331 | ||||||
AmerisourceBergen Corp. | 69 | 5,918 | ||||||
CVS Health Corp. | 85 | 5,444 | ||||||
Humana, Inc. | 15 | 4,554 | ||||||
UnitedHealth Group, Inc. | 27 | 6,501 | ||||||
|
| |||||||
28,748 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.6% | ||||||||
Royal Caribbean Cruises Ltd. | 35 | 3,585 | ||||||
|
| |||||||
Household Products — 0.9% | ||||||||
Colgate-Palmolive Co. | 85 | 5,489 | ||||||
|
| |||||||
Industrial Conglomerates — 3.5% | ||||||||
3M Co. | 41 | 7,967 | ||||||
Honeywell International, Inc. | 92 | 13,224 | ||||||
|
| |||||||
21,191 | ||||||||
|
| |||||||
Insurance — 4.5% | ||||||||
Chubb Ltd. | 51 | 6,499 | ||||||
Hartford Financial Services Group, Inc. (The) | 195 | 9,945 | ||||||
Loews Corp. | 56 | 2,704 | ||||||
MetLife, Inc. | 82 | 3,575 | ||||||
Prudential Financial, Inc. | 53 | 4,956 | ||||||
|
| |||||||
27,679 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 23 |
Table of Contents
JPMorgan Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Internet Software & Services — 1.2% | ||||||||
Alphabet, Inc., Class C* | 7 | 7,273 | ||||||
|
| |||||||
IT Services — 0.9% | ||||||||
Fidelity National Information Services, Inc. | 51 | 5,386 | ||||||
|
| |||||||
Machinery — 1.7% | ||||||||
Dover Corp. | 49 | 3,572 | ||||||
Parker-Hannifin Corp. | 44 | 6,904 | ||||||
|
| |||||||
10,476 | ||||||||
|
| |||||||
Media — 2.0% | ||||||||
Comcast Corp., Class A | 73 | 2,398 | ||||||
DISH Network Corp., Class A* | 128 | 4,316 | ||||||
Walt Disney Co. (The) | 51 | 5,293 | ||||||
|
| |||||||
12,007 | ||||||||
|
| |||||||
Multiline Retail — 1.7% | ||||||||
Macy’s, Inc. | 152 | 5,693 | ||||||
Target Corp. | 60 | 4,575 | ||||||
|
| |||||||
10,268 | ||||||||
|
| |||||||
Multi-Utilities — 1.3% |
| |||||||
CMS Energy Corp. | 169 | 7,986 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 10.8% | ||||||||
Chevron Corp. | 98 | 12,441 | ||||||
ConocoPhillips | 143 | 9,961 | ||||||
EOG Resources, Inc. | 47 | 5,879 | ||||||
Exxon Mobil Corp. | 82 | 6,799 | ||||||
Marathon Petroleum Corp. | 36 | 2,540 | ||||||
Occidental Petroleum Corp. | 132 | 11,062 | ||||||
Phillips 66 | 43 | 4,852 | ||||||
Pioneer Natural Resources Co. | 14 | 2,574 | ||||||
Valero Energy Corp. | 50 | 5,575 | ||||||
Williams Cos., Inc. (The) | 167 | 4,524 | ||||||
|
| |||||||
66,207 | ||||||||
|
| |||||||
Pharmaceuticals — 6.3% | ||||||||
Bristol-Myers Squibb Co. | 168 | 9,275 | ||||||
Eli Lilly & Co. | 51 | 4,352 | ||||||
Johnson & Johnson | 43 | 5,218 | ||||||
Merck & Co., Inc. | 213 | 12,909 | ||||||
Pfizer, Inc. | 184 | 6,686 | ||||||
|
| |||||||
38,440 | ||||||||
|
| |||||||
Road & Rail — 0.7% | ||||||||
CSX Corp. | 34 | 2,175 | ||||||
Kansas City Southern | 19 | 2,055 | ||||||
|
| |||||||
4,230 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Semiconductors & Semiconductor Equipment — 4.9% |
| |||||||
Analog Devices, Inc. | 77 | 7,405 | ||||||
Applied Materials, Inc. | 97 | 4,480 | ||||||
Broadcom, Inc. | 18 | 4,295 | ||||||
KLA-Tencor Corp. | 35 | 3,599 | ||||||
Texas Instruments, Inc. | 92 | 10,121 | ||||||
|
| |||||||
29,900 | ||||||||
|
| |||||||
Software — 2.8% | ||||||||
Microsoft Corp. | 174 | 17,158 | ||||||
|
| |||||||
Specialty Retail — 3.2% | ||||||||
AutoZone, Inc.* | 7 | 4,435 | ||||||
Home Depot, Inc. (The) | 77 | 15,003 | ||||||
|
| |||||||
19,438 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 1.4% |
| |||||||
Apple, Inc. | 48 | 8,885 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
NIKE, Inc., Class B | 82 | 6,550 | ||||||
|
| |||||||
Tobacco — 1.6% | ||||||||
Altria Group, Inc. | 84 | 4,754 | ||||||
Philip Morris International, Inc. | 60 | 4,828 | ||||||
|
| |||||||
9,582 | ||||||||
|
| |||||||
Trading Companies & Distributors — 1.0% | ||||||||
Watsco, Inc. | 35 | 6,311 | ||||||
|
| |||||||
Total Common Stocks | 587,078 | |||||||
|
| |||||||
Short-Term Investments — 4.6% |
| |||||||
Investment Companies — 4.6% |
| |||||||
JPMorgan U.S. Government Money Market Fund | 27,866 | 27,866 | ||||||
|
| |||||||
Total Investments — 100.7% |
| 614,944 | ||||||
Liabilities in Excess of |
| (4,181 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 610,763 | |||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Hedged Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.7% | ||||||||
Aerospace & Defense — 2.1% |
| |||||||
Boeing Co. (The) | 23 | 7,738 | ||||||
General Dynamics Corp. (a) | 74 | 13,764 | ||||||
Harris Corp. | 12 | 1,698 | ||||||
Northrop Grumman Corp. (a) | 44 | 13,398 | ||||||
United Technologies Corp. (a) | 114 | 14,312 | ||||||
|
| |||||||
50,910 | ||||||||
|
| |||||||
Airlines — 0.5% | ||||||||
Delta Air Lines, Inc. | 218 | 10,820 | ||||||
United Continental Holdings, Inc.* | 26 | 1,781 | ||||||
|
| |||||||
12,601 | ||||||||
|
| |||||||
Auto Components — 0.3% | ||||||||
Aptiv plc | 52 | 4,743 | ||||||
Delphi Technologies plc | 58 | 2,647 | ||||||
|
| |||||||
7,390 | ||||||||
|
| |||||||
Automobiles — 0.5% | ||||||||
Ford Motor Co. | 1,079 | 11,944 | ||||||
|
| |||||||
Banks — 5.7% | ||||||||
Bank of America Corp. (a) | 1,649 | 46,479 | ||||||
BB&T Corp. | 130 | 6,576 | ||||||
Citigroup, Inc. | 487 | 32,572 | ||||||
Fifth Third Bancorp | 55 | 1,571 | ||||||
Huntington Bancshares, Inc. | 325 | 4,797 | ||||||
KeyCorp | 360 | 7,035 | ||||||
SunTrust Banks, Inc. | 127 | 8,408 | ||||||
SVB Financial Group* | 5 | 1,559 | ||||||
Wells Fargo & Co. (a) | 542 | 30,042 | ||||||
|
| |||||||
139,039 | ||||||||
|
| |||||||
Beverages — 2.7% | ||||||||
Coca-Cola Co. (The) | 353 | 15,486 | ||||||
Constellation Brands, Inc., Class A | 28 | 6,072 | ||||||
Molson Coors Brewing Co., Class B (a) | 230 | 15,664 | ||||||
PepsiCo, Inc. | 257 | 27,970 | ||||||
|
| |||||||
65,192 | ||||||||
|
| |||||||
Biotechnology — 2.4% | ||||||||
AbbVie, Inc. | 112 | 10,342 | ||||||
Alexion Pharmaceuticals, Inc.* | 23 | 2,876 | ||||||
Amgen, Inc. | 38 | 7,090 | ||||||
Biogen, Inc.* | 35 | 10,208 | ||||||
Celgene Corp.* | 81 | 6,433 | ||||||
Gilead Sciences, Inc. | 179 | 12,714 | ||||||
Vertex Pharmaceuticals, Inc.* | 49 | 8,335 | ||||||
|
| |||||||
57,998 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Building Products — 0.7% | ||||||||
Allegion plc | 91 | 7,028 | ||||||
Masco Corp. | 243 | 9,098 | ||||||
|
| |||||||
16,126 | ||||||||
|
| |||||||
Capital Markets — 3.2% | ||||||||
Bank of New York Mellon Corp. (The) | 145 | 7,812 | ||||||
BlackRock, Inc. | 6 | 3,073 | ||||||
Charles Schwab Corp. (The) (a) | 221 | 11,301 | ||||||
CME Group, Inc. | 15 | 2,424 | ||||||
Intercontinental Exchange, Inc. | 127 | 9,362 | ||||||
Morgan Stanley (a) | 461 | 21,855 | ||||||
State Street Corp. (a) | 199 | 18,559 | ||||||
T. Rowe Price Group, Inc. | 29 | 3,413 | ||||||
|
| |||||||
77,799 | ||||||||
|
| |||||||
Chemicals — 2.0% | ||||||||
Celanese Corp., Series A | 52 | 5,728 | ||||||
DowDuPont, Inc. (a) | 456 | 30,054 | ||||||
Eastman Chemical Co. | 122 | 12,149 | ||||||
|
| |||||||
47,931 | ||||||||
|
| |||||||
Communications Equipment — 0.3% | ||||||||
Cisco Systems, Inc. | 150 | 6,435 | ||||||
Motorola Solutions, Inc. | 11 | 1,241 | ||||||
|
| |||||||
7,676 | ||||||||
|
| |||||||
Consumer Finance — 0.8% | ||||||||
American Express Co. | 27 | 2,690 | ||||||
Capital One Financial Corp. | 173 | 15,883 | ||||||
|
| |||||||
18,573 | ||||||||
|
| |||||||
Containers & Packaging — 0.4% | ||||||||
Crown Holdings, Inc.* | 79 | 3,516 | ||||||
WestRock Co. | 110 | 6,294 | ||||||
|
| |||||||
9,810 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.0% (b) | ||||||||
H&R Block, Inc. | 43 | 978 | ||||||
|
| |||||||
Diversified Financial Services — 1.5% | ||||||||
Berkshire Hathaway, Inc., Class B* (a) | 185 | 34,567 | ||||||
Voya Financial, Inc. | 25 | 1,181 | ||||||
|
| |||||||
35,748 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.8% | ||||||||
AT&T, Inc. | 288 | 9,263 | ||||||
Verizon Communications, Inc. (a) | 192 | 9,643 | ||||||
|
| |||||||
18,906 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 25 |
Table of Contents
JPMorgan Hedged Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Electric Utilities — 2.2% | ||||||||
American Electric Power Co., Inc. | 101 | 6,968 | ||||||
Exelon Corp. | 268 | 11,437 | ||||||
NextEra Energy, Inc. (a) | 142 | 23,640 | ||||||
PG&E Corp. | 51 | 2,189 | ||||||
Xcel Energy, Inc. | 204 | 9,340 | ||||||
|
| |||||||
53,574 | ||||||||
|
| |||||||
Electrical Equipment — 0.6% | ||||||||
Eaton Corp. plc (a) | 194 | 14,475 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 2.2% |
| |||||||
AvalonBay Communities, Inc. | 59 | 10,111 | ||||||
Brixmor Property Group, Inc. | 59 | 1,022 | ||||||
Digital Realty Trust, Inc. | 16 | 1,821 | ||||||
Equinix, Inc. | 9 | 4,023 | ||||||
Equity Residential | 134 | 8,557 | ||||||
Federal Realty Investment Trust | 32 | 4,041 | ||||||
Prologis, Inc. | 37 | 2,463 | ||||||
Public Storage | 48 | 10,969 | ||||||
Ventas, Inc. | 57 | 3,240 | ||||||
Vornado Realty Trust | 99 | 7,284 | ||||||
|
| |||||||
53,531 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.4% |
| |||||||
Walgreens Boots Alliance, Inc. | 167 | 10,045 | ||||||
|
| |||||||
Food Products — 0.9% | ||||||||
Mondelez International, Inc., Class A | 506 | 20,727 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 3.1% | ||||||||
Abbott Laboratories (a) | 207 | 12,640 | ||||||
Becton Dickinson and Co. | 59 | 14,113 | ||||||
Boston Scientific Corp.* (a) | 494 | 16,164 | ||||||
Danaher Corp. | 63 | 6,186 | ||||||
Intuitive Surgical, Inc.* | 9 | 4,133 | ||||||
Medtronic plc | 139 | 11,917 | ||||||
Zimmer Biomet Holdings, Inc. | 100 | 11,127 | ||||||
|
| |||||||
76,280 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.9% | ||||||||
AmerisourceBergen Corp. | 53 | 4,544 | ||||||
Cigna Corp. | 88 | 14,995 | ||||||
CVS Health Corp. | 105 | 6,745 | ||||||
UnitedHealth Group, Inc. (a) | 184 | 45,044 | ||||||
|
| |||||||
71,328 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.7% | ||||||||
Hilton Worldwide Holdings, Inc. | 107 | 8,499 | ||||||
Royal Caribbean Cruises Ltd. | 24 | 2,488 | ||||||
Yum! Brands, Inc. | 93 | 7,259 | ||||||
|
| |||||||
18,246 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Household Durables — 0.3% | ||||||||
Lennar Corp., Class A | 130 | 6,844 | ||||||
Toll Brothers, Inc. (a) | 37 | 1,365 | ||||||
|
| |||||||
8,209 | ||||||||
|
| |||||||
Household Products — 0.7% | ||||||||
Colgate-Palmolive Co. | 90 | 5,858 | ||||||
Procter & Gamble Co. (The) | 128 | 9,993 | ||||||
|
| |||||||
15,851 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.1% | ||||||||
Honeywell International, Inc. | 184 | 26,438 | ||||||
|
| |||||||
Insurance — 2.4% | ||||||||
American International Group, Inc. | 331 | 17,536 | ||||||
Chubb Ltd. | 12 | 1,484 | ||||||
Everest Re Group Ltd. | 10 | 2,202 | ||||||
Hartford Financial Services Group, Inc. (The) | 187 | 9,579 | ||||||
Lincoln National Corp. | 114 | 7,105 | ||||||
Marsh & McLennan Cos., Inc. | 39 | 3,191 | ||||||
MetLife, Inc. (a) | 247 | 10,748 | ||||||
Principal Financial Group, Inc. | 27 | 1,430 | ||||||
Prudential Financial, Inc. | 50 | 4,656 | ||||||
|
| |||||||
57,931 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.7% | ||||||||
Amazon.com, Inc.* (a) | 44 | 75,237 | ||||||
Booking Holdings, Inc.* | 2 | 5,041 | ||||||
Expedia Group, Inc. | 23 | 2,815 | ||||||
Netflix, Inc.* | 18 | 6,864 | ||||||
|
| |||||||
89,957 | ||||||||
|
| |||||||
Internet Software & Services — 5.7% | ||||||||
Alphabet, Inc., Class A* (a) | 38 | 43,432 | ||||||
Alphabet, Inc., Class C* (a) | 37 | 41,499 | ||||||
Facebook, Inc., Class A* (a) | 272 | 52,920 | ||||||
|
| |||||||
137,851 | ||||||||
|
| |||||||
IT Services — 3.9% | ||||||||
Accenture plc, Class A (a) | 107 | 17,439 | ||||||
Alliance Data Systems Corp. | 14 | 3,351 | ||||||
Fidelity National Information Services, Inc. | 123 | 12,995 | ||||||
International Business Machines Corp. | 48 | 6,668 | ||||||
Mastercard, Inc., Class A | 47 | 9,268 | ||||||
PayPal Holdings, Inc.* | 57 | 4,721 | ||||||
Visa, Inc., Class A (a) | 279 | 36,945 | ||||||
Worldpay, Inc.* | 44 | 3,572 | ||||||
|
| |||||||
94,959 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Agilent Technologies, Inc. | 34 | 2,118 | ||||||
Illumina, Inc.* | 16 | 4,422 | ||||||
Thermo Fisher Scientific, Inc. | 41 | 8,498 | ||||||
|
| |||||||
15,038 | ||||||||
|
| |||||||
Machinery — 2.7% | ||||||||
Caterpillar, Inc. | 49 | 6,680 | ||||||
Cummins, Inc. | 59 | 7,797 | ||||||
Deere & Co. | 21 | 2,909 | ||||||
Ingersoll-Rand plc (a) | 192 | 17,214 | ||||||
PACCAR, Inc. (a) | 108 | 6,722 | ||||||
Parker-Hannifin Corp. (a) | 14 | 2,228 | ||||||
Snap-on, Inc. | 49 | 7,903 | ||||||
Stanley Black & Decker, Inc. | 114 | 15,185 | ||||||
|
| |||||||
66,638 | ||||||||
|
| |||||||
Media — 3.9% | ||||||||
Charter Communications, Inc., Class A* (a) | 66 | 19,221 | ||||||
Comcast Corp., Class A (a) | 875 | 28,704 | ||||||
Discovery, Inc., Class A* | 51 | 1,394 | ||||||
DISH Network Corp., Class A* | 137 | 4,614 | ||||||
Sirius XM Holdings, Inc. | 587 | 3,975 | ||||||
Twenty-First Century Fox, Inc., Class A | 278 | 13,826 | ||||||
Walt Disney Co. (The) | 212 | 22,270 | ||||||
|
| |||||||
94,004 | ||||||||
|
| |||||||
Metals & Mining — 0.3% | ||||||||
Alcoa Corp.* | 25 | 1,152 | ||||||
Freeport-McMoRan, Inc. | 206 | 3,552 | ||||||
Newmont Mining Corp. | 50 | 1,894 | ||||||
|
| |||||||
6,598 | ||||||||
|
| |||||||
Multiline Retail — 0.9% | ||||||||
Dollar General Corp. | 100 | 9,845 | ||||||
Dollar Tree, Inc.* | 136 | 11,526 | ||||||
|
| |||||||
21,371 | ||||||||
|
| |||||||
Multi-Utilities — 0.7% | ||||||||
Public Service Enterprise Group, Inc. | 220 | 11,918 | ||||||
WEC Energy Group, Inc. | 72 | 4,635 | ||||||
|
| |||||||
16,553 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.3% | ||||||||
Andeavor | 36 | 4,682 | ||||||
Chevron Corp. (a) | 228 | 28,775 | ||||||
Concho Resources, Inc.* | 60 | 8,301 | ||||||
Diamondback Energy, Inc. | 78 | 10,244 | ||||||
EOG Resources, Inc. (a) | 195 | 24,235 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Oil, Gas & Consumable Fuels — continued | ||||||||
EQT Corp. | 100 | 5,501 | ||||||
Exxon Mobil Corp. (a) | 220 | 18,240 | ||||||
Marathon Petroleum Corp. | 201 | 14,113 | ||||||
Occidental Petroleum Corp. | 173 | 14,455 | ||||||
ONEOK, Inc. | 69 | 4,787 | ||||||
Pioneer Natural Resources Co. (a) | 99 | 18,789 | ||||||
|
| |||||||
152,122 | ||||||||
|
| |||||||
Personal Products — 0.4% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 63 | 9,032 | ||||||
|
| |||||||
Pharmaceuticals — 4.6% | ||||||||
Allergan plc | 49 | 8,247 | ||||||
Bristol-Myers Squibb Co. | 188 | 10,408 | ||||||
Eli Lilly & Co. | 171 | 14,600 | ||||||
Johnson & Johnson (a) | 219 | 26,584 | ||||||
Merck & Co., Inc. (a) | 279 | 16,933 | ||||||
Mylan NV* | 85 | 3,090 | ||||||
Pfizer, Inc. (a) | 815 | 29,557 | ||||||
Zoetis, Inc. | 14 | 1,179 | ||||||
|
| |||||||
110,598 | ||||||||
|
| |||||||
Road & Rail — 1.9% | ||||||||
Norfolk Southern Corp. (a) | 127 | 19,200 | ||||||
Union Pacific Corp. | 196 | 27,829 | ||||||
|
| |||||||
47,029 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.3% |
| |||||||
Analog Devices, Inc. (a) | 238 | 22,824 | ||||||
Broadcom, Inc. | 82 | 19,898 | ||||||
Intel Corp. | 100 | 4,950 | ||||||
Microchip Technology, Inc. | 96 | 8,718 | ||||||
Micron Technology, Inc.* | 64 | 3,361 | ||||||
NVIDIA Corp. (a) | 97 | 22,971 | ||||||
Texas Instruments, Inc. (a) | 208 | 22,892 | ||||||
|
| |||||||
105,614 | ||||||||
|
| |||||||
Software — 6.8% | ||||||||
Activision Blizzard, Inc. | 18 | 1,358 | ||||||
Adobe Systems, Inc.* | 52 | 12,631 | ||||||
Intuit, Inc. | 47 | 9,659 | ||||||
Microsoft Corp. (a) | 1,016 | 100,219 | ||||||
Oracle Corp. (a) | 282 | 12,446 | ||||||
salesforce.com, Inc.* | 163 | 22,205 | ||||||
Workday, Inc., Class A* | 45 | 5,510 | ||||||
|
| |||||||
164,028 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 27 |
Table of Contents
JPMorgan Hedged Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Specialty Retail — 3.3% | ||||||||
AutoZone, Inc.* | 17 | 11,479 | ||||||
Best Buy Co., Inc. | 99 | 7,418 | ||||||
Home Depot, Inc. (The) | 157 | 30,542 | ||||||
Lowe’s Cos., Inc. | 87 | 8,278 | ||||||
O’Reilly Automotive, Inc.* | 36 | 9,758 | ||||||
Ross Stores, Inc. | 112 | 9,482 | ||||||
TJX Cos., Inc. (The) | 27 | 2,544 | ||||||
|
| |||||||
79,501 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.6% |
| |||||||
Apple, Inc. (a) | 502 | 92,897 | ||||||
Hewlett Packard Enterprise Co. | 637 | 9,301 | ||||||
HP, Inc. (a) | 439 | 9,950 | ||||||
|
| |||||||
112,148 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
NIKE, Inc., Class B | 189 | 15,075 | ||||||
PVH Corp. | 70 | 10,469 | ||||||
Ralph Lauren Corp. | 19 | 2,363 | ||||||
|
| |||||||
27,907 | ||||||||
|
| |||||||
Tobacco — 1.1% | ||||||||
Altria Group, Inc. | 97 | 5,512 | ||||||
Philip Morris International, Inc. | 252 | 20,355 | ||||||
|
| |||||||
25,867 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 99 | 4,757 | ||||||
United Rentals, Inc.* | 7 | 980 | ||||||
|
| |||||||
5,737 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Wireless Telecommunication Services — 0.3% |
| |||||||
T-Mobile US, Inc.* | 121 | 7,209 | ||||||
|
| |||||||
Total Common Stocks |
| 2,395,017 | ||||||
|
| |||||||
NO. OF CONTRACTS | ||||||||
Options Purchased — 1.4% | ||||||||
Put Options Purchased — 1.4% | ||||||||
Index Funds — 1.4% | ||||||||
S&P 500 Index | 8,900 | 34,221 | ||||||
|
| |||||||
Total Put Options Purchased | 34,221 | |||||||
|
| |||||||
Total Options Purchased | 34,221 | |||||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 3.8% | ||||||||
Investment Companies — 3.8% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (c) (d) | 92,778 | 92,778 | ||||||
|
| |||||||
Total Investments — 103.9% |
| 2,522,016 | ||||||
Liabilities in Excess of |
| (93,624 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 2,428,392 | |||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 140 | 09/2018 | USD | 19,051 | (3 | ) | ||||||||||||||
|
| |||||||||||||||||||
(3 | ) | |||||||||||||||||||
|
|
Written Call Options Contracts as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||||||
DESCRIPTION | COUNTERPARTY | NUMBER OF CONTRACTS | NOTIONAL AMOUNT | EXERCISE PRICE | EXPIRATION DATE | VALUE ($) | ||||||||||||||||||
S&P 500 Index | Exchange Traded | 4,450 | USD 1,209,675 | USD 2,805.00 | 9/28/2018 | (12,594 | ) | |||||||||||||||||
S&P 500 Index | Exchange Traded | 4,450 | USD 1,209,675 | USD 2,810.00 | 9/28/2018 | (11,703 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
(24,297 | ) | |||||||||||||||||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
Written Put Options Contracts as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||||||
DESCRIPTION | COUNTERPARTY | NUMBER OF CONTRACTS | NOTIONAL AMOUNT | EXERCISE PRICE | EXPIRATION DATE | VALUE ($) | ||||||||||||||||||
S&P 500 Index | Exchange Traded | 8,900 | USD 2,419,349 | USD 2,180.00 | 9/28/2018 | (6,631 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
Total Written Options Contracts (Premiums Received $31,964) |
| (30,928 | ) | |||||||||||||||||||||
|
|
Abbreviations
USD | United States Dollar | |
(a) | All or a portion of the security is segregated for options written. | |
(b) | Amount rounds to less than 0.05% of net assets. | |
(c) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(d) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 29 |
Table of Contents
JPMorgan Large Cap Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.1% | ||||||||
Aerospace & Defense — 3.2% |
| |||||||
Boeing Co. (The) | 904 | 303,402 | ||||||
Northrop Grumman Corp. | 491 | 151,019 | ||||||
|
| |||||||
454,421 | ||||||||
|
| |||||||
Airlines — 0.6% | ||||||||
Delta Air Lines, Inc. | 297 | 14,733 | ||||||
Southwest Airlines Co. | 1,423 | 72,379 | ||||||
|
| |||||||
87,112 | ||||||||
|
| |||||||
Automobiles — 0.6% | ||||||||
Tesla, Inc.* | 265 | 90,710 | ||||||
|
| |||||||
Banks — 0.8% | ||||||||
SVB Financial Group* | 376 | 108,516 | ||||||
|
| |||||||
Beverages — 2.0% | ||||||||
Constellation Brands, Inc., Class A | 754 | 165,071 | ||||||
Monster Beverage Corp.* | 2,110 | 120,929 | ||||||
|
| |||||||
286,000 | ||||||||
|
| |||||||
Biotechnology — 1.4% | ||||||||
Alnylam Pharmaceuticals, Inc.* | 427 | 42,055 | ||||||
Regeneron Pharmaceuticals, Inc.* | 17 | 5,900 | ||||||
Vertex Pharmaceuticals, Inc.* | 910 | 154,677 | ||||||
|
| |||||||
202,632 | ||||||||
|
| |||||||
Capital Markets — 6.8% | ||||||||
Charles Schwab Corp. (The) | 7,374 | 376,808 | ||||||
Intercontinental Exchange, Inc. | 2,542 | 186,988 | ||||||
Morgan Stanley | 2,315 | 109,707 | ||||||
S&P Global, Inc. | 1,504 | 306,650 | ||||||
|
| |||||||
980,153 | ||||||||
|
| |||||||
Chemicals — 1.2% | ||||||||
Ecolab, Inc. | 412 | 57,802 | ||||||
Sherwin-Williams Co. (The) | 287 | 116,850 | ||||||
|
| |||||||
174,652 | ||||||||
|
| |||||||
Construction Materials — 0.2% | ||||||||
Vulcan Materials Co. | 266 | 34,317 | ||||||
|
| |||||||
Electrical Equipment — 0.6% | ||||||||
Rockwell Automation, Inc. | 523 | 86,988 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.3% |
| |||||||
Amphenol Corp., Class A | 547 | 47,654 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 0.6% |
| |||||||
Equinix, Inc. | 211 | 90,728 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 8.9% | ||||||||
ABIOMED, Inc.* | 245 | 100,381 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Health Care Equipment & Supplies — continued | ||||||||
Becton Dickinson and Co. | 1,317 | 315,405 | ||||||
Boston Scientific Corp.* | 5,640 | 184,418 | ||||||
DexCom, Inc.* | 832 | 78,985 | ||||||
Intuitive Surgical, Inc.* | 1,251 | 598,806 | ||||||
|
| |||||||
1,277,995 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.5% | ||||||||
UnitedHealth Group, Inc. | 1,478 | 362,570 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.4% | ||||||||
Las Vegas Sands Corp. | 682 | 52,068 | ||||||
|
| |||||||
Industrial Conglomerates — 2.4% | ||||||||
Honeywell International, Inc. | 875 | 126,015 | ||||||
Roper Technologies, Inc. | 764 | 210,768 | ||||||
|
| |||||||
336,783 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 10.5% | ||||||||
Amazon.com, Inc.* | 508 | 863,677 | ||||||
Booking Holdings, Inc.* | 53 | 107,416 | ||||||
Netflix, Inc.* | 1,267 | 495,746 | ||||||
Wayfair, Inc., Class A* | 334 | 39,701 | ||||||
|
| |||||||
1,506,540 | ||||||||
|
| |||||||
Internet Software & Services — 10.2% | ||||||||
Alphabet, Inc., Class C* | 610 | 680,950 | ||||||
Facebook, Inc., Class A* | 1,805 | 350,714 | ||||||
GrubHub, Inc.* | 619 | 64,971 | ||||||
Match Group, Inc.* | 1,141 | 44,198 | ||||||
MercadoLibre, Inc. (Argentina) | 498 | 148,927 | ||||||
Shopify, Inc., Class A (Canada)* | 506 | 73,879 | ||||||
Twitter, Inc.* | 2,238 | 97,729 | ||||||
|
| |||||||
1,461,368 | ||||||||
|
| |||||||
IT Services — 12.0% | ||||||||
Mastercard, Inc., Class A | 3,843 | 755,148 | ||||||
PayPal Holdings, Inc.* | 4,481 | 373,154 | ||||||
Square, Inc., Class A* | 1,601 | 98,685 | ||||||
Visa, Inc., Class A | 2,578 | 341,443 | ||||||
Worldpay, Inc.* | 1,941 | 158,751 | ||||||
|
| |||||||
1,727,181 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.7% | ||||||||
Illumina, Inc.* | 178 | 49,762 | ||||||
Thermo Fisher Scientific, Inc. | 229 | 47,365 | ||||||
|
| |||||||
97,127 | ||||||||
|
| |||||||
Personal Products — 1.6% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 1,637 | 233,555 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
30 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Professional Services — 0.5% | ||||||||
CoStar Group, Inc.* | 174 | 71,715 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.7% |
| |||||||
Applied Materials, Inc. | 3,471 | 160,308 | ||||||
Broadcom, Inc. | 848 | 205,680 | ||||||
NVIDIA Corp. | 1,322 | 313,245 | ||||||
|
| |||||||
679,233 | ||||||||
|
| |||||||
Software — 15.5% | ||||||||
Activision Blizzard, Inc. | 4,668 | 356,285 | ||||||
Adobe Systems, Inc.* | 1,727 | 421,011 | ||||||
Atlassian Corp. plc, Class A* | 841 | 52,604 | ||||||
Electronic Arts, Inc.* | 2,055 | 289,778 | ||||||
Microsoft Corp. | 4,243 | 418,373 | ||||||
salesforce.com, Inc.* | 2,302 | 313,966 | ||||||
ServiceNow, Inc.* | 2,123 | 366,197 | ||||||
|
| |||||||
2,218,214 | ||||||||
|
| |||||||
Specialty Retail — 4.3% |
| |||||||
Home Depot, Inc. (The) | 2,353 | 459,059 | ||||||
Ross Stores, Inc. | 1,864 | 157,980 | ||||||
|
| |||||||
617,039 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.1% |
| |||||||
Apple, Inc. | 3,172 | 587,246 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.7% | ||||||||
Lululemon Athletica, Inc.* | 746 | 93,113 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.8% | ||||||||
United Rentals, Inc.* | 764 | 112,789 | ||||||
|
| |||||||
Total Common Stocks |
| 14,078,419 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 1.8% | ||||||||
Investment Companies — 1.8% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 255,806 | 255,806 | ||||||
|
| |||||||
Total Investments — 99.9% |
| 14,334,225 | ||||||
Other Assets Less Liabilities — 0.1% |
| 16,362 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 14,350,587 | |||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 31 |
Table of Contents
JPMorgan Large Cap Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.9% | ||||||||
Aerospace & Defense — 0.4% |
| |||||||
General Dynamics Corp. | 41 | 7,550 | ||||||
|
| |||||||
Airlines — 3.2% | ||||||||
Delta Air Lines, Inc. | 589 | 29,154 | ||||||
Southwest Airlines Co. | 326 | 16,597 | ||||||
United Continental Holdings, Inc.* | 94 | 6,579 | ||||||
|
| |||||||
52,330 | ||||||||
|
| |||||||
Auto Components — 1.0% | ||||||||
Adient plc | 111 | 5,436 | ||||||
American Axle & Manufacturing Holdings, Inc.* | 733 | 11,405 | ||||||
|
| |||||||
16,841 | ||||||||
|
| |||||||
Automobiles — 4.0% | ||||||||
Ford Motor Co. | 2,493 | 27,600 | ||||||
General Motors Co. | 988 | 38,923 | ||||||
|
| |||||||
66,523 | ||||||||
|
| |||||||
Banks — 14.5% | ||||||||
Bank of America Corp. | 2,324 | 65,516 | ||||||
Citigroup, Inc. | 717 | 47,950 | ||||||
Huntington Bancshares, Inc. | 787 | 11,622 | ||||||
IBERIABANK Corp. | 82 | 6,246 | ||||||
ING Groep NV, ADR (Netherlands) | 746 | 10,688 | ||||||
KeyCorp | 1,813 | 35,430 | ||||||
Signature Bank* | 80 | 10,282 | ||||||
SunTrust Banks, Inc. | 172 | 11,322 | ||||||
Wells Fargo & Co. | 741 | 41,080 | ||||||
|
| |||||||
240,136 | ||||||||
|
| |||||||
Biotechnology — 1.1% | ||||||||
Biogen, Inc.* | 28 | 8,214 | ||||||
Gilead Sciences, Inc. | 132 | 9,358 | ||||||
|
| |||||||
17,572 | ||||||||
|
| |||||||
Capital Markets — 5.0% | ||||||||
Ameriprise Financial, Inc. | 30 | 4,140 | ||||||
Bank of New York Mellon Corp. (The) | 215 | 11,568 | ||||||
Goldman Sachs Group, Inc. (The) | 27 | 6,022 | ||||||
Morgan Stanley | 710 | 33,673 | ||||||
State Street Corp. | 303 | 28,178 | ||||||
|
| |||||||
83,581 | ||||||||
|
| |||||||
Chemicals — 4.1% | ||||||||
Celanese Corp., Series A | 150 | 16,681 | ||||||
DowDuPont, Inc. | 294 | 19,350 | ||||||
Eastman Chemical Co. | 280 | 27,999 | ||||||
Mosaic Co. (The) | 149 | 4,166 | ||||||
|
| |||||||
68,196 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Consumer Finance — 1.0% | ||||||||
Capital One Financial Corp. | 177 | 16,230 | ||||||
|
| |||||||
Containers & Packaging — 0.5% | ||||||||
Crown Holdings, Inc.* | 189 | 8,446 | ||||||
|
| |||||||
Diversified Financial Services — 1.3% | ||||||||
Berkshire Hathaway, Inc., Class B* | 73 | 13,588 | ||||||
Voya Financial, Inc. | 156 | 7,313 | ||||||
|
| |||||||
20,901 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.0% (a) |
| |||||||
AT&T, Inc. | — | (b) | — | (b) | ||||
|
| |||||||
Electric Utilities — 0.8% | ||||||||
American Electric Power Co., Inc. | 94 | 6,482 | ||||||
Xcel Energy, Inc. | 141 | 6,450 | ||||||
|
| |||||||
12,932 | ||||||||
|
| |||||||
Electrical Equipment — 1.7% | ||||||||
Eaton Corp. plc | 387 | 28,887 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 1.2% |
| |||||||
Brixmor Property Group, Inc. | 323 | 5,625 | ||||||
Iron Mountain, Inc. | 141 | 4,919 | ||||||
Ventas, Inc. | 103 | 5,843 | ||||||
Vornado Realty Trust | 49 | 3,600 | ||||||
|
| |||||||
19,987 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.3% | ||||||||
Walgreens Boots Alliance, Inc. | 349 | 20,933 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 1.7% | ||||||||
Zimmer Biomet Holdings, Inc. | 254 | 28,306 | ||||||
|
| |||||||
Health Care Providers & Services — 6.3% | ||||||||
AmerisourceBergen Corp. | 325 | 27,696 | ||||||
Cigna Corp. | 311 | 52,872 | ||||||
CVS Health Corp. | 358 | 23,037 | ||||||
|
| |||||||
103,605 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.6% | ||||||||
Caesars Entertainment Corp.* | 1,007 | 10,778 | ||||||
|
| |||||||
Household Durables — 4.1% | ||||||||
Lennar Corp., Class A | 983 | 51,629 | ||||||
Lennar Corp., Class B | — | (b) | 9 | |||||
Mohawk Industries, Inc.* | 39 | 8,335 | ||||||
Taylor Morrison Home Corp., Class A* | 343 | 7,125 | ||||||
|
| |||||||
67,098 | ||||||||
|
| |||||||
Insurance — 7.4% | ||||||||
American International Group, Inc. | 432 | 22,889 | ||||||
Athene Holding Ltd., Class A* | 523 | 22,941 |
SEE NOTES TO FINANCIAL STATEMENTS.
32 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Insurance — continued | ||||||||
Hartford Financial Services Group, Inc. (The) | 209 | 10,681 | ||||||
Lincoln National Corp. | 351 | 21,850 | ||||||
MetLife, Inc. | 296 | 12,924 | ||||||
Principal Financial Group, Inc. | 194 | 10,246 | ||||||
Prudential Financial, Inc. | 216 | 20,198 | ||||||
|
| |||||||
121,729 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.7% | ||||||||
Expedia Group, Inc. | 91 | 10,985 | ||||||
|
| |||||||
Internet Software & Services — 0.4% |
| |||||||
Alphabet, Inc., Class A* | 5 | 6,098 | ||||||
|
| |||||||
Machinery — 4.3% | ||||||||
Ingersoll-Rand plc | 247 | 22,163 | ||||||
PACCAR, Inc. | 322 | 19,976 | ||||||
Snap-on, Inc. | 59 | 9,467 | ||||||
Stanley Black & Decker, Inc. | 151 | 20,001 | ||||||
|
| |||||||
71,607 | ||||||||
|
| |||||||
Media — 4.3% | ||||||||
Altice USA, Inc., Class A | 347 | 5,913 | ||||||
Charter Communications, Inc., Class A* | 92 | 26,887 | ||||||
Comcast Corp., Class A | 805 | 26,402 | ||||||
DISH Network Corp., Class A* | 138 | 4,653 | ||||||
Walt Disney Co. (The) | 67 | 6,970 | ||||||
|
| |||||||
70,825 | ||||||||
|
| |||||||
Metals & Mining — 1.0% | ||||||||
AK Steel Holding Corp.* | 2,004 | 8,699 | ||||||
United States Steel Corp. | 230 | 7,978 | ||||||
|
| |||||||
16,677 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 13.7% | ||||||||
Chevron Corp. | 215 | 27,132 | ||||||
Concho Resources, Inc.* | 178 | 24,585 | ||||||
Diamondback Energy, Inc. | 264 | 34,708 | ||||||
EOG Resources, Inc. | 221 | 27,474 | ||||||
EQT Corp. | 352 | 19,401 | ||||||
Marathon Petroleum Corp. | 111 | 7,816 | ||||||
Occidental Petroleum Corp. | 454 | 37,982 | ||||||
Parsley Energy, Inc., Class A* | 346 | 10,462 | ||||||
Pioneer Natural Resources Co. | 195 | 36,883 | ||||||
|
| |||||||
226,443 | ||||||||
|
| |||||||
Pharmaceuticals — 4.8% | ||||||||
Allergan plc | 71 | 11,771 | ||||||
Johnson & Johnson | 138 | 16,684 | ||||||
Merck & Co., Inc. | 355 | 21,524 | ||||||
Pfizer, Inc. | 809 | 29,336 | ||||||
|
| |||||||
79,315 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Semiconductors & Semiconductor Equipment — 4.7% |
| |||||||
Analog Devices, Inc. | 192 | 18,445 | ||||||
Broadcom, Inc. | 143 | 34,770 | ||||||
Microchip Technology, Inc. | 191 | 17,408 | ||||||
Teradyne, Inc. | 137 | 5,231 | ||||||
Universal Display Corp. | 31 | 2,649 | ||||||
|
| |||||||
78,503 | ||||||||
|
| |||||||
Software — 2.1% | ||||||||
Microsoft Corp. | 67 | 6,577 | ||||||
Oracle Corp. | 628 | 27,652 | ||||||
|
| |||||||
34,229 | ||||||||
|
| |||||||
Specialty Retail — 0.4% | ||||||||
AutoZone, Inc.* | 10 | 6,642 | ||||||
|
| |||||||
Tobacco — 1.3% | ||||||||
Philip Morris International, Inc. | 260 | 21,017 | ||||||
|
| |||||||
Total Common Stocks |
| 1,634,902 | ||||||
|
| |||||||
NO. OF (000) | ||||||||
WARRANTS — 0.0% (a) | ||||||||
Consumer Finance — 0.0% (a) | ||||||||
Emergent Capital, Inc. | ||||||||
expiring 10/1/2019, price 10.75*‡ | 36 | — | (b) | |||||
|
| |||||||
SHARES (000) | ||||||||
Short-term Investments — 5.5% | ||||||||
Investment Companies — 5.5% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (c) (d) | 90,740 | 90,740 | ||||||
|
| |||||||
Total Investments — 104.4% |
| 1,725,642 | ||||||
Liabilities in Excess of |
| (73,290 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 1,652,352 | |||||
|
|
Percentages indicated are based on net assets.
Abbreviations
ADR | American Depositary Receipt | |
(a) | Amount rounds to less than 0.05% of net assets. | |
(b) | Amount rounds to less than one thousand. | |
(c) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(d) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 33 |
Table of Contents
JPMorgan U.S. Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.9% |
| |||||||
Aerospace & Defense — 3.7% |
| |||||||
Boeing Co. (The) | 546 | 183,261 | ||||||
General Dynamics Corp. | 969 | 180,608 | ||||||
L3 Technologies, Inc. | 235 | 45,152 | ||||||
Northrop Grumman Corp. | 461 | 141,713 | ||||||
|
| |||||||
550,734 | ||||||||
|
| |||||||
Airlines — 0.2% | ||||||||
Delta Air Lines, Inc. | 666 | 32,971 | ||||||
|
| |||||||
Auto Components — 0.2% | ||||||||
Aptiv plc | 146 | 13,373 | ||||||
Delphi Technologies plc | 310 | 14,074 | ||||||
|
| |||||||
27,447 | ||||||||
|
| |||||||
Automobiles — 0.1% | ||||||||
Ford Motor Co. | 2,124 | 23,517 | ||||||
|
| |||||||
Banks — 6.7% | ||||||||
Bank of America Corp. | 14,166 | 399,336 | ||||||
Citigroup, Inc. | 4,244 | 283,983 | ||||||
East West Bancorp, Inc. | 57 | 3,690 | ||||||
First Republic Bank | 387 | 37,453 | ||||||
Huntington Bancshares, Inc. | 4,033 | 59,528 | ||||||
KeyCorp | 548 | 10,708 | ||||||
SunTrust Banks, Inc. | 964 | 63,661 | ||||||
SVB Financial Group* | 81 | 23,320 | ||||||
Wells Fargo & Co. | 1,406 | 77,958 | ||||||
Zions Bancorp | 894 | 47,126 | ||||||
|
| |||||||
1,006,763 | ||||||||
|
| |||||||
Beverages — 3.3% | ||||||||
Coca-Cola Co. (The) | 5,322 | 233,410 | ||||||
Molson Coors Brewing Co., Class B | 353 | 24,036 | ||||||
PepsiCo, Inc. | 2,145 | 233,498 | ||||||
|
| |||||||
490,944 | ||||||||
|
| |||||||
Biotechnology — 1.8% | ||||||||
Alexion Pharmaceuticals, Inc.* | 25 | 3,134 | ||||||
Biogen, Inc.* | 377 | 109,343 | ||||||
Celgene Corp.* | 45 | 3,583 | ||||||
Gilead Sciences, Inc. | 460 | 32,558 | ||||||
Incyte Corp.* | 325 | 21,804 | ||||||
Vertex Pharmaceuticals, Inc.* | 617 | 104,834 | ||||||
|
| |||||||
275,256 | ||||||||
|
| |||||||
Building Products — 0.3% | ||||||||
Allegion plc | 341 | 26,348 | ||||||
Masco Corp. | 394 | 14,733 | ||||||
|
| |||||||
41,081 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Capital Markets — 2.6% | ||||||||
Bank of New York Mellon Corp. (The) | 1,776 | 95,794 | ||||||
Charles Schwab Corp. (The) | 463 | 23,650 | ||||||
Goldman Sachs Group, Inc. (The) | 41 | 9,137 | ||||||
Intercontinental Exchange, Inc. | 446 | 32,811 | ||||||
Morgan Stanley | 4,863 | 230,510 | ||||||
S&P Global, Inc. | 29 | 5,948 | ||||||
|
| |||||||
397,850 | ||||||||
|
| |||||||
Chemicals — 0.6% | ||||||||
DowDuPont, Inc. | 1,140 | 75,151 | ||||||
Eastman Chemical Co. | 129 | 12,937 | ||||||
|
| |||||||
88,088 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.1% | ||||||||
Waste Management, Inc. | 107 | 8,701 | ||||||
|
| |||||||
Consumer Finance — 0.3% | ||||||||
Capital One Financial Corp. | 511 | 46,952 | ||||||
|
| |||||||
Containers & Packaging — 1.3% | ||||||||
Crown Holdings, Inc.* | 2,114 | 94,617 | ||||||
WestRock Co. | 1,708 | 97,391 | ||||||
|
| |||||||
192,008 | ||||||||
|
| |||||||
Diversified Financial Services — 0.2% | ||||||||
Berkshire Hathaway, Inc., Class B* | 62 | 11,554 | ||||||
Voya Financial, Inc. | 449 | 21,108 | ||||||
|
| |||||||
32,662 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 1.0% |
| |||||||
Verizon Communications, Inc. | 2,918 | 146,795 | ||||||
|
| |||||||
Electric Utilities — 2.2% | ||||||||
American Electric Power Co., Inc. | 270 | 18,672 | ||||||
NextEra Energy, Inc. | 1,105 | 184,605 | ||||||
Xcel Energy, Inc. | 2,793 | 127,596 | ||||||
|
| |||||||
330,873 | ||||||||
|
| |||||||
Electrical Equipment — 1.2% | ||||||||
Eaton Corp. plc | 2,392 | 178,742 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 0.9% |
| |||||||
AvalonBay Communities, Inc. | 356 | 61,134 | ||||||
Ventas, Inc. | 955 | 54,359 | ||||||
Vornado Realty Trust | 369 | 27,268 | ||||||
|
| |||||||
142,761 | ||||||||
|
| |||||||
Food Products — 1.3% | ||||||||
Mondelez International, Inc., Class A | 4,672 | 191,557 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
34 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Health Care Equipment & Supplies — 2.4% | ||||||||
Becton Dickinson and Co. | 121 | 29,054 | ||||||
Boston Scientific Corp.* | 3,856 | 126,092 | ||||||
Danaher Corp. | 88 | 8,671 | ||||||
Medtronic plc | 1,769 | 151,455 | ||||||
Zimmer Biomet Holdings, Inc. | 389 | 43,387 | ||||||
|
| |||||||
358,659 | ||||||||
|
| |||||||
Health Care Providers & Services — 4.8% | ||||||||
Aetna, Inc. | 481 | 88,283 | ||||||
AmerisourceBergen Corp. | 185 | 15,806 | ||||||
Cigna Corp. | 255 | 43,403 | ||||||
CVS Health Corp. | 2,611 | 168,021 | ||||||
UnitedHealth Group, Inc. | 1,640 | 402,383 | ||||||
|
| |||||||
717,896 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.2% | ||||||||
Hilton Worldwide Holdings, Inc. | 81 | 6,377 | ||||||
Yum! Brands, Inc. | 244 | 19,109 | ||||||
|
| |||||||
25,486 | ||||||||
|
| |||||||
Household Durables — 1.0% | ||||||||
DR Horton, Inc. | 1,497 | 61,360 | ||||||
Lennar Corp., Class A | 1,606 | 84,311 | ||||||
|
| |||||||
145,671 | ||||||||
|
| |||||||
Industrial Conglomerates — 0.4% |
| |||||||
Honeywell International, Inc. | 466 | 67,182 | ||||||
|
| |||||||
Insurance — 3.5% | ||||||||
American International Group, Inc. | 3,280 | 173,906 | ||||||
Brighthouse Financial, Inc.* | 482 | 19,304 | ||||||
Hartford Financial Services Group, Inc. (The) | 2,696 | 137,852 | ||||||
Lincoln National Corp. | 944 | 58,765 | ||||||
Principal Financial Group, Inc. | 1,193 | 63,165 | ||||||
Prudential Financial, Inc. | 779 | 72,818 | ||||||
|
| |||||||
525,810 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.7% | ||||||||
Amazon.com, Inc.* | 298 | 507,057 | ||||||
Expedia Group, Inc. | 161 | 19,322 | ||||||
Netflix, Inc.* | 100 | 39,179 | ||||||
|
| |||||||
565,558 | ||||||||
|
| |||||||
Internet Software & Services — 6.2% | ||||||||
Alphabet, Inc., Class A* | 487 | 550,292 | ||||||
Alphabet, Inc., Class C* | 163 | 181,503 | ||||||
Facebook, Inc., Class A* | 1,030 | 200,097 | ||||||
|
| |||||||
931,892 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
IT Services — 4.7% | ||||||||
Accenture plc, Class A | 1,078 | 176,286 | ||||||
Alliance Data Systems Corp. | 319 | 74,432 | ||||||
Fidelity National Information Services, Inc. | 123 | 13,033 | ||||||
Mastercard, Inc., Class A | 100 | 19,566 | ||||||
PayPal Holdings, Inc.* | 1,050 | 87,433 | ||||||
Visa, Inc., Class A | 2,420 | 320,466 | ||||||
WEX, Inc.* | 52 | 9,952 | ||||||
Worldpay, Inc.* | 58 | 4,764 | ||||||
|
| |||||||
705,932 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.4% | ||||||||
Agilent Technologies, Inc. | — | (a) | 6 | |||||
Thermo Fisher Scientific, Inc. | 288 | 59,667 | ||||||
|
| |||||||
59,673 | ||||||||
|
| |||||||
Machinery — 1.6% | ||||||||
Caterpillar, Inc. | 1,264 | 171,499 | ||||||
Deere & Co. | 121 | 16,925 | ||||||
Parker-Hannifin Corp. | 61 | 9,471 | ||||||
Stanley Black & Decker, Inc. | 346 | 45,999 | ||||||
|
| |||||||
243,894 | ||||||||
|
| |||||||
Media — 3.8% | ||||||||
Charter Communications, Inc., Class A* | 531 | 155,796 | ||||||
Comcast Corp., Class A | 1,018 | 33,385 | ||||||
Discovery, Inc., Class A* | 1,493 | 41,071 | ||||||
DISH Network Corp., Class A* | 1,603 | 53,862 | ||||||
Twenty-First Century Fox, Inc., Class A | 125 | 6,221 | ||||||
Walt Disney Co. (The) | 2,698 | 282,748 | ||||||
|
| |||||||
573,083 | ||||||||
|
| |||||||
Multiline Retail — 0.6% | ||||||||
Dollar Tree, Inc.* | 1,118 | 95,052 | ||||||
|
| |||||||
Multi-Utilities — 0.5% | ||||||||
Public Service Enterprise Group, Inc. | 1,330 | 72,013 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.8% | ||||||||
Andeavor | 72 | 9,459 | ||||||
Chevron Corp. | 64 | 8,065 | ||||||
Diamondback Energy, Inc. | 969 | 127,490 | ||||||
EOG Resources, Inc. | 2,063 | 256,659 | ||||||
EQT Corp. | 467 | 25,776 | ||||||
Marathon Petroleum Corp. | 1,361 | 95,472 | ||||||
Occidental Petroleum Corp. | 2,415 | 202,050 | ||||||
Parsley Energy, Inc., Class A* | 2,559 | 77,475 | ||||||
Pioneer Natural Resources Co. | 1,198 | 226,785 | ||||||
|
| |||||||
1,029,231 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 35 |
Table of Contents
JPMorgan U.S. Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Pharmaceuticals — 5.7% | ||||||||
Allergan plc | 58 | 9,614 | ||||||
Bristol-Myers Squibb Co. | 445 | 24,605 | ||||||
Eli Lilly & Co. | 520 | 44,358 | ||||||
Johnson & Johnson | 2,481 | 301,015 | ||||||
Merck & Co., Inc. | 1,896 | 115,104 | ||||||
Mylan NV* | 108 | 3,890 | ||||||
Nektar Therapeutics* | 419 | 20,475 | ||||||
Pfizer, Inc. | 9,273 | 336,441 | ||||||
|
| |||||||
855,502 | ||||||||
|
| |||||||
Road & Rail — 2.8% | ||||||||
Norfolk Southern Corp. | 1,777 | 268,091 | ||||||
Union Pacific Corp. | 1,038 | 147,049 | ||||||
|
| |||||||
415,140 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 6.8% |
| |||||||
Analog Devices, Inc. | 1,760 | 168,834 | ||||||
Broadcom, Inc. | 969 | 235,040 | ||||||
Microchip Technology, Inc. | 1,161 | 105,619 | ||||||
NVIDIA Corp. | 946 | 224,200 | ||||||
Texas Instruments, Inc. | 2,413 | 266,002 | ||||||
Universal Display Corp. | 254 | 21,876 | ||||||
|
| |||||||
1,021,571 | ||||||||
|
| |||||||
Software — 6.3% | ||||||||
Adobe Systems, Inc.* | 37 | 8,953 | ||||||
Electronic Arts, Inc.* | 58 | 8,204 | ||||||
Intuit, Inc. | 20 | 4,179 | ||||||
Microsoft Corp. | 6,463 | 637,341 | ||||||
Oracle Corp. | 1,020 | 44,954 | ||||||
salesforce.com, Inc.* | 1,451 | 197,901 | ||||||
Workday, Inc., Class A* | 352 | 42,627 | ||||||
|
| |||||||
944,159 | ||||||||
|
| |||||||
Specialty Retail — 3.3% | ||||||||
AutoZone, Inc.* | 234 | 157,014 | ||||||
Home Depot, Inc. (The) | 689 | 134,504 | ||||||
Lowe’s Cos., Inc. | 41 | 3,963 | ||||||
O’Reilly Automotive, Inc.* | 478 | 130,652 | ||||||
Ross Stores, Inc. | 852 | 72,168 | ||||||
|
| |||||||
498,301 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 3.3% |
| |||||||
Apple, Inc. | 2,575 | 476,749 | ||||||
Hewlett Packard Enterprise Co. | 1,491 | 21,778 | ||||||
|
| |||||||
498,527 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Textiles, Apparel & Luxury Goods — 0.9% | ||||||||
NIKE, Inc., Class B | 1,657 | 132,041 | ||||||
PVH Corp. | 51 | 7,590 | ||||||
|
| |||||||
139,631 | ||||||||
|
| |||||||
Tobacco — 0.4% | ||||||||
Altria Group, Inc. | 244 | 13,875 | ||||||
Philip Morris International, Inc. | 555 | 44,833 | ||||||
|
| |||||||
58,708 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.5% | ||||||||
Fastenal Co. | 1,714 | 82,501 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.3% |
| |||||||
T-Mobile US, Inc.* | 896 | 53,533 | ||||||
|
| |||||||
Total Common Stocks |
| 14,890,307 | ||||||
|
| |||||||
NO. OF WARRANTS (000) | ||||||||
Warrants — 0.0% (b) | ||||||||
Consumer Finance — 0.0% (b) | ||||||||
Emergent Capital, Inc. | 24 | — | (a) | |||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 1.0% | ||||||||
Investment Companies — 1.0% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (c) (d) | 152,987 | 152,987 | ||||||
|
| |||||||
Total Investments — 99.9% |
| 15,043,294 | ||||||
Other Assets Less Liabilities — 0.1% |
| 14,803 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 15,058,097 | |||||
|
|
Percentages indicated are based on net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
36 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 534 | 09/2018 | USD | 72,667 | (1,246 | ) | ||||||||||||||
|
| |||||||||||||||||||
(1,246 | ) | |||||||||||||||||||
|
|
Abbreviations
USD | United States Dollar | |
(a) | Amount rounds to less than one thousand. | |
(b) | Amount rounds to less than 0.05% of net assets. | |
(c) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(d) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 37 |
Table of Contents
JPMorgan U.S. Research Enhanced Equity Fund
(formerly known as JPMorgan Disciplined Equity Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.9% |
| |||||||
Aerospace & Defense — 2.1% |
| |||||||
Boeing Co. (The) | 64 | 21,540 | ||||||
General Dynamics Corp. | 205 | 38,289 | ||||||
Harris Corp. | 32 | 4,683 | ||||||
Northrop Grumman Corp. | 121 | 37,232 | ||||||
United Technologies Corp. | 318 | 39,759 | ||||||
|
| |||||||
141,503 | ||||||||
|
| |||||||
Airlines — 0.5% | ||||||||
Delta Air Lines, Inc. | 607 | 30,066 | ||||||
United Continental Holdings, Inc.* | 71 | 4,944 | ||||||
|
| |||||||
35,010 | ||||||||
|
| |||||||
Auto Components — 0.3% | ||||||||
Aptiv plc | 144 | 13,177 | ||||||
Delphi Technologies plc | 163 | 7,387 | ||||||
|
| |||||||
20,564 | ||||||||
|
| |||||||
Automobiles — 0.5% | ||||||||
Ford Motor Co. | 2,998 | 33,185 | ||||||
|
| |||||||
Banks — 5.7% | ||||||||
Bank of America Corp. | 4,581 | 129,133 | ||||||
BB&T Corp. | 362 | 18,269 | ||||||
Citigroup, Inc. | 1,352 | 90,496 | ||||||
Fifth Third Bancorp | 152 | 4,362 | ||||||
Huntington Bancshares, Inc. | 903 | 13,327 | ||||||
KeyCorp | 1,000 | 19,548 | ||||||
SunTrust Banks, Inc. | 354 | 23,358 | ||||||
SVB Financial Group* | 15 | 4,274 | ||||||
Wells Fargo & Co. | 1,506 | 83,470 | ||||||
|
| |||||||
386,237 | ||||||||
|
| |||||||
Beverages — 2.7% | ||||||||
Coca-Cola Co. (The) | 981 | 43,031 | ||||||
Constellation Brands, Inc., Class A | 77 | 16,875 | ||||||
Molson Coors Brewing Co., Class B | 640 | 43,519 | ||||||
PepsiCo, Inc. | 714 | 77,722 | ||||||
|
| |||||||
181,147 | ||||||||
|
| |||||||
Biotechnology — 2.4% | ||||||||
AbbVie, Inc. | 310 | 28,740 | ||||||
Alexion Pharmaceuticals, Inc.* | 64 | 7,995 | ||||||
Amgen, Inc. | 107 | 19,696 | ||||||
Biogen, Inc.* | 98 | 28,356 | ||||||
Celgene Corp.* | 225 | 17,854 | ||||||
Gilead Sciences, Inc. | 499 | 35,328 | ||||||
Vertex Pharmaceuticals, Inc.* | 136 | 23,132 | ||||||
|
| |||||||
161,101 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Building Products — 0.7% | ||||||||
Allegion plc | 252 | 19,510 | ||||||
Masco Corp. | 676 | 25,277 | ||||||
|
| |||||||
44,787 | ||||||||
|
| |||||||
Capital Markets — 3.2% | ||||||||
Bank of New York Mellon Corp. (The) | 402 | 21,701 | ||||||
BlackRock, Inc. | 17 | 8,534 | ||||||
Charles Schwab Corp. (The) | 615 | 31,401 | ||||||
CME Group, Inc. | 41 | 6,737 | ||||||
Intercontinental Exchange, Inc. | 354 | 26,015 | ||||||
Morgan Stanley | 1,281 | 60,724 | ||||||
State Street Corp. | 554 | 51,581 | ||||||
T. Rowe Price Group, Inc. | 82 | 9,473 | ||||||
|
| |||||||
216,166 | ||||||||
|
| |||||||
Chemicals — 2.0% | ||||||||
Celanese Corp., Series A | 143 | 15,904 | ||||||
DowDuPont, Inc. | 1,267 | 83,508 | ||||||
Eastman Chemical Co. | 342 | 34,196 | ||||||
|
| |||||||
133,608 | ||||||||
|
| |||||||
Communications Equipment — 0.3% | ||||||||
Cisco Systems, Inc. | 416 | 17,887 | ||||||
Motorola Solutions, Inc. | 30 | 3,468 | ||||||
|
| |||||||
21,355 | ||||||||
|
| |||||||
Consumer Finance — 0.8% | ||||||||
American Express Co. | 76 | 7,477 | ||||||
Capital One Financial Corp. | 480 | 44,140 | ||||||
|
| |||||||
51,617 | ||||||||
|
| |||||||
Containers & Packaging — 0.4% | ||||||||
Crown Holdings, Inc.* | 218 | 9,766 | ||||||
WestRock Co. | 307 | 17,494 | ||||||
|
| |||||||
27,260 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.0% (a) | ||||||||
H&R Block, Inc. | 119 | 2,713 | ||||||
|
| |||||||
Diversified Financial Services — 1.5% | ||||||||
Berkshire Hathaway, Inc., Class B* | 515 | 96,031 | ||||||
Voya Financial, Inc. | 70 | 3,276 | ||||||
|
| |||||||
99,307 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.8% | ||||||||
AT&T, Inc. | 802 | 25,742 | ||||||
Verizon Communications, Inc. | 533 | 26,790 | ||||||
|
| |||||||
52,532 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
38 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Electric Utilities — 2.2% | ||||||||
American Electric Power Co., Inc. | 281 | 19,473 | ||||||
Exelon Corp. | 768 | 32,717 | ||||||
NextEra Energy, Inc. | 393 | 65,659 | ||||||
PG&E Corp. | 144 | 6,112 | ||||||
Xcel Energy, Inc. | 568 | 25,946 | ||||||
|
| |||||||
149,907 | ||||||||
|
| |||||||
Electrical Equipment — 0.6% | ||||||||
Eaton Corp. plc | 538 | 40,218 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 2.2% |
| |||||||
AvalonBay Communities, Inc. | 163 | 28,070 | ||||||
Brixmor Property Group, Inc. | 163 | 2,837 | ||||||
Digital Realty Trust, Inc. | 45 | 5,066 | ||||||
Equinix, Inc. | 26 | 11,134 | ||||||
Equity Residential | 373 | 23,763 | ||||||
Federal Realty Investment Trust | 89 | 11,225 | ||||||
Prologis, Inc. | 104 | 6,845 | ||||||
Public Storage | 134 | 30,467 | ||||||
Ventas, Inc. | 158 | 9,004 | ||||||
Vornado Realty Trust | 274 | 20,239 | ||||||
|
| |||||||
148,650 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.4% |
| |||||||
Walgreens Boots Alliance, Inc. | 465 | 27,907 | ||||||
|
| |||||||
Food Products — 0.8% | ||||||||
Mondelez International, Inc., Class A | 1,405 | 57,593 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 3.2% | ||||||||
Abbott Laboratories | 571 | 34,850 | ||||||
Becton Dickinson and Co. | 168 | 40,270 | ||||||
Boston Scientific Corp.* | 1,373 | 44,900 | ||||||
Danaher Corp. | 174 | 17,180 | ||||||
Intuitive Surgical, Inc.* | 24 | 11,388 | ||||||
Medtronic plc | 387 | 33,123 | ||||||
Zimmer Biomet Holdings, Inc. | 277 | 30,913 | ||||||
|
| |||||||
212,624 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.9% | ||||||||
AmerisourceBergen Corp. | 148 | 12,628 | ||||||
Cigna Corp. | 245 | 41,655 | ||||||
CVS Health Corp. | 291 | 18,739 | ||||||
UnitedHealth Group, Inc. | 510 | 125,148 | ||||||
|
| |||||||
198,170 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 0.7% | ||||||||
Hilton Worldwide Holdings, Inc. | 298 | 23,606 | ||||||
Royal Caribbean Cruises Ltd. | 67 | 6,910 | ||||||
Yum! Brands, Inc. | 258 | 20,173 | ||||||
|
| |||||||
50,689 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Household Durables — 0.3% | ||||||||
Lennar Corp., Class A | 362 | 19,016 | ||||||
Toll Brothers, Inc. | 103 | 3,791 | ||||||
|
| |||||||
22,807 | ||||||||
|
| |||||||
Household Products — 0.6% | ||||||||
Colgate-Palmolive Co. | 251 | 16,280 | ||||||
Procter & Gamble Co. (The) | 356 | 27,751 | ||||||
|
| |||||||
44,031 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.1% | ||||||||
Honeywell International, Inc. | 510 | 73,451 | ||||||
|
| |||||||
Insurance — 2.4% | ||||||||
American International Group, Inc. | 919 | 48,725 | ||||||
Chubb Ltd. | 32 | 4,090 | ||||||
Everest Re Group Ltd. | 27 | 6,108 | ||||||
Hartford Financial Services Group, Inc. (The) | 521 | 26,618 | ||||||
Lincoln National Corp. | 317 | 19,740 | ||||||
Marsh & McLennan Cos., Inc. | 108 | 8,869 | ||||||
MetLife, Inc. | 685 | 29,862 | ||||||
Principal Financial Group, Inc. | 78 | 4,135 | ||||||
Prudential Financial, Inc. | 139 | 12,951 | ||||||
|
| |||||||
161,098 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.7% | ||||||||
Amazon.com, Inc.* | 123 | 209,245 | ||||||
Booking Holdings, Inc.* | 7 | 13,784 | ||||||
Expedia Group, Inc. | 65 | 7,837 | ||||||
Netflix, Inc.* | 49 | 19,063 | ||||||
|
| |||||||
249,929 | ||||||||
|
| |||||||
Internet Software & Services — 5.7% | ||||||||
Alphabet, Inc., Class A* | 107 | 120,677 | ||||||
Alphabet, Inc., Class C* | 103 | 115,358 | ||||||
Facebook, Inc., Class A* | 757 | 147,042 | ||||||
|
| |||||||
383,077 | ||||||||
|
| |||||||
IT Services — 4.0% | ||||||||
Accenture plc, Class A | 296 | 48,455 | ||||||
Alliance Data Systems Corp. | 42 | 9,748 | ||||||
Fidelity National Information Services, Inc. | 341 | 36,114 | ||||||
International Business Machines Corp. | 133 | 18,552 | ||||||
Mastercard, Inc., Class A | 131 | 25,764 | ||||||
PayPal Holdings, Inc.* | 152 | 12,648 | ||||||
Visa, Inc., Class A | 792 | 104,874 | ||||||
Worldpay, Inc.* | 129 | 10,579 | ||||||
|
| |||||||
266,734 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 39 |
Table of Contents
JPMorgan U.S. Research Enhanced Equity Fund
(formerly known as JPMorgan Disciplined Equity Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Life Sciences Tools & Services — 0.6% | ||||||||
Agilent Technologies, Inc. | 95 | 5,887 | ||||||
Illumina, Inc.* | 44 | 12,261 | ||||||
Thermo Fisher Scientific, Inc. | 114 | 23,635 | ||||||
|
| |||||||
41,783 | ||||||||
|
| |||||||
Machinery — 2.7% | ||||||||
Caterpillar, Inc. | 137 | 18,519 | ||||||
Cummins, Inc. | 163 | 21,639 | ||||||
Deere & Co. | 58 | 8,081 | ||||||
Ingersoll-Rand plc | 533 | 47,826 | ||||||
PACCAR, Inc. | 302 | 18,681 | ||||||
Parker-Hannifin Corp. | 40 | 6,187 | ||||||
Snap-on, Inc. | 137 | 21,938 | ||||||
Stanley Black & Decker, Inc. | 318 | 42,194 | ||||||
|
| |||||||
185,065 | ||||||||
|
| |||||||
Media — 3.9% | ||||||||
Charter Communications, Inc., Class A* | 182 | 53,393 | ||||||
Comcast Corp., Class A | 2,431 | 79,758 | ||||||
Discovery, Inc., Class A* | 141 | 3,875 | ||||||
DISH Network Corp., Class A* | 381 | 12,809 | ||||||
Sirius XM Holdings, Inc. | 1,631 | 11,045 | ||||||
Twenty-First Century Fox, Inc., Class A | 773 | 38,425 | ||||||
Walt Disney Co. (The) | 591 | 61,901 | ||||||
|
| |||||||
261,206 | ||||||||
|
| |||||||
Metals & Mining — 0.3% | ||||||||
Alcoa Corp.* | 68 | 3,202 | ||||||
Freeport-McMoRan, Inc. | 572 | 9,873 | ||||||
Newmont Mining Corp. | 140 | 5,264 | ||||||
|
| |||||||
18,339 | ||||||||
|
| |||||||
Multiline Retail — 0.9% | ||||||||
Dollar General Corp. | 277 | 27,352 | ||||||
Dollar Tree, Inc.* | 377 | 32,028 | ||||||
|
| |||||||
59,380 | ||||||||
|
| |||||||
Multi-Utilities — 0.7% | ||||||||
Public Service Enterprise Group, Inc. | 612 | 33,107 | ||||||
WEC Energy Group, Inc. | 206 | 13,311 | ||||||
|
| |||||||
46,418 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.3% | ||||||||
Andeavor | 99 | 13,013 | ||||||
Chevron Corp. | 632 | 79,954 | ||||||
Concho Resources, Inc.* | 167 | 23,077 | ||||||
Diamondback Energy, Inc. | 216 | 28,432 | ||||||
EOG Resources, Inc. | 541 | 67,317 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Oil, Gas & Consumable Fuels — continued | ||||||||
EQT Corp. | 277 | 15,279 | ||||||
Exxon Mobil Corp. | 613 | 50,681 | ||||||
Marathon Petroleum Corp. | 559 | 39,198 | ||||||
Occidental Petroleum Corp. | 480 | 40,150 | ||||||
ONEOK, Inc. | 197 | 13,745 | ||||||
Pioneer Natural Resources Co. | 276 | 52,230 | ||||||
|
| |||||||
423,076 | ||||||||
|
| |||||||
Personal Products — 0.4% | ||||||||
Estee Lauder Cos., Inc. (The), Class A | 177 | 25,213 | ||||||
|
| |||||||
Pharmaceuticals — 4.6% | ||||||||
Allergan plc | 137 | 22,907 | ||||||
Bristol-Myers Squibb Co. | 522 | 28,910 | ||||||
Eli Lilly & Co. | 475 | 40,566 | ||||||
Johnson & Johnson | 609 | 73,896 | ||||||
Merck & Co., Inc. | 775 | 47,049 | ||||||
Mylan NV* | 238 | 8,583 | ||||||
Pfizer, Inc. | 2,264 | 82,123 | ||||||
Zoetis, Inc. | 39 | 3,288 | ||||||
|
| |||||||
307,322 | ||||||||
|
| |||||||
Road & Rail — 1.9% | ||||||||
Norfolk Southern Corp. | 354 | 53,347 | ||||||
Union Pacific Corp. | 546 | 77,315 | ||||||
|
| |||||||
130,662 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.4% |
| |||||||
Analog Devices, Inc. | 662 | 63,518 | ||||||
Broadcom, Inc. | 228 | 55,273 | ||||||
Intel Corp. | 277 | 13,750 | ||||||
Microchip Technology, Inc. | 267 | 24,238 | ||||||
Micron Technology, Inc.* | 178 | 9,350 | ||||||
NVIDIA Corp. | 270 | 63,845 | ||||||
Texas Instruments, Inc. | 577 | 63,636 | ||||||
|
| |||||||
293,610 | ||||||||
|
| |||||||
Software — 6.8% | ||||||||
Activision Blizzard, Inc. | 50 | 3,778 | ||||||
Adobe Systems, Inc.* | 144 | 35,084 | ||||||
Intuit, Inc. | 135 | 27,622 | ||||||
Microsoft Corp. | 2,824 | 278,456 | ||||||
Oracle Corp. | 785 | 34,565 | ||||||
salesforce.com, Inc.* | 452 | 61,694 | ||||||
Workday, Inc., Class A* | 126 | 15,309 | ||||||
|
| |||||||
456,508 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
40 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Specialty Retail — 3.3% | ||||||||
AutoZone, Inc.* | 48 | 32,003 | ||||||
Best Buy Co., Inc. | 276 | 20,592 | ||||||
Home Depot, Inc. (The) | 435 | 84,771 | ||||||
Lowe’s Cos., Inc. | 244 | 23,300 | ||||||
O’Reilly Automotive, Inc.* | 103 | 28,041 | ||||||
Ross Stores, Inc. | 311 | 26,357 | ||||||
TJX Cos., Inc. (The) | 74 | 7,081 | ||||||
|
| |||||||
222,145 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.6% |
| |||||||
Apple, Inc. | 1,394 | 258,117 | ||||||
Hewlett Packard Enterprise Co. | 1,769 | 25,842 | ||||||
HP, Inc. | 1,218 | 27,646 | ||||||
|
| |||||||
311,605 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.2% | ||||||||
NIKE, Inc., Class B | 526 | 41,888 | ||||||
PVH Corp. | 198 | 29,584 | ||||||
Ralph Lauren Corp. | 54 | 6,789 | ||||||
|
| |||||||
78,261 | ||||||||
|
| |||||||
Tobacco — 1.1% | ||||||||
Altria Group, Inc. | 279 | 15,816 | ||||||
Philip Morris International, Inc. | 700 | 56,542 | ||||||
|
| |||||||
72,358 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 275 | 13,221 | ||||||
United Rentals, Inc.* | 19 | 2,731 | ||||||
|
| |||||||
15,952 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Wireless Telecommunication Services — 0.3% |
| |||||||
T-Mobile US, Inc.* | 335 | 20,028 | ||||||
|
| |||||||
Total Common Stocks |
| 6,663,908 | ||||||
|
| |||||||
Short-Term Investments — 1.7% | ||||||||
Investment Companies — 1.6% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) | 106,088 | 106,088 | ||||||
|
| |||||||
PRINCIPAL AMOUNT ($000) | ||||||||
U.S. Treasury Obligations — 0.1% | ||||||||
U.S. Treasury Bills | 5,792 | 5,721 | ||||||
|
| |||||||
Total Short-Term Investments | 111,809 | |||||||
|
| |||||||
Total Investments — 100.6% |
| 6,775,717 | ||||||
Liabilities in Excess of |
| (38,627 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 6,737,090 | |||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts |
| |||||||||||||||||||
S&P 500 E-Mini Index | 501 | 09/2018 | USD | 68,176 | (1,431 | ) | ||||||||||||||
|
| |||||||||||||||||||
(1,431 | ) | |||||||||||||||||||
|
|
Abbreviations
USD | United States Dollar | |
(a) | Amount rounds to less than 0.05% of net assets. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(c) | The rate shown is the current yield as of June 30, 2018. | |
(d) | All or a portion of this security is deposited with the broker as initial margin for future contracts. | |
(e) | The rate shown is the effective yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 41 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | JPMorgan Growth and Income Fund | JPMorgan | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in non-affiliates, at value | $ | 243,066 | $ | 16,661,428 | $ | 587,078 | $ | 2,395,017 | ||||||||
Investments in affiliates, at value | 10,204 | 608,619 | 27,866 | 92,778 | ||||||||||||
Options purchased, at value | — | — | — | 34,221 | ||||||||||||
Deposits at broker for futures contracts | — | — | — | 3,219 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | 613 | 56,632 | ||||||||||||
Fund shares sold | 268 | 37,178 | 616 | 11,881 | ||||||||||||
Dividends from non-affiliates | 105 | 29,045 | 725 | 1,691 | ||||||||||||
Dividends from affiliates | 13 | 870 | 37 | 66 | ||||||||||||
Variation margin on futures contracts | — | — | — | 503 | ||||||||||||
Other assets | 11 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 253,667 | 17,337,140 | 616,935 | 2,596,008 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | — | — | (a) | — | (a) | 46 | ||||||||||
Distributions | — | — | (a) | — | — | |||||||||||
Investment securities purchased | — | 40,617 | 5,498 | 132,904 | ||||||||||||
Fund shares redeemed | 108 | 30,438 | 149 | 2,580 | ||||||||||||
Outstanding options written, at fair value | — | — | — | 30,928 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 90 | 5,623 | 167 | 372 | ||||||||||||
Administration fees | — | 1,148 | 20 | 88 | ||||||||||||
Distribution fees | 3 | 1,506 | 113 | 105 | ||||||||||||
Service fees | 52 | 2,326 | 58 | 463 | ||||||||||||
Custodian and accounting fees | 5 | 80 | 6 | 24 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | (a) | — | (a) | — | (a) | ||||||||
Audit fees | 20 | 25 | 20 | 32 | ||||||||||||
Printing and mailing cost | 17 | 462 | 24 | 26 | ||||||||||||
Other | 2 | 420 | 117 | 48 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 297 | 82,645 | 6,172 | 167,616 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 253,370 | $ | 17,254,495 | $ | 610,763 | $ | 2,428,392 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
42 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | JPMorgan Growth and Income Fund | JPMorgan | |||||||||||||
NET ASSETS: | ||||||||||||||||
Paid-in-Capital | $ | 195,594 | $ | 12,652,623 | $ | 389,264 | $ | 2,302,455 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 740 | 12,076 | 242 | 902 | ||||||||||||
Accumulated net realized gains (losses) | 8,292 | 203,140 | 21,171 | (81,585 | ) | |||||||||||
Net unrealized appreciation (depreciation) | 48,744 | 4,386,656 | 200,086 | 206,620 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 253,370 | $ | 17,254,495 | $ | 610,763 | $ | 2,428,392 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 4,077 | $ | 3,022,879 | $ | 476,090 | $ | 277,898 | ||||||||
Class C | 3,017 | 1,303,731 | 23,034 | 81,030 | ||||||||||||
Class I | 246,276 | 6,320,979 | 77,737 | 1,947,444 | ||||||||||||
Class R2 | — | 80,330 | 41 | — | ||||||||||||
Class R3 | — | 91,267 | 22 | — | ||||||||||||
Class R4 | — | 23,451 | 22 | — | ||||||||||||
Class R5 | — | 1,097,476 | 43 | 123 | ||||||||||||
Class R6 | — | 5,314,382 | 33,774 | 121,897 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 253,370 | $ | 17,254,495 | $ | 610,763 | $ | 2,428,392 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 128 | 179,758 | 9,567 | 14,306 | ||||||||||||
Class C | 98 | 79,010 | 513 | 4,192 | ||||||||||||
Class I | 7,664 | 369,643 | 1,483 | 100,039 | ||||||||||||
Class R2 | — | 4,799 | 1 | — | ||||||||||||
Class R3 | — | 5,431 | — | (a) | — | |||||||||||
Class R4 | — | 1,372 | — | (a) | — | |||||||||||
Class R5 | — | 64,138 | 1 | 6 | ||||||||||||
Class R6 | — | 310,795 | 640 | 6,254 | ||||||||||||
Net Asset Value (b): | ||||||||||||||||
Class A — Redemption price per share | $ | 31.83 | $ | 16.82 | $ | 49.77 | $ | 19.43 | ||||||||
Class C — Offering price per share (c) | 30.75 | 16.50 | 44.91 | 19.33 | ||||||||||||
Class I — Offering and redemption price per share | 32.13 | 17.10 | 52.41 | 19.47 | ||||||||||||
Class R2 — Offering and redemption price per share | — | 16.74 | 49.98 | — | ||||||||||||
Class R3 — Offering and redemption price per share | — | 16.80 | 52.41 | — | ||||||||||||
Class R4 — Offering and redemption price per share | — | 17.09 | 52.41 | — | ||||||||||||
Class R5 — Offering and redemption price per share | — | 17.11 | 52.74 | 19.50 | ||||||||||||
Class R6 — Offering and redemption price per share | — | 17.10 | 52.75 | 19.49 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 33.59 | $ | 17.75 | $ | 52.53 | $ | 20.51 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 194,322 | $ | 12,274,772 | $ | 386,992 | $ | 2,189,916 | ||||||||
Cost of investments in affiliates | 10,204 | 608,619 | 27,866 | 92,778 | ||||||||||||
Cost of options purchased | — | — | — | 33,735 | ||||||||||||
Premiums received from options written | — | — | — | 31,964 |
(a) | Amount rounds to less than one thousand. |
(b) | Per share amounts may not recalculate due to rounding of net assets and/or shares outstanding. |
(c) | Redemption price for Class C Shares varies based upon length of time the shares are held. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 43 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | JPMorgan U.S. Equity | JPMorgan U.S. Research Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in non-affiliates, at value | $ | 14,078,419 | $ | 1,634,902 | $ | 14,890,307 | $ | 6,669,629 | ||||||||
Investments in affiliates, at value | 255,806 | 90,740 | 152,987 | 106,088 | ||||||||||||
Deposits at broker for futures contracts | — | — | 3,250 | 625 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 32,150 | 5,554 | 156,311 | 294,958 | ||||||||||||
Fund shares sold | 17,177 | 2,176 | 15,988 | 2,441 | ||||||||||||
Dividends from non-affiliates | 406 | 1,510 | 10,829 | 5,033 | ||||||||||||
Dividends from affiliates | 284 | 69 | 252 | 141 | ||||||||||||
Variation margin on futures contracts | — | — | 56 | 60 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 14,384,242 | 1,734,951 | 15,229,980 | 7,078,975 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | — | — | (a) | 18 | — | (a) | ||||||||||
Distributions | — | — | — | (a) | — | |||||||||||
Investment securities purchased | — | 79,987 | 130,083 | 73,566 | ||||||||||||
Fund shares redeemed | 24,785 | 1,737 | 34,190 | 266,621 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 4,880 | 444 | 4,528 | 1,096 | ||||||||||||
Administration fees | 255 | 47 | 697 | 246 | ||||||||||||
Distribution fees | 954 | 101 | 594 | 59 | ||||||||||||
Service fees | 1,549 | 131 | 915 | 79 | ||||||||||||
Custodian and accounting fees | 67 | 12 | 83 | 41 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | 10 | 2 | |||||||||||
Audit fees | 15 | 25 | 22 | 22 | ||||||||||||
Printing and mailing cost | 609 | 35 | 498 | 79 | ||||||||||||
Other | 541 | 80 | 245 | 74 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 33,655 | 82,599 | 171,883 | 341,885 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 14,350,587 | $ | 1,652,352 | $ | 15,058,097 | $ | 6,737,090 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
44 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | JPMorgan U.S. Equity Fund | JPMorgan U.S. Research Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||
NET ASSETS: | ||||||||||||||||
Paid-in-Capital | $ | 6,339,923 | $ | 1,494,488 | $ | 10,099,680 | $ | 4,533,570 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 541 | 813 | 4,632 | 2,513 | ||||||||||||
Accumulated net realized gains (losses) | 907,793 | 77,345 | 970,815 | 343,450 | ||||||||||||
Net unrealized appreciation (depreciation) | 7,102,330 | 79,706 | 3,982,970 | 1,857,557 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 14,350,587 | $ | 1,652,352 | $ | 15,058,097 | $ | 6,737,090 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 2,481,816 | $ | 236,470 | $ | 1,340,858 | $ | 278,766 | ||||||||
Class C | 534,199 | 69,445 | 302,297 | — | ||||||||||||
Class I | 4,413,908 | 378,058 | 1,521,535 | 268,898 | ||||||||||||
Class L | — | — | 1,679,995 | 476,809 | ||||||||||||
Class R2 | 156,775 | 17,046 | 265,675 | — | ||||||||||||
Class R3 | 6,865 | — | 61,413 | — | ||||||||||||
Class R4 | 5,930 | — | 10,531 | — | ||||||||||||
Class R5 | 788,766 | 23,166 | 938,744 | — | ||||||||||||
Class R6 | 5,962,328 | 928,167 | 8,937,049 | 5,712,617 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 14,350,587 | $ | 1,652,352 | $ | 15,058,097 | $ | 6,737,090 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 58,478 | 15,653 | 81,375 | 9,826 | ||||||||||||
Class C | 15,620 | 4,785 | 18,905 | — | ||||||||||||
Class I | 102,989 | 25,458 | 92,136 | 9,399 | ||||||||||||
Class L | — | — | 101,604 | 16,690 | ||||||||||||
Class R2 | 3,808 | 1,137 | 16,259 | — | ||||||||||||
Class R3 | 161 | — | 3,738 | — | ||||||||||||
Class R4 | 138 | — | 638 | — | ||||||||||||
Class R5 | 18,069 | 1,546 | 56,757 | — | ||||||||||||
Class R6 | 135,672 | 62,312 | 539,536 | 199,926 | ||||||||||||
Net Asset Value (a): | ||||||||||||||||
Class A — Redemption price per share | $ | 42.44 | $ | 15.11 | $ | 16.48 | $ | 28.37 | ||||||||
Class C — Offering price per share (b) | 34.20 | 14.51 | 15.99 | — | ||||||||||||
Class I — Offering and redemption price per share | 42.86 | 14.85 | 16.51 | 28.61 | ||||||||||||
Class L — Offering and redemption price per share | — | — | 16.53 | 28.57 | ||||||||||||
Class R2 — Offering and redemption price per share | 41.17 | 14.99 | 16.34 | — | ||||||||||||
Class R3 — Offering and redemption price per share | 42.64 | — | 16.43 | — | ||||||||||||
Class R4 — Offering and redemption price per share | 42.85 | — | 16.50 | — | ||||||||||||
Class R5 — Offering and redemption price per share | 43.65 | 14.99 | 16.54 | — | ||||||||||||
Class R6 — Offering and redemption price per share | 43.95 | 14.90 | 16.56 | 28.57 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 44.79 | $ | 15.95 | $ | 17.39 | $ | 29.94 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 6,976,089 | $ | 1,555,196 | $ | 10,906,091 | $ | 4,810,641 | ||||||||
Cost of investments in affiliates | 255,806 | 90,740 | 152,987 | 106,088 |
(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.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 45 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | JPMorgan Growth and Income Fund | JPMorgan Hedged Equity Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from non-affiliates | $ | — | $ | — | (a) | $ | — | $ | 13 | |||||||
Interest income from affiliates | — | (a) | 9 | — | (a) | 6 | ||||||||||
Dividend income from non-affiliates | 2,957 | 412,676 | 12,884 | 27,508 | ||||||||||||
Dividend income from affiliates | 107 | 4,694 | 152 | 534 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 3,064 | 417,379 | 13,036 | 28,061 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 1,338 | 65,216 | 2,303 | 3,966 | ||||||||||||
Administration fees | 181 | 13,249 | 468 | 1,288 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 10 | 7,937 | 1,153 | 554 | ||||||||||||
Class C | 25 | 10,114 | 188 | 421 | ||||||||||||
Class R2 | — | 439 | — | (a) | — | |||||||||||
Class R3 (b) | — | 164 | — | (a) | — | |||||||||||
Service fees: | ||||||||||||||||
Class A | 10 | 7,937 | 1,153 | 554 | ||||||||||||
Class C | 9 | 3,371 | 63 | 140 | ||||||||||||
Class I | 539 | 14,977 | 181 | 3,216 | ||||||||||||
Class R2 | — | 219 | — | (a) | — | |||||||||||
Class R3 (b) | — | 164 | — | (a) | — | |||||||||||
Class R4 (b) | — | 40 | — | (a) | — | |||||||||||
Class R5 | — | 1,028 | — | (a) | — | (a) | ||||||||||
Custodian and accounting fees | 27 | 435 | 33 | 118 | ||||||||||||
Professional fees | 52 | 218 | 64 | 93 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 26 | 79 | 27 | 29 | ||||||||||||
Printing and mailing costs | 57 | 769 | 25 | 120 | ||||||||||||
Registration and filing fees | 43 | 522 | 99 | 263 | ||||||||||||
Transfer agency fees (See Note 2.E.) | 7 | 673 | 265 | 48 | ||||||||||||
Other | 8 | 297 | 20 | 28 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 2,332 | 127,848 | 6,042 | 10,838 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (385 | ) | (791 | ) | (607 | ) | (476 | ) | ||||||||
Less expense reimbursements | — | — | — | (a) | (7 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 1,947 | 127,057 | 5,435 | 10,355 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 1,117 | 290,322 | 7,601 | 17,706 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in non-affiliates | 10,273 | 305,643 | 36,587 | (1,135 | ) | |||||||||||
Options purchased | — | — | — | (81,493 | ) | |||||||||||
Futures contracts | — | — | — | 4,852 | ||||||||||||
Options written | — | — | — | 25,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 10,273 | 305,643 | 36,587 | (52,720 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||
Investments in non-affiliates | 18,485 | 913,007 | 20,167 | 129,215 | ||||||||||||
Options purchased | — | — | — | 717 | ||||||||||||
Futures contracts | — | — | — | 8 | ||||||||||||
Options written | — | — | — | 1,086 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | 18,485 | 913,007 | 20,167 | 131,026 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | 28,758 | 1,218,650 | 56,754 | 78,306 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | 29,875 | $ | 1,508,972 | $ | 64,355 | $ | 96,012 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth and Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
46 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | JPMorgan U.S. Equity Fund | JPMorgan U.S. Research Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from non-affiliates | $ | — | (a) | $ | — | (a) | $ | — | $ | 66 | ||||||
Interest income from affiliates | 4 | 3 | 5 | — | (a) | |||||||||||
Dividend income from non-affiliates | 91,380 | 25,573 | 244,332 | 127,144 | ||||||||||||
Dividend income from affiliates | 2,991 | 432 | 1,780 | 811 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 94,375 | 26,008 | 246,117 | 128,021 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 65,677 | 5,574 | 60,466 | 18,367 | ||||||||||||
Administration fees | 10,674 | 1,132 | 12,285 | 5,971 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 6,562 | 602 | 3,486 | 922 | ||||||||||||
Class C | 3,808 | 457 | 2,318 | — | ||||||||||||
Class R2 | 762 | 57 | 1,362 | — | ||||||||||||
Class R3 | 11 | — | 120 | — | ||||||||||||
Service fees: | ||||||||||||||||
Class A | 6,562 | 602 | 3,486 | 922 | ||||||||||||
Class C | 1,269 | 152 | 772 | — | ||||||||||||
Class I | 10,025 | 733 | 3,660 | 702 | ||||||||||||
Class L | — | — | 1,931 | 748 | ||||||||||||
Class R2 | 381 | 29 | 681 | — | ||||||||||||
Class R3 | 11 | — | 120 | — | ||||||||||||
Class R4 | 26 | — | 15 | — | ||||||||||||
Class R5 | 822 | 21 | 941 | — | ||||||||||||
Custodian and accounting fees | 346 | 57 | 467 | 212 | ||||||||||||
Interest expense to affiliates | — | (a) | — | (a) | — | — | ||||||||||
Professional fees | 212 | 67 | 238 | 139 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 70 | 30 | 22 | 17 | ||||||||||||
Printing and mailing costs | 616 | 78 | 761 | 219 | ||||||||||||
Registration and filing fees | 181 | 203 | 319 | 46 | ||||||||||||
Transfer agency fees (See Note 2.E.) | 687 | 110 | 466 | 110 | ||||||||||||
Other | 333 | 28 | 273 | 135 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 109,035 | 9,932 | 94,189 | 28,510 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (15,344 | ) | (1,001 | ) | (6,444 | ) | (7,876 | ) | ||||||||
Less expense reimbursements | (32 | ) | (10 | ) | (61 | ) | (53 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 93,659 | 8,921 | 87,684 | 20,581 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 716 | 17,087 | 158,433 | 107,440 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in non-affiliates | 1,428,027 | 104,778 | 1,674,351 | 645,281 | ||||||||||||
Futures contracts | — | — | 5,637 | 6,811 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 1,428,027 | 104,778 | 1,679,988 | 652,092 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||
Investments in non-affiliates | 1,838,302 | (52,694 | ) | 110,906 | 215,587 | |||||||||||
Futures contracts | — | — | (993 | ) | (1,195 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | 1,838,302 | (52,694 | ) | 109,913 | 214,392 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | 3,266,329 | 52,084 | 1,789,901 | 866,484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | 3,267,045 | $ | 69,171 | $ | 1,948,334 | $ | 973,924 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 47 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 1,117 | $ | 321 | $ | 290,322 | $ | 241,554 | ||||||||
Net realized gain (loss) | 10,273 | 11,379 | 305,643 | 138,214 | ||||||||||||
Change in net unrealized appreciation/depreciation | 18,485 | 20,067 | 913,007 | 1,463,818 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 29,875 | 31,767 | 1,508,972 | 1,843,586 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (1 | ) | (1 | ) | (46,891 | ) | (55,085 | ) | ||||||||
From net realized gains | (185 | ) | (25 | ) | (29,140 | ) | (21,407 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | — | — | (15,879 | ) | (17,029 | ) | ||||||||||
From net realized gains | (170 | ) | (19 | ) | (12,420 | ) | (8,532 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (511 | ) | (370 | ) | (99,810 | ) | (100,491 | ) | ||||||||
From net realized gains | (10,199 | ) | (1,646 | ) | (50,622 | ) | (31,653 | ) | ||||||||
Class R2 | ||||||||||||||||
From net investment income | — | — | (1,158 | ) | (1,197 | ) | ||||||||||
From net realized gains | — | — | (836 | ) | (512 | ) | ||||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | — | — | (1,008 | ) | (81 | ) | ||||||||||
From net realized gains | — | — | (750 | ) | — | (b) | ||||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | — | — | (300 | ) | (5 | ) | ||||||||||
From net realized gains | — | — | (153 | ) | — | (b) | ||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | — | (19,165 | ) | (18,214 | ) | ||||||||||
From net realized gains | — | — | (9,994 | ) | (5,543 | ) | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | — | — | (91,009 | ) | (49,266 | ) | ||||||||||
From net realized gains | — | — | (42,337 | ) | (13,934 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (11,066 | ) | (2,061 | ) | (421,472 | ) | (322,949 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 47,717 | 17,649 | 1,214,083 | 1,365,954 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 66,526 | 47,355 | 2,301,583 | 2,886,591 | ||||||||||||
Beginning of period | 186,844 | 139,489 | 14,952,912 | 12,066,321 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 253,370 | $ | 186,844 | $ | 17,254,495 | $ | 14,952,912 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) | $ | 740 | $ | 135 | $ | 12,076 | $ | (82 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Equity Income Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
48 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth and Income Fund | JPMorgan Hedged Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 7,601 | $ | 6,531 | $ | 17,706 | $ | 4,860 | ||||||||
Net realized gain (loss) | 36,587 | 21,022 | (52,720 | ) | (9,989 | ) | ||||||||||
Change in net unrealized appreciation/depreciation | 20,167 | 49,974 | 131,026 | 53,211 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 64,355 | 77,527 | 96,012 | 48,082 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (5,773 | ) | (5,553 | ) | (1,774 | ) | (966 | ) | ||||||||
From net realized gains | (19,237 | ) | (21,085 | ) | — | — | ||||||||||
Class C | ||||||||||||||||
From net investment income | (226 | ) | (261 | ) | (200 | ) | (102 | ) | ||||||||
From net realized gains | (1,089 | ) | (1,409 | ) | — | — | ||||||||||
Class I | ||||||||||||||||
From net investment income | (1,045 | ) | (757 | ) | (14,219 | ) | (4,137 | ) | ||||||||
From net realized gains | (2,984 | ) | (2,037 | ) | — | — | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | — | (a) | — | (a) | — | — | ||||||||||
From net realized gains | (1 | ) | (1 | ) | — | — | ||||||||||
Class R3 (b) | ||||||||||||||||
From net investment income | — | (a) | — | — | — | |||||||||||
From net realized gains | (1 | ) | — | — | — | |||||||||||
Class R4 (b) | ||||||||||||||||
From net investment income | — | (a) | — | — | — | |||||||||||
From net realized gains | (1 | ) | — | — | — | |||||||||||
Class R5 | ||||||||||||||||
From net investment income | (1 | ) | — | (a) | (1 | ) | — | (a) | ||||||||
From net realized gains | (2 | ) | (1 | ) | — | — | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | (304 | ) | (24 | ) | (485 | ) | (12 | ) | ||||||||
From net realized gains | (197 | ) | (1 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (30,861 | ) | (31,129 | ) | (16,679 | ) | (5,217 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 37,564 | 5,487 | 1,585,763 | 480,228 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 71,058 | 51,885 | 1,665,096 | 523,093 | ||||||||||||
Beginning of period | 539,705 | 487,820 | 763,296 | 240,203 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 610,763 | $ | 539,705 | $ | 2,428,392 | $ | 763,296 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 242 | $ | 107 | $ | 902 | $ | 32 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth and Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 49 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 716 | $ | (2,632 | ) | $ | 17,087 | $ | 11,242 | |||||||
Net realized gain (loss) | 1,428,027 | 2,090,043 | 104,778 | 104,157 | ||||||||||||
Change in net unrealized appreciation/depreciation | 1,838,302 | 995,654 | (52,694 | ) | 88,765 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 3,267,045 | 3,083,065 | 69,171 | 204,164 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | — | — | (1,957 | ) | (1,507 | ) | ||||||||||
From net realized gains | (341,736 | ) | (325,496 | ) | (18,331 | ) | (5,231 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | — | — | (250 | ) | (170 | ) | ||||||||||
From net realized gains | (78,411 | ) | (53,436 | ) | (4,679 | ) | (1,032 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | — | — | (3,416 | ) | (950 | ) | ||||||||||
From net realized gains | (495,445 | ) | (328,427 | ) | (22,920 | ) | (1,643 | ) | ||||||||
Class R2 | ||||||||||||||||
From net investment income | — | — | (82 | ) | (33 | ) | ||||||||||
From net realized gains | (20,556 | ) | (15,873 | ) | (855 | ) | (201 | ) | ||||||||
Class R3 (a) | ||||||||||||||||
From net realized gains | (239 | ) | (2 | ) | — | — | ||||||||||
Class R4 (a) | ||||||||||||||||
From net realized gains | (1,429 | ) | (2 | ) | — | — | ||||||||||
Class R5 | ||||||||||||||||
From net investment income | — | — | (276 | ) | (98 | ) | ||||||||||
From net realized gains | (107,511 | ) | (98,724 | ) | (1,739 | ) | (290 | ) | ||||||||
Class R6 | ||||||||||||||||
From net investment income | — | — | (10,517 | ) | (8,323 | ) | ||||||||||
From net realized gains | (610,039 | ) | (289,943 | ) | (58,205 | ) | (26,620 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (1,655,366 | ) | (1,111,903 | ) | (123,227 | ) | (46,098 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 462,204 | (3,398,594 | ) | 654,144 | 184,252 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 2,073,883 | (1,427,432 | ) | 600,088 | 342,318 | |||||||||||
Beginning of period | 12,276,704 | 13,704,136 | 1,052,264 | 709,946 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 14,350,587 | $ | 12,276,704 | $ | 1,652,352 | $ | 1,052,264 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) | $ | 541 | $ | (164 | ) | $ | 813 | $ | 374 | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Large Cap Growth Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
50 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan U.S. Equity Fund | JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 158,433 | $ | 136,643 | $ | 107,440 | $ | 117,738 | ||||||||
Net realized gain (loss) | 1,679,988 | 1,274,052 | 652,092 | 335,947 | ||||||||||||
Change in net unrealized appreciation/depreciation | 109,913 | 949,838 | 214,392 | 874,786 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 1,948,334 | 2,360,533 | 973,924 | 1,328,471 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (9,388 | ) | (10,446 | ) | (3,827 | ) | (6,106 | ) | ||||||||
From net realized gains | (103,922 | ) | (51,421 | ) | — | — | ||||||||||
Return of capital | — | — | — | (379 | ) | |||||||||||
Class C | ||||||||||||||||
From net investment income | (716 | ) | (888 | ) | — | — | ||||||||||
From net realized gains | (22,636 | ) | (11,601 | ) | — | — | ||||||||||
Class I | ||||||||||||||||
From net investment income | (13,503 | ) | (10,661 | ) | (3,737 | ) | (4,149 | ) | ||||||||
From net realized gains | (108,901 | ) | (39,119 | ) | — | — | ||||||||||
Return of capital | — | — | — | (215 | ) | |||||||||||
Class L | ||||||||||||||||
From net investment income | (17,778 | ) | (35,018 | ) | (9,307 | ) | (13,394 | ) | ||||||||
From net realized gains | (128,936 | ) | (116,356 | ) | — | — | ||||||||||
Return of capital | — | — | — | (677 | ) | |||||||||||
Class R2 | ||||||||||||||||
From net investment income | (1,146 | ) | (1,117 | ) | — | — | ||||||||||
From net realized gains | (20,307 | ) | (7,793 | ) | — | — | ||||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | (344 | ) | (52 | ) | — | — | ||||||||||
From net realized gains | (3,695 | ) | (1 | ) | — | — | ||||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | (64 | ) | (2 | ) | — | — | ||||||||||
From net realized gains | (440 | ) | (1 | ) | — | — | ||||||||||
Class R5 | ||||||||||||||||
From net investment income | (10,060 | ) | (9,792 | ) | — | — | ||||||||||
From net realized gains | (68,930 | ) | (30,659 | ) | — | — | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | (104,163 | ) | (66,331 | ) | (86,761 | ) | (105,888 | ) | ||||||||
From net realized gains | (674,676 | ) | (182,725 | ) | — | — | ||||||||||
Return of capital | — | — | — | (4,975 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (1,289,605 | ) | (573,983 | ) | (103,632 | ) | (135,783 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 102,375 | 127,956 | (1,539,735 | ) | (2,007,733 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 761,104 | 1,914,506 | (669,443 | ) | (815,045 | ) | ||||||||||
Beginning of period | 14,296,993 | 12,382,487 | 7,406,533 | 8,221,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 15,058,097 | $ | 14,296,993 | $ | 6,737,090 | $ | 7,406,533 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) | $ | 4,632 | $ | 6,113 | $ | 2,513 | $ | (62 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 51 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 1,177 | $ | 2,075 | $ | 525,531 | $ | 894,583 | ||||||||
Distributions reinvested | 186 | 26 | 71,651 | 72,244 | ||||||||||||
Cost of shares redeemed | (971 | ) | (1,176 | ) | (975,605 | ) | (1,551,451 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 392 | $ | 925 | $ | (378,423 | ) | $ | (584,624 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 529 | $ | 2,311 | $ | 158,580 | $ | 285,012 | ||||||||
Distributions reinvested | 170 | 19 | 25,015 | 21,767 | ||||||||||||
Cost of shares redeemed | (1,305 | ) | (668 | ) | (358,771 | ) | (377,726 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (606 | ) | $ | 1,662 | $ | (175,176 | ) | $ | (70,947 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 81,292 | $ | 77,581 | $ | 1,983,704 | $ | 2,752,194 | ||||||||
Distributions reinvested | 10,677 | 500 | 131,986 | 91,463 | ||||||||||||
Cost of shares redeemed | (44,038 | ) | (63,019 | ) | (2,734,993 | ) | (1,583,974 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 47,931 | $ | 15,062 | $ | (619,303 | ) | $ | 1,259,683 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 18,053 | $ | 25,628 | ||||||||
Distributions reinvested | — | — | 1,710 | 1,465 | ||||||||||||
Cost of shares redeemed | — | — | (33,335 | ) | (26,181 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | (13,572 | ) | $ | 912 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 82,515 | $ | 25,864 | ||||||||
Distributions reinvested | — | — | 1,736 | 81 | ||||||||||||
Cost of shares redeemed | — | — | (19,935 | ) | (1,061 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | — | $ | — | $ | 64,316 | $ | 24,884 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 29,460 | $ | 1,348 | ||||||||
Distributions reinvested | — | — | 452 | 5 | ||||||||||||
Cost of shares redeemed | — | — | (8,782 | ) | (22 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | — | $ | — | $ | 21,130 | $ | 1,331 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 468,882 | $ | 335,193 | ||||||||
Distributions reinvested | — | — | 26,960 | 20,248 | ||||||||||||
Cost of shares redeemed | — | — | (382,098 | ) | (265,692 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | $ | — | $ | 113,744 | $ | 89,749 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 2,906,484 | $ | 944,610 | ||||||||
Distributions reinvested | — | — | 124,146 | 58,534 | ||||||||||||
Cost of shares redeemed | — | — | (829,263 | ) | (358,178 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | — | $ | — | $ | 2,201,367 | $ | 644,966 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 47,717 | $ | 17,649 | $ | 1,214,083 | $ | 1,365,954 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Equity Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
52 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Focus Fund | JPMorgan Equity Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 38 | 77 | 31,499 | 60,548 | ||||||||||||
Reinvested | 6 | 1 | 4,281 | 4,819 | ||||||||||||
Redeemed | (32 | ) | (44 | ) | (58,701 | ) | (103,227 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 12 | 34 | (22,921 | ) | (37,860 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 17 | 87 | 9,654 | 19,503 | ||||||||||||
Reinvested | 6 | 1 | 1,521 | 1,474 | ||||||||||||
Redeemed | (43 | ) | (25 | ) | (22,050 | ) | (25,612 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (20 | ) | 63 | (10,875 | ) | (4,635 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 2,578 | 2,794 | 116,951 | 180,530 | ||||||||||||
Reinvested | 345 | 18 | 7,758 | 5,980 | ||||||||||||
Redeemed | (1,399 | ) | (2,369 | ) | (165,937 | ) | (104,537 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 1,524 | 443 | (41,228 | ) | 81,973 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | — | — | 1,087 | 1,732 | ||||||||||||
Reinvested | — | — | 103 | 98 | ||||||||||||
Redeemed | — | — | (1,990 | ) | (1,759 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | (800 | ) | 71 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Issued | — | — | 4,897 | 1,673 | ||||||||||||
Reinvested | — | — | 103 | 5 | ||||||||||||
Redeemed | — | — | (1,179 | ) | (68 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | — | — | 3,821 | 1,610 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Issued | — | — | 1,791 | 85 | ||||||||||||
Reinvested | — | — | 27 | — | (b) | |||||||||||
Redeemed | — | — | (530 | ) | (1 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | — | — | 1,288 | 84 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | — | — | 27,638 | 22,474 | ||||||||||||
Reinvested | — | — | 1,584 | 1,327 | ||||||||||||
Redeemed | — | — | (22,367 | ) | (17,279 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | — | 6,855 | 6,522 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | — | — | 174,849 | 62,362 | ||||||||||||
Reinvested | — | — | 7,288 | 3,831 | ||||||||||||
Redeemed | — | — | (48,541 | ) | (23,492 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | — | — | 133,596 | 42,701 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Equity Income Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 53 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Growth and Income Fund | JPMorgan Hedged Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 63,584 | $ | 26,975 | $ | 245,722 | $ | 108,278 | ||||||||
Distributions reinvested | 24,233 | 25,772 | 1,770 | 963 | ||||||||||||
Cost of shares redeemed | (85,887 | ) | (69,807 | ) | (115,928 | ) | (56,579 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 1,930 | $ | (17,060 | ) | $ | 131,564 | $ | 52,662 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 3,673 | $ | 7,478 | $ | 56,798 | $ | 21,214 | ||||||||
Distributions reinvested | 1,171 | 1,487 | 200 | 102 | ||||||||||||
Cost of shares redeemed | (11,728 | ) | (8,463 | ) | (7,913 | ) | (3,586 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (6,884 | ) | $ | 502 | $ | 49,085 | $ | 17,730 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 34,111 | $ | 29,950 | $ | 1,593,492 | $ | 479,420 | ||||||||
Distributions reinvested | 3,841 | 2,468 | 13,345 | 4,026 | ||||||||||||
Cost of shares redeemed | (28,585 | ) | (12,449 | ) | (320,018 | ) | (76,819 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 9,367 | $ | 19,969 | $ | 1,286,819 | $ | 406,627 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 15 | $ | — | (a) | $ | — | $ | — | |||||||
Distributions reinvested | 1 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | 16 | $ | 1 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 20 | $ | — | $ | — | $ | — | ||||||||
Distributions reinvested | 1 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 21 | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Proceeds from shares issued | $ | 20 | $ | — | $ | — | $ | — | ||||||||
Distributions reinvested | 1 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 21 | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 6 | $ | 13 | $ | 152 | $ | 11 | ||||||||
Distributions reinvested | 3 | 1 | 1 | — | (a) | |||||||||||
Cost of shares redeemed | (6 | ) | (1 | ) | (72 | ) | (2 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 3 | $ | 13 | $ | 81 | $ | 9 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 34,075 | $ | 2,071 | $ | 128,229 | $ | 3,711 | ||||||||
Distributions reinvested | 501 | 25 | 199 | 12 | ||||||||||||
Cost of shares redeemed | (1,486 | ) | (34 | ) | (10,214 | ) | (523 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 33,090 | $ | 2,062 | $ | 118,214 | $ | 3,200 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 37,564 | $ | 5,487 | $ | 1,585,763 | $ | 480,228 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth and Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
54 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Growth and Income Fund | JPMorgan Hedged Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 1,271 | 593 | 12,948 | 6,104 | ||||||||||||
Reinvested | 485 | 563 | 93 | 55 | ||||||||||||
Redeemed | (1,688 | ) | (1,532 | ) | (6,071 | ) | (3,224 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 68 | (376 | ) | 6,970 | 2,935 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 81 | 180 | 2,990 | 1,195 | ||||||||||||
Reinvested | 26 | 36 | 11 | 6 | ||||||||||||
Redeemed | (259 | ) | (205 | ) | (415 | ) | (205 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (152 | ) | 11 | 2,586 | 996 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 649 | 619 | 83,305 | 27,070 | ||||||||||||
Reinvested | 73 | 51 | 699 | 227 | ||||||||||||
Redeemed | (543 | ) | (261 | ) | (16,636 | ) | (4,393 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 179 | 409 | 67,368 | 22,904 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | — | (a) | — | — | — | |||||||||||
Reinvested | — | (a) | — | (a) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | (a) | — | (a) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Issued | — | (a) | — | — | — | |||||||||||
Reinvested | — | (a) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | — | (a) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Issued | — | (a) | — | — | — | |||||||||||
Reinvested | — | (a) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | — | (a) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | — | (a) | 1 | 8 | 1 | |||||||||||
Reinvested | — | (a) | — | (a) | — | (a) | — | (a) | ||||||||
Redeemed | — | (a) | — | (a) | (4 | ) | — | (a) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | (a) | 1 | 4 | 1 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 615 | 43 | 6,591 | 203 | ||||||||||||
Reinvested | 10 | 1 | 10 | 1 | ||||||||||||
Redeemed | (28 | ) | (1 | ) | (527 | ) | (29 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 597 | 43 | 6,074 | 175 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017 for JPMorgan Growth and Income Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 55 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 495,076 | $ | 643,833 | $ | 130,775 | $ | 168,247 | ||||||||
Net assets acquired in Fund reorganization (See Note 9) | $ | 63,247 | $ | — | $ | — | $ | — | ||||||||
Distributions reinvested | 311,846 | 303,623 | 19,806 | 6,462 | ||||||||||||
Cost of shares redeemed | (1,174,028 | ) | (3,220,124 | ) | (123,251 | ) | (78,987 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (303,859 | ) | $ | (2,272,668 | ) | $ | 27,330 | $ | 95,722 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 80,665 | $ | 42,768 | $ | 38,428 | $ | 33,013 | ||||||||
Net assets acquired in Fund reorganization (See Note 9) | 13,553 | — | — | — | ||||||||||||
Distributions reinvested | 59,885 | 38,865 | 4,755 | 1,034 | ||||||||||||
Cost of shares redeemed | (152,863 | ) | (220,512 | ) | (19,452 | ) | (7,339 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | 1,240 | $ | (138,879 | ) | $ | 23,731 | $ | 26,708 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 1,263,343 | $ | 1,980,767 | $ | 345,159 | $ | 161,424 | ||||||||
Net assets acquired in Fund reorganization (See Note 9) | 66,379 | — | — | — | ||||||||||||
Distributions reinvested | 437,623 | 250,389 | 25,985 | 2,254 | ||||||||||||
Cost of shares redeemed | (2,608,344 | ) | (2,307,254 | ) | (138,314 | ) | (32,884 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (840,999 | ) | $ | (76,098 | ) | $ | 232,830 | $ | 130,794 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 46,028 | $ | 52,791 | $ | 13,920 | $ | 3,523 | ||||||||
Distributions reinvested | 14,353 | 11,527 | 689 | 138 | ||||||||||||
Cost of shares redeemed | (68,572 | ) | (135,753 | ) | (3,779 | ) | (1,186 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (8,191 | ) | $ | (71,435 | ) | $ | 10,830 | $ | 2,475 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 5,967 | $ | 977 | $ | — | $ | — | ||||||||
Distributions reinvested | 198 | 2 | — | — | ||||||||||||
Cost of shares redeemed | (985 | ) | (43 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 5,180 | $ | 936 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 16,616 | $ | 429 | $ | — | $ | — | ||||||||
Distributions reinvested | 1,429 | 2 | — | — | ||||||||||||
Cost of shares redeemed | (13,174 | ) | — | (b) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 4,871 | $ | 431 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 167,961 | $ | 143,031 | $ | 21,564 | $ | 6,133 | ||||||||
Net assets acquired in Fund reorganization (See Note 9) | 201,731 | — | — | — | ||||||||||||
Distributions reinvested | 99,180 | 94,629 | 1,993 | 376 | ||||||||||||
Cost of shares redeemed | (578,359 | ) | (790,295 | ) | (9,689 | ) | (1,640 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (109,487 | ) | $ | (552,635 | ) | $ | 13,868 | $ | 4,869 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 2,125,161 | $ | 678,429 | $ | 374,045 | $ | 31,638 | ||||||||
Distributions reinvested | 540,060 | 283,753 | 68,661 | 34,941 | ||||||||||||
Cost of shares redeemed | (951,772 | ) | (1,250,428 | ) | (97,151 | ) | (142,895 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 1,713,449 | $ | (288,246 | ) | $ | 345,555 | $ | (76,316 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 462,204 | $ | (3,398,594 | ) | $ | 654,144 | $ | 184,252 | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Large Cap Growth Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
56 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Large Cap Growth Fund | JPMorgan Large Cap Value Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 12,491 | 18,686 | 8,302 | 11,164 | ||||||||||||
Shares issued in connection with Fund reorganization (See Note 9) | 1,736 | — | — | — | ||||||||||||
Reinvested | 8,728 | 9,494 | 1,278 | 436 | ||||||||||||
Redeemed | (28,909 | ) | (92,834 | ) | (7,816 | ) | (5,292 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (5,954 | ) | (64,654 | ) | 1,764 | 6,308 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 2,540 | 1,492 | 2,535 | 2,276 | ||||||||||||
Shares issued in connection with Fund reorganization (See Note 9) | 460 | — | — | — | ||||||||||||
Reinvested | 2,073 | 1,450 | 319 | 72 | ||||||||||||
Redeemed | (4,716 | ) | (7,549 | ) | (1,285 | ) | (518 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | 357 | (4,607 | ) | 1,569 | 1,830 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 30,824 | 56,465 | 22,191 | 10,803 | ||||||||||||
Shares issued in connection with Fund reorganization (See Note 9) | 1,807 | — | — | — | ||||||||||||
Reinvested | 12,149 | 7,786 | 1,706 | 153 | ||||||||||||
Redeemed | (65,821 | ) | (66,016 | ) | (9,034 | ) | (2,226 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (21,041 | ) | (1,765 | ) | 14,863 | 8,730 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 1,202 | 1,560 | 896 | 240 | ||||||||||||
Reinvested | 413 | 368 | 45 | 9 | ||||||||||||
Redeemed | (1,769 | ) | (3,925 | ) | (244 | ) | (83 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (154 | ) | (1,997 | ) | 697 | 166 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Issued | 154 | 27 | — | — | ||||||||||||
Reinvested | 6 | — | (b) | — | — | |||||||||||
Redeemed | (25 | ) | (1 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 135 | 26 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Issued | 414 | 11 | — | — | ||||||||||||
Reinvested | 40 | — | (b) | — | — | |||||||||||
Redeemed | (327 | ) | — | (b) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 127 | 11 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 4,139 | 4,034 | 1,379 | 422 | ||||||||||||
Shares issued in connection with Fund reorganization (See Note 9) | 5,397 | — | — | — | ||||||||||||
Reinvested | 2,706 | 2,903 | 130 | 26 | ||||||||||||
Redeemed | (14,647 | ) | (22,615 | ) | (628 | ) | (112 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (2,405 | ) | (15,678 | ) | 881 | 336 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 52,207 | 19,262 | 24,088 | 2,234 | ||||||||||||
Reinvested | 14,648 | 8,668 | 4,491 | 2,394 | ||||||||||||
Redeemed | (23,114 | ) | (35,193 | ) | (6,224 | ) | (9,711 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 43,741 | (7,263 | ) | 22,355 | (5,083 | ) | ||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Large Cap Growth Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 57 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan U.S. Equity Fund | JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 214,993 | $ | 312,657 | $ | 52,738 | $ | 94,963 | ||||||||
Distributions reinvested | 101,906 | 55,357 | 3,815 | 6,471 | ||||||||||||
Cost of shares redeemed | (408,599 | ) | (642,220 | ) | (247,174 | ) | (249,037 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (91,700 | ) | $ | (274,206 | ) | $ | (190,621 | ) | $ | (147,603 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 53,665 | $ | 72,492 | $ | — | $ | — | ||||||||
Distributions reinvested | 22,181 | 11,726 | — | — | ||||||||||||
Cost of shares redeemed | (105,361 | ) | (103,605 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (29,515 | ) | $ | (19,387 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 475,037 | $ | 400,093 | $ | 41,680 | $ | 74,063 | ||||||||
Distributions reinvested | 118,776 | 44,148 | 3,308 | 3,996 | ||||||||||||
Cost of shares redeemed | (415,816 | ) | (376,782 | ) | (93,153 | ) | (93,896 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 177,997 | $ | 67,459 | $ | (48,165 | ) | $ | (15,837 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | 312,658 | $ | 711,757 | $ | 88,724 | $ | 142,337 | ||||||||
Distributions reinvested | 127,665 | 128,744 | 7,140 | 11,155 | ||||||||||||
Cost of shares redeemed | (2,240,979 | ) | (1,626,435 | ) | (544,996 | ) | (270,260 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | (1,800,656 | ) | $ | (785,934 | ) | $ | (449,132 | ) | $ | (116,768 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 41,736 | $ | 74,181 | $ | — | $ | — | ||||||||
Distributions reinvested | 19,822 | 8,162 | — | — | ||||||||||||
Cost of shares redeemed | (67,632 | ) | (57,260 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (6,074 | ) | $ | 25,083 | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 41,120 | $ | 25,371 | $ | — | $ | — | ||||||||
Distributions reinvested | 4,029 | 52 | — | — | ||||||||||||
Cost of shares redeemed | (10,051 | ) | (546 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 35,098 | $ | 24,877 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 10,245 | $ | 1,027 | $ | — | $ | — | ||||||||
Distributions reinvested | 504 | 3 | — | — | ||||||||||||
Cost of shares redeemed | (1,318 | ) | — | (b) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 9,431 | $ | 1,030 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 119,546 | $ | 135,617 | $ | — | $ | — | ||||||||
Distributions reinvested | 70,680 | 36,284 | — | — | ||||||||||||
Cost of shares redeemed | (181,128 | ) | (313,018 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 9,098 | $ | (141,117 | ) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 2,759,027 | $ | 1,524,765 | $ | 834,134 | $ | 709,194 | ||||||||
Distributions reinvested | 777,436 | 247,230 | 86,745 | 110,853 | ||||||||||||
Cost of shares redeemed | (1,737,767 | ) | (541,844 | ) | (1,772,696 | ) | (2,547,572 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 1,798,696 | $ | 1,230,151 | $ | (851,817 | ) | $ | (1,727,525 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 102,375 | $ | 127,956 | $ | (1,539,735 | ) | $ | (2,007,733 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Equity Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
58 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan U.S. Equity Fund | JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 13,038 | 20,933 | 1,931 | 4,005 | ||||||||||||
Reinvested | 6,310 | 3,752 | 139 | 270 | ||||||||||||
Redeemed | (24,809 | ) | (43,000 | ) | (8,885 | ) | (10,536 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (5,461 | ) | (18,315 | ) | (6,815 | ) | (6,261 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 3,347 | 4,975 | — | — | ||||||||||||
Reinvested | 1,416 | 820 | — | — | ||||||||||||
Redeemed | (6,567 | ) | (7,063 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (1,804 | ) | (1,268 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 28,752 | 26,126 | 1,498 | 3,033 | ||||||||||||
Reinvested | 7,333 | 2,981 | 119 | 164 | ||||||||||||
Redeemed | (25,267 | ) | (25,112 | ) | (3,348 | ) | (3,949 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 10,818 | 3,995 | (1,731 | ) | (752 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | 18,949 | 47,022 | 3,285 | 5,950 | ||||||||||||
Reinvested | 7,871 | 8,680 | 259 | 460 | ||||||||||||
Redeemed | (139,241 | ) | (110,101 | ) | (19,517 | ) | (11,410 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | (112,421 | ) | (54,399 | ) | (15,973 | ) | (5,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 2,553 | 4,921 | — | — | ||||||||||||
Reinvested | 1,239 | 558 | — | — | ||||||||||||
Redeemed | (4,154 | ) | (3,877 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (362 | ) | 1,602 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Issued | 2,508 | 1,621 | — | — | ||||||||||||
Reinvested | 250 | 3 | — | — | ||||||||||||
Redeemed | (610 | ) | (34 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 2,148 | 1,590 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Issued | 621 | 65 | — | — | ||||||||||||
Reinvested | 31 | — | (b) | — | — | |||||||||||
Redeemed | (79 | ) | — | (b) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 573 | 65 | — | — | ||||||||||||
|
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|
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|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 7,233 | 9,015 | — | — | ||||||||||||
Reinvested | 4,355 | 2,445 | — | — | ||||||||||||
Redeemed | (10,982 | ) | (21,230 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 606 | (9,770 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 170,342 | 100,747 | 29,946 | 30,002 | ||||||||||||
Reinvested | 47,843 | 16,605 | 3,129 | 4,586 | ||||||||||||
Redeemed | (103,956 | ) | (36,062 | ) | (62,298 | ) | (108,600 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 114,229 | 81,290 | (29,223 | ) | (74,012 | ) | ||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan U.S. Equity Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 59 |
Table of Contents
FOR THE PERIODS INDICATED
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 | ||||||||||||||||||||||
JPMorgan Equity Focus Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 29.09 | $ | 0.08 | $ | 4.23 | $ | 4.31 | $ | (0.01 | ) | $ | (1.56 | ) | $ | (1.57 | ) | |||||||||||
Year Ended June 30, 2017 | 23.73 | (0.01 | ) | 5.70 | 5.69 | (0.01 | ) | (0.32 | ) | (0.33 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 24.78 | (0.01 | ) | (0.38 | ) | (0.39 | ) | — | (d) | (0.66 | ) | (0.66 | ) | |||||||||||||||
Year Ended June 30, 2015 | 23.56 | (0.02 | ) | 1.42 | 1.40 | (0.02 | ) | (0.16 | ) | (0.18 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 19.18 | (0.02 | ) | 4.86 | 4.84 | — | (0.46 | ) | (0.46 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 28.28 | (0.08 | ) | 4.11 | 4.03 | — | (1.56 | ) | (1.56 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 23.18 | (0.14 | ) | 5.56 | 5.42 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 24.34 | (0.13 | ) | (0.37 | ) | (0.50 | ) | — | (0.66 | ) | (0.66 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 23.24 | (0.13 | ) | 1.39 | 1.26 | — | (0.16 | ) | (0.16 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 19.01 | (0.15 | ) | 4.84 | 4.69 | — | (0.46 | ) | (0.46 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 29.34 | 0.16 | 4.27 | 4.43 | (0.08 | ) | (1.56 | ) | (1.64 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 23.92 | 0.06 | 5.75 | 5.81 | (0.07 | ) | (0.32 | ) | (0.39 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 24.95 | 0.06 | (0.39 | ) | (0.33 | ) | (0.04 | ) | (0.66 | ) | (0.70 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 23.67 | 0.04 | 1.44 | 1.48 | (0.04 | ) | (0.16 | ) | (0.20 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 19.22 | 0.04 | 4.87 | 4.91 | — | (d) | (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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(d) | Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
60 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||||
Net asset | Total return (excludes sales charge) (b) | Net assets, end of period (000’s) | Net expenses (c) | Net investment | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 31.83 | 15.02 | % | $ | 4,077 | 1.11 | % | 0.26 | % | 1.31 | % | 34 | % | |||||||||||||
29.09 | 24.09 | 3,362 | 1.17 | (0.02 | ) | 1.37 | 84 | |||||||||||||||||||
23.73 | (1.60 | ) | 1,937 | 1.24 | (0.03 | ) | 1.55 | 45 | ||||||||||||||||||
24.78 | 5.98 | 1,452 | 1.24 | (0.07 | ) | 1.42 | 52 | |||||||||||||||||||
23.56 | 25.43 | 423 | 1.24 | (0.10 | ) | 2.11 | 76 | |||||||||||||||||||
30.75 | 14.45 | 3,017 | 1.61 | (0.26 | ) | 1.80 | 34 | |||||||||||||||||||
28.28 | 23.49 | 3,331 | 1.66 | (0.51 | ) | 1.86 | 84 | |||||||||||||||||||
23.18 | (2.10 | ) | 1,268 | 1.74 | (0.54 | ) | 1.96 | 45 | ||||||||||||||||||
24.34 | 5.44 | 873 | 1.74 | (0.54 | ) | 1.93 | 52 | |||||||||||||||||||
23.24 | 24.86 | 133 | 1.74 | (0.67 | ) | 2.82 | 76 | |||||||||||||||||||
32.13 | 15.31 | 246,276 | 0.86 | 0.52 | 1.03 | 34 | ||||||||||||||||||||
29.34 | 24.43 | 180,151 | 0.92 | 0.23 | 1.10 | 84 | ||||||||||||||||||||
23.92 | (1.37 | ) | 136,284 | 0.99 | 0.24 | 1.11 | 45 | |||||||||||||||||||
24.95 | 6.26 | 81,179 | 0.99 | 0.15 | 1.12 | 52 | ||||||||||||||||||||
23.67 | 25.75 | 72,064 | 0.99 | 0.19 | 1.51 | 76 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 61 |
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 gains | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Equity Income Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 15.67 | $ | 0.26 | (e) | $ | 1.29 | $ | 1.55 | $ | (0.25 | ) | $ | (0.15 | ) | $ | (0.40 | ) | ||||||||||
Year Ended June 30, 2017 | 14.01 | 0.24 | (e) | 1.75 | 1.99 | (0.24 | ) | (0.09 | ) | (0.33 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.77 | 0.25 | (e) | 0.35 | 0.60 | (0.25 | ) | (0.11 | ) | (0.36 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.66 | 0.25 | 0.39 | 0.64 | (0.25 | ) | (0.28 | ) | (0.53 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.62 | 0.21 | (e) | 2.26 | 2.47 | (0.21 | ) | (0.22 | ) | (0.43 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.41 | 0.17 | (e) | 1.26 | 1.43 | (0.19 | ) | (0.15 | ) | (0.34 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.80 | 0.16 | (e) | 1.72 | 1.88 | (0.18 | ) | (0.09 | ) | (0.27 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.58 | 0.18 | (e) | 0.35 | 0.53 | (0.20 | ) | (0.11 | ) | (0.31 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.49 | 0.18 | 0.38 | 0.56 | (0.19 | ) | (0.28 | ) | (0.47 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.49 | 0.15 | (e) | 2.23 | 2.38 | (0.16 | ) | (0.22 | ) | (0.38 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.92 | 0.31 | (e) | 1.31 | 1.62 | (0.29 | ) | (0.15 | ) | (0.44 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 14.23 | 0.28 | (e) | 1.77 | 2.05 | (0.27 | ) | (0.09 | ) | (0.36 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.97 | 0.28 | (e) | 0.37 | 0.65 | (0.28 | ) | (0.11 | ) | (0.39 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.85 | 0.29 | 0.40 | 0.69 | (0.29 | ) | (0.28 | ) | (0.57 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.77 | 0.25 | (e) | 2.29 | 2.54 | (0.24 | ) | (0.22 | ) | (0.46 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.62 | 0.21 | (e) | 1.28 | 1.49 | (0.22 | ) | (0.15 | ) | (0.37 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.97 | 0.20 | (e) | 1.75 | 1.95 | (0.21 | ) | (0.09 | ) | (0.30 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.74 | 0.21 | (e) | 0.35 | 0.56 | (0.22 | ) | (0.11 | ) | (0.33 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.64 | 0.22 | 0.39 | 0.61 | (0.23 | ) | (0.28 | ) | (0.51 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.61 | 0.18 | (e) | 2.25 | 2.43 | (0.18 | ) | (0.22 | ) | (0.40 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.66 | 0.27 | (e) | 1.27 | 1.54 | (0.25 | ) | (0.15 | ) | (0.40 | ) | |||||||||||||||||
September 9, 2016 (f) through June 30, 2017 | �� | 14.06 | 0.19 | (e) | 1.71 | 1.90 | (0.21 | ) | (0.09 | ) | (0.30 | ) | ||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.92 | 0.32 | (e) | 1.29 | 1.61 | (0.29 | ) | (0.15 | ) | (0.44 | ) | |||||||||||||||||
September 9, 2016 (f) through June 30, 2017 | 14.28 | 0.29 | (e) | 1.67 | 1.96 | (0.23 | ) | (0.09 | ) | (0.32 | ) | |||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.93 | 0.34 | (e) | 1.30 | 1.64 | (0.31 | ) | (0.15 | ) | (0.46 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 14.23 | 0.31 | (e) | 1.78 | 2.09 | (0.30 | ) | (0.09 | ) | (0.39 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.98 | 0.31 | (e) | 0.35 | 0.66 | (0.30 | ) | (0.11 | ) | (0.41 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.85 | 0.31 | 0.41 | 0.72 | (0.31 | ) | (0.28 | ) | (0.59 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.78 | 0.27 | (e) | 2.29 | 2.56 | (0.27 | ) | (0.22 | ) | (0.49 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.92 | 0.35 | (e) | 1.31 | 1.66 | (0.33 | ) | (0.15 | ) | (0.48 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 14.22 | 0.32 | (e) | 1.78 | 2.10 | (0.31 | ) | (0.09 | ) | (0.40 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 13.97 | 0.33 | (e) | 0.34 | 0.67 | (0.31 | ) | (0.11 | ) | (0.42 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 13.84 | 0.33 | 0.40 | 0.73 | (0.32 | ) | (0.28 | ) | (0.60 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.77 | 0.28 | (e) | 2.28 | 2.56 | (0.27 | ) | (0.22 | ) | (0.49 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(e) | Calculated based upon average shares outstanding. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
62 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets (a) | ||||||||||||||||||||||||||
Net asset | Total return (excludes sales charge) (b)(c) | Net assets, end of period (000’s) | Net expenses (d) | Net income | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (b) | ||||||||||||||||||||
$ | 16.82 | 9.94 | % | $ | 3,022,879 | 1.00 | % | 1.55 | % | 1.01 | % | 20 | % | |||||||||||||
15.67 | 14.34 | 3,176,361 | 1.04 | 1.59 | 1.08 | 14 | ||||||||||||||||||||
14.01 | 4.45 | 3,370,383 | 1.04 | 1.83 | 1.11 | 20 | ||||||||||||||||||||
13.77 | 4.71 | 3,014,937 | 1.04 | 1.83 | 1.09 | 22 | ||||||||||||||||||||
13.66 | 21.60 | 2,360,750 | 1.04 | 1.68 | 1.06 | 20 | ||||||||||||||||||||
16.50 | 9.35 | 1,303,731 | 1.50 | 1.05 | 1.50 | 20 | ||||||||||||||||||||
15.41 | 13.74 | 1,385,115 | 1.54 | 1.09 | 1.55 | 14 | ||||||||||||||||||||
13.80 | 4.01 | 1,304,007 | 1.54 | 1.33 | 1.58 | 20 | ||||||||||||||||||||
13.58 | 4.18 | 1,160,002 | 1.54 | 1.32 | 1.56 | 22 | ||||||||||||||||||||
13.49 | 20.95 | 805,494 | 1.54 | 1.19 | 1.56 | 20 | ||||||||||||||||||||
17.10 | 10.22 | 6,320,979 | 0.74 | 1.81 | 0.75 | 20 | ||||||||||||||||||||
15.92 | 14.57 | 6,542,906 | 0.78 | 1.84 | 0.79 | 14 | ||||||||||||||||||||
14.23 | 4.75 | 4,679,200 | 0.79 | 2.07 | 0.81 | 20 | ||||||||||||||||||||
13.97 | 4.96 | 4,639,250 | 0.79 | 2.08 | 0.80 | 22 | ||||||||||||||||||||
13.85 | 21.94 | 3,467,542 | 0.79 | 1.92 | 0.81 | 20 | ||||||||||||||||||||
16.74 | 9.59 | 80,330 | 1.26 | 1.29 | 1.26 | 20 | ||||||||||||||||||||
15.62 | 14.08 | 87,437 | 1.29 | 1.34 | 1.39 | 14 | ||||||||||||||||||||
13.97 | 4.20 | 77,230 | 1.29 | 1.59 | 1.45 | 20 | ||||||||||||||||||||
13.74 | 4.44 | 56,522 | 1.29 | 1.59 | 1.39 | 22 | ||||||||||||||||||||
13.64 | 21.27 | 28,733 | 1.29 | 1.44 | 1.31 | 20 | ||||||||||||||||||||
16.80 | 9.90 | 91,267 | 0.99 | 1.61 | 0.99 | 20 | ||||||||||||||||||||
15.66 | 13.62 | 25,209 | 1.03 | 1.55 | 1.05 | 14 | ||||||||||||||||||||
17.09 | 10.18 | 23,451 | 0.74 | 1.90 | 0.75 | 20 | ||||||||||||||||||||
15.92 | 13.85 | 1,340 | 0.78 | 2.28 | 0.83 | 14 | ||||||||||||||||||||
17.11 | 10.38 | 1,097,476 | 0.59 | 1.98 | 0.60 | 20 | ||||||||||||||||||||
15.93 | 14.84 | 912,746 | 0.58 | 2.05 | 0.63 | 14 | ||||||||||||||||||||
14.23 | 4.89 | 722,424 | 0.59 | 2.28 | 0.64 | 20 | ||||||||||||||||||||
13.98 | 5.23 | 520,660 | 0.59 | 2.27 | 0.63 | 22 | ||||||||||||||||||||
13.85 | 22.06 | 307,700 | 0.59 | 2.11 | 0.61 | 20 | ||||||||||||||||||||
17.10 | 10.49 | 5,314,382 | 0.49 | 2.08 | 0.50 | 20 | ||||||||||||||||||||
15.92 | 14.95 | 2,821,798 | 0.50 | 2.13 | 0.50 | 14 | ||||||||||||||||||||
14.22 | 4.98 | 1,913,077 | 0.50 | 2.43 | 0.50 | 20 | ||||||||||||||||||||
13.97 | 5.31 | 861,809 | 0.51 | 2.35 | 0.51 | 22 | ||||||||||||||||||||
13.84 | 22.14 | 551,378 | 0.54 | 2.20 | 0.56 | 20 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 63 |
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 | ||||||||||||||||||||||
JPMorgan Growth and Income Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 46.85 | $ | 0.64 | $ | 4.98 | $ | 5.62 | $ | (0.62 | ) | $ | (2.08 | ) | $ | (2.70 | ) | |||||||||||
Year Ended June 30, 2017 | 42.75 | 0.57 | 6.31 | 6.88 | (0.57 | ) | (2.21 | ) | (2.78 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 45.46 | 0.59 | (0.27 | ) | 0.32 | (0.55 | ) | (2.48 | ) | (3.03 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 44.70 | 0.59 | 1.72 | 2.31 | (0.56 | ) | (0.99 | ) | (1.55 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 36.53 | 0.47 | 8.17 | 8.64 | (0.47 | ) | — | (0.47 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 42.54 | 0.35 | 4.51 | 4.86 | (0.41 | ) | (2.08 | ) | (2.49 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 39.07 | 0.31 | 5.76 | 6.07 | (0.39 | ) | (2.21 | ) | (2.60 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 41.83 | 0.35 | (0.25 | ) | 0.10 | (0.38 | ) | (2.48 | ) | (2.86 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 41.31 | 0.32 | 1.59 | 1.91 | (0.40 | ) | (0.99 | ) | (1.39 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 33.83 | 0.25 | 7.55 | 7.80 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.21 | 0.81 | 5.21 | 6.02 | (0.74 | ) | (2.08 | ) | (2.82 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 44.77 | 0.72 | 6.62 | 7.34 | (0.69 | ) | (2.21 | ) | (2.90 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 47.45 | 0.73 | (0.27 | ) | 0.46 | (0.66 | ) | (2.48 | ) | (3.14 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 46.58 | 0.73 | 1.79 | 2.52 | (0.66 | ) | (0.99 | ) | (1.65 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 38.03 | 0.58 | 8.52 | 9.10 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 47.06 | 0.53 | 4.99 | 5.52 | (0.52 | ) | (2.08 | ) | (2.60 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 42.94 | 0.46 | 6.33 | 6.79 | (0.46 | ) | (2.21 | ) | (2.67 | ) | ||||||||||||||||||
November 2, 2015 (f) through June 30, 2016 | 45.92 | 0.40 | (0.70 | ) | (0.30 | ) | (0.20 | ) | (2.48 | ) | (2.68 | ) | ||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
July 31, 2017 (f) through June 30, 2018 | 49.99 | 0.68 | 4.46 | 5.14 | (0.64 | ) | (2.08 | ) | (2.72 | ) | ||||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
July 31, 2017 (f) through June 30, 2018 | 49.99 | 0.79 | 4.46 | 5.25 | (0.75 | ) | (2.08 | ) | (2.83 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.50 | 0.91 | 5.23 | 6.14 | (0.82 | ) | (2.08 | ) | (2.90 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 45.01 | 0.83 | 6.65 | 7.48 | (0.78 | ) | (2.21 | ) | (2.99 | ) | ||||||||||||||||||
November 2, 2015 (f) through June 30, 2016 | 47.95 | 0.62 | (0.73 | ) | (0.11 | ) | (0.35 | ) | (2.48 | ) | (2.83 | ) | ||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 49.50 | 1.04 | 5.16 | 6.20 | (0.87 | ) | (2.08 | ) | (2.95 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 45.01 | 0.81 | 6.69 | 7.50 | (0.80 | ) | (2.21 | ) | (3.01 | ) | ||||||||||||||||||
November 2, 2015 (f) through June 30, 2016 | 47.95 | 0.63 | (0.72 | ) | (0.09 | ) | (0.37 | ) | (2.48 | ) | (2.85 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
64 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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 | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 49.77 | 12.04 | % | $ | 476,090 | 0.97 | % | 1.29 | % | 1.08 | % | 32 | % | |||||||||||||
46.85 | 16.34 | 445,078 | 1.03 | 1.26 | 1.10 | 28 | ||||||||||||||||||||
42.75 | 1.02 | 422,151 | 1.06 | 1.38 | 1.13 | 39 | ||||||||||||||||||||
45.46 | 5.24 | 434,573 | 1.10 | 1.30 | 1.10 | 39 | ||||||||||||||||||||
44.70 | 23.74 | 419,465 | 1.13 | 1.16 | 1.15 | 42 | ||||||||||||||||||||
44.91 | 11.45 | 23,034 | 1.47 | 0.77 | 1.55 | 32 | ||||||||||||||||||||
42.54 | 15.76 | 28,290 | 1.53 | 0.76 | 1.59 | 28 | ||||||||||||||||||||
39.07 | 0.54 | 25,541 | 1.56 | 0.89 | 1.62 | 39 | ||||||||||||||||||||
41.83 | 4.68 | 24,647 | 1.62 | 0.77 | 1.63 | 39 | ||||||||||||||||||||
41.31 | 23.12 | 14,619 | 1.64 | 0.66 | 1.65 | 42 | ||||||||||||||||||||
52.41 | 12.29 | 77,737 | 0.72 | 1.55 | 0.79 | 32 | ||||||||||||||||||||
49.21 | 16.64 | 64,148 | 0.78 | 1.50 | 0.83 | 28 | ||||||||||||||||||||
44.77 | 1.28 | 40,068 | 0.81 | 1.64 | 0.86 | 39 | ||||||||||||||||||||
47.45 | 5.48 | 36,099 | 0.88 | 1.53 | 0.88 | 39 | ||||||||||||||||||||
46.58 | 24.05 | 27,124 | 0.89 | 1.39 | 0.90 | 42 | ||||||||||||||||||||
49.98 | 11.76 | 41 | 1.21 | 1.06 | 1.49 | 32 | ||||||||||||||||||||
47.06 | 16.04 | 23 | 1.28 | 1.01 | 2.06 | 28 | ||||||||||||||||||||
42.94 | (0.40 | ) | 20 | 1.28 | 1.44 | 3.72 | 39 | |||||||||||||||||||
52.41 | 10.33 | 22 | 0.94 | 1.42 | 1.12 | 32 | ||||||||||||||||||||
52.41 | 10.56 | 22 | 0.71 | 1.64 | 0.87 | 32 | ||||||||||||||||||||
52.74 | 12.48 | 43 | 0.55 | 1.72 | 0.80 | 32 | ||||||||||||||||||||
49.50 | 16.88 | 37 | 0.59 | 1.72 | 1.23 | 28 | ||||||||||||||||||||
45.01 | 0.05 | 20 | 0.59 | 2.14 | 3.02 | 39 | ||||||||||||||||||||
52.75 | 12.59 | 33,774 | 0.44 | 1.95 | 0.52 | 32 | ||||||||||||||||||||
49.50 | 16.94 | 2,129 | 0.53 | 1.66 | 0.55 | 28 | ||||||||||||||||||||
45.01 | 0.08 | 20 | 0.53 | 2.19 | 2.96 | 39 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 65 |
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 | Return of capital | Total distributions | ||||||||||||||||||||||
JPMorgan Hedged Equity Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 18.24 | $ | 0.18 | (e) | $ | 1.15 | $ | 1.33 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | |||||||||||
Year Ended June 30, 2017 | 16.23 | 0.19 | (e) | 2.01 | 2.20 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.47 | 0.20 | (e) | (0.28 | ) | (0.08 | ) | (0.16 | ) | — | (0.16 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.74 | 0.19 | (e) | 0.67 | 0.86 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||
December 13, 2013 (g) through June 30, 2014 | 15.00 | 0.07 | 0.84 | 0.91 | (0.07 | ) | (0.10 | ) | (0.17 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.16 | 0.08 | (e) | 1.15 | 1.23 | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 16.17 | 0.10 | (e) | 2.01 | 2.11 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.43 | 0.13 | (e) | (0.29 | ) | (0.16 | ) | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.76 | 0.10 | (e) | 0.67 | 0.77 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||
December 13, 2013 (g) through June 30, 2014 | 15.00 | 0.05 | 0.83 | 0.88 | (0.02 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.27 | 0.23 | (e) | 1.16 | 1.39 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 16.26 | 0.23 | (e) | 2.01 | 2.24 | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.50 | 0.25 | (e) | (0.28 | ) | (0.03 | ) | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.76 | 0.23 | (e) | 0.66 | 0.89 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||
December 13, 2013 (g) through June 30, 2014 | 15.00 | 0.10 | 0.84 | 0.94 | (0.08 | ) | (0.10 | ) | (0.18 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.30 | 0.26 | (e) | 1.16 | 1.42 | (0.22 | ) | — | (0.22 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 16.28 | 0.26 | (e) | 2.02 | 2.28 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.51 | 0.24 | (e) | (0.24 | ) | — | (h) | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.76 | 0.26 | (e) | 0.66 | 0.92 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||
December 13, 2013 (g) through June 30, 2014 | 15.00 | 0.13 | 0.82 | 0.95 | (0.09 | ) | (0.10 | ) | (0.19 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.29 | 0.27 | (e) | 1.16 | 1.43 | (0.23 | ) | — | (0.23 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 16.28 | 0.25 | (e) | 2.03 | 2.28 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.52 | 0.27 | (e) | (0.27 | ) | — | (h) | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 15.76 | 0.27 | (e) | 0.67 | 0.94 | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||||
December 13, 2013 (g) through June 30, 2014 | 15.00 | 0.13 | 0.83 | 0.96 | (0.10 | ) | (0.10 | ) | (0.20 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(e) | Calculated based upon average shares outstanding. |
(f) | Certain non-recurring expenses incurred by the Fund were not annualized for the year ended June 30, 2015 and for the period ended June 30, 2014. |
(g) | Commencement of operations. |
(h) | Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
66 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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 income | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (b) | ||||||||||||||||||||
$ | 19.43 | 7.33 | % | $ | 277,898 | 0.84 | % | 0.92 | % | 0.87 | % | 44 | % | |||||||||||||
18.24 | 13.60 | 133,789 | 0.84 | 1.06 | 1.05 | 31 | ||||||||||||||||||||
16.23 | (0.43 | ) | 71,417 | 0.85 | 1.27 | 1.11 | 57 | |||||||||||||||||||
16.47 | 5.45 | 93,007 | 0.85 | (f) | 1.14 | (f) | 1.21 | (f) | 42 | |||||||||||||||||
15.74 | 6.11 | 569 | 0.85 | (f) | 0.96 | (f) | 16.65 | (f) | 36 | |||||||||||||||||
19.33 | 6.79 | 81,030 | 1.34 | 0.42 | 1.38 | 44 | ||||||||||||||||||||
18.16 | 13.07 | 29,168 | 1.34 | 0.55 | 1.45 | 31 | ||||||||||||||||||||
16.17 | (0.95 | ) | 9,867 | 1.35 | 0.80 | 1.52 | 57 | |||||||||||||||||||
16.43 | 4.85 | 3,405 | 1.35 | (f) | 0.59 | (f) | 1.65 | (f) | 42 | |||||||||||||||||
15.76 | 5.87 | 53 | 1.35 | (f) | 0.56 | (f) | 10.04 | (f) | 36 | |||||||||||||||||
19.47 | 7.63 | 1,947,444 | 0.59 | 1.17 | 0.62 | 44 | ||||||||||||||||||||
18.27 | 13.86 | 597,013 | 0.59 | 1.30 | 0.69 | 31 | ||||||||||||||||||||
16.26 | (0.17 | ) | 158,820 | 0.60 | 1.54 | 0.74 | 57 | |||||||||||||||||||
16.50 | 5.66 | 105,397 | 0.60 | (f) | 1.39 | (f) | 0.91 | (f) | 42 | |||||||||||||||||
15.76 | 6.28 | 4,307 | 0.60 | (f) | 1.30 | (f) | 9.91 | (f) | 36 | |||||||||||||||||
19.50 | 7.81 | 123 | 0.39 | 1.37 | 0.67 | 44 | ||||||||||||||||||||
18.30 | 14.10 | 37 | 0.40 | 1.51 | 1.08 | 31 | ||||||||||||||||||||
16.28 | 0.07 | 25 | 0.40 | 1.49 | 2.16 | 57 | ||||||||||||||||||||
16.51 | 5.86 | 442 | 0.40 | (f) | 1.58 | (f) | 0.82 | (f) | 42 | |||||||||||||||||
15.76 | 6.37 | 53 | 0.40 | (f) | 1.51 | (f) | 9.10 | (f) | 36 | |||||||||||||||||
19.49 | 7.87 | 121,897 | 0.34 | 1.42 | 0.42 | 44 | ||||||||||||||||||||
18.29 | 14.09 | 3,289 | 0.34 | 1.41 | 0.42 | 31 | ||||||||||||||||||||
16.28 | 0.07 | 74 | 0.35 | 1.66 | 1.40 | 57 | ||||||||||||||||||||
16.52 | 5.96 | 443 | 0.35 | (f) | 1.63 | (f) | 0.77 | (f) | 42 | |||||||||||||||||
15.76 | 6.39 | 53 | 0.35 | (f) | 1.56 | (f) | 9.05 | (f) | 36 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 67 |
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 realized gain | ||||||||||||||||
JPMorgan Large Cap Growth Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended June 30, 2018 | $ | 38.23 | $ | (0.10 | ) | $ | 9.92 | $ | 9.82 | $ | (5.61 | ) | ||||||||
Year Ended June 30, 2017 | 32.93 | (0.07 | ) | 8.51 | 8.44 | (3.14 | ) | |||||||||||||
Year Ended June 30, 2016 | 36.82 | (0.06 | ) | (2.23 | ) | (2.29 | ) | (1.60 | ) | |||||||||||
Year Ended June 30, 2015 | 32.49 | (0.10 | ) | 5.05 | 4.95 | (0.62 | ) | |||||||||||||
Year Ended June 30, 2014 | 26.01 | (0.10 | ) | 6.58 | 6.48 | — | ||||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 31.95 | (0.25 | ) | 8.11 | 7.86 | (5.61 | ) | |||||||||||||
Year Ended June 30, 2017 | 28.15 | (0.20 | ) | 7.14 | 6.94 | (3.14 | ) | |||||||||||||
Year Ended June 30, 2016 | 31.86 | (0.20 | ) | (1.91 | ) | (2.11 | ) | (1.60 | ) | |||||||||||
Year Ended June 30, 2015 | 28.33 | (0.24 | ) | 4.39 | 4.15 | (0.62 | ) | |||||||||||||
Year Ended June 30, 2014 | 22.79 | (0.22 | ) | 5.76 | 5.54 | — | ||||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 38.47 | (0.01 | ) | 10.01 | 10.00 | (5.61 | ) | |||||||||||||
Year Ended June 30, 2017 | 33.08 | (0.02 | ) | 8.55 | 8.53 | (3.14 | ) | |||||||||||||
Year Ended June 30, 2016 | 36.92 | (0.01 | ) | (2.23 | ) | (2.24 | ) | (1.60 | ) | |||||||||||
Year Ended June 30, 2015 | 32.52 | (0.04 | ) | 5.06 | 5.02 | (0.62 | ) | |||||||||||||
Year Ended June 30, 2014 | 25.99 | (0.05 | ) | 6.58 | 6.53 | — | ||||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended June 30, 2018 | 37.33 | (0.20 | ) | 9.65 | 9.45 | (5.61 | ) | |||||||||||||
Year Ended June 30, 2017 | 32.31 | (0.16 | ) | 8.32 | 8.16 | (3.14 | ) | |||||||||||||
Year Ended June 30, 2016 | 36.24 | (0.15 | ) | (2.18 | ) | (2.33 | ) | (1.60 | ) | |||||||||||
Year Ended June 30, 2015 | 32.07 | (0.18 | ) | 4.97 | 4.79 | (0.62 | ) | |||||||||||||
Year Ended June 30, 2014 | 25.74 | (0.18 | ) | 6.51 | 6.33 | — | ||||||||||||||
Class R3 | ||||||||||||||||||||
Year Ended June 30, 2018 | 38.39 | (0.08 | ) | 9.94 | 9.86 | (5.61 | ) | |||||||||||||
September 9, 2016 (f) through June 30, 2017 | 33.97 | (0.06 | ) | 7.62 | 7.56 | (3.14 | ) | |||||||||||||
Class R4 | ||||||||||||||||||||
Year Ended June 30, 2018 | 38.47 | 0.01 | 9.98 | 9.99 | (5.61 | ) | ||||||||||||||
September 9, 2016 (f) through June 30, 2017 | 33.97 | 0.04 | 7.60 | 7.64 | (3.14 | ) | ||||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended June 30, 2018 | 39.04 | 0.06 | 10.16 | 10.22 | (5.61 | ) | ||||||||||||||
Year Ended June 30, 2017 | 33.46 | 0.05 | 8.67 | 8.72 | (3.14 | ) | ||||||||||||||
Year Ended June 30, 2016 | 37.25 | 0.06 | (2.25 | ) | (2.19 | ) | (1.60 | ) | ||||||||||||
Year Ended June 30, 2015 | 32.75 | 0.03 | 5.09 | 5.12 | (0.62 | ) | ||||||||||||||
Year Ended June 30, 2014 | 26.12 | 0.01 | 6.62 | 6.63 | — | |||||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended June 30, 2018 | 39.23 | 0.10 | 10.23 | 10.33 | (5.61 | ) | ||||||||||||||
Year Ended June 30, 2017 | 33.58 | 0.09 | 8.70 | 8.79 | (3.14 | ) | ||||||||||||||
Year Ended June 30, 2016 | 37.34 | 0.10 | (2.26 | ) | (2.16 | ) | (1.60 | ) | ||||||||||||
Year Ended June 30, 2015 | 32.80 | 0.06 | 5.10 | 5.16 | (0.62 | ) | ||||||||||||||
Year Ended June 30, 2014 | 26.15 | 0.02 | 6.63 | 6.65 | — |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
68 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 42.44 | 28.45 | % | $ | 2,481,816 | 0.97 | % | (0.25 | )% | 1.11 | % | 24 | % | |||||||||||||
38.23 | 27.50 | 2,462,957 | 1.05 | (0.19 | ) | 1.25 | 22 | |||||||||||||||||||
32.93 | (6.45 | ) | 4,251,242 | 1.04 | (0.17 | ) | 1.27 | 43 | ||||||||||||||||||
36.82 | 15.40 | 4,670,460 | 1.06 | (0.28 | ) | 1.21 | 19 | |||||||||||||||||||
32.49 | 24.91 | 5,044,428 | 1.10 | (0.34 | ) | 1.19 | 39 | |||||||||||||||||||
34.20 | 27.83 | 534,199 | 1.47 | (0.75 | ) | 1.60 | 24 | |||||||||||||||||||
31.95 | 26.79 | 487,702 | 1.55 | (0.69 | ) | 1.67 | 22 | |||||||||||||||||||
28.15 | (6.90 | ) | 559,238 | 1.55 | (0.67 | ) | 1.69 | 43 | ||||||||||||||||||
31.86 | 14.83 | 600,404 | 1.56 | (0.78 | ) | 1.68 | 19 | |||||||||||||||||||
28.33 | 24.31 | 523,972 | 1.59 | (0.85 | ) | 1.69 | 39 | |||||||||||||||||||
42.86 | 28.77 | 4,413,908 | 0.74 | (0.03 | ) | 0.85 | 24 | |||||||||||||||||||
38.47 | 27.65 | 4,771,428 | 0.89 | (0.05 | ) | 0.90 | 22 | |||||||||||||||||||
33.08 | (6.29 | ) | 4,161,010 | 0.89 | (0.04 | ) | 0.93 | 43 | ||||||||||||||||||
36.92 | 15.60 | 5,515,626 | 0.90 | (0.12 | ) | 0.92 | 19 | |||||||||||||||||||
32.52 | 25.13 | 5,037,737 | 0.93 | (0.18 | ) | 0.94 | 39 | |||||||||||||||||||
41.17 | 28.11 | 156,775 | 1.24 | (0.52 | ) | 1.35 | 24 | |||||||||||||||||||
37.33 | 27.14 | 147,902 | 1.31 | (0.46 | ) | 1.47 | 22 | |||||||||||||||||||
32.31 | (6.67 | ) | 192,560 | 1.30 | (0.43 | ) | 1.55 | 43 | ||||||||||||||||||
36.24 | 15.10 | 242,550 | 1.31 | (0.53 | ) | 1.49 | 19 | |||||||||||||||||||
32.07 | 24.59 | 222,421 | 1.35 | (0.60 | ) | 1.44 | 39 | |||||||||||||||||||
42.64 | 28.43 | 6,865 | 0.96 | (0.21 | ) | 1.10 | 24 | |||||||||||||||||||
38.39 | 24.05 | 992 | 1.12 | (0.20 | ) | 1.20 | 22 | |||||||||||||||||||
42.85 | 28.74 | 5,930 | 0.73 | 0.02 | 0.85 | 24 | ||||||||||||||||||||
38.47 | 24.31 | 440 | 0.89 | 0.12 | 1.07 | 22 | ||||||||||||||||||||
43.65 | 28.93 | 788,766 | 0.59 | 0.14 | 0.70 | 24 | ||||||||||||||||||||
39.04 | 27.92 | 799,190 | 0.70 | 0.15 | 0.72 | 22 | ||||||||||||||||||||
33.46 | (6.10 | ) | 1,209,521 | 0.69 | 0.17 | 0.73 | 43 | |||||||||||||||||||
37.25 | 15.80 | 1,394,419 | 0.70 | 0.08 | 0.74 | 19 | ||||||||||||||||||||
32.75 | 25.38 | 1,400,112 | 0.73 | 0.02 | 0.74 | 39 | ||||||||||||||||||||
43.95 | 29.08 | 5,962,328 | 0.48 | 0.24 | 0.60 | 24 | ||||||||||||||||||||
39.23 | 28.03 | 3,606,093 | 0.60 | 0.25 | 0.60 | 22 | ||||||||||||||||||||
33.58 | (6.00 | ) | 3,330,565 | 0.60 | 0.28 | 0.60 | 43 | |||||||||||||||||||
37.34 | 15.90 | 3,220,191 | 0.62 | 0.17 | 0.62 | 19 | ||||||||||||||||||||
32.80 | 25.43 | 2,709,590 | 0.68 | 0.07 | 0.69 | 39 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 69 |
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 | ||||||||||||||||||||||
JPMorgan Large Cap Value Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 15.48 | $ | 0.15 | $ | 0.89 | $ | 1.04 | $ | (0.13 | ) | $ | (1.28 | ) | $ | (1.41 | ) | |||||||||||
Year Ended June 30, 2017 | 12.71 | 0.15 | 3.42 | 3.57 | (0.14 | ) | (0.66 | ) | (0.80 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 15.02 | 0.17 | (0.59 | ) | (0.42 | ) | (0.16 | ) | (1.73 | ) | (1.89 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.63 | 0.17 | 0.94 | 1.11 | (0.17 | ) | (2.55 | ) | (2.72 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.99 | 0.17 | 3.16 | 3.33 | (0.18 | ) | (0.51 | ) | (0.69 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 14.93 | 0.06 | 0.86 | 0.92 | (0.06 | ) | (1.28 | ) | (1.34 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 12.30 | 0.07 | 3.30 | 3.37 | (0.08 | ) | (0.66 | ) | (0.74 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 14.60 | 0.10 | (0.58 | ) | (0.48 | ) | (0.09 | ) | (1.73 | ) | (1.82 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.25 | 0.08 | 0.92 | 1.00 | (0.10 | ) | (2.55 | ) | (2.65 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.70 | 0.09 | 3.08 | 3.17 | (0.11 | ) | (0.51 | ) | (0.62 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.24 | 0.18 | 0.87 | 1.05 | (0.16 | ) | (1.28 | ) | (1.44 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 12.53 | 0.17 | 3.37 | 3.54 | (0.17 | ) | (0.66 | ) | (0.83 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 14.79 | 0.15 | (0.54 | ) | (0.39 | ) | (0.14 | ) | (1.73 | ) | (1.87 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.42 | 0.19 | 0.92 | 1.11 | (0.19 | ) | (2.55 | ) | (2.74 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.82 | 0.19 | 3.11 | 3.30 | (0.19 | ) | (0.51 | ) | (0.70 | ) | ||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.39 | 0.11 | 0.86 | 0.97 | (0.09 | ) | (1.28 | ) | (1.37 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 12.64 | 0.10 | 3.41 | 3.51 | (0.10 | ) | (0.66 | ) | (0.76 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 14.96 | 0.14 | (0.60 | ) | (0.46 | ) | (0.13 | ) | (1.73 | ) | (1.86 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.58 | 0.13 | 0.94 | 1.07 | (0.14 | ) | (2.55 | ) | (2.69 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.95 | 0.13 | 3.14 | 3.27 | (0.13 | ) | (0.51 | ) | (0.64 | ) | ||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.37 | 0.21 | 0.88 | 1.09 | (0.19 | ) | (1.28 | ) | (1.47 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 12.63 | 0.20 | 3.39 | 3.59 | (0.19 | ) | (0.66 | ) | (0.85 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 14.93 | 0.21 | (0.58 | ) | (0.37 | ) | (0.20 | ) | (1.73 | ) | (1.93 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.54 | 0.22 | 0.94 | 1.16 | (0.22 | ) | (2.55 | ) | (2.77 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.92 | 0.19 | 3.16 | 3.35 | (0.22 | ) | (0.51 | ) | (0.73 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.28 | 0.22 | 0.88 | 1.10 | (0.20 | ) | (1.28 | ) | (1.48 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 12.56 | 0.20 | 3.38 | 3.58 | (0.20 | ) | (0.66 | ) | (0.86 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 14.86 | 0.24 | (0.60 | ) | (0.36 | ) | (0.21 | ) | (1.73 | ) | (1.94 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.48 | 0.25 | 0.91 | 1.16 | (0.23 | ) | (2.55 | ) | (2.78 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.87 | 0.22 | 3.13 | 3.35 | (0.23 | ) | (0.51 | ) | (0.74 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
SEE NOTES TO FINANCIAL STATEMENTS.
70 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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 income | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 15.11 | 6.52 | % | $ | 236,470 | 0.93 | % | 0.92 | % | 1.04 | % | 130 | % | |||||||||||||
15.48 | 28.47 | 215,017 | 0.92 | 1.01 | 1.08 | 145 | ||||||||||||||||||||
12.71 | (2.51 | ) | 96,373 | 0.93 | 1.27 | 1.12 | 219 | |||||||||||||||||||
15.02 | 7.44 | 93,078 | 0.93 | 1.07 | 1.05 | 143 | ||||||||||||||||||||
16.63 | 24.46 | 92,161 | 0.93 | 1.11 | 1.06 | 168 | ||||||||||||||||||||
14.51 | 5.94 | 69,445 | 1.44 | 0.42 | 1.52 | 130 | ||||||||||||||||||||
14.93 | 27.72 | 48,028 | 1.44 | 0.50 | 1.57 | 145 | ||||||||||||||||||||
12.30 | (2.98 | ) | 17,041 | 1.45 | 0.75 | 1.62 | 219 | |||||||||||||||||||
14.60 | 6.88 | 14,307 | 1.45 | 0.55 | 1.55 | 143 | ||||||||||||||||||||
16.25 | 23.78 | 11,646 | 1.44 | 0.59 | 1.56 | 168 | ||||||||||||||||||||
14.85 | 6.74 | 378,058 | 0.70 | 1.19 | 0.77 | 130 | ||||||||||||||||||||
15.24 | 28.61 | 161,494 | 0.79 | 1.15 | 0.80 | 145 | ||||||||||||||||||||
12.53 | (2.34 | ) | 23,373 | 0.77 | 1.07 | 0.77 | 219 | |||||||||||||||||||
14.79 | 7.56 | 634,301 | 0.77 | 1.22 | 0.77 | 143 | ||||||||||||||||||||
16.42 | 24.62 | 662,936 | 0.79 | 1.24 | 0.80 | 168 | ||||||||||||||||||||
14.99 | 6.14 | 17,046 | 1.21 | 0.68 | 1.30 | 130 | ||||||||||||||||||||
15.39 | 28.11 | 6,775 | 1.23 | 0.71 | 1.43 | 145 | ||||||||||||||||||||
12.64 | (2.78 | ) | 3,462 | 1.20 | 1.05 | 1.57 | 219 | |||||||||||||||||||
14.96 | 7.21 | 1,074 | 1.20 | 0.82 | 1.40 | 143 | ||||||||||||||||||||
16.58 | 24.07 | 455 | 1.20 | 0.83 | 1.30 | 168 | ||||||||||||||||||||
14.99 | 6.90 | 23,166 | 0.55 | 1.33 | 0.63 | 130 | ||||||||||||||||||||
15.37 | 28.82 | 10,218 | 0.59 | 1.35 | 0.62 | 145 | ||||||||||||||||||||
12.63 | (2.15 | ) | 4,155 | 0.59 | 1.52 | 0.60 | 219 | |||||||||||||||||||
14.93 | 7.83 | 4,443 | 0.58 | 1.41 | 0.59 | 143 | ||||||||||||||||||||
16.54 | 24.81 | 4,433 | 0.57 | 1.30 | 0.59 | 168 | ||||||||||||||||||||
14.90 | 7.04 | 928,167 | 0.46 | 1.41 | 0.52 | 130 | ||||||||||||||||||||
15.28 | 28.90 | 610,732 | 0.51 | 1.43 | 0.52 | 145 | ||||||||||||||||||||
12.56 | (2.06 | ) | 565,542 | 0.51 | 1.90 | 0.52 | 219 | |||||||||||||||||||
14.86 | 7.85 | 4,145 | 0.53 | 1.54 | 0.53 | 143 | ||||||||||||||||||||
16.48 | 24.89 | 50,923 | 0.54 | 1.48 | 0.55 | 168 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 71 |
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 investment | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan U.S. Equity Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 15.80 | $ | 0.11 | (e) | $ | 1.94 | $ | 2.05 | $ | (0.11 | ) | $ | (1.26 | ) | $ | (1.37 | ) | ||||||||||
Year Ended June 30, 2017 | 13.76 | 0.11 | (e) | 2.57 | 2.68 | (0.11 | ) | (0.53 | ) | (0.64 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.75 | 0.12 | (e) | (0.30 | ) | (0.18 | ) | (0.11 | ) | (0.70 | ) | (0.81 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.92 | 0.13 | 1.10 | 1.23 | (0.13 | ) | (1.27 | ) | (1.40 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.80 | 0.11 | (e) | 3.09 | 3.20 | (0.11 | ) | (0.97 | ) | (1.08 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.37 | 0.03 | (e) | 1.89 | 1.92 | (0.04 | ) | (1.26 | ) | (1.30 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.41 | 0.04 | (e) | 2.49 | 2.53 | (0.04 | ) | (0.53 | ) | (0.57 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.40 | 0.05 | (e) | (0.30 | ) | (0.25 | ) | (0.04 | ) | (0.70 | ) | (0.74 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.61 | 0.07 | 1.06 | 1.13 | (0.07 | ) | (1.27 | ) | (1.34 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.56 | 0.04 | (e) | 3.03 | 3.07 | (0.05 | ) | (0.97 | ) | (1.02 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.83 | 0.15 | (e) | 1.94 | 2.09 | (0.15 | ) | (1.26 | ) | (1.41 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.79 | 0.14 | (e) | 2.57 | 2.71 | (0.14 | ) | (0.53 | ) | (0.67 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.78 | 0.13 | (e) | (0.29 | ) | (0.16 | ) | (0.13 | ) | (0.70 | ) | (0.83 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.94 | 0.16 | 1.11 | 1.27 | (0.16 | ) | (1.27 | ) | (1.43 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.80 | 0.13 | (e) | 3.10 | 3.23 | (0.12 | ) | (0.97 | ) | (1.09 | ) | |||||||||||||||||
Class L | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.85 | 0.17 | (e) | 1.94 | 2.11 | (0.17 | ) | (1.26 | ) | (1.43 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.80 | 0.16 | (e) | 2.58 | 2.74 | (0.16 | ) | (0.53 | ) | (0.69 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.79 | 0.16 | (e) | (0.30 | ) | (0.14 | ) | (0.15 | ) | (0.70 | ) | (0.85 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.96 | 0.19 | 1.09 | 1.28 | (0.18 | ) | (1.27 | ) | (1.45 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.82 | 0.16 | (e) | 3.10 | 3.26 | (0.15 | ) | (0.97 | ) | (1.12 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.68 | 0.07 | (e) | 1.92 | 1.99 | (0.07 | ) | (1.26 | ) | (1.33 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.66 | 0.07 | (e) | 2.55 | 2.62 | (0.07 | ) | (0.53 | ) | (0.60 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.66 | 0.08 | (e) | (0.31 | ) | (0.23 | ) | (0.07 | ) | (0.70 | ) | (0.77 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.84 | 0.10 | 1.09 | 1.19 | (0.10 | ) | (1.27 | ) | (1.37 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.74 | 0.07 | (e) | 3.08 | 3.15 | (0.08 | ) | (0.97 | ) | (1.05 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.76 | 0.11 | (e) | 1.93 | 2.04 | (0.11 | ) | (1.26 | ) | (1.37 | ) | |||||||||||||||||
September 9, 2016 (f) through June 30, 2017 | 14.11 | 0.08 | (e) | 2.24 | 2.32 | (0.14 | ) | (0.53 | ) | (0.67 | ) | |||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.82 | 0.16 | (e) | 1.93 | 2.09 | (0.15 | ) | (1.26 | ) | (1.41 | ) | |||||||||||||||||
September 9, 2016 (f) through June 30, 2017 | 14.15 | 0.13 | (e) | 2.22 | 2.35 | (0.15 | ) | (0.53 | ) | (0.68 | ) | |||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.85 | 0.18 | (e) | 1.95 | 2.13 | (0.18 | ) | (1.26 | ) | (1.44 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.81 | 0.17 | (e) | 2.57 | 2.74 | (0.17 | ) | (0.53 | ) | (0.70 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.80 | 0.18 | (e) | (0.31 | ) | (0.13 | ) | (0.16 | ) | (0.70 | ) | (0.86 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.96 | 0.19 | 1.11 | 1.30 | (0.19 | ) | (1.27 | ) | (1.46 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.82 | 0.16 | (e) | 3.11 | 3.27 | (0.16 | ) | (0.97 | ) | (1.13 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.87 | 0.19 | (e) | 1.95 | 2.14 | (0.19 | ) | (1.26 | ) | (1.45 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 13.82 | 0.18 | (e) | 2.58 | 2.76 | (0.18 | ) | (0.53 | ) | (0.71 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.82 | 0.18 | (e) | (0.31 | ) | (0.13 | ) | (0.17 | ) | (0.70 | ) | (0.87 | ) | |||||||||||||||
Year Ended June 30, 2015 | 14.98 | 0.20 | 1.10 | 1.30 | (0.19 | ) | (1.27 | ) | (1.46 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.83 | 0.17 | (e) | 3.11 | 3.28 | (0.16 | ) | (0.97 | ) | (1.13 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(e) | Calculated based upon average shares outstanding. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
72 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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| 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 | Net expenses (d) | Net investment | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (b) | ||||||||||||||||||||
$ | 16.48 | 13.20 | % | $ | 1,340,858 | 0.94 | % | 0.69 | % | 1.01 | % | 97 | % | |||||||||||||
15.80 | 19.86 | 1,371,821 | 0.94 | 0.75 | 1.10 | 86 | ||||||||||||||||||||
13.76 | (1.15 | ) | 1,446,878 | 0.94 | 0.85 | 1.14 | 83 | |||||||||||||||||||
14.75 | 8.70 | 1,399,208 | 0.95 | 0.92 | 1.10 | 79 | ||||||||||||||||||||
14.92 | 25.90 | 1,172,752 | 0.97 | 0.77 | 1.05 | 73 | ||||||||||||||||||||
15.99 | 12.66 | 302,297 | 1.44 | 0.19 | 1.50 | 97 | ||||||||||||||||||||
15.37 | 19.23 | 318,369 | 1.44 | 0.25 | 1.55 | 86 | ||||||||||||||||||||
13.41 | (1.66 | ) | 294,744 | 1.44 | 0.35 | 1.59 | 83 | |||||||||||||||||||
14.40 | 8.15 | 253,608 | 1.45 | 0.41 | 1.57 | 79 | ||||||||||||||||||||
14.61 | 25.30 | 175,265 | 1.47 | 0.28 | 1.55 | 73 | ||||||||||||||||||||
16.51 | 13.44 | 1,521,535 | 0.71 | 0.92 | 0.75 | 97 | ||||||||||||||||||||
15.83 | 20.05 | 1,287,300 | 0.76 | 0.93 | 0.81 | 86 | ||||||||||||||||||||
13.79 | (1.00 | ) | 1,066,145 | 0.76 | 0.94 | 0.81 | 83 | |||||||||||||||||||
14.78 | 8.92 | 2,375,538 | 0.77 | 1.08 | 0.79 | 79 | ||||||||||||||||||||
14.94 | 26.21 | 2,288,734 | 0.79 | 0.94 | 0.80 | 73 | ||||||||||||||||||||
16.53 | 13.56 | 1,679,995 | 0.57 | 1.05 | 0.60 | 97 | ||||||||||||||||||||
15.85 | 20.27 | 3,391,256 | 0.61 | 1.07 | 0.67 | 86 | ||||||||||||||||||||
13.80 | (0.83 | ) | 3,704,104 | 0.61 | 1.18 | 0.68 | 83 | |||||||||||||||||||
14.79 | 9.01 | 4,932,896 | 0.62 | 1.25 | 0.66 | 79 | ||||||||||||||||||||
14.96 | 26.41 | 4,178,050 | 0.64 | 1.12 | 0.65 | 73 | ||||||||||||||||||||
16.34 | 12.88 | 265,675 | 1.21 | 0.42 | 1.25 | 97 | ||||||||||||||||||||
15.68 | 19.58 | 260,589 | 1.20 | 0.48 | 1.40 | 86 | ||||||||||||||||||||
13.66 | (1.47 | ) | 205,224 | 1.19 | 0.60 | 1.48 | 83 | |||||||||||||||||||
14.66 | 8.45 | 178,272 | 1.20 | 0.67 | 1.41 | 79 | ||||||||||||||||||||
14.84 | 25.61 | 126,549 | 1.22 | 0.53 | 1.30 | 73 | ||||||||||||||||||||
16.43 | 13.18 | 61,413 | 0.95 | 0.69 | 1.00 | 97 | ||||||||||||||||||||
15.76 | 16.83 | 25,050 | 1.00 | 0.67 | 1.03 | 86 | ||||||||||||||||||||
16.50 | 13.48 | 10,531 | 0.70 | 0.94 | 0.75 | 97 | ||||||||||||||||||||
15.82 | 16.99 | 1,030 | 0.75 | 1.03 | 0.81 | 86 | ||||||||||||||||||||
16.54 | 13.66 | 938,744 | 0.54 | 1.08 | 0.60 | 97 | ||||||||||||||||||||
15.85 | 20.24 | 890,105 | 0.56 | 1.12 | 0.62 | 86 | ||||||||||||||||||||
13.81 | (0.77 | ) | 910,033 | 0.56 | 1.27 | 0.63 | 83 | |||||||||||||||||||
14.80 | 9.13 | 496,102 | 0.57 | 1.30 | 0.62 | 79 | ||||||||||||||||||||
14.96 | 26.45 | 441,628 | 0.59 | 1.16 | 0.60 | 73 | ||||||||||||||||||||
16.56 | 13.75 | 8,937,049 | 0.46 | 1.17 | 0.50 | 97 | ||||||||||||||||||||
15.87 | 20.37 | 6,751,473 | 0.50 | 1.19 | 0.50 | 86 | ||||||||||||||||||||
13.82 | (0.78 | ) | 4,755,359 | 0.50 | 1.33 | 0.50 | 83 | |||||||||||||||||||
14.82 | 9.17 | 2,976,379 | 0.51 | 1.35 | 0.52 | 79 | ||||||||||||||||||||
14.98 | 26.57 | 2,392,416 | 0.54 | 1.21 | 0.55 | 73 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 73 |
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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 | Return of capital | Total distributions | |||||||||||||||||||||||||
JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) |
| |||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 25.40 | $ | 0.31 | $ | 2.96 | $ | 3.27 | $ | (0.30 | ) | $ | — | $ | — | $ | (0.30 | ) | ||||||||||||||
Year Ended June 30, 2017 | 21.74 | 0.28 | 3.72 | 4.00 | (0.32 | ) | — | (0.02 | ) | (0.34 | ) | |||||||||||||||||||||
Year Ended June 30, 2016 | 23.99 | 0.26 | (1.32 | ) | (1.06 | ) | (0.22 | ) | (0.97 | ) | — | (1.19 | ) | |||||||||||||||||||
Year Ended June 30, 2015 | 23.73 | 0.20 | 1.85 | 2.05 | (0.19 | ) | (1.60 | ) | — | (1.79 | ) | |||||||||||||||||||||
Year Ended June 30, 2014 | 20.27 | 0.23 | 4.79 | 5.02 | (0.21 | ) | (1.35 | ) | — | (1.56 | ) | |||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 25.62 | 0.39 | 2.98 | 3.37 | (0.38 | ) | — | — | (0.38 | ) | ||||||||||||||||||||||
Year Ended June 30, 2017 | 21.92 | 0.35 | 3.76 | 4.11 | (0.39 | ) | — | (0.02 | ) | (0.41 | ) | |||||||||||||||||||||
Year Ended June 30, 2016 | 24.18 | 0.32 | (1.34 | ) | (1.02 | ) | (0.27 | ) | (0.97 | ) | — | (1.24 | ) | |||||||||||||||||||
Year Ended June 30, 2015 | 23.88 | 0.26 | 1.87 | 2.13 | (0.23 | ) | (1.60 | ) | — | (1.83 | ) | |||||||||||||||||||||
Year Ended June 30, 2014 | 20.39 | 0.28 | 4.82 | 5.10 | (0.26 | ) | (1.35 | ) | — | (1.61 | ) | |||||||||||||||||||||
Class L | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 25.58 | 0.38 | 2.98 | 3.36 | (0.37 | ) | — | — | (0.37 | ) | ||||||||||||||||||||||
Year Ended June 30, 2017 | 21.89 | 0.35 | 3.75 | 4.10 | (0.39 | ) | — | (0.02 | ) | (0.41 | ) | |||||||||||||||||||||
Year Ended June 30, 2016 | 24.15 | 0.35 | (1.33 | ) | (0.98 | ) | (0.31 | ) | (0.97 | ) | — | (1.28 | ) | |||||||||||||||||||
Year Ended June 30, 2015 | 23.85 | 0.29 | 1.89 | 2.18 | (0.28 | ) | (1.60 | ) | — | (1.88 | ) | |||||||||||||||||||||
Year Ended June 30, 2014 | 20.36 | 0.32 | 4.81 | 5.13 | (0.29 | ) | (1.35 | ) | — | (1.64 | ) | |||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 25.59 | 0.41 | 2.97 | 3.38 | (0.40 | ) | — | — | (0.40 | ) | ||||||||||||||||||||||
Year Ended June 30, 2017 | 21.90 | 0.38 | 3.75 | 4.13 | (0.42 | ) | — | (0.02 | ) | (0.44 | ) | |||||||||||||||||||||
Year Ended June 30, 2016 | 24.16 | 0.37 | (1.33 | ) | (0.96 | ) | (0.33 | ) | (0.97 | ) | — | (1.30 | ) | |||||||||||||||||||
Year Ended June 30, 2015 | 23.85 | 0.32 | 1.89 | 2.21 | (0.30 | ) | (1.60 | ) | — | (1.90 | ) | |||||||||||||||||||||
Year Ended June 30, 2014 | 20.36 | 0.34 | 4.81 | 5.15 | (0.31 | ) | (1.35 | ) | — | (1.66 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
SEE NOTES TO FINANCIAL STATEMENTS.
74 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||||
Net asset value, end of period | Total return (excludes sales charge) (b) | Net assets, | Net expenses (c) | �� | Net investment | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate | |||||||||||||||||||
$ | 28.37 | 12.92 | % | $ | 278,766 | 0.60 | % | 1.13 | % | 0.85 | % | 45 | % | |||||||||||||
25.40 | 18.52 | 422,719 | 0.69 | 1.19 | 0.96 | 40 | ||||||||||||||||||||
21.74 | (4.30 | ) | 497,934 | 0.85 | 1.20 | 1.02 | 122 | |||||||||||||||||||
23.99 | 9.04 | 483,296 | 0.85 | 0.84 | 0.97 | 144 | ||||||||||||||||||||
23.73 | 25.73 | 206,635 | 0.85 | 1.02 | 0.86 | 113 | ||||||||||||||||||||
28.61 | 13.19 | 268,898 | 0.35 | 1.39 | 0.60 | 45 | ||||||||||||||||||||
25.62 | 18.85 | 285,141 | 0.43 | 1.45 | 0.69 | 40 | ||||||||||||||||||||
21.92 | (4.08 | ) | 260,494 | 0.60 | 1.45 | 0.69 | 122 | |||||||||||||||||||
24.18 | 9.34 | 260,618 | 0.60 | 1.09 | 0.64 | 144 | ||||||||||||||||||||
23.88 | 26.00 | 82,899 | 0.59 | 1.28 | 0.61 | 113 | ||||||||||||||||||||
28.57 | 13.20 | 476,809 | 0.35 | 1.38 | 0.44 | 45 | ||||||||||||||||||||
25.58 | 18.86 | 835,535 | 0.40 | 1.47 | 0.49 | 40 | ||||||||||||||||||||
21.89 | (3.94 | ) | 824,559 | 0.45 | 1.59 | 0.50 | 122 | |||||||||||||||||||
24.15 | 9.53 | 796,919 | 0.45 | 1.21 | 0.51 | 144 | ||||||||||||||||||||
23.85 | 26.20 | 389,507 | 0.45 | 1.42 | 0.46 | 113 | ||||||||||||||||||||
28.57 | 13.28 | 5,712,617 | 0.25 | 1.50 | 0.34 | 45 | ||||||||||||||||||||
25.59 | 19.00 | 5,863,138 | 0.28 | 1.60 | 0.34 | 40 | ||||||||||||||||||||
21.90 | (3.83 | ) | 6,638,591 | 0.34 | 1.69 | 0.35 | 122 | |||||||||||||||||||
24.16 | 9.67 | 6,205,582 | 0.35 | 1.33 | 0.36 | 144 | ||||||||||||||||||||
23.85 | 26.31 | 3,598,945 | 0.35 | 1.52 | 0.36 | 113 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 75 |
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AS OF JUNE 30, 2018
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 8 separate funds of the Trusts (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Trust | Diversified/Non-Diversified | ||||
JPMorgan Equity Focus Fund | Class A, Class C and Class I | JPM I | Non-Diversified | |||
JPMorgan Equity Income Fund | Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan Growth and Income Fund | Class A, Class C, Class I, Class R2, Class R3*, Class R4*, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Hedged Equity Fund | Class A, Class C, Class I, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Large Cap Growth Fund | Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan Large Cap Value Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM II | Diversified | |||
JPMorgan U.S. Equity Fund | Class A, Class C, Class I, Class L^^, Class R2, Class R3, Class R4, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan U.S. Research Enhanced Equity Fund^ | Class A^^^, Class I, Class L^^ and Class R6 | JPM I | Diversified |
* | Class R3 and Class R4 commenced operations on July 31, 2017 for Growth and Income Fund. |
^ | Effective November 1, 2017, Disciplined Equity Fund changed its name to U.S. Research Enhanced Equity Fund. |
^^ | Effective December 1, 2016, Class L is publicly offered on a limited basis for U.S. Equity Fund and U.S. Research Enhanced Equity Fund. |
^^^ | Effective October 9, 2017, Class A is publicly offered on a limited basis for U.S. Research Enhanced Equity Fund. |
The investment objective of JPMorgan Equity Focus Fund (“Equity Focus Fund”) and JPMorgan Large Cap Growth Fund (“Large Cap Growth Fund”) is to seek long-term capital appreciation.
The investment objective of JPMorgan Equity Income Fund (“Equity Income Fund”) is to seek capital appreciation and current income.
The investment objective of JPMorgan Growth and Income Fund (“Growth and Income Fund”) is to seek to provide capital growth over the long-term and to earn income from dividends.
The investment objective of JPMorgan Hedged Equity Fund (“Hedged Equity Fund”) is to seek to provide capital appreciation.
The investment objective of JPMorgan Large Cap Value Fund (“Large Cap Value Fund”) is to seek capital appreciation with the incidental goal of achieving current income by investing primarily in equity securities.
The investment objective of JPMorgan U.S. Equity Fund (“U.S. Equity Fund”) is to seek to provide high total return from a portfolio of selected equity securities.
The investment objective of JPMorgan U.S. Research Enhanced Equity Fund (“U.S. Research Enhanced Equity Fund”) is to seek to provide a consistently high total return from a broadly diversified portfolio of equity securities with risk characteristics similar to the Standard and Poor’s 500 Composite Stock Price Index.
Large Cap Growth Fund acquired all the assets and liabilities of the JPMorgan Dynamic Growth Fund (“Dynamic Growth Fund”) in a reorganization on October 27, 2017. Please refer to Note 9 discussing the merger.
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 I, Class L, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares. Certain Class A Shares, for which front-end sales charges have been waived, may be subject to a CDSC as described in the Funds’ prospectuses. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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
76 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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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 Boards of Trustees (the “Boards”), 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 Boards.
The Administrator has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Boards 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 Boards. 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 Boards.
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 Boards. 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. Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Fixed income instruments are valued based on prices received from Pricing Services. The Pricing Services use multiple valuation techniques to determine the valuation of fixed income instruments. In instances where sufficient market activity exists, the Pricing Services may utilize a market-based approach through which trades or quotes from market makers are used to determine the valuation of these instruments. In instances where sufficient market activity may not exist, the Pricing Services also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or market characteristics in order to estimate the relevant cash flows, which are then discounted to calculate the fair values.
Futures contracts and options are generally valued on the basis of available market quotations.
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). |
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):
Equity Focus Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 253,270 | $ | — | $ | — | $ | 253,270 | ||||||||
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Equity Income Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 17,270,047 | $ | — | $ | — | $ | 17,270,047 | ||||||||
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Growth and Income Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 614,944 | $ | — | $ | — | $ | 614,944 | ||||||||
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Hedged Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 2,522,016 | $ | — | $ | — | $ | 2,522,016 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts (a) | $ | (3 | ) | $ | — | $ | — | $ | (3 | ) | ||||||
Options Written (a) | ||||||||||||||||
Call Option Written | (24,297 | ) | — | — | (24,297 | ) | ||||||||||
Put Option Written | (6,631 | ) | — | — | (6,631 | ) | ||||||||||
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Total Depreciation in Other Financial Instruments | $ | (30,931 | ) | $ | — | $ | — | $ | (30,931 | ) | ||||||
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Large Cap Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 14,334,225 | $ | — | $ | — | $ | 14,334,225 | ||||||||
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Large Cap Value Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (b) | $ | 1,725,642 | $ | — | $ | — | (c) | $ | 1,725,642 | |||||||
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U.S. Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (b) | $ | 15,043,294 | $ | — | $ | — | (c) | $ | 15,043,294 | |||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts (a) | $ | (1,246 | ) | $ | — | $ | — | $ | (1,246 | ) | ||||||
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U.S. Research Enhanced Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (d) | $ | 6,769,996 | $ | 5,721 | $ | — | $ | 6,775,717 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts (a) | $ | (1,431 | ) | $ | — | $ | — | $ | (1,431 | ) | ||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for industry specifics of portfolio holdings. |
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(b) | All portfolio holdings designated as level 1 and level 3 are disclosed individually on the SOIs. Level 3 consists of a warrant. Please refer to the SOIs for industry specifics of portfolio holdings. |
(c) | Amount rounds to less than one thousand. |
(d) | All portfolio holdings designated as level 1 and level 2 are disclosed individually on the SOIs. Level 2 consists of a U.S. Treasury Bill that is held as initial margin for futures contracts. Please refer to the SOIs for asset class specifics of portfolio holdings. |
There were no transfers among any levels during the year ended June 30, 2018.
B. Futures Contracts — Hedged Equity Fund, U.S. Equity Fund and U.S. Research Enhanced Equity 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 use of futures contracts exposes the Funds to equity price risk. 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 table below discloses the volume of the Funds’ futures contracts activity during the year ended June 30, 2018 (amounts in thousands):
Hedged Equity Fund | U.S. Equity Fund | U.S. Research Enhanced Equity Fund | ||||||||||
Futures Contracts — Equity: | ||||||||||||
Average Notional Balance Long | $ | 23,885 | $ | 82,476 | $ | 73,918 | ||||||
Ending Notional Balance Long | 19,051 | 72,667 | 68,176 |
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).
C. Options — Hedged Equity Fund purchased and sold (“wrote”) put and call options on indices to manage and hedge equity risk within its portfolio. A purchaser of a put option has the right, but not the obligation, to sell the underlying instrument at an agreed upon price (“strike price”) to the option seller. A purchaser of a call option has the right, but not the obligation, to purchase the underlying instrument at the strike price from the option seller.
Options Purchased — Premiums paid by the Fund for options purchased are included on the Statements of Assets and Liabilities as options purchased. The option is adjusted daily to reflect the current market value of the option and the change is recorded as Change in net unrealized appreciation/depreciation on options purchased on the Statements of Operations. If the option is allowed to expire, the Fund will lose the entire premium it paid and records a loss for the premium amount. Premiums paid for options purchased which are exercised or closed are added to the amounts paid or will offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) or cost basis of the underlying investment.
Options Written — Premiums received by the Fund for options written are included on the Statements of Assets and Liabilities as a liability. The amount of the liability is adjusted daily to reflect the current market value of the option written and the change in market value is recorded as Change in net unrealized appreciation/depreciation on options written on the Statements of Operations. Premiums received from options written that expire are treated as realized gains. If a written option is closed, the Fund records a realized gain or loss on options written based on whether the cost of the closing transaction exceeds the premium received. If a call option is exercised by the option buyer, the premium received by the Fund is added to the proceeds from the sale of the underlying security to the option buyer and compared to the cost of the closing transaction to determine whether there has been a realized gain or loss. If a put option is exercised by an option buyer, the premium received by the option seller reduces the cost basis of the purchased security.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The Fund pledges collateral to the counterparty in the form of securities for options written. Securities designated as collateral are denoted on the SOI.
Written uncovered call options subject the Fund to unlimited risk of loss. Written covered call options limit the upside potential of a security above the strike price. Written put options subject the Fund to risk of loss if the value of the security declines below the exercise price minus the put premium.
The Fund is not subject to credit risk on options written as the counterparty has already performed its obligation by paying the premium at the inception of the contract.
The Fund’s exchange-traded option 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 Fund may be required to post or receive collateral for over the counter options.
The table below discloses the volume of the Fund’s options contracts activity during the year ended June 30, 2018:
Exchange-Traded Options: | ||||
Average Number of Contracts Purchased | 5,999 | |||
Average Number of Contracts Written | 11,999 | |||
Ending Number of Contracts Purchased | 8,900 | |||
Ending Number of Contracts Written | 17,800 |
D. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis. Interest income is determined on the basis of coupon interest accrued using the effective interest method 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.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
E. Allocation of Income and Expenses — 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 are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | Total | |||||||||||||||||||||||||||||||
Equity Focus Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 1 | $ | 1 | $ | 5 | n/a | n/a | n/a | n/a | n/a | n/a | $ | 7 | ||||||||||||||||||||||||||
Equity Income Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 392 | 80 | 78 | n/a | $ | 14 | $ | — | (a) | $ | 1 | $ | 22 | $ | 86 | 673 | ||||||||||||||||||||||||
Growth and Income Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 253 | 5 | 7 | n/a | — | (a) | — | (a) | — | (a) | — | (a) | — | (a) | 265 | |||||||||||||||||||||||||
Hedged Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 7 | 3 | 30 | n/a | n/a | n/a | n/a | — | (a) | 8 | 48 | |||||||||||||||||||||||||||||
Large Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 514 | 24 | 67 | n/a | 12 | — | (a) | 1 | 15 | 54 | 687 | |||||||||||||||||||||||||||||
Large Cap Value Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 69 | 6 | 8 | n/a | 4 | n/a | n/a | 3 | 20 | 110 | ||||||||||||||||||||||||||||||
U.S. Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 142 | 19 | 40 | $ | 162 | 7 | 1 | — | (a) | 12 | 83 | 466 | ||||||||||||||||||||||||||||
U.S. Research Enhanced Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 33 | n/a | 10 | 14 | n/a | n/a | n/a | n/a | 53 | 110 |
(a) | Amount rounds to less than one thousand. |
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F. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (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 June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
G. 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.
H. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly, except for Equity Focus Fund and Large Cap Growth Fund, for which distributions are generally declared and paid annually, and Equity Income Fund, for which distributions are generally declared and paid monthly. 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.
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) | ||||||||||
Equity Income Fund | $ | — | (a) | $ | (2,944 | ) | $ | 2,944 | ||||
Growth and Income Fund | — | (117 | ) | 117 | ||||||||
Hedged Equity Fund | — | (a) | (157 | ) | 157 | |||||||
Large Cap Growth Fund | 96,057 | (11 | ) | (96,046 | ) | |||||||
Large Cap Value Fund | — | (150 | ) | 150 | ||||||||
U.S. Equity Fund | 97,665 | (2,752 | ) | (94,913 | ) | |||||||
U.S. Research Enhanced Equity Fund | (234 | ) | (1,233 | ) | 1,467 |
(a) | Amount rounds to less than one thousand. |
The reclassifications for the Funds relate primarily to non-taxable dividends and tax equalization.
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to an Investment Advisory Agreement, 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 average daily net assets. The annual rate for each Fund is as follows:
Equity Focus Fund | 0.60 | % | ||
Equity Income Fund | 0.40 | |||
Growth and Income Fund | 0.40 | |||
Hedged Equity Fund | 0.25 | |||
Large Cap Growth Fund | 0.50 | |||
Large Cap Value Fund | 0.40 | |||
U.S. Equity Fund | 0.40 | |||
U.S. Research Enhanced Equity Fund | 0.25 |
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
B. Administration Fee — Pursuant to an Administration Agreement, 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 Agreements (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 June 30, 2018, the effective rate was 0.08% of each Fund’s average daily net assets, notwithstanding any fee waivers and/or expense reimbursements.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trusts’ principal underwriter and promotes and arranges for the sale of each Fund’s shares.
The Boards have adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class C, Class R2 and Class R3 Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the 1940 Act. The Class I, Class L, Class R4, Class R5 and Class R6 do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class R2 | Class R3 | |||||||||||||
Equity Focus Fund | 0.25 | % | 0.75 | % | n/a | n/a | ||||||||||
Equity Income Fund | 0.25 | 0.75 | 0.50 | % | 0.25 | % | ||||||||||
Growth and Income Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Hedged Equity Fund | 0.25 | 0.75 | n/a | n/a | ||||||||||||
Large Cap Growth Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
Large Cap Value Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
U.S. Equity Fund | 0.25 | 0.75 | 0.50 | 0.25 | ||||||||||||
U.S. Research Enhanced Equity Fund | 0.25 | n/a | n/a | n/a |
In addition, JPMDS 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 June 30, 2018, JPMDS retained the following (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Equity Focus Fund | $ | 2 | $ | — | ||||
Equity Income Fund | 448 | 2 | ||||||
Growth and Income Fund | 19 | — | (a) | |||||
Hedged Equity Fund | 82 | 11 | ||||||
Large Cap Growth Fund | 230 | — | (a) | |||||
Large Cap Value Fund | 40 | — | (a) | |||||
U.S. Equity Fund | 103 | — | (a) | |||||
U.S. Research Enhanced Equity Fund | 3 | — |
(a) | Amount rounds to less than one thousand. |
D. Service Fees — The Trusts, on behalf of the Funds, have entered into Shareholder Servicing Agreements with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | |||||||||||||||||||||||||
Equity Focus Fund | 0.25 | % | 0.25 | % | 0.25 | % | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||||
Equity Income Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | % | 0.25 | % | 0.25 | % | 0.10 | % | ||||||||||||||||||||
Growth and Income Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | 0.25 | 0.25 | 0.10 | ||||||||||||||||||||||||
Hedged Equity Fund | 0.25 | 0.25 | 0.25 | n/a | n/a | n/a | n/a | 0.10 | ||||||||||||||||||||||||
Large Cap Growth Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | 0.25 | 0.25 | 0.10 | ||||||||||||||||||||||||
Large Cap Value Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
U.S. Equity Fund | 0.25 | 0.25 | 0.25 | 0.10 | % | 0.25 | 0.25 | 0.25 | 0.10 | |||||||||||||||||||||||
U.S. Research Enhanced Equity Fund | 0.25 | n/a | 0.25 | 0.10 | n/a | n/a | n/a | n/a |
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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 in Interest income from affiliates on the State-
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ments of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately 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 JPMDS 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 I | Class L | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | ||||||||||||||||||||||||||||
Equity Focus Fund* | 1.10 | % | 1.60 | % | 0.85 | % | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Equity Income Fund | 1.04 | 1.54 | 0.79 | n/a | 1.29 | % | 1.04 | % | 0.79 | % | 0.59 | % | 0.54 | % | ||||||||||||||||||||||
Growth and Income Fund** | 0.94 | 1.44 | 0.69 | n/a | 1.19 | 0.94 | 0.69 | 0.54 | 0.44 | |||||||||||||||||||||||||||
Hedged Equity Fund | 0.85 | 1.35 | 0.60 | n/a | n/a | n/a | n/a | 0.40 | 0.35 | |||||||||||||||||||||||||||
Large Cap Growth Fund*** | 0.94 | 1.44 | 0.69 | n/a | 1.19 | 0.94 | 0.69 | 0.54 | 0.44 | |||||||||||||||||||||||||||
Large Cap Value Fund**** | 0.93 | 1.44 | 0.69 | n/a | 1.19 | n/a | n/a | 0.54 | 0.44 | |||||||||||||||||||||||||||
U.S. Equity Fund***** | 0.94 | 1.44 | 0.69 | 0.61 | % | 1.19 | 0.94 | 0.69 | 0.54 | 0.44 | ||||||||||||||||||||||||||
U.S. Research Enhanced Equity Fund | 0.60 | n/a | 0.35 | 0.45 | n/a | n/a | n/a | n/a | 0.25 |
* | Prior to November 1, 2017, the contractual expense limitation for Equity Focus Fund was 1.15%, 1.65% and 0.90% for Class A, Class C and Class I Shares respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
** | Prior to November 1, 2017, the contractual expense limitation for Growth and Income Fund was 1.04%, 1.54%, 0.79%, 1.29%, 1.04%, 0.79%, 0.59% and 0.54% for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
*** | Prior to November 1, 2017, the contractual expense limitation for Large Cap Growth Fund was 1.05%, 1.55%, 0.90%, 1.40%, 1.15%, 0.90%, 0.70% and 0.65% for Class A, Class C, Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2019. |
**** | Prior to November 1, 2017, the contractual expense limitation for Large Cap Value Fund was 1.45%, 0.80%, 1.30%, 0.60% and 0.55% for Class C, Class I, Class R2, Class R5 and Class R6 Shares respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2018 for Class A Shares and October 31, 2019 for Class C, Class I, Class R2, Class R5 and Class R6 Shares. |
***** | Prior to November 1, 2017, the contractual expense limitation for U.S. Equity Fund was 0.76%, 1.26%, 1.01%, 0.76%, 0.56% and 0.51% for Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares respectively. The contractual expense limitation percentages in the table above are in place until at least October 31, 2018 for Class A, Class C and Class L Shares and until at least October 31, 2019 for Class I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares. |
Except as noted above, the expense limitation agreements were in effect for the year ended June 30, 2018 and the contractual expense limitation percentages in the table above are in place until at least October 31, 2018.
For the year ended June 30, 2018, 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 reimbursed expenses in future years.
Contractual Waivers | ||||||||||||||||||||
Investment Advisory Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Equity Focus Fund | $ | 223 | $ | 142 | $ | 2 | $ | 367 | $ | — | ||||||||||
Equity Income Fund | 48 | — | 42 | 90 | — | |||||||||||||||
Growth and Income Fund | 199 | 132 | 255 | 586 | — | (a) | ||||||||||||||
Hedged Equity Fund | 230 | 154 | 10 | 394 | 7 | |||||||||||||||
Large Cap Growth Fund | 8,323 | 5,455 | 1,086 | 14,864 | 32 | |||||||||||||||
Large Cap Value Fund | 459 | 304 | 174 | 937 | 10 | |||||||||||||||
U.S. Equity Fund | 3,319 | 2,184 | 641 | 6,144 | 61 | |||||||||||||||
U.S. Research Enhanced Equity Fund | 4,037 | 2,691 | 1,018 | 7,746 | 53 |
(a) | Amount rounds to less than one thousand. |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 Fund’s investment in such affiliated money market fund.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The amounts of waivers resulting from investments in these money market funds for the year ended June 30, 2018 were as follows (amounts in thousands):
Equity Focus Fund | $ | 18 | ||
Equity Income Fund | 701 | |||
Growth and Income Fund | 21 | |||
Hedged Equity Fund | 82 | |||
Large Cap Growth Fund | 480 | |||
Large Cap Value Fund | 64 | |||
U.S. Equity Fund | 300 | |||
U.S. Research Enhanced Equity Fund | 130 |
G. Other — Certain officers of the Trusts are affiliated with the Adviser, the Administrator and JPMDS. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.
The Boards 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.
The Funds may use related party broker-dealers. For the year ended June 30, 2018, the Funds incurred brokerage commissions with broker dealers affiliated with the Adviser as follows (amounts in thousands):
Equity Income Fund | $ | 2 | ||
Growth and Income Fund | — | (a) | ||
U.S. Equity Fund | — | (a) | ||
U.S. Research Enhanced Equity Fund | 2 |
(a) | Amount rounds to less than one thousand. |
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended June 30, 2018, 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) | |||||||
Equity Focus Fund | $ | 107,146 | $ | 73,154 | ||||
Equity Income Fund | 3,802,921 | 3,183,611 | ||||||
Growth and Income Fund | 177,524 | 177,554 | ||||||
Hedged Equity Fund | 2,199,327 | 690,915 | ||||||
Large Cap Growth Fund | 3,121,035 | 4,648,001 | ||||||
Large Cap Value Fund | 2,313,480 | 1,767,109 | ||||||
U.S. Equity Fund | 14,399,016 | 15,425,394 | ||||||
U.S. Research Enhanced Equity Fund | 3,286,255 | 4,786,891 |
During the year ended June 30, 2018, there were no purchases or sales of U.S. Government securities.
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5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Equity Focus Fund | $ | 205,296 | $ | 54,165 | $ | 6,191 | $ | 47,974 | ||||||||
Equity Income Fund | 12,906,381 | 4,524,544 | 160,878 | 4,363,666 | ||||||||||||
Growth and Income Fund | 416,542 | 205,194 | 6,792 | 198,402 | ||||||||||||
Hedged Equity Fund | 2,304,559 | 237,184 | 50,658 | 186,526 | ||||||||||||
Large Cap Growth Fund | �� | 7,239,990 | 7,103,647 | 9,412 | 7,094,235 | |||||||||||
Large Cap Value Fund | 1,664,919 | 121,801 | 61,078 | 60,723 | ||||||||||||
U.S. Equity Fund | 11,303,585 | 3,995,501 | 257,038 | 3,738,463 | ||||||||||||
U.S. Research Enhanced Equity Fund | 4,983,089 | 1,911,567 | 120,370 | 1,791,197 |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals and mark-to-market of options contracts.
The tax character of distributions paid during the year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Equity Focus Fund | $ | 3,543 | $ | 7,523 | $ | 11,066 | ||||||
Equity Income Fund | 300,091 | 121,381 | 421,472 | |||||||||
Growth and Income Fund | 10,397 | 20,464 | 30,861 | |||||||||
Hedged Equity Fund | 16,679 | — | 16,679 | |||||||||
Large Cap Growth Fund | 82,305 | 1,573,061 | 1,655,366 | |||||||||
Large Cap Value Fund | 86,611 | 36,616 | 123,227 | |||||||||
U.S. Equity Fund | 300,992 | 988,613 | 1,289,605 | |||||||||
U.S. Research Enhanced Equity Fund | 103,632 | — | 103,632 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Return of Capital | Total Distributions Paid | |||||||||||||
Equity Focus Fund | $ | 848 | $ | 1,213 | $ | — | $ | 2,061 | ||||||||
Equity Income Fund | 256,770 | 66,179 | — | 322,949 | ||||||||||||
Growth and Income Fund | 7,975 | 23,154 | — | 31,129 | ||||||||||||
Hedged Equity Fund | 5,217 | — | — | 5,217 | ||||||||||||
Large Cap Growth Fund | — | 1,111,903 | — | 1,111,903 | ||||||||||||
Large Cap Value Fund | 19,124 | 26,974 | — | 46,098 | ||||||||||||
U.S. Equity Fund | 134,307 | 439,676 | — | 573,983 | ||||||||||||
U.S. Research Enhanced Equity Fund | 129,537 | — | 6,246 | 135,783 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
As of June 30, 2018, 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) | ||||||||||
Equity Focus Fund | $ | 759 | $ | 9,601 | $ | 47,974 | ||||||
Equity Income Fund | 12,170 | 253,408 | 4,363,666 | |||||||||
Growth and Income Fund | 2,181 | 20,961 | 198,402 | |||||||||
Hedged Equity Fund | 913 | (41,545 | ) | 186,526 | ||||||||
Large Cap Growth Fund | 1,719 | 1,018,157 | 7,094,235 | |||||||||
Large Cap Value Fund | 47,781 | 49,398 | 60,723 | |||||||||
U.S. Equity Fund | 268,257 | 951,865 | 3,738,463 | |||||||||
U.S. Research Enhanced Equity Fund | 2,582 | 409,808 | 1,791,197 |
For the Funds, the cumulative timing differences primarily consist of post-October capital loss deferrals, wash sale loss deferrals and mark-to-market of options contracts.
As of June 30, 2018, the following Fund had net capital loss carryforwards (amounts in thousands):
Capital Loss Carryforward Character | ||||||||
Short-Term | Long-Term | |||||||
Hedged Equity Fund | 15,829 | 25,716 |
During the year ended June 30, 2018, the following Fund utilized net capital loss carryforwards as follows (amount in thousands):
Capital Loss Utilized | ||||
Short-Term | ||||
U.S. Research Enhanced Equity Fund | $ | 218,425 |
Late year ordinary losses incurred after December 31 as well as net capital losses after October 31 and within the taxable year are deemed to arise on the first business day of the Funds’ next taxable year. For the year ended June 30, 2018, the following Funds deferred to July 1, 2018 net capital losses and late year ordinary losses of (amounts in thousands):
Net Capital Loss | ||||||||
Short-Term | Long-Term | |||||||
Equity Focus Fund | $ | 543 | $ | — | ||||
Equity Income Fund | 27,277 | — | ||||||
Hedged Equity Fund | 5,367 | 14,575 | ||||||
Large Cap Growth Fund | 103,261 | — |
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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 5, 2018.
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The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility at June 30, 2018. Average borrowings from the Facility for the year ended June 30, 2018, were as follows:
Average Borrowings | Average Interest Rate Paid | Number of Days Outstanding | Interest Paid | |||||||||||||
Large Cap Growth Fund | $ | 2,094 | 1.83 | % | 1 | $ | — | (a) |
(a) | Amount rounds to less than one thousand. |
Interest expense paid as a result of borrowings from another fund or from the unsecured, uncommitted credit facility is included in Interest expense to affiliates on the Statements of Operations.
The Trusts, along with certain other trusts (“Borrowers”), have 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 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.
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. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
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.
As of June 30, 2018, the Funds had omnibus accounts which owned more than 10% of the respective Fund’s outstanding shares as follows:
Number of Affiliated Omnibus Accounts | % of the Fund | Number of Non-Affiliated Omnibus Accounts | % of the Fund | |||||||||||||
Equity Focus Fund | 3 | 94.8 | % | — | — | |||||||||||
Equity Income Fund | 4 | 14.3 | 10 | 13.5 | % | |||||||||||
Growth and Income Fund | 4 | 21.2 | — | — | ||||||||||||
Hedged Equity Fund | — | — | 11 | 54.2 | ||||||||||||
Large Cap Growth Fund | — | — | 7 | 18.3 | ||||||||||||
Large Cap Value Fund | 3 | 11.4 | — | — | ||||||||||||
U.S. Equity Fund | 4 | 15.2 | — | — |
As of June 30, 2018, JPMorgan Investor Funds and JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate shares representing more than 10% of the net assets of the following Funds:
J.P. Morgan Investor Funds | JPMorgan SmartRetirement Funds | |||||||
Large Cap Value Fund | 34.7 | % | n/a | |||||
U.S. Equity Fund | n/a | 22.3 | % | |||||
U.S. Research Enhanced Equity Fund | n/a | 64.0 |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
8. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced dis-
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
closures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
9. Business Combinations
On June 21, 2017, the Boards of the JPM I and JPM II approved the Plan of Reorganization of Dynamic Growth Fund (the “Target Fund”), a fund of JPM I, into Large Cap Growth Fund (the “Acquiring Fund”), a fund of JPM II. The purpose of the transaction was to combine two portfolios with comparable investment objectives and strategies. The reorganization was effective after the close of business on October 27, 2017. The Acquiring Fund acquired all of the assets and liabilities of the Target Fund as shown in the table below. The transaction was structured to qualify as a tax-free reorganization under the Code. Pursuant to the Agreement and Plan of Reorganization, Class A, Class C, Class I and Class R5 shareholders of the Target Fund received a number of shares of the corresponding class in the Acquiring Fund, with a value equal to their holdings in the Target Fund as of the close of business on the date of the reorganization. The investment portfolio of the Target Fund, with a fair value of approximately $341,560,000 and identified cost of approximately $192,181,000 as of the date of the reorganization, was the principal asset acquired by the Acquiring Fund. For financial statement purposes, assets received and shares issued by the Acquiring Fund were recorded at fair value; however, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Acquiring Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. As of October 27, 2017, the Target Fund did not have capital loss carryforwards.
The following is a summary of Shares Outstanding, Net Assets, Net Asset Value Per Share and Net Unrealized Appreciation (Depreciation) immediately before and after the reorganization (amounts in thousands, except per share amounts):
Shares Outstanding | Net Assets | Net Asset Value Per Share | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Target Fund | ||||||||||||||||
Dynamic Growth Fund | $ | 149,379 | ||||||||||||||
Class A | 2,009 | $ | 63,247 | $ | 31.49 | |||||||||||
Class C | 455 | 13,553 | 29.77 | |||||||||||||
Class I | 2,050 | 66,379 | 32.38 | |||||||||||||
Class R5 | 6,103 | 201,731 | 33.05 | |||||||||||||
Acquiring Fund | ||||||||||||||||
Large Cap Growth Fund | $ | 5,901,927 | ||||||||||||||
Class A | 69,657 | $ | 2,537,876 | $ | 36.43 | |||||||||||
Class C | 16,450 | 484,595 | 29.46 | |||||||||||||
Class I | 99,881 | 3,668,798 | 36.73 | |||||||||||||
Class R2 | 4,222 | 149,495 | 35.41 | |||||||||||||
Class R3 | 49 | 1,798 | 36.61 | |||||||||||||
Class R4 | 294 | 10,813 | 36.73 | |||||||||||||
Class R5 | 22,117 | 826,666 | 37.38 | |||||||||||||
Class R6 | 123,754 | 4,653,365 | 37.60 | |||||||||||||
Post Reorganization | ||||||||||||||||
Large Cap Growth Fund | $ | 6,051,306 | ||||||||||||||
Class A | 71,393 | $ | 2,601,123 | $ | 36.43 | |||||||||||
Class C | 16,910 | 498,148 | 29.46 | |||||||||||||
Class I | 101,688 | 3,735,177 | 36.73 | |||||||||||||
Class R2 | 4,222 | 149,495 | 35.41 | |||||||||||||
Class R3 | 49 | 1,798 | 36.61 | |||||||||||||
Class R4 | 294 | 10,813 | 36.73 | |||||||||||||
Class R5 | 27,514 | 1,028,397 | 37.38 | |||||||||||||
Class R6 | 123,754 | 4,653,365 | 37.60 |
Expenses related to the reorganization were incurred by the Acquiring Fund. The Adviser, the Administrator and the Distributor waived their fees and/or reimbursed the Fund in an amount sufficient to offset costs incurred by the Fund relating to the reorganization, excluding brokerage fees and brokerage expenses related to the disposition and acquisition of Fund assets associated with the reorganization.
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Assuming the reorganization had been completed on July 1, 2017, the beginning of the annual reporting period, the pro forma results of operations for the year ended June 30, 2018, are as follows:
Net investment income (loss) | $ | 345 | ||
Net realized/unrealized gains (losses) | 3,304,329 | |||
|
| |||
Change in net assets resulting from operations | $ | 3,304,674 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that have been included on the Statements of Operations since October 27, 2017.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Boards of Trustees of JPMorgan Trust I and JPMorgan Trust II and Shareholders of JPMorgan Equity Focus Fund, JPMorgan Equity Income Fund, JPMorgan Growth and Income Fund, JPMorgan Hedged Equity Fund, JPMorgan Large Cap Growth Fund, JPMorgan Large Cap Value Fund, JPMorgan U.S. Equity Fund and JPMorgan U.S. Research Enhanced Equity Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Equity Focus Fund, JPMorgan Growth and Income Fund, JPMorgan Hedged Equity Fund, JPMorgan U.S. Equity Fund and JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) (five of the funds constituting JPMorgan Trust I) and JPMorgan Equity Income Fund, JPMorgan Large Cap Growth Fund and JPMorgan Large Cap Value Fund (three of the funds constituting JPMorgan Trust II) (hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the 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), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trusts since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trusts since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | 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). | 135 | None |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 91 |
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TRUSTEES
(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Raymond Kanner** (1953); Trustee of Trusts since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present) . | |||
Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | 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). | 135 | 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). | 135 | 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) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
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). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
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). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
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). | 135 | None |
(1) | The Trustees serve for an indefinite term, subject to the Trusts’ current retirement policy, which is age 78 for all Trustees. |
92 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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(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 eleven registered investment companies (135 funds). |
* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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.
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 93 |
Table of Contents
(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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), Secretary (2018) | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
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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 (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, January 1, 2018 and continued to hold your shares at the end of the reporting period, June 30, 2018.
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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Equity Focus Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,028.40 | $ | 5.48 | 1.09 | % | ||||||||
Hypothetical | 1,000.00 | 1,019.39 | 5.46 | 1.09 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,026.40 | 7.99 | 1.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.91 | 7.95 | 1.59 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,029.80 | 4.23 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
JPMorgan Equity Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 989.30 | 4.93 | 1.00 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.84 | 5.01 | 1.00 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 986.90 | 7.39 | 1.50 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.36 | 7.50 | 1.50 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 990.50 | 3.65 | 0.74 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 987.80 | 6.21 | 1.26 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.55 | 6.31 | 1.26 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 989.40 | 4.88 | 0.99 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.89 | 4.96 | 0.99 |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 95 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Equity Income Fund (continued) | ||||||||||||||||
Class R4 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 990.50 | $ | 3.65 | 0.74 | % | ||||||||
Hypothetical | 1,000.00 | 1,021.12 | 3.71 | 0.74 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 991.20 | 2.91 | 0.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.87 | 2.96 | 0.59 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 991.60 | 2.42 | 0.49 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.36 | 2.46 | 0.49 | ||||||||||||
JPMorgan Growth and Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 996.20 | 4.65 | 0.94 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.13 | 4.71 | 0.94 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 993.70 | 7.12 | 1.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.65 | 7.20 | 1.44 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 997.30 | 3.42 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 995.00 | 5.89 | 1.19 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.89 | 5.96 | 1.19 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 996.20 | 4.60 | 0.93 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.18 | 4.66 | 0.93 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 997.50 | 3.42 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 998.10 | 2.68 | 0.54 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.12 | 2.71 | 0.54 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 998.80 | 2.18 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
JPMorgan Hedged Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,011.90 | 4.19 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,009.20 | 6.68 | 1.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.15 | 6.71 | 1.34 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,013.20 | 2.95 | 0.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.87 | 2.96 | 0.59 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,014.10 | 1.95 | 0.39 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.86 | 1.96 | 0.39 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,014.30 | 1.70 | 0.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.11 | 1.71 | 0.34 |
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Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Large Cap Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,128.40 | $ | 4.96 | 0.94 | % | ||||||||
Hypothetical | 1,000.00 | 1,020.13 | 4.71 | 0.94 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,125.70 | 7.54 | 1.43 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.70 | 7.15 | 1.43 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,130.00 | 3.64 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,127.00 | 6.28 | 1.19 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.89 | 5.96 | 1.19 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,128.30 | 4.96 | 0.94 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.13 | 4.71 | 0.94 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,129.70 | 3.64 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,130.50 | 2.85 | 0.54 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.12 | 2.71 | 0.54 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,131.30 | 2.33 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
JPMorgan Large Cap Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 961.70 | 4.52 | 0.93 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.18 | 4.66 | 0.93 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 958.60 | 6.99 | 1.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.65 | 7.20 | 1.44 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 962.40 | 3.36 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 960.00 | 5.78 | 1.19 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.89 | 5.96 | 1.19 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 963.40 | 2.63 | 0.54 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.12 | 2.71 | 0.54 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 964.30 | 2.14 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
JPMorgan U.S. Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,017.40 | 4.70 | 0.94 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.13 | 4.71 | 0.94 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,014.50 | 7.19 | 1.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.65 | 7.20 | 1.44 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,018.10 | 3.45 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan U.S. Equity Fund (continued) | ||||||||||||||||
Class L | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,018.80 | $ | 2.75 | 0.55 | % | ||||||||
Hypothetical | 1,000.00 | 1,022.07 | 2.76 | 0.55 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,015.70 | 5.95 | 1.19 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.89 | 5.96 | 1.19 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,017.50 | 4.70 | 0.94 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.13 | 4.71 | 0.94 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,018.30 | 3.45 | 0.69 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.46 | 0.69 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,019.50 | 2.70 | 0.54 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.12 | 2.71 | 0.54 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,019.40 | 2.20 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
JPMorgan U.S. Research Enhanced Equity Fund (formerly known as JPMorgan Disciplined Equity Fund) | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,015.20 | 3.00 | 0.60 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.82 | 3.01 | 0.60 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,016.50 | 1.75 | 0.35 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.06 | 1.76 | 0.35 | ||||||||||||
Class L | ||||||||||||||||
Actual | 1,000.00 | 1,016.80 | 1.75 | 0.35 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.06 | 1.76 | 0.35 | ||||||||||||
Class R6 | �� | |||||||||||||||
Actual | 1,000.00 | 1,017.10 | 1.25 | 0.25 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.55 | 1.25 | 0.25 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
98 | J.P. MORGAN LARGE CAP FUNDS | JUNE 30, 2018 |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deduction | ||||
JPMorgan Dynamic Growth Fund* | 100.00 | % | ||
JPMorgan Equity Focus Fund | 85.14 | |||
JPMorgan Equity Income Fund | 100.00 | |||
JPMorgan Growth and Income Fund | 100.00 | |||
JPMorgan Hedged Equity Fund | 100.00 | |||
JPMorgan Large Cap Growth Fund | 100.00 | |||
JPMorgan Large Cap Value Fund | 38.09 | |||
JPMorgan U.S. Equity Fund | 44.23 | |||
JPMorgan U.S. Research Enhanced Equity Fund | 100.00 |
* | Target fund acquired in business combination. |
Long Term Capital Gain
Each Fund listed below distributed the following amount, or maximum allowable amount, of long-term capital gain divi-
dends for the fiscal year ended June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Dynamic Growth Fund* | $ | 30,406 | ||
JPMorgan Equity Focus Fund | 7,524 | |||
JPMorgan Equity Income Fund | 121,381 | |||
JPMorgan Growth and Income Fund | 20,465 | |||
JPMorgan Large Cap Growth Fund | 1,667,380 | |||
JPMorgan Large Cap Value Fund | 36,616 | |||
JPMorgan U.S. Equity Fund | 1,065,168 |
* | Target fund acquired in business combination. |
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 June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Dynamic Growth Fund* | $ | 548 | ||
JPMorgan Equity Focus Fund | 2,963 | |||
JPMorgan Equity Income Fund | 300,091 | |||
JPMorgan Growth and Income Fund | 10,397 | |||
JPMorgan Hedged Equity Fund | 16,679 | |||
JPMorgan Large Cap Growth Fund | 82,305 | |||
JPMorgan Large Cap Value Fund | 25,682 | |||
JPMorgan U.S. Equity Fund | 244,369 | |||
JPMorgan U.S. Research Enhanced Equity Fund | 103,632 |
* | Target fund acquired in business combination. |
JUNE 30, 2018 | J.P. MORGAN LARGE CAP FUNDS | 99 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-LCE-618 |
Table of Contents
Annual Report
J.P. Morgan Equity Funds
June 30, 2018
JPMorgan Equity Index Fund
JPMorgan Market Expansion Enhanced Index Fund
Table of Contents
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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
![]() |
“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 1 |
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J.P. Morgan Index Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities. Bond prices came under pressure in the second half of the reporting period amid rising U.S. interest rates.
Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from July 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, growth stocks generally outperformed value stocks and small cap stocks slightly outperformed large cap and mid cap stocks. For the twelve months ended June 30, 2018, the S&P 500 returned 14.37%.
2 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Reporting Period Return: | ||||
Fund (Class I Shares) * | 14.18% | |||
S&P 500 Index** | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 3,365,756 |
INVESTMENT OBJECTIVE***
The JPMorgan Equity Index Fund (the “Fund”) seeks investment results that correspond to the aggregate price and dividend performance of securities in the Standard & Poor’s 500 Composite Stock Price Index (the “Benchmark”).
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares performed largely in line with the Benchmark for the twelve months ended June 30, 2018, before considering the effect of Fund fees and expenses. This was consistent with the Fund’s indexing strategy and investment objective, as the Fund looks to generate returns that are comparable to those of the Benchmark.
Equity markets in the U.S. provided positive returns for the reporting period amid strong growth in corporate profits, historically low interest rates and the continued U.S. economic expansion. However, the second half of the reporting period was marked by increased market volatility and investor uncertainty about global trade tensions.
During the reporting period, the information technology and consumer discretionary sectors were the largest contributors to the performance of the Fund and the Benchmark, while the consumer staples sector was the sole sector detractor from performance.
HOW WAS THE FUND POSITIONED?
Regardless of the market outlook, the Fund was managed in strict conformity with a full index replication strategy and aimed to hold the same stocks in nearly the same proportions as those found in the Benchmark.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO**** | ||||||||
1. | Apple, Inc. | 3.9 | % | |||||
2. | Microsoft Corp. | 3.2 | ||||||
3. | Amazon.com, Inc. | 2.9 | ||||||
4. | Facebook, Inc., Class A | 2.0 | ||||||
5. | Berkshire Hathaway, Inc., Class B | 1.5 | ||||||
6. | JPMorgan Chase & Co. | 1.5 | ||||||
7. | Exxon Mobil Corp. | 1.5 | ||||||
8. | Alphabet, Inc., Class C | 1.5 | ||||||
9. | Alphabet, Inc., Class A | 1.4 | ||||||
10. | Johnson & Johnson | 1.4 |
PORTFOLIO COMPOSITION BY SECTOR**** | ||||
Information Technology | 25.6 | % | ||
Health Care | 13.9 | |||
Financials | 13.7 | |||
Consumer Discretionary | 12.7 | |||
Industrials | 9.4 | |||
Consumer Staples | 6.8 | |||
Energy | 6.2 | |||
Utilities | 2.9 | |||
Real Estate | 2.8 | |||
Materials | 2.6 | |||
Telecommunication Services | 2.0 | |||
Short-Term Investments | 1.4 |
* | 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. |
** | “S&P 500 Index” is a registered service mark of Standard & Poor’s Corporation, which does not sponsor and is in no way affiliated with the Fund. |
*** | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 3 |
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JPMorgan Equity Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 18, 1992 | |||||||||||||
With Sales Charge* | 7.93 | % | 11.69 | % | 9.11 | % | ||||||||
Without Sales Charge | 13.91 | 12.90 | 9.70 | |||||||||||
CLASS C SHARES | November 4, 1997 | |||||||||||||
With CDSC** | 12.20 | 12.10 | 8.91 | |||||||||||
Without CDSC | 13.20 | 12.10 | 8.91 | |||||||||||
CLASS I SHARES | July 2, 1991 | 14.18 | 13.18 | 9.97 | ||||||||||
CLASS R6 SHARES | September 1, 2016 | 14.36 | 13.25 | 10.01 |
* | 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 (6/30/08 TO 6/30/18)
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 their inception date are based on the performance of Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Equity Index Fund, the S&P 500 Index and the Lipper S&P 500 Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 500 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 S&P 500 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The Lipper S&P 500 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 I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
4 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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JPMorgan Market Expansion Enhanced Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 14.31% | |||
S&P 1000 Index** | 15.62% | |||
Net Assets as of 6/30/2018 (In Thousands) | $1,085,798 |
INVESTMENT OBJECTIVE***
The JPMorgan Market Expansion Enhanced Index Fund (the “Fund”) seeks to provide investment results that correspond to or incrementally exceed the total return performance of an index that tracks the performance of the small- and mid-capitalization equity markets.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the Standard & Poor’s 1000 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the health services & systems and energy sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the finance and utilities sectors was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s underweight position in Nektar Therapeutics and its overweight positions in United Therapeutics Corp. and Owens & Minor Inc. Shares of Nektar Therapeutics, a developer of biopharmaceutical drugs, rose after the company reported positive data from a clinical trial of its cancer vaccine. Shares of United Therapeutics, a biotechnology company, fell after the company reported lower-than-expected earnings for the fourth quarter of 2017 amid rising costs. Shares of Owens & Minor, a medical supply and logistics company, fell after the company reported lower-than-expected earnings and revenue for the third quarter of 2017.
Leading individual contributors to relative performance included the Fund’s overweight positions in Insperity Inc., Green Dot Corp. and ArcBest Corp. Shares of Insperity, a provider of employee administrative services, rose after the company reported consecutive quarters of better-than-expected earnings and revenue during the reporting period. Shares of Green Dot, a provider of pre-paid credit cards, rose after the company reported three consecutive quarters of better-than-expected earnings. Shares of ArcBest, a freight transportation provider, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018.
HOW WAS THE FUND POSITIONED?
The Fund seeks to closely follow the sector and industry weights within the Benchmark. Because the Fund uses an enhanced index strategy, not all of the stocks in the Benchmark
are held by the Fund, and the Fund’s position in an individual stock may be overweight or underweight as compared to the Benchmark. The Fund’s portfolio managers seek to invest in stocks that they believe are attractively valued and that have improving momentum characteristics. The portfolio managers strive to add value exclusively through security selection rather than sector, style or theme allocations.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO**** | ||||||||
1. | WellCare Health Plans, Inc. | 0.8 | % | |||||
2. | East West Bancorp, Inc. | 0.7 | ||||||
3. | UGI Corp. | 0.7 | ||||||
4. | Steel Dynamics, Inc. | 0.7 | ||||||
5. | Atmos Energy Corp. | 0.7 | ||||||
6. | United Therapeutics Corp. | 0.6 | ||||||
7. | Keysight Technologies, Inc. | 0.6 | ||||||
8. | Synovus Financial Corp. | 0.6 | ||||||
9. | Arrow Electronics, Inc. | 0.6 | ||||||
10. | Hanover Insurance Group, Inc. (The) | 0.6 |
PORTFOLIO COMPOSITION BY SECTOR**** | ||||
Industrials | 16.1 | % | ||
Financials | 15.5 | |||
Information Technology | 15.4 | |||
Consumer Discretionary | 12.1 | |||
Health Care | 10.0 | |||
Real Estate | 8.6 | |||
Materials | 6.5 | |||
Energy | 4.6 | |||
Utilities | 4.4 | |||
Consumer Staples | 3.1 | |||
Telecommunication Services | 0.8 | |||
Short-Term Investments | 2.9 |
* | 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. |
** | “S&P 1000 Index” is a registered service mark of Standard & Poor’s Corporation, which does not sponsor and is in no way affiliated with the Fund. |
*** | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 5 |
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JPMorgan Market Expansion Enhanced Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | July 31, 1998 | |||||||||||||
With Sales Charge* | 8.02 | % | 11.55 | % | 9.96 | % | ||||||||
Without Sales Charge | 14.02 | 12.75 | 10.56 | |||||||||||
CLASS C SHARES | March 22, 1999 | |||||||||||||
With CDSC** | 12.46 | 12.04 | 9.81 | |||||||||||
Without CDSC | 13.46 | 12.04 | 9.81 | |||||||||||
CLASS I SHARES | July 31, 1998 | 14.31 | 13.05 | 10.84 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 13.79 | 12.49 | 10.24 |
* | 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 (6/30/08 TO 6/30/18)
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 their inception date are based on the performance of Class I Shares. All prior class performance for Class R2 Shares has been adjusted to reflect the differences in expenses between classes.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Market Expansion Enhanced Index Fund, the S&P 1000 Index, the Lipper Small-Cap Core Funds Index and the Lipper Mid-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 1000 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 Small-Cap Core Funds Index and the Lipper Mid-Cap Core Funds Index includes expenses associated
with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The S&P 1000 Index is an unmanaged index generally representative of the performance of the small and mid-size companies in the U.S. stock market. The Lipper Small-Cap Core Funds Index and the Lipper Mid-Cap Core Funds Index are indices based on total returns of certain mutual funds within designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
6 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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JPMorgan Equity Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.6% |
| |||||||
Aerospace & Defense — 2.6% |
| |||||||
Arconic, Inc. | 61 | 1,042 | ||||||
Boeing Co. (The) | 79 | 26,499 | ||||||
General Dynamics Corp. | 40 | 7,426 | ||||||
Harris Corp. | 17 | 2,475 | ||||||
Huntington Ingalls Industries, Inc. | 6 | 1,391 | ||||||
L3 Technologies, Inc. | 11 | 2,177 | ||||||
Lockheed Martin Corp. | 36 | 10,584 | ||||||
Northrop Grumman Corp. | 25 | 7,739 | ||||||
Raytheon Co. | 41 | 8,003 | ||||||
Rockwell Collins, Inc. | 24 | 3,190 | ||||||
Textron, Inc. | 37 | 2,434 | ||||||
TransDigm Group, Inc. | 7 | 2,427 | ||||||
United Technologies Corp. | 107 | 13,417 | ||||||
|
| |||||||
88,804 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.7% | ||||||||
CH Robinson Worldwide, Inc. | 20 | 1,680 | ||||||
Expeditors International of Washington, Inc. | 25 | 1,842 | ||||||
FedEx Corp. | 35 | 8,050 | ||||||
United Parcel Service, Inc., Class B | 99 | 10,564 | ||||||
|
| |||||||
22,136 | ||||||||
|
| |||||||
Airlines — 0.4% | ||||||||
Alaska Air Group, Inc. | 18 | 1,074 | ||||||
American Airlines Group, Inc. | 60 | 2,281 | ||||||
Delta Air Lines, Inc. | 93 | 4,611 | ||||||
Southwest Airlines Co. | 77 | 3,914 | ||||||
United Continental Holdings, Inc.* | 34 | 2,370 | ||||||
|
| |||||||
14,250 | ||||||||
|
| |||||||
Auto Components — 0.2% | ||||||||
Aptiv plc | 38 | 3,499 | ||||||
BorgWarner, Inc. | 28 | 1,229 | ||||||
Goodyear Tire & Rubber Co. (The) | 35 | 806 | ||||||
|
| |||||||
5,534 | ||||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
Ford Motor Co. | 564 | 6,249 | ||||||
General Motors Co. | 183 | 7,208 | ||||||
Harley-Davidson, Inc. | 24 | 1,010 | ||||||
|
| |||||||
14,467 | ||||||||
|
| |||||||
Banks — 6.1% | ||||||||
Bank of America Corp. | 1,360 | 38,337 | ||||||
BB&T Corp. | 112 | 5,672 | ||||||
Citigroup, Inc. | 368 | 24,610 | ||||||
Citizens Financial Group, Inc. | 70 | 2,719 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Banks — continued | ||||||||
Comerica, Inc. | 25 | 2,255 | ||||||
Fifth Third Bancorp | 99 | 2,837 | ||||||
Huntington Bancshares, Inc. | 159 | 2,352 | ||||||
JPMorgan Chase & Co. (a) | 491 | 51,166 | ||||||
KeyCorp | 153 | 2,992 | ||||||
M&T Bank Corp. | 21 | 3,564 | ||||||
People’s United Financial, Inc. | 50 | 908 | ||||||
PNC Financial Services Group, Inc. (The) | 68 | 9,148 | ||||||
Regions Financial Corp. | 162 | 2,880 | ||||||
SunTrust Banks, Inc. | 67 | 4,426 | ||||||
SVB Financial Group* | 8 | 2,206 | ||||||
US Bancorp | 225 | 11,256 | ||||||
Wells Fargo & Co. | 632 | 35,066 | ||||||
Zions Bancorp | 28 | 1,487 | ||||||
|
| |||||||
203,881 | ||||||||
|
| |||||||
Beverages — 1.7% | ||||||||
Brown-Forman Corp., Class B | 38 | 1,852 | ||||||
Coca-Cola Co. (The) | 552 | 24,225 | ||||||
Constellation Brands, Inc., Class A | 24 | 5,303 | ||||||
Molson Coors Brewing Co., Class B | 27 | 1,816 | ||||||
Monster Beverage Corp.* | 59 | 3,395 | ||||||
PepsiCo, Inc. | 204 | 22,262 | ||||||
|
| |||||||
58,853 | ||||||||
|
| |||||||
Biotechnology — 2.5% | ||||||||
AbbVie, Inc. | 219 | 20,250 | ||||||
Alexion Pharmaceuticals, Inc.* | 32 | 3,984 | ||||||
Amgen, Inc. | 96 | 17,730 | ||||||
Biogen, Inc.* | 30 | 8,833 | ||||||
Celgene Corp.* | 102 | 8,096 | ||||||
Gilead Sciences, Inc. | 188 | 13,284 | ||||||
Incyte Corp.* | 25 | 1,700 | ||||||
Regeneron Pharmaceuticals, Inc.* | 11 | 3,848 | ||||||
Vertex Pharmaceuticals, Inc.* | 37 | 6,247 | ||||||
|
| |||||||
83,972 | ||||||||
|
| |||||||
Building Products — 0.3% | ||||||||
Allegion plc | 14 | 1,059 | ||||||
AO Smith Corp. | 21 | 1,238 | ||||||
Fortune Brands Home & Security, Inc. | 21 | 1,130 | ||||||
Johnson Controls International plc | 134 | 4,468 | ||||||
Masco Corp. | 45 | 1,676 | ||||||
|
| |||||||
9,571 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 7 |
Table of Contents
JPMorgan Equity Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Capital Markets — 3.0% | ||||||||
Affiliated Managers Group, Inc. | 8 | 1,165 | ||||||
Ameriprise Financial, Inc. | 21 | 2,917 | ||||||
Bank of New York Mellon Corp. (The) | 146 | 7,861 | ||||||
BlackRock, Inc. | 18 | 8,876 | ||||||
CBOE Global Markets, Inc. | 16 | 1,688 | ||||||
Charles Schwab Corp. (The) | 173 | 8,849 | ||||||
CME Group, Inc. | 49 | 8,050 | ||||||
E*TRADE Financial Corp.* | 38 | 2,328 | ||||||
Franklin Resources, Inc. | 46 | 1,473 | ||||||
Goldman Sachs Group, Inc. (The) | 51 | 11,175 | ||||||
Intercontinental Exchange, Inc. | 84 | 6,144 | ||||||
Invesco Ltd. | 59 | 1,573 | ||||||
Jefferies Financial Services, Inc. | 44 | 994 | ||||||
Moody’s Corp. | 24 | 4,107 | ||||||
Morgan Stanley | 197 | 9,318 | ||||||
MSCI, Inc. | 13 | 2,124 | ||||||
Nasdaq, Inc. | 17 | 1,539 | ||||||
Northern Trust Corp. | 31 | 3,138 | ||||||
Raymond James Financial, Inc. | 19 | 1,673 | ||||||
S&P Global, Inc. | 36 | 7,390 | ||||||
State Street Corp. | 53 | 4,906 | ||||||
T. Rowe Price Group, Inc. | 35 | 4,054 | ||||||
|
| |||||||
101,342 | ||||||||
|
| |||||||
Chemicals — 1.8% | ||||||||
Air Products & Chemicals, Inc. | 32 | 4,923 | ||||||
Albemarle Corp. | 16 | 1,507 | ||||||
CF Industries Holdings, Inc. | 34 | 1,494 | ||||||
DowDuPont, Inc. | 335 | 22,064 | ||||||
Eastman Chemical Co. | 21 | 2,058 | ||||||
Ecolab, Inc. | 37 | 5,255 | ||||||
FMC Corp. | 19 | 1,731 | ||||||
International Flavors & Fragrances, Inc. | 11 | 1,411 | ||||||
LyondellBasell Industries NV, Class A | 46 | 5,093 | ||||||
Mosaic Co. (The) | 51 | 1,419 | ||||||
PPG Industries, Inc. | 36 | 3,730 | ||||||
Praxair, Inc. | 41 | 6,555 | ||||||
Sherwin-Williams Co. (The) | 12 | 4,839 | ||||||
|
| |||||||
62,079 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.3% | ||||||||
Cintas Corp. | 12 | 2,307 | ||||||
Copart, Inc.* | 29 | 1,648 | ||||||
Republic Services, Inc. | 32 | 2,198 | ||||||
Stericycle, Inc.* | 12 | 806 | ||||||
Waste Management, Inc. | 57 | 4,667 | ||||||
|
| |||||||
11,626 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Communications Equipment — 1.0% | ||||||||
Cisco Systems, Inc. | 678 | 29,185 | ||||||
F5 Networks, Inc.* | 9 | 1,520 | ||||||
Juniper Networks, Inc. | 50 | 1,381 | ||||||
Motorola Solutions, Inc. | 23 | 2,721 | ||||||
|
| |||||||
34,807 | ||||||||
|
| |||||||
Construction & Engineering — 0.1% | ||||||||
Fluor Corp. | 20 | 989 | ||||||
Jacobs Engineering Group, Inc. | 17 | 1,103 | ||||||
Quanta Services, Inc.* | 22 | 721 | ||||||
|
| |||||||
2,813 | ||||||||
|
| |||||||
Construction Materials — 0.1% | ||||||||
Martin Marietta Materials, Inc. | 9 | 2,028 | ||||||
Vulcan Materials Co. | 19 | 2,460 | ||||||
|
| |||||||
4,488 | ||||||||
|
| |||||||
Consumer Finance — 0.7% | ||||||||
American Express Co. | 103 | 10,093 | ||||||
Capital One Financial Corp. | 70 | 6,447 | ||||||
Discover Financial Services | 50 | 3,544 | ||||||
Synchrony Financial | 102 | 3,415 | ||||||
|
| |||||||
23,499 | ||||||||
|
| |||||||
Containers & Packaging — 0.3% | ||||||||
Avery Dennison Corp. | 13 | 1,296 | ||||||
Ball Corp. | 50 | 1,791 | ||||||
International Paper Co. | 60 | 3,110 | ||||||
Packaging Corp. of America | 14 | 1,521 | ||||||
Sealed Air Corp. | 23 | 987 | ||||||
WestRock Co. | 37 | 2,109 | ||||||
|
| |||||||
10,814 | ||||||||
|
| |||||||
Distributors — 0.1% | ||||||||
Genuine Parts Co. | 21 | 1,942 | ||||||
LKQ Corp.* | 45 | 1,425 | ||||||
|
| |||||||
3,367 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.0% (b) | ||||||||
H&R Block, Inc. | 30 | 687 | ||||||
|
| |||||||
Diversified Financial Services — 1.5% | ||||||||
Berkshire Hathaway, Inc., Class B* | 278 | 51,812 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% |
| |||||||
AT&T, Inc. | 1,047 | 33,608 | ||||||
CenturyLink, Inc. | 142 | 2,639 | ||||||
Verizon Communications, Inc. | 596 | 29,980 | ||||||
|
| |||||||
66,227 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
8 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Electric Utilities — 1.8% | ||||||||
Alliant Energy Corp. | 33 | 1,413 | ||||||
American Electric Power Co., Inc. | 71 | 4,919 | ||||||
Duke Energy Corp. | 101 | 7,995 | ||||||
Edison International | 47 | 2,973 | ||||||
Entergy Corp. | 26 | 2,107 | ||||||
Evergy, Inc. | 39 | 2,196 | ||||||
Eversource Energy | 46 | 2,679 | ||||||
Exelon Corp. | 139 | 5,931 | ||||||
FirstEnergy Corp. | 65 | 2,322 | ||||||
NextEra Energy, Inc. | 68 | 11,357 | ||||||
PG&E Corp. | 74 | 3,170 | ||||||
Pinnacle West Capital Corp. | 16 | 1,300 | ||||||
PPL Corp. | 101 | 2,878 | ||||||
Southern Co. (The) | 146 | 6,757 | ||||||
Xcel Energy, Inc. | 73 | 3,352 | ||||||
|
| |||||||
61,349 | ||||||||
|
| |||||||
Electrical Equipment — 0.5% | ||||||||
AMETEK, Inc. | 33 | 2,410 | ||||||
Eaton Corp. plc | 63 | 4,714 | ||||||
Emerson Electric Co. | 91 | 6,283 | ||||||
Rockwell Automation, Inc. | 18 | 3,010 | ||||||
|
| |||||||
16,417 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.4% |
| |||||||
Amphenol Corp., Class A | 43 | 3,789 | ||||||
Corning, Inc. | 120 | 3,294 | ||||||
FLIR Systems, Inc. | 20 | 1,029 | ||||||
IPG Photonics Corp.* | 5 | 1,196 | ||||||
TE Connectivity Ltd. | 50 | 4,548 | ||||||
|
| |||||||
13,856 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.8% | ||||||||
Baker Hughes a GE Co. | 60 | 1,984 | ||||||
Halliburton Co. | 126 | 5,693 | ||||||
Helmerich & Payne, Inc. | 16 | 1,001 | ||||||
National Oilwell Varco, Inc. | 55 | 2,391 | ||||||
Schlumberger Ltd. | 200 | 13,390 | ||||||
TechnipFMC plc (United Kingdom) | 63 | 1,987 | ||||||
|
| |||||||
26,446 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 2.7% |
| |||||||
Alexandria Real Estate Equities, Inc. | 15 | 1,874 | ||||||
American Tower Corp. | 64 | 9,183 | ||||||
Apartment Investment & Management Co., Class A | 23 | 960 | ||||||
AvalonBay Communities, Inc. | 20 | 3,426 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Equity Real Estate Investment Trusts (REITs) — continued |
| |||||||
Boston Properties, Inc. | 22 | 2,792 | ||||||
Crown Castle International Corp. | 60 | 6,450 | ||||||
Digital Realty Trust, Inc. | 30 | 3,314 | ||||||
Duke Realty Corp. | 51 | 1,495 | ||||||
Equinix, Inc. | 11 | 4,927 | ||||||
Equity Residential | 53 | 3,382 | ||||||
Essex Property Trust, Inc. | 10 | 2,277 | ||||||
Extra Space Storage, Inc. | 18 | 1,815 | ||||||
Federal Realty Investment Trust | 11 | 1,336 | ||||||
GGP, Inc. | 91 | 1,864 | ||||||
HCP, Inc. | 68 | 1,749 | ||||||
Host Hotels & Resorts, Inc. | 107 | 2,253 | ||||||
Iron Mountain, Inc. | 41 | 1,421 | ||||||
Kimco Realty Corp. | 61 | 1,041 | ||||||
Macerich Co. (The) | 16 | 890 | ||||||
Mid-America Apartment Communities, Inc. | 16 | 1,652 | ||||||
Prologis, Inc. | 77 | 5,052 | ||||||
Public Storage | 22 | 4,903 | ||||||
Realty Income Corp. | 41 | 2,206 | ||||||
Regency Centers Corp. | 21 | 1,320 | ||||||
SBA Communications Corp.* | 17 | 2,743 | ||||||
Simon Property Group, Inc. | 45 | 7,601 | ||||||
SL Green Realty Corp. | 13 | 1,282 | ||||||
UDR, Inc. | 39 | 1,449 | ||||||
Ventas, Inc. | 51 | 2,927 | ||||||
Vornado Realty Trust | 25 | 1,845 | ||||||
Welltower, Inc. | 54 | 3,363 | ||||||
Weyerhaeuser Co. | 109 | 3,981 | ||||||
|
| |||||||
92,773 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.4% | ||||||||
Costco Wholesale Corp. | 63 | 13,219 | ||||||
Kroger Co. (The) | 117 | 3,335 | ||||||
Sysco Corp. | 69 | 4,721 | ||||||
Walgreens Boots Alliance, Inc. | 123 | 7,381 | ||||||
Walmart, Inc. | 209 | 17,871 | ||||||
|
| |||||||
46,527 | ||||||||
|
| |||||||
Food Products — 1.1% | ||||||||
Archer-Daniels-Midland Co. | 81 | 3,696 | ||||||
Campbell Soup Co. | 28 | 1,125 | ||||||
Conagra Brands, Inc. | 57 | 2,028 | ||||||
General Mills, Inc. | 86 | 3,785 | ||||||
Hershey Co. (The) | 20 | 1,875 | ||||||
Hormel Foods Corp. | 39 | 1,449 | ||||||
JM Smucker Co. (The) | 16 | 1,761 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 9 |
Table of Contents
JPMorgan Equity Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Food Products — continued |
| |||||||
Kellogg Co. | 36 | 2,517 | ||||||
Kraft Heinz Co. (The) | 86 | 5,412 | ||||||
McCormick & Co., Inc. (Non-Voting) | 17 | 2,031 | ||||||
Mondelez International, Inc., Class A | 213 | 8,722 | ||||||
Tyson Foods, Inc., Class A | 43 | 2,955 | ||||||
|
| |||||||
37,356 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.0% |
| |||||||
Abbott Laboratories | 253 | 15,421 | ||||||
ABIOMED, Inc.* | 6 | 2,493 | ||||||
Align Technology, Inc.* | 10 | 3,559 | ||||||
Baxter International, Inc. | 71 | 5,246 | ||||||
Becton Dickinson and Co. | 39 | 9,232 | ||||||
Boston Scientific Corp.* | 199 | 6,507 | ||||||
Cooper Cos., Inc. (The) | 7 | 1,665 | ||||||
Danaher Corp. | 89 | 8,749 | ||||||
DENTSPLY SIRONA, Inc. | 33 | 1,436 | ||||||
Edwards Lifesciences Corp.* | 30 | 4,425 | ||||||
Hologic, Inc.* | 39 | 1,565 | ||||||
IDEXX Laboratories, Inc.* | 13 | 2,730 | ||||||
Intuitive Surgical, Inc.* | 16 | 7,819 | ||||||
Medtronic plc | 195 | 16,720 | ||||||
ResMed, Inc. | 21 | 2,132 | ||||||
Stryker Corp. | 46 | 7,827 | ||||||
Varian Medical Systems, Inc.* | 13 | 1,501 | ||||||
Zimmer Biomet Holdings, Inc. | 29 | 3,267 | ||||||
|
| |||||||
102,294 | ||||||||
|
| |||||||
Health Care Providers & Services — 3.1% | ||||||||
Aetna, Inc. | 47 | 8,656 | ||||||
AmerisourceBergen Corp. | 23 | 2,000 | ||||||
Anthem, Inc. | 37 | 8,761 | ||||||
Cardinal Health, Inc. | 45 | 2,188 | ||||||
Centene Corp.* | 30 | 3,646 | ||||||
Cigna Corp. | 35 | 5,963 | ||||||
CVS Health Corp. | 147 | 9,435 | ||||||
DaVita, Inc.* | 20 | 1,398 | ||||||
Envision Healthcare Corp.* | 17 | 769 | ||||||
Express Scripts Holding Co.* | 81 | 6,255 | ||||||
HCA Healthcare, Inc. | 40 | 4,135 | ||||||
Henry Schein, Inc.* | 22 | 1,614 | ||||||
Humana, Inc. | 20 | 5,910 | ||||||
Laboratory Corp. of America Holdings* | 15 | 2,649 | ||||||
McKesson Corp. | 29 | 3,887 | ||||||
Quest Diagnostics, Inc. | 20 | 2,153 | ||||||
UnitedHealth Group, Inc. | 139 | 34,003 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Health Care Providers & Services — continued |
| |||||||
Universal Health Services, Inc., Class B | 13 | 1,401 | ||||||
|
| |||||||
104,823 | ||||||||
|
| |||||||
Health Care Technology — 0.1% | ||||||||
Cerner Corp.* | 45 | 2,718 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
Carnival Corp. | 59 | 3,356 | ||||||
Chipotle Mexican Grill, Inc.* | 4 | 1,521 | ||||||
Darden Restaurants, Inc. | 18 | 1,911 | ||||||
Hilton Worldwide Holdings, Inc. | 40 | 3,190 | ||||||
Marriott International, Inc., Class A | 43 | 5,420 | ||||||
McDonald’s Corp. | 113 | 17,744 | ||||||
MGM Resorts International | 72 | 2,098 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 30 | 1,409 | ||||||
Royal Caribbean Cruises Ltd. | 24 | 2,531 | ||||||
Starbucks Corp. | 199 | 9,722 | ||||||
Wynn Resorts Ltd. | 12 | 2,044 | ||||||
Yum! Brands, Inc. | 47 | 3,646 | ||||||
|
| |||||||
54,592 | ||||||||
|
| |||||||
Household Durables — 0.4% | ||||||||
DR Horton, Inc. | 50 | 2,031 | ||||||
Garmin Ltd. | 16 | 978 | ||||||
Leggett & Platt, Inc. | 19 | 845 | ||||||
Lennar Corp., Class A | 39 | 2,072 | ||||||
Mohawk Industries, Inc.* | 9 | 1,959 | ||||||
Newell Brands, Inc. | 70 | 1,807 | ||||||
PulteGroup, Inc. | 38 | 1,089 | ||||||
Whirlpool Corp. | 9 | 1,361 | ||||||
|
| |||||||
12,142 | ||||||||
|
| |||||||
Household Products — 1.4% | ||||||||
Church & Dwight Co., Inc. | 35 | 1,876 | ||||||
Clorox Co. (The) | 19 | 2,526 | ||||||
Colgate-Palmolive Co. | 126 | 8,154 | ||||||
Kimberly-Clark Corp. | 50 | 5,307 | ||||||
Procter & Gamble Co. (The) | 363 | 28,309 | ||||||
|
| |||||||
46,172 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.1% |
| |||||||
AES Corp. | 95 | 1,279 | ||||||
NRG Energy, Inc. | 43 | 1,325 | ||||||
|
| |||||||
2,604 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.6% | ||||||||
3M Co. | 86 | 16,844 | ||||||
General Electric Co. | 1,253 | 17,048 |
SEE NOTES TO FINANCIAL STATEMENTS.
10 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Industrial Conglomerates — continued |
| |||||||
Honeywell International, Inc. | 108 | 15,517 | ||||||
Roper Technologies, Inc. | 15 | 4,105 | ||||||
|
| |||||||
53,514 | ||||||||
|
| |||||||
Insurance — 2.3% | ||||||||
Aflac, Inc. | 112 | 4,803 | ||||||
Allstate Corp. (The) | 51 | 4,627 | ||||||
American International Group, Inc. | 129 | 6,864 | ||||||
Aon plc | 35 | 4,837 | ||||||
Arthur J Gallagher & Co. | 26 | 1,716 | ||||||
Assurant, Inc. | 8 | 791 | ||||||
Brighthouse Financial, Inc.* | 17 | 692 | ||||||
Chubb Ltd. | 67 | 8,533 | ||||||
Cincinnati Financial Corp. | 22 | 1,440 | ||||||
Everest Re Group Ltd. | 6 | 1,362 | ||||||
Hartford Financial Services Group, Inc. (The) | 52 | 2,641 | ||||||
Lincoln National Corp. | 32 | 1,964 | ||||||
Loews Corp. | 38 | 1,823 | ||||||
Marsh & McLennan Cos., Inc. | 73 | 5,998 | ||||||
MetLife, Inc. | 147 | 6,392 | ||||||
Principal Financial Group, Inc. | 38 | 2,034 | ||||||
Progressive Corp. (The) | 84 | 4,968 | ||||||
Prudential Financial, Inc. | 61 | 5,664 | ||||||
Torchmark Corp. | 15 | 1,240 | ||||||
Travelers Cos., Inc. (The) | 39 | 4,769 | ||||||
Unum Group | 32 | 1,180 | ||||||
Willis Towers Watson plc | 19 | 2,883 | ||||||
XL Group Ltd. (Bermuda) | 37 | 2,084 | ||||||
|
| |||||||
79,305 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 4.2% | ||||||||
Amazon.com, Inc.* | 58 | 98,731 | ||||||
Booking Holdings, Inc.* | 7 | 14,084 | ||||||
Expedia Group, Inc. | 17 | 2,095 | ||||||
Netflix, Inc.* | 63 | 24,540 | ||||||
TripAdvisor, Inc.* | 15 | 861 | ||||||
|
| |||||||
140,311 | ||||||||
|
| |||||||
Internet Software & Services — 5.3% | ||||||||
Akamai Technologies, Inc.* | 25 | 1,802 | ||||||
Alphabet, Inc., Class A* | 43 | 48,638 | ||||||
Alphabet, Inc., Class C* | 44 | 48,848 | ||||||
eBay, Inc.* | 133 | 4,834 | ||||||
Facebook, Inc., Class A* | 346 | 67,221 | ||||||
Twitter, Inc.* | 94 | 4,124 | ||||||
VeriSign, Inc.* | 14 | 1,903 | ||||||
|
| |||||||
177,370 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
IT Services — 4.5% | ||||||||
Accenture plc, Class A | 93 | 15,173 | ||||||
Alliance Data Systems Corp. | 7 | 1,621 | ||||||
Automatic Data Processing, Inc. | 64 | 8,522 | ||||||
Broadridge Financial Solutions, Inc. | 17 | 1,958 | ||||||
Cognizant Technology Solutions Corp., Class A | 84 | 6,675 | ||||||
DXC Technology Co. | 41 | 3,311 | ||||||
Fidelity National Information Services, Inc. | 48 | 5,062 | ||||||
Fiserv, Inc.* | 59 | 4,375 | ||||||
FleetCor Technologies, Inc.* | 13 | 2,718 | ||||||
Gartner, Inc.* | 13 | 1,749 | ||||||
Global Payments, Inc. | 23 | 2,565 | ||||||
International Business Machines Corp. | 123 | 17,200 | ||||||
Mastercard, Inc., Class A | 132 | 25,986 | ||||||
Paychex, Inc. | 46 | 3,152 | ||||||
PayPal Holdings, Inc.* | 161 | 13,404 | ||||||
Total System Services, Inc. | 24 | 2,022 | ||||||
Visa, Inc., Class A | 258 | 34,120 | ||||||
Western Union Co. (The) | 66 | 1,351 | ||||||
|
| |||||||
150,964 | ||||||||
|
| |||||||
Leisure Products — 0.1% | ||||||||
Hasbro, Inc. | 16 | 1,513 | ||||||
Mattel, Inc. | 50 | 815 | ||||||
|
| |||||||
2,328 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.8% |
| |||||||
Agilent Technologies, Inc. | 46 | 2,854 | ||||||
Illumina, Inc.* | 21 | 5,921 | ||||||
IQVIA Holdings, Inc.* | 23 | 2,330 | ||||||
Mettler-Toledo International, Inc.* | 4 | 2,119 | ||||||
PerkinElmer, Inc. | 16 | 1,169 | ||||||
Thermo Fisher Scientific, Inc. | 58 | 12,019 | ||||||
Waters Corp.* | 11 | 2,187 | ||||||
|
| |||||||
28,599 | ||||||||
|
| |||||||
Machinery — 1.5% | ||||||||
Caterpillar, Inc. | 86 | 11,699 | ||||||
Cummins, Inc. | 22 | 2,971 | ||||||
Deere & Co. | 47 | 6,538 | ||||||
Dover Corp. | 22 | 1,633 | ||||||
Flowserve Corp. | 19 | 762 | ||||||
Fortive Corp. | 44 | 3,411 | ||||||
Illinois Tool Works, Inc. | 44 | 6,092 | ||||||
Ingersoll-Rand plc | 36 | 3,209 | ||||||
PACCAR, Inc. | 51 | 3,144 | ||||||
Parker-Hannifin Corp. | 19 | 2,989 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 11 |
Table of Contents
JPMorgan Equity Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Machinery — continued |
| |||||||
Pentair plc (United Kingdom) | 23 | 985 | ||||||
Snap-on, Inc. | 8 | 1,312 | ||||||
Stanley Black & Decker, Inc. | 22 | 2,956 | ||||||
Xylem, Inc. | 26 | 1,748 | ||||||
|
| |||||||
49,449 | ||||||||
|
| |||||||
Media — 2.2% | ||||||||
CBS Corp. (Non-Voting), Class B | 49 | 2,769 | ||||||
Charter Communications, Inc., Class A* | 27 | 7,832 | ||||||
Comcast Corp., Class A | 662 | 21,730 | ||||||
Discovery, Inc., Class A* | 23 | 619 | ||||||
Discovery, Inc., Class C* | 49 | 1,256 | ||||||
DISH Network Corp., Class A* | 33 | 1,110 | ||||||
Interpublic Group of Cos., Inc. (The) | 56 | 1,303 | ||||||
News Corp., Class A | 55 | 857 | ||||||
News Corp., Class B | 18 | 278 | ||||||
Omnicom Group, Inc. | 33 | 2,500 | ||||||
Twenty-First Century Fox, Inc., Class A | 152 | 7,554 | ||||||
Twenty-First Century Fox, Inc., Class B | 63 | 3,121 | ||||||
Viacom, Inc., Class B | 51 | 1,535 | ||||||
Walt Disney Co. (The) | 214 | 22,474 | ||||||
|
| |||||||
74,938 | ||||||||
|
| |||||||
Metals & Mining — 0.3% | ||||||||
Freeport-McMoRan, Inc. | 194 | 3,354 | ||||||
Newmont Mining Corp. | 77 | 2,902 | ||||||
Nucor Corp. | 46 | 2,867 | ||||||
|
| |||||||
9,123 | ||||||||
|
| |||||||
Multiline Retail — 0.5% | ||||||||
Dollar General Corp. | 37 | 3,614 | ||||||
Dollar Tree, Inc.* | 34 | 2,915 | ||||||
Kohl’s Corp. | 24 | 1,769 | ||||||
Macy’s, Inc. | 44 | 1,654 | ||||||
Nordstrom, Inc. | 17 | 877 | ||||||
Target Corp. | 77 | 5,853 | ||||||
|
| |||||||
16,682 | ||||||||
|
| |||||||
Multi-Utilities — 0.9% | ||||||||
Ameren Corp. | 35 | 2,138 | ||||||
CenterPoint Energy, Inc. | 62 | 1,724 | ||||||
CMS Energy Corp. | 41 | 1,927 | ||||||
Consolidated Edison, Inc. | 45 | 3,495 | ||||||
Dominion Energy, Inc. | 94 | 6,417 | ||||||
DTE Energy Co. | 26 | 2,712 | ||||||
NiSource, Inc. | 49 | 1,279 | ||||||
Public Service Enterprise Group, Inc. | 73 | 3,945 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Multi-Utilities — continued | ||||||||
SCANA Corp. | 21 | 792 | ||||||
Sempra Energy | 38 | 4,423 | ||||||
WEC Energy Group, Inc. | 46 | 2,942 | ||||||
|
| |||||||
31,794 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 5.5% | ||||||||
Anadarko Petroleum Corp. | 74 | 5,442 | ||||||
Andeavor | 20 | 2,630 | ||||||
Apache Corp. | 55 | 2,577 | ||||||
Cabot Oil & Gas Corp. | 65 | 1,550 | ||||||
Chevron Corp. | 276 | 34,844 | ||||||
Cimarex Energy Co. | 14 | 1,400 | ||||||
Concho Resources, Inc.* | 21 | 2,974 | ||||||
ConocoPhillips | 169 | 11,748 | ||||||
Devon Energy Corp. | 75 | 3,318 | ||||||
EOG Resources, Inc. | 83 | 10,388 | ||||||
EQT Corp. | 36 | 2,007 | ||||||
Exxon Mobil Corp. | 611 | 50,516 | ||||||
Hess Corp. | 38 | 2,526 | ||||||
HollyFrontier Corp. | 25 | 1,742 | ||||||
Kinder Morgan, Inc. | 274 | 4,835 | ||||||
Marathon Oil Corp. | 123 | 2,567 | ||||||
Marathon Petroleum Corp. | 67 | 4,674 | ||||||
Newfield Exploration Co.* | 29 | 871 | ||||||
Noble Energy, Inc. | 70 | 2,465 | ||||||
Occidental Petroleum Corp. | 110 | 9,242 | ||||||
ONEOK, Inc. | 59 | 4,140 | ||||||
Phillips 66 | 61 | 6,798 | ||||||
Pioneer Natural Resources Co. | 25 | 4,651 | ||||||
Valero Energy Corp. | 62 | 6,888 | ||||||
Williams Cos., Inc. (The) | 119 | 3,236 | ||||||
|
| |||||||
184,029 | ||||||||
|
| |||||||
Personal Products — 0.2% | ||||||||
Coty, Inc., Class A | 68 | 962 | ||||||
Estee Lauder Cos., Inc. (The), Class A | 32 | 4,609 | ||||||
|
| |||||||
5,571 | ||||||||
|
| |||||||
Pharmaceuticals — 4.3% | ||||||||
Allergan plc | 49 | 8,152 | ||||||
Bristol-Myers Squibb Co. | 236 | 13,046 | ||||||
Eli Lilly & Co. | 138 | 11,755 | ||||||
Johnson & Johnson | 387 | 46,937 | ||||||
Merck & Co., Inc. | 388 | 23,551 | ||||||
Mylan NV* | 74 | 2,687 | ||||||
Nektar Therapeutics* | 23 | 1,135 |
SEE NOTES TO FINANCIAL STATEMENTS.
12 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Pharmaceuticals — continued |
| |||||||
Perrigo Co. plc | 19 | 1,354 | ||||||
Pfizer, Inc. | 844 | 30,607 | ||||||
Zoetis, Inc. | 70 | 5,945 | ||||||
|
| |||||||
145,169 | ||||||||
|
| |||||||
Professional Services — 0.3% | ||||||||
Equifax, Inc. | 17 | 2,170 | ||||||
IHS Markit Ltd.* | 51 | 2,649 | ||||||
Nielsen Holdings plc | 48 | 1,494 | ||||||
Robert Half International, Inc. | 18 | 1,160 | ||||||
Verisk Analytics, Inc.* | 22 | 2,412 | ||||||
|
| |||||||
9,885 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.1% |
| |||||||
CBRE Group, Inc., Class A* | 44 | 2,082 | ||||||
|
| |||||||
Road & Rail — 1.0% | ||||||||
CSX Corp. | 126 | 8,052 | ||||||
JB Hunt Transport Services, Inc. | 12 | 1,501 | ||||||
Kansas City Southern | 15 | 1,568 | ||||||
Norfolk Southern Corp. | 41 | 6,148 | ||||||
Union Pacific Corp. | 112 | 15,847 | ||||||
|
| |||||||
33,116 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.0% |
| |||||||
Advanced Micro Devices, Inc.* | 119 | 1,781 | ||||||
Analog Devices, Inc. | 53 | 5,131 | ||||||
Applied Materials, Inc. | 145 | 6,715 | ||||||
Broadcom, Inc. | 58 | 14,049 | ||||||
Intel Corp. | 672 | 33,409 | ||||||
KLA-Tencor Corp. | 22 | 2,305 | ||||||
Lam Research Corp. | 24 | 4,089 | ||||||
Microchip Technology, Inc. | 34 | 3,083 | ||||||
Micron Technology, Inc.* | 167 | 8,771 | ||||||
NVIDIA Corp. | 88 | 20,739 | ||||||
Qorvo, Inc.* | 18 | 1,463 | ||||||
QUALCOMM, Inc. | 214 | 12,000 | ||||||
Skyworks Solutions, Inc. | 26 | 2,538 | ||||||
Texas Instruments, Inc. | 141 | 15,565 | ||||||
Xilinx, Inc. | 37 | 2,385 | ||||||
|
| |||||||
134,023 | ||||||||
|
| |||||||
Software — 6.0% | ||||||||
Activision Blizzard, Inc. | 110 | 8,379 | ||||||
Adobe Systems, Inc.* | 71 | 17,317 | ||||||
ANSYS, Inc.* | 12 | 2,111 | ||||||
Autodesk, Inc.* | 32 | 4,142 | ||||||
CA, Inc. | 45 | 1,607 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Software — continued |
| |||||||
Cadence Design Systems, Inc.* | 41 | 1,761 | ||||||
Citrix Systems, Inc.* | 19 | 1,947 | ||||||
Electronic Arts, Inc.* | 44 | 6,240 | ||||||
Intuit, Inc. | 35 | 7,182 | ||||||
Microsoft Corp. | 1,108 | 109,268 | ||||||
Oracle Corp. | 430 | 18,937 | ||||||
Red Hat, Inc.* | 26 | 3,443 | ||||||
salesforce.com, Inc.* | 102 | 13,875 | ||||||
Symantec Corp. | 90 | 1,851 | ||||||
Synopsys, Inc.* | 21 | 1,839 | ||||||
Take-Two Interactive Software, Inc.* | 16 | 1,952 | ||||||
|
| |||||||
201,851 | ||||||||
|
| |||||||
Specialty Retail — 2.3% | ||||||||
Advance Auto Parts, Inc. | 11 | 1,449 | ||||||
AutoZone, Inc.* | 4 | 2,580 | ||||||
Best Buy Co., Inc. | 35 | 2,638 | ||||||
CarMax, Inc.* | 26 | 1,871 | ||||||
Foot Locker, Inc. | 17 | 897 | ||||||
Gap, Inc. (The) | 31 | 1,014 | ||||||
Home Depot, Inc. (The) | 166 | 32,458 | ||||||
L Brands, Inc. | 35 | 1,290 | ||||||
Lowe’s Cos., Inc. | 119 | 11,330 | ||||||
O’Reilly Automotive, Inc.* | 12 | 3,232 | ||||||
Ross Stores, Inc. | 55 | 4,628 | ||||||
Tiffany & Co. | 15 | 1,933 | ||||||
TJX Cos., Inc. (The) | 90 | 8,608 | ||||||
Tractor Supply Co. | 18 | 1,346 | ||||||
Ulta Beauty, Inc.* | 8 | 1,925 | ||||||
|
| |||||||
77,199 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.4% |
| |||||||
Apple, Inc. | 709 | 131,219 | ||||||
Hewlett Packard Enterprise Co. | 220 | 3,218 | ||||||
HP, Inc. | 237 | 5,371 | ||||||
NetApp, Inc. | 39 | 3,034 | ||||||
Seagate Technology plc | 41 | 2,338 | ||||||
Western Digital Corp. | 43 | 3,341 | ||||||
Xerox Corp. | 31 | 740 | ||||||
|
| |||||||
149,261 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.8% | ||||||||
Hanesbrands, Inc. | 52 | 1,144 | ||||||
Michael Kors Holdings Ltd.* | 22 | 1,440 | ||||||
NIKE, Inc., Class B | 185 | 14,740 | ||||||
PVH Corp. | 11 | 1,664 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 13 |
Table of Contents
JPMorgan Equity Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Textiles, Apparel & Luxury Goods — continued |
| |||||||
Ralph Lauren Corp. | 8 | 1,009 | ||||||
Tapestry, Inc. | 42 | 1,939 | ||||||
Under Armour, Inc., Class A* | 27 | 603 | ||||||
Under Armour, Inc., Class C* | 27 | 573 | ||||||
VF Corp. | 47 | 3,849 | ||||||
|
| |||||||
26,961 | ||||||||
|
| |||||||
Tobacco — 1.0% | ||||||||
Altria Group, Inc. | 273 | 15,502 | ||||||
Philip Morris International, Inc. | 224 | 18,101 | ||||||
|
| |||||||
33,603 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.2% | ||||||||
Fastenal Co. | 41 | 1,997 | ||||||
United Rentals, Inc.* | 12 | 1,780 | ||||||
WW Grainger, Inc. | 7 | 2,267 | ||||||
|
| |||||||
6,044 | ||||||||
|
| |||||||
Water Utilities — 0.1% | ||||||||
American Water Works Co., Inc. | 26 | 2,192 | ||||||
|
| |||||||
Total Common Stocks | 3,320,461 | |||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 1.4% | ||||||||
Investment Companies — 1.4% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, | 45,445 | 45,445 | ||||||
|
| |||||||
Total Investments — 100.0% | 3,365,906 | |||||||
Liabilities in Excess of | (150 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 3,365,756 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED (DEPRECIATION) ($) | |||||||||||||||
Long Contracts | ||||||||||||||||||||
S&P 500 E-Mini Index | 341 | 09/2018 | USD | 46,403 | (838 | ) | ||||||||||||||
|
| |||||||||||||||||||
(838 | ) | |||||||||||||||||||
|
|
Abbreviations | ||
MSCI | Morgan Stanley Capital International | |
USD | United States Dollar | |
(a) | Investmentin affiliate. This security is included in an index in which the Fund, as an index fund, invests. | |
(b) | Amountrounds to less than 0.05% of net assets. | |
(c) | Investmentin affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(d) | Therate shown is the current yield as of June 30, 2018. | |
* | Non-incomeproducing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
14 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Market Expansion Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 95.6% |
| |||||||
Aerospace & Defense — 0.9% | ||||||||
Aerojet Rocketdyne Holdings, Inc.* | 24 | 693 | ||||||
Curtiss-Wright Corp. | 17 | 1,988 | ||||||
Engility Holdings, Inc.* | 7 | 225 | ||||||
KLX, Inc.* | 20 | 1,438 | ||||||
Moog, Inc., Class A | 22 | 1,729 | ||||||
Teledyne Technologies, Inc.* | 14 | 2,846 | ||||||
Triumph Group, Inc. | 18 | 347 | ||||||
|
| |||||||
9,266 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.3% | ||||||||
Echo Global Logistics, Inc.* | 11 | 322 | ||||||
Hub Group, Inc., Class A* | 68 | 3,404 | ||||||
|
| |||||||
3,726 | ||||||||
|
| |||||||
Airlines — 0.5% | ||||||||
Hawaiian Holdings, Inc. | 21 | 744 | ||||||
JetBlue Airways Corp.* | 150 | 2,845 | ||||||
SkyWest, Inc. | 33 | 1,708 | ||||||
|
| |||||||
5,297 | ||||||||
|
| |||||||
Auto Components — 1.2% | ||||||||
American Axle & Manufacturing Holdings, Inc.* | 44 | 684 | ||||||
Cooper-Standard Holdings, Inc.* | 30 | 3,881 | ||||||
Dana, Inc. | 188 | 3,798 | ||||||
Delphi Technologies plc | 40 | 1,805 | ||||||
Gentex Corp. | 114 | 2,629 | ||||||
|
| |||||||
12,797 | ||||||||
|
| |||||||
Automobiles — 0.2% | ||||||||
Thor Industries, Inc. | 20 | 1,961 | ||||||
Winnebago Industries, Inc. | 12 | 475 | ||||||
|
| |||||||
2,436 | ||||||||
|
| |||||||
Banks — 7.7% | ||||||||
Ameris Bancorp | 12 | 662 | ||||||
Associated Banc-Corp. | 123 | 3,349 | ||||||
BancorpSouth Bank | 41 | 1,356 | ||||||
Bank of Hawaii Corp. | 25 | 2,080 | ||||||
Bank of the Ozarks | 21 | 943 | ||||||
Banner Corp. | 13 | 753 | ||||||
Boston Private Financial Holdings, Inc. | 29 | 466 | ||||||
Brookline Bancorp, Inc. | 28 | 515 | ||||||
Cathay General Bancorp | 30 | 1,228 | ||||||
Columbia Banking System, Inc. | 24 | 979 | ||||||
Commerce Bancshares, Inc. | 2 | 123 | ||||||
Community Bank System, Inc. | 13 | 748 | ||||||
Cullen/Frost Bankers, Inc. | 24 | 2,619 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Banks — continued | ||||||||
East West Bancorp, Inc. | 116 | 7,573 | ||||||
First BanCorp (Puerto Rico)* | 390 | 2,986 | ||||||
First Financial Bancorp | 19 | 568 | ||||||
First Horizon National Corp. | 270 | 4,822 | ||||||
First Midwest Bancorp, Inc. | 141 | 3,597 | ||||||
Fulton Financial Corp. | 79 | 1,297 | ||||||
Hancock Whitney Corp. | 83 | 3,849 | ||||||
Hanmi Financial Corp. | 53 | 1,516 | ||||||
Home BancShares, Inc. | 32 | 722 | ||||||
Independent Bank Corp. | 11 | 877 | ||||||
LegacyTexas Financial Group, Inc. | 14 | 554 | ||||||
MB Financial, Inc. | 21 | 969 | ||||||
NBT Bancorp, Inc. | 13 | 497 | ||||||
Opus Bank | 8 | 218 | ||||||
PacWest Bancorp | 89 | 4,384 | ||||||
Pinnacle Financial Partners, Inc. | 28 | 1,745 | ||||||
Signature Bank* | 17 | 2,161 | ||||||
Sterling Bancorp | 49 | 1,156 | ||||||
Synovus Financial Corp. | 117 | 6,198 | ||||||
TCF Financial Corp. | 222 | 5,453 | ||||||
Texas Capital Bancshares, Inc.* | 50 | 4,529 | ||||||
Trustmark Corp. | 25 | 800 | ||||||
UMB Financial Corp. | 14 | 1,075 | ||||||
Umpqua Holdings Corp. | 114 | 2,580 | ||||||
United Community Banks, Inc. | 106 | 3,263 | ||||||
Wintrust Financial Corp. | 52 | 4,555 | ||||||
|
| |||||||
83,765 | ||||||||
|
| |||||||
Biotechnology — 1.3% | ||||||||
Acorda Therapeutics, Inc.* | 53 | 1,527 | ||||||
AMAG Pharmaceuticals, Inc.* | 95 | 1,845 | ||||||
Emergent BioSolutions, Inc.* | 7 | 338 | ||||||
Momenta Pharmaceuticals, Inc.* | 136 | 2,790 | ||||||
Myriad Genetics, Inc.* | 26 | 975 | ||||||
United Therapeutics Corp.* | 59 | 6,684 | ||||||
|
| |||||||
14,159 | ||||||||
|
| |||||||
Building Products — 0.7% | ||||||||
Gibraltar Industries, Inc.* | 12 | 454 | ||||||
Lennox International, Inc. | 20 | 3,954 | ||||||
PGT Innovations, Inc.* | 17 | 359 | ||||||
Universal Forest Products, Inc. | 77 | 2,818 | ||||||
|
| |||||||
7,585 | ||||||||
|
| |||||||
Capital Markets — 2.2% | ||||||||
Donnelley Financial Solutions, Inc.* | 10 | 175 | ||||||
Eaton Vance Corp. | 48 | 2,500 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 15 |
Table of Contents
JPMorgan Market Expansion Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Capital Markets — continued | ||||||||
Evercore, Inc., Class A | 41 | 4,323 | ||||||
FactSet Research Systems, Inc. | 15 | 3,051 | ||||||
Financial Engines, Inc. | 27 | 1,199 | ||||||
Interactive Brokers Group, Inc., Class A | 29 | 1,849 | ||||||
INTL. FCStone, Inc.* | 6 | 326 | ||||||
Investment Technology Group, Inc. | 16 | 328 | ||||||
Janus Henderson Group plc (United Kingdom) | 55 | 1,705 | ||||||
Legg Mason, Inc. | 34 | 1,174 | ||||||
Piper Jaffray Cos. | 6 | 454 | ||||||
SEI Investments Co. | 53 | 3,291 | ||||||
Stifel Financial Corp. | 59 | 3,068 | ||||||
|
| |||||||
23,443 | ||||||||
|
| |||||||
Chemicals — 2.6% | ||||||||
A Schulman, Inc. | 55 | 2,456 | ||||||
AdvanSix, Inc.* | 10 | 370 | ||||||
American Vanguard Corp. | 11 | 259 | ||||||
Ashland Global Holdings, Inc. | 13 | 991 | ||||||
Cabot Corp. | 48 | 2,974 | ||||||
Chemours Co. (The) | 106 | 4,680 | ||||||
FutureFuel Corp. | 41 | 574 | ||||||
Hawkins, Inc. | 4 | 138 | ||||||
Ingevity Corp.* | 23 | 1,860 | ||||||
Innophos Holdings, Inc. | 45 | 2,142 | ||||||
Innospec, Inc. | 9 | 689 | ||||||
Koppers Holdings, Inc.* | 43 | 1,657 | ||||||
Kraton Corp.* | 24 | 1,112 | ||||||
Minerals Technologies, Inc. | 15 | 1,096 | ||||||
PolyOne Corp. | 32 | 1,396 | ||||||
Rayonier Advanced Materials, Inc. | 48 | 815 | ||||||
RPM International, Inc. | 24 | 1,376 | ||||||
Scotts Miracle-Gro Co. (The) | 16 | 1,364 | ||||||
Stepan Co. | 34 | 2,627 | ||||||
|
| |||||||
28,576 | ||||||||
|
| |||||||
Commercial Services & Supplies — 1.8% | ||||||||
ABM Industries, Inc. | 21 | 621 | ||||||
Brink’s Co. (The) | 20 | 1,555 | ||||||
Copart, Inc.* | 75 | 4,248 | ||||||
Essendant, Inc. | 65 | 864 | ||||||
Herman Miller, Inc. | 39 | 1,314 | ||||||
HNI Corp. | 16 | 587 | ||||||
Interface, Inc. | 25 | 571 | ||||||
LSC Communications, Inc. | 81 | 1,262 | ||||||
MSA Safety, Inc. | 12 | 1,127 | ||||||
Pitney Bowes, Inc. | 69 | 593 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Commercial Services & Supplies — continued | ||||||||
RR Donnelley & Sons Co. | 74 | 425 | ||||||
Tetra Tech, Inc. | 66 | 3,842 | ||||||
UniFirst Corp. | 7 | 1,150 | ||||||
Viad Corp. | 20 | 1,077 | ||||||
|
| |||||||
19,236 | ||||||||
|
| |||||||
Communications Equipment — 1.0% | ||||||||
ARRIS International plc* | 151 | 3,687 | ||||||
Ciena Corp.* | 61 | 1,625 | ||||||
Comtech Telecommunications Corp. | 9 | 290 | ||||||
Digi International, Inc.* | 53 | 696 | ||||||
InterDigital, Inc. | 12 | 1,003 | ||||||
Lumentum Holdings, Inc.* | 26 | 1,517 | ||||||
NETGEAR, Inc.* | 20 | 1,225 | ||||||
Plantronics, Inc. | 16 | 1,235 | ||||||
|
| |||||||
11,278 | ||||||||
|
| |||||||
Construction & Engineering — 2.0% | ||||||||
AECOM* | 116 | 3,824 | ||||||
Aegion Corp.* | 85 | 2,185 | ||||||
Comfort Systems USA, Inc. | 38 | 1,751 | ||||||
Dycom Industries, Inc.* | 12 | 1,143 | ||||||
EMCOR Group, Inc. | 56 | 4,301 | ||||||
Granite Construction, Inc. | 16 | 874 | ||||||
KBR, Inc. | 179 | 3,211 | ||||||
MYR Group, Inc.* | 70 | 2,479 | ||||||
Orion Group Holdings, Inc.* | 62 | 509 | ||||||
Valmont Industries, Inc. | 9 | 1,281 | ||||||
|
| |||||||
21,558 | ||||||||
|
| |||||||
Construction Materials — 0.0% (a) | ||||||||
US Concrete, Inc.* | 5 | 262 | ||||||
|
| |||||||
Consumer Finance — 0.9% | ||||||||
Enova International, Inc.* | 14 | 497 | ||||||
FirstCash, Inc. | 43 | 3,846 | ||||||
Green Dot Corp., Class A* | 54 | 3,941 | ||||||
SLM Corp.* | 169 | 1,932 | ||||||
|
| |||||||
10,216 | ||||||||
|
| |||||||
Containers & Packaging — 0.6% | ||||||||
AptarGroup, Inc. | 7 | 635 | ||||||
Bemis Co., Inc. | 10 | 401 | ||||||
Greif, Inc., Class A | 9 | 470 | ||||||
Owens-Illinois, Inc.* | 161 | 2,713 | ||||||
Silgan Holdings, Inc. | 29 | 789 | ||||||
Sonoco Products Co. | 23 | 1,218 | ||||||
|
| |||||||
6,226 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
16 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Distributors — 0.2% | ||||||||
Core-Mark Holding Co., Inc. | 6 | 136 | ||||||
Pool Corp. | 16 | 2,439 | ||||||
|
| |||||||
2,575 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.3% | ||||||||
Adtalem Global Education, Inc.* | 22 | 1,073 | ||||||
American Public Education, Inc.* | 7 | 307 | ||||||
Capella Education Co. | 6 | 549 | ||||||
Graham Holdings Co., Class B | 2 | 1,055 | ||||||
Sotheby’s* | 6 | 304 | ||||||
Strayer Education, Inc. | 4 | 486 | ||||||
|
| |||||||
3,774 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 0.5% |
| |||||||
ATN International, Inc. | 4 | 216 | ||||||
Frontier Communications Corp. | 29 | 153 | ||||||
Vonage Holdings Corp.* | 357 | 4,597 | ||||||
|
| |||||||
4,966 | ||||||||
|
| |||||||
Electric Utilities — 1.5% | ||||||||
ALLETE, Inc. | 29 | 2,229 | ||||||
El Paso Electric Co. | 32 | 1,867 | ||||||
Hawaiian Electric Industries, Inc. | 73 | 2,518 | ||||||
IDACORP, Inc. | 33 | 3,041 | ||||||
OGE Energy Corp. | 144 | 5,068 | ||||||
PNM Resources, Inc. | 32 | 1,260 | ||||||
|
| |||||||
15,983 | ||||||||
|
| |||||||
Electrical Equipment — 1.0% | ||||||||
Encore Wire Corp. | 9 | 427 | ||||||
EnerSys | 54 | 4,047 | ||||||
Hubbell, Inc. | 20 | 2,092 | ||||||
Regal Beloit Corp. | 51 | 4,200 | ||||||
|
| |||||||
10,766 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 5.2% |
| |||||||
Anixter International, Inc.* | 12 | 728 | ||||||
Arrow Electronics, Inc.* | 81 | 6,086 | ||||||
Avnet, Inc. | 111 | 4,741 | ||||||
Bel Fuse, Inc., Class B | 28 | 594 | ||||||
Belden, Inc. | 15 | 924 | ||||||
Benchmark Electronics, Inc. | 92 | 2,671 | ||||||
Cognex Corp. | 9 | 384 | ||||||
Coherent, Inc.* | 9 | 1,391 | ||||||
Electro Scientific Industries, Inc.* | 16 | 249 | ||||||
Insight Enterprises, Inc.* | 27 | 1,311 | ||||||
Jabil, Inc. | 147 | 4,052 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electronic Equipment, Instruments & Components — continued |
| |||||||
KEMET Corp.* | 76 | 1,835 | ||||||
Keysight Technologies, Inc.* | 105 | 6,204 | ||||||
Littelfuse, Inc. | 8 | 1,873 | ||||||
Methode Electronics, Inc. | 64 | 2,561 | ||||||
National Instruments Corp. | 44 | 1,847 | ||||||
Plexus Corp.* | 53 | 3,150 | ||||||
Rogers Corp.* | 6 | 658 | ||||||
Sanmina Corp.* | 58 | 1,702 | ||||||
ScanSource, Inc.* | 5 | 189 | ||||||
SYNNEX Corp. | 9 | 859 | ||||||
Tech Data Corp.* | 50 | 4,073 | ||||||
Trimble, Inc.* | 78 | 2,553 | ||||||
TTM Technologies, Inc.* | 81 | 1,426 | ||||||
Vishay Intertechnology, Inc. | 52 | 1,211 | ||||||
Zebra Technologies Corp., Class A* | 23 | 3,281 | ||||||
|
| |||||||
56,553 | ||||||||
|
| |||||||
Energy Equipment & Services — 1.7% | ||||||||
Apergy Corp.* | 32 | 1,324 | ||||||
Archrock, Inc. | 53 | 638 | ||||||
C&J Energy Services, Inc.* | 26 | 609 | ||||||
Ensco plc, Class A | 68 | 494 | ||||||
Era Group, Inc.* | 34 | 440 | ||||||
Exterran Corp.* | 91 | 2,270 | ||||||
Helix Energy Solutions Group, Inc.* | 33 | 278 | ||||||
Matrix Service Co.* | 14 | 253 | ||||||
McDermott International, Inc.* | 125 | 2,454 | ||||||
Newpark Resources, Inc.* | 36 | 385 | ||||||
Noble Corp. plc* | 90 | 570 | ||||||
Oceaneering International, Inc. | 42 | 1,064 | ||||||
Oil States International, Inc.* | 25 | 805 | ||||||
Patterson-UTI Energy, Inc. | 90 | 1,612 | ||||||
Pioneer Energy Services Corp.* | 28 | 166 | ||||||
Rowan Cos. plc, Class A* | 46 | 749 | ||||||
SEACOR Holdings, Inc.* | 6 | 338 | ||||||
Superior Energy Services, Inc.* | 63 | 614 | ||||||
TETRA Technologies, Inc.* | 53 | 234 | ||||||
Transocean Ltd.* | 178 | 2,390 | ||||||
Unit Corp.* | 22 | 555 | ||||||
US Silica Holdings, Inc. | 29 | 750 | ||||||
|
| |||||||
18,992 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 7.9% |
| |||||||
Agree Realty Corp. | 40 | 2,100 | ||||||
Alexander & Baldwin, Inc. | 25 | 595 | ||||||
American Assets Trust, Inc. | 92 | 3,507 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 17 |
Table of Contents
JPMorgan Market Expansion Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Equity Real Estate Investment Trusts (REITs) — continued |
| |||||||
American Campus Communities, Inc. | 80 | 3,442 | ||||||
Armada Hoffler Properties, Inc. | 196 | 2,920 | ||||||
Camden Property Trust | 34 | 3,058 | ||||||
Chatham Lodging Trust | 16 | 346 | ||||||
Chesapeake Lodging Trust | 23 | 728 | ||||||
CoreCivic, Inc. | 71 | 1,691 | ||||||
CoreSite Realty Corp. | 18 | 2,028 | ||||||
Corporate Office Properties Trust | 104 | 3,019 | ||||||
Cousins Properties, Inc. | 105 | 1,015 | ||||||
CyrusOne, Inc. | 31 | 1,786 | ||||||
DCT Industrial Trust, Inc. | 26 | 1,702 | ||||||
DiamondRock Hospitality Co. | 228 | 2,795 | ||||||
Douglas Emmett, Inc. | 69 | 2,768 | ||||||
EPR Properties | 8 | 539 | ||||||
First Industrial Realty Trust, Inc. | 44 | 1,460 | ||||||
GEO Group, Inc. (The) | 121 | 3,342 | ||||||
Getty Realty Corp. | 99 | 2,799 | ||||||
Hersha Hospitality Trust | 15 | 320 | ||||||
Highwoods Properties, Inc. | 103 | 5,210 | ||||||
Hospitality Properties Trust | 155 | 4,424 | ||||||
JBG SMITH Properties | 37 | 1,364 | ||||||
Kilroy Realty Corp. | 35 | 2,667 | ||||||
Kite Realty Group Trust | 78 | 1,328 | ||||||
LaSalle Hotel Properties | 60 | 2,057 | ||||||
Liberty Property Trust | 47 | 2,065 | ||||||
Life Storage, Inc. | 20 | 1,907 | ||||||
Medical Properties Trust, Inc. | 71 | 1,000 | ||||||
National Storage Affiliates Trust | 41 | 1,276 | ||||||
PotlatchDeltic Corp. | 46 | 2,314 | ||||||
PS Business Parks, Inc. | 28 | 3,618 | ||||||
Ramco-Gershenson Properties Trust | 33 | 440 | ||||||
Rayonier, Inc. | 123 | 4,747 | ||||||
Sabra Health Care REIT, Inc. | 62 | 1,340 | ||||||
Saul Centers, Inc. | 4 | 240 | ||||||
Senior Housing Properties Trust | 167 | 3,016 | ||||||
Summit Hotel Properties, Inc. | 41 | 592 | ||||||
Taubman Centers, Inc. | 26 | 1,504 | ||||||
Uniti Group, Inc. | 69 | 1,380 | ||||||
Urstadt Biddle Properties, Inc., Class A | 13 | 283 | ||||||
Weingarten Realty Investors | 17 | 529 | ||||||
|
| |||||||
85,261 | ||||||||
|
| |||||||
Food & Staples Retailing — 0.3% | ||||||||
Casey’s General Stores, Inc. | 3 | 321 | ||||||
SpartanNash Co. | 64 | 1,638 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Food & Staples Retailing — continued |
| |||||||
Sprouts Farmers Market, Inc.* | 8 | 174 | ||||||
United Natural Foods, Inc.* | 20 | 866 | ||||||
|
| |||||||
2,999 | ||||||||
|
| |||||||
Food Products — 2.0% | ||||||||
Darling Ingredients, Inc.* | 61 | 1,213 | ||||||
Dean Foods Co. | 132 | 1,392 | ||||||
Flowers Foods, Inc. | 98 | 2,050 | ||||||
Hain Celestial Group, Inc. (The)* | 26 | 789 | ||||||
Ingredion, Inc. | 54 | 6,007 | ||||||
J&J Snack Foods Corp. | 5 | 807 | ||||||
John B Sanfilippo & Son, Inc. | 3 | 238 | ||||||
Lamb Weston Holdings, Inc. | 52 | 3,563 | ||||||
Post Holdings, Inc.* | 44 | 3,750 | ||||||
Sanderson Farms, Inc. | 8 | 791 | ||||||
Seneca Foods Corp., Class A* | 12 | 315 | ||||||
TreeHouse Foods, Inc.* | 23 | 1,218 | ||||||
|
| |||||||
22,133 | ||||||||
|
| |||||||
Gas Utilities — 1.8% | ||||||||
Atmos Energy Corp. | 77 | 6,955 | ||||||
National Fuel Gas Co. | 41 | 2,152 | ||||||
New Jersey Resources Corp. | 36 | 1,599 | ||||||
Southwest Gas Holdings, Inc. | 19 | 1,453 | ||||||
Spire, Inc. | 2 | 148 | ||||||
UGI Corp. | 141 | 7,325 | ||||||
WGL Holdings, Inc. | 3 | 293 | ||||||
|
| |||||||
19,925 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.3% | ||||||||
AngioDynamics, Inc.* | 41 | 905 | ||||||
Cantel Medical Corp. | 14 | 1,367 | ||||||
CONMED Corp. | 10 | 710 | ||||||
Globus Medical, Inc., Class A* | 30 | 1,504 | ||||||
Haemonetics Corp.* | 23 | 2,080 | ||||||
Hill-Rom Holdings, Inc. | 62 | 5,398 | ||||||
ICU Medical, Inc.* | 6 | 1,821 | ||||||
Inogen, Inc.* | 2 | 428 | ||||||
Integer Holdings Corp.* | 49 | 3,187 | ||||||
Lantheus Holdings, Inc.* | 93 | 1,349 | ||||||
LivaNova plc* | 17 | 1,707 | ||||||
Masimo Corp.* | 30 | 2,939 | ||||||
Natus Medical, Inc.* | 13 | 452 | ||||||
NuVasive, Inc.* | 19 | 980 | ||||||
OraSure Technologies, Inc.* | 22 | 356 | ||||||
Orthofix International NV* | 19 | 1,080 |
SEE NOTES TO FINANCIAL STATEMENTS.
18 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Health Care Equipment & Supplies — continued |
| |||||||
STERIS plc | 34 | 3,528 | ||||||
Surmodics, Inc.* | 6 | 353 | ||||||
Teleflex, Inc. | 17 | 4,667 | ||||||
Varex Imaging Corp.* | 15 | 549 | ||||||
West Pharmaceutical Services, Inc. | 3 | 298 | ||||||
|
| |||||||
35,658 | ||||||||
|
| |||||||
Health Care Providers & Services — 3.7% | ||||||||
Acadia Healthcare Co., Inc.* | 18 | 728 | ||||||
AMN Healthcare Services, Inc.* | 19 | 1,105 | ||||||
Chemed Corp. | 7 | 2,092 | ||||||
Community Health Systems, Inc.* | 49 | 162 | ||||||
Cross Country Healthcare, Inc.* | 99 | 1,109 | ||||||
Diplomat Pharmacy, Inc.* | 21 | 544 | ||||||
Encompass Health Corp. | 88 | 5,980 | ||||||
Kindred Healthcare, Inc.* | 28 | 253 | ||||||
LifePoint Health, Inc.* | 16 | 786 | ||||||
Magellan Health, Inc.* | 26 | 2,472 | ||||||
MEDNAX, Inc.* | 81 | 3,492 | ||||||
Molina Healthcare, Inc.* | 30 | 2,957 | ||||||
Owens & Minor, Inc. | 88 | 1,466 | ||||||
Patterson Cos., Inc. | 79 | 1,789 | ||||||
Select Medical Holdings Corp.* | 158 | 2,873 | ||||||
Tenet Healthcare Corp.* | 108 | 3,612 | ||||||
WellCare Health Plans, Inc.* | 35 | 8,520 | ||||||
|
| |||||||
39,940 | ||||||||
|
| |||||||
Health Care Technology — 0.1% |
| |||||||
Allscripts Healthcare Solutions, Inc.* | 75 | 904 | ||||||
HealthStream, Inc. | 12 | 319 | ||||||
Quality Systems, Inc.* | 20 | 386 | ||||||
|
| |||||||
1,609 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.5% | ||||||||
BJ’s Restaurants, Inc. | 7 | 402 | ||||||
Boyd Gaming Corp. | 13 | 437 | ||||||
Brinker International, Inc. | 59 | 2,826 | ||||||
Cheesecake Factory, Inc. (The) | 19 | 1,046 | ||||||
Cracker Barrel Old Country Store, Inc. | 11 | 1,753 | ||||||
Dine Brands Global, Inc. | 7 | 509 | ||||||
Domino’s Pizza, Inc. | 17 | 4,769 | ||||||
Jack in the Box, Inc. | 9 | 800 | ||||||
Papa John’s International, Inc. | 6 | 309 | ||||||
Red Robin Gourmet Burgers, Inc.* | 5 | 242 | ||||||
Ruth’s Hospitality Group, Inc. | 11 | 306 | ||||||
Scientific Games Corp., Class A* | 21 | 1,042 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Hotels, Restaurants & Leisure — continued |
| |||||||
Texas Roadhouse, Inc. | 26 | 1,707 | ||||||
|
| |||||||
16,148 | ||||||||
|
| |||||||
Household Durables — 2.1% | ||||||||
Helen of Troy Ltd.* | 25 | 2,420 | ||||||
KB Home | 138 | 3,748 | ||||||
La-Z-Boy, Inc. | 18 | 541 | ||||||
MDC Holdings, Inc. | 19 | 574 | ||||||
NVR, Inc.* | 2 | 4,720 | ||||||
Toll Brothers, Inc. | 120 | 4,450 | ||||||
TopBuild Corp.* | 35 | 2,766 | ||||||
TRI Pointe Group, Inc.* | 46 | 754 | ||||||
Tupperware Brands Corp. | 59 | 2,440 | ||||||
William Lyon Homes, Class A* | 11 | 255 | ||||||
|
| |||||||
22,668 | ||||||||
|
| |||||||
Household Products — 0.5% | ||||||||
Central Garden & Pet Co.* | 15 | 665 | ||||||
Central Garden & Pet Co., Class A* | 78 | 3,149 | ||||||
Energizer Holdings, Inc. | 24 | 1,488 | ||||||
|
| |||||||
5,302 | ||||||||
|
| |||||||
Industrial Conglomerates — 0.3% | ||||||||
Carlisle Cos., Inc. | 25 | 2,711 | ||||||
Raven Industries, Inc. | 13 | 481 | ||||||
|
| |||||||
3,192 | ||||||||
|
| |||||||
Insurance — 4.1% | ||||||||
Alleghany Corp. | 7 | 4,118 | ||||||
American Equity Investment Life Holding Co. | 35 | 1,246 | ||||||
American Financial Group, Inc. | 54 | 5,792 | ||||||
Aspen Insurance Holdings Ltd. (Bermuda) | 23 | 942 | ||||||
Brown & Brown, Inc. | 67 | 1,857 | ||||||
CNO Financial Group, Inc. | 67 | 1,272 | ||||||
First American Financial Corp. | 78 | 4,034 | ||||||
Hanover Insurance Group, Inc. (The) | 51 | 6,053 | ||||||
HCI Group, Inc. | 3 | 104 | ||||||
Kemper Corp. | 19 | 1,415 | ||||||
Maiden Holdings Ltd. | 26 | 201 | ||||||
Navigators Group, Inc. (The) | 5 | 301 | ||||||
Old Republic International Corp. | 194 | 3,855 | ||||||
Primerica, Inc. | 17 | 1,693 | ||||||
Reinsurance Group of America, Inc. | 23 | 3,083 | ||||||
RenaissanceRe Holdings Ltd. (Bermuda) | 16 | 1,973 | ||||||
Safety Insurance Group, Inc. | 5 | 436 | ||||||
Selective Insurance Group, Inc. | 21 | 1,132 | ||||||
Stewart Information Services Corp. | 10 | 409 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 19 |
Table of Contents
JPMorgan Market Expansion Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Insurance — continued |
| |||||||
United Fire Group, Inc. | 9 | 463 | ||||||
United Insurance Holdings Corp. | 39 | 754 | ||||||
Universal Insurance Holdings, Inc. | 15 | 512 | ||||||
WR Berkley Corp. | 34 | 2,446 | ||||||
|
| |||||||
44,091 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.3% | ||||||||
FTD Cos., Inc.* | 7 | 34 | ||||||
Nutrisystem, Inc. | 9 | 343 | ||||||
Shutterfly, Inc.* | 33 | 2,989 | ||||||
|
| |||||||
3,366 | ||||||||
|
| |||||||
Internet Software & Services — 0.7% | ||||||||
Blucora, Inc.* | 16 | 581 | ||||||
Cars.com, Inc.* | 14 | 395 | ||||||
j2 Global, Inc. | 19 | 1,637 | ||||||
LogMeIn, Inc. | 18 | 1,838 | ||||||
NIC, Inc. | 21 | 330 | ||||||
QuinStreet, Inc.* | 52 | 658 | ||||||
SPS Commerce, Inc.* | 7 | 544 | ||||||
Stamps.com, Inc.* | 6 | 1,442 | ||||||
XO Group, Inc.* | 10 | 329 | ||||||
|
| |||||||
7,754 | ||||||||
|
| |||||||
IT Services — 3.0% | ||||||||
CACI International, Inc., Class A* | 26 | 4,351 | ||||||
Cardtronics plc, Class A* | 17 | 420 | ||||||
Convergys Corp. | 31 | 765 | ||||||
CoreLogic, Inc.* | 33 | 1,697 | ||||||
CSG Systems International, Inc. | 26 | 1,075 | ||||||
EVERTEC, Inc. (Puerto Rico) | 24 | 529 | ||||||
ExlService Holdings, Inc.* | 36 | 2,047 | ||||||
Leidos Holdings, Inc. | 89 | 5,239 | ||||||
ManTech International Corp., Class A | 9 | 483 | ||||||
MAXIMUS, Inc. | 9 | 565 | ||||||
Perficient, Inc.* | 61 | 1,608 | ||||||
Perspecta, Inc. | 109 | 2,232 | ||||||
Sabre Corp. | 78 | 1,917 | ||||||
Science Applications International Corp. | 47 | 3,796 | ||||||
Sykes Enterprises, Inc.* | 78 | 2,252 | ||||||
Teradata Corp.* | 63 | 2,517 | ||||||
Travelport Worldwide Ltd. | 50 | 931 | ||||||
Virtusa Corp.* | 11 | 511 | ||||||
|
| |||||||
32,935 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Leisure Products — 0.6% | ||||||||
Brunswick Corp. | 35 | 2,250 | ||||||
Callaway Golf Co. | 40 | 759 | ||||||
Nautilus, Inc.* | 15 | 235 | ||||||
Polaris Industries, Inc. | 22 | 2,722 | ||||||
|
| |||||||
5,966 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.5% | ||||||||
Bio-Rad Laboratories, Inc., Class A* | 8 | 2,366 | ||||||
Charles River Laboratories International, Inc.* | 21 | 2,369 | ||||||
Syneos Health, Inc.* | 21 | 1,004 | ||||||
|
| |||||||
5,739 | ||||||||
|
| |||||||
Machinery — 3.8% | ||||||||
AGCO Corp. | 58 | 3,499 | ||||||
Alamo Group, Inc. | 3 | 289 | ||||||
Barnes Group, Inc. | 19 | 1,132 | ||||||
Briggs & Stratton Corp. | 78 | 1,377 | ||||||
Crane Co. | 59 | 4,729 | ||||||
Federal Signal Corp. | 23 | 527 | ||||||
Greenbrier Cos., Inc. (The) | 55 | 2,896 | ||||||
Harsco Corp.* | 33 | 723 | ||||||
Hillenbrand, Inc. | 27 | 1,249 | ||||||
IDEX Corp. | 24 | 3,234 | ||||||
ITT, Inc. | 78 | 4,067 | ||||||
Kennametal, Inc. | 29 | 1,034 | ||||||
Lincoln Electric Holdings, Inc. | 25 | 2,220 | ||||||
Lydall, Inc.* | 6 | 254 | ||||||
Oshkosh Corp. | 28 | 1,997 | ||||||
SPX Corp.* | 14 | 497 | ||||||
SPX FLOW, Inc.* | 17 | 739 | ||||||
Standex International Corp. | 5 | 511 | ||||||
Terex Corp. | 70 | 2,948 | ||||||
Timken Co. (The) | 30 | 1,292 | ||||||
Toro Co. (The) | 34 | 2,055 | ||||||
Wabash National Corp. | 21 | 397 | ||||||
Wabtec Corp. | 8 | 762 | ||||||
Watts Water Technologies, Inc., Class A | 42 | 3,301 | ||||||
|
| |||||||
41,729 | ||||||||
|
| |||||||
Marine — 0.2% |
| |||||||
Kirby Corp.* | 22 | 1,864 | ||||||
|
| |||||||
Media — 1.1% | ||||||||
AMC Networks, Inc., Class A* | 32 | 2,003 | ||||||
Cinemark Holdings, Inc. | 8 | 270 | ||||||
Gannett Co., Inc. | 133 | 1,427 | ||||||
John Wiley & Sons, Inc., Class A | 34 | 2,115 |
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Media — continued |
| |||||||
Live Nation Entertainment, Inc.* | 32 | 1,562 | ||||||
Meredith Corp. | 31 | 1,594 | ||||||
New Media Investment Group, Inc. | 31 | 571 | ||||||
TEGNA, Inc. | 154 | 1,670 | ||||||
World Wrestling Entertainment, Inc., Class A | 16 | 1,158 | ||||||
|
| |||||||
12,370 | ||||||||
|
| |||||||
Metals & Mining — 2.0% | ||||||||
AK Steel Holding Corp.* | 126 | 545 | ||||||
Carpenter Technology Corp. | 7 | 379 | ||||||
Century Aluminum Co.* | 19 | 291 | ||||||
Commercial Metals Co. | 42 | 890 | ||||||
Kaiser Aluminum Corp. | 7 | 724 | ||||||
Materion Corp. | 8 | 412 | ||||||
Reliance Steel & Aluminum Co. | 60 | 5,260 | ||||||
Royal Gold, Inc. | 8 | 761 | ||||||
Steel Dynamics, Inc. | 154 | 7,097 | ||||||
SunCoke Energy, Inc.* | 26 | 346 | ||||||
United States Steel Corp. | 102 | 3,558 | ||||||
Worthington Industries, Inc. | 45 | 1,886 | ||||||
|
| |||||||
22,149 | ||||||||
|
| |||||||
Multiline Retail — 0.2% | ||||||||
Big Lots, Inc. | 22 | 907 | ||||||
Dillard’s, Inc., Class A | 8 | 728 | ||||||
|
| |||||||
1,635 | ||||||||
|
| |||||||
Multi-Utilities — 0.9% | ||||||||
Avista Corp. | 34 | 1,770 | ||||||
MDU Resources Group, Inc. | 76 | 2,177 | ||||||
NorthWestern Corp. | 17 | 964 | ||||||
Vectren Corp. | 71 | 5,079 | ||||||
|
| |||||||
9,990 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 2.8% | ||||||||
Carrizo Oil & Gas, Inc.* | 33 | 922 | ||||||
Chesapeake Energy Corp.* | 291 | 1,523 | ||||||
CNX Resources Corp.* | 80 | 1,413 | ||||||
CONSOL Energy, Inc.* | 10 | 377 | ||||||
Denbury Resources, Inc.* | 191 | 917 | ||||||
Energen Corp.* | 40 | 2,891 | ||||||
Gulfport Energy Corp.* | 58 | 733 | ||||||
HighPoint Resources Corp.* | 49 | 299 | ||||||
Matador Resources Co.* | 21 | 619 | ||||||
Murphy Oil Corp. | 74 | 2,496 | ||||||
Oasis Petroleum, Inc.* | 108 | 1,402 | ||||||
Par Pacific Holdings, Inc.* | 80 | 1,390 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Oil, Gas & Consumable Fuels — continued |
| |||||||
PBF Energy, Inc., Class A | 109 | 4,575 | ||||||
PDC Energy, Inc.* | 27 | 1,638 | ||||||
QEP Resources, Inc.* | 92 | 1,133 | ||||||
REX American Resources Corp.* | 3 | 210 | ||||||
SM Energy Co. | 41 | 1,064 | ||||||
Southwestern Energy Co.* | 195 | 1,034 | ||||||
SRC Energy, Inc.* | 100 | 1,102 | ||||||
World Fuel Services Corp. | 27 | 555 | ||||||
WPX Energy, Inc.* | 202 | 3,644 | ||||||
|
| |||||||
29,937 | ||||||||
|
| |||||||
Paper & Forest Products — 1.1% | ||||||||
Boise Cascade Co. | 48 | 2,137 | ||||||
Domtar Corp. | 76 | 3,646 | ||||||
KapStone Paper and Packaging Corp. | 17 | 591 | ||||||
Louisiana-Pacific Corp. | 96 | 2,616 | ||||||
Schweitzer-Mauduit International, Inc. | 68 | 2,952 | ||||||
|
| |||||||
11,942 | ||||||||
|
| |||||||
Personal Products — 0.2% | ||||||||
Avon Products, Inc. (United Kingdom)* | 180 | 291 | ||||||
Medifast, Inc. | 5 | 823 | ||||||
Nu Skin Enterprises, Inc., Class A | 20 | 1,556 | ||||||
|
| |||||||
2,670 | ||||||||
|
| |||||||
Pharmaceuticals — 0.9% | ||||||||
Akorn, Inc.* | 147 | 2,439 | ||||||
Catalent, Inc.* | 53 | 2,233 | ||||||
Depomed, Inc.* | 263 | 1,755 | ||||||
Medicines Co. (The)* | 101 | 3,718 | ||||||
|
| |||||||
10,145 | ||||||||
|
| |||||||
Professional Services — 2.1% | ||||||||
ASGN, Inc.* | 19 | 1,501 | ||||||
Dun & Bradstreet Corp. (The) | 14 | 1,754 | ||||||
FTI Consulting, Inc.* | 17 | 1,045 | ||||||
Heidrick& Struggles International, Inc. | 59 | 2,055 | ||||||
Insperity, Inc. | 40 | 3,801 | ||||||
Kelly Services, Inc., Class A | 26 | 579 | ||||||
Korn/Ferry International | 67 | 4,143 | ||||||
ManpowerGroup, Inc. | 53 | 4,577 | ||||||
Navigant Consulting, Inc.* | 18 | 405 | ||||||
Resources Connection, Inc. | 46 | 769 | ||||||
TrueBlue, Inc.* | 86 | 2,319 | ||||||
|
| |||||||
22,948 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 21 |
Table of Contents
JPMorgan Market Expansion Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Real Estate Management & Development — 0.6% |
| |||||||
HFF, Inc., Class A | 14 | 473 | ||||||
Jones Lang LaSalle, Inc. | 35 | 5,733 | ||||||
|
| |||||||
6,206 | ||||||||
|
| |||||||
Road & Rail — 1.4% | ||||||||
ArcBest Corp. | 59 | 2,706 | ||||||
Avis Budget Group, Inc.* | 76 | 2,454 | ||||||
Knight-Swift Transportation Holdings, Inc. | 42 | 1,593 | ||||||
Landstar System, Inc. | 31 | 3,393 | ||||||
Old Dominion Freight Line, Inc. | 27 | 3,977 | ||||||
Saia, Inc.* | 9 | 695 | ||||||
|
| |||||||
14,818 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 2.5% |
| |||||||
Advanced Energy Industries, Inc.* | 17 | 964 | ||||||
Cabot Microelectronics Corp. | 9 | 941 | ||||||
Cirrus Logic, Inc.* | 24 | 906 | ||||||
Cohu, Inc. | 64 | 1,571 | ||||||
Cree, Inc.* | 7 | 287 | ||||||
Cypress Semiconductor Corp. | 145 | 2,261 | ||||||
First Solar, Inc.* | 47 | 2,496 | ||||||
Integrated Device Technology, Inc.* | 52 | 1,670 | ||||||
Kulicke & Soffa Industries, Inc. (Singapore) | 155 | 3,698 | ||||||
MKS Instruments, Inc. | 31 | 3,002 | ||||||
Nanometrics, Inc.* | 43 | 1,513 | ||||||
Photronics, Inc.* | 23 | 184 | ||||||
Rudolph Technologies, Inc.* | 74 | 2,178 | ||||||
Semtech Corp.* | 11 | 532 | ||||||
SolarEdge Technologies, Inc.* | 17 | 813 | ||||||
Synaptics, Inc.* | 13 | 675 | ||||||
Teradyne, Inc. | 81 | 3,091 | ||||||
Ultra Clean Holdings, Inc.* | 31 | 522 | ||||||
Veeco Instruments, Inc.* | 3 | 37 | ||||||
|
| |||||||
27,341 | ||||||||
|
| |||||||
Software — 2.4% | ||||||||
8x8, Inc.* | 41 | 824 | ||||||
ACI Worldwide, Inc.* | 46 | 1,145 | ||||||
Bottomline Technologies de, Inc.* | 14 | 678 | ||||||
CDK Global, Inc. | 30 | 1,926 | ||||||
CommVault Systems, Inc.* | 20 | 1,297 | ||||||
Fair Isaac Corp.* | 13 | 2,582 | ||||||
Fortinet, Inc.* | 79 | 4,944 | ||||||
MicroStrategy, Inc., Class A* | 15 | 1,910 | ||||||
Monotype Imaging Holdings, Inc. | 38 | 763 | ||||||
Progress Software Corp. | 19 | 729 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Software — continued | ||||||||
PTC, Inc.* | 53 | 4,973 | ||||||
Qualys, Inc.* | 13 | 1,054 | ||||||
Synchronoss Technologies, Inc.* | 14 | 88 | ||||||
TiVo Corp. | 75 | 1,010 | ||||||
Ultimate Software Group, Inc. (The)* | 8 | 2,110 | ||||||
|
| |||||||
26,033 | ||||||||
|
| |||||||
Specialty Retail — 3.2% | ||||||||
Aaron’s, Inc. | 71 | 3,078 | ||||||
Abercrombie & Fitch Co., Class A | 26 | 627 | ||||||
American Eagle Outfitters, Inc. | 110 | 2,564 | ||||||
Asbury Automotive Group, Inc.* | 43 | 2,955 | ||||||
AutoNation, Inc.* | 25 | 1,219 | ||||||
Caleres, Inc. | 45 | 1,555 | ||||||
Cato Corp. (The), Class A | 28 | 688 | ||||||
Chico’s FAS, Inc. | 81 | 661 | ||||||
Children’s Place, Inc. (The) | 9 | 1,116 | ||||||
Dick’s Sporting Goods, Inc. | 33 | 1,153 | ||||||
DSW, Inc., Class A | 26 | 674 | ||||||
Express, Inc.* | 28 | 254 | ||||||
GameStop Corp., Class A | 40 | 577 | ||||||
Genesco, Inc.* | 5 | 191 | ||||||
Group 1 Automotive, Inc. | 8 | 526 | ||||||
Haverty Furniture Cos., Inc. | 6 | 139 | ||||||
Lithia Motors, Inc., Class A | 10 | 929 | ||||||
Michaels Cos., Inc. (The)* | 41 | 776 | ||||||
Murphy USA, Inc.* | 9 | 676 | ||||||
Office Depot, Inc. | 408 | 1,041 | ||||||
RH* | 8 | 1,090 | ||||||
Sally Beauty Holdings, Inc.* | 51 | 822 | ||||||
Signet Jewelers Ltd. | 25 | 1,383 | ||||||
Sleep Number Corp.* | 19 | 554 | ||||||
Tailored Brands, Inc. | 88 | 2,236 | ||||||
Urban Outfitters, Inc.* | 94 | 4,183 | ||||||
Williams-Sonoma, Inc. | 30 | 1,829 | ||||||
Zumiez, Inc.* | 33 | 827 | ||||||
|
| |||||||
34,323 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 0.3% |
| |||||||
NCR Corp.* | 107 | 3,196 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.1% | ||||||||
Carter’s, Inc. | 19 | 2,059 | ||||||
Crocs, Inc.* | 30 | 520 | ||||||
Deckers Outdoor Corp.* | 24 | 2,709 | ||||||
Fossil Group, Inc.* | 21 | 572 |
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Textiles, Apparel & Luxury Goods — continued |
| |||||||
Movado Group, Inc. | 6 | 309 | ||||||
Oxford Industries, Inc. | 5 | 432 | ||||||
Perry Ellis International, Inc.* | 38 | 1,033 | ||||||
Skechers U.S.A., Inc., Class A* | 53 | 1,586 | ||||||
Steven Madden Ltd. | 21 | 1,138 | ||||||
Wolverine World Wide, Inc. | 33 | 1,158 | ||||||
|
| |||||||
11,516 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.4% | ||||||||
BofI Holding, Inc.* | 16 | 667 | ||||||
Dime Community Bancshares, Inc. | 28 | 554 | ||||||
Provident Financial Services, Inc. | 37 | 1,015 | ||||||
TrustCo Bank Corp. | 164 | 1,463 | ||||||
Walker & Dunlop, Inc. | 11 | 618 | ||||||
|
| |||||||
4,317 | ||||||||
|
| |||||||
Tobacco — 0.1% | ||||||||
Universal Corp. | 8 | 555 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.9% | ||||||||
Applied Industrial Technologies, Inc. | 15 | 1,080 | ||||||
DXP Enterprises, Inc.* | 5 | 191 | ||||||
Kaman Corp. | 49 | 3,380 | ||||||
MSC Industrial Direct Co., Inc., Class A | 18 | 1,519 | ||||||
NOW, Inc.* | 53 | 704 | ||||||
Veritiv Corp.* | 27 | 1,064 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Trading Companies & Distributors — continued |
| |||||||
Watsco, Inc. | 13 | 2,318 | ||||||
|
| |||||||
10,256 | ||||||||
|
| |||||||
Water Utilities — 0.1% | ||||||||
American States Water Co. | 14 | 820 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.3% |
| |||||||
Spok Holdings, Inc. | 34 | 510 | ||||||
Telephone & Data Systems, Inc. | 113 | 3,099 | ||||||
|
| |||||||
3,609 | ||||||||
|
| |||||||
Total Common Stocks | 1,038,490 | |||||||
|
| |||||||
Short-Term Investments — 2.9% | ||||||||
Investment Companies — 2.9% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) | 31,498 | 31,498 | ||||||
|
| |||||||
Total Investments — 98.5% | 1,069,988 | |||||||
Other Assets Less Liabilities — 1.5% | 15,810 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,085,798 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts) : | ||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED (DEPRECIATION) ($) | |||||||||||||
Long Contracts |
| |||||||||||||||||
Russell 2000 E-Mini Index | 147 | 09/2018 | USD | 12,109 | (130 | ) | ||||||||||||
S&P Midcap 400 E-Mini Index | 164 | 09/2018 | USD | 32,080 | (361 | ) | ||||||||||||
|
| |||||||||||||||||
(491 | ) | |||||||||||||||||
|
|
Abbreviations | ||
REIT | Real Estate Investment Trust | |
USD | United States Dollar | |
(a) | Amountrounds to less than 0.05% of net assets. | |
(b) | Investmentin affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(c) | Therate shown is the current yield as of June 30, 2018. | |
* | Non-incomeproducing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 23 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||
ASSETS: | ||||||||
Investments in non-affiliates, at value | $ | 3,269,295 | $ | 1,038,490 | ||||
Investments in affiliates, at value | 96,611 | 31,498 | ||||||
Cash | 8 | — | (a) | |||||
Deposits at broker for futures contracts | 2,358 | 1,437 | ||||||
Receivables: | ||||||||
Investment securities sold | 3,497 | 21,043 | ||||||
Fund shares sold | 874 | 710 | ||||||
Dividends from non-affiliates | 2,744 | 1,090 | ||||||
Dividends from affiliates | 46 | 38 | ||||||
Variation margin on futures contracts | 37 | — | ||||||
Due from adviser | 6 | — | ||||||
|
|
|
| |||||
Total Assets | 3,375,476 | 1,094,306 | ||||||
|
|
|
| |||||
LIABILITIES: | ||||||||
Payables: | ||||||||
Investment securities purchased | 1,653 | 7,390 | ||||||
Fund shares redeemed | 7,325 | 648 | ||||||
Variation margin on futures contracts | — | 21 | ||||||
Accrued liabilities: | ||||||||
Investment advisory fees | — | 51 | ||||||
Administration fees | 48 | — | ||||||
Distribution fees | 173 | 64 | ||||||
Service fees | 115 | 217 | ||||||
Custodian and accounting fees | 22 | 1 | ||||||
Trustees’ and Chief Compliance Officer’s fees | — | — | (a) | |||||
Other | 384 | 116 | ||||||
|
|
|
| |||||
Total Liabilities | 9,720 | 8,508 | ||||||
|
|
|
| |||||
Net Assets | $ | 3,365,756 | $ | 1,085,798 | ||||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||
NET ASSETS: | ||||||||
Paid-in-Capital | $ | 1,964,663 | $ | 685,497 | ||||
Accumulated undistributed (distributions in excess of) net investment income | 1,043 | 5,175 | ||||||
Accumulated net realized gains (losses) | (22,099 | ) | 78,157 | |||||
Net unrealized appreciation (depreciation) | 1,422,149 | 316,969 | ||||||
|
|
|
| |||||
Total Net Assets | $ | 3,365,756 | $ | 1,085,798 | ||||
|
|
|
| |||||
Net Assets: | ||||||||
Class A | $ | 590,286 | $ | 171,304 | ||||
Class C | 78,613 | 36,618 | ||||||
Class I | 687,941 | 864,316 | ||||||
Class R2 | — | 13,560 | ||||||
Class R6 | 2,008,916 | — | ||||||
|
|
|
| |||||
Total | $ | 3,365,756 | $ | 1,085,798 | ||||
|
|
|
| |||||
Outstanding units of beneficial interest (shares) | ||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||
Class A | 14,177 | 14,575 | ||||||
Class C | 1,905 | 3,724 | ||||||
Class I | 16,505 | 72,529 | ||||||
Class R2 | — | 1,173 | ||||||
Class R6 | 48,200 | — | ||||||
Net Asset Value (a): | ||||||||
Class A — Redemption price per share | $ | 41.64 | $ | 11.75 | ||||
Class C — Offering price per share (b) | 41.27 | 9.83 | ||||||
Class I — Offering and redemption price per share | 41.68 | 11.92 | ||||||
Class R2 — Offering and redemption price per share | — | 11.56 | ||||||
Class R6 — Offering and redemption price per share | 41.68 | — | ||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | ||||
Class A maximum public offering price per share | $ | 43.95 | $ | 12.40 | ||||
|
|
|
| |||||
Cost of investments in non-affiliates | $ | 1,869,805 | $ | 721,030 | ||||
Cost of investments in affiliates | 73,114 | 31,498 |
(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.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 25 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||
INVESTMENT INCOME: | ||||||||
Interest income from non-affiliates | $ | 2 | $ | 9 | ||||
Interest income from affiliates | — | (a) | 1 | |||||
Dividend income from non-affiliates | 49,332 | 14,830 | ||||||
Dividend income from affiliates | 1,268 | 293 | ||||||
|
|
|
| |||||
Total investment income | 50,602 | 15,133 | ||||||
|
|
|
| |||||
EXPENSES: | ||||||||
Investment advisory fees | 1,045 | 2,622 | ||||||
Administration fees | 2,122 | 852 | ||||||
Distribution fees: | ||||||||
Class A | 1,497 | 423 | ||||||
Class C | 625 | 273 | ||||||
Class R2 | — | 108 | ||||||
Service fees: | ||||||||
Class A | 1,497 | 423 | ||||||
Class C | 208 | 91 | ||||||
Class I | 1,724 | 2,054 | ||||||
Class R2 | — | 54 | ||||||
Custodian and accounting fees | 112 | 35 | ||||||
Interest expense to affiliates | — | (a) | — | |||||
Professional fees | 80 | 65 | ||||||
Trustees’ and Chief Compliance Officer’s fees | 33 | 29 | ||||||
Printing and mailing costs | 87 | 52 | ||||||
Registration and filing fees | 192 | 98 | ||||||
Transfer agency fees (See Note 2.E.) | 335 | 111 | ||||||
Other | 47 | 25 | ||||||
|
|
|
| |||||
Total expenses | 9,604 | 7,315 | ||||||
|
|
|
| |||||
Less fees waived | (4,158 | ) | (2,883 | ) | ||||
Less expense reimbursements | — | (a) | (9 | ) | ||||
|
|
|
| |||||
Net expenses | 5,446 | 4,423 | ||||||
|
|
|
| |||||
Net investment income (loss) | 45,156 | 10,710 | ||||||
|
|
|
| |||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gain (loss) on transactions from: | ||||||||
Investments in non-affiliates | 14,190 | 116,129 | ||||||
Investments in affiliates | 119 | — | ||||||
Futures contracts | 3,867 | 5,213 | ||||||
|
|
|
| |||||
Net realized gain (loss) | 18,176 | 121,342 | ||||||
|
|
|
| |||||
Change in net unrealized appreciation/depreciation on: | ||||||||
Investments in non-affiliates | 217,566 | 7,767 | ||||||
Investments in affiliates | 3,186 | — | ||||||
Futures contracts | (817 | ) | (433 | ) | ||||
|
|
|
| |||||
Change in net unrealized appreciation/depreciation | 219,935 | 7,334 | ||||||
|
|
|
| |||||
Net realized/unrealized gains (losses) | 238,111 | 128,676 | ||||||
|
|
|
| |||||
Change in net assets resulting from operations | $ | 283,267 | $ | 139,386 | ||||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 45,156 | $ | 29,500 | $ | 10,710 | $ | 10,588 | ||||||||
Net realized gain (loss) | 18,176 | 58,301 | 121,342 | 83,310 | ||||||||||||
Change in net unrealized appreciation/depreciation | 219,935 | 187,638 | 7,334 | 83,009 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 283,267 | 275,439 | 139,386 | 176,907 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (7,918 | ) | (9,630 | ) | (1,158 | ) | (747 | ) | ||||||||
From net realized gains | (5,731 | ) | (50,124 | ) | (17,242 | ) | (9,476 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | (621 | ) | (901 | ) | (155 | ) | (129 | ) | ||||||||
From net realized gains | (748 | ) | (7,682 | ) | (4,114 | ) | (3,120 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (10,804 | ) | (14,603 | ) | (6,791 | ) | (7,073 | ) | ||||||||
From net realized gains | (6,187 | ) | (65,912 | ) | (81,308 | ) | (74,429 | ) | ||||||||
Class R2 | ||||||||||||||||
From net investment income | — | — | (136 | ) | (77 | ) | ||||||||||
From net realized gains | — | — | (2,564 | ) | (1,167 | ) | ||||||||||
Class R6 (a) | ||||||||||||||||
From net investment income | (25,086 | ) | (4,127 | ) | — | — | ||||||||||
From net realized gains | (15,063 | ) | (20,272 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (72,158 | ) | (173,251 | ) | (113,468 | ) | (96,218 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 1,405,217 | 139,860 | 48,732 | (4,899 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 1,616,326 | 242,048 | 74,650 | 75,790 | ||||||||||||
Beginning of period | 1,749,430 | 1,507,382 | 1,011,148 | 935,358 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 3,365,756 | $ | 1,749,430 | $ | 1,085,798 | $ | 1,011,148 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 1,043 | $ | 848 | $ | 5,175 | $ | 2,811 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 1, 2016 for JPMorgan Equity Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 27 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 76,579 | $ | 87,696 | $ | 45,244 | $ | 104,426 | ||||||||
Distributions reinvested | 13,481 | 59,202 | 16,959 | 9,108 | ||||||||||||
Cost of shares redeemed | (143,780 | ) | (200,298 | ) | (57,263 | ) | (59,090 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (53,720 | ) | $ | (53,400 | ) | $ | 4,940 | $ | 54,444 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 16,727 | $ | 24,354 | $ | 10,500 | $ | 20,627 | ||||||||
Distributions reinvested | 1,051 | 6,658 | 4,116 | 2,957 | ||||||||||||
Cost of shares redeemed | (37,994 | ) | (35,729 | ) | (15,808 | ) | (12,094 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (20,216 | ) | $ | (4,717 | ) | $ | (1,192 | ) | $ | 11,490 | |||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 169,466 | $ | 212,874 | $ | 170,059 | $ | 169,115 | ||||||||
Distributions reinvested | 15,815 | 67,647 | 84,229 | 72,072 | ||||||||||||
Cost of shares redeemed | (310,723 | ) | (408,621 | ) | (200,340 | ) | (322,041 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (125,442 | ) | $ | (128,100 | ) | $ | 53,948 | $ | (80,854 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 10,299 | $ | 13,272 | ||||||||
Distributions reinvested | — | — | 2,524 | 1,031 | ||||||||||||
Cost of shares redeemed | — | — | (21,787 | ) | (4,282 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | (8,964 | ) | $ | 10,021 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 1,919,175 | $ | 327,166 | $ | — | $ | — | ||||||||
Subscriptions in-kind (See Note 8) | 67,453 | — | — | — | ||||||||||||
Distributions reinvested | 40,148 | 22,758 | — | — | ||||||||||||
Cost of shares redeemed | (422,181 | ) | (23,847 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 1,604,595 | $ | 326,077 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 1,405,217 | $ | 139,860 | $ | 48,732 | $ | (4,899 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 1, 2016 for JPMorgan Equity Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Equity Index Fund | JPMorgan Market Expansion Enhanced Index Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 1,894 | 2,404 | 3,866 | 9,202 | ||||||||||||
Reinvested | 333 | 1,686 | 1,498 | 816 | ||||||||||||
Redeemed | (3,573 | ) | (5,502 | ) | (4,922 | ) | (5,223 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (1,346 | ) | (1,412 | ) | 442 | 4,795 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 418 | 677 | 1,064 | 2,113 | ||||||||||||
Reinvested | 26 | 192 | 434 | 310 | ||||||||||||
Redeemed | (958 | ) | (990 | ) | (1,583 | ) | (1,241 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (514 | ) | (121 | ) | (85 | ) | 1,182 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 4,144 | 5,859 | 14,517 | 14,770 | ||||||||||||
Reinvested | 391 | 1,922 | 7,337 | 6,391 | ||||||||||||
Redeemed | (7,802 | ) | (11,165 | ) | (16,932 | ) | (27,991 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (3,267 | ) | (3,384 | ) | 4,922 | (6,830 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | — | — | 898 | 1,192 | ||||||||||||
Reinvested | — | — | 227 | 93 | ||||||||||||
Redeemed | — | — | (1,950 | ) | (383 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | (825 | ) | 902 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Issued | 46,560 | 9,051 | — | — | ||||||||||||
Subscriptions in-kind (See Note 8) | 1,764 | — | — | — | ||||||||||||
Reinvested | 986 | 646 | — | — | ||||||||||||
Redeemed | (10,158 | ) | (649 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 39,152 | 9,048 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 1, 2016 for JPMorgan Equity Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 29 |
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 | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Equity Index Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 37.41 | $ | 0.61 | $ | 4.54 | $ | 5.15 | $ | (0.54 | ) | $ | (0.38 | ) | $ | (0.92 | ) | |||||||||||
Year Ended June 30, 2017 | 35.36 | 0.61 | 5.22 | 5.83 | (0.59 | ) | (3.19 | ) | (3.78 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 41.12 | 0.71 | 0.38 | 1.09 | (0.67 | ) | (6.18 | ) | (6.85 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 41.94 | 0.68 | 2.11 | 2.79 | (0.66 | ) | (2.95 | ) | (3.61 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 36.43 | 0.64 | 7.78 | 8.42 | (0.63 | ) | (2.28 | ) | (2.91 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 37.08 | 0.37 | 4.50 | 4.87 | (0.30 | ) | (0.38 | ) | (0.68 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.09 | 0.36 | 5.18 | 5.54 | (0.36 | ) | (3.19 | ) | (3.55 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 40.86 | 0.43 | 0.38 | 0.81 | (0.40 | ) | (6.18 | ) | (6.58 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 41.72 | 0.37 | 2.09 | 2.46 | (0.37 | ) | (2.95 | ) | (3.32 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 36.28 | 0.35 | 7.73 | 8.08 | (0.36 | ) | (2.28 | ) | (2.64 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 37.44 | 0.72 | 4.54 | 5.26 | (0.64 | ) | (0.38 | ) | (1.02 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.39 | 0.70 | 5.22 | 5.92 | (0.68 | ) | (3.19 | ) | (3.87 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 41.14 | 0.81 | 0.38 | 1.19 | (0.76 | ) | (6.18 | ) | (6.94 | ) | ||||||||||||||||||
Year Ended June 30, 2015 | 41.96 | 0.79 | 2.10 | 2.89 | (0.76 | ) | (2.95 | ) | (3.71 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 36.44 | 0.74 | 7.79 | 8.53 | (0.73 | ) | (2.28 | ) | (3.01 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 37.44 | 0.76 | 4.57 | 5.33 | (0.71 | ) | (0.38 | ) | (1.09 | ) | ||||||||||||||||||
September 1, 2016 (f) through June 30, 2017 | 36.73 | 0.58 | 4.05 | 4.63 | (0.73 | ) | (3.19 | ) | (3.92 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
30 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 41.64 | 13.88 | % | $ | 590,286 | 0.45 | % | 1.52 | % | 0.69 | % | 14 | % | |||||||||||||
37.41 | 17.35 | 580,645 | 0.45 | 1.67 | 0.76 | 21 | ||||||||||||||||||||
35.36 | 3.53 | 598,815 | 0.45 | 1.93 | 0.94 | 4 | ||||||||||||||||||||
41.12 | 6.94 | 689,107 | 0.45 | 1.63 | 0.92 | 5 | ||||||||||||||||||||
41.94 | 23.95 | 694,974 | 0.45 | 1.63 | 0.91 | 5 | ||||||||||||||||||||
41.27 | 13.20 | 78,613 | 1.05 | 0.92 | 1.15 | 14 | ||||||||||||||||||||
37.08 | 16.57 | 89,681 | 1.11 | 1.01 | 1.23 | 21 | ||||||||||||||||||||
35.09 | 2.76 | 89,104 | 1.20 | 1.19 | 1.43 | 4 | ||||||||||||||||||||
40.86 | 6.15 | 88,842 | 1.20 | 0.88 | 1.41 | 5 | ||||||||||||||||||||
41.72 | 23.01 | 77,644 | 1.20 | 0.88 | 1.41 | 5 | ||||||||||||||||||||
41.68 | 14.18 | 687,941 | 0.20 | 1.78 | 0.40 | 14 | ||||||||||||||||||||
37.44 | 17.62 | 740,340 | 0.20 | 1.93 | 0.48 | 21 | ||||||||||||||||||||
35.39 | 3.81 | 819,463 | 0.20 | 2.17 | 0.67 | 4 | ||||||||||||||||||||
41.14 | 7.19 | 1,114,957 | 0.20 | 1.88 | 0.66 | 5 | ||||||||||||||||||||
41.96 | 24.27 | 1,120,177 | 0.20 | 1.89 | 0.66 | 5 | ||||||||||||||||||||
41.68 | 14.36 | 2,008,916 | 0.042 | 1.85 | 0.14 | 14 | ||||||||||||||||||||
37.44 | 13.49 | 338,764 | 0.045 | 1.93 | 0.15 | 21 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 31 |
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 | ||||||||||||||||||||||
JPMorgan Market Expansion Enhanced Index Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 11.52 | $ | 0.10 | $ | 1.46 | $ | 1.56 | $ | (0.08 | ) | $ | (1.25 | ) | $ | (1.33 | ) | |||||||||||
Year Ended June 30, 2017 | 10.64 | 0.10 | 1.92 | 2.02 | (0.08 | ) | (1.06 | ) | (1.14 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 12.98 | 0.09 | (0.21 | ) | (0.12 | ) | (0.08 | ) | (2.14 | ) | (2.22 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 13.85 | 0.10 | 0.72 | 0.82 | (0.10 | ) | (1.59 | ) | (1.69 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.17 | 0.09 | (d) | 2.81 | 2.90 | (0.08 | ) | (1.14 | ) | (1.22 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 9.85 | 0.03 | 1.24 | 1.27 | (0.04 | ) | (1.25 | ) | (1.29 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 9.27 | 0.03 | 1.65 | 1.68 | (0.04 | ) | (1.06 | ) | (1.10 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 11.62 | 0.01 | (0.19 | ) | (0.18 | ) | (0.03 | ) | (2.14 | ) | (2.17 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 12.58 | 0.01 | 0.65 | 0.66 | (0.03 | ) | (1.59 | ) | (1.62 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.18 | — | (d)(e) | 2.56 | 2.56 | (0.02 | ) | (1.14 | ) | (1.16 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 11.66 | 0.13 | 1.48 | 1.61 | (0.10 | ) | (1.25 | ) | (1.35 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 10.75 | 0.13 | 1.94 | 2.07 | (0.10 | ) | (1.06 | ) | (1.16 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 13.09 | 0.12 | (0.21 | ) | (0.09 | ) | (0.11 | ) | (2.14 | ) | (2.25 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 13.94 | 0.13 | 0.74 | 0.87 | (0.13 | ) | (1.59 | ) | (1.72 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.24 | 0.12 | (d) | 2.83 | 2.95 | (0.11 | ) | (1.14 | ) | (1.25 | ) | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 11.36 | 0.07 | 1.44 | 1.51 | (0.06 | ) | (1.25 | ) | (1.31 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 10.52 | 0.07 | 1.89 | 1.96 | (0.06 | ) | (1.06 | ) | (1.12 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 12.87 | 0.07 | (0.22 | ) | (0.15 | ) | (0.06 | ) | (2.14 | ) | (2.20 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 13.74 | 0.07 | 0.72 | 0.79 | (0.07 | ) | (1.59 | ) | (1.66 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.09 | 0.06 | (d) | 2.78 | 2.84 | (0.05 | ) | (1.14 | ) | (1.19 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(d) | 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 remained the same for Class A, Class C, Class I and Class R2 Shares and the net investment income (loss) ratio would have been 0.65%, (0.03)%, 0.90% and 0.42% for Class A, Class C, Class I and Class R2 Shares respectively. |
(e) | Amount rounds to less than $0.005. |
(f) | Amount rounds to less than 0.005%. |
SEE NOTES TO FINANCIAL STATEMENTS.
32 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 11.75 | 14.02 | % | $ | 171,304 | 0.60 | % | 0.85 | % | 0.88 | % | 33 | % | |||||||||||||
11.52 | 19.37 | 162,853 | 0.62 | 0.87 | 0.93 | 30 | ||||||||||||||||||||
10.64 | 0.22 | 99,397 | 0.69 | 0.81 | 0.98 | 39 | ||||||||||||||||||||
12.98 | 6.90 | 110,138 | 0.68 | 0.75 | 0.92 | 39 | ||||||||||||||||||||
13.85 | 24.96 | 116,727 | 0.69 | 0.68 | (d) | 0.87 | 25 | |||||||||||||||||||
9.83 | 13.46 | 36,618 | 1.10 | 0.34 | 1.38 | 33 | ||||||||||||||||||||
9.85 | 18.58 | 37,529 | 1.17 | 0.32 | 1.44 | 30 | ||||||||||||||||||||
9.27 | (0.43 | ) | 24,343 | 1.39 | 0.12 | 1.52 | 39 | |||||||||||||||||||
11.62 | 6.25 | 23,705 | 1.38 | 0.06 | 1.44 | 39 | ||||||||||||||||||||
12.58 | 24.03 | 23,248 | 1.37 | 0.00 | (d)(f) | 1.37 | 25 | |||||||||||||||||||
11.92 | 14.31 | 864,316 | 0.35 | 1.10 | 0.61 | 33 | ||||||||||||||||||||
11.66 | 19.66 | 788,063 | 0.38 | 1.13 | 0.62 | 30 | ||||||||||||||||||||
10.75 | 0.47 | 800,082 | 0.44 | 1.04 | 0.63 | 39 | ||||||||||||||||||||
13.09 | 7.26 | 1,203,536 | 0.43 | 1.00 | 0.62 | 39 | ||||||||||||||||||||
13.94 | 25.26 | 1,413,937 | 0.44 | 0.92 | (d) | 0.62 | 25 | |||||||||||||||||||
11.56 | 13.79 | 13,560 | 0.83 | 0.61 | 1.35 | 33 | ||||||||||||||||||||
11.36 | 19.06 | 22,703 | 0.85 | 0.63 | 1.29 | 30 | ||||||||||||||||||||
10.52 | (0.05 | ) | 11,536 | 0.92 | 0.60 | 1.40 | 39 | |||||||||||||||||||
12.87 | 6.75 | 9,946 | 0.91 | 0.53 | 1.26 | 39 | ||||||||||||||||||||
13.74 | 24.60 | 8,821 | 0.92 | 0.45 | (d) | 1.12 | 25 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 33 |
Table of Contents
AS OF JUNE 30, 2018
1. Organization
JPMorgan Trust II (“JPM II” or the “Trust”) was formed on November 12, 2004, as a Delaware statutory trust, pursuant to a Declaration of Trust dated November 5, 2004 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 2 separate funds of the Trust (each a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Diversified/Non-Diversified | |||
JPMorgan Equity Index Fund | Class A, Class C, Class I and Class R6* | Diversified | ||
JPMorgan Market Expansion Enhanced Index Fund | Class A, Class C, Class I and Class R2 | Diversified |
* | Class R6 Shares of the JPMorgan Equity Index Fund commenced operations on September 1, 2016. |
The investment objective of the JPMorgan Equity Index Fund (“Equity Index Fund”) is to seek investment results that correspond to the aggregate price and dividend performance of securities in the Standard & Poor’s 500 Composite Stock Price Index.
The investment objective of the JPMorgan Market Expansion Enhanced Index Fund (“Market Expansion Enhanced Index Fund”) is to seek to provide investment results that correspond to or incrementally exceed the total return performance of an index that tracks the performance of the small- and mid-capitalization equity markets.
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 I, Class R2 and Class R6 Shares. Certain Class A Shares, for which front-end sales charges have been waived, may be subject to a CDSC as described in the Funds’ prospectuses. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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. Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
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Futures contracts are generally valued on the basis of available market quotations.
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). |
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):
Equity Index Fund
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 3,365,906 | $ | — | $ | — | $ | 3,365,906 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (838 | ) | $ | — | $ | — | $ | (838 | ) | ||||||
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Market Expansion Enhanced Index Fund
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 1,069,988 | $ | — | $ | — | $ | 1,069,988 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (491 | ) | $ | — | $ | — | $ | (491 | ) | ||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for industry specifics of portfolio holdings. |
There were no transfers among any levels during the year ended June 30, 2018.
B. Futures Contracts — The Funds used index futures contracts to gain or reduce exposure to their respective indices, 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 use of futures contracts exposes the Funds to equity price risk. 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.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 35 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The table below discloses the volume of the Funds’ futures contracts activity during the year ended June 30, 2018 (amounts in thousands):
Equity Index Fund | Market Expansion Enhanced Index Fund | |||||||
Futures Contracts — Equity | ||||||||
Average Notional Balance Long | $ | 23,817 | $ | 22,279 | ||||
Ending Notional Balance Long | 46,403 | 44,189 |
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).
C. Investment Transactions with Affiliates — An issuer which is under common control with a fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. Underlying Funds’ distributions may be reinvested into the Underlying Funds. Reinvestment amounts are included in the purchase cost amounts in the table below. Amounts in the tables below are in thousands.
Equity Index Fund
For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Chase & Co. Shares (a) | $ | 27,280 | $ | 26,000 | $ | 5,419 | $ | 119 | $ | 3,186 | $ | 51,166 | 491 | $ | 848 | $ | — | |||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) | 6,258 | 1,864,564 | 1,825,377 | — | — | 45,445 | 45,445 | 420 | — | |||||||||||||||||||||||||||
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Total | $ | 33,538 | $ | 1,890,564 | $ | 1,830,796 | $ | 119 | $ | 3,186 | $ | 96,611 | $ | 1,268 | $ | — | ||||||||||||||||||||
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(a) | Investment in affiliate. This security is included in an index in which the Fund, as an index fund, invests. |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(c) | The rate shown is the current yield as of June 30, 2018. |
D. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis. Interest income is determined on the basis of coupon interest accrued using the effective interest method 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.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
E. Allocation of Income and Expenses — Expenses directly attributable to a fund are charged directly to that fund, while the expenses attributable to more than one fund of the Trust 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 are class-specific expenses.
The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class R2 | Class R6 | Total | |||||||||||||||||||
Equity Index Fund | ||||||||||||||||||||||||
Transfer agency fees | $ | 308 | $ | 6 | $ | 18 | n/a | $ | 3 | $ | 335 | |||||||||||||
Market Expansion Enhanced Index Fund | ||||||||||||||||||||||||
Transfer agency fees | 36 | 8 | 15 | $ | 52 | n/a | 111 |
F. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (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.
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Management has reviewed the Funds’ tax positions for all open tax years and has determined that as of June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
G. Distributions to Shareholders — Equity Index Fund generally declares and pays distributions from net investment income quarterly. Market Expansion Enhanced Index Fund generally declares and pays distributions from net investment income annually. 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.
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) | ||||||||||
Equity Index Fund | $ | — | $ | (532 | ) | $ | 532 | |||||
Market Expansion Enhanced Index Fund | — | (106 | ) | 106 |
The reclassifications for the Funds relate primarily to non-taxable dividends.
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to an Investment Advisory Agreement, the Adviser supervises the investments of each Fund and for such services is paid a fee. The fee is accrued daily and paid monthly at an annual rate of 0.04% of the Equity Index Fund’s average daily net assets and 0.25% of the Market Expansion Enhanced Index Fund’s average daily net assets.
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
B. Administration Fee — Pursuant to an Administration Agreement, 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 June 30, 2018, 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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trust’s principal 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 1940 Act. The Class I and Class R6 Shares do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class R2 | ||||||||
Equity Index Fund | 0.25% | 0.75 | % | n/a | ||||||
Market Expansion Enhanced Index Fund | 0.25 | 0.75 | 0.50 | % |
In addition, JPMDS 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 June 30, 2018, JPMDS retained the following amounts (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Equity Index Fund | $19 | $ | — | (a) | ||||
Market Expansion Enhanced Index Fund | 28 | — | (a) |
(a) | Amount rounds to less than one thousand. |
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 37 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
D. Service Fees — The Trust, on behalf of the Funds, has entered into Shareholder Servicing Agreements with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service fee, that is accrued daily and paid monthly equal to an annual rate of 0.25% of the average daily net assets of each share class.
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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 in Interest income from affiliates on the Statement of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately 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 JPMDS 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 I | Class R2 | Class R6 | ||||||||||||||||
Equity Index Fund | 0.45 | % | 1.20 | % | 0.20 | % | n/a | 0.045 | % | |||||||||||
Market Expansion Enhanced Index Fund | 0.60 | 1.10 | 0.35 | 0.83 | % | n/a |
The expense limitation agreements were in effect for the year ended June 30, 2018 and are in place until at least October 31, 2018 for Equity Index Fund and Market Expansion Enhanced Index Fund.
For the year ended June 30, 2018, 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 reimbursed expenses in future years.
Contractual Waivers | ||||||||||||||||||||
Investment Advisory Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Equity Index Fund | $ | 1,045 | $ | 1,498 | $ | 1,550 | $ | 4,093 | $ | — | (a) | |||||||||
Market Expansion Enhanced Index Fund | 1,896 | 852 | 85 | 2,833 | 9 |
(a) | Amount rounds to less than one thousand. |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 respective Fund’s investment in such affiliated money market fund.
The amount of waivers resulting from investments in these money market funds for the year ended June 30, 2018 was as follows (amounts in thousands):
Equity Index Fund | $ | 65 | ||
Market Expansion Enhanced Index Fund | 50 |
G. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. 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 Trust 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.
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The Funds may use related party broker-dealers. For the year ended June 30, 2018, the Funds incurred brokerage commissions with broker-dealers affiliated with the Adviser as follows (amounts in thousands):
Equity Index Fund | $ | — | ||
Market Expansion Enhanced Index Fund | — | (a) |
(a) | Amount rounds to less than one thousand. |
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended June 30, 2018, 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) | |||||||
Equity Index Fund | $ | 1,617,401 | $ | 343,816 | ||||
Market Expansion Enhanced Index Fund | 338,117 | 421,881 |
During the year ended June 30, 2018, 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 investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Equity Index Fund | $ | 1,978,793 | $ | 1,399,790 | �� | $ | 13,515 | $ | 1,386,275 | |||||||
Market Expansion Enhanced Index Fund | 757,316 | 340,557 | 28,376 | 312,181 |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals.
The tax character of distributions paid during the fiscal year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Equity Index Fund | $ | 62,098 | $ | 10,060 | $ | 72,158 | ||||||
Market Expansion Enhanced Index Fund | 10,142 | 103,326 | 113,468 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the fiscal year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Equity Index Fund | $ | 30,154 | $ | 143,097 | $ | 173,251 | ||||||
Market Expansion Enhanced Index Fund | 8,026 | 88,192 | 96,218 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
As of June 30, 2018, 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) | ||||||||||
Equity Index Fund | $ | 2,454 | $ | 12,436 | $ | 1,386,275 | ||||||
Market Expansion Enhanced Index Fund | 13,192 | 74,972 | 312,181 |
The cumulative timing differences primarily consist of wash sale loss deferrals.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
As of June 30, 2018, the Funds did not have any net capital loss carryforwards.
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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 Trust 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 5, 2018.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility at June 30, 2018. Average borrowings from the Facility during the year ended June 30, 2018, were as follows (amounts in thousands, except number of days outstanding):
Average Borrowings | Average Interest Rate Paid | Number of Days Outstanding | Interest Paid | |||||||||||||
Equity Index Fund | $ | 2,961 | 1.84 | % | 2 | $ | — | (a) |
(a) | Amount rounds to less than one thousand. |
The Trust, along with certain other trusts (“Borrowers”), has 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 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.
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. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
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.
As of June 30, 2018, the Equity Index Fund had four affiliated omnibus accounts and Market Expansion Enhanced Index Fund had four non-affiliated omnibus accounts, which in the aggregate owned 12.1% and 10.2% of each Fund’s outstanding shares, respectively.
As of June 30, 2018, J.P. Morgan Investor Funds and JPMorgan SmartRetirement Blend Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of the Funds as follows:
JPMorgan Investor Funds | JPMorgan SmartRetirement Blend Funds | |||||||
Equity Index Fund | — | 45.4 | % | |||||
Market Expansion Enhanced Index Fund | 44.7 | % | — |
Significant shareholder transactions by these shareholders may impact each Fund’s performance.
Because the Funds may invest a portion of their assets in REITs, the Funds may be subject to certain risks similar to those associated with direct investments in real estate. REITs may be affected by changes in the value of their underlying properties and by defaults by tenants. REITs depend generally on their ability to generate cash flow to make distributions to shareholders, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time.
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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. 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.
8. Subscription in-kind
On September 7, 2017, certain shareholders purchased Class R6 Shares of Equity Index Fund. The portfolio securities were received primarily by means of a subscription in-kind in exchange for shares of the Fund. Portfolio securities were transferred as detailed below (amounts in thousands):
Value | Type | |||||||
$ | 67,453 | Subscription in-kind |
9. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of JPMorgan Trust II and Shareholders of JPMorgan Equity Index Fund and JPMorgan Market Expansion Enhanced Index Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Equity Index Fund and JPMorgan Market Expansion Enhanced Index Fund (two of the funds constituting JPMorgan Trust II, hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993
42 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees | ||||||
John F. Finn (1947); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1998. | Chairman (1985-present), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trust since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
Dr. Matthew Goldstein (1941); Chairman since 2013; Trustee of Trust 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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trust since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | None | |||
Frankie D. Hughes (1952); Trustee of Trust 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). | 135 | None | |||
Raymond Kanner** (1953); Trustee of Trust since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present). |
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 43 |
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TRUSTEES
(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Peter C. Marshall (1942); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | None | |||
Mary E. Martinez (1960); Trustee of Trust 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). | 135 | None | |||
Marilyn McCoy*** (1948); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1999. | Vice President of Administration and Planning, Northwestern University (1985-present). | 135 | None | |||
Mitchell M. Merin (1953); Trustee of Trust since 2013. | Retired; President and Chief Operating Officer, Morgan Stanley Investment Management, Member Morgan Stanley & Co. Management Committee (registered investment adviser) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
Dr. Robert A. Oden, Jr. (1946); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
Marian U. Pardo**** (1946); Trustee of Trust since 2013. | Managing Director and Founder, Virtual Capital Management LLC (Investment Consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
James J. Schonbachler (1943); Trustee of Trust since 2005; Trustee of heritage J.P. Morgan Funds since 2001. | Retired; Managing Director of Bankers Trust Company (financial services) (1968-1998). | 135 | None |
(1) | The Trustees serve for an indefinite term, subject to the Trust’s 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 eleven registered investment companies (135 funds). |
44 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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.
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 45 |
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(Unaudited)
Name (Year of Birth), Positions Held with the Trust (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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), Secretary (2018) | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
46 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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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 (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, January 1, 2018, and continued to hold your shares at the end of the reporting period, June 30, 2018.
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 January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Equity Index Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,024.40 | $ | 2.26 | 0.45 | % | ||||||||
Hypothetical | 1,000.00 | 1,022.56 | 2.26 | 0.45 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,021.20 | 5.26 | 1.05 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.59 | 5.26 | 1.05 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,025.40 | 1.00 | 0.20 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.80 | 1.00 | 0.20 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,026.20 | 0.20 | 0.04 | ||||||||||||
Hypothetical | 1,000.00 | 1,024.60 | 0.20 | 0.04 | ||||||||||||
JPMorgan Market Expansion Enhanced Index Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,037.10 | 3.03 | 0.60 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.82 | 3.01 | 0.60 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,034.70 | 5.55 | 1.10 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.34 | 5.51 | 1.10 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,039.20 | 1.77 | 0.35 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.06 | 1.76 | 0.35 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,035.80 | 4.19 | 0.83 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.68 | 4.16 | 0.83 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
JUNE 30, 2018 | J.P. MORGAN EQUITY FUNDS | 47 |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deduction | ||||
JPMorgan Equity Index Fund | 100.00 | % | ||
JPMorgan Market Expansion Enhanced Index Fund | 72.04 |
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 June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Equity Index Fund | $ | 10,060 | ||
JPMorgan Market Expansion Enhanced Index Fund | 103,326 |
Qualified Dividend Income (QDI)
The Funds listed below had the following amount, or maximum allowable amount, of ordinary income distributions treated as qualified dividends for the fiscal year ended June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Equity Index Fund | $ | 50,181 | ||
JPMorgan Market Expansion Enhanced Index Fund | 10,142 |
48 | J.P. MORGAN EQUITY FUNDS | JUNE 30, 2018 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-INDEX-618 |
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Annual Report
J.P. Morgan Investor Funds
June 30, 2018
JPMorgan Investor Balanced Fund
JPMorgan Investor Conservative Growth Fund
JPMorgan Investor Growth Fund
JPMorgan Investor Growth & Income Fund
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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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
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“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 1 |
Table of Contents
J.P. Morgan Investor Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Fund | Fund Return (With sales charge)* | Fund Return (Without sales charge)* | Bloomberg Barclays U.S. Intermediate Aggregate Index Return (Broad-Based Fixed Income Benchmark) | Russell 3000 Index Return (Broad-Based Equity Benchmark) | Composite Benchmark Return | Fund Net Assets as of June 30, 2018 (in thousands) | ||||||||||||||||||
JPMorgan Investor Balanced Fund Class A | 1.54% | 6.30% | (0.32)% | 14.78% | 7.08 | %** | $ | 4,784,596 | ||||||||||||||||
JPMorgan Investor Conservative Growth Fund Class A | (0.88)% | 3.76% | (0.32)% | 14.78% | 4.08 | %*** | $ | 3,499,722 | ||||||||||||||||
JPMorgan Investor Growth Fund Class A | 6.03% | 11.02% | (0.32)% | 14.78% | 13.21 | %**** | $ | 2,701,836 | ||||||||||||||||
JPMorgan Investor Growth & Income Fund Class A | 3.77% | 8.67% | (0.32)% | 14.78% | 10.12 | %***** | $ | 2,889,713 |
Portfolio Composition by Asset Class******
Investor Balanced Fund | ||||
Fixed Income | 45.8 | % | ||
U.S. Equity | 35.0 | |||
International Equity | 15.1 | |||
Alternative Assets | 3.0 | |||
Short-Term Investments | 1.1 | |||
Investor Conservative Growth Fund | ||||
Fixed Income | 65.3 | % | ||
U.S. Equity | 20.8 | |||
International Equity | 9.4 | |||
Alternative Assets | 3.5 | |||
Short-Term Investments | 1.0 | |||
Investor Growth Fund | ||||
U.S. Equity | 61.7 | % | ||
International Equity | 25.0 | |||
Fixed Income | 10.6 | |||
Alternative Assets | 1.5 | |||
Short-Term Investments | 1.2 | |||
Investor Growth & Income Fund | ||||
U.S. Equity | 47.6 | % | ||
Fixed Income | 29.6 | |||
International Equity | 19.0 | |||
Alternative Assets | 2.8 | |||
Short-Term Investments | 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 Composite Benchmark is comprised of unmanaged indices that correspond to the Investor Balanced Fund’s model allocation and consists of the Bloomberg Barclays U.S. Intermediate Aggregate Index (50%) and the Russell 3000 Index (50%). |
*** | The Composite Benchmark is comprised of unmanaged indices that correspond to the Investor Conservative Growth Fund’s model allocation and consists of the Bloomberg Barclays U.S. Intermediate Aggregate Index (70%) and the Russell 3000 Index (30%). |
**** | The Composite Benchmark is comprised of unmanaged indices that correspond to the Investor Growth Fund’s model allocation and consists of the Russell 3000 Index (90%) and the Bloomberg Barclays U.S. Intermediate Aggregate Index (10%). |
***** | The Composite Benchmark is comprised of unmanaged indices that correspond to the Investor Growth & Income Fund’s model allocation and consists of the Russell 3000 Index (70%) and the Bloomberg Barclays U.S. Intermediate Aggregate Index (30%). |
****** | Percentages indicated are based on total investments as of June 30, 2018. The Funds’ portfolio composition is subject to change. |
2 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
J.P. Morgan Investor Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
INVESTMENT OBJECTIVES*
The JPMorgan Investor Balanced Fund seeks high total return consistent with the preservation of capital by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity and fixed income securities.
The JPMorgan Investor Conservative Growth Fund seeks income and capital appreciation by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in fixed income and equity securities.
The JPMorgan Investor Growth Fund seeks long-term capital appreciation by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity securities.
The JPMorgan Investor Growth & Income Fund seeks long-term capital appreciation and growth of income by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity securities.
HOW DID THE MARKET PERFORM?
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities. Bond prices came under pressure in the second half of the reporting period amid rising U.S. interest rates.
Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from June 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, U.S. equities outperformed other developed market and emerging markets equities. Fixed-income securities experienced positive but lackluster returns. High yield bonds (also known as “junk bonds”) slightly outperformed both investment grade corporate bonds and U.S. Treasury bonds.
WHAT WERE THE MAIN DRIVERS OF THE FUNDS’ PERFORMANCE?
In accordance with their model allocations, each of the JPMorgan Investor Funds (the “Investor Funds”) allocated its assets among
fixed income, equity and alternative investments. For the twelve months ended June 30, 2018, each of the Investor Funds outperformed the Bloomberg Barclays U.S. Intermediate Aggregate Index, the Investor Funds’ broad based fixed income benchmark.
Each of the Investor Funds’ Class A Shares underperformed the Russell 3000 Index, the Investor Funds’ broad based equity benchmark, mainly due to their allocations to core bond securities, which generally underperformed equity securities and were not held in the Russell 3000 Index.
Each Investor Fund’s performance is also compared to composite benchmarks, which comprise different percentages of the Investor Funds’ broad based fixed income and equity benchmarks. These composite benchmarks correspond to each Investor Fund’s target allocation.
All of the Investor Funds underperformed their respective composite benchmarks, mainly due to the Funds’ exposure to international equities and high yield bonds that were not held in the composite benchmarks.
HOW WERE THE FUNDS POSITIONED?
Each Investor Fund invested in underlying JPMorgan Funds (“underlying funds”). The underlying funds invest in fixed income securities, equities and other alternative fixed income and equity strategies, such as below investment-grade, high-yield bonds, commodities, equity long/short and market-neutral strategies. Among equities, the underlying funds in which the Investor Funds invested were allocated among large-cap, mid-cap, small-cap, and international stocks. The Investor Funds’ portfolio managers made investments for each Investor Fund based on an evaluation of three components: underlying fund selection, tactical asset allocation and strategic asset allocation. The portfolio managers determined the strategic weight for each asset class in the Investor Funds by making investments that they believed would perform well over the long term and maintaining a level of volatility similar to that of each Investor Fund’s composite benchmark.
During the reporting period, the Investor Funds’ portfolio managers — through their investments in underlying funds — decreased their allocation to high yield debt and continued to reduce their allocation to U.S. equity, particularly large-cap stocks, amid rising equity prices. The managers maintained their exposure to international equities in spite of headwinds created by the strengthening U.S. dollar during the reporting period.
* | The adviser seeks to achieve each Fund’s objective. There can be no guarantee it will be achieved. |
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 3 |
Table of Contents
JPMorgan Investor Balanced Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||
CLASS A SHARES | December 10, 1996 | |||||||||||
With Sales Charge* | 1.54% | 5.69 | % | 5.71 | % | |||||||
Without Sales Charge | 6.30 | 6.67 | 6.19 | |||||||||
CLASS C SHARES | July 1, 1997 | |||||||||||
With CDSC** | 4.71 | 6.09 | 5.62 | |||||||||
Without CDSC | 5.71 | 6.09 | 5.62 | |||||||||
CLASS I SHARES | December 10, 1996 | 6.62 | 6.96 | 6.46 | ||||||||
CLASS R6 SHARES | July 31, 2017 | 6.71 | 6.96 | 6.47 |
* | Sales Charge for Class A Shares is 4.50%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Investor Balanced Fund, the Bloomberg Barclays U.S. Intermediate Aggregate Index, the Russell 3000 Index, the Investor Balanced Composite Benchmark and the Lipper Mixed-Asset Target Allocation Moderate Funds Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the broad-based securities indices and the Investor Balanced Composite Benchmark 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 Mixed-Asset Target Allocation Moderate Funds Index,
which is not a broad-based securities 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 Bloomberg Barclays U.S. Intermediate Aggregate Index is an unmanaged index comprised of U.S. Government, mortgage, corporate, and asset-backed securities with maturities of one to 10 years. The Russell 3000 Index is an unmanaged index which measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Investor Balanced Composite Benchmark is comprised of unmanaged indices that correspond to the Fund’s model allocation and consists of the Bloomberg Barclays U.S. Intermediate Aggregate Index (50%) and the Russell 3000 Index (50%). The Lipper Mixed-Asset Target Allocation Moderate Funds Index consists of funds that by portfolio practice maintain a mix of between 40% to 60% equity securities, with the remainder invested in bonds, cash and cash equivalents. Investors cannot invest directly in an index.
Class A Shares have a $500 minimum initial investment and carry a 4.50% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
4 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Conservative Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | December 10, 1996 | |||||||||||||
With Sales Charge* | (0.88 | )% | 3.70 | % | 4.54 | % | ||||||||
Without Sales Charge | 3.76 | 4.67 | 5.03 | |||||||||||
CLASS C SHARES | July 1, 1997 | |||||||||||||
With CDSC** | 2.09 | 4.09 | 4.46 | |||||||||||
Without CDSC | 3.09 | 4.09 | 4.46 | |||||||||||
CLASS I SHARES | December 10, 1996 | 4.08 | 4.94 | 5.30 | ||||||||||
CLASS R6 SHARES | July 31, 2017 | 4.13 | 4.95 | 5.30 |
* | Sales Charge for Class A Shares is 4.50%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Investor Conservative Growth Fund, the Bloomberg Barclays U.S. Intermediate Aggregate Index, the Russell 3000 Index, the Investor Conservative Growth Composite Benchmark, and the Lipper Mixed-Asset Target Allocation Conservative Funds Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the broad-based securities indices and the Investor Conservative Growth Composite Benchmark 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 Mixed-Asset Target Allocation Conservative Funds Index, which is not a broad-based securities 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
Bloomberg Barclays U.S. Intermediate Aggregate Index is an unmanaged index comprised of U.S. Government, mortgage, corporate, and asset-backed securities with maturities of one to 10 years. The Russell 3000 Index is an unmanaged index which measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Investor Conservative Growth Composite Benchmark is comprised of unmanaged indices that correspond to the Fund’s model allocation and consists of the Bloomberg Barclays U.S. Intermediate Aggregate Index (70%) and the Russell 3000 Index (30%). The Lipper Mixed-Asset Target Allocation Conservative Funds Index consists of funds that by portfolio practice maintain a mix of between 20% to 40% equity securities, with the remainder invested in bonds, cash and cash equivalents. Investors cannot invest directly in an index.
Class A Shares have a $500 minimum initial investment and carry a 4.50% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 5 |
Table of Contents
JPMorgan Investor Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | December 10, 1996 | |||||||||||||
With Sales Charge* | 6.03 | % | 9.41 | % | 7.46 | % | ||||||||
Without Sales Charge | 11.02 | 10.43 | 7.96 | |||||||||||
CLASS C SHARES | July 1, 1997 | |||||||||||||
With CDSC** | 9.41 | 9.83 | 7.36 | |||||||||||
Without CDSC | 10.41 | 9.83 | 7.36 | |||||||||||
CLASS I SHARES | December 10, 1996 | 11.33 | 10.72 | 8.23 | ||||||||||
CLASS R6 SHARES | July 31, 2017 | 11.42 | 10.72 | 8.23 |
* | Sales Charge for Class A Shares is 4.50%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Investor Growth Fund, the Russell 3000 Index, the Bloomberg Barclays U.S. Intermediate Aggregate Index, the Investor Growth Composite Benchmark and the Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the broad-based securities indices and the Investor Growth Composite Benchmark 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 Mixed-Asset Target Allocation Aggressive Growth Funds Index, which is not a broad-based securities 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 Russell
3000 Index is an unmanaged index which measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Bloomberg Barclays U.S. Intermediate Aggregate Index is an unmanaged index comprised of U.S. Government, mortgage, corporate, and asset-backed securities with maturities of one to 10 years. The Investor Growth Composite Benchmark is comprised of unmanaged indices that correspond to the Fund’s model allocation and consists of the Russell 3000 Index (90%) and the Bloomberg Barclays U.S. Intermediate Aggregate Index (10%). The Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Index consists of funds that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Investors cannot invest directly in an index.
Class A Shares have a $500 minimum initial investment and carry a 4.50% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
6 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Growth & Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | December 10, 1996 | |||||||||||||
With Sales Charge* | 3.77 | % | 7.29 | % | 6.49 | % | ||||||||
Without Sales Charge | 8.67 | 8.29 | 6.99 | |||||||||||
CLASS C SHARES | July 1, 1997 | |||||||||||||
With CDSC** | 7.10 | 7.71 | 6.41 | |||||||||||
Without CDSC | 8.10 | 7.71 | 6.41 | |||||||||||
CLASS I SHARES | December 10, 1996 | 9.02 | 8.58 | 7.26 | ||||||||||
CLASS R6 SHARES | July 31, 2017 | 9.11 | 8.59 | 7.26 |
* | Sales Charge for Class A Shares is 4.50%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (6/30/08 TO 6/30/18)
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 Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan Investor Growth & Income Fund, the Russell 3000 Index, the Bloomberg Barclays U.S. Intermediate Aggregate Index, the Investor Growth & Income Composite Benchmark and the Lipper Mixed-Asset Target Allocation Growth Funds Index from June 30, 2008 to June 30, 2018. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and includes a sales charge. The performance of the broad-based securities indices and the Investor Growth & Income Composite Benchmark 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 Mixed-Asset Target Allocation Growth Funds Index, which is not a broad-based securities 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 Russell 3000 Index is an
unmanaged index which measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Bloomberg Barclays U.S. Intermediate Aggregate Index is an unmanaged index comprised of U.S. Government, mortgage, corporate, and asset-backed securities with maturities of one to 10 years. The Investor Growth & Income Composite Benchmark is comprised of unmanaged indices that correspond to the Fund’s model allocation and consists of the Russell 3000 Index (70%) and the Bloomberg Barclays U.S. Intermediate Aggregate Index (30%). The Lipper Mixed-Asset Target Allocation Growth Funds Index consists of funds that by portfolio practice maintain a mix of between 60% to 80% equity securities, with the remainder invested in bonds, cash and cash equivalents. Investors cannot invest directly in an index.
Class A Shares have a $500 minimum initial investment and carry a 4.50% sales charge.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 7 |
Table of Contents
JPMorgan Investor Balanced Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Investment Companies — 98.9% |
| |||||||
Alternative Assets — 3.0% | ||||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 3,212 | 48,535 | ||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 6,469 | 93,933 | ||||||
|
| |||||||
Total Alternative Assets | 142,468 | |||||||
|
| |||||||
Fixed Income — 45.8% | ||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 87,126 | 981,915 | ||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 59,107 | 475,808 | ||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 6,194 | 48,007 | ||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 17,115 | 159,680 | ||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 15,967 | 115,120 | ||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 7,108 | 71,937 | ||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 19,912 | 198,725 | ||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | 8,349 | 96,681 | ||||||
JPMorgan Unconstrained Debt Fund Class R6 Shares (a) | 4,446 | 43,571 | ||||||
|
| |||||||
Total Fixed Income | 2,191,444 | |||||||
|
| |||||||
International Equity — 15.1% | ||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 5,137 | 69,037 | ||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 2,492 | 69,191 | ||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | 7,080 | 158,803 | ||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 4,098 | 71,380 | ||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | 13,940 | 255,800 | ||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 3,810 | 100,554 | ||||||
|
| |||||||
Total International Equity | 724,765 | |||||||
|
| |||||||
U.S. Equity — 35.0% | ||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 5,573 | 95,291 | ||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 8,065 | 334,210 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
U.S. Equity — continued | ||||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 2,814 | 166,954 | ||||||
JPMorgan Intrepid Mid Cap Fund Class R6 Shares (a) | 1,777 | 42,708 | ||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 3,754 | 164,998 | ||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 8,091 | 120,562 | ||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 14,165 | 168,844 | ||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 1,138 | 36,773 | ||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 27,227 | 450,876 | ||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 2,584 | 91,976 | ||||||
|
| |||||||
Total U.S. Equity | 1,673,192 | |||||||
|
| |||||||
Total Investment Companies |
| 4,731,869 | ||||||
|
| |||||||
Short-Term Investments — 1.1% | ||||||||
Investment Companies — 1.1% | ||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (b) | 51,163 | 51,163 | ||||||
|
| |||||||
Total Investments — 100.0% | 4,783,032 | |||||||
Other Assets Less Liabilities — 0.0% (c) | 1,564 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 4,784,596 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown was the current yield as of June 30, 2018. | |
(c) | Amount rounds to less than 0.05% of net assets. | |
* | Non-income producing security. |
Detailed information about investment portfolios of the underlying funds can be found in shareholder reports filed with the Securities and Exchange Commission (SEC) by each such underlying fund semi-annually on Form N-CSR and in certified portfolio holdings filed quarterly on Form N-Q, and are available for download from both the SEC’s as well as each respective underlying fund’s website. Detailed information about underlying J.P. Morgan Funds can also be found at www.jpmorganfunds.com or by calling 1-800-480-4111.
SEE NOTES TO FINANCIAL STATEMENTS.
8 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Conservative Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Investment Companies — 98.9% | ||||||||
Alternative Assets — 3.5% | ||||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 2,365 | 35,731 | ||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 5,971 | 86,705 | ||||||
|
| |||||||
Total Alternative Assets | 122,436 | |||||||
|
| |||||||
Fixed Income — 65.2% | ||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 91,919 | 1,035,932 | ||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 54,843 | 441,486 | ||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 4,461 | 34,571 | ||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 15,073 | 140,635 | ||||||
JPMorgan Government Bond Fund Class R6 Shares (a) | 3,894 | 39,915 | ||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 7,538 | 54,347 | ||||||
JPMorgan Income Fund Class R6 Shares (a) | 7,823 | 72,048 | ||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 6,562 | 66,412 | ||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 29,189 | 291,305 | ||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | 6,023 | 69,746 | ||||||
JPMorgan Unconstrained Debt Fund Class R6 Shares (a) | 3,724 | 36,494 | ||||||
|
| |||||||
Total Fixed Income | 2,282,891 | |||||||
|
| |||||||
International Equity — 9.4% | ||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 2,932 | 39,407 | ||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 1,408 | 39,084 | ||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | 1,995 | 44,743 | ||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 1,982 | 34,535 | ||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | 7,524 | 138,065 | ||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 1,275 | 33,638 | ||||||
|
| |||||||
Total International Equity | 329,472 | |||||||
|
| |||||||
U.S. Equity — 20.8% | ||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 3,594 | 61,452 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
U.S. Equity — continued |
| |||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 4,360 | 180,679 | ||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 1,483 | 87,986 | ||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 977 | 42,926 | ||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 1,522 | 22,685 | ||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 3,659 | 43,619 | ||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 916 | 32,967 | ||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 839 | 27,112 | ||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 10,194 | 168,805 | ||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 1,636 | 58,233 | ||||||
|
| |||||||
Total U.S. Equity | 726,464 | |||||||
|
| |||||||
Total Investment Companies | 3,461,263 | |||||||
|
| |||||||
Short-term Investments — 1.0% | ||||||||
Investment Companies — 1.0% | ||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (b) | 34,913 | 34,913 | ||||||
|
| |||||||
Total Investments — 99.9% | 3,496,176 | |||||||
Other Assets Less Liabilities — 0.1% | 3,546 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 3,499,722 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown was the current yield as of June 30, 2018. | |
* | Non-income producing security. |
Detailed information about investment portfolios of the underlying funds can be found in shareholder reports filed with the Securities and Exchange Commission (SEC) by each such underlying fund semi-annually on Form N-CSR and in certified portfolio holdings filed quarterly on Form N-Q, and are available for download from both the SEC’s as well as each respective underlying fund’s website. Detailed information about underlying J.P. Morgan Funds can also be found at www.jpmorganfunds.com or by calling 1-800-480-4111.
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE��30, 2018 | J.P. MORGAN INVESTOR FUNDS | 9 |
Table of Contents
JPMorgan Investor Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Investment Companies — 98.9% | ||||||||
Alternative Assets — 1.6% | ||||||||
JPMorgan Commodities Strategy Fund Class R6 Shares (a) | 1,133 | 10,326 | ||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 2,166 | 31,444 | ||||||
|
| |||||||
Total Alternative Assets | 41,770 | |||||||
|
| |||||||
Fixed Income — 10.6% | ||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 16,798 | 189,316 | ||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 3,916 | 31,526 | ||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 1,630 | 12,631 | ||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 2,879 | 26,864 | ||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 3,672 | 26,479 | ||||||
|
| |||||||
Total Fixed Income | 286,816 | |||||||
|
| |||||||
International Equity — 25.0% | ||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 4,121 | 55,382 | ||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 2,017 | 55,999 | ||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | 3,519 | 78,941 | ||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 7,058 | 122,949 | ||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | 10,461 | 191,968 | ||||||
JPMorgan International Unconstrained Equity Fund Class R6 Shares (a) | 3,962 | 81,140 | ||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 3,381 | 89,222 | ||||||
|
| |||||||
Total International Equity | 675,601 | |||||||
|
| |||||||
U.S. Equity — 61.7% | ||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 2,884 | 49,325 | ||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 7,535 | 312,260 | ||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 2,285 | 135,563 | ||||||
JPMorgan Intrepid Mid Cap Fund Class R6 Shares (a) | 565 | 13,575 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
U.S. Equity — continued |
| |||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 5,339 | 234,666 | ||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 17,640 | 262,832 | ||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 13,052 | 155,581 | ||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 1,009 | 36,325 | ||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 1,200 | 38,772 | ||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 22,790 | 377,397 | ||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 1,431 | 50,934 | ||||||
|
| |||||||
Total U.S. Equity | 1,667,230 | |||||||
|
| |||||||
Total Investment Companies | 2,671,417 | |||||||
|
| |||||||
Short-term Investments — 1.2% | ||||||||
Investment Companies — 1.2% | ||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (b) | 33,130 | 33,130 | ||||||
|
| |||||||
Total Investments — 100.1% | 2,704,547 | |||||||
Liabilities in Excess of Other Assets — (0.1%) | (2,711 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 2,701,836 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown was the current yield as of June 30, 2018. | |
* | Non-income producing security. |
Detailed information about investment portfolios of the underlying funds can be found in shareholder reports filed with the Securities and Exchange Commission (SEC) by each such underlying fund semi-annually on Form N-CSR and in certified portfolio holdings filed quarterly on Form N-Q, and are available for download from both the SEC’s as well as each respective underlying fund’s website. Detailed information about underlying J.P. Morgan Funds can also be found at www.jpmorganfunds.com or by calling 1-800-480-4111.
SEE NOTES TO FINANCIAL STATEMENTS.
10 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Growth & Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Investment Companies — 98.9% | ||||||||
Alternative Assets — 2.8% | ||||||||
JPMorgan Commodities Strategy Fund Class R6 Shares (a) | 957 | 8,720 | ||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 1,511 | 22,833 | ||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 3,403 | 49,414 | ||||||
|
| |||||||
Total Alternative Assets | 80,967 | |||||||
|
| |||||||
Fixed Income — 29.6% | ||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 36,811 | 414,864 | ||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 22,429 | 180,555 | ||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 1,896 | 14,695 | ||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 8,812 | 82,216 | ||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 7,807 | 56,289 | ||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 3,925 | 39,717 | ||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 3,721 | 37,139 | ||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | 2,487 | 28,798 | ||||||
|
| |||||||
Total Fixed Income | 854,273 | |||||||
|
| |||||||
International Equity — 19.0% | ||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 3,624 | 48,708 | ||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 1,772 | 49,185 | ||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | 4,929 | 110,561 | ||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 4,190 | 72,997 | ||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | 8,349 | 153,200 | ||||||
JPMorgan International Unconstrained Equity Fund Class R6 Shares (a) | 1,822 | 37,306 | ||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 2,902 | 76,593 | ||||||
|
| |||||||
Total International Equity | 548,550 | |||||||
|
| |||||||
U.S. Equity — 47.5% | ||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 3,213 | 54,937 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
U.S. Equity — continued | ||||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 7,363 | 305,105 | ||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 1,549 | 91,877 | ||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 4,358 | 191,527 | ||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 11,255 | 167,698 | ||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 9,834 | 117,222 | ||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 916 | 32,984 | ||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 1,225 | 39,553 | ||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 19,224 | 318,346 | ||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 1,518 | 54,048 | ||||||
|
| |||||||
Total U.S. Equity | 1,373,297 | |||||||
|
| |||||||
Total Investment Companies | 2,857,087 | |||||||
|
| |||||||
Short-term Investments — 1.0% | ||||||||
Investment Companies — 1.0% | ||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (b) | 28,619 | 28,619 | ||||||
|
| |||||||
Total Investments — 99.9% | 2,885,706 | |||||||
Other Assets Less Liabilities — 0.1% | 4,007 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 2,889,713 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown was the current yield as of June 30, 2018. | |
* | Non-income producing security. |
Detailed information about investment portfolios of the underlying funds can be found in shareholder reports filed with the Securities and Exchange Commission (SEC) by each such underlying fund semi-annually on Form N-CSR and in certified portfolio holdings filed quarterly on Form N-Q, and are available for download from both the SEC’s as well as each respective underlying fund’s website. Detailed information about underlying J.P. Morgan Funds can also be found at www.jpmorganfunds.com or by calling 1-800-480-4111.
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 11 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in affiliates, at value | $ | 4,783,032 | $ | 3,496,176 | $ | 2,704,547 | $ | 2,885,706 | ||||||||
Cash | 78 | — | 46 | 47 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 16,751 | 15,767 | — | 7,512 | ||||||||||||
Fund shares sold | 1,477 | 1,453 | 556 | 765 | ||||||||||||
Dividends from affiliates | 3 | 322 | 2 | 1 | ||||||||||||
Due from adviser | — | — | 5 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 4,801,341 | 3,513,718 | �� | 2,705,156 | 2,894,031 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | — | 265 | — | — | ||||||||||||
Distributions | 63 | 21 | 16 | 46 | ||||||||||||
Investment securities purchased | 9,572 | 7,008 | — | — | ||||||||||||
Fund shares redeemed | 4,462 | 4,426 | 1,855 | 2,689 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 192 | 140 | — | 116 | ||||||||||||
Administration fees | 230 | 176 | 45 | 151 | ||||||||||||
Distribution fees | 1,210 | 1,191 | 559 | 661 | ||||||||||||
Service fees | 536 | 455 | 277 | 204 | ||||||||||||
Custodian and accounting fees | 4 | 4 | 4 | 4 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | — | (a) | — | — | |||||||||||
Transfer agency fees | 265 | 135 | 475 | 342 | ||||||||||||
Other | 211 | 175 | 89 | 105 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 16,745 | 13,996 | 3,320 | 4,318 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 4,784,596 | $ | 3,499,722 | $ | 2,701,836 | $ | 2,889,713 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
12 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||
NET ASSETS: | ||||||||||||||||
Paid-in-Capital | $ | 3,810,980 | $ | 3,042,036 | $ | 1,845,656 | $ | 2,110,927 | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 237 | 218 | 54 | 86 | ||||||||||||
Accumulated net realized gains (losses) | 93,320 | 63,115 | 53,049 | 32,468 | ||||||||||||
Net unrealized appreciation (depreciation) | 880,059 | 394,353 | 803,077 | 746,232 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 4,784,596 | $ | 3,499,722 | $ | 2,701,836 | $ | 2,889,713 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 3,436,111 | $ | 2,173,957 | $ | 2,048,525 | $ | 2,386,397 | ||||||||
Class C | 791,718 | 1,188,675 | 205,740 | 260,085 | ||||||||||||
Class I | 471,153 | 136,915 | 439,498 | 242,612 | ||||||||||||
Class R6 | 85,614 | 175 | 8,073 | 619 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,784,596 | $ | 3,499,722 | $ | 2,701,836 | $ | 2,889,713 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) | ||||||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 224,581 | 172,363 | 98,483 | 137,034 | ||||||||||||
Class C | 52,562 | 94,685 | 10,589 | 15,374 | ||||||||||||
Class I | 30,741 | 10,793 | 20,693 | 14,159 | ||||||||||||
Class R6 | 5,589 | 14 | 380 | 36 | ||||||||||||
Net Asset Value (a): | ||||||||||||||||
Class A — Redemption price per share | $ | 15.30 | $ | 12.61 | $ | 20.80 | $ | 17.41 | ||||||||
Class C — Offering price per share (b) | 15.06 | 12.55 | 19.43 | 16.92 | ||||||||||||
Class I — Offering and redemption price per share | 15.33 | 12.69 | 21.24 | 17.14 | ||||||||||||
Class R6 — Offering and redemption price per share | 15.32 | 12.68 | 21.23 | 17.13 | ||||||||||||
Class A maximum sales charge | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | ||||||||
Class A maximum public offering price per share | $ | 16.02 | $ | 13.20 | $ | 21.78 | $ | 18.23 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in affiliates | 3,902,973 | 3,101,823 | 1,901,470 | 2,139,474 |
(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.
JUNE 30, 2018 | JPMORGAN INSURANCE TRUST | 13 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from affiliates | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||
Dividend income from affiliates | 101,097 | 86,587 | 37,390 | 52,322 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 101,098 | 86,588 | 37,391 | 52,323 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 2,473 | 1,843 | 1,351 | 1,491 | ||||||||||||
Administration fees | 2,847 | 2,216 | 1,727 | 1,865 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 8,859 | 5,543 | 5,161 | 6,095 | ||||||||||||
Class C | 6,635 | 9,979 | 1,711 | 2,250 | ||||||||||||
Class T (a) | — | (b) | — | (b) | — | (b) | — | (b) | ||||||||
Service fees: | ||||||||||||||||
Class A | 8,859 | 5,543 | 5,161 | 6,095 | ||||||||||||
Class C | 2,211 | 3,326 | 570 | 750 | ||||||||||||
Class I | 1,189 | 344 | 1,006 | 609 | ||||||||||||
Class T (a) | — | (b) | — | (b) | — | (b) | — | (b) | ||||||||
Custodian and accounting fees | 22 | 22 | 22 | 21 | ||||||||||||
Professional fees | 102 | 86 | 71 | 77 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 42 | 37 | 34 | 35 | ||||||||||||
Printing and mailing costs | 281 | 208 | 218 | 197 | ||||||||||||
Registration and filing fees | 102 | 97 | 164 | 120 | ||||||||||||
Transfer agency fees (See Note 2.D.) | 550 | 299 | 909 | 671 | ||||||||||||
Other | 91 | 70 | 54 | 58 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 34,263 | 29,613 | 18,159 | 20,334 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (4,904 | ) | (3,147 | ) | (3,867 | ) | (3,756 | ) | ||||||||
Less expense reimbursements | — | (b) | — | (b) | (7 | ) | — | (b) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 29,359 | 26,466 | 14,285 | 16,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 71,739 | 60,122 | 23,106 | �� | 35,745 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on investments in affiliates | 127,340 | 69,443 | 48,795 | 90,932 | ||||||||||||
Distributions of capital gains received from investment company affiliates | 126,064 | 52,204 | 134,010 | 115,297 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation of investments in affiliates | (23,178 | ) | (49,947 | ) | 70,222 | 7,425 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | 230,226 | 71,700 | 253,027 | 213,654 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | 301,965 | $ | 131,822 | $ | 276,133 | $ | 249,399 | ||||||||
|
|
|
|
|
|
|
|
(a) | Class T Shares had no assets from the close of business on June 5, 2018. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
14 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 71,739 | $ | 77,088 | $ | 60,122 | $ | 65,259 | ||||||||
Net realized gain (loss) on investments in affiliates | 127,340 | 118,754 | 69,443 | 76,964 | ||||||||||||
Distributions of capital gains received from investment company affiliates | 126,064 | 64,589 | 52,204 | 24,878 | ||||||||||||
Change in net unrealized appreciation/depreciation of investments in affiliates | (23,178 | ) | 294,383 | (49,947 | ) | 100,710 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 301,965 | 554,814 | 131,822 | 267,811 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (67,929 | ) | (58,955 | ) | (45,491 | ) | (41,832 | ) | ||||||||
From net realized gains | (168,249 | ) | (72,170 | ) | (72,621 | ) | (32,302 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | (11,192 | ) | (11,734 | ) | (18,781 | ) | (20,489 | ) | ||||||||
From net realized gains | (37,530 | ) | (22,004 | ) | (39,359 | ) | (23,339 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (10,115 | ) | (8,127 | ) | (3,123 | ) | (2,798 | ) | ||||||||
From net realized gains | (21,110 | ) | (8,132 | ) | (4,344 | ) | (1,870 | ) | ||||||||
Class R6 (a) | ||||||||||||||||
From net investment income | (1,006 | ) | — | (2 | ) | — | ||||||||||
From net realized gains | (1,508 | ) | — | (1 | ) | — | ||||||||||
Class T (b) (c) | ||||||||||||||||
From net investment income | — | (d) | — | (d) | — | (d) | — | (d) | ||||||||
From net realized gains | (1 | ) | — | (1 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (318,640 | ) | (181,122 | ) | (183,723 | ) | (122,630 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (170,845 | ) | (802,511 | ) | (239,055 | ) | (642,559 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (187,520 | ) | (428,819 | ) | (290,956 | ) | (497,378 | ) | ||||||||
Beginning of period | 4,972,116 | 5,400,935 | 3,790,678 | 4,288,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 4,784,596 | $ | 4,972,116 | $ | 3,499,722 | $ | 3,790,678 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 237 | $ | 338 | $ | 218 | $ | 673 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Commencement of offering of class of shares effective June 6, 2017. |
(c) | Class T Shares had no assets from the close of business on June 5, 2018. |
(d) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 15 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 23,106 | $ | 22,945 | $ | 35,745 | $ | 38,991 | ||||||||
Net realized gain (loss) on investments in affiliates | 48,795 | 86,139 | 90,932 | 79,831 | ||||||||||||
Distributions of capital gains received from investment company affiliates | 134,010 | 65,108 | 115,297 | 59,914 | ||||||||||||
Change in net unrealized appreciation/depreciation of investments in affiliates | 70,222 | 271,856 | 7,425 | 253,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 276,133 | 446,048 | 249,399 | 432,314 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (37,031 | ) | (19,734 | ) | (46,325 | ) | (33,847 | ) | ||||||||
From net realized gains | (136,326 | ) | (84,422 | ) | (150,918 | ) | (72,446 | ) | ||||||||
Class C | ||||||||||||||||
From net investment income | (3,343 | ) | (2,132 | ) | (3,589 | ) | (3,437 | ) | ||||||||
From net realized gains | (14,110 | ) | (12,736 | ) | (16,432 | ) | (12,299 | ) | ||||||||
Class I | ||||||||||||||||
From net investment income | (7,867 | ) | (3,798 | ) | (5,266 | ) | (3,737 | ) | ||||||||
From net realized gains | (24,834 | ) | (12,791 | ) | (14,970 | ) | (6,488 | ) | ||||||||
Class R6 (a) | ||||||||||||||||
From net investment income | (154 | ) | — | (6 | ) | — | ||||||||||
From net realized gains | (451 | ) | — | (10 | ) | — | ||||||||||
Class T (b) (c) | ||||||||||||||||
From net investment income | (1 | ) | — | (d) | — | (d) | — | (d) | ||||||||
From net realized gains | (1 | ) | — | (1 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (224,118 | ) | (135,613 | ) | (237,517 | ) | (132,254 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 91,735 | (199,280 | ) | (94,761 | ) | (469,431 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 143,750 | 111,155 | (82,879 | ) | (169,371 | ) | ||||||||||
Beginning of period | 2,558,086 | 2,446,931 | 2,972,592 | 3,141,963 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 2,701,836 | $ | 2,558,086 | $ | 2,889,713 | $ | 2,972,592 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 54 | $ | 94 | $ | 86 | $ | 148 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Commencement of offering of class of shares effective June 6, 2017. |
(c) | Class T Shares had no assets from the close of business on June 5, 2018. |
(d) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
16 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 460,817 | $ | 264,924 | $ | 442,260 | $ | 183,110 | ||||||||
Distributions reinvested | 235,227 | 130,712 | 117,679 | 73,917 | ||||||||||||
Cost of shares redeemed | (672,859 | ) | (1,064,306 | ) | (429,357 | ) | (667,980 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 23,185 | $ | (668,670 | ) | $ | 130,582 | $ | (410,953 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 138,371 | $ | 160,661 | $ | 171,728 | $ | 224,466 | ||||||||
Distributions reinvested | 48,466 | 33,495 | 57,915 | 43,662 | ||||||||||||
Cost of shares redeemed | (472,053 | ) | (357,777 | ) | (602,825 | ) | (494,659 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (285,216 | ) | $ | (163,621 | ) | $ | (373,182 | ) | $ | (226,531 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 108,433 | $ | 148,958 | $ | 32,920 | $ | 42,413 | ||||||||
Distributions reinvested | 29,635 | 3,446 | 6,927 | 2,200 | ||||||||||||
Cost of shares redeemed | (135,249 | ) | (122,644 | ) | (36,461 | ) | (49,708 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 2,819 | $ | 29,760 | $ | 3,386 | $ | (5,095 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 86,464 | $ | — | $ | 177 | $ | — | ||||||||
Distributions reinvested | 2,513 | — | 2 | — | ||||||||||||
Cost of shares redeemed | (590 | ) | — | — | (b) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 88,387 | $ | — | $ | 179 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class T (c) (d) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 20 | $ | — | $ | 20 | ||||||||
Distributions reinvested | 1 | — | (b) | 1 | — | (b) | ||||||||||
Cost of shares redeemed | (21 | ) | — | (21 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class T capital transactions | $ | (20 | ) | $ | 20 | $ | (20 | ) | $ | 20 | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (170,845 | ) | $ | (802,511 | ) | $ | (239,055 | ) | $ | (642,559 | ) | ||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective June 6, 2017. |
(d) | Class T Shares had no assets from the close of business on June 5, 2018. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 17 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Investor Balanced Fund | JPMorgan Investor Conservative Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 29,180 | 17,833 | 33,945 | 14,566 | ||||||||||||
Reinvested | 15,208 | 8,886 | 9,180 | 5,932 | ||||||||||||
Redeemed | (43,083 | ) | (71,214 | ) | (33,363 | ) | (53,038 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 1,305 | (44,495 | ) | 9,762 | (32,540 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 8,998 | 10,952 | 13,393 | 17,927 | ||||||||||||
Reinvested | 3,183 | 2,317 | 4,539 | 3,527 | ||||||||||||
Redeemed | (30,384 | ) | (24,334 | ) | (46,658 | ) | (39,493 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (18,203 | ) | (11,065 | ) | (28,726 | ) | (18,039 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 6,915 | 9,958 | 2,536 | 3,352 | ||||||||||||
Reinvested | 1,913 | 233 | 538 | 175 | ||||||||||||
Redeemed | (8,609 | ) | (8,157 | ) | (2,821 | ) | (3,922 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 219 | 2,034 | 253 | (395 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Issued | 5,464 | — | 14 | — | ||||||||||||
Reinvested | 163 | — | — | (b) | — | |||||||||||
Redeemed | (38 | ) | — | — | (b) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 5,589 | — | 14 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class T (c) (d) | ||||||||||||||||
Issued | — | 1 | — | 2 | ||||||||||||
Reinvested | — | (b) | — | (b) | — | (b) | — | (b) | ||||||||
Redeemed | (1 | ) | — | (2 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class T Shares | (1 | ) | 1 | (2 | ) | 2 | ||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective June 6, 2017. |
(d) | Class T Shares had no assets from the close of business on June 5, 2018. |
SEE NOTES TO FINANCIAL STATEMENTS.
18 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 193,204 | $ | 122,390 | $ | 225,692 | $ | 135,891 | ||||||||
Distributions reinvested | 172,014 | 103,579 | 195,946 | 105,860 | ||||||||||||
Cost of shares redeemed | (293,109 | ) | (421,646 | ) | (389,174 | ) | (620,548 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 72,109 | $ | (195,677 | ) | $ | 32,464 | $ | (378,797 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 45,931 | $ | 44,771 | $ | 47,513 | $ | 58,135 | ||||||||
Distributions reinvested | 17,270 | 14,448 | 19,822 | 15,258 | ||||||||||||
Cost of shares redeemed | (138,492 | ) | (87,416 | ) | (198,558 | ) | (141,358 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (75,291 | ) | $ | (28,197 | ) | $ | (131,223 | ) | $ | (67,965 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 134,558 | $ | 105,940 | $ | 40,223 | $ | 61,573 | ||||||||
Distributions reinvested | 31,813 | 4,159 | 19,287 | 2,743 | ||||||||||||
Cost of shares redeemed | (79,570 | ) | (85,525 | ) | (56,132 | ) | (87,005 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 86,801 | $ | 24,574 | $ | 3,378 | $ | (22,689 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 8,361 | $ | — | $ | 662 | $ | — | ||||||||
Distributions reinvested | 605 | — | 16 | — | ||||||||||||
Cost of shares redeemed | (829 | ) | — | (37 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 8,137 | $ | — | $ | 641 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class T (b) (c) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 20 | $ | — | $ | 20 | ||||||||
Distributions reinvested | 2 | — | (d) | 1 | — | (d) | ||||||||||
Cost of shares redeemed | (23 | ) | — | (22 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class T capital transactions | $ | (21 | ) | $ | 20 | $ | (21 | ) | $ | 20 | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 91,735 | $ | (199,280 | ) | $ | (94,761 | ) | $ | (469,431 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Commencement of offering of class of shares effective June 6, 2017. |
(c) | Class T Shares had no assets from the close of business on June 5, 2018. |
(d) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 19 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Investor Growth Fund | JPMorgan Investor Growth & Income Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 9,068 | 6,334 | 12,545 | 8,160 | ||||||||||||
Reinvested | 8,256 | 5,503 | 11,186 | 6,465 | ||||||||||||
Redeemed | (13,900 | ) | (21,701 | ) | (21,923 | ) | (37,043 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 3,424 | (9,864 | ) | 1,808 | (22,418 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 2,319 | 2,452 | 2,749 | 3,584 | ||||||||||||
Reinvested | 886 | 814 | 1,166 | 961 | ||||||||||||
Redeemed | (6,904 | ) | (4,765 | ) | (11,335 | ) | (8,678 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (3,699 | ) | (1,499 | ) | (7,420 | ) | (4,133 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 6,205 | 5,355 | 2,304 | 3,738 | ||||||||||||
Reinvested | 1,496 | 216 | 1,119 | 169 | ||||||||||||
Redeemed | (3,692 | ) | (4,322 | ) | (3,199 | ) | (5,287 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 4,009 | 1,249 | 224 | (1,380 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (a) | ||||||||||||||||
Issued | 390 | — | 37 | — | ||||||||||||
Reinvested | 28 | — | 1 | — | ||||||||||||
Redeemed | (38 | ) | — | (2 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 380 | — | 36 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class T (b) (c) | ||||||||||||||||
Issued | — | 1 | — | 1 | ||||||||||||
Reinvested | — | (d) | — | (d) | — | (d) | — | (d) | ||||||||
Redeemed | (1 | ) | — | (1 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class T Shares | (1 | ) | 1 | (1 | ) | 1 | ||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017. |
(b) | Commencement of offering of class of shares effective June 6, 2017. |
(c) | Class T Shares had no assets from the close of business on June 5, 2018. |
(d) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 21 |
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 | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Investor Balanced Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 15.37 | $ | 0.24 | (g) | $ | 0.72 | $ | 0.96 | $ | (0.29 | ) | $ | (0.74 | ) | $ | (1.03 | ) | ||||||||||
Year Ended June 30, 2017 | 14.33 | 0.23 | (g) | 1.33 | 1.56 | (0.24 | ) | (0.28 | ) | (0.52 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 15.12 | 0.22 | (g) | (0.29 | ) | (0.07 | ) | (0.25 | ) | (0.47 | ) | (0.72 | ) | |||||||||||||||
Year Ended June 30, 2015 | 15.25 | 0.19 | 0.24 | 0.43 | (0.28 | ) | (0.28 | ) | (0.56 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.61 | 0.17 | (g) | 1.74 | 1.91 | (0.23 | ) | (0.04 | ) | (0.27 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.14 | 0.14 | (g) | 0.73 | 0.87 | (0.21 | ) | (0.74 | ) | (0.95 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 14.13 | 0.14 | (g) | 1.30 | 1.44 | (0.15 | ) | (0.28 | ) | (0.43 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 14.92 | 0.14 | (g) | (0.29 | ) | (0.15 | ) | (0.17 | ) | (0.47 | ) | (0.64 | ) | |||||||||||||||
Year Ended June 30, 2015 | 15.05 | 0.13 | 0.23 | 0.36 | (0.21 | ) | (0.28 | ) | (0.49 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.44 | 0.09 | (g) | 1.71 | 1.80 | (0.15 | ) | (0.04 | ) | (0.19 | ) | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 15.39 | 0.28 | (g) | 0.73 | 1.01 | (0.33 | ) | (0.74 | ) | (1.07 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 14.35 | 0.27 | (g) | 1.33 | 1.60 | (0.28 | ) | (0.28 | ) | (0.56 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 15.14 | 0.26 | (g) | (0.30 | ) | (0.04 | ) | (0.28 | ) | (0.47 | ) | (0.75 | ) | |||||||||||||||
Year Ended June 30, 2015 | 15.27 | 0.24 | 0.23 | 0.47 | (0.32 | ) | (0.28 | ) | (0.60 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 13.62 | 0.20 | (g) | 1.75 | 1.95 | (0.26 | ) | (0.04 | ) | (0.30 | ) | |||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
July 31, 2017 (h) through June 30, 2018 | 15.63 | 0.29 | (g) | 0.50 | 0.79 | (0.36 | ) | (0.74 | ) | (1.10 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Net investment income (loss) is affected by timing of distributions from Underlying Funds. |
(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) | Does not include expenses of Underlying Funds. |
(f) | Includes earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(g) | Calculated based upon average shares outstanding. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
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 investment income (loss) (b) | Expenses without waivers, reimbursements and earnings credits (e) | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 15.30 | 6.30 | % | $ | 3,436,111 | 0.52 | % | 1.54 | % | 0.63 | % | 9 | % | |||||||||||||
15.37 | 11.09 | 3,430,816 | 0.52 | 1.55 | 0.65 | 4 | ||||||||||||||||||||
14.33 | (0.40 | ) | 3,836,242 | 0.46 | 1.55 | 0.67 | 12 | |||||||||||||||||||
15.12 | 2.89 | 4,018,244 | 0.34 | 1.26 | 0.66 | 10 | ||||||||||||||||||||
15.25 | 14.12 | 3,749,519 | 0.41 | 1.16 | 0.67 | 12 | ||||||||||||||||||||
15.06 | 5.71 | 791,718 | 1.09 | 0.89 | 1.13 | 9 | ||||||||||||||||||||
15.14 | 10.40 | 1,071,522 | 1.09 | 0.97 | 1.15 | 4 | ||||||||||||||||||||
14.13 | (0.95 | ) | 1,155,896 | 1.01 | 1.00 | 1.16 | 12 | |||||||||||||||||||
14.92 | 2.45 | 1,195,830 | 0.80 | 0.81 | 1.16 | 10 | ||||||||||||||||||||
15.05 | 13.50 | 995,919 | 0.97 | 0.61 | 1.17 | 12 | ||||||||||||||||||||
15.33 | 6.62 | 471,153 | 0.27 | 1.76 | 0.37 | 9 | ||||||||||||||||||||
15.39 | 11.36 | 469,758 | 0.27 | 1.80 | 0.38 | 4 | ||||||||||||||||||||
14.35 | (0.15 | ) | 408,797 | 0.20 | 1.83 | 0.39 | 12 | |||||||||||||||||||
15.14 | 3.15 | 353,402 | 0.08 | 1.51 | 0.40 | 10 | ||||||||||||||||||||
15.27 | 14.45 | 329,525 | 0.16 | 1.39 | 0.42 | 12 | ||||||||||||||||||||
15.32 | 5.07 | 85,614 | 0.12 | 2.03 | 0.12 | 9 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 23 |
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 | ||||||||||||||||||||||
JPMorgan Investor Conservative Growth Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 12.80 | $ | 0.24 | (g) | $ | 0.24 | $ | 0.48 | $ | (0.26 | ) | $ | (0.41 | ) | $ | (0.67 | ) | ||||||||||
Year Ended June 30, 2017 | 12.36 | 0.23 | (g) | 0.61 | 0.84 | (0.23 | ) | (0.17 | ) | (0.40 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 12.78 | 0.22 | (g) | (0.11 | ) | 0.11 | (0.23 | ) | (0.30 | ) | (0.53 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 13.00 | 0.19 | 0.05 | 0.24 | (0.22 | ) | (0.24 | ) | (0.46 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.01 | 0.18 | (g) | 1.02 | 1.20 | (0.21 | ) | — | (0.21 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 12.75 | 0.16 | (g) | 0.24 | 0.40 | (0.19 | ) | (0.41 | ) | (0.60 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 12.30 | 0.15 | (g) | 0.62 | 0.77 | (0.15 | ) | (0.17 | ) | (0.32 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 12.73 | 0.15 | (g) | (0.12 | ) | 0.03 | (0.16 | ) | (0.30 | ) | (0.46 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 12.95 | 0.13 | 0.06 | 0.19 | (0.17 | ) | (0.24 | ) | (0.41 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 11.97 | 0.11 | (g) | 1.01 | 1.12 | (0.14 | ) | — | (0.14 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 12.87 | 0.27 | (g) | 0.25 | 0.52 | (0.29 | ) | (0.41 | ) | (0.70 | ) | |||||||||||||||||
Year Ended June 30, 2017 | 12.42 | 0.26 | (g) | 0.62 | 0.88 | (0.26 | ) | (0.17 | ) | (0.43 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 12.84 | 0.25 | (g) | (0.11 | ) | 0.14 | (0.26 | ) | (0.30 | ) | (0.56 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 13.06 | 0.22 | 0.06 | 0.28 | (0.26 | ) | (0.24 | ) | (0.50 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 12.06 | 0.21 | (g) | 1.03 | 1.24 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
July 31, 2017 (h) through June 30, 2018 | 13.00 | 0.24 | (g) | 0.14 | 0.38 | (0.29 | ) | (0.41 | ) | (0.70 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Net investment income (loss) is affected by timing of distributions from Underlying Funds. |
(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) | Does not include expenses of Underlying Funds. |
(f) | Includes earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(g) | Calculated based upon average shares outstanding. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
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 investment income (loss) (b) | Expenses without waivers, reimbursements and earnings credits (e) | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 12.61 | 3.76 | % | $ | 2,173,957 | 0.52 | % | 1.85 | % | 0.64 | % | 6 | % | |||||||||||||
12.80 | 6.92 | 2,081,812 | 0.52 | 1.80 | 0.65 | 6 | ||||||||||||||||||||
12.36 | 0.97 | 2,411,763 | 0.46 | 1.76 | 0.66 | 12 | ||||||||||||||||||||
12.78 | 1.89 | 2,554,155 | 0.34 | 1.46 | 0.66 | 11 | ||||||||||||||||||||
13.00 | 10.05 | 2,516,247 | 0.41 | 1.41 | 0.66 | 20 | ||||||||||||||||||||
12.55 | 3.09 | 1,188,675 | 1.10 | 1.21 | 1.13 | 6 | ||||||||||||||||||||
12.75 | 6.40 | 1,573,159 | 1.10 | 1.22 | 1.15 | 6 | ||||||||||||||||||||
12.30 | 0.34 | 1,740,461 | 1.01 | 1.21 | 1.16 | 12 | ||||||||||||||||||||
12.73 | 1.44 | 1,831,636 | 0.79 | 1.02 | 1.16 | 11 | ||||||||||||||||||||
12.95 | 9.42 | 1,580,447 | 0.97 | 0.87 | 1.16 | 20 | ||||||||||||||||||||
12.69 | 4.08 | 136,915 | 0.27 | 2.09 | 0.39 | 6 | ||||||||||||||||||||
12.87 | 7.22 | 135,687 | 0.27 | 2.05 | 0.40 | 6 | ||||||||||||||||||||
12.42 | 1.22 | 135,832 | 0.21 | 2.02 | 0.41 | 12 | ||||||||||||||||||||
12.84 | 2.13 | 130,507 | 0.09 | 1.71 | 0.40 | 11 | ||||||||||||||||||||
13.06 | 10.35 | 119,664 | 0.16 | 1.66 | 0.41 | 20 | ||||||||||||||||||||
12.68 | 2.95 | 175 | 0.14 | 2.09 | 0.15 | 6 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 25 |
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)(c) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Investor Growth Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 20.38 | $ | 0.19 | $ | 2.04 | $ | 2.23 | $ | (0.37 | ) | $ | (1.44 | ) | $ | (1.81 | ) | |||||||||||
Year Ended June 30, 2017 | 18.04 | 0.18 | 3.19 | 3.37 | (0.19 | ) | (0.84 | ) | (1.03 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 19.95 | 0.17 | (0.89 | ) | (0.72 | ) | (0.24 | ) | (0.95 | ) | (1.19 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 19.59 | 0.15 | 0.91 | 1.06 | (0.39 | ) | (0.31 | ) | (0.70 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 16.25 | 0.11 | 3.45 | 3.56 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 19.20 | 0.04 | 1.95 | 1.99 | (0.32 | ) | (1.44 | ) | (1.76 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 17.10 | 0.06 | 3.01 | 3.07 | (0.13 | ) | (0.84 | ) | (0.97 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 19.01 | 0.07 | (0.85 | ) | (0.78 | ) | (0.18 | ) | (0.95 | ) | (1.13 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 18.75 | 0.05 | 0.87 | 0.92 | (0.35 | ) | (0.31 | ) | (0.66 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 15.60 | 0.01 | 3.30 | 3.31 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 20.77 | 0.24 | 2.09 | 2.33 | (0.42 | ) | (1.44 | ) | (1.86 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 18.37 | 0.23 | 3.25 | 3.48 | (0.24 | ) | (0.84 | ) | (1.08 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 20.29 | 0.23 | (0.91 | ) | (0.68 | ) | (0.29 | ) | (0.95 | ) | (1.24 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 19.91 | 0.20 | 0.93 | 1.13 | (0.44 | ) | (0.31 | ) | (0.75 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 16.51 | 0.16 | 3.50 | 3.66 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
July 31, 2017 (h) through June 30, 2018 | 21.25 | 0.29 | 1.58 | 1.87 | (0.45 | ) | (1.44 | ) | (1.89 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Net investment income (loss) is affected by timing of distributions from Underlying Funds. |
(d) | Not annualized for periods less than one year. |
(e) | 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. |
(f) | Does not include expenses of Underlying Funds. |
(g) | Includes earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets (a) | ||||||||||||||||||||||||||
Net asset value, end of period | Total return (excludes sales charge) (d)(e) | Net assets, end of period (000’s) | Net expenses (f)(g) | Net investment income (loss) (c) | Expenses | Portfolio turnover rate (d) | ||||||||||||||||||||
$ | 20.80 | 11.02 | % | $ | 2,048,525 | 0.52 | % | 0.88 | % | 0.67 | % | 11 | % | |||||||||||||
20.38 | 19.19 | 1,937,119 | 0.52 | 0.93 | 0.70 | 8 | ||||||||||||||||||||
18.04 | (3.54 | ) | 1,893,308 | 0.47 | 0.93 | 0.72 | 8 | |||||||||||||||||||
19.95 | 5.51 | 1,994,792 | 0.38 | 0.74 | 0.71 | 10 | ||||||||||||||||||||
19.59 | 21.95 | 1,791,194 | 0.41 | 0.59 | 0.71 | 8 | ||||||||||||||||||||
19.43 | 10.41 | 205,740 | 1.10 | 0.20 | 1.16 | 11 | ||||||||||||||||||||
19.20 | 18.47 | 274,389 | 1.09 | 0.35 | 1.19 | 8 | ||||||||||||||||||||
17.10 | (4.05 | ) | 270,007 | 1.02 | 0.39 | 1.21 | 8 | |||||||||||||||||||
19.01 | 4.97 | 268,270 | 0.85 | 0.26 | 1.21 | 10 | ||||||||||||||||||||
18.75 | 21.30 | 226,430 | 0.95 | 0.05 | 1.21 | 8 | ||||||||||||||||||||
21.24 | 11.33 | 439,498 | 0.27 | 1.11 | 0.39 | 11 | ||||||||||||||||||||
20.77 | 19.46 | 346,558 | 0.27 | 1.17 | 0.39 | 8 | ||||||||||||||||||||
18.37 | (3.28 | ) | 283,616 | 0.20 | 1.21 | 0.40 | 8 | |||||||||||||||||||
20.29 | 5.80 | 260,097 | 0.10 | 1.01 | 0.42 | 10 | ||||||||||||||||||||
19.91 | 22.25 | 182,413 | 0.16 | 0.85 | 0.46 | 8 | ||||||||||||||||||||
21.23 | 8.90 | 8,073 | 0.14 | 1.45 | 0.27 | 11 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 27 |
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)(c) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Investor Growth & Income Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 17.37 | $ | 0.22 | $ | 1.27 | $ | 1.49 | $ | (0.33 | ) | $ | (1.12 | ) | $ | (1.45 | ) | |||||||||||
Year Ended June 30, 2017 | 15.79 | 0.22 | 2.07 | 2.29 | (0.23 | ) | (0.48 | ) | (0.71 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 17.02 | 0.21 | (0.58 | ) | (0.37 | ) | (0.25 | ) | (0.61 | ) | (0.86 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 17.11 | 0.19 | 0.44 | 0.63 | (0.33 | ) | (0.39 | ) | (0.72 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 14.78 | 0.16 | 2.40 | 2.56 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 16.91 | 0.10 | 1.26 | 1.36 | (0.23 | ) | (1.12 | ) | (1.35 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 15.39 | 0.12 | 2.01 | 2.13 | (0.13 | ) | (0.48 | ) | (0.61 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.62 | 0.12 | (0.57 | ) | (0.45 | ) | (0.17 | ) | (0.61 | ) | (0.78 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.72 | 0.11 | 0.44 | 0.55 | (0.26 | ) | (0.39 | ) | (0.65 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 14.46 | 0.07 | 2.34 | 2.41 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 17.11 | 0.26 | 1.26 | 1.52 | (0.37 | ) | (1.12 | ) | (1.49 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 15.57 | 0.25 | 2.04 | 2.29 | (0.27 | ) | (0.48 | ) | (0.75 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 16.80 | 0.25 | (0.58 | ) | (0.33 | ) | (0.29 | ) | (0.61 | ) | (0.90 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 16.89 | 0.23 | 0.44 | 0.67 | (0.37 | ) | (0.39 | ) | (0.76 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 14.59 | 0.19 | 2.38 | 2.57 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
July 31, 2017 (h) through June 30, 2018 | 17.44 | 0.22 | 0.99 | 1.21 | (0.40 | ) | (1.12 | ) | (1.52 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Net investment income (loss) is affected by timing of distributions from Underlying Funds. |
(c) | Calculated based upon average shares outstanding. |
(d) | Not annualized for periods less than one year. |
(e) | 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. |
(f) | Does not include expenses of Underlying Funds. |
(g) | Includes earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets (a) | ||||||||||||||||||||||||||
Net asset value, end of period | Total return (excludes sales charge) (d)(e) | Net assets, end of period (000’s) | Net expenses (f)(g) | Net investment income (loss) (b) | Expenses | Portfolio turnover rate (d) | ||||||||||||||||||||
$ | 17.41 | 8.67 | % | $ | 2,386,397 | 0.52 | % | 1.25 | % | 0.66 | % | 11 | % | |||||||||||||
17.37 | 14.82 | 2,348,659 | 0.52 | 1.30 | 0.67 | 7 | ||||||||||||||||||||
15.79 | (2.06 | ) | 2,489,097 | 0.46 | 1.33 | 0.69 | 13 | |||||||||||||||||||
17.02 | 3.78 | 2,659,305 | 0.36 | 1.11 | 0.69 | 9 | ||||||||||||||||||||
17.11 | 17.40 | 2,432,024 | 0.41 | 0.96 | 0.68 | 10 | ||||||||||||||||||||
16.92 | 8.10 | 260,085 | 1.10 | 0.57 | 1.14 | 11 | ||||||||||||||||||||
16.91 | 14.17 | 385,447 | 1.10 | 0.73 | 1.17 | 7 | ||||||||||||||||||||
15.39 | (2.63 | ) | 414,439 | 1.02 | 0.79 | 1.19 | 13 | |||||||||||||||||||
16.62 | 3.37 | 430,037 | 0.82 | 0.65 | 1.19 | 9 | ||||||||||||||||||||
16.72 | 16.72 | 358,544 | 0.96 | 0.42 | 1.18 | 10 | ||||||||||||||||||||
17.14 | 9.02 | 242,612 | 0.27 | 1.49 | 0.39 | 11 | ||||||||||||||||||||
17.11 | 15.07 | 238,466 | 0.27 | 1.53 | 0.39 | 7 | ||||||||||||||||||||
15.57 | (1.82 | ) | 238,427 | 0.20 | 1.60 | 0.40 | 13 | |||||||||||||||||||
16.80 | 4.11 | 244,290 | 0.09 | 1.38 | 0.41 | 9 | ||||||||||||||||||||
16.89 | 17.71 | 208,836 | 0.16 | 1.21 | 0.44 | 10 | ||||||||||||||||||||
17.13 | 7.04 | 619 | 0.13 | 1.42 | 0.14 | 11 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 29 |
Table of Contents
AS OF JUNE 30, 2018
1. Organization
JPMorgan Trust II (“JPM II” or the “Trust”) was formed on November 12, 2004, as a Delaware statutory trust, pursuant to a Declaration of Trust dated November 5, 2004 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 4 separate funds of the Trust (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Diversified/Non-Diversified | |||
JPMorgan Investor Balanced Fund | Class A, Class C, Class I, Class R6* and Class T** | Diversified | ||
JPMorgan Investor Conservative Growth Fund | Class A, Class C, Class I, Class R6* and Class T** | Diversified | ||
JPMorgan Investor Growth Fund | Class A, Class C, Class I, Class R6* and Class T** | Diversified | ||
JPMorgan Investor Growth & Income Fund | Class A, Class C, Class I, Class R6* and Class T** | Diversified |
* | Class R6 commenced operations on July 31, 2017. |
** | Class T Shares had no assets from the close of business on June 5, 2018 and are not offered to the public. |
The investment objective of the JPMorgan Investor Balanced Fund (“Investor Balanced Fund”) is to seek high total return consistent with the preservation of capital by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity and fixed income securities.
The investment objective of the JPMorgan Investor Conservative Growth Fund (“Investor Conservative Growth Fund”) is to seek income and capital appreciation by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in fixed income and equity securities.
The investment objective of the JPMorgan Investor Growth Fund (“Investor Growth Fund”) is to seek long-term capital appreciation by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity securities.
The investment objective of the JPMorgan Investor Growth & Income Fund (“Investor Growth & Income Fund”) is to seek long-term capital appreciation and growth of income by investing primarily in a diversified group of mutual funds within the same group of investment companies that invest primarily in equity securities.
Class A and Class T 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 I Shares or Class R6 Shares. 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. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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.
Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s net asset value per share (“NAV”) as of the report date.
30 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
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). |
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):
Investor Balanced Fund
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 4,783,032 | $ | — | $ | — | $ | 4,783,032 | ||||||||
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Investor Conservative Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 3,496,176 | $ | — | $ | — | $ | 3,496,176 | ||||||||
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Investor Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 2,704,547 | $ | — | $ | — | $ | 2,704,547 | ||||||||
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Investor Growth & Income Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 2,885,706 | $ | — | $ | — | $ | 2,885,706 | ||||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for asset class specifics of portfolio holdings. |
There were no transfers among any levels during the year ended June 30, 2018.
B. Investment Transactions with Affiliates — The Funds invested in Underlying Funds which are advised by the Adviser. An issuer which is under common control with a fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. Underlying Funds’ distributions may be reinvested into the Underlying Funds. Reinvestment amounts are included in the purchase cost amounts in the tables below. Included in the purchases and sales amounts in the table below are exchanges between certain share classes of the Underlying Funds. Such exchanges are not treated as purchases and sales for the purpose of recognizing realized gains (losses) or portfolio turnover. Amounts in the tables below are in thousands.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 31 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Investor Balanced Fund
For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | $ | 864,389 | $ | 163,529 | $ | 17,727 | $ | (59 | ) | $ | (28,217 | ) | $ | 981,915 | 87,126 | $ | 25,739 | $ | 1,998 | |||||||||||||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 500,148 | 21,967 | 32,961 | (783 | ) | (12,563 | ) | 475,808 | 59,107 | 14,390 | — | |||||||||||||||||||||||||
JPMorgan Dynamic Growth Fund Class R5 Shares (a) | 98,716 | 9,474 | 66,302 | 1,901 | (43,789 | ) | — | — | 159 | 9,314 | ||||||||||||||||||||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 64,143 | 10,237 | 6,545 | 500 | 702 | 69,037 | 5,137 | 1,543 | — | |||||||||||||||||||||||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 49,783 | 2,176 | 987 | 15 | (2,980 | ) | 48,007 | 6,194 | 2,176 | — | ||||||||||||||||||||||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 65,093 | 7,158 | 8,032 | 1,579 | 3,393 | 69,191 | 2,492 | 394 | — | |||||||||||||||||||||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 92,523 | 5,885 | 9,951 | 2,031 | 4,803 | 95,291 | 5,573 | 1,815 | 836 | |||||||||||||||||||||||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 162,788 | 6,546 | 8,306 | (601 | ) | (747 | ) | 159,680 | 17,115 | 6,547 | — | |||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class I Shares (a) | 164,433 | — | 127,802 | 2,220 | (38,851 | ) | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | — | 121,211 | 12,290 | 2,461 | 47,421 | 158,803 | 7,080 | 3,349 | — | (b) | ||||||||||||||||||||||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 200,025 | 9,627 | 89,622 | 444 | (5,354 | ) | 115,120 | 15,967 | 9,627 | — | ||||||||||||||||||||||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 77,323 | 1,780 | 6,248 | (346 | ) | (572 | ) | 71,937 | 7,108 | 1,780 | — | |||||||||||||||||||||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 85,137 | 3,858 | 22,946 | 3,148 | 2,183 | 71,380 | 4,098 | 1,443 | — | |||||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class I Shares (a) | 275,639 | — | 250,066 | (1,090 | ) | (24,483 | ) | — | — | — | — | |||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | — | 243,537 | 21,671 | (793 | ) | 34,727 | 255,800 | 13,940 | 3,283 | 2,800 | ||||||||||||||||||||||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 337,614 | 59,660 | 83,686 | 20,794 | (172 | ) | 334,210 | 8,065 | 5,188 | 32,322 | ||||||||||||||||||||||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 119,913 | 2,044 | 23,815 | (202 | ) | 2,614 | 100,554 | 3,810 | 2,044 | — | ||||||||||||||||||||||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 169,306 | 1,477 | 37,873 | 23,624 | 10,420 | 166,954 | 2,814 | 1,477 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid Mid Cap Fund Class R6 Shares (a) | 96,886 | 7,340 | 65,163 | 31,411 | (27,766 | ) | 42,708 | 1,777 | 985 | 6,355 | ||||||||||||||||||||||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 65,438 | 72,816 | 42,473 | 8,894 | 60,323 | 164,998 | 3,754 | — | 8,549 | |||||||||||||||||||||||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 128,533 | 11,508 | 16,987 | 3,342 | (5,834 | ) | 120,562 | 8,091 | 1,612 | 9,897 | ||||||||||||||||||||||||||
JPMorgan Latin America Fund Class R6 Shares* (a) | 10,122 | — | 11,138 | (577 | ) | 1,593 | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 205,654 | 6,690 | 12,595 | (45 | ) | (979 | ) | 198,725 | 19,912 | 4,211 | — | |||||||||||||||||||||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 158,985 | 26,311 | 21,455 | 2,331 | 2,672 | 168,844 | 14,165 | 1,302 | 15,772 | |||||||||||||||||||||||||||
JPMorgan Multi-Cap Market Neutral Fund Class I Shares* (a) | 49,614 | — | 51,902 | 4,729 | (2,441 | ) | — | — | — | 3 | ||||||||||||||||||||||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 49,629 | 1,271 | 1,959 | (20 | ) | (386 | ) | 48,535 | 3,212 | — | 1,270 | |||||||||||||||||||||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 22,448 | 12,293 | — | — | 2,032 | 36,773 | 1,138 | 301 | 1,269 | |||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R5 Shares (a) | 96,465 | 943 | 98,981 | — | 1,573 | — | — | 943 | — | |||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | — | 100,939 | 1,933 | (60 | ) | (2,265 | ) | 96,681 | 8,349 | 1,958 | — | |||||||||||||||||||||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 91,901 | 7,446 | — | — | (5,414 | ) | 93,933 | 6,469 | — | — |
32 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
Investor Balanced Fund (continued) |
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For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | $ | 481,111 | $ | 50,972 | $ | 104,322 | $ | 20,658 | $ | 2,457 | $ | 450,876 | 27,227 | $ | 5,421 | $ | 34,777 | |||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (c) | — | 113,030 | 61,867 | — | — | 51,163 | 51,163 | 168 | — | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares (a) | 44,804 | 359,645 | 404,449 | — | — | — | — | 452 | — | |||||||||||||||||||||||||||
JPMorgan Unconstrained Debt Fund Class R6 Shares (a) | 42,843 | 1,613 | — | — | (885 | ) | 43,571 | 4,446 | 1,613 | — | ||||||||||||||||||||||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 92,691 | 3,854 | 10,010 | 1,834 | 3,607 | 91,976 | 2,584 | 1,177 | 902 | |||||||||||||||||||||||||||
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Total | $ | 4,964,097 | $ | 1,446,837 | $ | 1,732,064 | $ | 127,340 | $ | (23,178 | ) | $ | 4,783,032 | $ | 101,097 | $ | 126,064 | |||||||||||||||||||
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Investor Conservative Growth Fund |
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For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | $ | 1,031,757 | $ | 66,073 | $ | 30,054 | $ | (179 | ) | $ | (31,665 | ) | $ | 1,035,932 | 91,919 | $ | 29,115 | $ | 2,327 | |||||||||||||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 487,454 | 13,717 | 47,043 | (597 | ) | (12,045 | ) | 441,486 | 54,843 | 13,713 | — | |||||||||||||||||||||||||
JPMorgan Dynamic Growth Fund Class R5 Shares (a) | 44,445 | 4,164 | 32,348 | 1,116 | (17,377 | ) | — | — | 70 | 4,094 | ||||||||||||||||||||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 38,041 | 9,397 | 8,649 | 610 | 8 | 39,407 | 2,932 | 812 | — | |||||||||||||||||||||||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 38,039 | 1,617 | 2,964 | 25 | (2,146 | ) | 34,571 | 4,461 | 1,615 | — | ||||||||||||||||||||||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 38,035 | 7,423 | 9,011 | 1,765 | 872 | 39,084 | 1,408 | 211 | — | |||||||||||||||||||||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 68,607 | 1,893 | 14,020 | 4,338 | 634 | 61,452 | 3,594 | 1,281 | 611 | |||||||||||||||||||||||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 143,137 | 5,715 | 7,037 | (516 | ) | (664 | ) | 140,635 | 15,073 | 5,716 | — | |||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class I Shares (a) | 45,813 | — | 35,119 | 957 | (11,651 | ) | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | — | 32,262 | 1,799 | 254 | 14,026 | 44,743 | 1,995 | 912 | — | (b) | ||||||||||||||||||||||||||
JPMorgan Government Bond Fund Class R6 Shares (a) | 39,574 | 2,930 | 1,410 | (107 | ) | (1,072 | ) | 39,915 | 3,894 | 1,022 | 36 | |||||||||||||||||||||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 119,641 | 5,451 | 68,016 | 3,718 | (6,447 | ) | 54,347 | 7,538 | 5,451 | — | ||||||||||||||||||||||||||
JPMorgan Income Fund Class R6 Shares (a) | 70,397 | 3,881 | — | — | (b) | (2,230 | ) | 72,048 | 7,823 | 3,880 | — | |||||||||||||||||||||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 71,322 | 1,621 | 5,701 | (205 | ) | (625 | ) | 66,412 | 6,562 | 1,621 | — | |||||||||||||||||||||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 44,583 | 2,144 | 15,238 | 2,091 | 955 | 34,535 | 1,982 | 734 | — | |||||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class I Shares (a) | 143,997 | — | 132,472 | (713 | ) | (10,812 | ) | — | — | — | — | |||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | — | 128,220 | 5,863 | (208 | ) | 15,916 | 138,065 | 7,524 | 1,688 | 1,447 | ||||||||||||||||||||||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 203,213 | 38,313 | 73,576 | 12,255 | 474 | 180,679 | 4,360 | 3,017 | 18,687 | |||||||||||||||||||||||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 49,537 | 833 | 18,075 | 50 | 1,293 | 33,638 | 1,275 | 833 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 99,108 | 2,186 | 32,877 | 19,712 | (143 | ) | 87,986 | 1,483 | 841 | — | ||||||||||||||||||||||||||
JPMorgan Large Cap Growth Fund Class R5 Shares* (a) | — | 1,812 | 1,872 | 60 | — | — | — | — | — |
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 33 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Investor Conservative Growth Fund (continued) |
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For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | $ | — | $ | 29,327 | $ | 10,966 | $ | 3,275 | $ | 21,290 | $ | 42,926 | 977 | $ | — | $ | — | |||||||||||||||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 25,031 | 2,254 | 4,124 | 242 | (718 | ) | 22,685 | 1,522 | 309 | 1,946 | ||||||||||||||||||||||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 313,389 | 6,316 | 26,874 | (33 | ) | (1,493 | ) | 291,305 | 29,189 | 6,316 | — | |||||||||||||||||||||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 49,201 | 5,290 | 12,136 | 973 | 291 | 43,619 | 3,659 | 398 | 4,891 | |||||||||||||||||||||||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 38,378 | 2,292 | 12,157 | 2,719 | 1,735 | 32,967 | 916 | — | 2,292 | |||||||||||||||||||||||||||
JPMorgan Multi-Cap Market Neutral Fund Class I Shares* (a) | 38,275 | — | 40,010 | 3,751 | (2,016 | ) | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 38,011 | 943 | 2,940 | — | (b) | (283 | ) | 35,731 | 2,365 | — | 944 | |||||||||||||||||||||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 24,562 | 3,396 | 2,249 | 203 | 1,200 | 27,112 | 839 | 277 | 1,308 | |||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R5 Shares (a) | 71,794 | 694 | 73,414 | (23 | ) | 949 | — | — | 694 | — | ||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | — | 73,714 | 2,496 | (67 | ) | (1,405 | ) | 69,746 | 6,023 | 1,425 | — | |||||||||||||||||||||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 91,720 | — | — | — | (5,015 | ) | 86,705 | 5,971 | — | — | ||||||||||||||||||||||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 184,085 | 26,628 | 51,057 | 11,336 | (2,187 | ) | 168,805 | 10,194 | 2,037 | 12,996 | ||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (c) | — | 96,780 | 61,867 | — | — | 34,913 | 34,913 | 118 | — | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares (a) | 34,329 | 304,597 | 338,926 | — | — | — | — | 326 | — | |||||||||||||||||||||||||||
JPMorgan Unconstrained Debt Fund Class R6 Shares (a) | 35,884 | 1,351 | — | — | (741 | ) | 36,494 | 3,724 | 1,351 | — | ||||||||||||||||||||||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 64,890 | 1,429 | 11,872 | 2,641 | 1,145 | 58,233 | 1,636 | 804 | 625 | |||||||||||||||||||||||||||
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Total | $ | 3,786,249 | $ | 884,663 | $ | 1,194,232 | $ | 69,443 | $ | (49,947 | ) | $ | 3,496,176 | $ | 86,587 | $ | 52,204 | |||||||||||||||||||
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Investor Growth Fund |
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For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Commodities Strategy Fund Class R6 Shares (a) | $ | 9,819 | $ | 21 | $ | — | $ | — | $ | 486 | $ | 10,326 | 1,133 | $ | 20 | $ | — | |||||||||||||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 114,284 | 79,335 | — | — | (4,303 | ) | 189,316 | 16,798 | 4,022 | 282 | ||||||||||||||||||||||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 28,184 | 5,873 | 1,634 | (77 | ) | (820 | ) | 31,526 | 3,916 | 901 | — | (b) | ||||||||||||||||||||||||
JPMorgan Dynamic Growth Fund Class R5 Shares (a) | 17,839 | 1,787 | 10,801 | — | (8,825 | ) | — | — | 30 | 1,757 | ||||||||||||||||||||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | 49,335 | 8,292 | 2,563 | 36 | 282 | 55,382 | 4,121 | 1,163 | — | |||||||||||||||||||||||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 12,842 | 572 | — | — | (783 | ) | 12,631 | 1,630 | 572 | — | ||||||||||||||||||||||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 49,903 | 5,796 | 3,072 | 347 | 3,025 | 55,999 | 2,017 | 299 | — | |||||||||||||||||||||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 46,135 | 1,373 | 1,593 | 98 | 3,312 | 49,325 | 2,884 | 938 | 434 | |||||||||||||||||||||||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 21,633 | 5,470 | — | — | (239 | ) | 26,864 | 2,879 | 970 | — |
34 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
Investor Growth Fund (continued) |
| |||||||||||||||||||||||||||||||||||
For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class I Shares (a) | $ | 72,386 | $ | — | $ | 55,272 | $ | 254 | $ | (17,368 | ) | $ | — | — | $ | — | $ | — | ||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | — | 55,983 | — | — | 22,958 | 78,941 | 3,519 | 1,527 | — | |||||||||||||||||||||||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 70,302 | 3,312 | 45,426 | 2,634 | (4,343 | ) | 26,479 | 3,672 | 3,313 | — | ||||||||||||||||||||||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 83 | — | (b) | 84 | 2 | (1 | ) | — | — | — | (b) | — | ||||||||||||||||||||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 115,430 | 8,964 | 7,116 | 227 | 5,444 | 122,949 | 7,058 | 2,057 | — | |||||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class I Shares (a) | 180,397 | — | 166,265 | (1,002 | ) | (13,130 | ) | — | — | — | — | |||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | — | 176,034 | 2,959 | (504 | ) | 19,397 | 191,968 | 10,461 | 2,233 | 1,904 | ||||||||||||||||||||||||||
JPMorgan International Unconstrained Equity Fund Class R6 Shares (a) | 76,454 | 2,649 | 797 | 70 | 2,764 | 81,140 | 3,962 | 704 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 300,516 | 35,796 | 41,305 | 5,267 | 11,986 | 312,260 | 7,535 | 4,936 | 30,860 | |||||||||||||||||||||||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 86,498 | 3,289 | 1,604 | (48 | ) | 1,087 | 89,222 | 3,381 | 1,567 | — | ||||||||||||||||||||||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 127,427 | 1,209 | 19,777 | 12,176 | 14,528 | 135,563 | 2,285 | 1,209 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid Mid Cap Fund Class R6 Shares (a) | 45,064 | 3,504 | 36,659 | 15,423 | (13,757 | ) | 13,575 | 565 | 475 | 3,029 | ||||||||||||||||||||||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 199,016 | 38,775 | 43,799 | 9,981 | 30,693 | 234,666 | 5,339 | — | 27,973 | |||||||||||||||||||||||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 257,728 | 24,929 | 13,401 | 333 | (6,757 | ) | 262,832 | 17,640 | 3,492 | 21,438 | ||||||||||||||||||||||||||
JPMorgan Latin America Fund Class R6 Shares* (a) | 10,006 | — | 11,020 | 501 | 513 | — | — | — | — | |||||||||||||||||||||||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 143,402 | 18,343 | 10,217 | 721 | 3,332 | 155,581 | 13,052 | 1,213 | 14,327 | |||||||||||||||||||||||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 33,536 | 2,033 | 3,158 | 643 | 3,271 | 36,325 | 1,009 | — | 2,033 | |||||||||||||||||||||||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 33,213 | 5,078 | 1,370 | 61 | 1,790 | 38,772 | 1,200 | 399 | 1,878 | |||||||||||||||||||||||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 25,805 | 7,437 | — | — | (1,798 | ) | 31,444 | 2,166 | — | — | ||||||||||||||||||||||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 357,350 | 31,945 | 28,210 | 1,644 | 14,668 | 377,397 | 22,790 | 4,340 | 27,605 | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (c) | — | 60,323 | 27,193 | — | — | 33,130 | 33,130 | 96 | — | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares (a) | 24,595 | 140,295 | 164,890 | — | — | — | — | 257 | — | |||||||||||||||||||||||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 47,527 | 1,148 | 559 | 8 | 2,810 | 50,934 | 1,431 | 657 | 490 | |||||||||||||||||||||||||||
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Total | $ | 2,556,709 | $ | 729,565 | $ | 700,744 | $ | 48,795 | $ | 70,222 | $ | 2,704,547 | $ | 37,390 | $ | 134,010 | ||||||||||||||||||||
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Investor Growth & Income Fund |
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For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Commodities Strategy Fund Class R6 Shares (a) | $ | 9,152 | $ | 18 | $ | 901 | $ | (483 | ) | $ | 934 | $ | 8,720 | 957 | $ | 17 | $ | — | ||||||||||||||||||
JPMorgan Core Bond Fund Class R6 Shares (a) | 311,768 | 123,018 | 9,345 | (233 | ) | (10,344 | ) | 414,864 | 36,811 | 9,882 | 728 | |||||||||||||||||||||||||
JPMorgan Core Plus Bond Fund Class R6 Shares (a) | 187,208 | 11,542 | 13,145 | (243 | ) | (4,807 | ) | 180,555 | 22,429 | 5,413 | — | |||||||||||||||||||||||||
JPMorgan Dynamic Growth Fund Class R5 Shares (a) | 28,903 | 2,619 | 19,222 | 1,374 | (13,674 | ) | — | — | 44 | 2,575 |
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 35 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Investor Growth & Income Fund (continued) |
| |||||||||||||||||||||||||||||||||||
For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan Emerging Economies Fund Class R6 Shares (a) | $ | 46,927 | $ | 5,777 | $ | 4,834 | $ | 250 | $ | 588 | $ | 48,708 | 3,624 | $ | 1,100 | $ | — | |||||||||||||||||||
JPMorgan Emerging Markets Debt Fund Class R6 Shares (a) | 14,941 | 664 | — | — | (910 | ) | 14,695 | 1,896 | 665 | — | ||||||||||||||||||||||||||
JPMorgan Emerging Markets Equity Fund Class R6 Shares (a) | 47,446 | 3,503 | 5,447 | 1,053 | 2,630 | 49,185 | 1,772 | 286 | — | |||||||||||||||||||||||||||
JPMorgan Equity Income Fund Class R6 Shares (a) | 55,256 | 1,587 | 6,015 | 1,184 | 2,925 | 54,937 | 3,213 | 1,076 | 510 | |||||||||||||||||||||||||||
JPMorgan Floating Rate Income Fund Class R6 Shares (a) | 97,698 | 3,762 | 18,564 | (1,322 | ) | 642 | 82,216 | 8,812 | 3,761 | — | ||||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class I Shares (a) | 104,179 | — | 79,988 | 862 | (25,053 | ) | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund Class R6 Shares (a) | — | 77,984 | — | — | 32,577 | 110,561 | 4,929 | 2,166 | — | |||||||||||||||||||||||||||
JPMorgan High Yield Fund Class R6 Shares (a) | 119,711 | 5,627 | 66,170 | 1,353 | (4,232 | ) | 56,289 | 7,807 | 5,628 | — | ||||||||||||||||||||||||||
JPMorgan Inflation Managed Bond Fund Class R6 Shares (a) | 40,738 | 910 | 1,473 | (59 | ) | (399 | ) | 39,717 | 3,925 | 910 | — | |||||||||||||||||||||||||
JPMorgan International Equity Fund Class R6 Shares (a) | 80,630 | 3,706 | 15,993 | 2,298 | 2,356 | 72,997 | 4,190 | 1,346 | — | |||||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class I Shares (a) | 157,511 | — | 143,929 | (1,423 | ) | (12,159 | ) | — | — | — | — | |||||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund Class R6 Shares (a) | — | 139,608 | 4,515 | (134 | ) | 18,241 | 153,200 | 8,349 | 1,877 | 1,601 | ||||||||||||||||||||||||||
JPMorgan International Unconstrained Equity Fund Class R6 Shares (a) | 33,729 | 2,360 | — | — | 1,217 | 37,306 | 1,822 | 314 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid America Fund Class R6 Shares (a) | 322,151 | 36,358 | 72,440 | 18,288 | 748 | 305,105 | 7,363 | 5,022 | 31,337 | |||||||||||||||||||||||||||
JPMorgan Intrepid European Fund Class L Shares (a) | 91,556 | 1,595 | 18,433 | (317 | ) | 2,192 | 76,593 | 2,902 | 1,596 | — | ||||||||||||||||||||||||||
JPMorgan Intrepid Growth Fund Class R6 Shares (a) | 96,834 | 852 | 25,267 | 15,989 | 3,469 | 91,877 | 1,549 | 852 | — | |||||||||||||||||||||||||||
JPMorgan Intrepid Mid Cap Fund Class R6 Shares (a) | 30,658 | 2,404 | 34,280 | 18,179 | (16,961 | ) | — | — | 326 | 2,079 | ||||||||||||||||||||||||||
JPMorgan Large Cap Growth Fund Class R6 Shares* (a) | 162,136 | 38,574 | 48,776 | 15,046 | 24,547 | 191,527 | 4,358 | — | 22,347 | |||||||||||||||||||||||||||
JPMorgan Large Cap Value Fund Class R6 Shares (a) | 175,420 | 16,017 | 20,238 | 2,753 | (6,254 | ) | 167,698 | 11,255 | 2,244 | 13,773 | ||||||||||||||||||||||||||
JPMorgan Latin America Fund Class R6 Shares* (a) | 7,995 | — | 8,782 | 606 | 181 | — | — | — | — | |||||||||||||||||||||||||||
JPMorgan Limited Duration Bond Fund Class R6 Shares (a) | 30,939 | 6,391 | — | — | (191 | ) | 37,139 | 3,721 | 722 | — | ||||||||||||||||||||||||||
JPMorgan Market Expansion Enhanced Index Fund Class I Shares (a) | 116,903 | 12,413 | 15,282 | 1,826 | 1,362 | 117,222 | 9,834 | 957 | 11,456 | |||||||||||||||||||||||||||
JPMorgan Mid Cap Growth Fund Class R6 Shares* (a) | 30,734 | 3,611 | 4,805 | 658 | 2,786 | 32,984 | 916 | — | 1,836 | |||||||||||||||||||||||||||
JPMorgan Multi-Cap Market Neutral Fund Class I Shares* (a) | 22,149 | — | 23,148 | 2,079 | (1,080 | ) | — | — | — | — | ||||||||||||||||||||||||||
JPMorgan Research Market Neutral Fund Class L Shares* (a) | 22,440 | 579 | — | — | (186 | ) | 22,833 | 1,511 | — | 580 | ||||||||||||||||||||||||||
JPMorgan Small Cap Value Fund Class R6 Shares (a) | 37,972 | 2,535 | 2,946 | 145 | 1,847 | 39,553 | 1,225 | 436 | 2,098 | |||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R5 Shares (a) | 28,170 | 275 | 28,864 | — | 419 | — | — | 275 | — | |||||||||||||||||||||||||||
JPMorgan Strategic Income Opportunities Fund Class R6 Shares (a) | — | 29,437 | — | — | (639 | ) | 28,798 | 2,487 | 573 | — | ||||||||||||||||||||||||||
JPMorgan Systematic Alpha Fund Class R6 Shares* (a) | 47,180 | 5,080 | — | — | (2,846 | ) | 49,414 | 3,403 | — | — | ||||||||||||||||||||||||||
JPMorgan U.S. Equity Fund Class R6 Shares (a) | 328,150 | 27,598 | 52,885 | 10,279 | 5,204 | 318,346 | 19,224 | 3,756 | 23,842 | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class IM Shares, 1.86% (a) (c) | — | 71,581 | 42,962 | — | — | 28,619 | 28,619 | 103 | — |
36 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
Table of Contents
Investor Growth & Income Fund (continued) |
| |||||||||||||||||||||||||||||||||||
For the year ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at June 30, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at June 30, 2018 | Shares at June 30, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares (a) | $ | 24,385 | $ | 245,615 | $ | 270,000 | $ | — | $ | — | $ | — | — | $ | 265 | $ | — | |||||||||||||||||||
JPMorgan Value Advantage Fund Class R6 Shares (a) | 55,015 | 1,245 | 5,431 | 924 | 2,295 | 54,048 | 1,518 | 710 | 535 | |||||||||||||||||||||||||||
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Total | $ | 2,966,584 | $ | 884,845 | $ | 1,064,080 | $ | 90,932 | $ | 7,425 | $ | 2,885,706 | $ | 52,322 | $ | 115,297 | ||||||||||||||||||||
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(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. |
(b) | Amount rounds to less than one thousand. |
(c) | The rate shown was the current yield as of June 30, 2018. |
* | Non-income producing security. |
C. 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. Distributions of net investment income and realized capital gains from the Underlying Funds are recorded on the ex-dividend date.
D. 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 Trust 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 are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class R6 | Class T | Total | |||||||||||||||||||
Investor Balanced Fund | ||||||||||||||||||||||||
Transfer agency fees | $ | 480 | $ | 50 | $ | 20 | $ | — | (a) | $ | — | (a) | $ | 550 | ||||||||||
Investor Conservative Growth Fund | ||||||||||||||||||||||||
Transfer agency fees | 241 | 42 | 16 | — | (a) | — | (a) | 299 | ||||||||||||||||
Investor Growth Fund | ||||||||||||||||||||||||
Transfer agency fees | 810 | 51 | 39 | 9 | — | (a) | 909 | |||||||||||||||||
Investor Growth & Income Fund | ||||||||||||||||||||||||
Transfer agency fees | 620 | 35 | 16 | — | (a) | — | (a) | 671 |
(a) | Amount rounds to less than one thousand. |
The Funds invest in other J.P. Morgan Funds and, as a result, bear a portion of the expenses incurred by the Underlying Funds. These expenses are not reflected in the expenses shown on the Statements of Operations and are not included in the ratios to average net assets shown on the Financial Highlights. Certain expenses of Underlying Funds are waived as described in Note 3.F.
E. 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 (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 June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
F. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid quarterly, except for distributions from the Investor Conservative Growth Fund, for which distributions are generally declared and paid monthly. 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.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 37 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The following amounts were reclassified within the capital accounts (amounts in thousands):
Paid-in-Capital | Accumulated net investment | Accumulated net realized gains (losses) | ||||||||||
Investor Balanced Fund | $ | — | $ | 18,402 | $ | (18,402 | ) | |||||
Investor Conservative Growth Fund | — | 6,820 | (6,820 | ) | ||||||||
Investor Growth Fund | — | 25,250 | (25,250 | ) | ||||||||
Investor Growth & Income Fund | — | 19,379 | (19,379 | ) |
The reclassifications for the Funds relate primarily to investments in regulated investment companies.
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to an Investment Advisory Agreement, the Adviser supervises the investments of each Fund and for such services is paid a fee. The fee is accrued daily and paid monthly at an annual rate of 0.05% of each Fund’s average daily net assets.
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
B. Administration Fee — Pursuant to an Administration Agreement, 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 0.10% of the first $500 million of the average daily net assets, 0.075% of the average daily net assets between $500 million and $1 billion of such funds and 0.05% of the average daily net assets in excess of $1 billion of such funds. For the year ended June 30, 2018, the effective rate was 0.06% 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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trust’s principal 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 T Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the 1940 Act. The Class I and Class R6 Shares do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class T | ||||||||||
0.25 | % | 0.75 | % | 0.25 | % |
In addition, JPMDS is entitled to receive the front-end sales charges from purchases of Class A and Class T Shares and the CDSC from redemptions of Class C Shares and certain Class A and Class T Shares for which front-end sales charges have been waived. For the year ended June 30, 2018, JPMDS retained the following amounts (in thousands):
Front-End Sales Charge | CDSC | |||||||
Investor Balanced Fund | $ | 420 | $ | 2 | ||||
Investor Conservative Growth Fund | 271 | 2 | ||||||
Investor Growth Fund | 167 | — | (a) | |||||
Investor Growth & Income Fund | 196 | — | (a) |
(a) | Amount rounds to less than one thousand. |
D. Service Fees — The Trust, on behalf of the Funds, has entered into a Shareholder Servicing Agreement with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service fee, that is accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets of each share class.
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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.
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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 in Interest income from affiliates on the Statement of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately 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 JPMDS 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 I | Class R6 | Class T | ||||||||||||||||
Investor Balanced Fund | 0.52 | % | 1.10 | % | 0.27 | % | 0.15 | % | 0.52 | % | ||||||||||
Investor Conservative Growth Fund | 0.52 | 1.10 | 0.27 | 0.15 | 0.52 | |||||||||||||||
Investor Growth Fund | 0.52 | 1.10 | 0.27 | 0.15 | 0.52 | |||||||||||||||
Investor Growth & Income Fund | 0.52 | 1.10 | 0.27 | 0.15 | 0.52 |
The contractual expense limitation percentages are in place until at least October 31, 2018.
The Underlying Funds may impose separate advisory and service fees. To avoid charging a service fee at an effective rate above 0.25% for Class A, Class C, Class I and Class T Shares, JPMDS will waive service fees with respect to the Funds in an amount equal to the weighted average pro-rata amount of service fees charged by the Underlying Funds up to 0.25% for Class A, Class C, Class I and Class T Shares. This waiver may be in addition to any waivers required to meet the Funds’ contractual expense limitations, but will not exceed the Funds’ service fees.
For the year ended June 30, 2018, 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 reimbursed expenses in future years.
Contractual Waivers | ||||||||||||||||||||
Investment Advisory Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Investor Balanced Fund | $ | 16 | $ | — | $ | 4,789 | $ | 4,805 | $ | — | (a) | |||||||||
Investor Conservative Growth Fund | 56 | 29 | 2,990 | 3,075 | — | (a) | ||||||||||||||
Investor Growth Fund | 172 | 134 | 3,505 | 3,811 | 7 | |||||||||||||||
Investor Growth & Income Fund | 13 | 2 | 3,683 | 3,698 | — | (a) |
(a) | Amount rounds to less than one thousand. |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 Fund’s investment in such affiliated money market fund.
The amounts of these waivers resulting from investments in these money market funds for the year ended June 30, 2018 were as follows (amounts in thousands):
Investor Balanced Fund | $ | 99 | ||
Investor Conservative Growth Fund | 72 | |||
Investor Growth Fund | 56 | |||
Investor Growth & Income Fund | 58 |
G. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. 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 Trust 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.
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 39 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
4. Investment Transactions
During the year ended June 30, 2018, 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) | |||||||
Investor Balanced Fund | $ | 462,838 | $ | 754,426 | ||||
Investor Conservative Growth Fund | 228,394 | 538,549 | ||||||
Investor Growth Fund | 302,788 | 282,501 | ||||||
Investor Growth & Income Fund | 312,659 | 496,128 |
During the year ended June 30, 2018, 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 investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Investor Balanced Fund | $ | 3,973,543 | $ | 837,564 | $ | 28,075 | $ | 809,489 | ||||||||
Investor Conservative Growth Fund | 3,125,030 | 409,953 | 38,807 | 371,146 | ||||||||||||
Investor Growth Fund | 1,962,272 | 753,112 | 10,837 | 742,275 | ||||||||||||
Investor Growth & Income Fund | 2,223,466 | 676,842 | 14,602 | 662,240 |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals.
The tax character of distributions paid during the year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term | Total Distributions Paid | ||||||||||
Investor Balanced Fund | $ | 91,248 | $ | 227,392 | $ | 318,640 | ||||||
Investor Conservative Growth Fund | 69,324 | 114,399 | 183,723 | |||||||||
Investor Growth Fund | 55,077 | 169,041 | 224,118 | |||||||||
Investor Growth & Income Fund | 62,233 | 175,284 | 237,517 |
* Short-term gain distributions are treated as ordinary income for income tax purposes.
The tax character of distributions paid during the year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term | Total Distributions Paid | ||||||||||
Investor Balanced Fund | $ | 79,573 | $ | 101,549 | $ | 181,122 | ||||||
Investor Conservative Growth Fund | 66,391 | 56,239 | 122,630 | |||||||||
Investor Growth Fund | 25,664 | 109,949 | 135,613 | |||||||||
Investor Growth & Income Fund | 41,702 | 90,552 | 132,254 |
* Short-term gain distributions are treated as ordinary income for income tax purposes.
As of June 30, 2018, 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) | ||||||||||
Investor Balanced Fund | $ | 5,658 | $ | 158,632 | $ | 809,489 | ||||||
Investor Conservative Growth Fund | 3,311 | 83,323 | 371,146 | |||||||||
Investor Growth Fund | 4,438 | 109,543 | 742,275 | |||||||||
Investor Growth & Income Fund | 4,820 | 111,853 | 662,240 |
The cumulative timing differences primarily consist of distributions payable and wash sale loss deferrals.
40 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
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As of June 30, 2018, the Funds did not have any net capital loss carryforwards.
6. Borrowings
The Funds rely upon an exemptive order granted by the Securities and Exchange Commission (“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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 Trust 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 5, 2018.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility during the year ended June 30, 2018.
The Trust, along with certain other trusts (“Borrowers”), has 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 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.
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. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
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.
As of June 30, 2018, the Funds had one affiliated omnibus account, which owned more than 10% of the respective Fund’s outstanding shares as follows:
Number of Affiliated Omnibus Accounts | % of the Fund | |||||||
Investor Balanced Fund | 4 | 83.9 | % | |||||
Investor Conservative Growth Fund | 3 | 86.7 | ||||||
Investor Growth Fund | 3 | 68.7 | ||||||
Investor Growth & Income Fund | 4 | 74.7 |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018
As of June 30, 2018, the Funds owned, in the aggregate, shares representing more than 10% of the net assets of the following Underlying Funds:
% of Net Assets | ||||
JPMorgan Research Market Neutral Fund | 53.8 | % | ||
JPMorgan Systematic Alpha Fund | 53.1 | |||
JPMorgan Limited Duration Bond Fund | 52.3 | |||
JPMorgan Market Expansion Enhanced Index Fund | 44.7 | |||
JPMorgan Intrepid Growth Fund | 41.3 | |||
JPMorgan Large Cap Value Fund | 34.7 | |||
JPMorgan Intrepid European Fund | 34.0 | |||
JPMorgan Income Fund | 28.2 | |||
JPMorgan Intrepid America Fund | 28.0 | |||
JPMorgan International Unconstrained Equity Fund | 20.7 | |||
JPMorgan Inflation Managed Bond Fund | 14.3 | |||
JPMorgan Floating Rate Income Fund | 14.0 | |||
JPMorgan International Research Enhanced Equity Fund | 13.5 | |||
JPMorgan Emerging Economies Fund | 10.6 | |||
JPMorgan Commodities Strategy Fund | 10.3 |
Because of the Funds’ investments in Underlying Funds, the Funds indirectly pay a portion of the expenses incurred by the Underlying Funds. As a result, the cost of investing in the Funds may be higher than the cost of investing in a mutual fund that invests directly in individual securities and financial instruments. The Funds are also subject to certain risks related to the Underlying Funds’ investments in securities and financial instruments such as fixed income securities, including high yield, asset-backed and mortgage-related securities, equity securities, foreign and emerging markets securities, commodities and real estate securities. These securities are subject to risks specific to their structure, sector or market.
In addition, the Underlying Funds may use derivative instruments in connection with their individual investment strategies including futures contracts, forward foreign currency exchange contracts, options, swaps and other derivatives, which are also subject to specific risks related to their structure, sector or market and may be riskier than investments in other types of securities. Specific risks and concentrations present in the Underlying Funds are disclosed within their individual financial statements and registration statements, as appropriate.
8. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of JPMorgan Trust II and Shareholders of JPMorgan Investor Balanced Fund, JPMorgan Investor Conservative Growth Fund, JPMorgan Investor Growth Fund and JPMorgan Investor Growth & Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Investor Balanced Fund, JPMorgan Investor Conservative Growth Fund, JPMorgan Investor Growth Fund and JPMorgan Investor Growth & Income Fund (four of the funds constituting JPMorgan Trust II, hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees | ||||||
John F. Finn (1947); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1998. | Chairman (1985-present), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trust since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
Dr. Matthew Goldstein (1941); Chairman since 2013; Trustee of Trust 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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trust since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | None | |||
Frankie D. Hughes (1952); Trustee of Trust 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). | 135 | None | |||
Raymond Kanner** (1953); Trustee of Trust since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present). |
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Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Peter C. Marshall (1942); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | None | |||
Mary E. Martinez (1960); Trustee of Trust 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). | 135 | None | |||
Marilyn McCoy*** (1948); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1999. | Vice President of Administration and Planning, Northwestern University (1985-present). | 135 | None | |||
Mitchell M. Merin (1953); Trustee of Trust since 2013. | Retired; President and Chief Operating Officer, Morgan Stanley Investment Management, Member Morgan Stanley & Co. Management Committee (registered investment adviser) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
Dr. Robert A. Oden, Jr. (1946); Trustee of Trust since 2005; Trustee of heritage One Group Mutual Funds since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
Marian U. Pardo**** (1946); Trustee of Trust since 2013. | Managing Director and Founder, Virtual Capital Management LLC (Investment Consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
James J. Schonbachler (1943); Trustee of Trust since 2005; Trustee of heritage J.P. Morgan Funds since 2001. | Retired; Managing Director of Bankers Trust Company (financial services) (1968-1998). | 135 | None |
(1) | The Trustees serve for an indefinite term, subject to the Trust’s 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 eleven registered investment companies (135 funds). |
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TRUSTEES
(Unaudited) (continued)
* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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 Trust (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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 47 |
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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 (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 (not including expenses of the Underlying 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, January 1, 2018 and continued to hold your shares at the end of the reporting period, June 30, 2018.
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, and expenses of the Underlying Funds. 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 January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Investor Balanced Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 999.40 | $ | 2.58 | 0.52 | % | ||||||||
Hypothetical | 1,000.00 | 1,022.22 | 2.61 | 0.52 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 996.50 | 5.45 | 1.10 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.34 | 5.51 | 1.10 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,001.30 | 1.34 | 0.27 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.46 | 1.35 | 0.27 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,001.50 | 0.55 | 0.11 | ||||||||||||
Hypothetical | 1,000.00 | 1,024.25 | 0.55 | 0.11 | ||||||||||||
JPMorgan Investor Conservative Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 995.10 | 2.57 | 0.52 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.22 | 2.61 | 0.52 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 992.20 | 5.43 | 1.10 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.34 | 5.51 | 1.10 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 996.40 | 1.34 | 0.27 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.46 | 1.35 | 0.27 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 997.00 | 0.69 | 0.14 | ||||||||||||
Hypothetical | 1,000.00 | 1,024.10 | 0.70 | 0.14 |
48 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
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Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Investor Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,005.90 | $ | 2.59 | 0.52 | % | ||||||||
Hypothetical | 1,000.00 | 1,022.22 | 2.61 | 0.52 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,003.10 | 5.46 | 1.10 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.34 | 5.51 | 1.10 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,007.50 | 1.34 | 0.27 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.46 | 1.35 | 0.27 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,007.70 | 0.75 | 0.15 | ||||||||||||
Hypothetical | 1,000.00 | 1,024.05 | 0.75 | 0.15 | ||||||||||||
JPMorgan Investor Growth & Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,003.90 | 2.58 | 0.52 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.22 | 2.61 | 0.52 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,001.70 | 5.46 | 1.10 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.34 | 5.51 | 1.10 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,005.80 | 1.34 | 0.27 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.46 | 1.35 | 0.27 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,005.90 | 0.70 | 0.14 | ||||||||||||
Hypothetical | 1,000.00 | 1,024.10 | 0.70 | 0.14 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
JUNE 30, 2018 | J.P. MORGAN INVESTOR FUNDS | 49 |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deductions | ||||
JPMorgan Investor Balanced Fund | 26.24 | % | ||
JPMorgan Investor Conservative Growth Fund | 15.34 | |||
JPMorgan Investor Growth Fund | 38.82 | |||
JPMorgan Investor Growth & Income Fund | 30.68 |
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 June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Investor Balanced Fund | $ | 227,391 | ||
JPMorgan Investor Conservative Growth Fund | 114,399 | |||
JPMorgan Investor Growth Fund | 169,041 | |||
JPMorgan Investor Growth & Income Fund | 175,284 |
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 June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Investor Balanced Fund | $ | 59,182 | ||
JPMorgan Investor Conservative Growth Fund | 31,083 | |||
JPMorgan Investor Growth Fund | 42,354 | |||
JPMorgan Investor Growth & Income Fund | 39,555 |
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended June 30, 2018, the Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses cannot be quantified until Underlying Funds complete reporting for the calendar year in progress. Amounts for the fiscal year ended June 30, 2018 will be disclosed in the semiannual report for the period ended December 31, 2018.
50 | J.P. MORGAN INVESTOR FUNDS | JUNE 30, 2018 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-INV-618 |
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Annual Report
J.P. Morgan Intrepid Funds
June 30, 2018
JPMorgan Intrepid America Fund
JPMorgan Intrepid Growth Fund
JPMorgan Intrepid Mid Cap Fund
JPMorgan Intrepid Sustainable Equity Fund
JPMorgan Intrepid Value Fund
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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’ prospectuses 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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August 1, 2018 (Unaudited)
Dear Shareholder,
The U.S. economy largely outpaced growth in other developed market nations during the twelve months ended June 30, 2018, and U.S. equity markets provided strong returns on the back of record corporate profits and historically low interest rates.
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“Corporate earnings for the first and second quarters of 2018 reached record highs, with a sizeable majority of companies reporting better-than-expected results.” — George C.W. Gatch |
During the first half of the reporting period, synchronized global economic growth helped the U.S. economy achieve its second-longest expansion on record. By the final months of 2017, U.S. unemployment had fallen to 4.1% and U.S. consumer confidence rose to its highest levels in nearly 17 years. Notably, U.S. equity prices climbed to record highs in every month from June through December and financial market volatility remained at historically low levels. In response to a tightening labor market and early signs of inflationary pressure, the U.S. Federal Reserve (the “Fed”) raised interest rates in December 2017.
In January 2018, U.S. equity prices continued to rise, aided somewhat by recently-enacted tax cut legislation. The Standard & Poor’s 500 Index (the “S&P 500”) reached fourteen record closing highs during the month, the last on January 26th.
Early February 2018 was marked by a sharp sell-off in both equities and bonds in the U.S., and the selling quickly spread to other financial markets. Stronger-than-expected economic data sparked investor fears of rapidly rising inflation and accelerated interest rate increases by the Fed. Over several days, the S&P 500 lost more than 10% of its value, a decline that was one of the fastest peak-to-trough drops in the history of the index. The sell-off in bonds led to a spike in yields on benchmark 10-year U.S. Treasury bonds that further roiled markets.
While U.S. equity prices had rebounded somewhat by the end of the reporting period, leading equity indexes never fully recovered. Financial market volatility rose sharply during the February sell-off and remained elevated through June 2018.
Meanwhile, the U.S. economy continued to expand in 2018, even as signs emerged of economic sluggishness in Europe and weakness in select emerging market nations. U.S. GDP rose 2.2% in the first quarter before jumping an estimated 4.1% in the second quarter, the largest increase in nearly four years. Corporate earnings for the first and second quarters of 2018 reached record levels, with a sizeable majority of companies reporting better-than-expected results. In response, the Fed raised interest rates again in March and June.
However, the U.S. imposition of import tariffs on billions of dollars’ worth of goods, and reciprocal trade sanctions from China and other leading U.S. trading partners, increasingly weighed on global financial markets in the first half of 2018. The economies of China, Japan, the European Union and the U.K. are more dependent on exports than the U.S., and the impact of a potentially escalating trade war on the global economy remained a concern among policy makers, economists and investors.
At the end of the reporting period, the world’s leading economies appeared to be on pace for continued, moderate growth. The outlook for corporate earnings remained positive amid tame inflationary pressure, historically low interest rates and buoyant consumer demand. While the Fed was further along in its monetary tightening cycle than its counterparts in other developed markets, the European Central Bank, the Bank of England and the Bank of Japan were all moving in some measure to reduce economic stimulus.
We believe that investors who hold a properly diversified portfolio and a long-term outlook may benefit from a largely positive environment for economic growth and financial markets. 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, Global Funds Management
J.P. Morgan Asset Management
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 1 |
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J.P. Morgan Intrepid Funds
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
Global equity markets provided strong positive returns for the reporting period, with U.S. equities largely outperforming developed market and emerging market equities.
Overall, equity prices were supported by synchronized global growth, rising corporate profits and accommodative policies from leading central banks. While the U.S. Federal Reserve raised interest rates twice during the first half of 2018, interest rates remained relatively low by historical standards. The Standard & Poor’s 500 Index (the “S&P 500”) reached record high closings in every month from July 2017 through January 2018.
In early February 2018, both equity and bond prices fell sharply. The S&P 500 lost more than 10% of its value over nine trading sessions and yields on 10-year U.S. Treasury bonds, which serve as a benchmark for a broad range of financial assets, spiked higher. While equity markets rebounded somewhat in subsequent weeks, financial market volatility remained elevated through June 2018.
Overall, growth stocks generally outperformed value stocks and small cap stocks slightly outperformed large cap and mid cap stocks. For the twelve months ended June 30, 2018, the S&P 500 returned 14.37%.
Intrepid Investment Philosophy and Process
The JPMorgan Behavioral Finance Team employs a philosophy that is rooted in behavioral finance, a field of study that emphasizes the importance of human psychology in financial markets. Behavioral finance examines how investor behavior can be affected by emotional biases and reactions. The field theorizes that inefficiencies arise in the stock market because investors are consistently irrational in making many investment decisions.
The Team aims to capitalize on these market inefficiencies by targeting high quality, attractively valued stocks of companies that it believes have positive momentum characteristics, and looks to sell these stocks when they no longer exhibit these criteria. A disciplined quantitative ranking methodology is utilized to identify attractive stocks in each sector, a process that is combined with qualitative research and value-added trading.
The Intrepid Sustainable Equity Fund also incorporates environmental, social and corporate governance (ESG) practices into its investment process. In managing the Fund, the adviser identifies companies that, in the adviser’s opinion, generally approach ESG practices in a thoughtful manner while also having attractive value, quality and momentum characteristics. The Fund seeks to invest in companies that, on a combined basis, appear attractive when considering all of these financial and sustainability characteristics.
During the reporting period, the Funds were managed and positioned in accordance with these investment philosophies and processes.
2 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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JPMorgan Intrepid America Fund
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 18.06% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $4,050,543 |
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid America Fund (the “Fund”) seeks to provide long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the energy and industrials sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the information technology and consumer discretionary sectors was a leading detractor from relative performance.
Leading individual contributors to the Fund’s relative performance included its overweight positions in Boeing Co. and Valero Energy Corp., and its underweight position in General Electric Co. Shares of Boeing, a commercial aircraft manufacturer, rose amid growth in new orders and continued earnings growth. Shares of Valero Energy, a petrochemicals manufacturer, rose after the company reported better-than-expected earnings for the first quarter of 2018. Shares of General Electric, an industrial conglomerate not held in the Fund, fell amid the company’s restructuring efforts and in June 2018, the stock was removed from the Dow Jones Industrial Average after 111 consecutive years on the index.
Leading individual detractors from the Fund’s relative performance included its overweight position in Ebay Inc., and its underweight positions in Amazon.com Inc. and Netflix.com Inc. Shares of eBay, an Internet marketplace provider, fell after the company reported lower-than-expected revenue for the first quarter of 2018 and issued a weaker-than-expected forecast. Shares of Amazon.com, an Internet retailer, rose with continued growth in sales, earnings and market share. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Microsoft Corp. | 4.3 | % | |||||
2. | Boeing Co. (The) | 2.7 | ||||||
3. | Apple, Inc. | 2.7 | ||||||
4. | Anthem, Inc. | 2.2 | ||||||
5. | Humana, Inc. | 2.2 | ||||||
6. | Bank of America Corp. | 2.1 | ||||||
7. | Caterpillar, Inc. | 2.1 | ||||||
8. | Valero Energy Corp. | 2.0 | ||||||
9. | Citigroup, Inc. | 1.9 | ||||||
10. | Applied Materials, Inc. | 1.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 25.8 | % | ||
Financials | 13.8 | |||
Health Care | 13.6 | |||
Consumer Discretionary | 12.6 | |||
Industrials | 9.3 | |||
Consumer Staples | 6.3 | |||
Energy | 6.3 | |||
Materials | 2.6 | |||
Real Estate | 2.5 | |||
Utilities | 2.4 | |||
Telecommunication Services | 2.3 | |||
Short-Term Investments | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 3 |
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JPMorgan Intrepid America Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 19, 2005 | |||||||||||||
With Sales Charge* | 11.62 | % | 11.67 | % | 8.84 | % | ||||||||
Without Sales Charge | 17.80 | 12.88 | 9.42 | |||||||||||
CLASS C SHARES | February 19, 2005 | |||||||||||||
With CDSC** | 16.17 | 12.32 | 8.88 | |||||||||||
Without CDSC | 17.17 | 12.32 | 8.88 | |||||||||||
CLASS I SHARES | February 28, 2003 | 18.06 | 13.19 | 9.71 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 17.50 | 12.61 | 9.17 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 18.26 | 13.39 | 9.92 | ||||||||||
CLASS R6 SHARES | November 2, 2015 | 18.38 | 13.46 | 9.95 |
* | 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 (6/30/08 TO 6/30/18)
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 their 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 their 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 Class I Shares of the JPMorgan Intrepid America Fund, the S&P 500 Index, the Lipper Large-Cap Core Funds Index and the Lipper Multi-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 500 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 Large-Cap Core Funds Index and the Lipper 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The Lipper Large-Cap Core Funds Index and the Lipper Multi-Cap Core Funds Index are indexes based on the total returns of certain mutual funds within the Fund’s designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
4 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 22.47% | |||
Russell 1000 Growth Index | 22.51% | |||
Net Assets as of 6/30/2018 (In Thousands) | $1,169,594 |
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid Growth Fund (the “Fund”) seeks to provide long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the Russell 1000 Growth Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the consumer discretionary and real estate sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the health care and energy sectors was a leading contributor to relative performance.
Leading individual detractors from the Fund’s relative performance included the Fund’s underweight positions in Netflix.com Inc. and Amazon.com Inc. and its overweight position in Ebay Inc. Shares of Netflix, a provider of online entertainment, rose amid growth in subscriptions and revenue. Shares of Amazon.com, an Internet retailer, rose with continued growth in sales, earnings and market share. Shares of eBay, an Internet marketplace provider, fell after the company reported lower-than-expected revenue for the first quarter of 2018 and issued a weaker-than-expected forecast.
Leading individual contributors to relative performance included the Fund’s overweight positions in Boeing Co., Align Technology Inc. and VMware Inc. Shares of Boeing, a commercial aircraft manufacturer, rose amid growth in new orders and continued earnings growth. Shares of Align Technology, a maker of dental devices, rose after the company raised its revenue growth target and increased its share repurchase program. Shares of VMware, a provider of data cloud software, rose after the company reported strong growth in quarterly earnings and revenue in 2017 and 2018.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Microsoft Corp. | 6.8 | % | |||||
2. | Apple, Inc. | 5.6 | ||||||
3. | Amazon.com, Inc. | 4.4 | ||||||
4. | Visa, Inc., Class A | 3.4 | ||||||
5. | Boeing Co. (The) | 3.3 | ||||||
6. | Amgen, Inc. | 2.2 | ||||||
7. | Humana, Inc. | 2.2 | ||||||
8. | Caterpillar, Inc. | 2.1 | ||||||
9. | Applied Materials, Inc. | 2.0 | ||||||
10. | VMware, Inc., Class A | 1.9 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 41.3 | % | ||
Consumer Discretionary | 17.5 | |||
Health Care | 12.7 | |||
Industrials | 11.0 | |||
Consumer Staples | 5.4 | |||
Financials | 3.2 | |||
Real Estate | 2.2 | |||
Energy | 2.0 | |||
Materials | 1.6 | |||
Others (each less than 1.0%) | 0.7 | |||
Short-Term Investments | 2.4 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 5 |
Table of Contents
JPMorgan Intrepid Growth Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 19, 2005 | |||||||||||||
With Sales Charge* | 15.75 | % | 14.36 | % | 10.37 | % | ||||||||
Without Sales Charge | 22.16 | 15.60 | 10.97 | |||||||||||
CLASS C SHARES | February 19, 2005 | |||||||||||||
With CDSC** | 20.55 | 15.03 | 10.42 | |||||||||||
Without CDSC | 21.55 | 15.03 | 10.42 | |||||||||||
CLASS I SHARES | February 28, 2003 | 22.47 | 15.90 | 11.25 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 21.84 | 15.32 | 10.70 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 22.66 | 16.12 | 11.47 | ||||||||||
CLASS R6 SHARES | November 2, 2015 | 22.78 | 16.15 | 11.49 |
* | 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 (6/30/08 TO 6/30/18)
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 their 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 their 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 Class I Shares of the JPMorgan Intrepid Growth Fund, the Russell 1000 Growth Index, the Lipper Large-Cap Growth Funds Index and the Lipper Multi-Cap Growth Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 1000 Growth Index does not reflect the deduction of expenses or a sales charge
associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Large-Cap Growth Funds Index and the Lipper Multi-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 1000 Growth Index is an unmanaged index which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Large-Cap Growth Funds Index and the Lipper Multi-Cap Growth Funds Index are indexes based on the total returns of certain mutual funds within the Fund’s designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
6 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 11.47% | |||
Russell Midcap Index | 12.33% | |||
Net Assets as of 6/30/2018 (In Thousands) | $816,523 |
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid Mid Cap Fund (the “Fund”) seeks long-term capital growth by investing primarily in equity securities of companies with intermediate capitalizations.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the Russell Midcap Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the software & services sector and the health services & systems sector was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the finance and utilities sectors was a leading positive contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Xerox Corp., Berry Global Group Inc. and Copa Holdings SA. Shares of Xerox, a maker of copiers and other imaging products, fell after the company called off its proposed merger with Fujifilm Holdings Corp. Shares of Berry Global Group, a packaging and specialty materials manufacturer, fell after the company reported lower-than-expected earnings for its fiscal second quarter amid lower volumes in its engineered materials business. Shares of Copa Holdings, an airline based in Panama, fell on investor concerns about rising fuel prices and the negative impact of a stronger U.S. dollar during the reporting period.
Leading individual contributors to relative performance included the Fund’s overweight positions in NRG Energy Inc., LPL Financial Holdings Inc., and MSCI Inc. Shares of NRG Energy, an electric utility, rose after the company unveiled plans to sell off assets to cut recurring costs and reduce debt. Shares of LPL Financial Holdings, a brokerage and financial advisory services provider, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018. Shares of MSCI, a provider of financial market indexes and analytics, rose as the company benefitted from growth in its market share in the passive investment and analytics businesses.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Urban Outfitters, Inc. | 2.1 | % | |||||
2. | Vistra Energy Corp. | 2.0 | ||||||
3. | LPL Financial Holdings, Inc. | 1.9 | ||||||
4. | Jacobs Engineering Group, Inc. | 1.8 | ||||||
5. | Equinix, Inc. | 1.5 | ||||||
6. | DXC Technology Co. | 1.4 | ||||||
7. | Popular, Inc. (Puerto Rico) | 1.4 | ||||||
8. | Ingersoll-Rand plc | 1.4 | ||||||
9. | NRG Energy, Inc. | 1.4 | ||||||
10. | Marvell Technology Group Ltd. | 1.4 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 19.8 | % | ||
Industrials | 15.2 | |||
Financials | 13.4 | |||
Consumer Discretionary | 11.6 | |||
Health Care | 9.2 | |||
Real Estate | 8.8 | |||
Utilities | 6.0 | |||
Materials | 5.2 | |||
Energy | 4.8 | |||
Consumer Staples | 4.2 | |||
Telecommunication Services | 0.9 | |||
Short-Term Investments | 0.9 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 7 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | May 1, 1992 | |||||||||||||
With Sales Charge* | 5.32 | % | 10.01 | % | 8.44 | % | ||||||||
Without Sales Charge | 11.18 | 11.20 | 9.03 | |||||||||||
CLASS C SHARES | March 22, 1999 | |||||||||||||
With CDSC** | 9.63 | 10.53 | 8.35 | |||||||||||
Without CDSC | 10.63 | 10.53 | 8.35 | |||||||||||
CLASS I SHARES | June 1, 1991 | 11.47 | 11.47 | 9.30 | ||||||||||
CLASS R3 SHARES | September 9, 2016 | 11.22 | 11.20 | 9.03 | ||||||||||
CLASS R4 SHARES | September 9, 2016 | 11.46 | 11.46 | 9.30 | ||||||||||
CLASS R6 SHARES | November 2, 2015 | 11.73 | 11.62 | 9.38 |
* | 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 (6/30/08 TO 6/30/18)
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 R3 Shares prior to their inception date are based on the performance of Class A Shares. The actual returns for Class R3 Shares would have been similar to those shown because Class R3 Shares have similar expenses to those of Class A Shares.
Returns for Class R4 Shares and Class R6 Shares prior to their inception dates are based on the performance of Class I Shares. The actual returns for Class R4 Shares would have been similar to those shown for Class I Shares because Class R4 Shares have similar expenses to Class I Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class I Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Intrepid Mid Cap Fund, the Russell Midcap Index and the Lipper Mid-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 Russell Midcap Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Mid-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell Midcap Index is an unmanaged index which measures the performance of the 800 smallest companies of the Russell 1000 Index. The Lipper Mid-Cap Core Funds Index is an index based on 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 I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
8 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 12.16% | |||
S&P 500 Index | 14.37% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 21,946 |
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid Sustainable Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the S&P 500 Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the consumer discretionary and the consumer staples sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s underweight position in the real estate sector and its security selection in the utilities sector were leading contributors to relative performance.
Leading individual detractors from performance relative to the Benchmark included the Fund’s underweight position in Amazon.com Inc. and its overweight positions in Oracle Corp. and Walgreens Boots Alliance Inc. Shares of Amazon.com, an Internet retailer not held in the Fund, rose with continued growth in sales, earnings and market share. Shares of Oracle, a database software provider, fell after the company reported weak growth in its cloud computing business. Shares of Walgreens Boots Alliance, a retail and wholesale pharmacy chain, fell amid investor concerns that its wholesale pharmacy business would lose market share to Amazon.com Inc.
Leading individual contributors to performance relative to the Benchmark included the Fund’s underweight position in General Electric Co. and its overweight positions in Keurig Dr. Pepper Inc. and Humana Inc. Shares of General Electric, an industrial conglomerate not held in the Fund, fell amid the company’s restructuring efforts and in June 2018 the stock was removed from the Dow Jones Industrial Average after 111 consecutive years on the index. Shares of Keurig Dr. Pepper, a soft drinks maker, rose ahead of its acquisition by Keurig Co. in January 2018. Shares of Humana, a health insurance provider, rose after the company reported better-than-expected earnings and revenue for the first quarter of 2018.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Apple, Inc. | 6.3 | % | |||||
2. | Microsoft Corp. | 5.9 | ||||||
3. | Citigroup, Inc. | 3.4 | ||||||
4. | Cisco Systems, Inc. | 2.6 | ||||||
5. | Home Depot, Inc. (The) | 2.5 | ||||||
6. | Humana, Inc. | 2.5 | ||||||
7. | Verizon Communications, Inc. | 2.4 | ||||||
8. | PepsiCo, Inc. | 2.2 | ||||||
9. | Bank of America Corp. | 2.1 | ||||||
10. | Lowe’s Cos., Inc. | 2.0 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Information Technology | 26.8 | % | ||
Financials | 14.7 | |||
Consumer Discretionary | 12.2 | |||
Health Care | 12.1 | |||
Consumer Staples | 7.3 | |||
Energy | 7.0 | |||
Industrials | 5.4 | |||
Telecommunication Services | 4.3 | |||
Utilities | 2.9 | |||
Materials | 2.2 | |||
Real Estate | 0.7 | |||
Short-Term Investments | 4.4 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 9 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 19, 2005 | |||||||||||||
With Sales Charge* | 6.01 | % | 11.17 | % | 8.56 | % | ||||||||
Without Sales Charge | 11.88 | 12.38 | 9.14 | |||||||||||
CLASS C SHARES | February 19, 2005 | |||||||||||||
With CDSC** | 10.32 | 11.81 | 8.60 | |||||||||||
Without CDSC | 11.32 | 11.81 | 8.60 | |||||||||||
CLASS I SHARES | February 28, 2003 | 12.16 | 12.66 | 9.42 |
* | 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 (6/30/08 TO 6/30/18)
The performance quoted is past performance and is not a guarantee of future results. Mutual funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. For up-to-date month-end performance information please call 1-800-480-4111.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Intrepid Sustainable Equity Fund, the S&P 500 Index and the Lipper Large-Cap Core Funds Index from June 30, 2008 to June 30, 2018. 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 S&P 500 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 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 S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The Lipper 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 I 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. 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.
Effective November 1, 2016, the Fund changed its investment strategies. Although past performance is not necessarily an indication of how the Fund will perform in the future, in view of these changes, the Fund’s performance record prior to this date might be less relevant for investors considering whether to purchase shares of the Fund.
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.
10 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 13.65% | |||
Russell 1000 Value Index | 6.77% | |||
Net Assets as of 6/30/2018 (In Thousands) | $ | 1,097,863 |
INVESTMENT OBJECTIVE**
The JPMorgan Intrepid Value Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the Russell 1000 Value Index (the “Benchmark”) for the twelve months ended June 30, 2018. The Fund’s security selection in the energy and industrials sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the financials and real estate sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Boeing Co. and Valero Energy Co. and its underweight position in General Electric Co. Shares of Boeing, a commercial aircraft manufacturer not held in the Benchmark, rose amid growth in new orders and continued earnings growth. Shares of Valero Energy, a petrochemicals manufacturer, rose after the company reported better-than-expected earnings for the first quarter of 2018. Shares of General Electric, an industrial conglomerate not held in the Fund, fell amid the company’s restructuring efforts and in June 2018, the stock was removed from the Dow Jones Industrial Average after 111 consecutive years on the index.
Leading individual detractors from relative performance included the Fund’s overweight positions in Allergan PLC and Assured Guaranty Ltd., and its underweight position in Intel Corp. Shares of Allergan, a drug maker, fell after the company lost its legal battle to protect its dry eye medication from competition by generic formulations of the drug. Shares of Assured Guaranty, a bond insurer, fell amid investor concerns about a potential default on bonds issued by Puerto Rico. Shares of Intel, a semiconductor maker not held by the Fund, rose amid gains in the broader semiconductor sector.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Bank of America Corp. | 3.6 | % | |||||
2. | Citigroup, Inc. | 3.2 | ||||||
3. | ConocoPhillips | 2.6 | ||||||
4. | Valero Energy Corp. | 2.2 | ||||||
5. | Travelers Cos., Inc. (The) | 2.1 | ||||||
6. | Humana, Inc. | 2.1 | ||||||
7. | Boeing Co. (The) | 2.0 | ||||||
8. | Pfizer, Inc. | 2.0 | ||||||
9. | Amgen, Inc. | 2.0 | ||||||
10. | Verizon Communications, Inc. | 2.0 |
PORTFOLIO COMPOSITION BY SECTOR*** | ||||
Financials | 22.2 | % | ||
Health Care | 13.3 | |||
Energy | 10.8 | |||
Consumer Discretionary | 10.4 | |||
Information Technology | 10.2 | |||
Industrials | 7.3 | |||
Consumer Staples | 7.0 | |||
Real Estate | 4.6 | |||
Utilities | 4.6 | |||
Materials | 3.2 | |||
Telecommunication Services | 2.0 | |||
Short-Term Investments | 4.4 |
* | 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 June 30, 2018. The Fund’s portfolio composition is subject to change. |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 11 |
Table of Contents
JPMorgan Intrepid Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED JUNE 30, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 19, 2005 | |||||||||||||
With Sales Charge* | 7.43 | % | 9.18 | % | 7.80 | % | ||||||||
Without Sales Charge | 13.39 | 10.36 | 8.38 | |||||||||||
CLASS C SHARES | February 19, 2005 | |||||||||||||
With CDSC** | 11.84 | 9.81 | 7.85 | |||||||||||
Without CDSC | 12.84 | 9.81 | 7.85 | |||||||||||
CLASS I SHARES | February 28, 2003 | 13.65 | 10.54 | 8.58 | ||||||||||
CLASS R2 SHARES | November 3, 2008 | 13.08 | 10.07 | 8.12 | ||||||||||
CLASS R5 SHARES | May 15, 2006 | 13.84 | 10.76 | 8.79 | ||||||||||
CLASS R6 SHARES | November 30, 2010 | 13.90 | 10.82 | 8.84 |
* | 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 (6/30/08 TO 6/30/18)
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 their 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 their 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 Class I Shares of the JPMorgan Intrepid Value Fund, the Russell 1000 Value Index, the Lipper Large-Cap Value Funds Index and the Lipper Multi-Cap Value Funds Index from June 30, 2008 to June 30, 2018. 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 Russell 1000 Value Index does not reflect the deduction of expenses or a sales charge associated
with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Large-Cap Value Funds Index and the Lipper Multi-Cap Value Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The Russell 1000 Value Index is an unmanaged index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Lipper Large-Cap Value Funds Index and the Lipper Multi-Cap Value Funds Index are indexes based on the total returns of certain mutual funds within the Fund’s designated categories as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I 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. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
12 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid America Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.8% |
| |||||||
Aerospace & Defense — 2.7% | ||||||||
Boeing Co. (The) | 330 | 110,819 | ||||||
|
| |||||||
Air Freight & Logistics — 0.1% | ||||||||
Expeditors International of Washington, Inc. | 32 | 2,317 | ||||||
|
| |||||||
Airlines — 1.2% | ||||||||
Copa Holdings SA, Class A (Panama) | 221 | 20,920 | ||||||
Delta Air Lines, Inc. | 560 | 27,745 | ||||||
|
| |||||||
48,665 | ||||||||
|
| |||||||
Automobiles — 0.9% | ||||||||
General Motors Co. | 924 | 36,390 | ||||||
|
| |||||||
Banks — 5.7% | ||||||||
Bank of America Corp. | 3,101 | 87,415 | ||||||
Citigroup, Inc. | 1,179 | 78,865 | ||||||
Comerica, Inc. | 300 | 27,267 | ||||||
Fifth Third Bancorp | 348 | 9,973 | ||||||
Regions Financial Corp. | 1,648 | 29,296 | ||||||
|
| |||||||
232,816 | ||||||||
|
| |||||||
Beverages — 1.2% | ||||||||
PepsiCo, Inc. | 456 | 49,667 | ||||||
|
| |||||||
Biotechnology — 4.9% | ||||||||
AbbVie, Inc. | 525 | 48,604 | ||||||
Amgen, Inc. | 391 | 72,257 | ||||||
Gilead Sciences, Inc. | 832 | 58,917 | ||||||
Vertex Pharmaceuticals, Inc.* | 106 | 18,084 | ||||||
|
| |||||||
197,862 | ||||||||
|
| |||||||
Capital Markets — 3.7% | ||||||||
Ameriprise Financial, Inc. | 149 | 20,786 | ||||||
Moody’s Corp. | 155 | 26,488 | ||||||
Morgan Stanley | 198 | 9,399 | ||||||
MSCI, Inc. | 190 | 31,432 | ||||||
S&P Global, Inc. | 299 | 60,861 | ||||||
|
| |||||||
148,966 | ||||||||
|
| |||||||
Chemicals — 0.8% | ||||||||
CF Industries Holdings, Inc. | 146 | 6,483 | ||||||
Huntsman Corp. | 886 | 25,877 | ||||||
|
| |||||||
32,360 | ||||||||
|
| |||||||
Communications Equipment — 2.0% | ||||||||
Cisco Systems, Inc. | 825 | 35,517 | ||||||
F5 Networks, Inc.* | 137 | 23,608 | ||||||
Palo Alto Networks, Inc.* | 113 | 23,280 | ||||||
|
| |||||||
82,405 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Construction & Engineering — 0.3% | ||||||||
EMCOR Group, Inc. | 149 | 11,320 | ||||||
|
| |||||||
Consumer Finance — 0.7% | ||||||||
Credit Acceptance Corp.* | 84 | 29,624 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.3% |
| |||||||
AT&T, Inc. | 1,875 | 60,190 | ||||||
Verizon Communications, Inc. | 649 | 32,646 | ||||||
|
| |||||||
92,836 | ||||||||
|
| |||||||
Electric Utilities — 0.9% | ||||||||
NextEra Energy, Inc. | 225 | 37,515 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 1.7% |
| |||||||
American Tower Corp. | 283 | 40,858 | ||||||
Prologis, Inc. | 61 | 4,020 | ||||||
SBA Communications Corp.* | 153 | 25,263 | ||||||
|
| |||||||
70,141 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.3% | ||||||||
Walmart, Inc. | 606 | 51,930 | ||||||
|
| |||||||
Food Products — 2.5% | ||||||||
Archer-Daniels-Midland Co. | 688 | 31,527 | ||||||
General Mills, Inc. | 188 | 8,303 | ||||||
Ingredion, Inc. | 179 | 19,815 | ||||||
Pilgrim’s Pride Corp.* | 785 | 15,800 | ||||||
Post Holdings, Inc.* | 310 | 26,632 | ||||||
|
| |||||||
102,077 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 1.5% | ||||||||
Baxter International, Inc. | 806 | 59,530 | ||||||
|
| |||||||
Health Care Providers & Services — 6.6% | ||||||||
Anthem, Inc. | 369 | 87,833 | ||||||
Centene Corp.* | 172 | 21,242 | ||||||
Express Scripts Holding Co.* | 58 | 4,509 | ||||||
HCA Healthcare, Inc. | 159 | 16,313 | ||||||
Humana, Inc. | 294 | 87,444 | ||||||
Molina Healthcare, Inc.* | 324 | 31,713 | ||||||
WellCare Health Plans, Inc.* | 79 | 19,525 | ||||||
|
| |||||||
268,579 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.9% | ||||||||
Hilton Worldwide Holdings, Inc. | 385 | 30,453 | ||||||
Hyatt Hotels Corp., Class A | 289 | 22,304 | ||||||
Las Vegas Sands Corp. | 322 | 24,557 | ||||||
|
| |||||||
77,314 | ||||||||
|
| |||||||
Household Durables — 0.8% | ||||||||
PulteGroup, Inc. | 1,059 | 30,438 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 13 |
Table of Contents
JPMorgan Intrepid America Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Household Products — 0.5% | ||||||||
Energizer Holdings, Inc. | 306 | 19,234 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 1.5% |
| |||||||
NRG Energy, Inc. | 953 | 29,266 | ||||||
Vistra Energy Corp.* | 1,384 | 32,755 | ||||||
|
| |||||||
62,021 | ||||||||
|
| |||||||
Insurance — 3.6% | ||||||||
Allstate Corp. (The) | 362 | 33,012 | ||||||
First American Financial Corp. | 346 | 17,885 | ||||||
Lincoln National Corp. | 225 | 14,031 | ||||||
Progressive Corp. (The) | 649 | 38,388 | ||||||
Travelers Cos., Inc. (The) | 337 | 41,168 | ||||||
|
| |||||||
144,484 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 2.2% | ||||||||
Amazon.com, Inc.* | 43 | 73,771 | ||||||
Netflix, Inc.* | 37 | 14,366 | ||||||
|
| |||||||
88,137 | ||||||||
|
| |||||||
Internet Software & Services — 4.4% | ||||||||
Alphabet, Inc., Class A* | 17 | 19,196 | ||||||
Alphabet, Inc., Class C* | 28 | 31,350 | ||||||
eBay, Inc.* | 2,097 | 76,052 | ||||||
Facebook, Inc., Class A* | 71 | 13,855 | ||||||
IAC/InterActiveCorp* | 27 | 4,132 | ||||||
VeriSign, Inc.* | 234 | 32,184 | ||||||
|
| |||||||
176,769 | ||||||||
|
| |||||||
IT Services — 2.6% | ||||||||
DXC Technology Co. | 385 | 31,023 | ||||||
Perspecta, Inc. | 163 | 3,349 | ||||||
Teradata Corp.* | 394 | 15,807 | ||||||
Visa, Inc., Class A | 419 | 55,497 | ||||||
|
| |||||||
105,676 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.3% | ||||||||
Waters Corp.* | 61 | 11,790 | ||||||
|
| |||||||
Machinery — 3.1% | ||||||||
Caterpillar, Inc. | 618 | 83,871 | ||||||
Deere & Co. | 307 | 42,975 | ||||||
|
| |||||||
126,846 | ||||||||
|
| |||||||
Media — 1.6% | ||||||||
Comcast Corp., Class A | 545 | 17,895 | ||||||
News Corp., Class A | 1,550 | 24,028 | ||||||
World Wrestling Entertainment, Inc., Class A | 321 | 23,390 | ||||||
|
| |||||||
65,313 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Metals & Mining — 1.8% | ||||||||
Alcoa Corp.* | 575 | 26,961 | ||||||
Freeport-McMoRan, Inc. | 1,513 | 26,114 | ||||||
Newmont Mining Corp. | 529 | 19,956 | ||||||
|
| |||||||
73,031 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.1% |
| |||||||
Chimera Investment Corp. | 233 | 4,250 | ||||||
|
| |||||||
Multiline Retail — 2.3% | ||||||||
Kohl’s Corp. | 453 | 33,038 | ||||||
Target Corp. | 766 | 58,285 | ||||||
|
| |||||||
91,323 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 6.3% | ||||||||
Chevron Corp. | 231 | 29,243 | ||||||
ConocoPhillips | 639 | 44,508 | ||||||
HollyFrontier Corp. | 456 | 31,225 | ||||||
Marathon Petroleum Corp. | 458 | 32,119 | ||||||
PBF Energy, Inc., Class A | 708 | 29,682 | ||||||
Peabody Energy Corp. | 206 | 9,365 | ||||||
Valero Energy Corp. | 729 | 80,828 | ||||||
|
| |||||||
256,970 | ||||||||
|
| |||||||
Personal Products — 0.9% | ||||||||
Herbalife Nutrition Ltd.* | 624 | 33,527 | ||||||
Nu Skin Enterprises, Inc., Class A | 12 | 943 | ||||||
|
| |||||||
34,470 | ||||||||
|
| |||||||
Pharmaceuticals — 0.3% | ||||||||
Bristol-Myers Squibb Co. | 125 | 6,928 | ||||||
Pfizer, Inc. | 200 | 7,260 | ||||||
|
| |||||||
14,188 | ||||||||
|
| |||||||
Professional Services — 0.7% | ||||||||
Robert Half International, Inc. | 464 | 30,174 | ||||||
|
| |||||||
Real Estate Management & Development — 0.8% |
| |||||||
CBRE Group, Inc., Class A* | 694 | 33,138 | ||||||
|
| |||||||
Road & Rail — 0.5% | ||||||||
Avis Budget Group, Inc.* | 446 | 14,485 | ||||||
Union Pacific Corp. | 28 | 3,925 | ||||||
|
| |||||||
18,410 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.3% |
| |||||||
Applied Materials, Inc. | 1,669 | 77,068 | ||||||
First Solar, Inc.* | 343 | 18,052 | ||||||
Lam Research Corp. | 320 | 55,277 | ||||||
Teradyne, Inc. | 622 | 23,691 | ||||||
|
| |||||||
174,088 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
14 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Software — 8.0% | ||||||||
Citrix Systems, Inc.* | 148 | 15,475 | ||||||
Fortinet, Inc.* | 364 | 22,743 | ||||||
Microsoft Corp. | 1,788 | 176,275 | ||||||
Oracle Corp. | 751 | 33,102 | ||||||
VMware, Inc., Class A* | 511 | 75,072 | ||||||
|
| |||||||
322,667 | ||||||||
|
| |||||||
Specialty Retail — 2.3% | ||||||||
American Eagle Outfitters, Inc. | 1,346 | 31,304 | ||||||
Best Buy Co., Inc. | 406 | 30,294 | ||||||
Urban Outfitters, Inc.* | 721 | 32,125 | ||||||
|
| |||||||
93,723 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.6% |
| |||||||
Apple, Inc. | 587 | 108,697 | ||||||
HP, Inc. | 1,970 | 44,690 | ||||||
NetApp, Inc. | 407 | 31,938 | ||||||
|
| |||||||
185,325 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.7% | ||||||||
Michael Kors Holdings Ltd.* | 445 | 29,604 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.7% | ||||||||
United Rentals, Inc.* | 197 | 29,081 | ||||||
|
| |||||||
Total Common Stocks | 3,964,283 | |||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 2.5% | ||||||||
Investment Companies — 2.5% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 99,912 | 99,912 | ||||||
|
| |||||||
Total Investments — 100.3% | 4,064,195 | |||||||
Liabilities in Excess of | (13,652 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 4,050,543 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||
Long Contracts |
| |||||||||||||||||
S&P 500 E-Mini Index | 604 | 09/2018 | USD | 82,192 | (257 | ) | ||||||||||||
|
| |||||||||||||||||
(257 | ) | |||||||||||||||||
|
|
Abbreviations | ||
USD | United States Dollar | |
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 15 |
Table of Contents
JPMorgan Intrepid Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.7% | ||||||||
Aerospace & Defense — 3.3% | ||||||||
Boeing Co. (The) | 115 | 38,517 | ||||||
|
| |||||||
Air Freight & Logistics — 0.3% | ||||||||
Expeditors International of Washington, Inc. | 53 | 3,904 | ||||||
|
| |||||||
Airlines — 1.6% | ||||||||
American Airlines Group, Inc. | 71 | 2,676 | ||||||
Copa Holdings SA, Class A (Panama) | 72 | 6,794 | ||||||
Delta Air Lines, Inc. | 178 | 8,798 | ||||||
|
| |||||||
18,268 | ||||||||
|
| |||||||
Auto Components — 0.4% | ||||||||
Lear Corp. | 28 | 5,184 | ||||||
|
| |||||||
Automobiles — 0.1% | ||||||||
General Motors Co. | 25 | 973 | ||||||
|
| |||||||
Banks — 0.4% | ||||||||
Comerica, Inc. | 53 | 4,783 | ||||||
|
| |||||||
Beverages — 1.7% | ||||||||
PepsiCo, Inc. | 179 | 19,520 | ||||||
|
| |||||||
Biotechnology — 4.3% | ||||||||
AbbVie, Inc. | 76 | 7,069 | ||||||
Amgen, Inc. | 140 | 25,869 | ||||||
Gilead Sciences, Inc. | 127 | 8,990 | ||||||
Vertex Pharmaceuticals, Inc.* | 51 | 8,685 | ||||||
|
| |||||||
50,613 | ||||||||
|
| |||||||
Capital Markets — 0.9% | ||||||||
Moody’s Corp. | 6 | 938 | ||||||
MSCI, Inc. | 56 | 9,330 | ||||||
|
| |||||||
10,268 | ||||||||
|
| |||||||
Chemicals — 0.7% | ||||||||
CF Industries Holdings, Inc. | 140 | 6,194 | ||||||
Westlake Chemical Corp. | 18 | 1,905 | ||||||
|
| |||||||
8,099 | ||||||||
|
| |||||||
Communications Equipment — 1.7% | ||||||||
F5 Networks, Inc.* | 56 | 9,709 | ||||||
Palo Alto Networks, Inc.* | 47 | 9,595 | ||||||
|
| |||||||
19,304 | ||||||||
|
| |||||||
Construction & Engineering — 0.3% | ||||||||
EMCOR Group, Inc. | 50 | 3,824 | ||||||
|
| |||||||
Consumer Finance — 1.1% | ||||||||
Credit Acceptance Corp.* | 24 | 8,514 | ||||||
FirstCash, Inc. | 51 | 4,618 | ||||||
|
| |||||||
13,132 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Diversified Telecommunication Services — 0.4% |
| |||||||
Verizon Communications, Inc. | 98 | 4,905 | ||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 1.4% |
| |||||||
American Tower Corp. | 63 | 9,054 | ||||||
SBA Communications Corp.* | 46 | 7,513 | ||||||
|
| |||||||
16,567 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.0% | ||||||||
Walgreens Boots Alliance, Inc. | 52 | 3,097 | ||||||
Walmart, Inc. | 100 | 8,531 | ||||||
|
| |||||||
11,628 | ||||||||
|
| |||||||
Food Products — 2.1% | ||||||||
General Mills, Inc. | 209 | 9,246 | ||||||
Pilgrim’s Pride Corp.* | 254 | 5,111 | ||||||
Post Holdings, Inc.* | 120 | 10,331 | ||||||
|
| |||||||
24,688 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 2.6% | ||||||||
Align Technology, Inc.* | 29 | 9,751 | ||||||
Baxter International, Inc. | 165 | 12,147 | ||||||
Haemonetics Corp.* | 50 | 4,520 | ||||||
IDEXX Laboratories, Inc.* | 9 | 1,896 | ||||||
Varian Medical Systems, Inc.* | 17 | 1,899 | ||||||
|
| |||||||
30,213 | ||||||||
|
| |||||||
Health Care Providers & Services — 5.1% | ||||||||
Anthem, Inc. | 72 | 17,019 | ||||||
Humana, Inc. | 87 | 25,804 | ||||||
Molina Healthcare, Inc.* | 97 | 9,520 | ||||||
WellCare Health Plans, Inc.* | 30 | 7,363 | ||||||
|
| |||||||
59,706 | ||||||||
|
| |||||||
Health Care Technology — 0.2% | ||||||||
Veeva Systems, Inc., Class A* | 35 | 2,690 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.7% | ||||||||
Hilton Worldwide Holdings, Inc. | 110 | 8,731 | ||||||
Hyatt Hotels Corp., Class A | 85 | 6,550 | ||||||
Las Vegas Sands Corp. | 129 | 9,881 | ||||||
Marriott International, Inc., Class A | 50 | 6,267 | ||||||
|
| |||||||
31,429 | ||||||||
|
| |||||||
Household Durables — 1.3% | ||||||||
NVR, Inc.* | 2 | 7,129 | ||||||
PulteGroup, Inc. | 261 | 7,501 | ||||||
|
| |||||||
14,630 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 0.3% |
| |||||||
NRG Energy, Inc. | 132 | 4,043 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
16 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Insurance — 0.8% | ||||||||
Allstate Corp. (The) | 10 | 940 | ||||||
First American Financial Corp. | 96 | 4,975 | ||||||
Lincoln National Corp. | 23 | 1,407 | ||||||
Progressive Corp. (The) | 25 | 1,467 | ||||||
|
| |||||||
8,789 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 5.5% | ||||||||
Amazon.com, Inc.* | 31 | 51,844 | ||||||
Netflix, Inc.* | 31 | 11,939 | ||||||
|
| |||||||
63,783 | ||||||||
|
| |||||||
Internet Software & Services — 9.1% | ||||||||
Alphabet, Inc., Class A* | 17 | 19,648 | ||||||
Alphabet, Inc., Class C* | 19 | 21,086 | ||||||
eBay, Inc.* | 509 | 18,463 | ||||||
Facebook, Inc., Class A* | 108 | 20,967 | ||||||
GoDaddy, Inc., Class A* | 143 | 10,096 | ||||||
IAC/InterActiveCorp* | 45 | 6,847 | ||||||
VeriSign, Inc.* | 70 | 9,647 | ||||||
|
| |||||||
106,754 | ||||||||
|
| |||||||
IT Services — 5.0% | ||||||||
DXC Technology Co. | 112 | 9,004 | ||||||
Mastercard, Inc., Class A | 21 | 4,127 | ||||||
Perspecta, Inc. | 46 | 943 | ||||||
Teradata Corp.* | 114 | 4,557 | ||||||
Visa, Inc., Class A | 299 | 39,576 | ||||||
|
| |||||||
58,207 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.5% | ||||||||
Waters Corp.* | 31 | 6,001 | ||||||
|
| |||||||
Machinery — 3.5% | ||||||||
Caterpillar, Inc. | 182 | 24,637 | ||||||
Deere & Co. | 116 | 16,273 | ||||||
|
| |||||||
40,910 | ||||||||
|
| |||||||
Media — 1.6% | ||||||||
Live Nation Entertainment, Inc.* | 182 | 8,850 | ||||||
News Corp., Class A | 215 | 3,326 | ||||||
Sirius XM Holdings, Inc. | 1,037 | 7,020 | ||||||
|
| |||||||
19,196 | ||||||||
|
| |||||||
Metals & Mining — 0.9% | ||||||||
Alcoa Corp.* | 104 | 4,871 | ||||||
Freeport-McMoRan, Inc. | 308 | 5,313 | ||||||
|
| |||||||
10,184 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Multiline Retail — 2.5% | ||||||||
Kohl’s Corp. | 135 | 9,812 | ||||||
Macy’s, Inc. | 151 | 5,637 | ||||||
Target Corp. | 188 | 14,288 | ||||||
|
| |||||||
29,737 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 2.0% | ||||||||
Marathon Petroleum Corp. | 18 | 1,228 | ||||||
PBF Energy, Inc., Class A | 64 | 2,662 | ||||||
Peabody Energy Corp. | 170 | 7,727 | ||||||
Valero Energy Corp. | 110 | 12,136 | ||||||
|
| |||||||
23,753 | ||||||||
|
| |||||||
Personal Products — 0.6% | ||||||||
Nu Skin Enterprises, Inc., Class A | 94 | 7,351 | ||||||
|
| |||||||
Professional Services — 0.8% | ||||||||
Robert Half International, Inc. | 135 | 8,808 | ||||||
|
| |||||||
Real Estate Management & Development — 0.7% |
| |||||||
CBRE Group, Inc., Class A* | 182 | 8,665 | ||||||
|
| |||||||
Road & Rail — 0.5% | ||||||||
Avis Budget Group, Inc.* | 135 | 4,371 | ||||||
Union Pacific Corp. | 8 | 1,134 | ||||||
|
| |||||||
5,505 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 4.5% |
| |||||||
Applied Materials, Inc. | 516 | 23,848 | ||||||
Lam Research Corp. | 106 | 18,236 | ||||||
Maxim Integrated Products, Inc. | 41 | 2,393 | ||||||
Teradyne, Inc. | 217 | 8,276 | ||||||
|
| |||||||
52,753 | ||||||||
|
| |||||||
Software — 14.2% | ||||||||
Adobe Systems, Inc.* | 82 | 19,895 | ||||||
Citrix Systems, Inc.* | 87 | 9,090 | ||||||
Fortinet, Inc.* | 158 | 9,870 | ||||||
Microsoft Corp. | 806 | 79,485 | ||||||
Oracle Corp. | 207 | 9,134 | ||||||
Red Hat, Inc.* | 48 | 6,409 | ||||||
Splunk, Inc.* | 10 | 1,001 | ||||||
Tableau Software, Inc., Class A* | 33 | 3,196 | ||||||
Take-Two Interactive Software, Inc.* | 44 | 5,232 | ||||||
VMware, Inc., Class A* | 153 | 22,486 | ||||||
|
| |||||||
165,798 | ||||||||
|
| |||||||
Specialty Retail — 2.9% | ||||||||
American Eagle Outfitters, Inc. | 390 | 9,074 | ||||||
Best Buy Co., Inc. | 130 | 9,718 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 17 |
Table of Contents
JPMorgan Intrepid Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Specialty Retail — continued | ||||||||
Burlington Stores, Inc.* | 39 | 5,931 | ||||||
Urban Outfitters, Inc.* | 203 | 9,048 | ||||||
|
| |||||||
33,771 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 6.9% |
| |||||||
Apple, Inc. | 351 | 64,964 | ||||||
HP, Inc. | 196 | 4,441 | ||||||
NetApp, Inc. | 129 | 10,130 | ||||||
Pure Storage, Inc., Class A* | 58 | 1,373 | ||||||
|
| |||||||
80,908 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.5% | ||||||||
Michael Kors Holdings Ltd.* | 89 | 5,901 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.8% | ||||||||
United Rentals, Inc.* | 63 | 9,344 | ||||||
|
| |||||||
Total Common Stocks | 1,143,006 | |||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 2.4% | ||||||||
Investment Companies — 2.4% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 27,874 | 27,874 | ||||||
|
| |||||||
Total Investments — 100.1% | 1,170,880 | |||||||
Liabilities in Excess of | (1,286 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,169,594 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts | ||||||||||||||||||||
S&P 500 E-Mini Index | 185 | 09/2018 | USD | 25,175 | (139 | ) | ||||||||||||||
|
| |||||||||||||||||||
(139 | ) | |||||||||||||||||||
|
|
Abbreviations | ||
USD | United States Dollar | |
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
18 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 99.5% | ||||||||
Aerospace & Defense — 3.2% | ||||||||
HEICO Corp., Class A | 122 | 7,436 | ||||||
Huntington Ingalls Industries, Inc. | 39 | 8,480 | ||||||
L3 Technologies, Inc. | 21 | 4,096 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 43 | 3,660 | ||||||
Teledyne Technologies, Inc.* | 11 | 2,190 | ||||||
|
| |||||||
25,862 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.1% | ||||||||
CH Robinson Worldwide, Inc. | 14 | 1,205 | ||||||
|
| |||||||
Airlines — 0.5% | ||||||||
Copa Holdings SA, Class A (Panama) | 40 | 3,785 | ||||||
|
| |||||||
Auto Components — 0.5% | ||||||||
Lear Corp. | 21 | 3,828 | ||||||
|
| |||||||
Banks — 4.8% | ||||||||
Citizens Financial Group, Inc. | 23 | 875 | ||||||
East West Bancorp, Inc. | 34 | 2,230 | ||||||
KeyCorp | 140 | 2,744 | ||||||
Popular, Inc. (Puerto Rico) | 259 | 11,723 | ||||||
Regions Financial Corp. | 611 | 10,865 | ||||||
SVB Financial Group* | 13 | 3,783 | ||||||
Synovus Financial Corp. | 133 | 7,000 | ||||||
|
| |||||||
39,220 | ||||||||
|
| |||||||
Biotechnology — 1.8% | ||||||||
Alkermes plc* | 60 | 2,453 | ||||||
Alnylam Pharmaceuticals, Inc.* | 23 | 2,236 | ||||||
BioMarin Pharmaceutical, Inc.* | 34 | 3,231 | ||||||
Exelixis, Inc.* | 78 | 1,668 | ||||||
Incyte Corp.* | 45 | 2,995 | ||||||
TESARO, Inc.* | 50 | 2,210 | ||||||
|
| |||||||
14,793 | ||||||||
|
| |||||||
Capital Markets — 3.9% | ||||||||
E*TRADE Financial Corp.* | 13 | 801 | ||||||
Lazard Ltd., Class A | 28 | 1,384 | ||||||
LPL Financial Holdings, Inc. | 240 | 15,726 | ||||||
MSCI, Inc. | 61 | 10,141 | ||||||
Raymond James Financial, Inc. | 40 | 3,601 | ||||||
|
| |||||||
31,653 | ||||||||
|
| |||||||
Chemicals — 1.5% | ||||||||
Cabot Corp. | 121 | 7,499 | ||||||
Eastman Chemical Co. | 5 | 460 | ||||||
Huntsman Corp. | 158 | 4,616 | ||||||
|
| |||||||
12,575 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Commercial Services & Supplies — 1.5% | ||||||||
KAR Auction Services, Inc. | 202 | 11,059 | ||||||
Stericycle, Inc.* | 24 | 1,554 | ||||||
|
| |||||||
12,613 | ||||||||
|
| |||||||
Communications Equipment — 1.3% | ||||||||
ARRIS International plc* | 215 | 5,256 | ||||||
F5 Networks, Inc.* | 29 | 5,018 | ||||||
|
| |||||||
10,274 | ||||||||
|
| |||||||
Construction & Engineering — 3.0% | ||||||||
AECOM* | 267 | 8,819 | ||||||
Fluor Corp. | 18 | 883 | ||||||
Jacobs Engineering Group, Inc. | 237 | 15,034 | ||||||
|
| |||||||
24,736 | ||||||||
|
| |||||||
Consumer Finance — 0.4% | ||||||||
Discover Financial Services | 11 | 775 | ||||||
Synchrony Financial | 78 | 2,617 | ||||||
|
| |||||||
3,392 | ||||||||
|
| |||||||
Containers & Packaging — 1.9% | ||||||||
Avery Dennison Corp. | 37 | 3,727 | ||||||
Berry Global Group, Inc.* | 231 | 10,603 | ||||||
WestRock Co. | 15 | 844 | ||||||
|
| |||||||
15,174 | ||||||||
|
| |||||||
Diversified Consumer Services — 0.6% | ||||||||
ServiceMaster Global Holdings, Inc.* | 88 | 5,245 | ||||||
|
| |||||||
Diversified Telecommunication Services — 0.9% | ||||||||
CenturyLink, Inc. | 378 | 7,042 | ||||||
|
| |||||||
Electric Utilities — 0.8% | ||||||||
Evergy, Inc. | 22 | 1,209 | ||||||
FirstEnergy Corp. | 128 | 4,607 | ||||||
Pinnacle West Capital Corp. | 4 | 339 | ||||||
|
| |||||||
6,155 | ||||||||
|
| |||||||
Electrical Equipment — 0.7% | ||||||||
GrafTech International Ltd. | 122 | 2,196 | ||||||
Regal Beloit Corp. | 44 | 3,583 | ||||||
|
| |||||||
5,779 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 1.3% |
| |||||||
CDW Corp. | 17 | 1,365 | ||||||
Jabil, Inc. | 322 | 8,907 | ||||||
|
| |||||||
10,272 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.3% | ||||||||
Baker Hughes a GE Co. | 64 | 2,107 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 19 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Equity Real Estate Investment Trusts (REITs) — 8.5% |
| |||||||
Alexandria Real Estate Equities, Inc. | 10 | 1,237 | ||||||
American Homes 4 Rent, Class A | 82 | 1,825 | ||||||
Apple Hospitality REIT, Inc. | 226 | 4,046 | ||||||
Brixmor Property Group, Inc. | 33 | 577 | ||||||
CoreSite Realty Corp. | 4 | 421 | ||||||
Corporate Office Properties Trust | 96 | 2,795 | ||||||
Crown Castle International Corp. | 11 | 1,175 | ||||||
DCT Industrial Trust, Inc. | 4 | 254 | ||||||
Digital Realty Trust, Inc. | 15 | 1,696 | ||||||
Douglas Emmett, Inc. | 18 | 711 | ||||||
Equinix, Inc. | 28 | 11,994 | ||||||
Equity Commonwealth* | 131 | 4,122 | ||||||
Equity LifeStyle Properties, Inc. | 26 | 2,417 | ||||||
Host Hotels & Resorts, Inc. | 103 | 2,166 | ||||||
Hudson Pacific Properties, Inc. | 139 | 4,939 | ||||||
Invitation Homes, Inc. | 191 | 4,398 | ||||||
Liberty Property Trust | 25 | 1,099 | ||||||
Life Storage, Inc. | 5 | 526 | ||||||
Mid-America Apartment Communities, Inc. | 12 | 1,255 | ||||||
Prologis, Inc. | 90 | 5,925 | ||||||
Regency Centers Corp. | 25 | 1,527 | ||||||
Retail Properties of America, Inc., Class A | 154 | 1,964 | ||||||
SBA Communications Corp.* | 38 | 6,225 | ||||||
Sun Communities, Inc. | 24 | 2,349 | ||||||
Weyerhaeuser Co. | 107 | 3,909 | ||||||
|
| |||||||
69,552 | ||||||||
|
| |||||||
Food Products — 3.2% | ||||||||
Archer-Daniels-Midland Co. | 34 | 1,572 | ||||||
Bunge Ltd. | 15 | 1,060 | ||||||
Ingredion, Inc. | 77 | 8,468 | ||||||
Pilgrim’s Pride Corp.* | 255 | 5,127 | ||||||
Tyson Foods, Inc., Class A | 143 | 9,825 | ||||||
|
| |||||||
26,052 | ||||||||
|
| |||||||
Gas Utilities — 0.9% | ||||||||
National Fuel Gas Co. | 18 | 964 | ||||||
UGI Corp. | 127 | 6,615 | ||||||
|
| |||||||
7,579 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.3% | ||||||||
Hill-Rom Holdings, Inc. | 105 | 9,136 | ||||||
Hologic, Inc.* | 120 | 4,778 | ||||||
STERIS plc | 4 | 462 | ||||||
Teleflex, Inc. | 7 | 1,931 | ||||||
Zimmer Biomet Holdings, Inc. | 95 | 10,531 | ||||||
|
| |||||||
26,838 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Health Care Providers & Services — 3.4% | ||||||||
AmerisourceBergen Corp. | 89 | 7,615 | ||||||
Cardinal Health, Inc. | 77 | 3,770 | ||||||
Centene Corp.* | 43 | 5,298 | ||||||
MEDNAX, Inc.* | 17 | 727 | ||||||
Premier, Inc., Class A* | 177 | 6,446 | ||||||
WellCare Health Plans, Inc.* | 16 | 4,026 | ||||||
|
| |||||||
27,882 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.4% | ||||||||
Chipotle Mexican Grill, Inc.* | 4 | 1,682 | ||||||
Extended Stay America, Inc. | 436 | 9,413 | ||||||
Hilton Grand Vacations, Inc.* | 33 | 1,142 | ||||||
Hyatt Hotels Corp., Class A | 72 | 5,539 | ||||||
Wynn Resorts Ltd. | 9 | 1,523 | ||||||
|
| |||||||
19,299 | ||||||||
|
| |||||||
Household Durables — 0.2% | ||||||||
NVR, Inc.* | — | (a) | 1,337 | |||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 3.4% |
| |||||||
NRG Energy, Inc. | 368 | 11,301 | ||||||
Vistra Energy Corp.* | 709 | 16,775 | ||||||
|
| |||||||
28,076 | ||||||||
|
| |||||||
Insurance — 4.2% | ||||||||
American Financial Group, Inc. | 43 | 4,626 | ||||||
American National Insurance Co. | 3 | 359 | ||||||
Arch Capital Group Ltd.* | 28 | 734 | ||||||
Aspen Insurance Holdings Ltd. (Bermuda) | 19 | 773 | ||||||
Assurant, Inc. | 19 | 1,961 | ||||||
Assured Guaranty Ltd. | 28 | 1,008 | ||||||
Everest Re Group Ltd. | 17 | 3,872 | ||||||
First American Financial Corp. | 92 | 4,743 | ||||||
FNF Group | 30 | 1,115 | ||||||
Hanover Insurance Group, Inc. (The) | 41 | 4,914 | ||||||
Hartford Financial Services Group, Inc. (The) | 26 | 1,319 | ||||||
Lincoln National Corp. | 18 | 1,096 | ||||||
Old Republic International Corp. | 26 | 518 | ||||||
Progressive Corp. (The) | 125 | 7,411 | ||||||
|
| |||||||
34,449 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 0.2% | ||||||||
Qurate Retail, Inc.* | 74 | 1,568 | ||||||
|
| |||||||
Internet Software & Services — 1.0% | ||||||||
Dropbox, Inc., Class A* | 41 | 1,313 | ||||||
Twitter, Inc.* | 164 | 7,166 | ||||||
|
| |||||||
8,479 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
20 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
IT Services — 5.4% | ||||||||
Black Knight, Inc.* | 90 | 4,810 | ||||||
Conduent, Inc.* | 259 | 4,710 | ||||||
DXC Technology Co. | 147 | 11,858 | ||||||
Fidelity National Information Services, Inc. | 31 | 3,287 | ||||||
Genpact Ltd. | 25 | 726 | ||||||
Leidos Holdings, Inc. | 24 | 1,398 | ||||||
Sabre Corp. | 103 | 2,533 | ||||||
Teradata Corp.* | 21 | 855 | ||||||
Total System Services, Inc. | 67 | 5,637 | ||||||
Worldpay, Inc.* | 107 | 8,710 | ||||||
|
| |||||||
44,524 | ||||||||
|
| |||||||
Machinery — 3.6% | ||||||||
Crane Co. | 83 | 6,659 | ||||||
Gardner Denver Holdings, Inc.* | 110 | 3,224 | ||||||
Ingersoll-Rand plc | 126 | 11,333 | ||||||
WABCO Holdings, Inc.* | 68 | 7,945 | ||||||
|
| |||||||
29,161 | ||||||||
|
| |||||||
Media — 1.5% | ||||||||
Discovery, Inc., Class C* | 432 | 11,011 | ||||||
Viacom, Inc., Class B | 49 | 1,490 | ||||||
|
| |||||||
12,501 | ||||||||
|
| |||||||
Metals & Mining — 1.8% | ||||||||
Alcoa Corp.* | 19 | 877 | ||||||
Freeport-McMoRan, Inc. | 75 | 1,293 | ||||||
Reliance Steel & Aluminum Co. | 8 | 691 | ||||||
Steel Dynamics, Inc. | 198 | 9,089 | ||||||
United States Steel Corp. | 88 | 3,061 | ||||||
|
| |||||||
15,011 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.1% |
| |||||||
Chimera Investment Corp. | 42 | 762 | ||||||
|
| |||||||
Multiline Retail — 1.1% | ||||||||
Dollar General Corp. | 54 | 5,305 | ||||||
Kohl’s Corp. | 56 | 4,068 | ||||||
|
| |||||||
9,373 | ||||||||
|
| |||||||
Multi-Utilities — 0.9% | ||||||||
Ameren Corp. | 25 | 1,546 | ||||||
CenterPoint Energy, Inc. | 66 | 1,837 | ||||||
CMS Energy Corp. | 62 | 2,945 | ||||||
MDU Resources Group, Inc. | 26 | 740 | ||||||
|
| |||||||
7,068 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Oil, Gas & Consumable Fuels — 4.6% | ||||||||
Andeavor | 33 | 4,342 | ||||||
Cimarex Energy Co. | 6 | 636 | ||||||
Devon Energy Corp. | 59 | 2,580 | ||||||
EQT Corp. | 5 | 268 | ||||||
Marathon Oil Corp. | 504 | 10,518 | ||||||
Marathon Petroleum Corp. | 65 | 4,546 | ||||||
Murphy Oil Corp. | 31 | 1,030 | ||||||
Noble Energy, Inc. | 5 | 159 | ||||||
ONEOK, Inc. | 35 | 2,430 | ||||||
PBF Energy, Inc., Class A | 114 | 4,780 | ||||||
QEP Resources, Inc.* | 69 | 840 | ||||||
Valero Energy Corp. | 19 | 2,084 | ||||||
Williams Cos., Inc. (The) | 48 | 1,296 | ||||||
WPX Energy, Inc.* | 107 | 1,931 | ||||||
|
| |||||||
37,440 | ||||||||
|
| |||||||
Personal Products — 1.1% | ||||||||
Herbalife Nutrition Ltd.* | 126 | 6,742 | ||||||
Nu Skin Enterprises, Inc., Class A | 25 | 1,916 | ||||||
|
| |||||||
8,658 | ||||||||
|
| |||||||
Pharmaceuticals — 0.7% | ||||||||
Mylan NV* | 110 | 3,961 | ||||||
Nektar Therapeutics* | 29 | 1,406 | ||||||
Perrigo Co. plc | 8 | 591 | ||||||
|
| |||||||
5,958 | ||||||||
|
| |||||||
Professional Services — 2.0% | ||||||||
ManpowerGroup, Inc. | 108 | 9,311 | ||||||
TransUnion | 96 | 6,849 | ||||||
|
| |||||||
16,160 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.4% |
| |||||||
CBRE Group, Inc., Class A* | 62 | 2,941 | ||||||
|
| |||||||
Road & Rail — 0.2% | ||||||||
Landstar System, Inc. | 15 | 1,616 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.7% |
| |||||||
First Solar, Inc.* | 87 | 4,560 | ||||||
KLA-Tencor Corp. | 29 | 2,974 | ||||||
Lam Research Corp. | 28 | 4,857 | ||||||
Marvell Technology Group Ltd. | 522 | 11,188 | ||||||
ON Semiconductor Corp.* | 291 | 6,468 | ||||||
Teradyne, Inc. | 9 | 350 | ||||||
|
| |||||||
30,397 | ||||||||
|
| |||||||
Software — 5.0% | ||||||||
Activision Blizzard, Inc. | 41 | 3,099 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 21 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Software — continued | ||||||||
CA, Inc. | 191 | 6,795 | ||||||
Citrix Systems, Inc.* | 69 | 7,181 | ||||||
Dell Technologies, Inc. Class V, Class V* | 43 | 3,612 | ||||||
SS&C Technologies Holdings, Inc. | 116 | 6,031 | ||||||
Symantec Corp. | 255 | 5,259 | ||||||
Take-Two Interactive Software, Inc.* | 75 | 8,841 | ||||||
|
| |||||||
40,818 | ||||||||
|
| |||||||
Specialty Retail — 3.4% | ||||||||
Best Buy Co., Inc. | 141 | 10,545 | ||||||
Urban Outfitters, Inc.* | 378 | 16,849 | ||||||
|
| |||||||
27,394 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 2.1% |
| |||||||
NCR Corp.* | 94 | 2,806 | ||||||
Western Digital Corp. | 103 | 7,934 | ||||||
Xerox Corp. | 281 | 6,733 | ||||||
|
| |||||||
17,473 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.8% | ||||||||
Columbia Sportswear Co. | 80 | 7,354 | ||||||
Michael Kors Holdings Ltd.* | 108 | 7,213 | ||||||
|
| |||||||
14,567 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.4% |
| |||||||
HD Supply Holdings, Inc.* | 83 | 3,538 | ||||||
|
| |||||||
Total Common Stocks | 812,181 | |||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 0.9% | ||||||||
Investment Companies — 0.9% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (b) (c) | 7,288 | 7,288 | ||||||
|
| |||||||
Total Investments — 100.4% |
| 819,469 | ||||||
Liabilities in Excess of |
| (2,946 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| $ | 816,523 | |||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||||
Long Contracts | ||||||||||||||||||||
S&P Midcap 400 E-Mini Index | 15 | 09/2018 | USD | 2,934 | (33 | ) | ||||||||||||||
|
| |||||||||||||||||||
(33 | ) | |||||||||||||||||||
|
|
Abbreviations | ||
REIT | Real Estate Investment Trust | |
USD | United States Dollar | |
(a) | Amount rounds to less than one thousand. | |
(b) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(c) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
22 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 95.7% | ||||||||
Aerospace & Defense — 1.0% | ||||||||
Raytheon Co. | 1 | 212 | ||||||
|
| |||||||
Airlines — 2.1% | ||||||||
Delta Air Lines, Inc. | 5 | 237 | ||||||
Southwest Airlines Co. | 4 | 214 | ||||||
|
| |||||||
451 | ||||||||
|
| |||||||
Banks — 8.8% |
| |||||||
Bank of America Corp. | 17 | 471 | ||||||
Citigroup, Inc. | 11 | 743 | ||||||
PNC Financial Services Group, Inc. (The) | 3 | 428 | ||||||
Wells Fargo & Co. | 5 | 279 | ||||||
|
| |||||||
1,921 | ||||||||
|
| |||||||
Beverages — 2.7% |
| |||||||
Molson Coors Brewing Co., Class B | 2 | 108 | ||||||
PepsiCo, Inc. | 4 | 478 | ||||||
|
| |||||||
586 | ||||||||
|
| |||||||
Biotechnology — 5.1% |
| |||||||
Amgen, Inc. | 2 | 282 | ||||||
Biogen, Inc.* | 1 | 289 | ||||||
Celgene Corp.* | 2 | 146 | ||||||
Gilead Sciences, Inc. | 6 | 409 | ||||||
|
| |||||||
1,126 | ||||||||
|
| |||||||
Capital Markets — 2.1% |
| |||||||
Bank of New York Mellon Corp. (The) | 5 | 258 | ||||||
Northern Trust Corp. | 2 | 213 | ||||||
|
| |||||||
471 | ||||||||
|
| |||||||
Chemicals — 1.5% |
| |||||||
DowDuPont, Inc. | 3 | 200 | ||||||
International Flavors & Fragrances, Inc. | 1 | 120 | ||||||
|
| |||||||
320 | ||||||||
|
| |||||||
Communications Equipment — 2.6% |
| |||||||
Cisco Systems, Inc. | 13 | 567 | ||||||
|
| |||||||
Consumer Finance — 0.9% | ||||||||
American Express Co. | 2 | 202 | ||||||
|
| |||||||
Containers & Packaging — 0.7% | ||||||||
Ball Corp. | 4 | 152 | ||||||
|
| |||||||
Diversified Telecommunication Services — 4.3% | ||||||||
AT&T, Inc. | 13 | 409 | ||||||
Verizon Communications, Inc. | 11 | 531 | ||||||
|
| |||||||
940 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Electric Utilities — 1.9% | ||||||||
American Electric Power Co., Inc. | 2 | 158 | ||||||
NextEra Energy, Inc. | 2 | 268 | ||||||
|
| |||||||
426 | ||||||||
|
| |||||||
Energy Equipment & Services — 4.5% | ||||||||
Baker Hughes a GE Co. | 5 | 160 | ||||||
Halliburton Co. | 2 | 110 | ||||||
National Oilwell Varco, Inc. | 7 | 285 | ||||||
Schlumberger Ltd. | 3 | 221 | ||||||
TechnipFMC plc (United Kingdom) | 7 | 208 | ||||||
|
| |||||||
984 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 0.7% |
| |||||||
Prologis, Inc. | 3 | 164 | ||||||
|
| |||||||
Food & Staples Retailing — 1.3% | ||||||||
Walgreens Boots Alliance, Inc. | 5 | 293 | ||||||
|
| |||||||
Food Products — 0.9% | ||||||||
Mondelez International, Inc., Class A | 5 | 192 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 0.8% | ||||||||
Becton Dickinson and Co. | 1 | 175 | ||||||
|
| |||||||
Health Care Providers & Services — 4.8% | ||||||||
Anthem, Inc. | 1 | 322 | ||||||
Cigna Corp. | 1 | 190 | ||||||
Humana, Inc. | 2 | 548 | ||||||
|
| |||||||
1,060 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.7% | ||||||||
Dunkin’ Brands Group, Inc. | 3 | 178 | ||||||
Hilton Worldwide Holdings, Inc. | 3 | 205 | ||||||
|
| |||||||
383 | ||||||||
|
| |||||||
Household Products — 1.5% | ||||||||
Procter & Gamble Co. (The) | 4 | 323 | ||||||
|
| |||||||
Insurance — 2.9% | ||||||||
Allstate Corp. (The) | 3 | 240 | ||||||
Hartford Financial Services Group, Inc. (The) | 4 | 199 | ||||||
Travelers Cos., Inc. (The) | 2 | 199 | ||||||
|
| |||||||
638 | ||||||||
|
| |||||||
IT Services — 4.1% | ||||||||
Accenture plc, Class A | 2 | 301 | ||||||
DXC Technology Co. | 3 | 211 | ||||||
Perspecta, Inc. | 1 | 27 | ||||||
Visa, Inc., Class A | 3 | 362 | ||||||
|
| |||||||
901 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 23 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — (continued) | ||||||||
Life Sciences Tools & Services — 0.8% | ||||||||
Waters Corp.* | 1 | 178 | ||||||
|
| |||||||
Media — 3.3% | ||||||||
Comcast Corp., Class A | 5 | 154 | ||||||
Sirius XM Holdings, Inc. | 39 | 263 | ||||||
Walt Disney Co. (The) | 3 | 297 | ||||||
|
| |||||||
714 | ||||||||
|
| |||||||
Multiline Retail — 0.9% | ||||||||
Target Corp. | 3 | 208 | ||||||
|
| |||||||
Multi-Utilities — 0.9% | ||||||||
WEC Energy Group, Inc. | 3 | 207 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 2.5% | ||||||||
Phillips 66 | 2 | 251 | ||||||
Valero Energy Corp. | 3 | 300 | ||||||
|
| |||||||
551 | ||||||||
|
| |||||||
Pharmaceuticals — 0.6% | ||||||||
Bristol-Myers Squibb Co. | 2 | 124 | ||||||
|
| |||||||
Professional Services — 0.7% | ||||||||
ManpowerGroup, Inc. | 2 | 142 | ||||||
|
| |||||||
Road & Rail — 0.8% | ||||||||
CSX Corp. | 3 | 178 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 1.8% |
| |||||||
First Solar, Inc.* | 2 | 106 | ||||||
Lam Research Corp. | 2 | 297 | ||||||
|
| |||||||
403 | ||||||||
|
| |||||||
Software — 9.4% | ||||||||
Autodesk, Inc.* | 3 | 398 | ||||||
Microsoft Corp. | 13 | 1,296 | ||||||
Oracle Corp. | 8 | 358 | ||||||
|
| |||||||
2,052 | ||||||||
|
| |||||||
Specialty Retail — 5.3% | ||||||||
Home Depot, Inc. (The) | 3 | 558 | ||||||
Lowe’s Cos., Inc. | 5 | 430 | ||||||
Tractor Supply Co. | 2 | 166 | ||||||
|
| |||||||
1,154 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 8.9% |
| |||||||
Apple, Inc. | 8 | 1,389 | ||||||
Hewlett Packard Enterprise Co. | 10 | 140 | ||||||
HP, Inc. | 6 | 137 | ||||||
NetApp, Inc. | 4 | 298 | ||||||
|
| |||||||
1,964 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Textiles, Apparel & Luxury Goods — 1.0% | ||||||||
VF Corp. | 3 | 209 | ||||||
|
| |||||||
Tobacco — 1.0% | ||||||||
Philip Morris International, Inc. | 3 | 217 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.9% | ||||||||
United Rentals, Inc.* | 1 | 193 | ||||||
|
| |||||||
Total Common Stocks | 20,981 | |||||||
|
| |||||||
Short-Term Investments — 4.4% | ||||||||
Investment Companies — 4.4% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Class Shares, 1.80% (a) (b) | 976 | 976 | ||||||
|
| |||||||
Total Investments — 100.1% | 21,957 | |||||||
Liabilities in Excess of | (11 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 21,946 | ||||||
|
|
Percentages indicated are based on net assets.
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
24 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 95.2% | ||||||||
Aerospace & Defense — 2.0% | ||||||||
Boeing Co. (The) | 66 | 22,177 | ||||||
|
| |||||||
Airlines — 1.4% | ||||||||
Copa Holdings SA, Class A (Panama) | 49 | 4,637 | ||||||
Delta Air Lines, Inc. | 208 | 10,314 | ||||||
|
| |||||||
14,951 | ||||||||
|
| |||||||
Automobiles — 1.5% | ||||||||
General Motors Co. | 423 | 16,654 | ||||||
|
| |||||||
Banks — 11.1% | ||||||||
Bank of America Corp. | 1,414 | 39,847 | ||||||
CIT Group, Inc. | 157 | 7,899 | ||||||
Citigroup, Inc. | 515 | 34,476 | ||||||
Citizens Financial Group, Inc. | 203 | 7,908 | ||||||
Comerica, Inc. | 57 | 5,146 | ||||||
Fifth Third Bancorp | 252 | 7,241 | ||||||
M&T Bank Corp. | 48 | 8,184 | ||||||
PNC Financial Services Group, Inc. (The) | 25 | 3,361 | ||||||
Regions Financial Corp. | 444 | 7,893 | ||||||
|
| |||||||
121,955 | ||||||||
|
| |||||||
Beverages — 1.2% | ||||||||
PepsiCo, Inc. | 125 | 13,620 | ||||||
|
| |||||||
Biotechnology — 4.3% | ||||||||
AbbVie, Inc. | 167 | 15,445 | ||||||
Amgen, Inc. | 119 | 21,900 | ||||||
Gilead Sciences, Inc. | 146 | 10,343 | ||||||
|
| |||||||
47,688 | ||||||||
|
| |||||||
Capital Markets — 2.6% | ||||||||
Ameriprise Financial, Inc. | 49 | 6,896 | ||||||
Goldman Sachs Group, Inc. (The) | 41 | 9,076 | ||||||
Morgan Stanley | 15 | 711 | ||||||
MSCI, Inc. | 49 | 8,106 | ||||||
S&P Global, Inc. | 16 | 3,222 | ||||||
|
| |||||||
28,011 | ||||||||
|
| |||||||
Chemicals — 0.7% | ||||||||
Huntsman Corp. | 260 | 7,580 | ||||||
|
| |||||||
Communications Equipment — 1.1% | ||||||||
Cisco Systems, Inc. | 284 | 12,203 | ||||||
|
| |||||||
Construction & Engineering — 0.4% | ||||||||
EMCOR Group, Inc. | 52 | 3,931 | ||||||
|
| |||||||
Consumer Finance — 1.6% | ||||||||
Capital One Financial Corp. | 10 | 937 | ||||||
Credit Acceptance Corp.* | 25 | 8,680 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Consumer Finance — continued | ||||||||
Discover Financial Services | 106 | 7,471 | ||||||
|
| |||||||
17,088 | ||||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% |
| |||||||
Verizon Communications, Inc. | 429 | 21,568 | ||||||
|
| |||||||
Electric Utilities — 1.0% |
| |||||||
Edison International | 11 | 677 | ||||||
NextEra Energy, Inc. | 60 | 9,955 | ||||||
|
| |||||||
10,632 | ||||||||
|
| |||||||
Equity Real Estate Investment Trusts (REITs) — 3.1% |
| |||||||
GEO Group, Inc. (The) | 116 | 3,200 | ||||||
Hospitality Properties Trust | 97 | 2,778 | ||||||
Life Storage, Inc. | 55 | 5,342 | ||||||
Piedmont Office Realty Trust, Inc., Class A | 321 | 6,404 | ||||||
SBA Communications Corp.* | 44 | 7,249 | ||||||
SL Green Realty Corp. | 86 | 8,615 | ||||||
|
| |||||||
33,588 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.8% | ||||||||
Walgreens Boots Alliance, Inc. | 23 | 1,405 | ||||||
Walmart, Inc. | 217 | 18,603 | ||||||
|
| |||||||
20,008 | ||||||||
|
| |||||||
Food Products — 1.8% | ||||||||
Archer-Daniels-Midland Co. | 180 | 8,254 | ||||||
Conagra Brands, Inc. | 188 | 6,721 | ||||||
Pilgrim’s Pride Corp.* | 231 | 4,644 | ||||||
|
| |||||||
19,619 | ||||||||
|
| |||||||
Health Care Providers & Services — 6.9% | ||||||||
Anthem, Inc. | 59 | 14,044 | ||||||
Express Scripts Holding Co.* | 216 | 16,670 | ||||||
HCA Healthcare, Inc. | 45 | 4,627 | ||||||
Humana, Inc. | 77 | 22,888 | ||||||
McKesson Corp. | 15 | 1,934 | ||||||
Molina Healthcare, Inc.* | 63 | 6,161 | ||||||
WellCare Health Plans, Inc.* | 39 | 9,603 | ||||||
|
| |||||||
75,927 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.7% | ||||||||
Dunkin’ Brands Group, Inc. | 124 | 8,592 | ||||||
Hilton Worldwide Holdings, Inc. | 101 | 8,027 | ||||||
Hyatt Hotels Corp., Class A | 26 | 2,006 | ||||||
|
| |||||||
18,625 | ||||||||
|
| |||||||
Household Durables — 0.6% | ||||||||
Toll Brothers, Inc. | 185 | 6,839 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 25 |
Table of Contents
JPMorgan Intrepid Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF JUNE 30, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Household Products — 1.0% | ||||||||
Energizer Holdings, Inc. | 110 | 6,907 | ||||||
Procter & Gamble Co. (The) | 59 | 4,566 | ||||||
|
| |||||||
11,473 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers — 2.3% |
| |||||||
AES Corp. | 577 | 7,735 | ||||||
NRG Energy, Inc. | 268 | 8,237 | ||||||
Vistra Energy Corp.* | 382 | 9,031 | ||||||
|
| |||||||
25,003 | ||||||||
|
| |||||||
Insurance — 6.2% | ||||||||
Allstate Corp. (The) | 195 | 17,789 | ||||||
First American Financial Corp. | 18 | 926 | ||||||
Lincoln National Corp. | 101 | 6,256 | ||||||
MetLife, Inc. | 49 | 2,149 | ||||||
Primerica, Inc. | 57 | 5,717 | ||||||
Prudential Financial, Inc. | 24 | 2,197 | ||||||
Torchmark Corp. | 67 | 5,479 | ||||||
Travelers Cos., Inc. (The) | 190 | 23,294 | ||||||
Willis Towers Watson plc | 25 | 3,775 | ||||||
|
| |||||||
67,582 | ||||||||
|
| |||||||
Internet Software & Services — 0.8% | ||||||||
VeriSign, Inc.* | 65 | 8,960 | ||||||
|
| |||||||
IT Services — 1.8% | ||||||||
DXC Technology Co. | 87 | 6,989 | ||||||
International Business Machines Corp. | 65 | 9,136 | ||||||
Perspecta, Inc. | 43 | 891 | ||||||
Teradata Corp.* | 56 | 2,228 | ||||||
|
| |||||||
19,244 | ||||||||
|
| |||||||
Machinery — 1.9% | ||||||||
Caterpillar, Inc. | 136 | 18,451 | ||||||
Deere & Co. | 19 | 2,712 | ||||||
|
| |||||||
21,163 | ||||||||
|
| |||||||
Media — 4.3% | ||||||||
CBS Corp. (Non-Voting), Class B | 41 | 2,299 | ||||||
Charter Communications, Inc., Class A* | 40 | 11,670 | ||||||
Comcast Corp., Class A | 374 | 12,261 | ||||||
Sirius XM Holdings, Inc. | 1,298 | 8,785 | ||||||
Walt Disney Co. (The) | 118 | 12,326 | ||||||
|
| |||||||
47,341 | ||||||||
|
| |||||||
Metals & Mining — 1.9% | ||||||||
Alcoa Corp.* | 63 | 2,935 | ||||||
Freeport-McMoRan, Inc. | 467 | 8,065 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Metals & Mining — continued | ||||||||
Newmont Mining Corp. | 41 | 1,535 | ||||||
Steel Dynamics, Inc. | 178 | 8,165 | ||||||
|
| |||||||
20,700 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) — 0.7% |
| |||||||
Chimera Investment Corp. | 411 | 7,506 | ||||||
|
| |||||||
Multi-Utilities — 1.3% | ||||||||
CenterPoint Energy, Inc. | 286 | 7,936 | ||||||
MDU Resources Group, Inc. | 222 | 6,379 | ||||||
|
| |||||||
14,315 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 10.7% | ||||||||
Chevron Corp. | 153 | 19,401 | ||||||
ConocoPhillips | 408 | 28,419 | ||||||
Devon Energy Corp. | 162 | 7,117 | ||||||
HollyFrontier Corp. | 91 | 6,248 | ||||||
Marathon Oil Corp. | 79 | 1,640 | ||||||
Marathon Petroleum Corp. | 296 | 20,795 | ||||||
Occidental Petroleum Corp. | 62 | 5,188 | ||||||
PBF Energy, Inc., Class A | 49 | 2,063 | ||||||
Peabody Energy Corp. | 73 | 3,329 | ||||||
Valero Energy Corp. | 214 | 23,673 | ||||||
|
| |||||||
117,873 | ||||||||
|
| |||||||
Paper & Forest Products — 0.6% | ||||||||
Domtar Corp. | 134 | 6,411 | ||||||
|
| |||||||
Personal Products — 0.8% | ||||||||
Herbalife Nutrition Ltd.* | 166 | 8,934 | ||||||
Nu Skin Enterprises, Inc., Class A | 3 | 249 | ||||||
|
| |||||||
9,183 | ||||||||
|
| |||||||
Pharmaceuticals — 2.0% | ||||||||
Pfizer, Inc. | 608 | 22,055 | ||||||
|
| |||||||
Professional Services — 0.7% | ||||||||
Robert Half International, Inc. | 117 | 7,591 | ||||||
|
| |||||||
Real Estate Management & Development — 1.5% |
| |||||||
CBRE Group, Inc., Class A* | 186 | 8,875 | ||||||
Jones Lang LaSalle, Inc. | 48 | 7,918 | ||||||
|
| |||||||
16,793 | ||||||||
|
| |||||||
Road & Rail — 0.2% | ||||||||
Avis Budget Group, Inc.* | 60 | 1,940 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.5% |
| |||||||
Applied Materials, Inc. | 368 | 17,003 | ||||||
First Solar, Inc.* | 120 | 6,330 | ||||||
Lam Research Corp. | 60 | 10,336 |
SEE NOTES TO FINANCIAL STATEMENTS.
26 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued | ||||||||
Semiconductors & Semiconductor Equipment — continued |
| |||||||
Teradyne, Inc. | 136 | 5,158 | ||||||
|
| |||||||
38,827 | ||||||||
|
| |||||||
Software — 0.7% | ||||||||
VMware, Inc., Class A* | 52 | 7,687 | ||||||
|
| |||||||
Specialty Retail — 1.6% | ||||||||
Best Buy Co., Inc. | 38 | 2,827 | ||||||
Burlington Stores, Inc.* | 19 | 2,920 | ||||||
O’Reilly Automotive, Inc.* | 10 | 2,626 | ||||||
Urban Outfitters, Inc.* | 196 | 8,714 | ||||||
|
| |||||||
17,087 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 2.3% |
| |||||||
HP, Inc. | 534 | 12,116 | ||||||
NetApp, Inc. | 114 | 8,945 | ||||||
Seagate Technology plc | 71 | 4,004 | ||||||
|
| |||||||
25,065 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.6% | ||||||||
Michael Kors Holdings Ltd.* | 107 | 7,140 | ||||||
|
| |||||||
Tobacco — 0.3% | ||||||||
Philip Morris International, Inc. | 40 | 3,213 | ||||||
|
| |||||||
Trading Companies & Distributors — 0.7% | ||||||||
United Rentals, Inc.* | 53 | 7,883 | ||||||
|
| |||||||
Total Common Stocks | 1,044,699 | |||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 4.3% | ||||||||
Investment Companies — 4.3% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 1.80% (a) (b) | 47,528 | 47,528 | ||||||
|
| |||||||
Total Investments — 99.5% | 1,092,227 | |||||||
Other Assets Less Liabilities — 0.5% | 5,636 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,097,863 | ||||||
|
|
Percentages indicated are based on net assets.
Futures contracts outstanding as of June 30, 2018 (amounts in thousands, except number of contracts): | ||||||||||||||||||
DESCRIPTION | NUMBER OF CONTRACTS | EXPIRATION DATE | TRADING CURRENCY | NOTIONAL AMOUNT ($) | VALUE AND UNREALIZED APPRECIATION (DEPRECIATION) ($) | |||||||||||||
Long Contracts |
| |||||||||||||||||
S&P 500 E-Mini Index | 377 | 09/2018 | USD | 51,302 | (878 | ) | ||||||||||||
|
| |||||||||||||||||
(878 | ) | |||||||||||||||||
|
|
Abbreviations | ||
USD | United States Dollar | |
(a) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(b) | The rate shown is the current yield as of June 30, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 27 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | JPMorgan Intrepid Mid Cap Fund | ||||||||||
ASSETS: | �� | |||||||||||
Investments in non-affiliates, at value | $ | 3,964,283 | $ | 1,143,006 | $ | 812,181 | ||||||
Investments in affiliates, at value | 99,912 | 27,874 | 7,288 | |||||||||
Deposits at broker for futures contracts | 3,636 | 1,120 | 380 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 3,866 | 829 | 603 | |||||||||
Fund shares sold | 4,435 | 2,188 | 1,047 | |||||||||
Dividends from non-affiliates | 2,073 | 357 | 880 | |||||||||
Dividends from affiliates | 68 | 23 | 17 | |||||||||
Variation margin on futures contracts | 63 | 19 | 3 | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,078,336 | 1,175,416 | 822,399 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES: | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 26,107 | 3,505 | 3,892 | |||||||||
Fund shares redeemed | 317 | 1,797 | 1,233 | |||||||||
Accrued liabilities: | ||||||||||||
Investment advisory fees | 1,028 | 305 | 387 | |||||||||
Administration fees | 63 | — | 17 | |||||||||
Distribution fees | 74 | 63 | 108 | |||||||||
Service fees | 92 | 93 | 129 | |||||||||
Custodian and accounting fees | 20 | 9 | 6 | |||||||||
Audit fees | 20 | 20 | 24 | |||||||||
Printing and mailing cost | 26 | 15 | 22 | |||||||||
Legal fees | 4 | 1 | 1 | |||||||||
Registration fees | 8 | 1 | 13 | |||||||||
Other | 34 | 13 | 44 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 27,793 | 5,822 | 5,876 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 4,050,543 | $ | 1,169,594 | $ | 816,523 | ||||||
|
|
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
28 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | JPMorgan Intrepid Mid Cap Fund | ||||||||||
NET ASSETS: | ||||||||||||
Paid-in-Capital | $ | 2,808,640 | $ | 733,285 | $ | 561,640 | ||||||
Accumulated undistributed (distributions in excess of) net investment income | 21,226 | 4,093 | 1,461 | |||||||||
Accumulated net realized gains (losses) | 321,196 | 74,261 | 80,912 | |||||||||
Net unrealized appreciation (depreciation) | 899,481 | 357,955 | 172,510 | |||||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 4,050,543 | $ | 1,169,594 | $ | 816,523 | ||||||
|
|
|
|
|
| |||||||
Net Assets: | ||||||||||||
Class A | $ | 342,761 | $ | 104,167 | $ | 314,171 | ||||||
Class C | 4,698 | 37,416 | 62,925 | |||||||||
Class I | 95,252 | 196,798 | 296,876 | |||||||||
Class R2 | 2,239 | 40,763 | — | |||||||||
Class R3 | — | — | 13,823 | |||||||||
Class R4 | — | — | 1,157 | |||||||||
Class R5 | 5,718 | 201,539 | — | |||||||||
Class R6 | 3,599,875 | 588,911 | 127,571 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 4,050,543 | $ | 1,169,594 | $ | 816,523 | ||||||
|
|
|
|
|
| |||||||
Outstanding units of beneficial interest (shares) | ||||||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||||||
Class A | 8,352 | 1,763 | 13,801 | |||||||||
Class C | 115 | 645 | 3,273 | |||||||||
Class I | 2,256 | 3,278 | 12,364 | |||||||||
Class R2 | 56 | 703 | — | |||||||||
Class R3 | — | — | 609 | |||||||||
Class R4 | — | — | 48 | |||||||||
Class R5 | 136 | 3,397 | — | |||||||||
Class R6 | 86,873 | 9,928 | 5,306 | |||||||||
Net Asset Value (a): | ||||||||||||
Class A — Redemption price per share | $ | 41.04 | $ | 59.09 | $ | 22.76 | ||||||
Class C — Offering price per share (b) | 40.76 | 58.00 | 19.23 | |||||||||
Class I — Offering and redemption price per share | 42.22 | 60.04 | 24.01 | |||||||||
Class R2 — Offering and redemption price per share | 40.14 | 57.95 | — | |||||||||
Class R3 — Offering and redemption price per share | — | — | 22.70 | |||||||||
Class R4 — Offering and redemption price per share | — | — | 23.95 | |||||||||
Class R5 — Offering and redemption price per share | 42.11 | 59.32 | — | |||||||||
Class R6 — Offering and redemption price per share | 41.44 | 59.32 | 24.04 | |||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | ||||||
Class A maximum public offering price per share | $ | 43.31 | $ | 62.36 | $ | 24.02 | ||||||
|
|
|
|
|
| |||||||
Cost of investments in non-affiliates | $ | 3,064,545 | $ | 784,912 | $ | 639,638 | ||||||
Cost of investments in affiliates | 99,912 | 27,874 | 7,288 |
(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.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 29 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan Intrepid Sustainable Equity Fund | JPMorgan Intrepid Value Fund | |||||||
ASSETS: | ||||||||
Investments in non-affiliates, at value | $ | 20,981 | $ | 1,044,699 | ||||
Investments in affiliates, at value | 976 | 47,528 | ||||||
Deposits at broker for futures contracts | — | 2,035 | ||||||
Receivables: | ||||||||
Investment securities sold | — | 3,645 | ||||||
Fund shares sold | 27 | 1,236 | ||||||
Dividends from non-affiliates | 13 | 847 | ||||||
Dividends from affiliates | 1 | 52 | ||||||
Variation margin on futures contracts | — | 37 | ||||||
Due from adviser | 3 | — | ||||||
|
|
|
| |||||
Total Assets | 22,001 | 1,100,079 | ||||||
|
|
|
| |||||
LIABILITIES: | ||||||||
Payables: | ||||||||
Due to custodian | — | — | (a) | |||||
Investment securities purchased | — | 615 | ||||||
Fund shares redeemed | — | (a) | 864 | |||||
Accrued liabilities: | ||||||||
Investment advisory fees | — | 257 | ||||||
Administration fees | — | 12 | ||||||
Distribution fees | 4 | 36 | ||||||
Service fees | — | 190 | ||||||
Custodian and accounting fees | 5 | 8 | ||||||
Audit fees | 20 | 21 | ||||||
Printing and mailing cost | 5 | 84 | ||||||
Legal fees | 11 | 1 | ||||||
Registration fees | 8 | 30 | ||||||
Other | 2 | 98 | ||||||
|
|
|
| |||||
Total Liabilities | 55 | 2,216 | ||||||
|
|
|
| |||||
Net Assets | $ | 21,946 | $ | 1,097,863 | ||||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
30 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund | JPMorgan Intrepid Value Fund | |||||||
NET ASSETS: | ||||||||
Paid-in-Capital | $ | 16,049 | $ | 825,448 | ||||
Accumulated undistributed (distributions in excess of) net investment income | 95 | 376 | ||||||
Accumulated net realized gains (losses) | 1,022 | 74,455 | ||||||
Net unrealized appreciation (depreciation) | 4,780 | 197,584 | ||||||
�� |
|
|
|
| ||||
Total Net Assets | $ | 21,946 | $ | 1,097,863 | ||||
|
|
|
| |||||
Net Assets: | ||||||||
Class A | $ | 9,497 | $ | 86,400 | ||||
Class C | 3,277 | 23,686 | ||||||
Class I | 9,172 | 772,556 | ||||||
Class R2 | — | 5,781 | ||||||
Class R5 | — | 90,714 | ||||||
Class R6 | — | 118,726 | ||||||
|
|
|
| |||||
Total | $ | 21,946 | $ | 1,097,863 | ||||
|
|
|
| |||||
Outstanding units of beneficial interest (shares) | ||||||||
($0.0001 par value; unlimited number of shares authorized): | ||||||||
Class A | 230 | 2,502 | ||||||
Class C | 81 | 695 | ||||||
Class I | 221 | 22,260 | ||||||
Class R2 | — | 169 | ||||||
Class R5 | — | 2,607 | ||||||
Class R6 | — | 3,411 | ||||||
Net Asset Value (a): | ||||||||
Class A — Redemption price per share | $ | 41.28 | $ | 34.53 | ||||
Class C — Offering price per share (b) | 40.44 | 34.06 | ||||||
Class I — Offering and redemption price per share | 41.56 | 34.71 | ||||||
Class R2 — Offering and redemption price per share | — | 34.26 | ||||||
Class R5 — Offering and redemption price per share | — | 34.80 | ||||||
Class R6 — Offering and redemption price per share | — | 34.80 | ||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | ||||
Class A maximum public offering price per share | $ | 43.57 | $ | 36.44 | ||||
|
|
|
| |||||
Cost of investments in non-affiliates | $ | 16,201 | $ | 846,237 | ||||
Cost of investments in affiliates | 976 | 47,528 |
(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.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 31 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2018
(Amounts in thousands)
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | JPMorgan Intrepid Mid Cap Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income from affiliates | $ | — | (a) | $ | — | (a) | $ | — | (a) | |||
Dividend income from non-affiliates | 76,287 | 14,319 | 16,148 | |||||||||
Dividend income from affiliates | 980 | 279 | 200 | |||||||||
Non-cash dividend income from non-affiliates | 4,508 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 81,775 | 14,598 | 16,348 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES: | ||||||||||||
Investment advisory fees | 16,528 | 5,688 | 5,954 | |||||||||
Administration fees | 3,358 | 925 | 744 | |||||||||
Distribution fees: | ||||||||||||
Class A | 405 | 261 | 805 | |||||||||
Class C | 51 | 297 | 539 | |||||||||
Class R2 | 13 | 77 | — | |||||||||
Class R3 | — | — | 32 | |||||||||
Service fees: | ||||||||||||
Class A | 405 | 261 | 805 | |||||||||
Class C | 17 | 99 | 179 | |||||||||
Class I | 251 | 471 | 764 | |||||||||
Class R2 | 6 | 38 | — | |||||||||
Class R3 | — | — | 32 | |||||||||
Class R4 | — | — | 1 | |||||||||
Class R5 | 5 | 212 | — | |||||||||
Custodian and accounting fees | 117 | 43 | 39 | |||||||||
Professional fees | 97 | 63 | 65 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | 36 | 29 | 28 | |||||||||
Printing and mailing costs | 73 | 22 | 88 | |||||||||
Registration and filing fees | 94 | 88 | 123 | |||||||||
Transfer agency fees (See Note 2.D.) | 56 | 30 | 88 | |||||||||
Other | 69 | 24 | 24 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 21,581 | 8,628 | 10,310 | |||||||||
|
|
|
|
|
| |||||||
Less fees waived | (4,365 | ) | (2,803 | ) | (1,291 | ) | ||||||
Less expense reimbursements | (19 | ) | (1 | ) | (3 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 17,197 | 5,824 | 9,016 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 64,578 | 8,774 | 7,332 | |||||||||
|
|
|
|
|
| |||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||
Investments in non-affiliates | 406,727 | 134,203 | 102,190 | |||||||||
Futures contracts | 9,720 | 2,260 | 517 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 416,447 | 136,463 | 102,707 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||
Investments in non-affiliates | 233,480 | 82,098 | (9,603 | ) | ||||||||
Futures contracts | (210 | ) | (67 | ) | (47 | ) | ||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation | 233,270 | 82,031 | (9,650 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized/unrealized gains (losses) | 649,717 | 218,494 | 93,057 | |||||||||
|
|
|
|
|
| |||||||
Change in net assets resulting from operations | $ | 714,295 | $ | 227,268 | $ | 100,389 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
32 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Sustainable Equity Fund | JPMorgan Intrepid Value Fund | |||||||
INVESTMENT INCOME: | ||||||||
Interest income from affiliates | $ | — | (a) | $ | 1 | |||
Dividend income from non-affiliates | 466 | 23,727 | ||||||
Dividend income from affiliates | 7 | 284 | ||||||
Non-cash dividend income from non-affiliates | — | 1,474 | ||||||
|
|
|
| |||||
Total investment income | 473 | 25,486 | ||||||
|
|
|
| |||||
EXPENSES: | ||||||||
Investment advisory fees | 103 | 4,402 | ||||||
Administration fees | 17 | 894 | ||||||
Distribution fees: | ||||||||
Class A | 23 | 233 | ||||||
Class C | 32 | 218 | ||||||
Class R2 | — | 83 | ||||||
Service fees: | ||||||||
Class A | 23 | 233 | ||||||
Class C | 10 | 73 | ||||||
Class I | 18 | 1,847 | ||||||
Class R2 | — | 41 | ||||||
Class R5 | — | 90 | ||||||
Custodian and accounting fees | 24 | 39 | ||||||
Professional fees | 59 | 66 | ||||||
Trustees’ and Chief Compliance Officer’s fees | 25 | 29 | ||||||
Printing and mailing costs | 7 | 81 | ||||||
Registration and filing fees | 45 | 111 | ||||||
Transfer agency fees (See Note 2.D.) | 5 | 68 | ||||||
Other | 5 | 27 | ||||||
|
|
|
| |||||
Total expenses | 396 | 8,535 | ||||||
|
|
|
| |||||
Less fees waived | (172 | ) | (1,736 | ) | ||||
Less expense reimbursements | (36 | ) | (13 | ) | ||||
|
|
|
| |||||
Net expenses | 188 | 6,786 | ||||||
|
|
|
| |||||
Net investment income (loss) | 285 | 18,700 | ||||||
|
|
|
| |||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||
Net realized gain (loss) on transactions from: | ||||||||
Investments in non-affiliates | 1,537 | 124,763 | ||||||
Futures contracts | — | 2,970 | ||||||
|
|
|
| |||||
Net realized gain (loss) | 1,537 | 127,733 | ||||||
|
|
|
| |||||
Change in net unrealized appreciation/depreciation on: | ||||||||
Investments in non-affiliates | 343 | (7,073 | ) | |||||
Futures contracts | — | (830 | ) | |||||
|
|
|
| |||||
Change in net unrealized appreciation/depreciation | 343 | (7,903 | ) | |||||
|
|
|
| |||||
Net realized/unrealized gains (losses) | 1,880 | 119,830 | ||||||
|
|
|
| |||||
Change in net assets resulting from operations | $ | 2,165 | $ | 138,530 | ||||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 33 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 64,578 | $ | 49,592 | $ | 8,774 | $ | 8,495 | ||||||||
Net realized gain (loss) | 416,447 | 384,294 | 136,463 | 94,266 | ||||||||||||
Change in net unrealized appreciation/depreciation | 233,270 | 169,242 | 82,031 | 93,909 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 714,295 | 603,128 | 227,268 | 196,670 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (1,172 | ) | (398 | ) | (505 | ) | (532 | ) | ||||||||
From net realized gains | (9,595 | ) | (1,471 | ) | — | — | ||||||||||
Class C | ||||||||||||||||
From net investment income | — | (34 | ) | — | (40 | ) | ||||||||||
From net realized gains | (491 | ) | (311 | ) | — | — | ||||||||||
Class I | ||||||||||||||||
From net investment income | (610 | ) | (2,317 | ) | (1,170 | ) | (1,415 | ) | ||||||||
From net realized gains | (6,861 | ) | (5,697 | ) | — | — | ||||||||||
Class R2 | ||||||||||||||||
From net investment income | (15 | ) | (20 | ) | (12 | ) | (27 | ) | ||||||||
From net realized gains | (242 | ) | (104 | ) | — | — | ||||||||||
Class R5 | ||||||||||||||||
From net investment income | (71 | ) | (49 | ) | (1,822 | ) | (1,807 | ) | ||||||||
From net realized gains | (468 | ) | (100 | ) | — | — | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | (64,689 | ) | (49,652 | ) | (5,125 | ) | (5,624 | ) | ||||||||
From net realized gains | (402,574 | ) | (94,209 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (486,788 | ) | (154,362 | ) | (8,634 | ) | (9,445 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (259,821 | ) | (32,461 | ) | (68,163 | ) | (156,325 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (32,314 | ) | 416,305 | 150,471 | 30,900 | |||||||||||
Beginning of period | 4,082,857 | 3,666,552 | 1,019,123 | 988,223 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 4,050,543 | $ | 4,082,857 | $ | 1,169,594 | $ | 1,019,123 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 21,226 | $ | 23,487 | $ | 4,093 | $ | 4,113 | ||||||||
|
|
|
|
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
34 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund | JPMorgan Intrepid Sustainable Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 7,332 | $ | 5,449 | $ | 285 | $ | 129 | ||||||||
Net realized gain (loss) | 102,707 | 67,839 | 1,537 | 2,415 | ||||||||||||
Change in net unrealized appreciation/depreciation | (9,650 | ) | 61,410 | 343 | 662 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | 100,389 | 134,698 | 2,165 | 3,206 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Class A | ||||||||||||||||
From net investment income | (2,004 | ) | (1,163 | ) | (109 | ) | (79 | ) | ||||||||
From net realized gains | (23,010 | ) | (64 | ) | (484 | ) | — | |||||||||
Class C | ||||||||||||||||
From net investment income | (32 | ) | (111 | ) | (18 | ) | (21 | ) | ||||||||
From net realized gains | (5,654 | ) | (20 | ) | (208 | ) | — | |||||||||
Class I | ||||||||||||||||
From net investment income | (2,355 | ) | (1,250 | ) | (102 | ) | (47 | ) | ||||||||
From net realized gains | (20,208 | ) | (51 | ) | (379 | ) | — | |||||||||
Class R3 (a) | ||||||||||||||||
From net investment income | (103 | ) | — | (b) | — | — | ||||||||||
From net realized gains | (935 | ) | — | (b) | — | — | ||||||||||
Class R4 (a) | ||||||||||||||||
From net investment income | (1 | ) | — | (b) | — | — | ||||||||||
From net realized gains | (8 | ) | — | (b) | — | — | ||||||||||
Class R6 | ||||||||||||||||
From net investment income | (2,366 | ) | (1,834 | ) | — | — | ||||||||||
From net realized gains | (14,905 | ) | (59 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (71,581 | ) | (4,552 | ) | (1,300 | ) | (147 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (102,024 | ) | (205,002 | ) | 3,037 | (4,054 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (73,216 | ) | (74,856 | ) | 3,902 | (995 | ) | |||||||||
Beginning of period | 889,739 | 964,595 | 18,044 | 19,039 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 816,523 | $ | 889,739 | $ | 21,946 | $ | 18,044 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 1,461 | $ | 1,455 | $ | 95 | $ | 57 | ||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Intrepid Mid Cap Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 35 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Intrepid Value Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: |
| |||||||
Net investment income (loss) | $ | 18,700 | $ | 20,561 | ||||
Net realized gain (loss) | 127,733 | 154,933 | ||||||
Change in net unrealized appreciation/depreciation | (7,903 | ) | 21,719 | |||||
|
|
|
| |||||
Change in net assets resulting from operations | 138,530 | 197,213 | ||||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Class A | ||||||||
From net investment income | (1,401 | ) | (1,822 | ) | ||||
From net realized gains | (13,008 | ) | (976 | ) | ||||
Class C | ||||||||
From net investment income | (343 | ) | (427 | ) | ||||
From net realized gains | (3,459 | ) | (328 | ) | ||||
Class I | ||||||||
From net investment income | (12,174 | ) | (14,704 | ) | ||||
From net realized gains | (91,343 | ) | (6,865 | ) | ||||
Class R2 | ||||||||
From net investment income | (234 | ) | (251 | ) | ||||
From net realized gains | (2,692 | ) | (158 | ) | ||||
Class R5 | ||||||||
From net investment income | (1,696 | ) | (1,707 | ) | ||||
From net realized gains | (11,535 | ) | (727 | ) | ||||
Class R6 | ||||||||
From net investment income | (2,924 | ) | (1,965 | ) | ||||
From net realized gains | (21,060 | ) | (845 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (161,869 | ) | (30,775 | ) | ||||
|
|
|
| |||||
CAPITAL TRANSACTIONS: | ||||||||
Change in net assets resulting from capital transactions | (111,642 | ) | (630,829 | ) | ||||
|
|
|
| |||||
NET ASSETS: | ||||||||
Change in net assets | (134,981 | ) | (464,391 | ) | ||||
Beginning of period | 1,232,844 | 1,697,235 | ||||||
|
|
|
| |||||
End of period | $ | 1,097,863 | $ | 1,232,844 | ||||
|
|
|
| |||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 376 | $ | 985 | ||||
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
36 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 355,797 | $ | 5,999 | $ | 30,048 | $ | 27,666 | ||||||||
Distributions reinvested | 10,595 | 1,826 | 308 | 357 | ||||||||||||
Cost of shares redeemed | (75,779 | ) | (21,894 | ) | (36,549 | ) | (45,136 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 290,613 | $ | (14,069 | ) | $ | (6,193 | ) | $ | (17,113 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 268 | $ | 430 | $ | 5,393 | $ | 4,411 | ||||||||
Distributions reinvested | 458 | 319 | — | 29 | ||||||||||||
Cost of shares redeemed | (7,072 | ) | (4,382 | ) | (18,709 | ) | (18,954 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (6,346 | ) | $ | (3,633 | ) | $ | (13,316 | ) | $ | (14,514 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 56,178 | $ | 34,005 | $ | 25,110 | $ | 46,031 | ||||||||
Distributions reinvested | 7,177 | 1,830 | 1,069 | 1,050 | ||||||||||||
Cost of shares redeemed | (192,805 | ) | (93,190 | ) | (49,004 | ) | (46,388 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (129,450 | ) | $ | (57,355 | ) | $ | (22,825 | ) | $ | 693 | |||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 443 | $ | 786 | $ | 42,516 | $ | 1,831 | ||||||||
Distributions reinvested | 91 | 61 | 3 | 6 | ||||||||||||
Cost of shares redeemed | (1,855 | ) | (2,478 | ) | (8,188 | ) | (1,672 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | (1,321 | ) | $ | (1,631 | ) | $ | 34,331 | $ | 165 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 1,187 | $ | 1,408 | $ | 37,471 | $ | 26,918 | ||||||||
Distributions reinvested | 334 | 80 | 1,534 | 1,528 | ||||||||||||
Cost of shares redeemed | (752 | ) | (1,205 | ) | (69,349 | ) | (75,964 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 769 | $ | 283 | $ | (30,344 | ) | $ | (47,518 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 269,386 | $ | 168,666 | $ | 137,691 | $ | 17,417 | ||||||||
Distributions reinvested | 467,260 | 143,577 | 5,125 | 5,624 | ||||||||||||
Cost of shares redeemed | (1,150,732 | ) | (268,299 | ) | (172,632 | ) | (101,079 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | (414,086 | ) | $ | 43,944 | $ | (29,816 | ) | $ | (78,038 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (259,821 | ) | $ | (32,461 | ) | $ | (68,163 | ) | $ | (156,325 | ) | ||||
|
|
|
|
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 37 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Intrepid America Fund | JPMorgan Intrepid Growth Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 8,663 | 163 | 539 | 630 | ||||||||||||
Reinvested | 265 | 49 | 6 | 8 | ||||||||||||
Redeemed | (1,851 | ) | (586 | ) | (647 | ) | (1,016 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 7,077 | (374 | ) | (102 | ) | (378 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 6 | 11 | 99 | 101 | ||||||||||||
Reinvested | 12 | 9 | — | 1 | ||||||||||||
Redeemed | (170 | ) | (120 | ) | (351 | ) | (434 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (152 | ) | (100 | ) | (252 | ) | (332 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 1,331 | 897 | 442 | 1,020 | ||||||||||||
Reinvested | 175 | 48 | 19 | 24 | ||||||||||||
Redeemed | (4,665 | ) | (2,482 | ) | (898 | ) | (1,023 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (3,159 | ) | (1,537 | ) | (437 | ) | 21 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 12 | 21 | 738 | 43 | ||||||||||||
Reinvested | 2 | 2 | — | (a) | — | (a) | ||||||||||
Redeemed | (47 | ) | (69 | ) | (146 | ) | (38 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | (33 | ) | (46 | ) | 592 | 5 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 29 | 37 | 664 | 602 | ||||||||||||
Reinvested | 8 | 2 | 27 | 35 | ||||||||||||
Redeemed | (18 | ) | (32 | ) | (1,235 | ) | (1,762 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 19 | 7 | (544 | ) | (1,125 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 6,583 | 4,471 | 2,543 | 367 | ||||||||||||
Reinvested | 11,580 | 3,844 | 91 | 129 | ||||||||||||
Redeemed | (27,858 | ) | (7,129 | ) | (3,065 | ) | (2,190 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | (9,695 | ) | 1,186 | (431 | ) | (1,694 | ) | |||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
38 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Mid Cap Fund | JPMorgan Intrepid Sustainable Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 64,235 | $ | 81,290 | $ | 2,195 | $ | 997 | ||||||||
Distributions reinvested | 22,481 | 1,110 | 573 | 79 | ||||||||||||
Cost of shares redeemed | (86,519 | ) | (131,036 | ) | (1,593 | ) | (3,288 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 197 | $ | (48,636 | ) | $ | 1,175 | $ | (2,212 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 6,057 | $ | 14,601 | $ | 273 | $ | 287 | ||||||||
Distributions reinvested | 4,798 | 103 | 209 | 21 | ||||||||||||
Cost of shares redeemed | (31,724 | ) | (33,172 | ) | (2,534 | ) | (2,328 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (20,869 | ) | $ | (18,468 | ) | $ | (2,052 | ) | $ | (2,020 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 76,578 | $ | 143,668 | $ | 4,981 | $ | 1,296 | ||||||||
Distributions reinvested | 19,557 | 1,101 | 463 | 31 | ||||||||||||
Cost of shares redeemed | (120,847 | ) | (130,084 | ) | (1,530 | ) | (1,149 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (24,712 | ) | $ | 14,685 | $ | 3,914 | $ | 178 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 6,268 | $ | 9,663 | $ | — | $ | — | ||||||||
Distributions reinvested | 989 | — | (b) | — | — | |||||||||||
Cost of shares redeemed | (2,523 | ) | (869 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | 4,734 | $ | 8,794 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | 1,277 | $ | 20 | $ | — | $ | — | ||||||||
Distributions reinvested | 9 | — | (b) | — | — | |||||||||||
Cost of shares redeemed | (105 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | 1,181 | $ | 20 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 69,523 | $ | 12,224 | $ | — | $ | — | ||||||||
Distributions reinvested | 17,215 | 1,889 | — | — | ||||||||||||
Cost of shares redeemed | (149,293 | ) | (175,510 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | (62,555 | ) | $ | (161,397 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (102,024 | ) | $ | (205,002 | ) | $ | 3,037 | $ | (4,054 | ) | |||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Intrepid Mid Cap Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 39 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Intrepid Mid Cap Fund | JPMorgan Intrepid Sustainable Equity Fund | |||||||||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 2,794 | 3,903 | 53 | 27 | ||||||||||||
Reinvested | 1,000 | 53 | 14 | 2 | ||||||||||||
Redeemed | (3,785 | ) | (6,167 | ) | (39 | ) | (91 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 9 | (2,211 | ) | 28 | (62 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 313 | 814 | 6 | 8 | ||||||||||||
Reinvested | 253 | 6 | 5 | 1 | ||||||||||||
Redeemed | (1,618 | ) | (1,823 | ) | (62 | ) | (66 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (1,052 | ) | (1,003 | ) | (51 | ) | (57 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 3,189 | 6,474 | 119 | 34 | ||||||||||||
Reinvested | 824 | 50 | 11 | 1 | ||||||||||||
Redeemed | (5,013 | ) | (5,834 | ) | (36 | ) | (32 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (1,000 | ) | 690 | 94 | 3 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Issued | 275 | 441 | — | — | ||||||||||||
Reinvested | 44 | — | (b) | — | — | |||||||||||
Redeemed | (111 | ) | (40 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | 208 | 401 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Issued | 51 | 1 | — | — | ||||||||||||
Reinvested | — | (b) | — | (b) | — | — | ||||||||||
Redeemed | (4 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | 47 | 1 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 2,860 | 548 | — | — | ||||||||||||
Reinvested | 724 | 87 | — | — | ||||||||||||
Redeemed | (6,187 | ) | (7,657 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | (2,603 | ) | (7,022 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective September 9, 2016 for JPMorgan Intrepid Mid Cap Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
40 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
JPMorgan Intrepid Value Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
CAPITAL TRANSACTIONS: | ||||||||
Class A | ||||||||
Proceeds from shares issued | $ | 19,635 | $ | 20,073 | ||||
Distributions reinvested | 13,421 | 2,584 | ||||||
Cost of shares redeemed | (40,025 | ) | (186,659 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class A capital transactions | $ | (6,969 | ) | $ | (164,002 | ) | ||
|
|
|
| |||||
Class C | ||||||||
Proceeds from shares issued | $ | 1,990 | $ | 1,926 | ||||
Distributions reinvested | 3,617 | 698 | ||||||
Cost of shares redeemed | (17,911 | ) | (14,665 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class C capital transactions | $ | (12,304 | ) | $ | (12,041 | ) | ||
|
|
|
| |||||
Class I | ||||||||
Proceeds from shares issued | $ | 195,675 | $ | 206,583 | ||||
Distributions reinvested | 102,090 | 19,832 | ||||||
Cost of shares redeemed | (396,689 | ) | (678,570 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class I capital transactions | $ | (98,924 | ) | $ | (452,155 | ) | ||
|
|
|
| |||||
Class R2 | ||||||||
Proceeds from shares issued | $ | 7,759 | $ | 6,817 | ||||
Distributions reinvested | 2,532 | 347 | ||||||
Cost of shares redeemed | (23,607 | ) | (7,671 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R2 capital transactions | $ | (13,316 | ) | $ | (507 | ) | ||
|
|
|
| |||||
Class R5 | ||||||||
Proceeds from shares issued | $ | 16,647 | $ | 14,877 | ||||
Distributions reinvested | 13,231 | 2,434 | ||||||
Cost of shares redeemed | (23,522 | ) | (28,444 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R5 capital transactions | $ | 6,356 | $ | (11,133 | ) | |||
|
|
|
| |||||
Class R6 | ||||||||
Proceeds from shares issued | $ | 63,524 | $ | 34,643 | ||||
Distributions reinvested | 23,588 | 2,810 | ||||||
Cost of shares redeemed | (73,597 | ) | (28,444 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R6 capital transactions | $ | 13,515 | $ | 9,009 | ||||
|
|
|
| |||||
Total change in net assets resulting from capital transactions | $ | (111,642 | ) | $ | (630,829 | ) | ||
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 41 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Intrepid Value Fund | ||||||||
Year Ended June 30, 2018 | Year Ended June 30, 2017 | |||||||
SHARE TRANSACTIONS: |
| |||||||
Class A |
| |||||||
Issued | 536 | 602 | ||||||
Reinvested | 392 | 76 | ||||||
Redeemed | (1,124 | ) | (5,697 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | (196 | ) | (5,019 | ) | ||||
|
|
|
| |||||
Class C | ||||||||
Issued | 57 | 57 | ||||||
Reinvested | 107 | 21 | ||||||
Redeemed | (493 | ) | (440 | ) | ||||
|
|
|
| |||||
Change in Class C Shares | (329 | ) | (362 | ) | ||||
|
|
|
| |||||
Class I | ||||||||
Issued | 5,456 | 6,068 | ||||||
Reinvested | 2,964 | 576 | ||||||
Redeemed | (11,003 | ) | (20,858 | ) | ||||
|
|
|
| |||||
Change in Class I Shares | (2,583 | ) | (14,214 | ) | ||||
|
|
|
| |||||
Class R2 | ||||||||
Issued | 220 | 203 | ||||||
Reinvested | 74 | 10 | ||||||
Redeemed | (683 | ) | (226 | ) | ||||
|
|
|
| |||||
Change in Class R2 Shares | (389 | ) | (13 | ) | ||||
|
|
|
| |||||
Class R5 | ||||||||
Issued | 463 | 438 | ||||||
Reinvested | 383 | 71 | ||||||
Redeemed | (647 | ) | (826 | ) | ||||
|
|
|
| |||||
Change in Class R5 Shares | 199 | (317 | ) | |||||
|
|
|
| |||||
Class R6 | ||||||||
Issued | 1,778 | 1,044 | ||||||
Reinvested | 683 | 81 | ||||||
Redeemed | (2,083 | ) | (837 | ) | ||||
|
|
|
| |||||
Change in Class R6 Shares | 378 | 288 | ||||||
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
42 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 43 |
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 | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Intrepid America Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 39.06 | $ | 0.35 | $ | 6.41 | $ | 6.76 | $ | (0.48 | ) | $ | (4.30 | ) | $ | (4.78 | ) | |||||||||||
Year Ended June 30, 2017 | 34.75 | 0.28 | 5.30 | 5.58 | (0.27 | ) | (1.00 | ) | (1.27 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 38.08 | 0.34 | (1.15 | ) | (0.81 | ) | (0.27 | ) | (2.25 | ) | (2.52 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.28 | 0.44 | 2.57 | 3.01 | (0.38 | ) | (1.83 | ) | (2.21 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.76 | 0.30 | 7.49 | 7.79 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.59 | 0.25 | 6.22 | 6.47 | — | (4.30 | ) | (4.30 | ) | |||||||||||||||||||
Year Ended June 30, 2017 | 34.37 | 0.09 | 5.24 | 5.33 | (0.11 | ) | (1.00 | ) | (1.11 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 37.74 | 0.18 | (1.15 | ) | (0.97 | ) | (0.15 | ) | (2.25 | ) | (2.40 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 36.99 | 0.22 | 2.57 | 2.79 | (0.21 | ) | (1.83 | ) | (2.04 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.53 | 0.13 | 7.42 | 7.55 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 39.87 | 0.66 | 6.35 | 7.01 | (0.36 | ) | (4.30 | ) | (4.66 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.48 | 0.39 | 5.41 | 5.80 | (0.41 | ) | (1.00 | ) | (1.41 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 38.49 | 0.39 | (1.09 | ) | (0.70 | ) | (0.06 | ) | (2.25 | ) | (2.31 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.61 | 0.53 | 2.61 | 3.14 | (0.43 | ) | (1.83 | ) | (2.26 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 30.00 | 0.38 | 7.56 | 7.94 | (0.33 | ) | — | (0.33 | ) | |||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.18 | 0.36 | 6.14 | 6.50 | (0.24 | ) | (4.30 | ) | (4.54 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 34.01 | 0.19 | 5.17 | 5.36 | (0.19 | ) | (1.00 | ) | (1.19 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 37.45 | 0.27 | (1.15 | ) | (0.88 | ) | (0.31 | ) | (2.25 | ) | (2.56 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 36.82 | 0.33 | 2.55 | 2.88 | (0.42 | ) | (1.83 | ) | (2.25 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.43 | 0.21 | 7.40 | 7.61 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 39.91 | 0.62 | 6.47 | 7.09 | (0.59 | ) | (4.30 | ) | (4.89 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.53 | 0.46 | 5.40 | 5.86 | (0.48 | ) | (1.00 | ) | (1.48 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 38.41 | 0.41 | (1.04 | ) | (0.63 | ) | — | (2.25 | ) | (2.25 | ) | |||||||||||||||||
Year Ended June 30, 2015 | 37.54 | 0.60 | 2.61 | 3.21 | (0.51 | ) | (1.83 | ) | (2.34 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.94 | 0.46 | 7.54 | 8.00 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 39.34 | 0.66 | 6.37 | 7.03 | (0.63 | ) | (4.30 | ) | (4.93 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 35.03 | 0.49 | 5.33 | 5.82 | (0.51 | ) | (1.00 | ) | (1.51 | ) | ||||||||||||||||||
November 2, 2015 (f) through June 30, 2016 | 39.15 | 0.41 | (1.77 | ) | (1.36 | ) | (0.51 | ) | (2.25 | ) | (2.76 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
44 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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 | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 41.04 | 17.77 | % | $ | 342,761 | 0.86 | % | 0.85 | % | 1.01 | % | 80 | % | |||||||||||||
39.06 | 16.27 | 49,774 | 1.03 | 0.76 | 1.08 | 95 | ||||||||||||||||||||
34.75 | (2.08 | ) | 57,303 | 1.04 | 0.96 | 1.15 | 70 | |||||||||||||||||||
38.08 | 8.27 | 184,225 | 1.03 | 1.16 | 1.11 | 49 | ||||||||||||||||||||
37.28 | 26.26 | 97,155 | 1.04 | 0.90 | 1.05 | 67 | ||||||||||||||||||||
40.76 | 17.17 | 4,698 | 1.42 | 0.63 | 1.51 | 80 | ||||||||||||||||||||
38.59 | 15.69 | 10,306 | 1.53 | 0.25 | 1.57 | 95 | ||||||||||||||||||||
34.37 | (2.55 | ) | 12,599 | 1.54 | 0.50 | 1.62 | 70 | |||||||||||||||||||
37.74 | 7.72 | 14,978 | 1.53 | 0.58 | 1.56 | 49 | ||||||||||||||||||||
36.99 | 25.62 | 8,774 | 1.54 | 0.39 | 1.55 | 67 | ||||||||||||||||||||
42.22 | 18.06 | 95,252 | 0.66 | 1.59 | 0.75 | 80 | ||||||||||||||||||||
39.87 | 16.58 | 215,888 | 0.76 | 1.03 | 0.77 | 95 | ||||||||||||||||||||
35.48 | (1.77 | ) | 246,679 | 0.74 | 1.04 | 0.75 | 70 | |||||||||||||||||||
38.49 | 8.56 | 1,492,209 | 0.75 | 1.37 | 0.76 | 49 | ||||||||||||||||||||
37.61 | 26.56 | 1,514,180 | 0.79 | 1.14 | 0.80 | 67 | ||||||||||||||||||||
40.14 | 17.47 | 2,239 | 1.15 | 0.90 | 1.26 | 80 | ||||||||||||||||||||
38.18 | 15.98 | 3,394 | 1.27 | 0.52 | 1.41 | 95 | ||||||||||||||||||||
34.01 | (2.30 | ) | 4,584 | 1.29 | 0.78 | 1.46 | 70 | |||||||||||||||||||
37.45 | 8.01 | 2,923 | 1.28 | 0.88 | 1.35 | 49 | ||||||||||||||||||||
36.82 | 25.93 | 166 | 1.29 | 0.64 | 1.30 | 67 | ||||||||||||||||||||
42.11 | 18.26 | 5,718 | 0.48 | 1.47 | 0.60 | 80 | ||||||||||||||||||||
39.91 | 16.75 | 4,681 | 0.59 | 1.20 | 0.63 | 95 | ||||||||||||||||||||
35.53 | (1.57 | ) | 3,920 | 0.54 | 1.08 | 0.55 | 70 | |||||||||||||||||||
38.41 | 8.76 | 2,015,302 | 0.55 | 1.56 | 0.55 | 49 | ||||||||||||||||||||
37.54 | 26.84 | 1,363,358 | 0.58 | 1.35 | 0.59 | 67 | ||||||||||||||||||||
41.44 | 18.38 | 3,599,875 | 0.39 | 1.59 | 0.49 | 80 | ||||||||||||||||||||
39.34 | 16.91 | 3,798,814 | 0.49 | 1.30 | 0.49 | 95 | ||||||||||||||||||||
35.03 | (3.39 | ) | 3,341,467 | 0.49 | 1.78 | 0.50 | 70 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 45 |
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 | ||||||||||||||||
JPMorgan Intrepid Growth Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended June 30, 2018 | $ | 48.60 | $ | 0.23 | $ | 10.51 | $ | 10.74 | $ | (0.25 | ) | |||||||||
Year Ended June 30, 2017 | 40.37 | 0.22 | 8.27 | 8.49 | (0.26 | ) | ||||||||||||||
Year Ended June 30, 2016 | 40.99 | 0.27 | (0.63 | ) | (0.36 | ) | (0.26 | ) | ||||||||||||
Year Ended June 30, 2015 | 37.05 | 0.25 | 3.88 | 4.13 | (0.19 | ) | ||||||||||||||
Year Ended June 30, 2014 | 29.36 | 0.18 | (f) | 7.64 | 7.82 | (0.13 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended June 30, 2018 | 47.72 | (0.04 | ) | 10.32 | 10.28 | — | ||||||||||||||
Year Ended June 30, 2017 | 39.63 | — | (g) | 8.13 | 8.13 | (0.04 | ) | |||||||||||||
Year Ended June 30, 2016 | 40.26 | 0.07 | (0.61 | ) | (0.54 | ) | (0.09 | ) | ||||||||||||
Year Ended June 30, 2015 | 36.45 | 0.05 | 3.81 | 3.86 | (0.05 | ) | ||||||||||||||
Year Ended June 30, 2014 | 28.93 | 0.01 | (f) | 7.52 | 7.53 | (0.01 | ) | |||||||||||||
Class I | ||||||||||||||||||||
Year Ended June 30, 2018 | 49.34 | 0.38 | 10.68 | 11.06 | (0.36 | ) | ||||||||||||||
Year Ended June 30, 2017 | 40.99 | 0.34 | 8.40 | 8.74 | (0.39 | ) | ||||||||||||||
Year Ended June 30, 2016 | 41.27 | 0.29 | (0.55 | ) | (0.26 | ) | (0.02 | ) | ||||||||||||
Year Ended June 30, 2015 | 37.23 | 0.32 | 3.93 | 4.25 | (0.21 | ) | ||||||||||||||
Year Ended June 30, 2014 | 29.52 | 0.26 | (f) | 7.69 | 7.95 | (0.24 | ) | |||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended June 30, 2018 | 47.66 | 0.09 | 10.31 | 10.40 | (0.11 | ) | ||||||||||||||
Year Ended June 30, 2017 | 39.66 | 0.11 | 8.12 | 8.23 | (0.23 | ) | ||||||||||||||
Year Ended June 30, 2016 | 40.39 | 0.19 | (0.63 | ) | (0.44 | ) | (0.29 | ) | ||||||||||||
Year Ended June 30, 2015 | 36.49 | 0.12 | 3.85 | 3.97 | (0.07 | ) | ||||||||||||||
Year Ended June 30, 2014 | 28.91 | 0.09 | (f) | 7.54 | 7.63 | (0.05 | ) | |||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended June 30, 2018 | 48.76 | 0.46 | 10.56 | 11.02 | (0.46 | ) | ||||||||||||||
Year Ended June 30, 2017 | 40.51 | 0.42 | 8.29 | 8.71 | (0.46 | ) | ||||||||||||||
Year Ended June 30, 2016 | 41.12 | 0.45 | (0.62 | ) | (0.17 | ) | (0.44 | ) | ||||||||||||
Year Ended June 30, 2015 | 37.09 | 0.41 | 3.91 | 4.32 | (0.29 | ) | ||||||||||||||
Year Ended June 30, 2014 | 29.41 | 0.33 | (f) | 7.65 | 7.98 | (0.30 | ) | |||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended June 30, 2018 | 48.74 | 0.51 | 10.56 | 11.07 | (0.49 | ) | ||||||||||||||
Year Ended June 30, 2017 | 40.50 | 0.44 | 8.29 | 8.73 | (0.49 | ) | ||||||||||||||
November 2, 2015 (i) through June 30, 2016 | 42.20 | 0.36 | (1.60 | ) | (1.24 | ) | (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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | 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 $0.17, $0.00, $0.26, $0.09 and $0.32 for Class A, Class C, Class I, Class R2 and Class R5 Shares, respectively, and the net investment income (loss) ratio would have been 0.51%, 0.01%, 0.76%, 0.26% and 0.96% for Class A, Class C, Class I, Class R2 and Class R5 Shares, respectively |
(g) | Amount rounds to less than $0.005. |
(h) | Amount rounds to less than 0.005%. |
(i) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
46 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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 | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 59.09 | 22.13 | % | $ | 104,167 | 0.86 | % | 0.42 | % | 1.11 | % | 69 | % | |||||||||||||
48.60 | 21.12 | 90,633 | 0.92 | 0.50 | 1.20 | 68 | ||||||||||||||||||||
40.37 | (0.88 | ) | 90,529 | 0.93 | 0.66 | 1.23 | 70 | |||||||||||||||||||
40.99 | 11.16 | 106,573 | 0.96 | 0.62 | 1.16 | 64 | ||||||||||||||||||||
37.05 | 26.68 | 33,563 | 1.16 | 0.54 | (f) | 1.17 | 67 | |||||||||||||||||||
58.00 | 21.54 | 37,416 | 1.36 | (0.08 | ) | 1.61 | 69 | |||||||||||||||||||
47.72 | 20.52 | 42,811 | 1.41 | 0.00 | (h) | 1.67 | 68 | |||||||||||||||||||
39.63 | (1.35 | ) | 48,717 | 1.42 | 0.19 | 1.71 | 70 | |||||||||||||||||||
40.26 | 10.60 | 49,309 | 1.46 | 0.12 | 1.66 | 64 | ||||||||||||||||||||
36.45 | 26.05 | 19,566 | 1.65 | 0.03 | (f) | 1.67 | 67 | |||||||||||||||||||
60.04 | 22.45 | 196,798 | 0.61 | 0.67 | 0.86 | 69 | ||||||||||||||||||||
49.34 | 21.43 | 183,265 | 0.68 | 0.75 | 0.89 | 68 | ||||||||||||||||||||
40.99 | (0.63 | ) | 151,419 | 0.68 | 0.70 | 0.88 | 70 | |||||||||||||||||||
41.27 | 11.43 | 708,276 | 0.74 | 0.80 | 0.87 | 64 | ||||||||||||||||||||
37.23 | 27.00 | 597,963 | 0.91 | 0.79 | (f) | 0.92 | 67 | |||||||||||||||||||
57.95 | 21.84 | 40,763 | 1.10 | 0.16 | 1.37 | 69 | ||||||||||||||||||||
47.66 | 20.82 | 5,277 | 1.17 | 0.26 | 1.68 | 68 | ||||||||||||||||||||
39.66 | (1.10 | ) | 4,207 | 1.17 | 0.50 | 1.76 | 70 | |||||||||||||||||||
40.39 | 10.87 | 1,205 | 1.22 | 0.31 | 1.45 | 64 | ||||||||||||||||||||
36.49 | 26.41 | 601 | 1.41 | 0.28 | (f) | 1.42 | 67 | |||||||||||||||||||
59.32 | 22.66 | 201,539 | 0.45 | 0.83 | 0.71 | 69 | ||||||||||||||||||||
48.76 | 21.65 | 192,164 | 0.48 | 0.94 | 0.72 | 68 | ||||||||||||||||||||
40.51 | (0.42 | ) | 205,213 | 0.47 | 1.13 | 0.74 | 70 | |||||||||||||||||||
41.12 | 11.66 | 189,466 | 0.54 | 1.02 | 0.70 | 64 | ||||||||||||||||||||
37.09 | 27.23 | 124,489 | 0.71 | 0.98 | (f) | 0.72 | 67 | |||||||||||||||||||
59.32 | 22.78 | 588,911 | 0.36 | 0.92 | 0.61 | 69 | ||||||||||||||||||||
48.74 | 21.70 | 504,973 | 0.43 | 0.99 | 0.61 | 68 | ||||||||||||||||||||
40.50 | (2.94 | ) | 488,138 | 0.42 | 1.38 | 0.61 | 70 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 47 |
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 | ||||||||||||||||||||||
JPMorgan Intrepid Mid Cap Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 22.11 | $ | 0.15 | $ | 2.29 | $ | 2.44 | $ | (0.13 | ) | $ | (1.66 | ) | $ | (1.79 | ) | |||||||||||
Year Ended June 30, 2017 | 19.48 | 0.08 | 2.62 | 2.70 | (0.07 | ) | — | (f) | (0.07 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 21.82 | 0.15 | (0.64 | ) | (0.49 | ) | (0.13 | ) | (1.72 | ) | (1.85 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 24.11 | 0.08 | 1.18 | 1.26 | (0.09 | ) | (3.46 | ) | (3.55 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 18.79 | 0.08 | (g) | 5.41 | 5.49 | (0.07 | ) | (0.10 | ) | (0.17 | ) | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 18.90 | 0.04 | 1.96 | 2.00 | (0.01 | ) | (1.66 | ) | (1.67 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 16.72 | (0.04 | ) | 2.24 | 2.20 | (0.02 | ) | — | (f) | (0.02 | ) | |||||||||||||||||
Year Ended June 30, 2016 | 19.07 | 0.03 | (0.58 | ) | (0.55 | ) | (0.08 | ) | (1.72 | ) | (1.80 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 21.56 | (0.06 | ) | 1.06 | 1.00 | (0.03 | ) | (3.46 | ) | (3.49 | ) | |||||||||||||||||
Year Ended June 30, 2014 | 16.87 | (0.05 | )(g) | 4.84 | 4.79 | — | (0.10 | ) | (0.10 | ) | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 23.22 | 0.22 | 2.41 | 2.63 | (0.18 | ) | (1.66 | ) | (1.84 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 20.43 | 0.14 | 2.75 | 2.89 | (0.10 | ) | — | (f) | (0.10 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 22.77 | 0.19 | (0.64 | ) | (0.45 | ) | (0.17 | ) | (1.72 | ) | (1.89 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 24.97 | 0.14 | 1.24 | 1.38 | (0.12 | ) | (3.46 | ) | (3.58 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 19.45 | 0.14 | (g) | 5.60 | 5.74 | (0.12 | ) | (0.10 | ) | (0.22 | ) | |||||||||||||||||
Class R3 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 22.08 | 0.13 | 2.32 | 2.45 | (0.17 | ) | (1.66 | ) | (1.83 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 19.97 | 0.11 | 2.09 | 2.20 | (0.09 | ) | — | (f) | (0.09 | ) | ||||||||||||||||||
Class R4 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 23.20 | 0.19 | 2.44 | 2.63 | (0.22 | ) | (1.66 | ) | (1.88 | ) | ||||||||||||||||||
September 9, 2016 (h) through June 30, 2017 | 20.95 | 0.12 | 2.24 | 2.36 | (0.11 | ) | — | (f) | (0.11 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 23.25 | 0.27 | 2.42 | 2.69 | (0.24 | ) | (1.66 | ) | (1.90 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 20.42 | 0.19 | 2.76 | 2.95 | (0.12 | ) | — | (f) | (0.12 | ) | ||||||||||||||||||
November 2, 2015 (h) through June 30, 2016 | 22.41 | 0.20 | (0.29 | ) | (0.09 | ) | (0.18 | ) | (1.72 | ) | (1.90 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(f) | Amount rounds to less than $0.005. |
(g) | 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 $0.04, $(0.08) and $0.10 for Class A, Class C and Class I Shares, respectively, and the net investment income (loss) ratio would have been 0.20%, (0.42)% and 0.45% for Class A, Class C, and Class I Shares, respectively. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
48 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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 income | Expenses without waivers, reimbursements and earnings credits | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 22.76 | 11.18 | % | $ | 314,171 | 1.14 | % | 0.65 | % | 1.29 | % | 62 | % | |||||||||||||
22.11 | 13.91 | 304,927 | 1.14 | 0.40 | 1.38 | 70 | ||||||||||||||||||||
19.48 | (1.71 | ) | 311,724 | 1.15 | 0.77 | 1.44 | 78 | |||||||||||||||||||
21.82 | 5.64 | 377,893 | 1.14 | 0.33 | 1.37 | 66 | ||||||||||||||||||||
24.11 | 29.30 | 193,342 | 1.16 | 0.38 | (g) | 1.32 | 64 | |||||||||||||||||||
19.23 | 10.69 | 62,925 | 1.64 | 0.18 | 1.78 | 62 | ||||||||||||||||||||
18.90 | 13.20 | 81,761 | 1.74 | (0.21 | ) | 1.87 | 70 | |||||||||||||||||||
16.72 | (2.35 | ) | 89,071 | 1.79 | 0.15 | 1.96 | 78 | |||||||||||||||||||
19.07 | 5.02 | 87,191 | 1.78 | (0.31 | ) | 1.87 | 66 | |||||||||||||||||||
21.56 | 28.43 | 49,796 | 1.79 | (0.25 | )(g) | 1.82 | 64 | |||||||||||||||||||
24.01 | 11.47 | 296,876 | 0.89 | 0.91 | 1.02 | 62 | ||||||||||||||||||||
23.22 | 14.17 | 310,316 | 0.89 | 0.65 | 1.11 | 70 | ||||||||||||||||||||
20.43 | (1.48 | ) | 258,866 | 0.90 | 0.93 | 1.13 | 78 | |||||||||||||||||||
22.77 | 5.97 | 510,465 | 0.89 | 0.58 | 1.07 | 66 | ||||||||||||||||||||
24.97 | 29.61 | 348,077 | 0.91 | 0.62 | (g) | 1.08 | 64 | |||||||||||||||||||
22.70 | 11.22 | 13,823 | 1.14 | 0.59 | 1.27 | 62 | ||||||||||||||||||||
22.08 | 11.07 | 8,854 | 1.15 | 0.64 | 1.34 | 70 | ||||||||||||||||||||
23.95 | 11.46 | 1,157 | 0.89 | 0.80 | 1.11 | 62 | ||||||||||||||||||||
23.20 | 11.30 | 22 | 0.90 | 0.67 | 1.11 | 70 | ||||||||||||||||||||
24.04 | 11.73 | 127,571 | 0.64 | 1.11 | 0.77 | 62 | ||||||||||||||||||||
23.25 | 14.52 | 183,859 | 0.65 | 0.86 | 0.77 | 70 | ||||||||||||||||||||
20.42 | 0.12 | 304,934 | 0.65 | 1.53 | 0.78 | 78 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 49 |
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 | ||||||||||||||||||||||
JPMorgan Intrepid Sustainable Equity Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 39.35 | $ | 0.58 | $ | 4.05 | $ | 4.63 | $ | (0.48 | ) | $ | (2.22 | ) | $ | (2.70 | ) | |||||||||||
Year Ended June 30, 2017 | 33.20 | 0.29 | 6.20 | 6.49 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 34.01 | 0.62 | (d) | (0.87 | )(d) | (0.25 | ) | (0.56 | ) | — | (0.56 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 31.93 | 0.28 | 2.02 | 2.30 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
Year Ended June 30, 2014 | 25.54 | 0.20 | 6.37 | 6.57 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 38.51 | 0.41 | 3.92 | 4.33 | (0.18 | ) | (2.22 | ) | (2.40 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 32.48 | 0.11 | 6.06 | 6.17 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 33.29 | 0.44 | (d) | (0.85 | )(d) | (0.41 | ) | (0.40 | ) | — | (0.40 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 31.38 | 0.12 | 1.98 | 2.10 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Year Ended June 30, 2014 | 25.14 | 0.05 | 6.26 | 6.31 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 39.59 | 0.66 | 4.10 | 4.76 | (0.57 | ) | (2.22 | ) | (2.79 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 33.40 | 0.38 | 6.25 | 6.63 | (0.44 | ) | — | (0.44 | ) | |||||||||||||||||||
Year Ended June 30, 2016 | 34.22 | 0.68 | (d) | (0.86 | )(d) | (0.18 | ) | (0.64 | ) | — | (0.64 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 32.07 | 0.37 | 2.04 | 2.41 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year Ended June 30, 2014 | 25.65 | 0.28 | 6.39 | 6.67 | (0.25 | ) | — | (0.25 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
(d) | The amount reflects an out of period adjustment related to a corporate action involving two of the Fund’s holdings. Had the Fund not recorded the out of period adjustment, the net investment income (loss) per share would have been $0.33, $0.15 and $0.38, for Class A, Class C and Class I Shares, respectively, the net realized and unrealized gains (losses) on investment per share would have been $(0.58), $(0.56) and $(0.56) for Class A, Class C and Class I Shares, respectively, and the net investment income (loss) ratio would have been 0.99%, 0.47% and 1.14% for Class A, Class C and Class I Shares, respectively. |
SEE NOTES TO FINANCIAL STATEMENTS.
50 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 41.28 | 11.88 | % | $ | 9,497 | 0.90 | % | 1.41 | % | 1.92 | % | 38 | % | |||||||||||||
39.35 | 19.64 | 7,943 | 1.08 | 0.80 | 2.29 | 53 | ||||||||||||||||||||
33.20 | (0.72 | ) | 8,760 | 1.15 | 1.90 | (d) | 1.95 | 31 | ||||||||||||||||||
34.01 | 7.22 | 10,933 | 1.15 | 0.85 | 1.87 | 35 | ||||||||||||||||||||
31.93 | 25.78 | 9,466 | 1.17 | 0.68 | 2.19 | 49 | ||||||||||||||||||||
40.44 | 11.35 | 3,277 | 1.42 | 1.01 | 2.45 | 38 | ||||||||||||||||||||
38.51 | 19.02 | 5,063 | 1.58 | 0.30 | 2.79 | 53 | ||||||||||||||||||||
32.48 | (1.21 | ) | 6,131 | 1.65 | 1.38 | (d) | 2.46 | 31 | ||||||||||||||||||
33.29 | 6.71 | 6,874 | 1.65 | 0.36 | 2.36 | 35 | ||||||||||||||||||||
31.38 | 25.13 | 3,709 | 1.66 | 0.19 | 2.66 | 49 | ||||||||||||||||||||
41.56 | 12.16 | 9,172 | 0.64 | 1.59 | 1.63 | 38 | ||||||||||||||||||||
39.59 | 19.95 | 5,038 | 0.83 | 1.04 | 2.03 | 53 | ||||||||||||||||||||
33.40 | (0.48 | ) | 4,148 | 0.90 | 2.05 | (d) | 1.65 | 31 | ||||||||||||||||||
34.22 | 7.51 | 4,833 | 0.90 | 1.10 | 1.59 | 35 | ||||||||||||||||||||
32.07 | 26.10 | 3,438 | 0.91 | 0.95 | 1.90 | 49 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 51 |
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 | ||||||||||||||||||||||
JPMorgan Intrepid Value Fund | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | $ | 35.54 | $ | 0.53 | $ | 4.10 | $ | 4.63 | $ | (0.55 | ) | $ | (5.09 | ) | $ | (5.64 | ) | |||||||||||
Year Ended June 30, 2017 | 31.20 | 0.47 | 4.66 | 5.13 | (0.52 | ) | (0.27 | ) | (0.79 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.66 | 0.53 | (2.95 | ) | (2.42 | ) | (0.49 | ) | (1.55 | ) | (2.04 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.13 | 0.46 | 1.38 | 1.84 | (0.44 | ) | (2.87 | ) | (3.31 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.76 | 0.40 | 7.36 | 7.76 | (0.39 | ) | — | (0.39 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 35.14 | 0.35 | 4.05 | 4.40 | (0.39 | ) | (5.09 | ) | (5.48 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 30.87 | 0.30 | 4.60 | 4.90 | (0.36 | ) | (0.27 | ) | (0.63 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.29 | 0.36 | (2.91 | ) | (2.55 | ) | (0.32 | ) | (1.55 | ) | (1.87 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 36.80 | 0.27 | 1.37 | 1.64 | (0.28 | ) | (2.87 | ) | (3.15 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.52 | 0.23 | 7.28 | 7.51 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 35.69 | 0.62 | 4.11 | 4.73 | (0.62 | ) | (5.09 | ) | (5.71 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 31.34 | 0.53 | 4.67 | 5.20 | (0.58 | ) | (0.27 | ) | (0.85 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.80 | 0.57 | (2.95 | ) | (2.38 | ) | (0.53 | ) | (1.55 | ) | (2.08 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.25 | 0.51 | 1.40 | 1.91 | (0.49 | ) | (2.87 | ) | (3.36 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.85 | 0.45 | 7.38 | 7.83 | (0.43 | ) | — | (0.43 | ) | |||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 35.33 | 0.46 | 4.03 | 4.49 | (0.47 | ) | (5.09 | ) | (5.56 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 31.04 | 0.38 | 4.62 | 5.00 | (0.44 | ) | (0.27 | ) | (0.71 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.48 | 0.44 | (2.92 | ) | (2.48 | ) | (0.41 | ) | (1.55 | ) | (1.96 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.02 | 0.35 | 1.40 | 1.75 | (0.42 | ) | (2.87 | ) | (3.29 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.69 | 0.31 | 7.33 | 7.64 | (0.31 | ) | — | (0.31 | ) | |||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 35.78 | 0.66 | 4.13 | 4.79 | (0.68 | ) | (5.09 | ) | (5.77 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 31.42 | 0.59 | 4.69 | 5.28 | (0.65 | ) | (0.27 | ) | (0.92 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.88 | 0.64 | (2.95 | ) | (2.31 | ) | (0.60 | ) | (1.55 | ) | (2.15 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.33 | 0.59 | 1.39 | 1.98 | (0.56 | ) | (2.87 | ) | (3.43 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.91 | 0.52 | 7.40 | 7.92 | (0.50 | ) | — | (0.50 | ) | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended June 30, 2018 | 35.78 | 0.69 | 4.13 | 4.82 | (0.71 | ) | (5.09 | ) | (5.80 | ) | ||||||||||||||||||
Year Ended June 30, 2017 | 31.42 | 0.61 | 4.69 | 5.30 | (0.67 | ) | (0.27 | ) | (0.94 | ) | ||||||||||||||||||
Year Ended June 30, 2016 | 35.89 | 0.66 | (2.97 | ) | (2.31 | ) | (0.61 | ) | (1.55 | ) | (2.16 | ) | ||||||||||||||||
Year Ended June 30, 2015 | 37.33 | 0.61 | 1.39 | 2.00 | (0.57 | ) | (2.87 | ) | (3.44 | ) | ||||||||||||||||||
Year Ended June 30, 2014 | 29.91 | 0.47 | 7.46 | 7.93 | (0.51 | ) | — | (0.51 | ) |
(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 earnings credits and interest expense, if applicable, each of which is less than 0.005% unless otherwise noted. |
SEE NOTES TO FINANCIAL STATEMENTS.
52 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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, reimbursements and earnings credits | Portfolio turnover rate | ||||||||||||||||||||
$ | 34.53 | 13.39 | % | $ | 86,400 | 0.83 | % | 1.48 | % | 1.02 | % | 68 | % | |||||||||||||
35.54 | 16.55 | 95,891 | 0.83 | 1.41 | 1.16 | 81 | ||||||||||||||||||||
31.20 | (6.70 | ) | 240,808 | 0.83 | 1.64 | 1.18 | 66 | |||||||||||||||||||
35.66 | 5.24 | 173,149 | 0.86 | 1.26 | 1.13 | 52 | ||||||||||||||||||||
37.13 | 26.17 | 114,036 | 0.94 | 1.19 | 1.17 | 49 | ||||||||||||||||||||
34.06 | 12.84 | 23,686 | 1.33 | 1.00 | 1.53 | 68 | ||||||||||||||||||||
35.14 | 15.97 | 35,999 | 1.32 | 0.89 | 1.59 | 81 | ||||||||||||||||||||
30.87 | (7.16 | ) | 42,788 | 1.33 | 1.12 | 1.62 | 66 | |||||||||||||||||||
35.29 | 4.72 | 53,413 | 1.36 | 0.76 | 1.62 | 52 | ||||||||||||||||||||
36.80 | 25.50 | 35,963 | 1.44 | 0.69 | 1.67 | 49 | ||||||||||||||||||||
34.71 | 13.65 | 772,556 | 0.62 | 1.71 | 0.76 | 68 | ||||||||||||||||||||
35.69 | 16.72 | 886,602 | 0.68 | 1.56 | 0.90 | 81 | ||||||||||||||||||||
31.34 | (6.56 | ) | 1,224,039 | 0.68 | 1.77 | 0.91 | 66 | |||||||||||||||||||
35.80 | 5.41 | 1,424,101 | 0.71 | 1.39 | 0.90 | 52 | ||||||||||||||||||||
37.25 | 26.35 | 1,214,765 | 0.79 | 1.34 | 0.92 | 49 | ||||||||||||||||||||
34.26 | 13.04 | 5,781 | 1.12 | 1.28 | 1.52 | 68 | ||||||||||||||||||||
35.33 | 16.24 | 19,693 | 1.10 | 1.12 | 1.59 | 81 | ||||||||||||||||||||
31.04 | (6.91 | ) | 17,721 | 1.08 | 1.39 | 1.75 | 66 | |||||||||||||||||||
35.48 | 4.98 | 14,237 | 1.09 | 0.97 | 1.43 | 52 | ||||||||||||||||||||
37.02 | 25.82 | 1,346 | 1.19 | 0.92 | 1.42 | 49 | ||||||||||||||||||||
34.80 | 13.80 | 90,714 | 0.45 | 1.82 | 0.62 | 68 | ||||||||||||||||||||
35.78 | 16.97 | 86,134 | 0.48 | 1.73 | 0.61 | 81 | ||||||||||||||||||||
31.42 | (6.35 | ) | 85,624 | 0.48 | 1.98 | 0.61 | 66 | |||||||||||||||||||
35.88 | 5.60 | 83,859 | 0.51 | 1.59 | 0.63 | 52 | ||||||||||||||||||||
37.33 | 26.60 | 80,008 | 0.59 | 1.53 | 0.72 | 49 | ||||||||||||||||||||
34.80 | 13.90 | 118,726 | 0.37 | 1.90 | 0.52 | 68 | ||||||||||||||||||||
35.78 | 17.03 | 108,525 | 0.43 | 1.79 | 0.52 | 81 | ||||||||||||||||||||
31.42 | (6.33 | ) | 86,255 | 0.43 | 2.07 | 0.51 | 66 | |||||||||||||||||||
35.89 | 5.67 | 39,024 | 0.46 | 1.65 | 0.55 | 52 | ||||||||||||||||||||
37.33 | 26.66 | 19,495 | 0.54 | 1.41 | 0.67 | 49 |
SEE NOTES TO FINANCIAL STATEMENTS.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 53 |
Table of Contents
AS OF JUNE 30, 2018
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 5 separate funds of the Trusts (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Trust | Diversified/Non-Diversified | ||||
JPMorgan Intrepid America Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Intrepid Growth Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Intrepid Mid Cap Fund | Class A, Class C, Class I, Class R3, Class R4 and Class R6 | JPM II | Diversified | |||
JPMorgan Intrepid Sustainable Equity Fund | Class A, Class C and Class I | JPM I | Diversified | |||
JPMorgan Intrepid Value Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified |
The investment objective of both the JPMorgan Intrepid America Fund (“Intrepid America Fund”) and the JPMorgan Intrepid Growth Fund (“Intrepid Growth Fund”) is to seek to provide long-term capital growth.
The investment objective of the JPMorgan Intrepid Mid Cap Fund (“Intrepid Mid Cap Fund”) is to seek long-term capital growth by investing primarily in equity securities of companies with intermediate capitalizations.
The investment objective of both the JPMorgan Intrepid Sustainable Equity Fund (“Intrepid Sustainable Equity Fund”) and the JPMorgan Intrepid Value Fund (“Intrepid Value Fund”) is to seek to provide long-term capital appreciation.
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 I, Class R2, Class R3, Class R4, Class R5 and Class R6 Shares. 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. Beginning on November 14, 2017, Class C Shares automatically convert to Class A Shares after ten years. All classes of shares have equal rights as to earnings, assets and voting privileges, except that each class may bear different transfer agency, distribution and service fees and each class has exclusive voting rights with respect to its distribution plan and shareholder servicing agreements.
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.
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 Boards of Trustees (the “Boards”), 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 Boards.
The Administrator has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Boards 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 Boards. 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 Boards.
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 Boards. 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.
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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. 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 contracts are generally valued on the basis of available market quotations.
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). |
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):
Intrepid America Fund
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 4,064,195 | $ | — | $ | — | $ | 4,064,195 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (257 | ) | $ | — | $ | — | $ | (257 | ) | ||||||
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Intrepid Growth Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 1,170,880 | $ | — | $ | — | $ | 1,170,880 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (139 | ) | $ | — | $ | — | $ | (139 | ) | ||||||
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Intrepid Mid Cap Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 819,469 | $ | — | $ | — | $ | 819,469 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (33 | ) | $ | — | $ | — | $ | (33 | ) | ||||||
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Intrepid Sustainable Equity Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 21,957 | $ | — | $ | — | $ | 21,957 | ||||||||
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JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 55 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
Intrepid Value Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant observable inputs | Level 3 unobservable inputs | Total | |||||||||||||
Total Investments in Securities (a) | $ | 1,092,227 | $ | — | $ | — | $ | 1,092,227 | ||||||||
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Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (878 | ) | $ | — | $ | — | $ | (878 | ) | ||||||
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(a) | All portfolio holdings designated as level 1 are disclosed individually on the SOIs. Please refer to the SOIs for industry specifics of portfolio holdings. |
There were no transfers among any levels during the year ended June 30, 2018.
B. Futures Contracts — Intrepid America Fund, Intrepid Growth Fund, Intrepid Mid Cap Fund and Intrepid 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 use of futures contracts exposes the Funds to equity price risk. 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 table below discloses the volume of the Funds’ futures contracts activity during the year ended June 30, 2018 (amounts in thousands):
Intrepid America Fund | Intrepid Growth Fund | Intrepid Mid Cap Fund | Intrepid Value Fund | |||||||||||||
Futures Contracts: | ||||||||||||||||
Average Notional Balance Long | $ | 86,482 | $ | 25,258 | $ | 14,683 | $ | 24,858 | ||||||||
Ending Notional Balance Long | 82,192 | 25,175 | 2,934 | 51,302 |
The Funds’ futures contracts are not subject to master netting agreements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
C. 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.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary once the issuers provide information about the actual composition of the distributions.
56 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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D. 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 are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended June 30, 2018 are as follows (amounts in thousands):
Class A | Class C | Class I | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | Total | ||||||||||||||||||||||||||||
Intrepid America Fund | ||||||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 22 | $ | 1 | $ | 4 | $ | 1 | n/a | n/a | $ | — | (a) | $ | 28 | $ | 56 | |||||||||||||||||||
Intrepid Growth Fund | ||||||||||||||||||||||||||||||||||||
Transfer agency fees | 10 | 3 | 7 | 3 | n/a | n/a | 3 | 4 | 30 | |||||||||||||||||||||||||||
Intrepid Mid Cap Fund | ||||||||||||||||||||||||||||||||||||
Transfer agency fees | 70 | 6 | 9 | n/a | $ | — | (a) | $ | — | (a) | n/a | 3 | 88 | |||||||||||||||||||||||
Intrepid Sustainable Equity Fund | ||||||||||||||||||||||||||||||||||||
Transfer agency fees | 3 | 1 | 1 | n/a | n/a | n/a | n/a | n/a | 5 | |||||||||||||||||||||||||||
Intrepid Value Fund | ||||||||||||||||||||||||||||||||||||
Transfer agency fees | 6 | 3 | 10 | 43 | n/a | n/a | 2 | 4 | 68 |
(a) | Amount rounds to less than one thousand. |
E. 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 (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 June 30, 2018, 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 remains subject to examination by the Internal Revenue Service.
F. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually, except for the Intrepid Value Fund, for which distributions are generally declared and paid at least 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.
The following amounts were reclassified within the capital accounts (amounts in thousands):
Paid-in-Capital | Accumulated income | Accumulated net realized gains (losses) | ||||||||||
Intrepid America Fund | $ | — | (a) | $ | (282 | ) | $ | 282 | ||||
Intrepid Growth Fund | 6,532 | (160 | ) | (6,372 | ) | |||||||
Intrepid Mid Cap Fund | — | (465 | ) | 465 | ||||||||
Intrepid Sustainable Equity Fund | — | (a) | (18 | ) | 18 | |||||||
Intrepid Value Fund | (76 | ) | (537 | ) | 613 |
(a) | Amount rounds to less than one thousand. |
The reclassifications for the Funds relate primarily to non-taxable dividends and tax equalization.
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to an Investment Advisory Agreement, 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:
Intrepid America Fund | 0.40 | % | ||
Intrepid Growth Fund | 0.50 | |||
Intrepid Mid Cap Fund | 0.65 | |||
Intrepid Sustainable Equity Fund | 0.50 | |||
Intrepid Value Fund | 0.40 |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 57 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
The Adviser waived Investment Advisory fees and/or reimbursed expenses as outlined in Note 3.F.
B. Administration Fee — Pursuant to an Administration Agreement, 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 June 30, 2018, 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. (“JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, serves as the Trusts’ principal underwriter and promotes and arranges for the sale of each Fund’s shares.
The Boards have adopted a Distribution Plan (the “Distribution Plan”) for Class A, Class C, Class R2 and Class R3 Shares of the Funds, as applicable, in accordance with Rule 12b-1 under the 1940 Act. Class I, Class R4, Class R5 and Class R6 Shares do not charge a distribution fee. The Distribution Plan provides that each Fund shall pay distribution fees, including payments to JPMDS, at annual rates of the average daily net assets as shown in the table below:
Class A | Class C | Class R2 | Class R3 | |||||||||||||
Intrepid America Fund | 0.25 | % | 0.75 | % | 0.50 | % | n/a | |||||||||
Intrepid Growth Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
Intrepid Mid Cap Fund | 0.25 | 0.75 | n/a | 0.25 | % | |||||||||||
Intrepid Sustainable Equity Fund | 0.25 | 0.75 | n/a | n/a | ||||||||||||
Intrepid Value Fund | 0.25 | 0.75 | 0.50 | n/a |
In addition, JPMDS 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 June 30, 2018, JPMDS retained the following (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Intrepid America Fund | $ | 1 | $ | — | (a) | |||
Intrepid Growth Fund | 21 | — | (a) | |||||
Intrepid Mid Cap Fund | 10 | — | ||||||
Intrepid Sustainable Equity Fund | 1 | — | ||||||
Intrepid Value Fund | 3 | — | (a) |
(a) | Amount rounds to less than one thousand. |
D. Service Fees — The Trusts, on behalf of the Funds, have entered into Shareholder Servicing Agreements with JPMDS under which JPMDS provides certain support services to the shareholders. For performing these services, JPMDS receives a fee, except for Class R6 Shares which do not charge a service 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 I | Class R2 | Class R3 | Class R4 | Class R5 | ||||||||||||||||||||||
Intrepid America Fund | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | n/a | n/a | 0.10 | % | ||||||||||||||||
Intrepid Growth Fund | 0.25 | 0.25 | 0.25 | 0.25 | n/a | n/a | 0.10 | |||||||||||||||||||||
Intrepid Mid Cap Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | % | 0.25 | % | n/a | |||||||||||||||||||
Intrepid Sustainable Equity Fund | 0.25 | 0.25 | 0.25 | n/a | n/a | n/a | n/a | |||||||||||||||||||||
Intrepid Value Fund | 0.25 | 0.25 | 0.25 | 0.25 | n/a | n/a | 0.10 |
JPMDS 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 JPMDS will pay all or a portion of such fees earned to financial intermediaries for performing such services.
JPMDS waived Service fees as outlined in Note 3.F.
E. Custodian and Accounting Fees — JPMCB provides portfolio custody 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 in Interest income from affiliates on the Statements of Operations. Prior to March 1, 2018, payments to the custodian were reduced by credits earned by each Fund, based on uninvested cash balances held by the custodian. Such earnings credits, if any, are presented separately on the Statements of Operations.
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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 JPMDS 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 Fund’s respective average daily net assets as shown in the table below:
Class A | Class C | Class I | Class R2 | Class R3 | Class R4 | Class R5 | Class R6 | |||||||||||||||||||||||||
Intrepid America Fund (1) | 0.84 | % | 1.34 | % | 0.59 | % | 1.09 | % | n/a | n/a | 0.44 | % | 0.34 | % | ||||||||||||||||||
Intrepid Growth Fund (2) | 0.84 | 1.34 | 0.59 | 1.09 | n/a | n/a | 0.44 | 0.34 | ||||||||||||||||||||||||
Intrepid Mid Cap Fund (3) | 1.14 | 1.64 | 0.89 | n/a | 1.14 | % | 0.89 | % | n/a | 0.64 | ||||||||||||||||||||||
Intrepid Sustainable Equity Fund (4) | 0.84 | 1.34 | 0.59 | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Intrepid Value Fund (5) | 0.83 | * | 1.33 | * | 0.59 | 1.09 | n/a | n/a | 0.44 | 0.34 |
(1) | Prior to November 1, 2017, the contractual expense limitations for Intrepid America Fund were 1.04%, 1.54%, 0.80%, 1.30%, 0.60% and 0.55% for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
(2) | Prior to November 1, 2017, the contractual expense limitations for Intrepid Growth Fund were 0.93%, 1.42%, 0.68%, 1.18%, 0.48% and 0.43% for Class A, Class C, Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
(3) | Prior to November 1, 2017, the contractual expense limitations for Intrepid Mid Cap Fund were 1.15%, 1.79%, 0.90%, 1.15%, 0.90% and 0.65% for Class A, Class C, Class I, Class R3, Class R4 and Class R6 Shares, respectively. |
(4) | Prior to November 1, 2017, the contractual expense limitations for Intrepid Sustainable Equity Fund were 1.05%, 1.55% and 0.80% for Class A, Class C and Class I Shares, respectively. |
(5) | Prior to November 1, 2017, the contractual expense limitations for Intrepid Value Fund were 0.68%, 1.18%, 0.48% and 0.43% for Class I, Class R2, Class R5 and Class R6 Shares, respectively. |
* | The contractual expense percentages in the table above are in place until at least October 31, 2018. |
Except as noted above, the expense limitation agreements were in effect for the year ended June 30, 2018 and are in place until at least October 31, 2019.
For the year ended June 30, 2018, 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 reimbursed expenses in future years.
Contractual Waivers | ||||||||||||||||||||
Investment Advisory Fees | Administration Fees | Service Fees | Total | Contractual Reimbursements | ||||||||||||||||
Intrepid America Fund | $ | 2,499 | $ | 1,666 | $ | 23 | $ | 4,188 | $ | 19 | ||||||||||
Intrepid Growth Fund | 1,804 | 891 | 58 | 2,753 | 1 | |||||||||||||||
Intrepid Mid Cap Fund | 706 | 469 | 81 | 1,256 | 3 | |||||||||||||||
Intrepid Sustainable Equity Fund | 103 | 17 | 51 | 171 | 36 | |||||||||||||||
Intrepid Value Fund | 951 | 634 | 106 | 1,691 | 13 |
Additionally, the Funds may invest in one or more money market funds advised by the Adviser or its affiliates (affiliated money market funds). The Adviser, Administrator and/or JPMDS, 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 Fund’s investment in such affiliated money market fund.
The amounts of waivers resulting from investments in these money market funds for the year ended June 30, 2018 were as follows (amounts in thousands):
Intrepid America Fund | $ | 177 | ||
Intrepid Growth Fund | 50 | |||
Intrepid Mid Cap Fund | 35 | |||
Intrepid Sustainable Equity Fund | 1 | |||
Intrepid Value Fund | 45 |
G. Other — Certain officers of the Trusts are affiliated with the Adviser, the Administrator and JPMDS. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Funds for serving in their respective roles.
The Boards 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.
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 59 |
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
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 June 30, 2018, Intrepid Mid Cap Fund purchased securities from an underwriting syndicate in which the principal underwriter or members of the syndicate were affiliated with the Adviser.
The Funds may use related party broker-dealers. For the year ended June 30, 2018, the Funds incurred brokerage commissions with broker-dealers affiliated with the Adviser as follows (amounts in thousands):
Intrepid America Fund | $—(a) | |||
Intrepid Growth Fund | —(a) | |||
Intrepid Mid Cap Fund | —(a) | |||
Intrepid Value Fund | —(a) |
(a) | Amount rounds to less than one thousand. |
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities, Inc., an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended June 30, 2018, 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) | |||||||
Intrepid America Fund | $ | 3,243,082 | $ | 3,936,675 | ||||
Intrepid Growth Fund | 759,148 | 827,902 | ||||||
Intrepid Mid Cap Fund | 553,807 | 718,104 | ||||||
Intrepid Sustainable Equity Fund | 8,780 | 7,553 | ||||||
Intrepid Value Fund | 729,742 | 1,008,736 |
During the year ended June 30, 2018, 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 investments held at June 30, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Intrepid America Fund | $ | 3,181,287 | $ | 934,786 | $ | 52,135 | $ | 882,651 | ||||||||
Intrepid Growth Fund | 815,678 | 366,093 | 11,030 | 355,063 | ||||||||||||
Intrepid Mid Cap Fund | 652,318 | 187,454 | 20,336 | 167,118 | ||||||||||||
Intrepid Sustainable Equity Fund | 17,216 | 5,452 | 711 | 4,741 | ||||||||||||
Intrepid Value Fund | 904,480 | 210,295 | 23,426 | 186,869 |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to mark to market of futures contracts and wash sale loss deferrals.
The tax character of distributions paid during the year ended June 30, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Intrepid America Fund | $ | 137,137 | $ | 349,651 | $ | 486,788 | ||||||
Intrepid Growth Fund | 8,634 | — | 8,634 | |||||||||
Intrepid Mid Cap Fund | 7,633 | 63,948 | 71,581 | |||||||||
Intrepid Sustainable Equity Fund | 311 | 989 | 1,300 | |||||||||
Intrepid Value Fund | 34,038 | 127,831 | 161,869 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
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The tax character of distributions paid during the year ended June 30, 2017 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Intrepid America Fund | $ | 52,470 | $ | 101,892 | $ | 154,362 | ||||||
Intrepid Growth Fund | 9,445 | — | 9,445 | |||||||||
Intrepid Mid Cap Fund | 4,358 | 194 | 4,552 | |||||||||
Intrepid Sustainable Equity Fund | 147 | — | 147 | |||||||||
Intrepid Value Fund | 20,876 | 9,899 | 30,775 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
As of June 30, 2018, 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) | ||||||||||
Intrepid America Fund | $ | 120,849 | $ | 238,507 | $ | 882,651 | ||||||
Intrepid Growth Fund | 4,133 | 77,150 | 355,063 | |||||||||
Intrepid Mid Cap Fund | 25,675 | 62,127 | 167,118 | |||||||||
Intrepid Sustainable Equity Fund | 231 | 940 | 4,741 | |||||||||
Intrepid Value Fund | 11,837 | 73,741 | 186,869 |
For the Funds, the cumulative timing differences primarily consist of mark to market of futures contracts, wash sale loss deferrals and trustee deferred compensation.
At June 30, 2018, the following Fund utilized net capital loss carryforwards as follows (amount in thousands):
Intrepid Growth Fund | $ | 52,532 |
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 JPM II and may be relied upon by the Funds because the Funds and the series of JPM 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 5, 2018.
The Funds had no borrowings outstanding from another fund or from the unsecured, uncommitted credit facility during the year ended June 30, 2018.
The Trusts, along with certain other trusts (“Borrowers”), have 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 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.
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
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NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 2018 (continued)
on the unused portion of the Credit Facility and is allocated to all participating funds pro rata based on their respective net assets. Effective August 14, 2018, this agreement has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended June 30, 2018.
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.
As of June 30, 2018, the Funds had omnibus accounts which owned more than 10% of the respective Fund’s outstanding shares as follows:
Number of Affiliated Omnibus Accounts | % of the Fund | Number of Non-Affiliated Omnibus Accounts | % of the Fund | |||||||||||||
Intrepid Mid Cap Fund | 2 | 13.2 | % | 4 | 14.1 | % | ||||||||||
Intrepid Sustainable Equity Fund | 2 | 14.8 | 4 | 32.4 | ||||||||||||
Intrepid Value Fund | — | — | 3 | 57.8 |
As of June 30, 2018, J.P. Morgan Investor Funds and JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of the Funds as follows:
JPMorgan Investor Funds | JPMorgan SmartRetirement Funds | |||||||
Intrepid America Fund | 28.0 | % | 59.9 | % | ||||
Intrepid Growth Fund | 41.3 | — |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
8. Investment Company Reporting Modernization
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosures about derivatives in investment company financial statements, as well as other amendments. The amendments to Regulation S-X were applied to the Funds’ financial statements as of June 30, 2018. The adoption had no effect on the Funds’ net assets or results of operations.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Boards of Trustees of JPMorgan Trust I and JPMorgan Trust II and Shareholders of JPMorgan Intrepid America Fund, JPMorgan Intrepid Growth Fund, JPMorgan Intrepid Mid Cap Fund, JPMorgan Intrepid Sustainable Equity Fund and JPMorgan Intrepid Value Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Intrepid America Fund, JPMorgan Intrepid Growth Fund, JPMorgan Intrepid Sustainable Equity Fund and JPMorgan Intrepid Value Fund (four of the funds constituting JPMorgan Trust I) and JPMorgan Intrepid Mid Cap Fund (one of the funds constituting JPMorgan Trust II) (hereafter collectively referred to as the “Funds”) as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, 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 ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
August 28, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
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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 Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the 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), Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (1974-present). | 135 | 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). | |||
Stephen P. Fisher (1959); Trustee of Trusts since 2018. | Retired; Chairman and Chief Executive Officer (2014-2017), President and Chief Operating Officer, NYLIFE Distributors LLC (registered broker-dealer) (2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); President (2015-2017), Co-President (2014-2015) and Senior Managing Director, New York Life Investment Management LLC (registered investment adviser) (2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (formerly MainStay VP Series Fund, Inc.) (registered investment companies) (2007-2017); President, MainStay DefinedTerm Municipal Opportunities Fund (registered investment company) (2011-2017); President, MainStay Funds Trust (registered investment companies) (2009-2017); President, The MainStay Funds (registered investment companies) (2007-2017). | 135 | Advisory Board Member, Scholarship Committee Member and Investment Committee Member, The First Tee of Plainfield (non-profit youth sports organization that provides need-based scholarships) (2014-present); Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). | |||
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). | 135 | Trustee, Museum of Jewish Heritage (2011-present); Trustee, National Museum of Mathematics (present); Chair, Association of College and University Administrators (present). | |||
Dennis P. Harrington* (1950); Trustee of Trusts since 2017. | Retired; Partner, Deloitte LLP (1984-2012). | 135 | 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). | 135 | None | |||
Raymond Kanner** (1953); Trustee of Trusts since 2017. | Retired; Managing Director & Chief Investment Officer, IBM Retirement Funds (2007-2016). | 135 | Director, Emerging Markets Growth Fund (1997-2016); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA), 2016-2017; Advisory Board Member, Betterment for Business (2016-2017) (robo advisor); Advisory Board Member, Blue Star Indexes (2013-2017) (index creator); Member, Russell Index Client Advisory Board (2001-2015); Advisory Board Member, State Street Global Advisors’ OCIO Board (2017-present). |
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Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years | |||
Independent Trustees (continued) | ||||||
Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 135 | 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). | 135 | 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). | 135 | 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) (1985-2005). | 135 | Director, Sun Life Financial (SLF) (2007-2013) (financial services and insurance). | |||
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). | 135 | Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014); Trustee, American Museum of Fly Fishing (2013-present); Trustee, Trout Unlimited (2017-present). | |||
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). | 135 | Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). | |||
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). | 135 | 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 eleven registered investment companies (135 funds). |
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TRUSTEES
(Unaudited) (continued)
* | Two family members of Mr. Harrington are partner and managing director, respectively, of the Funds’ independent registered public accounting firm. Such firm has represented to the Board that those family members are not involved in the audit of the Funds’ financial statements and do not provide other services to the Funds. The Board has concluded that such association does not interfere with Mr. Harrington’s exercise of independent judgment as an Independent Trustee. |
** | A family member of Mr. Kanner is employed by JPMorgan Chase Bank, which is affiliated with JPMIM and JPMDS. In that capacity, this employee provides services to various JPMorgan affiliates including JPMIM and JPMDS and for which JPMIM and JPMDS bear some portion of the expense thereof. |
*** | 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). | |
Timothy J. Clemens (1975), Treasurer and Principal Financial Officer (2018)* | Executive Director, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since February 2016; Vice President, JPMorgan Funds Management, Inc. from October 2013 to January 2016; Chief Financial Officer and Head of Valuation, Aberdeen Asset Management PLC (previously Artio Global Management) (2009 to September 2013). | |
Noah Greenhill (1969), Secretary (2018) | Managing Director and General Counsel, JPMorgan Asset Management (2015 – Present); Managing Director and General Counsel, JPMorgan Global Alternative Funds (2012-2015). | |
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. Ms. Ditullio has been with JPMorgan Chase (formerly Bank One Corporation) since 1990. | |
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. | |
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 from 2010 to February 2014. | |
Pamela L. Woodley (1971), Assistant Secretary (2012) | Vice President and Assistant General Counsel, JPMorgan Chase since November 2004. | |
Zachary E. Vonnegut-Gabovitch (1986), Assistant Secretary (2017) | Vice President and Assistant General Counsel, JPMorgan Chase since September 2016; Associate, Morgan, Lewis & Bockius (law firm) from 2012 to 2016. | |
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. | |
Jeffrey D. House (1972), Assistant Treasurer (2017)** | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since July 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. | |
Gillian I. Sands (1969), Assistant Treasurer (2012)* | Vice President, J.P. Morgan Investment Management Inc. (formerly JPMorgan Funds Management, Inc.) since September 2012. |
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 4 New York Plaza, New York, NY 10004. |
** | The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
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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 (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, January 1, 2018, and continued to hold your shares at the end of the reporting period, June 30, 2018.
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 Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Intrepid America Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,028.30 | $ | 4.22 | 0.84 | % | ||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,025.70 | 6.73 | 1.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.15 | 6.71 | 1.34 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,029.50 | 2.97 | 0.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.87 | 2.96 | 0.59 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,026.90 | 5.48 | 1.09 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.39 | 5.46 | 1.09 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,030.10 | 2.21 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,030.80 | 1.71 | 0.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.11 | 1.71 | 0.34 | ||||||||||||
JPMorgan Intrepid Growth Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,058.20 | 4.29 | 0.84 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.63 | 4.21 | 0.84 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,055.70 | 6.83 | 1.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.15 | 6.71 | 1.34 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,059.70 | 3.01 | 0.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.87 | 2.96 | 0.59 |
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Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Intrepid Growth Fund (continued) | ||||||||||||||||
Class R2 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.90 | $ | 5.56 | 1.09 | % | ||||||||
Hypothetical | 1,000.00 | 1,019.39 | 5.46 | 1.09 | ||||||||||||
Class R5 | ||||||||||||||||
Actual | 1,000.00 | 1,060.40 | 2.25 | 0.44 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,061.00 | 1.74 | 0.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.11 | 1.71 | 0.34 | ||||||||||||
JPMorgan Intrepid Mid Cap Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,009.30 | 5.68 | 1.14 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.14 | 5.71 | 1.14 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,007.30 | 8.16 | 1.64 | ||||||||||||
Hypothetical | 1,000.00 | 1,016.66 | 8.20 | 1.64 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,010.50 | 4.44 | 0.89 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.38 | 4.46 | 0.89 | ||||||||||||
Class R3 | ||||||||||||||||
Actual | 1,000.00 | 1,009.30 | 5.68 | 1.14 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.14 | 5.71 | 1.14 | ||||||||||||
Class R4 | ||||||||||||||||
Actual | 1,000.00 | 1,010.50 | 4.44 | 0.89 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.38 | 4.46 | 0.89 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,011.80 | 3.19 | 0.64 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.62 | 3.21 | 0.64 | ||||||||||||
JPMorgan Intrepid Sustainable Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,012.80 | 4.14 | 0.83 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.68 | 4.16 | 0.83 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,010.50 | 6.63 | 1.33 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.20 | 6.66 | 1.33 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,014.20 | 2.90 | 0.58 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.92 | 2.91 | 0.58 | ||||||||||||
JPMorgan Intrepid Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 1,009.00 | 4.13 | 0.83 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.68 | 4.16 | 0.83 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 1,006.70 | 6.62 | 1.33 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.20 | 6.66 | 1.33 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 1,010.30 | 2.94 | 0.59 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.87 | 2.96 | 0.59 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 1,007.60 | 5.43 | 1.09 | ||||||||||||
Hypothetical | 1,000.00 | 1,019.39 | 5.46 | 1.09 |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 69 |
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SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value January 1, 2018 | Ending Account Value June 30, 2018 | Expenses Paid During the Period* | Annualized Expense Ratio | |||||||||||||
JPMorgan Intrepid Value Fund (continued) | ||||||||||||||||
Class R5 | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,011.10 | $ | 2.19 | 0.44 | % | ||||||||
Hypothetical | 1,000.00 | 1,022.61 | 2.21 | 0.44 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 1,011.60 | 1.70 | 0.34 | ||||||||||||
Hypothetical | 1,000.00 | 1,023.11 | 1.71 | 0.34 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
70 | J.P. MORGAN INTREPID FUNDS | JUNE 30, 2018 |
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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 June 30, 2018. 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, 2018. The information necessary to complete your income tax returns for the calendar year ending December 31, 2018 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended June 30, 2018:
Dividends Received Deduction | ||||
JPMorgan Intrepid America Fund | 45.74 | % | ||
JPMorgan Intrepid Growth Fund | 100.00 | |||
JPMorgan Intrepid Mid Cap Fund | 45.89 | |||
JPMorgan Intrepid Sustainable Equity Fund | 94.51 | |||
JPMorgan Intrepid Value Fund | 53.88 |
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 June 30, 2018 (amounts in thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Intrepid America Fund | $ | 349,651 | ||
JPMorgan Intrepid Growth Fund | 6,532 | |||
JPMorgan Intrepid Mid Cap Fund | 63,948 | |||
JPMorgan Intrepid Sustainable Equity Fund | 989 | |||
JPMorgan Intrepid Value Fund | 127,831 |
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 June 30, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Intrepid America Fund | $ | 80,847 | ||
JPMorgan Intrepid Growth Fund | 8,634 | |||
JPMorgan Intrepid Mid Cap Fund | 7,633 | |||
JPMorgan Intrepid Sustainable Equity Fund | 311 | |||
JPMorgan Intrepid Value Fund | 25,217 |
JUNE 30, 2018 | J.P. MORGAN INTREPID FUNDS | 71 |
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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 prospectuses 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 businesses 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., 2018. All rights reserved. June 2018. | AN-INT-618 |
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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 13(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 October 31, 2017, Dennis P. Harrington replaced James Schonbachler 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
2018 – $411,932
2017 – $411,344
(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
2018 – $58,400
2017 – $57,800
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
2018 – $153,003
2017 – $151,461
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 June 30, 2018 and 2017, 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
2018 – Not applicable
2017 – 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 services included on the Pre-approval List
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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.
2018 – 0.0%
2017 – 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:
2017—$32.2 million
2016—$28.5 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. | 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. |
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. |
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 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.
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ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
(a) | File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. |
(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.
(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.
(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 | ||
August 31, 2018 |
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 | ||
August 31, 2018 |
By: | /s/ Timothy J. Clemens | |
Timothy J. Clemens | ||
Treasurer and Principal Financial Officer | ||
August 31, 2018 |