Table of Contents
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, Esq.
270 Park Avenue
New York, NY 10017
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (800) 480-4111
Date of fiscal year end: October 31
Date of reporting period: November 1, 2017 through October 31, 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.
Table of Contents
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).
Table of Contents
Annual Report
J.P. Morgan International Equity Funds
October 31, 2018
JPMorgan Emerging Economies Fund
JPMorgan Emerging Markets Equity Fund
JPMorgan Europe Dynamic Fund
(formerly known as JPMorgan Intrepid European Fund)
JPMorgan Global Research Enhanced Index Fund
JPMorgan Global Unconstrained Equity Fund
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
JPMorgan International Equity Fund
JPMorgan International Equity Income Fund
JPMorgan International Research Enhanced Equity Fund
JPMorgan International Unconstrained Equity Fund
JPMorgan International Value Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website www.jpmorganfunds.com and you will be notified by mail each time a report is posted and provided with a website to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker dealer, bank, or retirement plan) or, if you are a direct investor, by going to www.jpmorganfunds.com/edelivery.
You may elect to receive paper copies of all future reports free of charge. Contact your financial intermediary or, if you invest directly with the Fund, email us at funds.website.support@jpmorganfunds.com or call 1-800-480-4111. Your election to receive paper reports will apply to all funds held within your account(s).
Table of Contents
CEO’s Letter | 1 | |||
Market Overview | 2 | |||
3 | ||||
6 | ||||
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) | 10 | |||
13 | ||||
15 | ||||
JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) | 17 | |||
19 | ||||
21 | ||||
25 | ||||
27 | ||||
30 | ||||
Schedules of Portfolio Investments | 33 | |||
Financial Statements | 78 | |||
Financial Highlights | 106 | |||
Notes to Financial Statements | 128 | |||
Report of Independent Registered Public Accounting Firm | 156 | |||
Trustees | 157 | |||
Officers | 160 | |||
Schedule of Shareholder Expenses | 161 | |||
Board Approval of Investment Advisory Agreements | 166 | |||
Tax Letter | 172 | |||
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.
Table of Contents
November 30, 2018 (Unaudited)
Dear Shareholders,
While the global economic expansion continued, it also became less balanced as European economies slowed and several large emerging market nations struggled with rising interest rates, global trade tensions and/or political uncertainty.
![]() |
“Record high corporate earnings and continued low inflation provided support for U.S. equity prices, but global financial markets experienced increased volatility throughout 2018 as equity and bond prices slumped in both developed and emerging markets.” |
U.S. growth largely outpaced other developed markets during the twelve months ended October 31, 2018 and the synchronized growth that characterized the global economy in 2017 had largely dissipated by the end of the period. Record high corporate earnings and continued low inflation provided support for U.S. equity prices, but global financial markets experienced increased volatility throughout 2018 as equity and bond prices slumped in both developed and emerging markets.
The current U.S. economic expansion became the second longest on record in May 2018 and in July 2018 entered its ninth year. Gross domestic product (GDP) in the U.S. rose an estimated 3.5% for the third quarter of 2018, following a strong showing of 4.2% growth in the second quarter. Already-low unemployment in the U.S. fell to 3.7% in the final two months of the reporting period — a level not seen since the late 1960s — and wage growth jumped 3.2% for production and nonsupervisory workers in October to its highest level since 2009. This helped drive U.S. consumer confidence to its highest levels in 18 years.
Against this backdrop, the U.S. Federal Reserve (the “Fed”) raised interest rates four times during the reporting period and indicated it would raise rates once more by the end of 2018. Importantly, inflation remained subdued throughout the reporting period, which allowed the Fed to provide investors with a relatively steady and predictable path toward higher interest rates.
Across Europe, economic growth slowed during the reporting period, pinched by trade tensions with the U.S. and political uncertainty within the European Union (EU). The 19-nation euro area’s GDP growth reached 2.7% in the fourth quarter of 2017, then slowed in subsequent quarters and fell to an estimated 1.6% in the third quarter of 2018. Unusually cold weather and labor unrest in France and Germany in early 2018 were initially blamed for slowing growth, but subsequent data pointed to a drop in export growth in the EU.
The impending U.K. “Brexit” from the EU — with or without a bilateral agreement — also weighed on investor and business
sentiment. While negotiations continued between the U.K. and the EU, disagreement over U.K. Prime Minister Theresa May’s draft agreement led to a rift within her Conservative Party subsequent to the end of the reporting period. The March 2018 election of a “euro-sceptic” populist government in Italy also added to uncertainty across Europe.
While rising global energy prices helped oil exporting nations, those emerging market nations that are most reliant on foreign debt financing were hurt by rising borrowing costs and a stronger U.S. dollar. Argentina, Brazil, Turkey, South Africa and Indonesia experienced weakness in their currencies as investors pulled capital out of those markets. While China’s economy continued to grow, policy curbs on domestic credit growth early in the reporting period and rising trade tariffs between China and the U.S. in the latter portion of the reporting period were believed to have weighed on China’s economy.
Overall, financial markets outside the U.S. suffered from increased volatility and capital outflows, particularly in the latter part of the reporting period. The MSCI Emerging Markets Index returned -12.2% and the MSCI EAFE Index of non-U.S. developed market equity returned -6.4%. The S&P 500 Index returned 7.35%. Bond markets also underperformed U.S. equity and the Bloomberg Barclays Emerging Markets Debt Index returned -3.39% and the Bloomberg Barclays U.S. Aggregate Index returned -2.05%.
In October 2018, the International Monetary Fund revised downward its forecast for global economic growth to 3.7% for both 2018 and 2019. The organization noted that as the global expansion has continued, the risks from rising trade barriers, higher borrowing costs, elevated petroleum prices and geo-political factors have increased while the potential for positive surprises has receded. Meanwhile, global unemployment continued to shrink through the end of October 2018 and corporate profits, particularly in the U.S., remained elevated.
We believe that among the best tools for navigating the current market environment are a well-diversified investment portfolio and a long term view. 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
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 1 |
Table of Contents
J.P. Morgan International Equity Funds
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
U.S. equity markets outperformed other developed market equity as well as emerging markets equity during the reporting period. Record corporate profits, low unemployment rates and high levels of both consumer and business confidence helped propel U.S. equity prices higher. Globally, bond markets largely underperformed equity markets.
After reaching record highs in the final months of 2017, the S&P 500 Index closed in record high territory 14 times in January 2018. However, a sharp sell-off in both equity and bond markets in early February 2018 spread to other markets and helped lift market volatility from historic lows. While global equity and bond prices rebounded somewhat in subsequent months, it wasn’t until August 2018 that the S&P 500 Index returned to record highs. U.S. equity market volatility remained elevated in September and October 2018. For the twelve month reporting period, the S&P 500 Index returned 7.35%.
Meanwhile, economic growth in the European Union (EU) decelerated during the reporting period amid weakness in European exports and consumer confidence. Geo-political events, including a newly elected populist government in Italy and continued uncertainty over the final terms of a so-called Brexit agreement also weighed down equity and bond prices across the EU. Investor fears that the U.K. would leave the EU without an exit agreement also weighed on equity prices in London. For the reporting period, the MSCI EAFE Index returned -6.39%.
In emerging markets, a slowdown in credit growth in China and investor concerns about global trade tensions hurt equity prices. A stronger U.S. dollar and rising U.S. interest rates put further pressure on emerging markets, particularly those nations most reliant on foreign lending. For the reporting period, the MSCI Emerging Markets Index returned -12.19%, while the Bloomberg Barclays Emerging Markets Debt Index returned -3.39%.
2 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Emerging Economies Fund
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (17.19)% | |||
MSCI Emerging Markets Index (net of foreign withholding taxes) | (12.52)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 1,555,657 |
INVESTMENT OBJECTIVE**
The JPMorgan Emerging Economies Fund (the “Fund”) seeks long-term capital growth.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI Emerging Markets Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
The Fund’s overweight position and security selection in the basic materials sector and its overweight position in the financials sector were leading contributors to performance relative to the Benchmark. The Fund’s security selection in the information technology and energy sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Yageo Corp., Banco do Brasil SA and Banco Santander (Brasil) SA. Shares of Yageo, a Taiwan manufacturer of electronics components, rose amid a reduction in output from its competitors in China and Japan. Shares of Brazilian banks Banco do Brasil and Banco Santander rose amid a rally in Brazil’s financial markets following the election of right-wing politician Jair Bolsonaro to the nation’s presidency.
Leading individual detractors from relative performance included the Fund’s underweight positions in Petroleo Brasileiro SA and its overweight positions in Global Wafers Co. and
Sino-American Silicon Products Inc. Shares of Petroleo Brasileiro, Brazil’s state-controlled energy company, rose amid a rebound in global oil prices. Shares of Global Wafers, a Taiwan semiconductor maker, fell amid lower-than-expected demand for its products. Shares of Sino-American Silicon Products, a Taiwan maker of semiconductor components that was not held in the Benchmark, fell amid weak demand for semiconductors.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers used a combination of top-down and bottom-up research, seeking what they believed to be attractively priced countries, sectors and securities with positive catalysts. As a result of this process, the Fund’s largest overweight country positions relative to the Benchmark during the twelve months ended October 31, 2018, were in Russia and Turkey and its largest underweight country positions were in India and South Africa. From a sector perspective, the Fund’s largest overweight allocations relative to the Benchmark were in the materials and financials sectors, while its largest underweight allocations were to the consumer discretionary and consumer staples sectors.
* | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 3 |
Table of Contents
JPMorgan Emerging Economies Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Tencent Holdings Ltd. (China) | 4.5 | % | |||||
2. | Samsung Electronics Co. Ltd. (South Korea) | 3.4 | ||||||
3. | Alibaba Group Holding Ltd., ADR (China) | 2.9 | ||||||
4. | China Construction Bank Corp., Class H (China) | 2.4 | ||||||
| 5. | | Industrial & Commercial Bank of China Ltd., Class H (China) | 2.2 | ||||
6. | Itau Unibanco Holding SA, ADR (Brazil) | 1.9 | ||||||
| 7. | | Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | 1.7 | ||||
8. | LUKOIL PJSC, ADR (Russia) | 1.7 | ||||||
9. | Baidu, Inc., ADR (China) | 1.7 | ||||||
10. | Banco do Brasil SA (Brazil) | 1.4 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
China | 30.6 | % | ||
Taiwan | 14.1 | |||
South Korea | 13.9 | |||
Brazil | 11.0 | |||
Russia | 7.3 | |||
Thailand | 4.3 | |||
India | 3.7 | |||
South Africa | 3.4 | |||
Turkey | 1.7 | |||
Hungary | 1.7 | |||
United States | 1.1 | |||
Malaysia | 1.0 | |||
Indonesia | 1.0 | |||
Others (each less than 1.0%) | 2.5 | |||
Short-Term Investments | 2.7 |
*** | Percentages indicated are based on total investments as of October 31, 2018. The Fund’s portfolio composition is subject to change. |
4 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 28, 2008 | |||||||||||||
With Sales Charge* | (21.77 | )% | (2.33 | )% | 6.34 | % | ||||||||
Without Sales Charge | (17.41 | ) | (1.26 | ) | 6.92 | |||||||||
CLASS C SHARES | February 28, 2008 | |||||||||||||
With CDSC** | (18.80 | ) | (1.76 | ) | 6.40 | |||||||||
Without CDSC | (17.80 | ) | (1.76 | ) | 6.40 | |||||||||
CLASS I SHARES | February 28, 2008 | (17.19 | ) | (1.03 | ) | 7.19 | ||||||||
CLASS R5 SHARES | February 28, 2008 | (17.16 | ) | (0.85 | ) | 7.39 | ||||||||
CLASS R6 SHARES | September 1, 2015 | (17.02 | ) | (0.80 | ) | 7.42 |
* | 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 (10/31/08 TO 10/31/18)
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 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 Emerging Economies Fund, the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Index from October 31, 2008 to October 31, 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 MSCI Emerging Markets Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation treaties. The performance of the Lipper Emerging Markets Funds Index includes expenses associated with a mutual fund, such as investment management fees. These
expenses are not identical to the expenses incurred by the Fund. The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The Lipper Emerging Markets Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 5 |
Table of Contents
JPMorgan Emerging Markets Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | (13.13)% | |||
MSCI Emerging Markets Index (net of foreign withholding taxes) | (12.52)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 4,601,205 |
INVESTMENT OBJECTIVE**
The JPMorgan Emerging Markets Equity Fund (the “Fund”) seeks to provide high total return.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the MSCI Emerging Markets Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s underweight position and security selection in both the energy and materials sectors were leading detractors from performance relative to the Benchmark. The Fund’s security selection and overweight position in the financials sector and its security selection in the information technology sector were leading contributors to relative performance.
By country, the Fund’s security selection in Russia and Brazil was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in South Africa and its underweight position in South Korea were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Hangzhou Robam Appliances Co. and Kroton Educacional SA and its underweight position in Vale SA. Shares of Hangzhou Robam Appliances, a China-based kitchen appliance maker that was not held in the Benchmark, fell after the company reported a decline in earnings for the third quarter of 2018. Shares of Kroton Educacional, a Brazilian educational services provider, fell after the company reported lower-than-expected revenue and a decline in student enrollments. Shares of Vale, a Brazilian mining company that was not held in the Fund, rose amid an increase in iron ore prices at the end of the reporting period.
Leading individual contributors to relative performance included the Fund’s overweight overweight positions in 3B SA Brasil Bolsa Balcao, AIA Group Ltd and Tata Consultancy Services Ltd. Shares of 3B SA, a Brazilian financial exchange operator, rose amid a rally in Brazil’s financial markets on the election of right-wing politician Jair Bolsonaro to the nation’s presidency. Shares of AIA Group, a Hong Kong life insurer that was not held in the Benchmark, rose amid continued earnings growth during the reporting period. Shares of Tata Consultancy Services, a provider of information technology and outsourcing services based in India, rose on earnings growth during the reporting period.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers employed an active strategy in which portfolio construction was focused on the highest-conviction ideas found at the security level. The Fund’s portfolio managers used bottom-up fundamental research to determine the Fund’s security weightings, researching companies in an attempt to determine their underlying value and potential for future earnings growth. As a result of this process, the Fund’s largest overweight positions relative to the Benchmark were in the financials, consumer discretionary and consumer staples sectors and its largest relative underweight positions were in the energy, materials and telecommunication services sectors. The Fund’s largest overweight positions relative to the Benchmark were in India, China and Argentina and its largest relative underweight positions were in South Korea, Taiwan and Malaysia.
* | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
6 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Alibaba Group Holding Ltd., ADR (China) | 5.3 | % | |||||
2. | Tencent Holdings Ltd (China). | 5.1 | ||||||
3. | Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | 4.9 | ||||||
4. | AIA Group Ltd. (Hong Kong) | 4.6 | ||||||
5. | Samsung Electronics Co. Ltd. (South Korea) | 4.5 | ||||||
6. | Ping An Insurance Group Co. of China Ltd., Class H (China) | 4.5 | ||||||
7. | Housing Development Finance Corp. Ltd. (India) | 4.2 | ||||||
8. | Sberbank of Russia PJSC (Russia) | 3.0 | ||||||
9. | HDFC Bank Ltd. (India) | 2.2 | ||||||
10. | Itau Unibanco Holding SA, ADR (Brazil) | 2.2 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
China | 26.5 | % | ||
India | 16.6 | |||
Brazil | 10.6 | |||
Taiwan | 7.2 | |||
Hong Kong | 6.4 | |||
South Korea | 6.2 | |||
South Africa | 5.8 | |||
Mexico | 3.3 | |||
Russia | 3.0 | |||
Indonesia | 2.5 | |||
Argentina | 2.1 | |||
United States | 1.9 | |||
Peru | 1.3 | |||
Macau | 1.2 | |||
Others (each less than 1.0%) | 4.1 | |||
Short-Term Investments | 1.3 |
*** | Percentages indicated are based on total investments as of October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 7 |
Table of Contents
JPMorgan Emerging Markets Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 28, 2001 | |||||||||||||
With Sales Charge* | (17.99 | )% | 0.10 | % | 6.55 | % | ||||||||
Without Sales Charge | (13.44 | ) | 1.18 | 7.12 | ||||||||||
CLASS C SHARES | February 28, 2006 | |||||||||||||
With CDSC** | (14.87 | ) | 0.68 | 6.59 | ||||||||||
Without CDSC | (13.87 | ) | 0.68 | 6.59 | ||||||||||
CLASS I SHARES | September 10, 2001 | (13.20 | ) | 1.44 | 7.39 | |||||||||
CLASS L SHARES | November 15, 1993 | (13.13 | ) | 1.58 | 7.55 | |||||||||
CLASS R2 SHARES | July 31, 2017 | (13.69 | ) | 1.04 | 7.05 | |||||||||
CLASS R3 SHARES | July 31, 2017 | (13.46 | ) | 1.18 | 7.12 | |||||||||
CLASS R4 SHARES | July 31, 2017 | (13.25 | ) | 1.43 | 7.38 | |||||||||
CLASS R5 SHARES | September 9, 2016 | (13.14 | ) | 1.58 | 7.55 | |||||||||
CLASS R6 SHARES | December 23, 2013 | (13.05 | ) | 1.67 | 7.60 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/08 TO 10/31/18)
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 R5 Shares and Class R6 Shares prior to their inception dates are based on the performance of Class L Shares. The actual returns of Class R5 Shares and Class R6 Shares would have been different than those shown because Class R5 Shares and Class R6 Shares have different expenses than Class L Shares.
Returns shown for Class R2 Shares and Class R3 Shares prior to their inception are based on the performance of Class A Shares. The actual returns of Class R2 Shares and Class R3 Shares would have been lower than those shown because Class R2 Shares and Class R3 Shares have higher expenses than Class A Shares.
Returns for Class R4 Shares prior to its inception date are based on the performance of Class I Shares. The actual returns of Class R4 Shares would have been lower than those shown because Class R4 Shares have higher expenses than Class I Shares.
The graph illustrates comparative performance for $3,000,000 invested in Class L Shares of the JPMorgan Emerging Markets Equity Fund, the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Index from October 31, 2008 to October 31, 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 MSCI Emerging Markets Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation treaties. The performance of the Lipper Emerging Markets Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The Lipper Emerging Markets Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class L Shares have a $3,000,000 minimum initial investment.
8 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation
policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 9 |
Table of Contents
(formerly known as JPMorgan Intrepid European Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class A Shares, without a sales charge)* | (13.72)% | |||
MSCI Europe Index (net of foreign withholding taxes) | (8.34)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 685,347 |
INVESTMENT OBJECTIVE**
The JPMorgan Europe Dynamic Fund (the “Fund”) seeks total return from long-term capital growth. Total return consists of capital growth and current income.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, underperformed the MSCI Europe Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
The Fund’s security selection and overweight positions in both the consumer durables & apparel sector and the banks sector were leading detractors from performance relative to the Benchmark. The Fund’s security selection in the both food, beverage & tobacco sector and the software & services sector was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s underweight position in Royal Dutch Shell PLC, and its overweight positions in Evotec AG and ING Groep NV. Shares of Royal Dutch Shell, a petroleum and natural gas producer that was not held in the Fund, rose amid rising global oil prices during the reporting period. Shares of Evotec, a German drug development company that was not held in the Benchmark, fell amid investor concerns about falling drug prices in the U.S. and concerns about the company’s relatively high debt level. Shares of
ING Groep, a Netherlands banking and insurance company, fell amid an investigation into the bank’s failure to identify money laundering activities and public outcry over an initial plan for a 50% increase in pay for Chief Executive Ralph Hamers.
Leading individual positive contributors to relative performance included the Fund’s overweight position in Wirecard AG and its underweight positions in British American Tobacco PLC and Anheuser-Busch InBev SA. Shares of Wirecard, a German provider of payment processing technology, rose amid the company’s forecast for earnings and revenue growth. Shares of British American Tobacco, a maker of tobacco products that was not held in the Fund, fell after the company forecast unfavorable currency exchange rates would hurt earnings. Shares of Anheuser-Bush InBev, a Belgium-based brewer that was not held in the Fund, fell after the company reported a decline in earnings and revenue for the third quarter of 2018, and reduced its dividend.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers believe that attractively valued, high quality securities with positive momentum have the potential to outperform the market. During the reporting period, the Fund’s portfolio managers invested in securities that they believed had these style characteristics. Portfolio positions were based on bottom-up security selection rather than top-down asset allocation decisions.
10 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Roche Holding AG (Switzerland) | 4.5 | % | |||||
2. | Novartis AG (Registered) (Switzerland) | 4.0 | ||||||
3. | Allianz SE (Registered) (Germany) | 2.6 | ||||||
4. | GlaxoSmithKline plc (United Kingdom) | 2.5 | ||||||
5. | Zurich Insurance Group AG (Switzerland) | 2.3 | ||||||
6. | Rio Tinto plc (Australia) | 2.3 | ||||||
7. | Repsol SA (Spain) | 2.2 | ||||||
8. | ING Groep NV (Netherlands) | 2.0 | ||||||
9. | Safran SA (France) | 1.9 | ||||||
10. | Eni SpA (Italy) | 1.9 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
France | 17.2 | % | ||
Switzerland | 17.0 | |||
United Kingdom | 15.1 | |||
Netherlands | 8.9 | |||
Germany | 6.4 | |||
Sweden | 5.6 | |||
Italy | 4.7 | |||
Spain | 4.3 | |||
Denmark | 2.9 | |||
Finland | 2.7 | |||
Australia | 2.3 | |||
Belgium | 1.6 | |||
Luxembourg | 1.3 | |||
Jordan | 1.2 | |||
United States | 1.1 | |||
Others (each less than 1.0%) | 0.9 | |||
Short-Term Investments | 6.8 |
* | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 11 |
Table of Contents
JPMorgan Europe Dynamic Fund
(formerly known as JPMorgan Intrepid European Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | November 2, 1995 | |||||||||||||
With Sales Charge* | (18.25 | )% | (0.97 | )% | 6.12 | % | ||||||||
Without Sales Charge | (13.72 | ) | 0.11 | 6.70 | ||||||||||
CLASS C SHARES | November 1, 1998 | |||||||||||||
With CDSC** | (15.18 | ) | (0.39 | ) | 6.16 | |||||||||
Without CDSC | (14.18 | ) | (0.39 | ) | 6.16 | |||||||||
CLASS I SHARES | September 10, 2001 | (13.53 | ) | 0.40 | 6.98 | |||||||||
CLASS L SHARES | September 10, 2001 | (13.41 | ) | 0.57 | 7.20 | |||||||||
CLASS R6 SHARES | October 1, 2018 | (13.41 | ) | 0.57 | 7.20 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/08 TO 10/31/18)
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 L Shares. The actual returns of Class R6 Shares would have been different than those shown because 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 Europe Dynamic Fund, the MSCI Europe Index and the Lipper European Region Funds Index from October 31, 2008 to October 31, 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 MSCI Europe Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident individual investors who do not benefit from double taxation treaties. The performance of the Lipper European Region Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI
Europe Index (net of foreign withholding taxes) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe. The Lipper European Region Funds Index represents 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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
12 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Research Enhanced Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | 0.09% | |||
MSCI World Index (net of foreign withholding taxes) | 1.16% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 5,846,976 |
INVESTMENT OBJECTIVE**
The JPMorgan Global Research Enhanced Index Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI World Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the insurance and basic industries sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the technology-software and transportation sectors was a leading contributor to relative performance.
By region, the Fund’s security selection in North America was a leading detractor from relative performance, while the Fund’s security selection in the Asia Pacific, excluding Japan, was a modest contributor to relative performance.
Due to the Fund holding a relatively large number of securities during the period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund sought to outperform the Benchmark over time, while seeking to achieve sector, geographic and risk characteristics similar to that of the Benchmark. Using the fundamental equity insights generated by JPMorgan’s team of analysts, the Fund’s portfolio managers took marginally overweight positions in securities that they considered undervalued, while being marginally underweight in or not holding securities in the Benchmark that they considered overvalued.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Apple, Inc. (United States) | 2.9 | % | |||||
2. | Microsoft Corp. (United States) | 2.3 | ||||||
3. | Amazon.com, Inc. (United States) | 1.9 | ||||||
4. | Alphabet, Inc., Class C (United States) | 1.1 | ||||||
5. | UnitedHealth Group, Inc. (United States) | 1.0 | ||||||
6. | Bank of America Corp. (United States) | 0.9 | ||||||
7. | Johnson & Johnson (United States) | 0.9 | ||||||
8. | Pfizer, Inc. (United States) | 0.9 | ||||||
9. | Alphabet, Inc., Class A (United States) | 0.8 | ||||||
10. | Visa, Inc., Class A (United States) | 0.8 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
United States | 62.6 | % | ||
Japan | 8.1 | |||
United Kingdom | 5.2 | |||
France | 4.2 | |||
Canada | 3.2 | |||
Germany | 3.1 | |||
Switzerland | 3.0 | |||
Australia | 2.9 | |||
Netherlands | 2.1 | |||
Hong Kong | 1.2 | |||
Others (each less than 1.0%) | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 13 |
Table of Contents
JPMorgan Global Research Enhanced Index Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||||
CLASS I SHARES | February 28, 2013 | 0.09 | % | 6.83 | % | 8.78 | % | |||||||||
CLASS R6 SHARES | November 1, 2017 | 0.16 | 6.85 | 8.79 |
LIFE OF FUND PERFORMANCE (2/28/13 TO 10/31/18)
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 February 28, 2013.
Returns for Class R6 Shares prior to its inception date are based on the performance of Class I Shares. The actual returns of 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 Global Research Enhanced Index Fund, the MSCI World Index and the Lipper Global Large-Cap Core Funds Index from February 28, 2013 to October 31, 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 MSCI World Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the benchmark, if applicable. The performance of the Lipper Global Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Lipper Global Large-Cap Core Funds Index is an index based on the total returns of certain 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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
14 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (1.70)% | |||
MSCI All Country World Index (net of foreign withholding taxes) | (0.52)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $3,969 |
INVESTMENT OBJECTIVE**
The JPMorgan Global Unconstrained Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI All Country World Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the information technology and telecommunication services sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the financials and industrials sectors was a leading positive contributor to performance.
By region, the Fund’s security selection in North America and the U.K. detracted from performance relative to the Benchmark, while the Fund’s security selection in Europe, excluding the U.K., and in the Pacific, excluding Japan, was a leading contributor to relative performance.
Leading individual detractors from the Fund’s relative performance included its overweight positions in Altice NV, Renesas Electronics Corp. and AMS AG. Shares of Altice, a Netherlands telecommunications and media company, fell amid aggressive competition in France, one of the company’s largest markets. Shares of Renesas Electronics, a Japanese semiconductor manufacturer, fell amid investor concerns about the company’s planned acquisition of Integrated Device Technology Inc. Shares of AMS, an Austrian semiconductor manufacturer, fell after disappointing sales at one of its largest customers hurt AMS’s full year outlook.
Leading individual contributors to the Fund’s relative performance included its overweight positions in 21st Century Fox Inc., Amazon.com Inc. and Safran SA. Shares of 21st Century Fox, a media company, rose on news that Walt Disney Co. was bidding for the company. Shares of Amazon.com, an online retailer, rose amid continued sales and earnings growth. Shares of Safran, a French aerospace and defense company, rose amid strong demand from the airline industry.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers and analyst team conducted bottom-up fundamental research to construct a global portfolio
of what they believed were undervalued companies, characterized by sustainability of earnings, strong free cash flow and the ability to increase earnings faster than their sector peers.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Alphabet, Inc., Class C (United States) | 5.0 | % | |||||
2. | Microsoft Corp. (United States) | 3.9 | ||||||
3. | Novartis AG (Registered) (Switzerland) | 3.8 | ||||||
4. | HDFC Bank Ltd., ADR (India) | 3.8 | ||||||
5. | Nestle SA (Registered) (Switzerland) | 3.4 | ||||||
6. | �� | UnitedHealth Group, Inc. (United States) | 3.4 | |||||
7. | Coca-Cola Co. (The) (United States) | 3.3 | ||||||
8. | Tencent Holdings Ltd. (China) | 3.0 | ||||||
9. | Exxon Mobil Corp. (United States) | 2.9 | ||||||
10. | Amazon.com, Inc. (United States) | 2.9 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
United States | 55.6 | % | ||
Switzerland | 7.2 | |||
China | 5.1 | |||
Japan | 5.0 | |||
France | 4.3 | |||
United Kingdom | 4.2 | |||
India | 3.8 | |||
Austria | 2.5 | |||
Canada | 2.2 | |||
Indonesia | 1.8 | |||
Hong Kong | 1.8 | |||
Australia | 1.8 | |||
Singapore | 1.7 | |||
Spain | 1.7 | |||
Germany | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 15 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||||
CLASS A SHARES | November 30, 2011 | |||||||||||||||
With Sales Charge* | (7.18 | )% | 4.20 | % | 8.05 | % | ||||||||||
Without Sales Charge | (2.03 | ) | 5.32 | 8.89 | ||||||||||||
CLASS C SHARES | November 30, 2011 | |||||||||||||||
With CDSC** | (3.51 | ) | 4.79 | 8.35 | ||||||||||||
Without CDSC | (2.51 | ) | 4.79 | 8.35 | ||||||||||||
CLASS I SHARES | November 30, 2011 | (1.70 | ) | 5.66 | 9.23 | |||||||||||
CLASS R2 SHARES | November 30, 2011 | (2.31 | ) | 5.05 | 8.62 | |||||||||||
CLASS R5 SHARES | November 30, 2011 | (1.59 | ) | 5.79 | 9.38 | |||||||||||
CLASS R6 SHARES | November 30, 2011 | (1.48 | ) | 5.85 | 9.44 |
* | 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. |
LIFE OF FUND PERFORMANCE (11/30/11 TO 10/31/18)
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 November 30, 2011.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan Global Unconstrained Equity Fund, the MSCI All Country World Index and the Lipper Global Large-Cap Core Funds Index from November 30, 2011 to October 31, 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 MSCI All Country World Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper Global Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market perform-
ance of developed and emerging markets. The Lipper Global 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.
Subsequent to the inception date of the Fund and through January 5, 2015, the Fund did not experience any shareholder activity. If such shareholder activity had occurred, the Fund’s performance may have been impacted.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
16 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class A Shares, without a sales charge)* | (10.69)% | |||
MSCI EAFE Index (net of foreign withholding taxes) | (6.85)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $3,403,256 |
INVESTMENT OBJECTIVE**
The JPMorgan International Advantage Fund (the “Fund”) seeks to maximize long-term capital growth by investing primarily in equity securities in developed markets outside the U.S.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class A Shares, without a sales charge, underperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
The Fund’s underweight position in the materials sector and overweight position in the health care sector were leading detractors from performance relative to the Benchmark. The Fund’s security selection in the information technology sector and its security selection and overweight position in the financials sector were leading contributors to relative performance.
The Fund targeted investments in companies that exhibited specific growth, value and quality characteristics during the period. Due to the relatively large number of securities held in the Fund during the reporting period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers believe that attractively valued, high quality securities with positive momentum have the potential to outperform the market. During the reporting period, the Fund’s portfolio managers invested in securities that they believed were attractive based on their proprietary multifactor model.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Novartis AG (Registered) (Switzerland) | 2.3 | % | |||||
2. | Roche Holding AG (Switzerland) | 2.1 | ||||||
3. | Royal Dutch Shell plc, Class B (Netherlands) | 1.9 | ||||||
4. | Allianz SE (Registered) (Germany) | 1.5 | ||||||
5. | GlaxoSmithKline plc (United Kingdom) | 1.5 | ||||||
6. | Toyota Motor Corp. (Japan) | 1.5 | ||||||
7. | Rio Tinto plc (Australia) | 1.4 | ||||||
8. | Novo Nordisk A/S, Class B (Denmark) | 1.3 | ||||||
9. | Macquarie Group Ltd. (Australia) | 1.1 | ||||||
10. | Eni SpA (Italy) | 1.1 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
Japan | 24.1 | % | ||
United Kingdom | 11.4 | |||
Switzerland | 8.4 | |||
Australia | 7.3 | |||
France | 7.2 | |||
Netherlands | 6.7 | |||
Germany | 6.1 | |||
Sweden | 3.2 | |||
Norway | 3.2 | |||
Finland | 2.8 | |||
Singapore | 2.7 | |||
Spain | 2.5 | |||
Denmark | 2.4 | |||
Belgium | 2.2 | |||
Italy | 1.6 | |||
Hong Kong | 1.5 | |||
Luxembourg | 1.0 | |||
Others (each less than 1.0%) | 4.1 | |||
Short-Term Investments | 1.6 |
* | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 17 |
Table of Contents
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | April 30, 2001 | |||||||||||||
With Sales Charge* | (15.37 | )% | 0.19 | % | 5.53 | % | ||||||||
Without Sales Charge | (10.69 | ) | 1.28 | 6.10 | ||||||||||
CLASS C SHARES | February 28, 2006 | |||||||||||||
With CDSC** | (12.12 | ) | 0.78 | 5.57 | ||||||||||
Without CDSC | (11.12 | ) | 0.78 | 5.57 | ||||||||||
CLASS I SHARES | February 28, 2006 | (10.43 | ) | 1.59 | 6.40 | |||||||||
CLASS R2 SHARES | November 3, 2008 | (10.93 | ) | 1.01 | 5.83 | |||||||||
CLASS R6 SHARES | May 29, 2015 | (10.26 | ) | 1.78 | 6.63 |
* | 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 (10/31/08 TO 10/31/18)
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 its 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 R6 Shares prior to its inception date are based on the performance of the now liquidated Institutional Class Shares. The actual returns of R6 Shares would have been different than those shown because R6 Shares have different expenses than Institutional Class Shares.
The graph illustrates comparative performance for $10,000 invested in Class A Shares of the JPMorgan International Advantage Fund, the MSCI EAFE Index and the Lipper International Multi-Cap Core Funds Index from October 31, 2008 to October 31, 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 MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Multi-Cap Core Funds Index
includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Multi-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $1,000 minimum initial investment 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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the U.S. and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
18 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (11.20)% | |||
MSCI EAFE Index (net of foreign withholding taxes) | (6.85)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $4,269,094 |
INVESTMENT OBJECTIVE**
The JPMorgan International Equity Fund (the “Fund”) seeks total return from long-term capital growth and income. Total return consists of capital growth and current income.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the information technology and health care sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the materials sector was a positive contributor to relative performance.
By region, the Fund’s security selection in the U.K. and Japan was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the Asia-Pacific region, excluding Japan, was the leading contributor to relative performance.
Leading individual detractors from the Fund’s relative performance included its overweight positions in AMS AG, Continental AG and Samsung Electronics Co. Shares of AMS, an Austrian maker of analog semiconductors and sensors that was not held in the Benchmark, fell after the company forecast lackluster results for the fourth quarter of 2018 and for the full year 2019. Shares of Continental, a German tire and auto parts manufacturer, fell after the company reduced its sales forecast for 2018, citing weaker demand for tires and higher costs of developing hybrid and electric vehicle systems. Shares of Samsung Electronics, a South Korean consumer electronics and semiconductors manufacturer that was not held in the Benchmark, fell amid narrower profit margins for smartphones and falling prices for semiconductors.
Leading individual contributors to the Fund’s relative performance included the Fund’s overweight positions in Linde AG, Safran AG and Novartis AG. Shares of Linde, a U.K. producer of industrial gases, rose ahead of its planned merger with Praxair Inc. Shares of Safran, a French aerospace and defense company, rose amid strong demand from the airline industry. Shares of Novartis, a Swiss drug maker, rose after the company raised is sales forecast for 2018.
HOW WAS THE FUND POSITIONED?
The Fund’s portfolio managers continued to focus on security selection to build a portfolio of international equities. They
used bottom-up fundamental research to identify what they believed were attractively priced securities of companies with solid financial positions that possessed the potential to increase their earnings faster than their industry peers.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Nestle SA (Registered) (Switzerland) | 3.5 | % | |||||
2. | Royal Dutch Shell plc, Class A (Netherlands) | 3.4 | ||||||
3. | Novartis AG (Registered) (Switzerland) | 2.8 | ||||||
4. | Unilever plc (United Kingdom) | 2.3 | ||||||
5. | Roche Holding AG (Switzerland) | 2.2 | ||||||
6. | AIA Group Ltd. (Hong Kong) | 2.0 | ||||||
7. | SAP SE (Germany) | 2.0 | ||||||
8. | GlaxoSmithKline plc (United Kingdom) | 2.0 | ||||||
9. | Diageo plc (United Kingdom) | 1.9 | ||||||
10. | ASML Holding NV (Netherlands) | 1.8 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
United Kingdom | 18.6 | % | ||
Japan | 16.8 | |||
France | 14.5 | |||
Switzerland | 13.7 | |||
Germany | 7.3 | |||
Netherlands | 6.4 | |||
Hong Kong | 2.9 | |||
China | 2.2 | |||
Australia | 1.7 | |||
South Korea | 1.4 | |||
Denmark | 1.3 | |||
Singapore | 1.3 | |||
India | 1.2 | |||
Sweden | 1.2 | |||
Spain | 1.1 | |||
United States | 1.0 | |||
Others (each less than 1.0%) | 3.5 | |||
Short-Term Investments | 3.9 |
* | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 19 |
Table of Contents
JPMorgan International Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | February 28, 2002 | |||||||||||||
With Sales Charge* | (16.09 | )% | (0.14 | )% | 5.67 | % | ||||||||
Without Sales Charge | (11.42 | ) | 0.94 | 6.24 | ||||||||||
CLASS C SHARES | January 31, 2003 | |||||||||||||
With CDSC** | (12.89 | ) | 0.43 | 5.70 | ||||||||||
Without CDSC | (11.89 | ) | 0.43 | 5.70 | ||||||||||
CLASS I SHARES | January 1, 1997 | (11.20 | ) | 1.19 | 6.51 | |||||||||
CLASS R2 SHARES | November 3, 2008 | (11.68 | ) | 0.68 | 5.96 | |||||||||
CLASS R5 SHARES | May 15, 2006 | (11.16 | ) | 1.36 | 6.70 | |||||||||
CLASS R6 SHARES | November 30, 2010 | (11.04 | ) | 1.42 | 6.74 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/08 TO 10/31/18)
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 its 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 R6 Shares prior to its inception date are based on the performance of Class R5 Shares. The actual returns of Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class R5 Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan International Equity Fund, the MSCI EAFE Index and the Lipper International Large-Cap Core Funds Index from October 31, 2008 to October 31, 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 MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The
performance of the Lipper International Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Large-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class 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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
20 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (5.98)% | |||
MSCI EAFE Index (net of foreign withholding taxes) | (6.85)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 141,451 |
INVESTMENT OBJECTIVE**
The JPMorgan International Equity Income Fund (the “Fund”) seeks to provide both current income and long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares outperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the basic industries and industrial cyclical sectors was a leading contributor to performance relative to the Benchmark. The Fund’s security selection in the consumer staples sector and property sectors was a leading detractor from relative performance.
By region, the Fund’s security selection in Europe and the U.K. was a leading contributor to performance relative to the Benchmark. The Fund’s out-of-Benchmark position in North America and its underweight position in Japan were leading detractors from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in Mitsubishi Corp., Royal Ahold Delhaize NV and UPM-Kymmene Oyj. Shares of Mitsubishi, an industrial conglomerate based in Japan, rose amid growth in its Asian markets and the launch of a new model automobile in Europe and Japan. Shares of Royal Ahold Delhaize, a Netherlands supermarkets operator, rose as the company continued to post better-than-expected quarterly earnings and sales. Shares of UPM-Kymmene, a Finnish paper, pulp and lumber company, rose after the company posted
strong earnings growth and forecast further profit growth for the second half of 2018.
Leading individual detractors from relative performance included the Fund’s overweight positions in TransCanada Corp., Sanofi and British American Tobacco PLC. Shares of TransCanada, an operator of natural gas and petroleum pipelines that was not held in the Benchmark, fell amid legal challenges to its planned Keystone XL pipeline in the U.S. Shares of Sanofi, a French pharmaceuticals company, fell after the company reported lower-than-expected sales for the first and second quarters of 2018. Shares of British American Tobacco, a maker of tobacco products, fell amid overall weakness in U.K. equity.
HOW THE FUND WAS MANAGED?
The Fund’s portfolio managers employed a bottom-up fundamental approach to security selection, rigorously researching companies in an attempt to determine their underlying value and potential for future growth. The Fund’s portfolio managers looked for dividend yielding equity securities that they believed were undervalued and possessed the long-term earnings power and strong cash flow generation that would enable them to grow their dividends.
* | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 21 |
Table of Contents
JPMorgan International Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Royal Dutch Shell plc, Class A (Netherlands) | 3.4 | % | |||||
2. | Novartis AG (Registered) (Switzerland) | 3.0 | ||||||
3. | Novo Nordisk A/S, Class B (Denmark) | 2.9 | ||||||
4. | Unilever NV, CVA (United Kingdom) | 2.7 | ||||||
5. | Rio Tinto plc (Australia) | 2.7 | ||||||
6. | Roche Holding AG (Switzerland) | 2.6 | ||||||
7. | Imperial Brands plc (United Kingdom) | 2.4 | ||||||
8. | Vinci SA (France) | 2.2 | ||||||
9. | TOTAL SA (France) | 2.2 | ||||||
10. | Nestle SA (Registered) (Switzerland) | 2.1 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
Japan | 17.6 | % | ||
United Kingdom | 15.8 | |||
France | 14.1 | |||
Switzerland | 12.5 | |||
Netherlands | 7.1 | |||
Australia | 7.0 | |||
Germany | 5.8 | |||
Denmark | 2.9 | |||
Finland | 2.3 | |||
United States | 2.1 | |||
Taiwan | 1.4 | |||
Italy | 1.4 | |||
Spain | 1.2 | |||
Singapore | 1.2 | |||
Canada | 1.2 | |||
Norway | 1.2 | |||
Hong Kong | 1.2 | |||
Sweden | 1.0 | |||
Others (each less than 1.0%) | 3.0 |
*** | Percentages indicated are based on total investments as of October 31, 2018. The Fund’s portfolio composition is subject to change. |
22 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | February 28, 2011 | |||||||||||||
With Sales Charge* | (11.08 | )% | 0.96 | % | 3.13 | % | ||||||||
Without Sales Charge | (6.18 | ) | 2.05 | 3.86 | ||||||||||
CLASS C SHARES | February 28, 2011 | |||||||||||||
With CDSC** | (7.68 | ) | 1.53 | 3.33 | ||||||||||
Without CDSC | (6.68 | ) | 1.53 | 3.33 | ||||||||||
CLASS I SHARES | February 28, 2011 | (5.98 | ) | 2.34 | 4.14 | |||||||||
CLASS R2 SHARES | February 28, 2011 | (6.53 | ) | 1.76 | 3.58 | |||||||||
CLASS R5 SHARES | February 28, 2011 | (5.90 | ) | 2.46 | 4.30 | |||||||||
CLASS R6 SHARES | January 30, 2015 | (5.80 | ) | 2.50 | 4.32 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (2/28/11 TO 10/31/18)
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 February 28, 2011.
Returns for Class R6 Shares prior to its inception date are based on the performance of Class R5 Shares. The actual returns for Class R6 Shares would have been different than those shown because Class R6 Shares have different expenses than Class R5 Shares.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan International Equity Income Fund, the MSCI EAFE Index and the Lipper International Equity Income Funds Index from February 28, 2011 to October 31, 2018. Return information prior to July 31, 2013 for the Lipper International Equity Income Funds Index is not provided by Lipper, Inc. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any, and does not include a sales charge. The performance of the MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Equity Income Funds Index includes expenses associated with a mutual
fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Equity Income Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 23 |
Table of Contents
JPMorgan International Equity Income Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or
related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
24 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (8.42)% | |||
MSCI EAFE Index (net of foreign withholding taxes) | (6.85)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $ | 4,700,618 |
INVESTMENT OBJECTIVE**
The JPMorgan International Research Enhanced Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI EAFE Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the consumer non-durable and insurance sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the industrial cyclical and transport services & consumer cyclical sector was a leading contributor to relative performance.
By region, the Fund’s security selection in Europe and Japan detracted from relative performance, while the Fund’s security selection in the Pacific, excluding Japan, made a positive contribution to performance relative to the Benchmark.
Due to the Fund holding a relatively large number of securities during the period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
The Fund sought to outperform the Benchmark over time, while seeking to achieve sector, geographic and risk characteristics similar to that of the Benchmark. Using the fundamental equity insights generated by analysts, the Fund’s portfolio managers took a marginally overweight position in securities included within the universe of the Benchmark that they considered undervalued, while marginally underweighting or not holding securities in the Benchmark that they considered overvalued.
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Nestle SA (Registered) (Switzerland) | 2.3 | % | |||||
2. | Roche Holding AG (Switzerland) | 2.1 | ||||||
3. | TOTAL SA (France) | 1.7 | ||||||
4. | Royal Dutch Shell plc, Class B (Netherlands) | 1.6 | ||||||
5. | SAP SE (Germany) | 1.6 | ||||||
6. | Toyota Motor Corp. (Japan) | 1.5 | ||||||
7. | Sanofi (France) | 1.4 | ||||||
8. | British American Tobacco plc (United Kingdom) | 1.4 | ||||||
9. | Air Liquide SA (France) | 1.4 | ||||||
10. | Novartis AG (Registered) (Switzerland) | 1.4 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
Japan | 23.8 | % | ||
United Kingdom | 13.5 | |||
France | 12.7 | |||
Switzerland | 9.7 | |||
Germany | 9.0 | |||
Australia | 6.1 | |||
Netherlands | 5.7 | |||
Spain | 3.6 | |||
Hong Kong | 2.7 | |||
Italy | 2.1 | |||
Denmark | 1.6 | |||
Finland | 1.6 | |||
Sweden | 1.3 | |||
Belgium | 1.3 | |||
Singapore | 1.0 | |||
Ireland | 1.0 | |||
Others (each less than 1.0%) | 2.1 | |||
Short-Term Investments | 1.2 |
* | 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 October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 25 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | April 23, 1993 | |||||||||||||
With Sales Charge* | (13.46 | )% | 0.59 | % | 5.47 | % | ||||||||
Without Sales Charge | (8.66 | ) | 1.67 | 6.04 | ||||||||||
CLASS I SHARES | October 28, 1992 | (8.42 | ) | 1.93 | 6.31 | |||||||||
CLASS R6 SHARES | November 1, 2017 | (8.31 | ) | 1.95 | 6.32 |
* | Sales Charge for Class A Shares is 5.25%. |
TEN YEAR PERFORMANCE (10/31/08 TO 10/31/18)
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 of 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 International Research Enhanced Equity Fund, the MSCI EAFE Index and the Lipper International Large-Cap Core Funds Index from October 31, 2008 to October 31, 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 MSCI EAFE Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Large-Cap Core Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The Lipper International Large-Cap Core Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class 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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside of the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
26 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class I Shares)* | (12.96)% | |||
MSCI All Country World Index, Ex-U.S. (net of foreign withholding taxes) | (8.24)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $475,230 |
INVESTMENT OBJECTIVE**
The JPMorgan International Unconstrained Equity Fund (the “Fund”) seeks to provide long-term capital appreciation.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class I Shares underperformed the MSCI All Country World Index, Ex-U.S. (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the consumer discretionary and health care sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the financials and materials sectors was a leading contributor to relative performance.
By region, the Fund’s security selection and overweight position in Europe and its security selection in Japan were leading detractors from performance relative to the Benchmark. The Fund’s security selection in emerging markets and the Asia-Pacific, excluding Japan, was a leading contributor to relative performance.
Leading individual detractors from the Fund’s relative performance included its overweight positions in Altice NV, AMS AG and Bayer AG. Shares of Altice, a Netherlands telecommunications and media company, fell amid investor concerns about the company’s high debt level and profit weakness during the reporting period. Shares of AMS, an Austrian semiconductor manufacturer that was not held in the Benchmark, fell after the company forecast lackluster results for the fourth quarter of
2018 and for the full year 2019. Shares of Bayer, a health care products maker based in Germany, fell ahead of the company’s planned acquisition of Monsanto Co.
Leading individual contributors to the Fund’s relative performance included its overweight positions in Ping An Insurance Co., Linde AG and Safran SA. Shares of Ping An Insurance, a Chinese financial services company, rose after the company reported increased earnings and revenue for the first half of 2018. Shares of Linde, a U.K. producer of industrial gases, rose ahead of its planned merger with Praxair Inc. Shares of Safran, a French aerospace and defense company, rose amid strong demand from the airline industry.
HOW WAS THE FUND POSITIONED?
By harnessing their team’s global sector specialists, the Fund’s portfolio managers sought to build a high-conviction, benchmark-agnostic portfolio of growth, value and unique companies, whose future prospects, the managers believed, were under-appreciated by the market and thus possessed the potential to deliver higher-than-expected earnings that could have a positive effect on the share price.
* | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 27 |
Table of Contents
JPMorgan International Unconstrained Equity Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Nestle SA (Registered) (Switzerland) | 3.7 | % | |||||
2. | Ping An Insurance Group Co. of China Ltd., Class H (China) | 3.6 | ||||||
3. | HDFC Bank Ltd., ADR (India) | 3.6 | ||||||
4. | Unilever NV, CVA (United Kingdom) | 3.5 | ||||||
5. | Royal Dutch Shell plc, Class A (Netherlands) | 3.5 | ||||||
6. | AIA Group Ltd. (Hong Kong) | 3.4 | ||||||
7. | SAP SE (Germany) | 3.1 | ||||||
8. | Tencent Holdings Ltd. (China) | 2.9 | ||||||
9. | Novartis AG (Registered) (Switzerland) | 2.7 | ||||||
10. | Diageo plc (United Kingdom) | 2.7 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
United Kingdom | 21.4 | % | ||
Germany | 11.5 | |||
Netherlands | 9.7 | |||
Japan | 8.7 | |||
China | 7.5 | |||
Switzerland | 7.5 | |||
France | 6.0 | |||
Canada | 6.0 | |||
Hong Kong | 4.7 | |||
India | 3.6 | |||
Australia | 2.2 | |||
United States | 2.2 | |||
Indonesia | 2.0 | |||
Denmark | 1.9 | |||
Brazil | 1.6 | |||
Austria | 1.6 | |||
South Korea | 1.5 | |||
Short-Term Investments | 0.4 |
*** | Percentages indicated are based on total investments as of October 31, 2018. The Fund’s portfolio composition is subject to change. |
28 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | SINCE INCEPTION | |||||||||||
CLASS A SHARES | November 30, 2011 | |||||||||||||
With Sales Charge* | (17.70 | )% | 0.31 | % | 5.31 | % | ||||||||
Without Sales Charge | (13.15 | ) | 1.40 | 6.13 | ||||||||||
CLASS C SHARES | November 30, 2011 | |||||||||||||
With CDSC** | (14.60 | ) | 0.89 | 5.59 | ||||||||||
Without CDSC | (13.60 | ) | 0.89 | 5.59 | ||||||||||
CLASS I SHARES | November 30, 2011 | (12.96 | ) | 1.71 | 6.43 | |||||||||
CLASS R2 SHARES | November 30, 2011 | (13.46 | ) | 1.12 | 5.85 | |||||||||
CLASS R5 SHARES | November 30, 2011 | (12.84 | ) | 1.83 | 6.59 | |||||||||
CLASS R6 SHARES | November 30, 2011 | (12.76 | ) | 1.90 | 6.65 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
LIFE OF FUND PERFORMANCE (11/30/11 TO 10/31/18)
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 November 30, 2011.
The graph illustrates comparative performance for $1,000,000 invested in Class I Shares of the JPMorgan International Unconstrained Equity Fund, the MSCI All Country World Index, ex-U.S. and the Lipper International Large-Cap Growth Funds Index from November 30, 2011 to October 31, 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 MSCI All Country World Index, ex-U.S. does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not benefit from double taxation treaties. The performance of the Lipper International Large-Cap Growth Funds Index includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI All Country World Index, ex-U.S. is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and
emerging markets, excluding the United States. The Lipper International Large-Cap Growth Funds Index is an index based on the total returns of certain mutual funds within the Fund’s designated category, as determined by Lipper, Inc. Investors cannot invest directly in an index.
Class I Shares have a $1,000,000 minimum initial investment.
Subsequent to the inception date of the Fund and through May 30, 2013, the Fund did not experience any shareholder activity. If such shareholder activity had occurred, the Fund’s performance may have been impacted.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside of the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 29 |
Table of Contents
JPMorgan International Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited)
REPORTING PERIOD RETURN: | ||||
Fund (Class L Shares)* | (10.57)% | |||
MSCI EAFE Value Index (net of foreign withholding taxes) | (7.69)% | |||
Net Assets as of 10/31/2018 (In Thousands) | $521,569 |
INVESTMENT OBJECTIVE**
Effective May 17, 2018, the JPMorgan International Value Fund’s (the “Fund”) objective was revised so that the Fund seeks to provide long-term capital appreciation. Prior to that date, the Fund sought to provide high total return from a portfolio of foreign company equity securities.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund’s Class L Shares underperformed the MSCI EAFE Value Index (net of foreign withholding taxes) (the “Benchmark”) for the twelve months ended October 31, 2018.
By sector, the Fund’s security selection in the materials and insurance sectors was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the banks and capital goods sectors was a leading contributor to relative performance.
By region, the Fund’s security selection in Europe and the U.K. was a leading detractor from performance relative to the Benchmark. The Fund’s security selection in the Pacific, excluding Japan, was a leading contributor to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Anheuser-Busch InBev SA/NV and Outokumpu Oyj, and its underweight position in BP PLC. Shares of Anheuser-Bush InBev, a Belgium-based brewer, fell after the company reported a decline in earnings and revenue for the third quarter of 2018, and reduced its dividend. Shares of Outokumpu, a Finnish stainless steel producer, fell amid weak earnings and investor concerns about potential U.S. trade tariffs. Shares of BP, a U.K. integrated oil and gas producer that was not held in the Fund, rose amid rising global petroleum prices during the reporting period.
Leading individual contributors to relative performance included the Fund’s overweight positions in DBS Group Holdings Ltd. and Deutsche Boerse AG, and its underweight position in Banco Santander SA. Shares of DBS Group Holdings, a Singapore financial services company, rose amid continued growth in loans and earnings during the reporting period. Shares of Deutsche Boerse, a German operator of financial market exchanges, rose amid continued growth in the company’s revenue and earnings during the reporting period. Shares of Banco Santander, a Spanish bank that was not held by the Fund, fell amid investor concern about its exposure both to the U.K.’s planned exit from the European Union and political uncertainty in Brazil during the reporting period.
HOW WAS THE FUND POSITIONED?
Following the May 17, 2018 change in investment objective and strategy, the Fund’s portfolio managers employed behavioral-based and quantitative screens in addition to conducting fundamental analysis to seek out companies that they believed had attractive valuations. As a result of this process, the Fund’s largest overweight sector positions relative to the Benchmark were in the materials and capital goods sectors, while the largest underweight sector positions were in the real estate and utilities sectors.
* | The return shown is based on net asset values calculated for shareholder transactions and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America. |
** | The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved. |
30 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO*** | ||||||||
1. | Royal Dutch Shell plc, Class A (Netherlands) | 4.5 | % | |||||
2. | Novartis AG (Registered) (Switzerland) | 3.3 | ||||||
3. | TOTAL SA (France) | 2.5 | ||||||
4. | Toyota Motor Corp. (Japan) | 2.4 | ||||||
5. | BHP Billiton Ltd. (Australia) | 2.1 | ||||||
6. | Sanofi (France) | 1.8 | ||||||
7. | Allianz SE (Registered) (Germany) | 1.7 | ||||||
8. | GlaxoSmithKline plc (United Kingdom) | 1.7 | ||||||
9. | Mitsubishi UFJ Financial Group, Inc. (Japan) | 1.4 | ||||||
10. | Westpac Banking Corp. (Australia) | 1.2 |
PORTFOLIO COMPOSITION BY COUNTRY*** | ||||
Japan | 26.3 | % | ||
United Kingdom | 13.5 | |||
France | 10.2 | |||
Switzerland | 8.6 | |||
Netherlands | 8.0 | |||
Australia | 7.6 | |||
Germany | 6.3 | |||
Norway | 3.0 | |||
Sweden | 3.0 | |||
Spain | 2.6 | |||
Hong Kong | 1.8 | |||
Italy | 1.3 | |||
Austria | 1.2 | |||
Singapore | 1.0 | |||
Others (each less than 1.0%) | 5.6 |
*** | Percentages indicated are based on total investments as of October 31, 2018. The Fund’s portfolio composition is subject to change. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 31 |
Table of Contents
JPMorgan International Value Fund
FUND COMMENTARY
TWELVE MONTHS ENDED OCTOBER 31, 2018 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2018 | ||||||||||||||
INCEPTION DATE OF CLASS | 1 YEAR | 5 YEAR | 10 YEAR | |||||||||||
CLASS A SHARES | September 28, 2001 | |||||||||||||
With Sales Charge* | (15.55 | )% | (1.98 | )% | 4.31 | % | ||||||||
Without Sales Charge | (10.88 | ) | (0.92 | ) | 4.87 | |||||||||
CLASS C SHARES | July 11, 2006 | |||||||||||||
With CDSC** | (12.37 | ) | (1.43 | ) | 4.34 | |||||||||
Without CDSC | (11.37 | ) | (1.43 | ) | 4.34 | |||||||||
CLASS I SHARES | September 10, 2001 | (10.62 | ) | (0.64 | ) | 5.15 | ||||||||
CLASS L SHARES | November 4, 1993 | (10.57 | ) | (0.53 | ) | 5.29 | ||||||||
CLASS R2 SHARES | November 3, 2008 | (11.19 | ) | (1.18 | ) | 4.60 | ||||||||
CLASS R5 SHARES | September 9, 2016 | (10.58 | ) | (0.53 | ) | 5.30 | ||||||||
CLASS R6 SHARES | November 30, 2010 | (10.49 | ) | (0.39 | ) | 5.40 |
* | Sales Charge for Class A Shares is 5.25%. |
** | Assumes a 1% CDSC (contingent deferred sales charge) for the one year period and 0% CDSC thereafter. |
TEN YEAR PERFORMANCE (10/31/08 TO 10/31/18)
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 its inception date are based on the performance of Class A Shares. The actual returns of R2 Shares would have been lower than those shown because R2 Shares have higher expenses than Class A Shares.
Returns for Class R5 Shares and Class R6 Shares prior to their inception dates are based on the performance of Class L Shares. The actual returns of Class R5 Shares and Class R6 Shares would have been different than those shown because Class R5 Shares and 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 International Value Fund, the MSCI EAFE Value Index and the Lipper International Large-Cap Value Funds Average from October 31, 2008 to October 31, 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 MSCI EAFE Value Index does not reflect the deduction of expenses or a sales charge associated with a mutual fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to non-resident institutional investors who do not
benefit from double taxation treaties. The performance of the Lipper International Large-Cap Value Funds Average includes expenses associated with a mutual fund, such as investment management fees. These expenses are not identical to the expenses incurred by the Fund. The MSCI EAFE Value Index is a free float-adjusted market capitalization weighted index that is designed to measure the performance of value-oriented stocks in the world’s equity markets, excluding the U.S. and Canada. Investors cannot invest directly in an index. The Lipper International Large-Cap Value Funds Average is an average based on the total returns of all mutual funds within the Fund’s designated category as determined by Lipper, Inc.
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 since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
32 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Emerging Economies Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.8% |
| |||||||
Argentina — 0.2% | ||||||||
Banco Macro SA, ADR | 54 | 2,429 | ||||||
|
| |||||||
Brazil — 11.1% | ||||||||
B3 SA — Brasil Bolsa Balcao * | 1,411 | 10,122 | ||||||
Banco Bradesco SA, ADR * | 1,299 | 11,913 | ||||||
Banco do Brasil SA * | 1,971 | 22,592 | ||||||
Banco Santander Brasil SA | 1,485 | 16,848 | ||||||
Cia Brasileira de Distribuicao (Preference) * | 251 | 5,253 | ||||||
Estacio Participacoes SA | 1,896 | 11,795 | ||||||
IRB Brasil Resseguros SA | 505 | 9,734 | ||||||
Itau Unibanco Holding SA, ADR | 2,231 | 29,382 | ||||||
Kroton Educacional SA | 2,796 | 8,565 | ||||||
Metalurgica Gerdau SA (Preference) | 4,007 | 8,474 | ||||||
MRV Engenharia e Participacoes SA | 1,852 | 6,299 | ||||||
SLC Agricola SA | 234 | 3,554 | ||||||
TIM Participacoes SA * | 1,821 | 5,641 | ||||||
Vale SA, ADR | 1,480 | 22,351 | ||||||
|
| |||||||
172,523 | ||||||||
|
| |||||||
Chile — 0.3% | ||||||||
Antofagasta plc | 551 | 5,518 | ||||||
|
| |||||||
China — 30.7% | ||||||||
Alibaba Group Holding Ltd., ADR * | 322 | 45,806 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 2,790 | 14,458 | ||||||
Anhui Jinhe Industrial Co. Ltd., Class A | 525 | 1,114 | ||||||
Anhui Kouzi Distillery Co. Ltd., Class A | 242 | 1,127 | ||||||
ANTA Sports Products Ltd. | 1,259 | 5,198 | ||||||
Baidu, Inc., ADR * | 140 | 26,662 | ||||||
Bank of Nanjing Co. Ltd., Class A | 1,535 | 1,620 | ||||||
Baoshan Iron & Steel Co. Ltd., Class A | 4,372 | 4,825 | ||||||
BOE Technology Group Co. Ltd., Class A | 9,721 | 3,855 | ||||||
China Conch Venture Holdings Ltd. | 2,476 | 6,967 | ||||||
China Construction Bank Corp., Class H | 46,695 | 37,055 | ||||||
China Jushi Co. Ltd., Class A | 1,183 | 1,609 | ||||||
China Maple Leaf Educational Systems Ltd. | 5,786 | 2,511 | ||||||
China Merchants Bank Co. Ltd., Class H | 5,777 | 22,306 | ||||||
China Railway Construction Corp. Ltd., Class H | 6,361 | 8,079 | ||||||
China Railway Group Ltd., Class H | 8,822 | 7,884 | ||||||
China Resources Cement Holdings Ltd. | 7,810 | 6,933 | ||||||
China Shenhua Energy Co. Ltd., Class H | 2,215 | 5,010 | ||||||
China Vanke Co. Ltd., Class H | 5,158 | 15,928 | ||||||
Chongqing Department Store Co. Ltd., Class A | 342 | 1,330 | ||||||
CNOOC Ltd. | 10,291 | 17,525 | ||||||
Country Garden Holdings Co. Ltd. | 8,891 | 9,568 | ||||||
Daqin Railway Co. Ltd., Class A | 1,319 | 1,529 | ||||||
Geely Automobile Holdings Ltd. | 3,424 | 6,598 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
China — continued |
| |||||||
Grandblue Environment Co. Ltd., Class A | 813 | 1,467 | ||||||
Gree Electric Appliances, Inc. of Zhuhai, Class A | 268 | 1,474 | ||||||
Huayu Automotive Systems Co. Ltd., Class A | 468 | 1,175 | ||||||
Industrial & Commercial Bank of China Ltd., Class H | 51,458 | 34,910 | ||||||
Nexteer Automotive Group Ltd. | 2,143 | 3,022 | ||||||
PetroChina Co. Ltd., Class H | 20,874 | 15,009 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 2,059 | 19,461 | ||||||
Postal Savings Bank of China Co. Ltd., Class H (a) | 20,675 | 12,370 | ||||||
Sany Heavy Industry Co. Ltd., Class A | 1,312 | 1,490 | ||||||
Shanghai International Airport Co. Ltd., Class A | 193 | 1,380 | ||||||
Shenzhen Expressway Co. Ltd., Class H | 4,808 | 4,431 | ||||||
Shenzhen Fuanna Bedding and Furnishing Co. Ltd., Class A | 1,030 | 1,096 | ||||||
Sinopec Shanghai Petrochemical Co. Ltd., Class A | 6,489 | 4,926 | ||||||
Sinotruk Hong Kong Ltd. | 2,011 | 2,907 | ||||||
Tencent Holdings Ltd. | 2,063 | 70,677 | ||||||
Tianneng Power International Ltd. | 2,470 | 1,982 | ||||||
Tingyi Cayman Islands Holding Corp. | 3,082 | 4,567 | ||||||
Uni-President China Holdings Ltd. | 7,099 | 6,906 | ||||||
Wangfujing Group Co. Ltd., Class A | 584 | 1,186 | ||||||
Want Want China Holdings Ltd. | 10,523 | 7,528 | ||||||
Weichai Power Co. Ltd., Class H | 5,202 | 5,143 | ||||||
Weifu High-Technology Group Co. Ltd., Class A | 523 | 1,339 | ||||||
Wuliangye Yibin Co. Ltd., Class A | 166 | 1,150 | ||||||
XCMG Construction Machinery Co. Ltd., Class A | 2,843 | 1,361 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H | 5,126 | 4,875 | ||||||
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H (a) | 853 | 2,924 | ||||||
Zhongsheng Group Holdings Ltd. | 1,634 | 2,986 | ||||||
Zijin Mining Group Co. Ltd., Class H | 13,336 | 4,989 | ||||||
|
| |||||||
478,228 | ||||||||
|
| |||||||
Hungary — 1.7% | ||||||||
MOL Hungarian Oil & Gas plc | 828 | 8,686 | ||||||
OTP Bank Nyrt | 515 | 18,490 | ||||||
|
| |||||||
27,176 | ||||||||
|
| |||||||
India — 3.7% | ||||||||
Firstsource Solutions Ltd. | 3,915 | 3,239 | ||||||
Graphite India Ltd. | 464 | 5,979 | ||||||
HCL Technologies Ltd. | 1,294 | 18,501 | ||||||
HEG Ltd. | 59 | 3,407 | ||||||
Mindtree Ltd. | 341 | 3,928 | ||||||
NIIT Technologies Ltd. | 474 | 7,871 | ||||||
Oil & Natural Gas Corp. Ltd. | 2,242 | 4,645 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 33 |
Table of Contents
JPMorgan Emerging Economies Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
India — continued |
| |||||||
Tech Mahindra Ltd. | 560 | 5,641 | ||||||
WNS Holdings Ltd., ADR* | 96 | 4,801 | ||||||
|
| |||||||
58,012 | ||||||||
|
| |||||||
Indonesia — 1.0% | ||||||||
Bank Rakyat Indonesia Persero Tbk. PT | 54,553 | 11,322 | ||||||
Bukit Asam Tbk. PT | 13,526 | 3,799 | ||||||
|
| |||||||
15,121 | ||||||||
|
| |||||||
Malaysia — 1.0% | ||||||||
AirAsia Group Bhd. | 1,393 | 875 | ||||||
CIMB Group Holdings Bhd. | 2,640 | 3,612 | ||||||
Tenaga Nasional Bhd. | 3,287 | 11,556 | ||||||
|
| |||||||
16,043 | ||||||||
|
| |||||||
Mexico — 0.8% | ||||||||
Wal-Mart de Mexico SAB de CV | 4,695 | 11,990 | ||||||
|
| |||||||
Poland — 0.8% | ||||||||
Polski Koncern Naftowy ORLEN SA | 495 | 11,902 | ||||||
|
| |||||||
Russia — 7.3% | ||||||||
Alrosa PJSC | 8,595 | 13,034 | ||||||
LUKOIL PJSC, ADR | 360 | 26,829 | ||||||
Magnitogorsk Iron & Steel Works PJSC | 8,711 | 6,333 | ||||||
MMC Norilsk Nickel PJSC, ADR | 969 | 16,037 | ||||||
Novatek PJSC, GDR (a) | 35 | 5,908 | ||||||
Novolipetsk Steel PJSC, GDR (a) | 154 | 3,715 | ||||||
Ros Agro plc, GDR (a) | 127 | 1,284 | ||||||
RusHydro PJSC | 291,040 | 2,429 | ||||||
Sberbank of Russia PJSC, ADR | 1,355 | 15,938 | ||||||
Sberbank of Russia PJSC, ADR | 89 | 1,045 | ||||||
Severstal PJSC, GDR (a) | 407 | 6,323 | ||||||
Surgutneftegas PJSC (Preference) | 9,529 | 5,505 | ||||||
Tatneft PJSC, ADR | 131 | 9,251 | ||||||
Tatneft PJSC, ADR | 1 | 39 | ||||||
|
| |||||||
113,670 | ||||||||
|
| |||||||
South Africa — 3.5% | ||||||||
AngloGold Ashanti Ltd. | 472 | 4,598 | ||||||
Astral Foods Ltd. | 242 | 3,252 | ||||||
Nedbank Group Ltd. | 790 | 13,357 | ||||||
Old Mutual Ltd. | 4,230 | 6,377 | ||||||
Sasol Ltd. | 613 | 20,035 | ||||||
SPAR Group Ltd. (The) | 532 | 6,337 | ||||||
|
| |||||||
53,956 | ||||||||
|
| |||||||
South Korea — 14.0% | ||||||||
Daelim Industrial Co. Ltd. | 49 | 3,297 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
South Korea — continued |
| |||||||
Doosan Infracore Co. Ltd. * | 593 | 4,030 | ||||||
GS Engineering & Construction Corp. | 89 | 3,264 | ||||||
Hana Financial Group, Inc. | 478 | 16,111 | ||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 135 | 4,978 | ||||||
Industrial Bank of Korea | 991 | 12,941 | ||||||
KT&G Corp. | 197 | 17,582 | ||||||
Kumho Petrochemical Co. Ltd. | 59 | 4,477 | ||||||
LG Corp. | 71 | 4,115 | ||||||
LG Display Co. Ltd. | 277 | 4,035 | ||||||
LG Uplus Corp. | 541 | 7,694 | ||||||
Orion Corp. | 26 | 2,155 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 69 | 7,176 | ||||||
Samsung Electronics Co. Ltd. | 1,408 | 52,696 | ||||||
Samsung SDI Co. Ltd. | 40 | 8,373 | ||||||
Samsung SDS Co. Ltd. | 45 | 7,670 | ||||||
Shinhan Financial Group Co. Ltd. | 557 | 20,743 | ||||||
SK Holdings Co. Ltd. | 55 | 12,739 | ||||||
SK Telecom Co. Ltd. | 30 | 7,030 | ||||||
Woori Bank | 1,218 | 16,880 | ||||||
|
| |||||||
217,986 | ||||||||
|
| |||||||
Taiwan — 14.2% | ||||||||
AU Optronics Corp. | 19,315 | 7,546 | ||||||
Catcher Technology Co. Ltd. | 1,700 | 17,189 | ||||||
Chailease Holding Co. Ltd. | 1,583 | 4,540 | ||||||
Chilisin Electronics Corp. * | 660 | 1,590 | ||||||
Chipbond Technology Corp. | 3,141 | 5,785 | ||||||
CTBC Financial Holding Co. Ltd. | 30,823 | 20,640 | ||||||
E.Sun Financial Holding Co. Ltd. | 11,623 | 7,717 | ||||||
Far Eastern New Century Corp. | 7,029 | 7,070 | ||||||
FLEXium Interconnect, Inc. | 1,572 | 3,975 | ||||||
Fubon Financial Holding Co. Ltd. | 11,137 | 17,473 | ||||||
Gigabyte Technology Co. Ltd. | 2,770 | 3,642 | ||||||
Globalwafers Co. Ltd. | 753 | 5,994 | ||||||
Largan Precision Co. Ltd. | 35 | 3,824 | ||||||
Micro-Star International Co. Ltd. | 1,667 | 3,714 | ||||||
Novatek Microelectronics Corp. | 1,813 | 8,021 | ||||||
Powertech Technology, Inc. | 2,899 | 6,359 | ||||||
President Chain Store Corp. | 1,459 | 16,504 | ||||||
Silicon Motion Technology Corp., ADR | 164 | 6,155 | ||||||
Sino-American Silicon Products, Inc. * | 3,251 | 6,088 | ||||||
Taiwan Cement Corp. | 4,207 | 4,729 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 710 | 27,034 | ||||||
Uni-President Enterprises Corp. | 4,892 | 11,858 | ||||||
Walsin Lihwa Corp. | 7,510 | 3,735 |
SEE NOTES TO FINANCIAL STATEMENTS.
34 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Taiwan — continued |
| |||||||
Yageo Corp. | 309 | 3,171 | ||||||
Yuanta Financial Holding Co. Ltd. | 22,109 | 10,752 | ||||||
Zhen Ding Technology Holding Ltd. | 2,253 | 5,155 | ||||||
|
| |||||||
220,260 | ||||||||
|
| |||||||
Thailand — 4.3% | ||||||||
Indorama Ventures PCL | 2,086 | 3,422 | ||||||
Kiatnakin Bank PCL | 1,507 | 3,243 | ||||||
Krung Thai Bank PCL | 15,368 | 9,330 | ||||||
Land & Houses PCL | 14,748 | 4,598 | ||||||
PTT Exploration & Production PCL | 1,880 | 7,875 | ||||||
PTT Global Chemical PCL | 6,117 | 14,208 | ||||||
PTT PCL | 12,069 | 18,212 | ||||||
Quality Houses PCL | 34,646 | 3,286 | ||||||
Tisco Financial Group PCL | 1,349 | 3,210 | ||||||
|
| |||||||
67,384 | ||||||||
|
| |||||||
Turkey — 1.8% | ||||||||
Eregli Demir ve Celik Fabrikalari TAS | 3,715 | 6,029 | ||||||
Ford Otomotiv Sanayi A/S | 290 | 3,117 | ||||||
Petkim Petrokimya Holding A/S | 5,013 | 4,563 | ||||||
Tekfen Holding A/S | 1,854 | 7,059 | ||||||
Turk Hava Yollari AO * | 2,604 | 6,558 | ||||||
|
| |||||||
27,326 | ||||||||
|
| |||||||
United Kingdom — 0.3% | ||||||||
Mondi Ltd. | 185 | 4,424 | ||||||
|
| |||||||
United States — 1.1% | ||||||||
Cognizant Technology Solutions Corp., Class A | 251 | 17,329 | ||||||
|
| |||||||
Vietnam — 0.0% (b) | ||||||||
Hoa Phat Group JSC * | — | (c) | — | (c) | ||||
|
| |||||||
Total Common Stocks |
| 1,521,277 | ||||||
|
| |||||||
NO. OF RIGHTS (000) | ||||||||
Rights — 0.0% (b) |
| |||||||
Russia — 0.0% (b) |
| |||||||
RusHydro PJSC, expiring 12/28/2018 * | 10,583 | — | (c) | |||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 2.7% |
| |||||||
Investment Companies — 2.7% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02% (d) (e) (Cost $42,721) | 42,721 | 42,721 | ||||||
|
| |||||||
Total Investments — 100.5% | 1,563,998 | |||||||
Liabilities in Excess of | (8,341 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | 1,555,657 | |||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 23.4 | % | ||
Oil, Gas & Consumable Fuels | 9.3 | |||
Metals & Mining | 6.6 | |||
Interactive Media & Services | 6.2 | |||
Technology Hardware, Storage & Peripherals | 5.2 | |||
Semiconductors & Semiconductor Equipment | 4.2 | |||
IT Services | 3.9 | |||
Chemicals | 3.4 | |||
Internet & Direct Marketing Retail | 2.9 | |||
Electronic Equipment, Instruments & Components | 2.9 | |||
Food Products | 2.6 | |||
Insurance | 2.6 | |||
Food & Staples Retailing | 2.6 | |||
Real Estate Management & Development | 2.1 | |||
Construction & Engineering | 1.9 | |||
Construction Materials | 1.8 | |||
Industrial Conglomerates | 1.5 | |||
Diversified Consumer Services | 1.5 | |||
Diversified Financial Services | 1.4 | |||
Machinery | 1.4 | |||
Capital Markets | 1.3 | |||
Tobacco | 1.1 | |||
Others (each less than 1.0%) | 7.5 | |||
Short-Term Investments | 2.7 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 35 |
Table of Contents
JPMorgan Emerging Economies Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
Abbreviations
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
PJSC | Public Joint Stock Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to |
securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | ||
(b) | Amount rounds to less than 0.1% of net assets. | |
(c) | Amount rounds to less than one thousand. | |
(d) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(e) | The rate shown is the current yield as of October 31, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
36 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Emerging Markets Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.6% |
| |||||||
Argentina — 2.1% | ||||||||
MercadoLibre, Inc. | 298 | 96,847 | ||||||
|
| |||||||
Australia — 0.5% | ||||||||
Oil Search Ltd. | 4,209 | 23,142 | ||||||
|
| |||||||
Brazil — 10.6% | ||||||||
Ambev SA, ADR | 8,706 | 37,696 | ||||||
B3 SA — Brasil Bolsa Balcao * | 14,236 | 102,100 | ||||||
Cielo SA | 3,264 | 11,605 | ||||||
Itau Unibanco Holding SA, ADR | 7,808 | 102,828 | ||||||
Itau Unibanco Holding SA (Preference) | 1,076 | 14,209 | ||||||
Kroton Educacional SA | 17,875 | 54,756 | ||||||
Lojas Renner SA * | 6,708 | 67,921 | ||||||
Petrobras Distribuidora SA | 4,749 | 30,512 | ||||||
Raia Drogasil SA * | 1,867 | 31,579 | ||||||
Ultrapar Participacoes SA | 2,252 | 26,627 | ||||||
WEG SA | 1,671 | 8,087 | ||||||
|
| |||||||
487,920 | ||||||||
|
| |||||||
China — 26.6% | ||||||||
Alibaba Group Holding Ltd., ADR * | 1,724 | 245,360 | ||||||
Baidu, Inc., ADR * | 335 | 63,683 | ||||||
Fuyao Glass Industry Group Co. Ltd., Class A | 15,800 | 49,311 | ||||||
Hangzhou Robam Appliances Co. Ltd., Class A | 11,087 | 33,632 | ||||||
Han’s Laser Technology Industry Group Co. Ltd., Class A | 9,407 | 42,604 | ||||||
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | 18,349 | 58,440 | ||||||
JD.com, Inc., ADR * | 1,814 | 42,660 | ||||||
Kweichow Moutai Co. Ltd., Class A | 483 | 38,254 | ||||||
Meituan Dianping, Class B * (a) | 1,773 | 11,461 | ||||||
Midea Group Co. Ltd., Class A | 9,048 | 48,439 | ||||||
New Oriental Education & Technology Group, Inc., ADR * | 801 | 46,863 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 21,889 | 206,935 | ||||||
Shenzhou International Group Holdings Ltd. | 4,342 | 48,138 | ||||||
Tencent Holdings Ltd. | 6,940 | 237,749 | ||||||
Yum China Holdings, Inc. | 1,399 | 50,493 | ||||||
|
| |||||||
1,224,022 | ||||||||
|
| |||||||
Egypt — 0.9% | ||||||||
Commercial International Bank Egypt SAE (Registered), GDR (a) | 9,723 | 42,249 | ||||||
|
| |||||||
Hong Kong — 6.4% | ||||||||
AIA Group Ltd. | 27,876 | 212,056 | ||||||
Jardine Matheson Holdings Ltd. | 516 | 29,778 | ||||||
Techtronic Industries Co. Ltd. | 10,909 | 51,368 | ||||||
|
| |||||||
293,202 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
India — 16.6% | ||||||||
Asian Paints Ltd. | 1,884 | 31,355 | ||||||
HDFC Bank Ltd. | 3,995 | 103,741 | ||||||
HDFC Bank Ltd., ADR | 945 | 84,000 | ||||||
HDFC Standard Life Insurance Co. Ltd. (a) | 10,111 | 50,953 | ||||||
Housing Development Finance Corp. Ltd. | 8,168 | 195,410 | ||||||
IndusInd Bank Ltd. | 3,316 | 63,924 | ||||||
ITC Ltd. | 13,209 | 50,055 | ||||||
Kotak Mahindra Bank Ltd. | 3,493 | 52,860 | ||||||
Tata Consultancy Services Ltd. | 3,413 | 89,465 | ||||||
UltraTech Cement Ltd. | 930 | 44,007 | ||||||
|
| |||||||
765,770 | ||||||||
|
| |||||||
Indonesia — 2.5% | ||||||||
Astra International Tbk. PT | 73,185 | 38,069 | ||||||
Bank Central Asia Tbk. PT | 36,491 | 56,818 | ||||||
Bank Rakyat Indonesia Persero Tbk. PT | 104,467 | 21,682 | ||||||
|
| |||||||
116,569 | ||||||||
|
| |||||||
Macau — 1.2% | ||||||||
Sands China Ltd. | 13,445 | 53,167 | ||||||
|
| |||||||
Mexico — 3.3% | ||||||||
Fomento Economico Mexicano SAB de CV, ADR | 624 | 53,041 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 11,813 | 64,995 | ||||||
Infraestructura Energetica Nova SAB de CV | 8,923 | 34,980 | ||||||
|
| |||||||
153,016 | ||||||||
|
| |||||||
Panama — 0.7% | ||||||||
Copa Holdings SA, Class A | 444 | 32,181 | ||||||
|
| |||||||
Peru — 1.3% | ||||||||
Credicorp Ltd. | 272 | 61,297 | ||||||
|
| |||||||
Portugal — 0.8% | ||||||||
Jeronimo Martins SGPS SA | 3,100 | 38,046 | ||||||
|
| |||||||
Russia — 3.1% | ||||||||
Sberbank of Russia PJSC | 48,717 | 140,026 | ||||||
|
| |||||||
South Africa — 5.8% | ||||||||
Bid Corp. Ltd. | 4,691 | 87,833 | ||||||
Bidvest Group Ltd. (The) | 2,459 | 30,689 | ||||||
Capitec Bank Holdings Ltd. | 467 | 31,365 | ||||||
FirstRand Ltd. | 5,340 | 23,322 | ||||||
Mr Price Group Ltd. | 1,834 | 28,709 | ||||||
Sanlam Ltd. | 12,790 | 64,404 | ||||||
|
| |||||||
266,322 | ||||||||
|
| |||||||
South Korea — 6.3% | ||||||||
NAVER Corp. | 409 | 41,193 | ||||||
NCSoft Corp. | 97 | 36,518 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 37 |
Table of Contents
JPMorgan Emerging Markets Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
South Korea — continued |
| |||||||
Samsung Electronics Co. Ltd. | 5,606 | 209,868 | ||||||
|
| |||||||
287,579 | ||||||||
|
| |||||||
Spain — 0.4% | ||||||||
Prosegur Cia de Seguridad SA | 3,592 | 19,949 | ||||||
|
| |||||||
Taiwan — 7.2% | ||||||||
Largan Precision Co. Ltd. | 369 | 40,318 | ||||||
President Chain Store Corp. | 5,719 | 64,694 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 5,982 | 227,932 | ||||||
|
| |||||||
332,944 | ||||||||
|
| |||||||
Thailand — 0.6% | ||||||||
Kasikornbank PCL, NVDR | 4,300 | 25,885 | ||||||
|
| |||||||
Turkey — 0.3% | ||||||||
Ford Otomotiv Sanayi A/S | 1,070 | 11,491 | ||||||
|
| |||||||
United States — 1.4% | ||||||||
EPAM Systems, Inc.* | 547 | 65,339 | ||||||
|
| |||||||
Total Common Stocks |
| 4,536,963 | ||||||
|
| |||||||
NO. OF WARRANTS (000) | ||||||||
Warrants — 0.5% |
| |||||||
United Kingdom — 0.0% (b) |
| |||||||
HSBC Bank plc expiring 7/20/2020, price 1.00 * | 54 | 710 | ||||||
|
| |||||||
United States — 0.5% |
| |||||||
Almarai Co. | 1,597 | 20,784 | ||||||
expiring 7/20/2020, price 1.00 * | 90 | 1,174 | ||||||
|
| |||||||
21,958 | ||||||||
|
| |||||||
Total Warrants | 22,668 | |||||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 1.3% |
| |||||||
Investment Companies — 1.3% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02% (c) (d) | 58,479 | 58,479 | ||||||
|
| |||||||
Total Investments — 100.4% | 4,618,110 | |||||||
Liabilities in Excess of | (16,905 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | 4,601,205 | |||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 18.8 | % | ||
Insurance | 11.6 | |||
Internet & Direct Marketing Retail | 8.6 | |||
Interactive Media & Services | 7.4 | |||
Semiconductors & Semiconductor Equipment | 4.9 | |||
Food & Staples Retailing | 4.8 | |||
Technology Hardware, Storage & Peripherals | 4.5 | |||
Thrifts & Mortgage Finance | 4.2 | |||
IT Services | 3.6 | |||
Household Durables | 2.9 | |||
Beverages | 2.8 | |||
Hotels, Restaurants & Leisure | 2.2 | |||
Capital Markets | 2.2 | |||
Diversified Consumer Services | 2.2 | |||
Food Products | 1.7 | |||
Multiline Retail | 1.5 | |||
Industrial Conglomerates | 1.3 | |||
Specialty Retail | 1.3 | |||
Machinery | 1.1 | |||
Tobacco | 1.1 | |||
Oil, Gas & Consumable Fuels | 1.1 | |||
Automobiles | 1.1 | |||
Auto Components | 1.1 | |||
Textiles, Apparel & Luxury Goods | 1.0 | |||
Construction Materials | 1.0 | |||
Others (each less than 1.0%) | 4.7 | |||
Short-Term Investments | 1.3 |
SEE NOTES TO FINANCIAL STATEMENTS.
38 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Abbreviations
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
NVDR | Non-voting depository receipt | |
PJSC | Public Joint Stock Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to |
securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | ||
(b) | Amount rounds to less than 0.1% 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 October 31, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 39 |
Table of Contents
JPMorgan Europe Dynamic Fund
(formerly known as JPMorgan Intrepid European Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 101.6% |
| |||||||
Australia — 2.5% | ||||||||
Rio Tinto plc | 348 | 16,888 | ||||||
|
| |||||||
Belgium — 1.7% | ||||||||
KBC Group NV | 169 | 11,667 | ||||||
|
| |||||||
Denmark — 3.1% | ||||||||
Novo Nordisk A/S, Class B | 312 | 13,460 | ||||||
Royal Unibrew A/S | 113 | 8,002 | ||||||
|
| |||||||
21,462 | ||||||||
|
| |||||||
Finland — 2.9% | ||||||||
Neste OYJ | 134 | 10,968 | ||||||
UPM-Kymmene OYJ | 281 | 9,036 | ||||||
|
| |||||||
20,004 | ||||||||
|
| |||||||
France — 18.8% | ||||||||
Airbus SE | 104 | 11,463 | ||||||
Capgemini SE | 82 | 10,073 | ||||||
Dassault Systemes SE | 46 | 5,704 | ||||||
Eiffage SA | 88 | 8,626 | ||||||
Engie SA | 881 | 11,706 | ||||||
Kering SA | 29 | 12,747 | ||||||
Peugeot SA | 530 | 12,609 | ||||||
Safran SA | 112 | 14,511 | ||||||
Teleperformance | 36 | 5,958 | ||||||
Thales SA | 111 | 14,155 | ||||||
TOTAL SA | 125 | 7,326 | ||||||
Vinci SA | 157 | 13,999 | ||||||
|
| |||||||
128,877 | ||||||||
|
| |||||||
Germany — 7.0% | ||||||||
Allianz SE (Registered) | 95 | 19,837 | ||||||
Bayer AG (Registered) | 82 | 6,320 | ||||||
Deutsche Telekom AG (Registered) | 761 | 12,478 | ||||||
Hannover Rueck SE | 43 | 5,721 | ||||||
SAP SE | 32 | 3,416 | ||||||
|
| |||||||
47,772 | ||||||||
|
| |||||||
Italy — 5.2% | ||||||||
Enel SpA | 2,675 | 13,115 | ||||||
Eni SpA | 800 | 14,207 | ||||||
Saipem SpA * | 1,489 | 8,144 | ||||||
|
| |||||||
35,466 | ||||||||
|
| |||||||
Jordan — 1.3% | ||||||||
Hikma Pharmaceuticals plc | 377 | 9,149 | ||||||
|
| |||||||
Luxembourg — 1.4% | ||||||||
ArcelorMittal | 383 | 9,565 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Netherlands — 9.7% | ||||||||
ABN AMRO Group NV, CVA (a) | 498 | 12,207 | ||||||
Adyen NV * (a) | 12 | 7,769 | ||||||
ASML Holding NV | 71 | 12,292 | ||||||
ASR Nederland NV | 260 | 11,813 | ||||||
ING Groep NV | 1,258 | 14,887 | ||||||
NN Group NV | 167 | 7,188 | ||||||
|
| |||||||
66,156 | ||||||||
|
| |||||||
Norway — 1.0% | ||||||||
Telenor ASA | 368 | 6,743 | ||||||
|
| |||||||
Spain — 4.7% | ||||||||
ACS Actividades de Construccion y Servicios SA | 301 | 11,260 | ||||||
Ence Energia y Celulosa SA | 582 | 4,887 | ||||||
Repsol SA | 911 | 16,271 | ||||||
|
| |||||||
32,418 | ||||||||
|
| |||||||
Sweden — 6.1% | ||||||||
Dometic Group AB (b) | 194 | 1,354 | ||||||
Swedish Match AB | 150 | 7,617 | ||||||
Swedish Orphan Biovitrum AB * | 312 | 6,363 | ||||||
Tele2 AB, Class B | 967 | 10,978 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 674 | 5,869 | ||||||
Volvo AB, Class B | 664 | 9,923 | ||||||
|
| |||||||
42,104 | ||||||||
|
| |||||||
Switzerland — 18.6% | ||||||||
Logitech International SA (Registered) | 278 | 10,309 | ||||||
Nestle SA (Registered) | 141 | 11,902 | ||||||
Novartis AG (Registered) | 342 | 29,972 | ||||||
Partners Group Holding AG | 8 | 5,685 | ||||||
Roche Holding AG | 138 | 33,658 | ||||||
Sunrise Communications Group AG * (a) | 114 | 10,018 | ||||||
Swatch Group AG (The) | 27 | 8,958 | ||||||
Zurich Insurance Group AG * | 54 | 16,918 | ||||||
|
| |||||||
127,420 | ||||||||
|
| |||||||
United Kingdom — 16.4% | ||||||||
Ashtead Group plc | 287 | 7,080 | ||||||
BP plc | 1,647 | 11,900 | ||||||
Centrica plc | 6,644 | 12,480 | ||||||
Fevertree Drinks plc | 185 | 6,565 | ||||||
Fiat Chrysler Automobiles NV * | 301 | 4,576 | ||||||
GlaxoSmithKline plc | 956 | 18,520 | ||||||
Next plc | 129 | 8,601 | ||||||
Pearson plc | 1,120 | 12,867 | ||||||
Persimmon plc | 311 | 9,101 | ||||||
Rolls-Royce Holdings plc * | 999 | 10,714 |
SEE NOTES TO FINANCIAL STATEMENTS.
40 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
United Kingdom — continued |
| |||||||
Taylor Wimpey plc | 5,010 | 10,317 | ||||||
|
| |||||||
112,721 | ||||||||
|
| |||||||
United States — 1.2% | ||||||||
Burford Capital Ltd. | 375 | 7,941 | ||||||
|
| |||||||
Total Common Stocks |
| 696,353 | ||||||
|
| |||||||
Preferred Stocks — 0.1% |
| |||||||
United Kingdom — 0.1% |
| |||||||
Rolls-Royce Holdings plc (Preference) * | 45,643 | 58 | ||||||
|
| |||||||
Short-Term Investments — 7.4% |
| |||||||
Investment Companies — 7.4% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02% (c) (d) | 51,037 | 51,037 | ||||||
|
| |||||||
Total Investments — 109.1% | 747,448 | |||||||
Liabilities in Excess of | (62,101 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | 685,347 | |||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Pharmaceuticals | 14.9 | % | ||
Insurance | 8.2 | |||
Oil, Gas & Consumable Fuels | 8.1 | |||
Aerospace & Defense | 6.8 | |||
Banks | 5.2 | |||
Construction & Engineering | 4.5 | |||
Diversified Telecommunication Services | 3.9 | |||
Metals & Mining | 3.5 | |||
Multi-Utilities | 3.2 | |||
Textiles, Apparel & Luxury Goods | 2.9 | |||
Household Durables | 2.6 | |||
IT Services | 2.4 | |||
Automobiles | 2.3 | |||
Beverages | 2.0 | |||
Paper & Forest Products | 1.9 | |||
Capital Markets | 1.8 | |||
Electric Utilities | 1.8 | |||
Media | 1.7 | |||
Semiconductors & Semiconductor Equipment | 1.6 | |||
Food Products | 1.6 | |||
Wireless Telecommunication Services | 1.5 | |||
Technology Hardware, Storage & Peripherals | 1.4 | |||
Machinery | 1.3 | |||
Software | 1.2 | |||
Multiline Retail | 1.2 | |||
Energy Equipment & Services | 1.1 | |||
Tobacco | 1.0 | |||
Others (each less than 1.0%) | 3.6 | |||
Short-Term Investment | 6.8 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 41 |
Table of Contents
JPMorgan Europe Dynamic Fund
(formerly known as JPMorgan Intrepid European Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
Abbreviations
CVA | Dutch Certification | |
OYJ | Public Limited Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
(b) | Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. | |
(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 October 31, 2018. | |
* | Non-income producing security. |
Futures contracts outstanding as of October 31, 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 | ||||||||||||||||||||
EURO STOXX 50 Index | 487 | 12/2018 | EUR | 17,552 | 56 | |||||||||||||||
FTSE 100 Index | 97 | 12/2018 | GBP | 8,785 | 145 | |||||||||||||||
|
| |||||||||||||||||||
201 | ||||||||||||||||||||
|
|
Abbreviations
EUR | Euro | |
FTSE | Financial Times and the London Stock Exchange | |
GBP | British Pound |
SEE NOTES TO FINANCIAL STATEMENTS.
42 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.3% |
| |||||||
Argentina — 0.0% (a) | ||||||||
MercadoLibre, Inc. | 7 | 2,268 | ||||||
|
| |||||||
Australia — 2.9% | ||||||||
AGL Energy Ltd. | 84 | 1,075 | ||||||
Alumina Ltd. | 871 | 1,581 | ||||||
Amcor Ltd. | 245 | 2,307 | ||||||
AMP Ltd. | 461 | 808 | ||||||
APA Group | 237 | 1,612 | ||||||
Aristocrat Leisure Ltd. | 57 | 1,076 | ||||||
ASX Ltd. | 22 | 922 | ||||||
Aurizon Holdings Ltd. | 522 | 1,555 | ||||||
Australia & New Zealand Banking Group Ltd. | 510 | 9,387 | ||||||
Bendigo & Adelaide Bank Ltd. | 86 | 622 | ||||||
BHP Billiton Ltd. | 518 | 11,941 | ||||||
BHP Billiton plc | 164 | 3,270 | ||||||
Boral Ltd. | 216 | 861 | ||||||
Brambles Ltd. | 248 | 1,870 | ||||||
Caltex Australia Ltd. | 60 | 1,203 | ||||||
Challenger Ltd. | 96 | 702 | ||||||
Coca-Cola Amatil Ltd. | 186 | 1,307 | ||||||
Cochlear Ltd. | 14 | 1,801 | ||||||
Commonwealth Bank of Australia | 272 | 13,371 | ||||||
Computershare Ltd. | 137 | 1,929 | ||||||
Crown Resorts Ltd. | 10 | 90 | ||||||
CSL Ltd. | 73 | 9,725 | ||||||
Dexus, REIT | 176 | 1,275 | ||||||
Fortescue Metals Group Ltd. | 165 | 469 | ||||||
Goodman Group, REIT | 331 | 2,430 | ||||||
GPT Group (The), REIT | 152 | 557 | ||||||
Incitec Pivot Ltd. | 274 | 760 | ||||||
Insurance Australia Group Ltd. | 291 | 1,407 | ||||||
LendLease Group | 94 | 1,169 | ||||||
Macquarie Group Ltd. | 56 | 4,634 | ||||||
Medibank Pvt Ltd. | 444 | 879 | ||||||
Mirvac Group, REIT | 1,066 | 1,640 | ||||||
National Australia Bank Ltd. | 449 | 8,049 | ||||||
Newcrest Mining Ltd. | 115 | 1,689 | ||||||
Oil Search Ltd. | 263 | 1,446 | ||||||
Orica Ltd. | 100 | 1,224 | ||||||
Origin Energy Ltd. * | 245 | 1,272 | ||||||
QBE Insurance Group Ltd. | 288 | 2,313 | ||||||
Ramsay Health Care Ltd. | 30 | 1,188 | ||||||
REA Group Ltd. | 19 | 970 | ||||||
Rio Tinto Ltd. | 81 | 4,404 | ||||||
Rio Tinto plc | 319 | 15,465 | ||||||
Santos Ltd. | 289 | 1,355 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Australia — continued |
| |||||||
Scentre Group, REIT | 1,106 | 3,116 | ||||||
SEEK Ltd. | 6 | 79 | ||||||
Sonic Healthcare Ltd. | 49 | 782 | ||||||
South32 Ltd. | 1,059 | 2,730 | ||||||
Stockland, REIT | 421 | 1,076 | ||||||
Suncorp Group Ltd. | 277 | 2,757 | ||||||
Sydney Airport | 280 | 1,279 | ||||||
Tabcorp Holdings Ltd. | 397 | 1,302 | ||||||
Telstra Corp. Ltd. | 702 | 1,536 | ||||||
TPG Telecom Ltd. | 159 | 812 | ||||||
Transurban Group | 401 | 3,226 | ||||||
Treasury Wine Estates Ltd. | 100 | 1,077 | ||||||
Vicinity Centres, REIT | 578 | 1,085 | ||||||
Wesfarmers Ltd. | 174 | 5,778 | ||||||
Westpac Banking Corp. | 523 | 9,940 | ||||||
Woodside Petroleum Ltd. | 115 | 2,833 | ||||||
Woolworths Group Ltd. | 242 | 4,878 | ||||||
|
| |||||||
167,896 | ||||||||
|
| |||||||
Austria — 0.2% | ||||||||
Erste Group Bank AG * | 221 | 9,003 | ||||||
|
| |||||||
Belgium — 0.2% | ||||||||
Anheuser-Busch InBev SA/NV | 79 | 5,854 | ||||||
KBC Group NV | 118 | 8,155 | ||||||
|
| |||||||
14,009 | ||||||||
|
| |||||||
Canada — 3.1% | ||||||||
Agnico Eagle Mines Ltd. | 36 | 1,273 | ||||||
Alimentation Couche-Tard, Inc., Class B | 72 | 3,446 | ||||||
ARC Resources Ltd. | 62 | 573 | ||||||
Bank of Montreal | 107 | 8,022 | ||||||
Bank of Nova Scotia (The) | 194 | 10,417 | ||||||
Barrick Gold Corp. | 191 | 2,389 | ||||||
BCE, Inc. | 26 | 1,024 | ||||||
Brookfield Asset Management, Inc., Class A | 153 | 6,239 | ||||||
Canadian Imperial Bank of Commerce | 68 | 5,859 | ||||||
Canadian National Railway Co. | 130 | 11,112 | ||||||
Canadian Natural Resources Ltd. | 187 | 5,134 | ||||||
Canadian Pacific Railway Ltd. | 25 | 5,103 | ||||||
Canadian Tire Corp. Ltd., Class A | 12 | 1,339 | ||||||
Cenovus Energy, Inc. | 145 | 1,224 | ||||||
CGI Group, Inc., Class A * | 38 | 2,342 | ||||||
Constellation Software, Inc. | 3 | 2,244 | ||||||
Crescent Point Energy Corp. | 91 | 432 | ||||||
Dollarama, Inc. | 60 | 1,650 | ||||||
Enbridge, Inc. | 134 | 4,186 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 43 |
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Canada — continued |
| |||||||
Encana Corp. | 146 | 1,493 | ||||||
Fairfax Financial Holdings Ltd. | 4 | 1,859 | ||||||
Fortis, Inc. | 48 | 1,579 | ||||||
Franco-Nevada Corp. | 29 | 1,842 | ||||||
Gildan Activewear, Inc. | 41 | 1,237 | ||||||
Goldcorp, Inc. | 137 | 1,237 | ||||||
Great-West Lifeco, Inc. | 53 | 1,223 | ||||||
Imperial Oil Ltd. | 51 | 1,586 | ||||||
Intact Financial Corp. | 22 | 1,772 | ||||||
Inter Pipeline Ltd. | 61 | 988 | ||||||
Kinross Gold Corp. * | 214 | 556 | ||||||
Loblaw Cos. Ltd. | 39 | 1,938 | ||||||
Magna International, Inc. | 68 | 3,351 | ||||||
Manulife Financial Corp. | 336 | 5,298 | ||||||
Metro, Inc. | 43 | 1,356 | ||||||
National Bank of Canada | 57 | 2,583 | ||||||
Nutrien Ltd. | 113 | 5,985 | ||||||
Open Text Corp. | 44 | 1,468 | ||||||
Pembina Pipeline Corp. | 65 | 2,089 | ||||||
Power Corp. of Canada | 64 | 1,321 | ||||||
Power Financial Corp. | 45 | 967 | ||||||
Restaurant Brands International, Inc. | 37 | 2,053 | ||||||
Rogers Communications, Inc., Class B | 62 | 3,186 | ||||||
Royal Bank of Canada | 232 | 16,939 | ||||||
Saputo, Inc. | 44 | 1,333 | ||||||
Shaw Communications, Inc., Class B | 70 | 1,297 | ||||||
SNC-Lavalin Group, Inc. | 27 | 956 | ||||||
Sun Life Financial, Inc. | 105 | 3,852 | ||||||
Suncor Energy, Inc. | 265 | 8,890 | ||||||
Teck Resources Ltd., Class B | 92 | 1,900 | ||||||
Thomson Reuters Corp. | 59 | 2,735 | ||||||
Toronto-Dominion Bank (The) | 293 | 16,260 | ||||||
TransCanada Corp. | 121 | 4,564 | ||||||
Wheaton Precious Metals Corp. | 71 | 1,174 | ||||||
|
| |||||||
180,875 | ||||||||
|
| |||||||
China — 0.0% (a) | ||||||||
BOC Hong Kong Holdings Ltd. | 723 | 2,707 | ||||||
Yangzijiang Shipbuilding Holdings Ltd. | 412 | 369 | ||||||
|
| |||||||
3,076 | ||||||||
|
| |||||||
Denmark — 0.4% | ||||||||
Chr Hansen Holding A/S | 64 | 6,451 | ||||||
Novo Nordisk A/S, Class B | 399 | 17,210 | ||||||
|
| |||||||
23,661 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Finland — 0.3% | ||||||||
Elisa OYJ | 118 | 4,694 | ||||||
Nordea Bank AB | 862 | 7,493 | ||||||
UPM-Kymmene OYJ | 233 | 7,495 | ||||||
|
| |||||||
19,682 | ||||||||
|
| |||||||
France — 4.2% | ||||||||
Accor SA | 137 | 6,241 | ||||||
Air Liquide SA | 96 | 11,565 | ||||||
Airbus SE | 130 | 14,374 | ||||||
Alstom SA * | 203 | 8,876 | ||||||
AXA SA | 150 | 3,743 | ||||||
BioMerieux | 40 | 3,084 | ||||||
BNP Paribas SA | 274 | 14,263 | ||||||
Capgemini SE | 73 | 8,873 | ||||||
Cie Generale des Etablissements Michelin SCA | 52 | 5,293 | ||||||
Eutelsat Communications SA | 251 | 5,089 | ||||||
Kering SA | 13 | 5,663 | ||||||
Legrand SA | 101 | 6,566 | ||||||
L’Oreal SA | 27 | 6,164 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 61 | 18,447 | ||||||
Natixis SA | 1,240 | 7,242 | ||||||
Orange SA | 860 | 13,429 | ||||||
Pernod Ricard SA | 56 | 8,471 | ||||||
Renault SA | 97 | 7,212 | ||||||
Sanofi | 199 | 17,773 | ||||||
Schneider Electric SE | 180 | 12,995 | ||||||
Thales SA | 68 | 8,728 | ||||||
TOTAL SA | 429 | 25,193 | ||||||
Unibail-Rodamco-Westfield, REIT | 25 | 4,580 | ||||||
Unibail-Rodamco-Westfield, REIT, CHDI * | 103 | 928 | ||||||
Vinci SA | 169 | 15,042 | ||||||
Vivendi SA | 136 | 3,271 | ||||||
|
| |||||||
243,105 | ||||||||
|
| |||||||
Germany — 3.1% | ||||||||
adidas AG | 61 | 14,286 | ||||||
Allianz SE (Registered) | 82 | 17,062 | ||||||
BASF SE | 169 | 12,975 | ||||||
Bayer AG (Registered) | 112 | 8,571 | ||||||
Bayerische Motoren Werke AG | 33 | 2,856 | ||||||
Daimler AG (Registered) | 127 | 7,502 | ||||||
Deutsche Post AG (Registered) | 367 | 11,586 | ||||||
Deutsche Telekom AG (Registered) | 741 | 12,151 | ||||||
Fresenius SE & Co. KGaA | 54 | 3,428 | ||||||
Infineon Technologies AG | 422 | 8,447 | ||||||
Merck KGaA | 58 | 6,158 |
SEE NOTES TO FINANCIAL STATEMENTS.
44 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Germany — continued |
| |||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 64 | 13,649 | ||||||
RWE AG | 449 | 8,741 | ||||||
SAP SE | 210 | 22,488 | ||||||
Siemens AG (Registered) | 130 | 14,932 | ||||||
Volkswagen AG (Preference) | 83 | 13,979 | ||||||
|
| |||||||
178,811 | ||||||||
|
| |||||||
Hong Kong — 1.2% | ||||||||
AIA Group Ltd. | 1,940 | 14,759 | ||||||
ASM Pacific Technology Ltd. | 67 | 584 | ||||||
Bank of East Asia Ltd. (The) | 41 | 133 | ||||||
CK Asset Holdings Ltd. | 342 | 2,228 | ||||||
CK Hutchison Holdings Ltd. | 518 | 5,215 | ||||||
CK Infrastructure Holdings Ltd. | 171 | 1,248 | ||||||
CLP Holdings Ltd. | 356 | 3,989 | ||||||
Galaxy Entertainment Group Ltd. | 433 | 2,351 | ||||||
Hang Lung Properties Ltd. | 59 | 107 | ||||||
Hang Seng Bank Ltd. | 162 | 3,794 | ||||||
Henderson Land Development Co. Ltd. | 313 | 1,460 | ||||||
HKT Trust & HKT Ltd. | 556 | 767 | ||||||
Hong Kong & China Gas Co. Ltd. | 1,719 | 3,284 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 177 | 4,708 | ||||||
Hongkong Land Holdings Ltd. | 188 | 1,113 | ||||||
Hutchison Port Holdings Trust | 2,431 | 598 | ||||||
Jardine Matheson Holdings Ltd. | 19 | 1,080 | ||||||
Kerry Properties Ltd. | 265 | 834 | ||||||
Li & Fung Ltd. | 1,756 | 349 | ||||||
Link REIT | 291 | 2,582 | ||||||
MTR Corp. Ltd. | 201 | 975 | ||||||
New World Development Co. Ltd. | 614 | 781 | ||||||
NWS Holdings Ltd. | 410 | 814 | ||||||
Power Assets Holdings Ltd. | 216 | 1,442 | ||||||
Sino Land Co. Ltd. | 908 | 1,426 | ||||||
Sun Hung Kai Properties Ltd. | 282 | 3,658 | ||||||
Swire Pacific Ltd., Class A | 158 | 1,641 | ||||||
Techtronic Industries Co. Ltd. | 99 | 464 | ||||||
WH Group Ltd. (b) | 1,040 | 730 | ||||||
Wharf Holdings Ltd. (The) | 348 | 870 | ||||||
Wharf Real Estate Investment Co. Ltd. | 282 | 1,752 | ||||||
Wheelock & Co. Ltd. | 260 | 1,390 | ||||||
Yue Yuen Industrial Holdings Ltd. | 249 | 684 | ||||||
|
| |||||||
67,810 | ||||||||
|
| |||||||
Ireland — 0.5% | ||||||||
CRH plc | 355 | 10,591 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Ireland — continued |
| |||||||
James Hardie Industries plc, CHDI | 104 | 1,386 | ||||||
Kerry Group plc, Class A | 75 | 7,642 | ||||||
Kingspan Group plc | 101 | 4,397 | ||||||
Ryanair Holdings plc, ADR * | 71 | 5,915 | ||||||
|
| |||||||
29,931 | ||||||||
|
| |||||||
Israel — 0.1% | ||||||||
Teva Pharmaceutical Industries Ltd., ADR | 155 | 3,092 | ||||||
|
| |||||||
Italy — 0.4% | ||||||||
Enel SpA | 2,979 | 14,605 | ||||||
Intesa Sanpaolo SpA | 832 | 1,842 | ||||||
UniCredit SpA | 749 | 9,580 | ||||||
|
| |||||||
26,027 | ||||||||
|
| |||||||
Japan — 8.0% | ||||||||
AEON Financial Service Co. Ltd. | 26 | 513 | ||||||
AGC, Inc. | 61 | 1,995 | ||||||
Ajinomoto Co., Inc. | 126 | 2,040 | ||||||
Alfresa Holdings Corp. | 40 | 1,070 | ||||||
Amada Holdings Co. Ltd. | 170 | 1,602 | ||||||
Asahi Group Holdings Ltd. | 105 | 4,592 | ||||||
Asahi Kasei Corp. | 135 | 1,615 | ||||||
Astellas Pharma, Inc. | 191 | 2,946 | ||||||
Bandai Namco Holdings, Inc. | 94 | 3,344 | ||||||
Bridgestone Corp. | 141 | 5,437 | ||||||
Canon, Inc. | 121 | 3,438 | ||||||
Central Japan Railway Co. | 11 | 2,073 | ||||||
Chubu Electric Power Co., Inc. | 155 | 2,241 | ||||||
Chugai Pharmaceutical Co. Ltd. | 25 | 1,434 | ||||||
Coca-Cola Bottlers Japan Holdings, Inc. | 21 | 550 | ||||||
Concordia Financial Group Ltd. | 449 | 2,054 | ||||||
Dai Nippon Printing Co. Ltd. | 29 | 644 | ||||||
Daicel Corp. | 265 | 2,807 | ||||||
Dai-ichi Life Holdings, Inc. | 145 | 2,725 | ||||||
Daiichi Sankyo Co. Ltd. | 135 | 5,168 | ||||||
Daikin Industries Ltd. | 55 | 6,410 | ||||||
Daito Trust Construction Co. Ltd. | 13 | 1,753 | ||||||
Daiwa House Industry Co. Ltd. | 141 | 4,242 | ||||||
Daiwa House REIT Investment Corp., REIT | — | (c) | 607 | |||||
Denso Corp. | 37 | 1,641 | ||||||
East Japan Railway Co. | 68 | 5,913 | ||||||
Eisai Co. Ltd. | 16 | 1,349 | ||||||
Electric Power Development Co. Ltd. | 117 | 3,188 | ||||||
FANUC Corp. | 21 | 3,566 | ||||||
Fast Retailing Co. Ltd. | 7 | 3,474 | ||||||
Fuji Electric Co. Ltd. | 27 | 836 |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 45 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Japan — continued |
| |||||||
FUJIFILM Holdings Corp. | 101 | 4,364 | ||||||
Fujitsu Ltd. | 16 | 998 | ||||||
Hakuhodo DY Holdings, Inc. | 47 | 776 | ||||||
Hankyu Hanshin Holdings, Inc. | 22 | 720 | ||||||
Hino Motors Ltd. | 142 | 1,356 | ||||||
Hisamitsu Pharmaceutical Co., Inc. | 39 | 2,198 | ||||||
Hitachi High-Technologies Corp. | 41 | 1,550 | ||||||
Hitachi Ltd. | 195 | 5,952 | ||||||
Honda Motor Co. Ltd. | 310 | 8,838 | ||||||
Hoya Corp. | 31 | 1,731 | ||||||
Hulic Co. Ltd. | 139 | 1,267 | ||||||
ITOCHU Corp. | 316 | 5,855 | ||||||
J Front Retailing Co. Ltd. | 176 | 2,308 | ||||||
Japan Airlines Co. Ltd. | 83 | 2,946 | ||||||
Japan Exchange Group, Inc. | 34 | 614 | ||||||
Japan Prime Realty Investment Corp., REIT | — | (c) | 596 | |||||
Japan Real Estate Investment Corp., REIT | — | (c) | 1,125 | |||||
Japan Retail Fund Investment Corp., REIT | 1 | 1,055 | ||||||
Japan Tobacco, Inc. | 155 | 3,993 | ||||||
JFE Holdings, Inc. | 75 | 1,404 | ||||||
JTEKT Corp. | 46 | 574 | ||||||
JXTG Holdings, Inc. | 834 | 5,637 | ||||||
Kao Corp. | 98 | 6,519 | ||||||
Kawasaki Heavy Industries Ltd. | 91 | 2,152 | ||||||
KDDI Corp. | 203 | 4,920 | ||||||
Keikyu Corp. | 34 | 496 | ||||||
Keyence Corp. | 17 | 8,305 | ||||||
Kintetsu Group Holdings Co. Ltd. | 18 | 707 | ||||||
Kirin Holdings Co. Ltd. | 108 | 2,575 | ||||||
Komatsu Ltd. | 121 | 3,143 | ||||||
Kose Corp. | 14 | 2,047 | ||||||
Kubota Corp. | 37 | 579 | ||||||
Kyocera Corp. | 30 | 1,624 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 131 | 2,543 | ||||||
M3, Inc. | 119 | 1,921 | ||||||
Mabuchi Motor Co. Ltd. | 57 | 2,038 | ||||||
Marui Group Co. Ltd. | 149 | 3,202 | ||||||
Mazda Motor Corp. | 173 | 1,845 | ||||||
Mebuki Financial Group, Inc. | 580 | 1,766 | ||||||
MEIJI Holdings Co. Ltd. | 29 | 1,911 | ||||||
Mitsubishi Corp. | 280 | 7,889 | ||||||
Mitsubishi Electric Corp. | 394 | 4,984 | ||||||
Mitsubishi Estate Co. Ltd. | 284 | 4,534 | ||||||
Mitsubishi Tanabe Pharma Corp. | 25 | 375 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 1,982 | 11,998 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Japan — continued |
| |||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 100 | 516 | ||||||
Mitsui & Co. Ltd. | 276 | 4,617 | ||||||
Mitsui Chemicals, Inc. | 105 | 2,343 | ||||||
Mitsui Fudosan Co. Ltd. | 88 | 1,980 | ||||||
Mizuho Financial Group, Inc. | 1,993 | 3,422 | ||||||
MS&AD Insurance Group Holdings, Inc. | 32 | 973 | ||||||
Murata Manufacturing Co. Ltd. | 24 | 3,673 | ||||||
Nexon Co. Ltd. * | 133 | 1,515 | ||||||
NGK Spark Plug Co. Ltd. | 90 | 1,813 | ||||||
NH Foods Ltd. | 23 | 776 | ||||||
Nidec Corp. | 43 | 5,497 | ||||||
Nintendo Co. Ltd. | 20 | 6,369 | ||||||
Nippon Building Fund, Inc., REIT | — | (c) | 1,246 | |||||
Nippon Prologis REIT, Inc., REIT | — | (c) | 517 | |||||
Nippon Steel & Sumitomo Metal Corp. | 157 | 2,898 | ||||||
Nippon Telegraph & Telephone Corp. | 148 | 6,099 | ||||||
Nippon Yusen KK | 101 | 1,622 | ||||||
Nissan Motor Co. Ltd. | 403 | 3,667 | ||||||
Nitori Holdings Co. Ltd. | 18 | 2,298 | ||||||
Nitto Denko Corp. | 23 | 1,462 | ||||||
Nomura Holdings, Inc. | 355 | 1,704 | ||||||
Nomura Real Estate Master Fund, Inc., REIT | — | (c) | 584 | |||||
Nomura Research Institute Ltd. | 71 | 3,148 | ||||||
NSK Ltd. | 101 | 994 | ||||||
NTT DOCOMO, Inc. | 282 | 6,993 | ||||||
Obayashi Corp. | 115 | 1,016 | ||||||
Obic Co. Ltd. | 6 | 528 | ||||||
Olympus Corp. | 87 | 2,890 | ||||||
Ono Pharmaceutical Co. Ltd. | 127 | 2,878 | ||||||
Oriental Land Co. Ltd. | 16 | 1,533 | ||||||
ORIX Corp. | 319 | 5,189 | ||||||
Otsuka Corp. | 68 | 2,246 | ||||||
Otsuka Holdings Co. Ltd. | 107 | 5,094 | ||||||
Panasonic Corp. | 468 | 5,024 | ||||||
Persol Holdings Co. Ltd. | 132 | 2,500 | ||||||
Recruit Holdings Co. Ltd. | 155 | 4,171 | ||||||
Renesas Electronics Corp. * | 287 | 1,511 | ||||||
Resona Holdings, Inc. | 223 | 1,175 | ||||||
Rohm Co. Ltd. | 33 | 2,341 | ||||||
Ryohin Keikaku Co. Ltd. | 5 | 1,427 | ||||||
Santen Pharmaceutical Co. Ltd. | 52 | 767 | ||||||
Seibu Holdings, Inc. | 160 | 2,910 | ||||||
Seiko Epson Corp. | 81 | 1,311 | ||||||
Sekisui House Ltd. | 108 | 1,579 | ||||||
Seven & i Holdings Co. Ltd. | 160 | 6,941 |
SEE NOTES TO FINANCIAL STATEMENTS.
46 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Japan — continued |
| |||||||
Shimano, Inc. | 9 | 1,256 | ||||||
Shimizu Corp. | 276 | 2,240 | ||||||
Shin-Etsu Chemical Co. Ltd. | 78 | 6,493 | ||||||
Shinsei Bank Ltd. | 86 | 1,302 | ||||||
Shionogi & Co. Ltd. | 10 | 646 | ||||||
Shiseido Co. Ltd. | 37 | 2,353 | ||||||
Shizuoka Bank Ltd. (The) | 134 | 1,168 | ||||||
SMC Corp. | 12 | 3,825 | ||||||
SoftBank Group Corp. | 113 | 8,966 | ||||||
Sompo Holdings, Inc. | 53 | 2,169 | ||||||
Sony Corp. | 206 | 11,126 | ||||||
Stanley Electric Co. Ltd. | 23 | 683 | ||||||
Subaru Corp. | 14 | 370 | ||||||
Sumitomo Chemical Co. Ltd. | 383 | 1,921 | ||||||
Sumitomo Corp. | 16 | 237 | ||||||
Sumitomo Electric Industries Ltd. | 167 | 2,282 | ||||||
Sumitomo Metal Mining Co. Ltd. | 71 | 2,223 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 243 | 9,461 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 90 | 3,580 | ||||||
Sumitomo Realty & Development Co. Ltd. | 41 | 1,412 | ||||||
Sundrug Co. Ltd. | 17 | 625 | ||||||
Suntory Beverage & Food Ltd. | 36 | 1,463 | ||||||
Suzuken Co. Ltd. | 11 | 542 | ||||||
Suzuki Motor Corp. | 91 | 4,533 | ||||||
T&D Holdings, Inc. | 176 | 2,805 | ||||||
Takeda Pharmaceutical Co. Ltd. | 76 | 3,155 | ||||||
THK Co. Ltd. | 59 | 1,299 | ||||||
Toho Gas Co. Ltd. | 45 | 1,543 | ||||||
Tokio Marine Holdings, Inc. | 148 | 6,968 | ||||||
Tokyo Electric Power Co. Holdings, Inc. * | 185 | 947 | ||||||
Tokyo Electron Ltd. | 20 | 2,753 | ||||||
Tokyo Gas Co. Ltd. | 91 | 2,245 | ||||||
Tokyu Corp. | 231 | 3,813 | ||||||
Tokyu Fudosan Holdings Corp. | 343 | 1,931 | ||||||
Toppan Printing Co. Ltd. | 57 | 811 | ||||||
Toray Industries, Inc. | 453 | 3,210 | ||||||
Toshiba Corp. * | 75 | 2,239 | ||||||
Toyota Industries Corp. | 10 | 501 | ||||||
Toyota Motor Corp. | 361 | 21,171 | ||||||
Toyota Tsusho Corp. | 23 | 834 | ||||||
Unicharm Corp. | 23 | 635 | ||||||
United Urban Investment Corp., REIT | — | (c) | 701 | |||||
Yahoo Japan Corp. | 165 | 513 | ||||||
Yamato Holdings Co. Ltd. | 107 | 2,912 | ||||||
Yaskawa Electric Corp. | 21 | 616 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Japan — continued |
| |||||||
ZOZO, Inc. | 19 | 458 | ||||||
|
| |||||||
467,890 | ||||||||
|
| |||||||
Luxembourg — 0.0% (a) | ||||||||
ArcelorMittal | 97 | 2,419 | ||||||
|
| |||||||
Macau — 0.0% (a) | ||||||||
Sands China Ltd. | 509 | 2,014 | ||||||
Wynn Macau Ltd. | 316 | 659 | ||||||
|
| |||||||
2,673 | ||||||||
|
| |||||||
Netherlands — 2.1% | ||||||||
Akzo Nobel NV | 107 | 8,962 | ||||||
ASML Holding NV | 99 | 17,067 | ||||||
Heineken Holding NV | 80 | 6,912 | ||||||
Heineken NV | 89 | 8,046 | ||||||
ING Groep NV | 570 | 6,747 | ||||||
Koninklijke Ahold Delhaize NV | 414 | 9,470 | ||||||
Koninklijke Philips NV | 165 | 6,158 | ||||||
NN Group NV | 106 | 4,550 | ||||||
Royal Dutch Shell plc, Class A | 901 | 28,707 | ||||||
Royal Dutch Shell plc, Class B | 576 | 18,790 | ||||||
Wolters Kluwer NV | 134 | 7,582 | ||||||
|
| |||||||
122,991 | ||||||||
|
| |||||||
New Zealand — 0.1% | ||||||||
Auckland International Airport Ltd. | 268 | 1,224 | ||||||
Fletcher Building Ltd. * | 239 | 947 | ||||||
Ryman Healthcare Ltd. | 119 | 939 | ||||||
Spark New Zealand Ltd. | 512 | 1,323 | ||||||
|
| |||||||
4,433 | ||||||||
|
| |||||||
Norway — 0.1% | ||||||||
Telenor ASA | 374 | 6,856 | ||||||
|
| |||||||
Singapore — 0.4% | ||||||||
Ascendas, REIT | 507 | 923 | ||||||
CapitaLand Ltd. | 671 | 1,523 | ||||||
CapitaLand Mall Trust, REIT | 379 | 577 | ||||||
ComfortDelGro Corp. Ltd. | 390 | 635 | ||||||
DBS Group Holdings Ltd. | 362 | 6,137 | ||||||
Genting Singapore Ltd. | 771 | 491 | ||||||
Jardine Cycle & Carriage Ltd. | 17 | 366 | ||||||
Keppel Corp. Ltd. | 331 | 1,482 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 627 | 4,873 | ||||||
Singapore Exchange Ltd. | 79 | 393 | ||||||
Singapore Press Holdings Ltd. | 153 | 294 | ||||||
Singapore Telecommunications Ltd. | 1,293 | 2,953 |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 47 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Singapore — continued |
| |||||||
United Overseas Bank Ltd. | 201 | 3,547 | ||||||
Wilmar International Ltd. | 601 | 1,372 | ||||||
|
| |||||||
25,566 | ||||||||
|
| |||||||
Spain — 0.9% | ||||||||
Amadeus IT Group SA | 97 | 7,803 | ||||||
Banco Santander SA | 2,342 | 11,145 | ||||||
Iberdrola SA | 1,891 | 13,378 | ||||||
Industria de Diseno Textil SA | 117 | 3,288 | ||||||
Red Electrica Corp. SA | 328 | 6,800 | ||||||
Repsol SA | 397 | 7,086 | ||||||
Telefonica SA | 386 | 3,170 | ||||||
|
| |||||||
52,670 | ||||||||
|
| |||||||
Sweden — 0.4% | ||||||||
Autoliv, Inc. | 6 | 465 | ||||||
Lundin Petroleum AB | 195 | 5,918 | ||||||
Sandvik AB | 489 | 7,737 | ||||||
Svenska Handelsbanken AB, Class A | 118 | 1,278 | ||||||
Volvo AB, Class B | 423 | 6,322 | ||||||
|
| |||||||
21,720 | ||||||||
|
| |||||||
Switzerland — 3.0% | ||||||||
ABB Ltd. (Registered) | 372 | 7,478 | ||||||
Cie Financiere Richemont SA (Registered) | 82 | 6,000 | ||||||
Credit Suisse Group AG (Registered) * | 907 | 11,863 | ||||||
Glencore plc * | 3,250 | 13,225 | ||||||
Lonza Group AG (Registered) * | 29 | 9,172 | ||||||
Nestle SA (Registered) | 446 | 37,631 | ||||||
Novartis AG (Registered) | 428 | 37,502 | ||||||
Partners Group Holding AG | 4 | 2,752 | ||||||
Roche Holding AG | 133 | 32,402 | ||||||
UBS Group AG (Registered) * | 382 | 5,346 | ||||||
Zurich Insurance Group AG * | 36 | 11,269 | ||||||
|
| |||||||
174,640 | ||||||||
|
| |||||||
United Kingdom — 5.1% | ||||||||
3i Group plc | 712 | 7,972 | ||||||
AstraZeneca plc | 211 | 16,108 | ||||||
Aviva plc | 792 | 4,328 | ||||||
Beazley plc | 674 | 4,527 | ||||||
BP plc | 2,740 | 19,794 | ||||||
British American Tobacco plc | 217 | 9,414 | ||||||
Bunzl plc | 237 | 6,998 | ||||||
Burberry Group plc | 215 | 4,981 | ||||||
Compass Group plc | 410 | 8,063 | ||||||
DCC plc | 74 | 6,317 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United Kingdom — continued |
| |||||||
Diageo plc | 494 | 17,077 | ||||||
GlaxoSmithKline plc | 581 | 11,251 | ||||||
HSBC Holdings plc | 3,384 | 27,851 | ||||||
Imperial Brands plc | 404 | 13,676 | ||||||
InterContinental Hotels Group plc | 95 | 4,997 | ||||||
Intertek Group plc | 84 | 5,051 | ||||||
Johnson Matthey plc | 116 | 4,385 | ||||||
Liberty Global plc, Class A * | 12 | 297 | ||||||
Liberty Global plc, Class C * | 61 | 1,522 | ||||||
Linde plc | 53 | 8,765 | ||||||
Lloyds Banking Group plc | 8,307 | 6,062 | ||||||
London Stock Exchange Group plc | 172 | 9,484 | ||||||
National Grid plc | 404 | 4,269 | ||||||
Prudential plc | 735 | 14,710 | ||||||
Reckitt Benckiser Group plc | 77 | 6,222 | ||||||
RELX plc | 548 | 10,831 | ||||||
Standard Chartered plc | 1,408 | 9,867 | ||||||
Taylor Wimpey plc | 4,139 | 8,522 | ||||||
Tesco plc | 3,629 | 9,882 | ||||||
Unilever NV, CVA | 430 | 23,080 | ||||||
Unilever plc | 143 | 7,577 | ||||||
Vodafone Group plc | 2,881 | 5,418 | ||||||
|
| |||||||
299,298 | ||||||||
|
| |||||||
United States — 61.6% | ||||||||
3M Co. | 13 | 2,496 | ||||||
Abbott Laboratories | 93 | 6,433 | ||||||
AbbVie, Inc. | 134 | 10,470 | ||||||
Accenture plc, Class A | 128 | 20,100 | ||||||
Adobe, Inc. * | 95 | 23,330 | ||||||
Advance Auto Parts, Inc. | 23 | 3,711 | ||||||
Alexion Pharmaceuticals, Inc. * | 82 | 9,164 | ||||||
Align Technology, Inc. * | 11 | 2,424 | ||||||
Alleghany Corp. | 1 | 721 | ||||||
Allegion plc | 117 | 9,992 | ||||||
Allergan plc | 76 | 12,068 | ||||||
Alliance Data Systems Corp. | 31 | 6,338 | ||||||
Alnylam Pharmaceuticals, Inc. * | 5 | 436 | ||||||
Alphabet, Inc., Class A * | 45 | 48,781 | ||||||
Alphabet, Inc., Class C * | 58 | 62,298 | ||||||
Altria Group, Inc. | 223 | 14,472 | ||||||
Amazon.com, Inc. * | 70 | 111,830 | ||||||
Ameren Corp. | 180 | 11,627 | ||||||
American Express Co. | 120 | 12,356 | ||||||
American Financial Group, Inc. | 7 | 676 |
SEE NOTES TO FINANCIAL STATEMENTS.
48 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
United States — continued |
| |||||||
American International Group, Inc. | 357 | 14,732 | ||||||
Amgen, Inc. | 55 | 10,536 | ||||||
Analog Devices, Inc. | 231 | 19,314 | ||||||
Antero Resources Corp. * | 22 | 357 | ||||||
Anthem, Inc. | 71 | 19,477 | ||||||
Apple, Inc. | 762 | 166,701 | ||||||
Aptiv plc | 88 | 6,734 | ||||||
Aramark | 27 | 967 | ||||||
Arch Capital Group Ltd. * | 23 | 656 | ||||||
Arista Networks, Inc. * | 8 | 1,730 | ||||||
Arrow Electronics, Inc. * | 14 | 953 | ||||||
AT&T, Inc. | 517 | 15,876 | ||||||
Athene Holding Ltd., Class A * | 14 | 631 | ||||||
Atmos Energy Corp. | 8 | 724 | ||||||
Automatic Data Processing, Inc. | 143 | 20,596 | ||||||
AutoZone, Inc. * | 16 | 11,978 | ||||||
AvalonBay Communities, Inc., REIT | 72 | 12,591 | ||||||
Avery Dennison Corp. | 124 | 11,270 | ||||||
Axis Capital Holdings Ltd. | 14 | 788 | ||||||
Ball Corp. | 108 | 4,831 | ||||||
Bank of America Corp. | 1,999 | 54,973 | ||||||
BB&T Corp. | 161 | 7,924 | ||||||
Becton Dickinson and Co. | 77 | 17,799 | ||||||
Berkshire Hathaway, Inc., Class B * | 182 | 37,322 | ||||||
Best Buy Co., Inc. | 216 | 15,127 | ||||||
Biogen, Inc. * | 32 | 9,637 | ||||||
BioMarin Pharmaceutical, Inc. * | 24 | 2,217 | ||||||
BlackRock, Inc. | 41 | 17,033 | ||||||
Boeing Co. (The) | 60 | 21,316 | ||||||
Booking Holdings, Inc. * | 7 | 13,516 | ||||||
BorgWarner, Inc. | 35 | 1,372 | ||||||
Boston Scientific Corp. * | 696 | 25,156 | ||||||
Bristol-Myers Squibb Co. | 225 | 11,390 | ||||||
Broadcom, Inc. | 100 | 22,233 | ||||||
Broadridge Financial Solutions, Inc. | 18 | 2,153 | ||||||
CA, Inc. | 50 | 2,212 | ||||||
Camden Property Trust, REIT | 11 | 1,036 | ||||||
Capital One Financial Corp. | 242 | 21,648 | ||||||
Caterpillar, Inc. | 156 | 18,955 | ||||||
CBRE Group, Inc., Class A * | 23 | 912 | ||||||
CDK Global, Inc. | 21 | 1,175 | ||||||
CDW Corp. | 23 | 2,034 | ||||||
Celanese Corp. | 131 | 12,657 | ||||||
Celgene Corp. * | 128 | 9,173 | ||||||
Centene Corp. * | 25 | 3,216 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United States — continued |
| |||||||
Charles Schwab Corp. (The) | 181 | 8,368 | ||||||
Charter Communications, Inc., Class A * | 78 | 24,868 | ||||||
Cheniere Energy, Inc. * | 17 | 1,028 | ||||||
Chevron Corp. | 287 | 32,057 | ||||||
Chubb Ltd. | 71 | 8,903 | ||||||
Cigna Corp. | 115 | 24,522 | ||||||
Cisco Systems, Inc. | 354 | 16,175 | ||||||
Citigroup, Inc. | 580 | 37,957 | ||||||
Citizens Financial Group, Inc. | 284 | 10,625 | ||||||
CME Group, Inc. | 90 | 16,407 | ||||||
Coca-Cola Co. (The) | 852 | 40,773 | ||||||
Cognex Corp. | 11 | 474 | ||||||
Colgate-Palmolive Co. | 126 | 7,527 | ||||||
Comcast Corp., Class A | 1,024 | 39,064 | ||||||
CommScope Holding Co., Inc. * | 28 | 677 | ||||||
Concho Resources, Inc. * | 113 | 15,766 | ||||||
Constellation Brands, Inc., Class A | 19 | 3,752 | ||||||
Corning, Inc. | 35 | 1,104 | ||||||
CoStar Group, Inc. * | 2 | 875 | ||||||
Crown Holdings, Inc. * | 21 | 896 | ||||||
Cummins, Inc. | 85 | 11,668 | ||||||
CVS Health Corp. | 258 | 18,698 | ||||||
Danaher Corp. | 94 | 9,386 | ||||||
Deere & Co. | 98 | 13,246 | ||||||
Dell Technologies, Inc., Class V * | 23 | 2,083 | ||||||
Delta Air Lines, Inc. | 222 | 12,137 | ||||||
Diamondback Energy, Inc. | 143 | 16,100 | ||||||
Digital Realty Trust, Inc., REIT | 45 | 4,635 | ||||||
Discovery, Inc., Class A * | 47 | 1,516 | ||||||
DISH Network Corp., Class A * | 197 | 6,054 | ||||||
Dollar General Corp. | 133 | 14,780 | ||||||
Dollar Tree, Inc. * | 33 | 2,795 | ||||||
DowDuPont, Inc. | 546 | 29,461 | ||||||
Duke Realty Corp., REIT | 60 | 1,655 | ||||||
E *TRADE Financial Corp. | 38 | 1,886 | ||||||
East West Bancorp, Inc. | 24 | 1,237 | ||||||
Eastman Chemical Co. | 182 | 14,250 | ||||||
Eaton Corp. plc | 290 | 20,813 | ||||||
Electronic Arts, Inc. * | 135 | 12,317 | ||||||
Eli Lilly & Co. | 213 | 23,144 | ||||||
Energizer Holdings, Inc. | 106 | 6,254 | ||||||
EOG Resources, Inc. | 242 | 25,456 | ||||||
Equinix, Inc., REIT | 16 | 6,180 | ||||||
Equity Residential, REIT | 124 | 8,073 | ||||||
Essex Property Trust, Inc., REIT | 10 | 2,578 |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 49 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
United States — continued |
| |||||||
Estee Lauder Cos., Inc. (The), Class A | 96 | 13,200 | ||||||
Everest Re Group Ltd. | 7 | 1,595 | ||||||
Exelon Corp. | 437 | 19,142 | ||||||
Expedia Group, Inc. | 102 | 12,780 | ||||||
Exxon Mobil Corp. | 403 | 32,078 | ||||||
Facebook, Inc., Class A * | 254 | 38,576 | ||||||
Fastenal Co. | 69 | 3,548 | ||||||
Federal Realty Investment Trust, REIT | 67 | 8,362 | ||||||
Ferguson plc | 100 | 6,754 | ||||||
Fidelity National Financial, Inc. | 18 | 594 | ||||||
Fidelity National Information Services, Inc. | 108 | 11,256 | ||||||
First Data Corp., Class A * | 203 | 3,800 | ||||||
FleetCor Technologies, Inc. * | 8 | 1,526 | ||||||
Flex Ltd. * | 40 | 313 | ||||||
Freeport-McMoRan, Inc. | 214 | 2,490 | ||||||
General Dynamics Corp. | 111 | 19,206 | ||||||
General Motors Co. | 57 | 2,096 | ||||||
Gilead Sciences, Inc. | 194 | 13,230 | ||||||
Goldman Sachs Group, Inc. (The) | �� | 50 | 11,306 | |||||
Hartford Financial Services Group, Inc. (The) | 257 | 11,686 | ||||||
HD Supply Holdings, Inc. * | 18 | 674 | ||||||
Hewlett Packard Enterprise Co. | 366 | 5,580 | ||||||
Hilton Worldwide Holdings, Inc. | 192 | 13,654 | ||||||
HollyFrontier Corp. | 27 | 1,830 | ||||||
Hologic, Inc. * | 28 | 1,101 | ||||||
Home Depot, Inc. (The) | 255 | 44,912 | ||||||
Honeywell International, Inc. | 223 | 32,269 | ||||||
HP, Inc. | 645 | 15,573 | ||||||
Huntington Bancshares, Inc. | 575 | 8,243 | ||||||
IAC/InterActiveCorp * | 6 | 1,132 | ||||||
IDEX Corp. | 5 | 680 | ||||||
Illumina, Inc. * | 21 | 6,547 | ||||||
Ingersoll-Rand plc | 206 | 19,738 | ||||||
Ingredion, Inc. | 10 | 999 | ||||||
Intel Corp. | 337 | 15,799 | ||||||
Intercontinental Exchange, Inc. | 86 | 6,617 | ||||||
International Business Machines Corp. | 55 | 6,373 | ||||||
Intuit, Inc. | 35 | 7,438 | ||||||
Intuitive Surgical, Inc. * | 17 | 8,881 | ||||||
Invitation Homes, Inc., REIT | 30 | 658 | ||||||
JM Smucker Co. (The) | 17 | 1,804 | ||||||
Johnson & Johnson | 365 | 51,090 | ||||||
Jones Lang LaSalle, Inc. | 6 | 783 | ||||||
KeyCorp | 643 | 11,682 | ||||||
Kimberly-Clark Corp. | 18 | 1,915 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United States — continued |
| |||||||
Kraft Heinz Co. (The) | 93 | 5,129 | ||||||
Las Vegas Sands Corp. | 51 | 2,587 | ||||||
Lear Corp. | 7 | 948 | ||||||
Leidos Holdings, Inc. | 11 | 721 | ||||||
Lennar Corp., Class A | 189 | 8,103 | ||||||
Lennox International, Inc. | 5 | 1,114 | ||||||
Liberty Broadband Corp., Class C * | 17 | 1,397 | ||||||
Liberty Media Corp.-Liberty Formula One, Class C * | 10 | 338 | ||||||
Liberty Media Corp.-Liberty SiriusXM, Class A * | 17 | 711 | ||||||
Liberty Property Trust, REIT | 21 | 875 | ||||||
Lincoln National Corp. | 199 | 11,965 | ||||||
Live Nation Entertainment, Inc. * | 8 | 431 | ||||||
Lowe’s Cos., Inc. | 147 | 14,013 | ||||||
Lululemon Athletica, Inc. * | 9 | 1,261 | ||||||
ManpowerGroup, Inc. | 11 | 849 | ||||||
Marathon Petroleum Corp. | 331 | 23,297 | ||||||
Markel Corp. * | 1 | 1,017 | ||||||
Marvell Technology Group Ltd. | 63 | 1,040 | ||||||
Masco Corp. | 289 | 8,672 | ||||||
Mastercard, Inc., Class A | 175 | 34,557 | ||||||
Maxim Integrated Products, Inc. | 41 | 2,043 | ||||||
McDonald’s Corp. | 51 | 8,955 | ||||||
Medtronic plc | 321 | 28,876 | ||||||
Merck & Co., Inc. | 489 | 36,003 | ||||||
MetLife, Inc. | 285 | 11,748 | ||||||
Microchip Technology, Inc. | 174 | 11,446 | ||||||
Micron Technology, Inc. * | 174 | 6,545 | ||||||
Microsoft Corp. | 1,268 | 135,388 | ||||||
Molson Coors Brewing Co., Class B | 133 | 8,539 | ||||||
Mondelez International, Inc., Class A | 629 | 26,400 | ||||||
Morgan Stanley | 534 | 24,388 | ||||||
Motorola Solutions, Inc. | 10 | 1,186 | ||||||
National Retail Properties, Inc., REIT | 21 | 983 | ||||||
Nektar Therapeutics * | 26 | 1,011 | ||||||
Netflix, Inc. * | 93 | 28,066 | ||||||
Newmont Mining Corp. | 28 | 878 | ||||||
NextEra Energy, Inc. | 171 | 29,495 | ||||||
NIKE, Inc., Class B | 81 | 6,078 | ||||||
Norfolk Southern Corp. | 148 | 24,836 | ||||||
Northrop Grumman Corp. | 32 | 8,346 | ||||||
Nucor Corp. | 49 | 2,915 | ||||||
NVIDIA Corp. | 139 | 29,261 | ||||||
NVR, Inc. * | — | (c) | 448 | |||||
Occidental Petroleum Corp. | 351 | 23,544 | ||||||
ONEOK, Inc. | 136 | 8,895 | ||||||
Oracle Corp. | 465 | 22,711 |
SEE NOTES TO FINANCIAL STATEMENTS.
50 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
United States — continued |
| |||||||
O’Reilly Automotive, Inc. * | 64 | 20,384 | ||||||
Owens Corning | 16 | 754 | ||||||
PACCAR, Inc. | 175 | 10,030 | ||||||
Palo Alto Networks, Inc. * | 12 | 2,154 | ||||||
Parker-Hannifin Corp. | 21 | 3,154 | ||||||
Parsley Energy, Inc., Class A * | 238 | 5,584 | ||||||
PayPal Holdings, Inc. * | 330 | 27,755 | ||||||
PepsiCo, Inc. | 268 | 30,163 | ||||||
Pfizer, Inc. | 1,148 | 49,445 | ||||||
Philip Morris International, Inc. | 331 | 29,132 | ||||||
Pioneer Natural Resources Co. | 131 | 19,264 | ||||||
Principal Financial Group, Inc. | 129 | 6,079 | ||||||
Procter & Gamble Co. (The) | 175 | 15,558 | ||||||
Prologis, Inc., REIT | 223 | 14,388 | ||||||
Prudential Financial, Inc. | 139 | 13,033 | ||||||
Public Service Enterprise Group, Inc. | 173 | 9,249 | ||||||
PVH Corp. | 87 | 10,486 | ||||||
Qurate Retail, Inc. * | 29 | 631 | ||||||
Raymond James Financial, Inc. | 12 | 952 | ||||||
Regions Financial Corp. | 324 | 5,490 | ||||||
Reinsurance Group of America, Inc. | 10 | 1,388 | ||||||
Resideo Technologies, Inc. * | 38 | 801 | ||||||
Robert Half International, Inc. | 19 | 1,160 | ||||||
Ross Stores, Inc. | 188 | 18,638 | ||||||
Royal Caribbean Cruises Ltd. | 32 | 3,397 | ||||||
Sabre Corp. | 24 | 581 | ||||||
salesforce.com, Inc. * | 238 | 32,652 | ||||||
Sempra Energy | 127 | 13,951 | ||||||
ServiceNow, Inc. * | 26 | 4,751 | ||||||
Sherwin-Williams Co. (The) | 11 | 4,261 | ||||||
Shire plc | 79 | 4,758 | ||||||
Sirius XM Holdings, Inc. | 276 | 1,659 | ||||||
Snap-on, Inc. | 82 | 12,562 | ||||||
Spirit AeroSystems Holdings, Inc., Class A | 8 | 702 | ||||||
Splunk, Inc. * | 9 | 883 | ||||||
Square, Inc., Class A * | 39 | 2,836 | ||||||
Stanley Black & Decker, Inc. | 136 | 15,882 | ||||||
State Street Corp. | 17 | 1,196 | ||||||
Steel Dynamics, Inc. | 16 | 645 | ||||||
SunTrust Banks, Inc. | 325 | 20,368 | ||||||
T. Rowe Price Group, Inc. | 104 | 10,093 | ||||||
TD Ameritrade Holding Corp. | 36 | 1,865 | ||||||
TE Connectivity Ltd. | 120 | 9,029 | ||||||
Teleflex, Inc. | 3 | 727 | ||||||
Tesla, Inc. * | 16 | 5,525 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United States — continued |
| |||||||
Texas Instruments, Inc. | 299 | 27,778 | ||||||
Thermo Fisher Scientific, Inc. | 77 | 17,972 | ||||||
TJX Cos., Inc. (The) | 99 | 10,879 | ||||||
T-Mobile US, Inc. * | 220 | 15,088 | ||||||
Toll Brothers, Inc. | 26 | 887 | ||||||
Trimble, Inc. * | 17 | 646 | ||||||
Tyson Foods, Inc., Class A | 47 | 2,804 | ||||||
UGI Corp. | 14 | 760 | ||||||
Union Pacific Corp. | 233 | 34,082 | ||||||
United Continental Holdings, Inc. * | 9 | 751 | ||||||
United Rentals, Inc. * | 12 | 1,432 | ||||||
United Technologies Corp. | 184 | 22,909 | ||||||
UnitedHealth Group, Inc. | 215 | 56,317 | ||||||
Universal Health Services, Inc., Class B | 86 | 10,474 | ||||||
Unum Group | 16 | 592 | ||||||
Vail Resorts, Inc. | 3 | 789 | ||||||
Ventas, Inc., REIT | 145 | 8,418 | ||||||
VEREIT, Inc., REIT | 183 | 1,344 | ||||||
Verizon Communications, Inc. | 618 | 35,307 | ||||||
Vertex Pharmaceuticals, Inc. * | 82 | 13,938 | ||||||
Visa, Inc., Class A | 327 | 45,099 | ||||||
VMware, Inc., Class A * | 6 | 843 | ||||||
Vornado Realty Trust, REIT | 107 | 7,301 | ||||||
Voya Financial, Inc. | 29 | 1,269 | ||||||
Walmart, Inc. | 64 | 6,457 | ||||||
Walt Disney Co. (The) | 351 | 40,342 | ||||||
Waste Connections, Inc. | 42 | 3,209 | ||||||
WEC Energy Group, Inc. | 135 | 9,214 | ||||||
Wells Fargo & Co. | 762 | 40,549 | ||||||
WestRock Co. | 73 | 3,125 | ||||||
Weyerhaeuser Co., REIT | 69 | 1,836 | ||||||
Workday, Inc., Class A * | 62 | 8,209 | ||||||
Worldpay, Inc. * | 46 | 4,264 | ||||||
Xcel Energy, Inc. | 345 | 16,910 | ||||||
XPO Logistics, Inc. * | 10 | 909 | ||||||
Yum! Brands, Inc. | 168 | 15,181 | ||||||
Zimmer Biomet Holdings, Inc. | 139 | 15,782 | ||||||
Zoetis, Inc. | 30 | 2,664 | ||||||
|
| |||||||
3,599,415 | ||||||||
|
| |||||||
Total Common Stocks |
| 5,749,817 | ||||||
|
|
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 51 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
JPMorgan Global Research Enhanced Index Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | NO. OF RIGHTS (000) | VALUE ($000) | ||||||
Rights — 0.0% (a) |
| |||||||
Spain — 0.0% (a) |
| |||||||
Banco Santander SA, expiring 11/16/2018 * (Cost $104) | 2,666 | 104 | ||||||
|
| |||||||
Total Investments — 98.3% | 5,749,921 | |||||||
Other Assets Less Liabilities — 1.7% | 97,055 | |||||||
|
| |||||||
NET ASSETS — 100.0% | 5,846,976 | |||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 8.2 | % | ||
Pharmaceuticals | 6.4 | |||
Oil, Gas & Consumable Fuels | 6.2 | |||
Software | 4.7 | |||
IT Services | 3.7 | |||
Insurance | 3.7 | |||
Technology Hardware, Storage & Peripherals | 3.4 | |||
Semiconductors & Semiconductor Equipment | 2.9 | |||
Capital Markets | 2.9 | |||
Interactive Media & Services | 2.6 | |||
Specialty Retail | 2.6 | |||
Machinery | 2.6 | |||
Chemicals | 2.5 | |||
Internet & Direct Marketing Retail | 2.5 | |||
Beverages | 2.5 | |||
Health Care Providers & Services | 2.4 | |||
Health Care Equipment & Supplies | 2.3 | |||
Electric Utilities | 1.9 | |||
Equity Real Estate Investment Trusts (REITs) | 1.9 | |||
Diversified Telecommunication Services | 1.8 | |||
Aerospace & Defense | 1.7 | |||
Biotechnology | 1.6 | |||
Entertainment | 1.6 | |||
Road & Rail | 1.6 | |||
Food Products | 1.6 | |||
Media | 1.5 | |||
Metals & Mining | 1.4 | |||
Automobiles | 1.4 | |||
Hotels, Restaurants & Leisure | 1.3 | |||
Tobacco | 1.2 |
INDUSTRY | PERCENTAGE | |||
Industrial Conglomerates | 1.2 | % | ||
Textiles, Apparel & Luxury Goods | 1.2 | |||
Electrical Equipment | 1.1 | |||
Personal Products | 1.1 | |||
Multi-Utilities | 1.0 | |||
Others (each less than 1.0%) | 11.8 |
Abbreviations
ADR | American Depositary Receipt | |
CHDI | Clearing House Electronic Subregister System (CHESS) Depository Interest | |
CVA | Dutch Certification | |
OYJ | Public Limited Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
REIT | Real Estate Investment Trust | |
SCA | Limited partnership with share capital | |
(a) | Amount rounds to less than 0.1% of net assets. | |
(b) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(c) | Amount rounds to less than one thousand. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
52 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Futures contracts outstanding as of October 31, 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 | ||||||||||||||||||||
EURO STOXX 50 Index | 321 | 12/2018 | EUR | 11,569 | 175 | |||||||||||||||
FTSE 100 Index | 96 | 12/2018 | GBP | 8,695 | 169 | |||||||||||||||
S&P 500 E-Mini Index | 394 | 12/2018 | USD | 53,391 | (330 | ) | ||||||||||||||
TOPIX Index | 205 | 12/2018 | JPY | 29,750 | 914 | |||||||||||||||
|
| |||||||||||||||||||
928 | ||||||||||||||||||||
|
|
Abbreviations
EUR | Euro | |
FTSE | Financial Times and the London Stock Exchange | |
GBP | British Pound | |
JPY | Japanese Yen | |
TOPIX | Tokyo Stock Price Index | |
USD | United States Dollar |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 53 |
SEE NOTES TO FINANCIAL STATEMENTS.
Table of Contents
JPMorgan Global Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.3% |
| |||||||
Australia — 1.7% | ||||||||
BHP Billiton plc | 3 | 68 | ||||||
|
| |||||||
Austria — 2.4% | ||||||||
Erste Group Bank AG * | 2 | 96 | ||||||
|
| |||||||
Canada — 2.2% | ||||||||
Toronto-Dominion Bank (The) | 2 | 86 | ||||||
|
| |||||||
China — 5.0% | ||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 9 | 80 | ||||||
Tencent Holdings Ltd. | 3 | 117 | ||||||
|
| |||||||
197 | ||||||||
|
| |||||||
France — 4.2% | ||||||||
Airbus SE | 1 | 74 | ||||||
Safran SA | 1 | 92 | ||||||
|
| |||||||
166 | ||||||||
|
| |||||||
Germany — 1.3% | ||||||||
Delivery Hero SE * (a) | 1 | 50 | ||||||
|
| |||||||
Hong Kong — 1.7% | ||||||||
AIA Group Ltd. | 9 | 68 | ||||||
|
| |||||||
India — 3.7% | ||||||||
HDFC Bank Ltd., ADR | 2 | 146 | ||||||
|
| |||||||
Indonesia — 1.8% | ||||||||
Telekomunikasi Indonesia Persero Tbk. PT | 282 | 71 | ||||||
|
| |||||||
Japan — 4.9% | ||||||||
Keyence Corp. | — | (b) | 98 | |||||
SMC Corp. | — | (b) | 95 | |||||
|
| |||||||
193 | ||||||||
|
| |||||||
Singapore — 1.7% | ||||||||
DBS Group Holdings Ltd. | 4 | 66 | ||||||
|
| |||||||
Spain — 1.6% | ||||||||
Industria de Diseno Textil SA | 2 | 65 | ||||||
|
| |||||||
Switzerland — 7.0% | ||||||||
Nestle SA (Registered) | 2 | 133 | ||||||
Novartis AG (Registered) | 2 | 147 | ||||||
|
| |||||||
280 | ||||||||
|
| |||||||
United Kingdom — 4.0% | ||||||||
GlaxoSmithKline plc | 5 | 97 | ||||||
Linde plc | — | (b) | 64 | |||||
|
| |||||||
161 | ||||||||
|
| |||||||
United States — 54.1% | ||||||||
Activision Blizzard, Inc. | 1 | 64 | ||||||
Alphabet, Inc., Class C * | — | (b) | 192 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United States — continued | ||||||||
Amazon.com, Inc. * | — | (b) | 110 | |||||
BioMarin Pharmaceutical, Inc. * | 1 | 61 | ||||||
Coca-Cola Co. (The) | 3 | 126 | ||||||
Cognizant Technology Solutions Corp., Class A | 1 | 80 | ||||||
Comcast Corp., Class A | 2 | 81 | ||||||
DowDuPont, Inc. | 1 | 78 | ||||||
Exxon Mobil Corp. | 1 | 114 | ||||||
First Republic Bank | 1 | 102 | ||||||
Microsoft Corp. | 1 | 150 | ||||||
NIKE, Inc., Class B | 1 | 79 | ||||||
Northern Trust Corp. | 1 | 82 | ||||||
NVIDIA Corp. | — | (b) | 55 | |||||
Parsley Energy, Inc., Class A * | 2 | 50 | ||||||
Pioneer Natural Resources Co. | 1 | 76 | ||||||
Raytheon Co. | — | (b) | 82 | |||||
ServiceNow, Inc. * | — | (b) | 46 | |||||
Stanley Black & Decker, Inc. | 1 | 65 | ||||||
Twenty-First Century Fox, Inc., Class A | 1 | 32 | ||||||
Union Pacific Corp. | — | (b) | 60 | |||||
UnitedHealth Group, Inc. | 1 | 132 | ||||||
Universal Display Corp. | 1 | 63 | ||||||
Visa, Inc., Class A | 1 | 85 | ||||||
Willis Towers Watson plc | 1 | 84 | ||||||
|
| |||||||
2,149 | ||||||||
|
| |||||||
Total Common Stocks |
| 3,862 | ||||||
|
| |||||||
Total Investments — 97.3% |
| 3,862 | ||||||
Other Assets Less Liabilities — 2.7% |
| 107 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| 3,969 | ||||||
|
|
Percentages indicated are based on net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
54 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 12.9 | % | ||
Interactive Media & Services | 8.0 | |||
Aerospace & Defense | 6.4 | |||
Pharmaceuticals | 6.3 | |||
Oil, Gas & Consumable Fuels | 6.2 | |||
Insurance | 6.0 | |||
Software | 5.1 | |||
IT Services | 4.3 | |||
Machinery | 4.2 | |||
Internet & Direct Marketing Retail | 4.1 | |||
Chemicals | 3.7 | |||
Food Products | 3.4 | |||
Health Care Providers & Services | 3.4 | |||
Beverages | 3.3 | |||
Semiconductors & Semiconductor Equipment | 3.1 | |||
Electronic Equipment, Instruments & Components | 2.5 | |||
Entertainment | 2.5 | |||
Capital Markets | 2.1 | |||
Media | 2.1 | |||
Textiles, Apparel & Luxury Goods | 2.0 | |||
Diversified Telecommunication Services | 1.8 | |||
Metals & Mining | 1.8 | |||
Specialty Retail | 1.7 | |||
Biotechnology | 1.6 | |||
Road & Rail | 1.5 |
Abbreviations
ADR | American Depositary Receipt | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(b) | Amount rounds to less than one thousand. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 55 |
Table of Contents
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 97.4% |
| |||||||
Australia — 7.2% | ||||||||
Aristocrat Leisure Ltd. | 920 | 17,336 | ||||||
BlueScope Steel Ltd. | 2,106 | 21,589 | ||||||
CIMIC Group Ltd. | 352 | 11,810 | ||||||
Computershare Ltd. | 1,348 | 18,930 | ||||||
Macquarie Group Ltd. | 436 | 36,379 | ||||||
Metcash Ltd. | 3,184 | 6,223 | ||||||
Nine Entertainment Co. Holdings Ltd. | 2,958 | 3,552 | ||||||
Qantas Airways Ltd. | 5,455 | 21,176 | ||||||
Regis Resources Ltd. | 1,969 | 5,907 | ||||||
Rio Tinto plc | 953 | 46,274 | ||||||
South32 Ltd. | 12,174 | 31,400 | ||||||
St Barbara Ltd. | 1,789 | 5,280 | ||||||
Whitehaven Coal Ltd. | 5,495 | 18,982 | ||||||
|
| |||||||
244,838 | ||||||||
|
| |||||||
Austria — 0.8% | ||||||||
OMV AG | 413 | 22,942 | ||||||
Verbund AG | 95 | 3,844 | ||||||
|
| |||||||
26,786 | ||||||||
|
| |||||||
Belgium — 2.2% | ||||||||
Ageas | 586 | 29,335 | ||||||
KBC Group NV | 298 | 20,568 | ||||||
UCB SA | 309 | 25,940 | ||||||
|
| |||||||
75,843 | ||||||||
|
| |||||||
China — 0.6% | ||||||||
BOC Hong Kong Holdings Ltd. | 5,880 | 22,011 | ||||||
|
| |||||||
Denmark — 2.4% | ||||||||
Dfds A/S | 112 | 4,782 | ||||||
Jyske Bank A/S (Registered) | 228 | 9,312 | ||||||
Novo Nordisk A/S, Class B | 983 | 42,442 | ||||||
Royal Unibrew A/S | 168 | 11,900 | ||||||
Topdanmark A/S | 140 | 6,651 | ||||||
William Demant Holding A/S * | 205 | 6,747 | ||||||
|
| |||||||
81,834 | ||||||||
|
| |||||||
Finland — 2.8% | ||||||||
Neste OYJ | 410 | 33,683 | ||||||
Sampo OYJ, Class A | 269 | 12,385 | ||||||
Stora Enso OYJ, Class R | 1,095 | 16,455 | ||||||
UPM-Kymmene OYJ | 977 | 31,422 | ||||||
|
| |||||||
93,945 | ||||||||
|
| |||||||
France — 7.1% | ||||||||
Arkema SA | 107 | 11,195 | ||||||
Capgemini SE | 269 | 32,902 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
France — continued | ||||||||
Cie Plastic Omnium SA | 75 | 2,086 | ||||||
Dassault Aviation SA | 7 | 11,567 | ||||||
Eiffage SA | 212 | 20,695 | ||||||
Faurecia SA | 177 | 8,594 | ||||||
Kering SA | 78 | 34,649 | ||||||
L’Oreal SA | 88 | 19,812 | ||||||
Peugeot SA | 1,179 | 28,031 | ||||||
Sanofi | 76 | 6,777 | ||||||
Sopra Steria Group | 19 | 2,083 | ||||||
Thales SA | 228 | 29,159 | ||||||
TOTAL SA | 230 | 13,511 | ||||||
Vinci SA | 225 | 20,017 | ||||||
|
| |||||||
241,078 | ||||||||
|
| |||||||
Germany — 6.0% | ||||||||
Aareal Bank AG | 317 | 11,795 | ||||||
Allianz SE (Registered) | 238 | 49,599 | ||||||
Aroundtown SA | 1,003 | 8,310 | ||||||
CANCOM SE | 216 | 8,805 | ||||||
Covestro AG (a) | 351 | 22,629 | ||||||
Deutsche Lufthansa AG (Registered) | 780 | 15,648 | ||||||
Evonik Industries AG | 334 | 10,343 | ||||||
Gerresheimer AG | 49 | 3,474 | ||||||
Hannover Rueck SE | 17 | 2,307 | ||||||
HUGO BOSS AG | 248 | 17,747 | ||||||
Jenoptik AG | 191 | 5,775 | ||||||
RWE AG | 1,203 | 23,402 | ||||||
Siltronic AG | 175 | 16,006 | ||||||
Software AG | 150 | 6,722 | ||||||
Stabilus SA | 37 | 2,450 | ||||||
|
| |||||||
205,012 | ||||||||
|
| |||||||
Hong Kong — 1.5% | ||||||||
CLP Holdings Ltd. | 2,522 | 28,255 | ||||||
Hang Seng Bank Ltd. | 822 | 19,272 | ||||||
Kerry Properties Ltd. | 883 | 2,778 | ||||||
|
| |||||||
50,305 | ||||||||
|
| |||||||
Ireland — 0.6% | ||||||||
AerCap Holdings NV * | 444 | 22,217 | ||||||
|
| |||||||
Israel — 0.4% | ||||||||
Israel Discount Bank Ltd., Class A | 2,157 | 7,047 | ||||||
Plus500 Ltd. | 430 | 7,426 | ||||||
|
| |||||||
14,473 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
56 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Italy — 1.6% | ||||||||
A2A SpA | 8,198 | 13,210 | ||||||
Eni SpA | 2,028 | 36,022 | ||||||
ERG SpA | 258 | 4,820 | ||||||
|
| |||||||
54,052 | ||||||||
|
| |||||||
Japan — 23.9% | ||||||||
Alfresa Holdings Corp. | 260 | 6,929 | ||||||
Asahi Kasei Corp. | 905 | 10,862 | ||||||
Astellas Pharma, Inc. | 1,518 | 23,449 | ||||||
Bridgestone Corp. | 426 | 16,442 | ||||||
Brother Industries Ltd. | 672 | 12,304 | ||||||
Capcom Co. Ltd. | 559 | 11,652 | ||||||
Central Japan Railway Co. | 116 | 22,261 | ||||||
Cosmo Energy Holdings Co. Ltd. | 139 | 5,109 | ||||||
FCC Co. Ltd. | 72 | 1,786 | ||||||
Fuji Electric Co. Ltd. | 389 | 11,862 | ||||||
FUJIFILM Holdings Corp. | 461 | 19,947 | ||||||
Fujitsu Ltd. | 238 | 14,492 | ||||||
Haseko Corp. | 644 | 8,154 | ||||||
Hitachi Ltd. | 681 | 20,831 | ||||||
Idemitsu Kosan Co. Ltd. | 310 | 14,039 | ||||||
ITOCHU Corp. | 1,232 | 22,845 | ||||||
Japan Aviation Electronics Industry Ltd. | 208 | 2,754 | ||||||
JXTG Holdings, Inc. | 2,975 | 20,099 | ||||||
Kaken Pharmaceutical Co. Ltd. | 53 | 2,637 | ||||||
Kansai Electric Power Co., Inc. (The) | 1,076 | 16,463 | ||||||
KDDI Corp. | 966 | 23,377 | ||||||
KH Neochem Co. Ltd. | 162 | 4,587 | ||||||
Kirin Holdings Co. Ltd. | 869 | 20,725 | ||||||
Koito Manufacturing Co. Ltd. | 206 | 9,783 | ||||||
K’s Holdings Corp. | 512 | 6,471 | ||||||
Kumagai Gumi Co. Ltd. | 83 | 2,178 | ||||||
Kyowa Exeo Corp. | 205 | 5,512 | ||||||
Marubeni Corp. | 2,411 | 19,553 | ||||||
Medipal Holdings Corp. | 170 | 3,639 | ||||||
Mitsubishi Chemical Holdings Corp. | 1,274 | 9,931 | ||||||
Mitsubishi Corp. | 659 | 18,553 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 346 | 5,805 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 4,201 | 25,425 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 880 | 4,524 | ||||||
Mitsui & Co. Ltd. | 1,191 | 19,897 | ||||||
Nihon Unisys Ltd. | 172 | 3,778 | ||||||
Nippon Telegraph & Telephone Corp. | 491 | 20,228 | ||||||
Nomura Real Estate Holdings, Inc. | 384 | 7,208 | ||||||
NTT DOCOMO, Inc. | 919 | 22,790 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Japan — continued | ||||||||
Oji Holdings Corp. | 1,752 | 12,441 | ||||||
Open House Co. Ltd. | 181 | 7,138 | ||||||
ORIX Corp. | 1,048 | 17,065 | ||||||
Sankyu, Inc. | 101 | 4,770 | ||||||
SBI Holdings, Inc. | 355 | 9,268 | ||||||
Shimizu Corp. | 1,462 | 11,866 | ||||||
Ship Healthcare Holdings, Inc. | 62 | 2,249 | ||||||
Showa Shell Sekiyu KK | 819 | 15,632 | ||||||
SoftBank Group Corp. | 38 | 3,007 | ||||||
Sojitz Corp. | 1,950 | 6,558 | ||||||
Sompo Holdings, Inc. | 386 | 15,917 | ||||||
Sony Corp. | 612 | 33,092 | ||||||
Sumitomo Bakelite Co. Ltd. | 104 | 3,755 | ||||||
Sumitomo Corp. | 1,150 | 17,440 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 245 | 5,119 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 675 | 26,285 | ||||||
Suzuki Motor Corp. | 81 | 4,054 | ||||||
Taisei Corp. | 374 | 16,008 | ||||||
Tokai Carbon Co. Ltd. | 829 | 12,978 | ||||||
Tokai Tokyo Financial Holdings, Inc. | 492 | 2,538 | ||||||
Tokuyama Corp. | 242 | 5,416 | ||||||
Tokyo Electron Ltd. | 63 | 8,502 | ||||||
Tokyu Fudosan Holdings Corp. | 621 | 3,499 | ||||||
Toyota Boshoku Corp. | 255 | 4,259 | ||||||
Toyota Motor Corp. | 841 | 49,243 | ||||||
TS Tech Co. Ltd. | 201 | 5,796 | ||||||
Ube Industries Ltd. | 50 | 1,091 | ||||||
Unicharm Corp. | 200 | 5,437 | ||||||
V Technology Co. Ltd. | 21 | 2,761 | ||||||
|
| |||||||
812,065 | ||||||||
|
| |||||||
Luxembourg — 1.0% | ||||||||
ArcelorMittal | 980 | 24,462 | ||||||
SES SA, FDR | 405 | 8,713 | ||||||
|
| |||||||
33,175 | ||||||||
|
| |||||||
Macau — 0.7% | ||||||||
Sands China Ltd. | 5,858 | 23,167 | ||||||
|
| |||||||
Netherlands — 6.7% | ||||||||
ABN AMRO Group NV, CVA (a) | 1,029 | 25,243 | ||||||
ASR Nederland NV | 632 | 28,705 | ||||||
Euronext NV (a) | 206 | 12,646 | ||||||
EXOR NV | 266 | 15,016 | ||||||
Flow Traders (a) | 122 | 3,884 | ||||||
Intertrust NV (a) | 152 | 2,456 | ||||||
Koninklijke Ahold Delhaize NV | 1,534 | 35,104 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 57 |
Table of Contents
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Netherlands — continued | ||||||||
NN Group NV | 197 | 8,459 | ||||||
Royal Dutch Shell plc, Class B | 1,986 | 64,766 | ||||||
Wolters Kluwer NV | 532 | 30,170 | ||||||
|
| |||||||
226,449 | ||||||||
|
| |||||||
Norway — 3.1% | ||||||||
Austevoll Seafood ASA | 287 | 4,616 | ||||||
DNB ASA | 752 | 13,593 | ||||||
Leroy Seafood Group ASA | 835 | 7,701 | ||||||
Marine Harvest ASA | 1,470 | 35,578 | ||||||
Salmar ASA | 306 | 16,150 | ||||||
Telenor ASA | 1,593 | 29,208 | ||||||
|
| |||||||
106,846 | ||||||||
|
| |||||||
Portugal — 0.4% | ||||||||
Galp Energia SGPS SA | 838 | 14,563 | ||||||
|
| |||||||
Russia — 0.2% | ||||||||
Evraz plc | 1,217 | 8,431 | ||||||
|
| |||||||
Singapore — 2.7% | ||||||||
DBS Group Holdings Ltd. | 2,011 | 34,125 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 4,044 | 31,413 | ||||||
United Overseas Bank Ltd. | 1,504 | 26,588 | ||||||
|
| |||||||
92,126 | ||||||||
|
| |||||||
South Africa — 0.2% | ||||||||
Anglo American plc | 315 | 6,723 | ||||||
|
| |||||||
Spain — 2.5% | ||||||||
ACS Actividades de Construccion y Servicios SA | 687 | 25,706 | ||||||
Amadeus IT Group SA | 246 | 19,770 | ||||||
Cia de Distribucion Integral Logista Holdings SA | 102 | 2,457 | ||||||
Endesa SA | 1,267 | 26,491 | ||||||
Repsol SA | 623 | 11,141 | ||||||
|
| |||||||
85,565 | ||||||||
|
| |||||||
Sweden — 3.2% | ||||||||
Fabege AB | 1,036 | 13,230 | ||||||
Hemfosa Fastigheter AB | 104 | 1,289 | ||||||
Nolato AB, Class B | 57 | 2,642 | ||||||
Sandvik AB | 1,794 | 28,354 | ||||||
Swedish Match AB | 618 | 31,497 | ||||||
Tele2 AB, Class B | 728 | 8,266 | ||||||
Volvo AB, Class B | 1,477 | 22,065 | ||||||
|
| |||||||
107,343 | ||||||||
|
| |||||||
Switzerland — 8.3% | ||||||||
Adecco Group AG (Registered) | 338 | 16,555 | ||||||
Galenica AG *(a) | 81 | 4,354 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Switzerland — continued |
| |||||||
Georg Fischer AG (Registered) | 11 | 10,253 | ||||||
Julius Baer Group Ltd. * | 157 | 7,149 | ||||||
Logitech International SA (Registered) | 495 | 18,336 | ||||||
Nestle SA (Registered) | 415 | 35,015 | ||||||
Novartis AG (Registered) | 884 | 77,454 | ||||||
Oriflame Holding AG | 98 | 2,321 | ||||||
Partners Group Holding AG | 39 | 27,568 | ||||||
Roche Holding AG | 294 | 71,462 | ||||||
Sunrise Communications Group AG * (a) | 94 | 8,246 | ||||||
Swatch Group AG (The) | 16 | 5,258 | ||||||
|
| |||||||
283,971 | ||||||||
|
| |||||||
United Kingdom — 11.3% | ||||||||
3i Group plc | 2,060 | 23,067 | ||||||
Ashtead Group plc | 255 | 6,302 | ||||||
Barratt Developments plc | 3,224 | 21,148 | ||||||
Berkeley Group Holdings plc | 288 | 12,887 | ||||||
Bovis Homes Group plc | 401 | 4,956 | ||||||
BP plc | 577 | 4,167 | ||||||
Computacenter plc | 180 | 2,529 | ||||||
Diageo plc | 186 | 6,415 | ||||||
Fiat Chrysler Automobiles NV * | 1,558 | 23,712 | ||||||
GlaxoSmithKline plc | 2,547 | 49,339 | ||||||
Howden Joinery Group plc | 1,384 | 8,289 | ||||||
HSBC Holdings plc | 1,897 | 15,612 | ||||||
IG Group Holdings plc | 590 | 4,559 | ||||||
Imperial Brands plc | 318 | 10,756 | ||||||
International Consolidated Airlines Group SA | 3,214 | 24,776 | ||||||
J D Wetherspoon plc | 68 | 1,068 | ||||||
Legal & General Group plc | 9,082 | 29,143 | ||||||
National Express Group plc | 332 | 1,696 | ||||||
Next plc | 397 | 26,372 | ||||||
Pearson plc | 2,663 | 30,589 | ||||||
Persimmon plc | 896 | 26,213 | ||||||
Redrow plc | 2,216 | 14,964 | ||||||
Tesco plc | 11,342 | 30,890 | ||||||
Unilever plc | 107 | 5,646 | ||||||
|
| |||||||
385,095 | ||||||||
|
| |||||||
Total Common Stocks |
| 3,317,913 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
58 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 1.6% | ||||||||
Investment Companies — 1.6% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02% (b) (c) | 52,914 | 52,914 | ||||||
|
| |||||||
Total Investments — 99.0% |
| 3,370,827 | ||||||
Other Assets Less Liabilities — 1.0% |
| 32,429 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| 3,403,256 | ||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Pharmaceuticals | 9.2 | % | ||
Banks | 8.2 | |||
Oil, Gas & Consumable Fuels | 8.1 | |||
Insurance | 5.4 | |||
Metals & Mining | 4.4 | |||
Trading Companies & Distributors | 4.2 | |||
Capital Markets | 3.8 | |||
Household Durables | 3.6 | |||
Construction & Engineering | 3.4 | |||
Automobiles | 3.1 | |||
IT Services | 3.1 | |||
Food Products | 2.9 | |||
Chemicals | 2.9 | |||
Electric Utilities | 2.2 | |||
Food & Staples Retailing | 2.1 | |||
Machinery | 1.9 | |||
Airlines | 1.8 | |||
Paper & Forest Products | 1.8 | |||
Diversified Telecommunication Services | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.7 | |||
Wireless Telecommunication Services | 1.7 | |||
Technology Hardware, Storage & Peripherals | 1.5 | |||
Professional Services | 1.5 | |||
Auto Components | 1.4 | |||
Diversified Financial Services | 1.3 | |||
Real Estate Management & Development | 1.3 | |||
Media | 1.3 | |||
Tobacco | 1.3 | |||
Hotels, Restaurants & Leisure | 1.2 | |||
Aerospace & Defense | 1.2 |
INDUSTRY | PERCENTAGE | |||
Beverages | 1.2 | % | ||
Multi-Utilities | 1.1 | |||
Electronic Equipment, Instruments & Components | 1.0 | |||
Others (each less than 1.0%) | 5.9 | |||
Short-Term Investments | 1.6 |
Abbreviations
CVA | Dutch Certification | |
FDR | Finnish Depository Receipt | |
OYJ | Public Limited Company | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(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 October 31, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 59 |
Table of Contents
JPMorgan International Advantage Fund
(formerly known as JPMorgan Intrepid International Fund)
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
Futures contracts outstanding as of October 31, 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 |
| |||||||||||||||||||
EURO STOXX 50 Index | 343 | 12/2018 | EUR | 12,362 | (516 | ) | ||||||||||||||
FTSE 100 Index | 124 | 12/2018 | GBP | 11,230 | (255 | ) | ||||||||||||||
TOPIX Index | 24 | 12/2018 | JPY | 3,483 | (81 | ) | ||||||||||||||
|
| |||||||||||||||||||
(852 | ) | |||||||||||||||||||
|
|
Abbreviations
EUR | Euro | |
FTSE | Financial Times and the London Stock Exchange | |
GBP | British Pound | |
JPY | Japanese Yen | |
TOPIX | Tokyo Stock Price Index |
SEE NOTES TO FINANCIAL STATEMENTS.
60 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 96.0% |
| |||||||
Australia — 1.7% | ||||||||
BHP Billiton Ltd. | 1,798 | 41,488 | ||||||
BHP Billiton plc | 1,643 | 32,785 | ||||||
|
| |||||||
74,273 | ||||||||
|
| |||||||
Austria — 0.8% |
| |||||||
ams AG * | 336 | 13,089 | ||||||
Erste Group Bank AG * | 558 | 22,705 | ||||||
|
| |||||||
35,794 | ||||||||
|
| |||||||
Brazil — 0.9% | ||||||||
Itau Unibanco Holding SA, ADR | 2,804 | 36,923 | ||||||
|
| |||||||
China — 2.2% | ||||||||
China Overseas Land & Investment Ltd. | 9,352 | 29,401 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 4,638 | 43,843 | ||||||
Tencent Holdings Ltd. | 549 | 18,805 | ||||||
|
| |||||||
92,049 | ||||||||
|
| |||||||
Denmark — 1.3% | ||||||||
Novo Nordisk A/S, Class B | 1,310 | �� | 56,579 | |||||
|
| |||||||
France — 14.4% | ||||||||
Accor SA | 1,022 | 46,693 | ||||||
Airbus SE | 451 | 49,806 | ||||||
AXA SA | 1,494 | 37,389 | ||||||
BNP Paribas SA | 893 | 46,515 | ||||||
Capgemini SE | 293 | 35,718 | ||||||
EssilorLuxottica SA | 275 | 37,512 | ||||||
Imerys SA | 339 | 20,923 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 200 | 60,713 | ||||||
Orange SA | 3,810 | 59,461 | ||||||
Pernod Ricard SA | 314 | 47,841 | ||||||
Safran SA | 456 | 58,986 | ||||||
Schneider Electric SE | 545 | 39,428 | ||||||
TOTAL SA | 1,286 | 75,442 | ||||||
|
| |||||||
616,427 | ||||||||
|
| |||||||
Germany — 7.3% | ||||||||
Allianz SE (Registered) | 332 | 69,139 | ||||||
Bayer AG (Registered) | 589 | 45,122 | ||||||
Continental AG | 288 | 47,377 | ||||||
Deutsche Boerse AG | 271 | 34,248 | ||||||
Fresenius Medical Care AG & Co. KGaA | 406 | 31,846 | ||||||
SAP SE | 785 | 84,021 | ||||||
|
| |||||||
311,753 | ||||||||
|
| |||||||
Hong Kong — 2.9% | ||||||||
AIA Group Ltd. | 11,439 | 87,017 | ||||||
CK Asset Holdings Ltd. | 5,953 | 38,737 | ||||||
|
| |||||||
125,754 | ||||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
India — 1.2% | ||||||||
HDFC Bank Ltd., ADR | 594 | 52,825 | ||||||
|
| |||||||
Japan — 16.8% | ||||||||
Asahi Group Holdings Ltd. | 1,023 | 44,956 | ||||||
Daikin Industries Ltd. | 421 | 48,764 | ||||||
FANUC Corp. | 277 | 48,154 | ||||||
Honda Motor Co. Ltd. | 2,187 | 62,438 | ||||||
Keyence Corp. | 106 | 51,978 | ||||||
Komatsu Ltd. | 1,775 | 46,236 | ||||||
Kubota Corp. | 3,787 | 59,783 | ||||||
Makita Corp. | 1,073 | 37,086 | ||||||
Mitsui Fudosan Co. Ltd. | 1,704 | 38,387 | ||||||
Nidec Corp. | 347 | 44,622 | ||||||
Nitto Denko Corp. | 426 | 26,627 | ||||||
Shin-Etsu Chemical Co. Ltd. | 580 | 48,423 | ||||||
SMC Corp. | 140 | 44,559 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 1,946 | 75,756 | ||||||
Tokyo Electron Ltd. | 302 | 40,781 | ||||||
|
| |||||||
718,550 | ||||||||
|
| |||||||
Macau — 0.7% | ||||||||
Sands China Ltd. | 7,362 | 29,112 | ||||||
| �� | |||||||
Netherlands — 6.4% | ||||||||
ASML Holding NV | 457 | 78,650 | ||||||
ING Groep NV | 4,328 | 51,204 | ||||||
Royal Dutch Shell plc, Class A | 4,503 | 143,457 | ||||||
|
| |||||||
273,311 | ||||||||
|
| |||||||
Singapore — 1.2% | ||||||||
DBS Group Holdings Ltd. | 3,144 | 53,342 | ||||||
|
| |||||||
South Africa — 0.3% | ||||||||
Naspers Ltd., Class N | 62 | 10,880 | ||||||
|
| |||||||
South Korea — 1.4% | ||||||||
Samsung Electronics Co. Ltd., GDR (a) | 59 | 55,568 | ||||||
Samsung Electronics Co. Ltd., GDR (b) | 3 | 2,415 | ||||||
|
| |||||||
57,983 | ||||||||
|
| |||||||
Spain — 1.1% | ||||||||
Industria de Diseno Textil SA | 1,658 | 46,732 | ||||||
|
| |||||||
Sweden — 1.2% | ||||||||
Atlas Copco AB, Class A * | 1,343 | 33,205 | ||||||
Epiroc AB, Class A * | 1,814 | 15,927 | ||||||
|
| |||||||
49,132 | ||||||||
|
| |||||||
Switzerland — 13.7% | ||||||||
ABB Ltd. (Registered) | 1,735 | 34,908 | ||||||
Cie Financiere Richemont SA (Registered) | 723 | 52,825 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 61 |
Table of Contents
JPMorgan International Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Switzerland — continued |
| |||||||
Glencore plc * | 11,359 | 46,227 | ||||||
LafargeHolcim Ltd. (Registered) * | 386 | 17,784 | ||||||
LafargeHolcim Ltd. (Registered) * | 374 | 17,326 | ||||||
Nestle SA (Registered) | 1,757 | 148,365 | ||||||
Novartis AG (Registered) | 1,367 | 119,730 | ||||||
Roche Holding AG | 383 | 93,214 | ||||||
UBS Group AG (Registered) * | 3,857 | 53,907 | ||||||
|
| |||||||
584,286 | ||||||||
|
| |||||||
Taiwan — 0.9% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,045 | 39,802 | ||||||
|
| |||||||
United Kingdom — 18.6% | ||||||||
Aviva plc | 8,285 | 45,278 | ||||||
British American Tobacco plc | 1,269 | 55,017 | ||||||
Burberry Group plc | 2,085 | 48,250 | ||||||
Diageo plc | 2,283 | 78,935 | ||||||
GlaxoSmithKline plc | 4,300 | 83,281 | ||||||
Linde plc | 457 | 74,977 | ||||||
London Stock Exchange Group plc | 584 | 32,187 | ||||||
Meggitt plc | 3,878 | 26,237 | ||||||
Persimmon plc | 843 | 24,665 | ||||||
Prudential plc | 2,926 | 58,584 | ||||||
RELX plc | 2,572 | 50,900 | ||||||
Standard Chartered plc | 5,668 | 39,728 | ||||||
Unilever plc | 1,885 | 99,838 | ||||||
Vodafone Group plc | 20,074 | 37,750 | ||||||
WPP plc | 3,272 | 37,029 | ||||||
|
| |||||||
792,656 | ||||||||
|
| |||||||
United States — 1.0% | ||||||||
Ferguson plc | 604 | 40,690 | ||||||
|
| |||||||
Total Common Stocks |
| 4,098,853 | ||||||
|
| |||||||
Short-Term Investments — 3.9% | ||||||||
Investment Companies — 3.9% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, | 166,797 | 166,797 | ||||||
|
| |||||||
Total Investments — 99.9% |
| 4,265,650 | ||||||
Other Assets Less Liabilities — 0.1% |
| 3,444 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| 4,269,094 | ||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Pharmaceuticals | 9.3 | % | ||
Banks | 8.9 | |||
Insurance | 8.0 | |||
Machinery | 6.7 | |||
Oil, Gas & Consumable Fuels | 5.1 | |||
Semiconductors & Semiconductor Equipment | 4.0 | |||
Beverages | 4.0 | |||
Textiles, Apparel & Luxury Goods | 3.8 | |||
Chemicals | 3.5 | |||
Food Products | 3.5 | |||
Aerospace & Defense | 3.2 | |||
Metals & Mining | 2.8 | |||
Capital Markets | 2.8 | |||
Electrical Equipment | 2.8 | |||
Real Estate Management & Development | 2.5 | |||
Personal Products | 2.3 | |||
Software | 2.0 | |||
Hotels, Restaurants & Leisure | 1.8 | |||
Automobiles | 1.5 | |||
Diversified Telecommunication Services | 1.4 | |||
Technology Hardware, Storage & Peripherals | 1.4 | |||
Construction Materials | 1.3 | |||
Tobacco | 1.3 | |||
Electronic Equipment, Instruments & Components | 1.2 | |||
Professional Services | 1.2 | |||
Building Products | 1.1 | |||
Media | 1.1 | |||
Auto Components | 1.1 | |||
Specialty Retail | 1.1 | |||
Trading Companies & Distributors | 1.0 | |||
Others (each less than 1.0%) | 4.4 | |||
Short-Term Investments | 3.9 |
SEE NOTES TO FINANCIAL STATEMENTS.
62 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Abbreviations
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(b) | Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. Under |
procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. | ||
(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 October 31, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 63 |
Table of Contents
JPMorgan International Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.3% |
| |||||||
Australia — 6.9% | ||||||||
Australia & New Zealand Banking Group Ltd. | 109 | 2,008 | ||||||
BHP Billiton plc | 86 | 1,716 | ||||||
Goodman Group, REIT | 122 | 894 | ||||||
Rio Tinto plc | 77 | 3,723 | ||||||
Transurban Group | 172 | 1,381 | ||||||
|
| |||||||
9,722 | ||||||||
|
| |||||||
Austria — 0.9% | ||||||||
Erste Group Bank AG * | 33 | 1,331 | ||||||
|
| |||||||
Canada — 1.2% | ||||||||
TransCanada Corp. | 44 | 1,650 | ||||||
|
| |||||||
China — 0.7% | ||||||||
China Construction Bank Corp., Class H | 1,216 | 965 | ||||||
|
| |||||||
Denmark — 2.8% | ||||||||
Novo Nordisk A/S, Class B | 92 | 3,980 | ||||||
|
| |||||||
Finland — 2.3% | ||||||||
Nordea Bank AB | 267 | 2,317 | ||||||
UPM-Kymmene OYJ | 27 | 872 | ||||||
|
| |||||||
3,189 | ||||||||
|
| |||||||
France — 13.8% | ||||||||
Accor SA | 31 | 1,430 | ||||||
Airbus SE | 22 | 2,411 | ||||||
BNP Paribas SA | 39 | 2,035 | ||||||
Capgemini SE | 9 | 1,102 | ||||||
Eutelsat Communications SA | 27 | 549 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 8 | 2,321 | ||||||
Orange SA | 81 | 1,271 | ||||||
Renault SA | 15 | 1,104 | ||||||
TOTAL SA | 52 | 3,039 | ||||||
Unibail-Rodamco-Westfield, REIT | 7 | 1,263 | ||||||
Vinci SA | 34 | 3,070 | ||||||
|
| |||||||
19,595 | ||||||||
|
| |||||||
Germany — 5.7% | ||||||||
Allianz SE (Registered) | 5 | 1,058 | ||||||
Daimler AG (Registered) | 21 | 1,229 | ||||||
Deutsche Boerse AG | 12 | 1,455 | ||||||
Deutsche Post AG (Registered) | 49 | 1,562 | ||||||
Infineon Technologies AG | 34 | 684 | ||||||
Volkswagen AG (Preference) | 13 | 2,151 | ||||||
|
| |||||||
8,139 | ||||||||
|
| |||||||
Hong Kong — 1.1% | ||||||||
HKT Trust & HKT Ltd. | 1,171 | 1,615 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Italy — 1.3% | ||||||||
Enel SpA | 389 | 1,908 | ||||||
|
| |||||||
Japan — 17.3% | ||||||||
Amada Holdings Co. Ltd. | 148 | 1,397 | ||||||
Bandai Namco Holdings, Inc. | 35 | 1,231 | ||||||
Bridgestone Corp. | 46 | 1,778 | ||||||
Japan Airlines Co. Ltd. | 45 | 1,593 | ||||||
JXTG Holdings, Inc. | 250 | 1,686 | ||||||
Marui Group Co. Ltd. | 56 | 1,204 | ||||||
Mitsubishi Corp. | 95 | 2,677 | ||||||
Mitsui & Co. Ltd. | 74 | 1,230 | ||||||
Nippon Telegraph & Telephone Corp. | 31 | 1,270 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 64 | 2,480 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 31 | 1,236 | ||||||
Tokio Marine Holdings, Inc. | 55 | 2,601 | ||||||
Toyota Motor Corp. | 44 | 2,601 | ||||||
Trend Micro, Inc. | 25 | 1,433 | ||||||
|
| |||||||
24,417 | ||||||||
|
| |||||||
Macau — 0.5% | ||||||||
Sands China Ltd. | 166 | 658 | ||||||
|
| |||||||
Netherlands — 6.9% | ||||||||
ASML Holding NV | 8 | 1,322 | ||||||
Koninklijke Ahold Delhaize NV | 97 | 2,214 | ||||||
NN Group NV | 38 | 1,617 | ||||||
Royal Dutch Shell plc, Class A | 146 | 4,659 | ||||||
|
| |||||||
9,812 | ||||||||
|
| |||||||
Norway — 1.2% | ||||||||
Telenor ASA | 89 | 1,635 | ||||||
|
| |||||||
Singapore — 1.2% | ||||||||
DBS Group Holdings Ltd. | 98 | 1,656 | ||||||
|
| |||||||
South Korea — 0.9% | ||||||||
Samsung Electronics Co. Ltd. | 34 | 1,288 | ||||||
|
| |||||||
Spain — 1.2% | ||||||||
Iberdrola SA | 246 | 1,741 | ||||||
|
| |||||||
Sweden — 1.0% | ||||||||
Svenska Handelsbanken AB, Class A | 135 | 1,463 | ||||||
|
| |||||||
Switzerland — 12.3% | ||||||||
Glencore plc * | 640 | 2,606 | ||||||
Nestle SA (Registered) | 34 | 2,862 | ||||||
Novartis AG (Registered) | 48 | 4,233 | ||||||
Roche Holding AG | 15 | 3,606 |
SEE NOTES TO FINANCIAL STATEMENTS.
64 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Switzerland — continued | ||||||||
Swiss Re AG | 27 | 2,456 | ||||||
Zurich Insurance Group AG * | 5 | 1,596 | ||||||
|
| |||||||
17,359 | ||||||||
|
| |||||||
Taiwan — 1.4% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 51 | 1,938 | ||||||
|
| |||||||
United Kingdom — 15.6% | ||||||||
3i Group plc | 100 | 1,114 | ||||||
AstraZeneca plc | 22 | 1,645 | ||||||
Aviva plc | 148 | 807 | ||||||
Diageo plc | 69 | 2,393 | ||||||
GlaxoSmithKline plc | 132 | 2,548 | ||||||
HSBC Holdings plc | 301 | 2,476 | ||||||
Imperial Brands plc | 98 | 3,329 | ||||||
Prudential plc | 92 | 1,852 | ||||||
Taylor Wimpey plc | 1,027 | 2,114 | ||||||
Unilever NV, CVA | 70 | 3,759 | ||||||
|
| |||||||
22,037 | ||||||||
|
| |||||||
United States — 2.1% | ||||||||
Carnival plc | 20 | 1,067 | ||||||
Ferguson plc | 28 | 1,868 | ||||||
|
| |||||||
2,935 | ||||||||
|
| |||||||
Total Common Stocks |
| 139,033 | ||||||
|
| |||||||
Total Investments — 98.3% |
| 139,033 | ||||||
Other Assets Less Liabilities — 1.7% |
| 2,418 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| 141,451 | ||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 12.9 | % | ||
Pharmaceuticals | 11.5 | |||
Insurance | 8.6 | |||
Oil, Gas & Consumable Fuels | 7.9 | |||
Metals & Mining | 5.8 | |||
Automobiles | 5.1 | |||
Diversified Telecommunication Services | 4.2 | |||
Trading Companies & Distributors | 4.2 | |||
Semiconductors & Semiconductor Equipment | 2.8 | |||
Personal Products | 2.7 | |||
Electric Utilities | 2.6 | |||
Tobacco | 2.4 | |||
Hotels, Restaurants & Leisure | 2.3 | |||
Construction & Engineering | 2.2 | |||
Food Products | 2.1 | |||
Capital Markets | 1.9 | |||
Aerospace & Defense | 1.7 | |||
Beverages | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.7 | |||
Food & Staples Retailing | 1.6 | |||
Equity Real Estate Investment Trusts (REITs) | 1.6 | |||
Household Durables | 1.5 | |||
Auto Components | 1.3 | |||
Airlines | 1.1 | |||
Air Freight & Logistics | 1.1 | |||
Software | 1.0 | |||
Machinery | 1.0 | |||
Transportation Infrastructure | 1.0 | |||
Others (each less than 1.0%) | 4.5 |
Abbreviations | ||
ADR | American Depositary Receipt | |
CVA | Dutch Certification | |
OYJ | Public Limited Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
REIT | Real Estate Investment Trust |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 65 |
Table of Contents
JPMorgan International Equity Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
Forward foreign currency exchange contracts outstanding as of October 31, 2018 (amounts in thousands): | ||||||||||||||||||||||
CURRENCY PURCHASED | CURRENCY SOLD | COUNTERPARTY | SETTLEMENT DATE | UNREALIZED APPRECIATION (DEPRECIATION) ($) | ||||||||||||||||||
JPY | 210,482 | USD | 1,854 | BNP Paribas | 11/5/2018 | 12 | ||||||||||||||||
JPY | 1,209,687 | USD | 10,694 | Standard Chartered Bank | 11/5/2018 | 29 | ||||||||||||||||
USD | 578 | AUD | 810 | Societe Generale | 11/5/2018 | 5 | ||||||||||||||||
USD | 1,811 | CAD | 2,354 | Merrill Lynch International | 11/5/2018 | 22 | ||||||||||||||||
USD | 1,283 | CHF | 1,259 | BNP Paribas | 11/5/2018 | 33 | ||||||||||||||||
USD | 2,341 | CHF | 2,280 | TD Bank Financial Group | 11/5/2018 | 77 | ||||||||||||||||
USD | 1,081 | DKK | 6,964 | Societe Generale | 11/5/2018 | 23 | ||||||||||||||||
USD | 2,120 | EUR | 1,825 | Citibank, NA | 11/5/2018 | 52 | ||||||||||||||||
USD | 3,047 | EUR | 2,624 | Goldman Sachs International | 11/5/2018 | 74 | ||||||||||||||||
USD | 3,208 | EUR | 2,766 | TD Bank Financial Group | 11/5/2018 | 75 | ||||||||||||||||
USD | 2,248 | GBP | 1,722 | Barclays Bank plc | 11/5/2018 | 47 | ||||||||||||||||
USD | 12,211 | GBP | 9,340 | Royal Bank of Canada | 11/5/2018 | 271 | ||||||||||||||||
USD | 1,094 | GBP | 826 | State Street Corp. | 11/5/2018 | 38 | ||||||||||||||||
USD | 461 | GBP | 351 | TD Bank Financial Group | 11/5/2018 | 12 | ||||||||||||||||
USD | 516 | JPY | 58,034 | Goldman Sachs International | 11/5/2018 | 1 | ||||||||||||||||
USD | 1,734 | JPY | 193,526 | Royal Bank of Canada | 11/5/2018 | 18 | ||||||||||||||||
USD | 1,754 | NOK | 14,317 | Merrill Lynch International | 11/5/2018 | 55 | ||||||||||||||||
HKD | 15,830 | USD | 2,020 | HSBC Bank, NA | 12/5/2018 | 1 | ||||||||||||||||
JPY | 1,000,101 | USD | 8,860 | Citibank, NA | 12/5/2018 | 25 | ||||||||||||||||
USD | 1,509 | CAD | 1,980 | Barclays Bank plc | 12/5/2018 | 4 | ||||||||||||||||
USD | 1,884 | CHF | 1,890 | TD Bank Financial Group | 12/5/2018 | 2 | ||||||||||||||||
USD | 1,061 | DKK | 6,964 | TD Bank Financial Group | 12/5/2018 | 1 | ||||||||||||||||
USD | 632 | EUR | 556 | Goldman Sachs International | 12/5/2018 | — | (a) | |||||||||||||||
USD | 964 | NOK | 8,112 | HSBC Bank, NA | 12/5/2018 | — | (a) | |||||||||||||||
|
| |||||||||||||||||||||
Total unrealized appreciation | 877 | |||||||||||||||||||||
|
| |||||||||||||||||||||
AUD | 8,202 | USD | 5,916 | HSBC Bank, NA | 11/5/2018 | (107 | ) | |||||||||||||||
AUD | 445 | USD | 320 | Standard Chartered Bank | 11/5/2018 | (5 | ) | |||||||||||||||
CAD | 375 | AUD | 406 | Goldman Sachs International | 11/5/2018 | (3 | ) | |||||||||||||||
CHF | 1,649 | USD | 1,678 | State Street Corp. | 11/5/2018 | (40 | ) | |||||||||||||||
EUR | 1,268 | USD | 1,467 | Barclays Bank plc | 11/5/2018 | (31 | ) | |||||||||||||||
EUR | 3,060 | USD | 3,541 | National Australia Bank Ltd. | 11/5/2018 | (74 | ) | |||||||||||||||
EUR | 263 | USD | 305 | Societe Generale | 11/5/2018 | (7 | ) | |||||||||||||||
EUR | 2,068 | USD | 2,400 | Union Bank of Switzerland AG | 11/5/2018 | (57 | ) | |||||||||||||||
GBP | 458 | JPY | 67,439 | Merrill Lynch International | 11/5/2018 | (12 | ) | |||||||||||||||
GBP | 811 | USD | 1,070 | Citibank, NA | 11/5/2018 | (34 | ) | |||||||||||||||
GBP | 2,397 | USD | 3,126 | National Australia Bank Ltd. | 11/5/2018 | (61 | ) | |||||||||||||||
GBP | 921 | USD | 1,204 | Royal Bank of Canada | 11/5/2018 | (26 | ) | |||||||||||||||
HKD | 15,830 | USD | 2,026 | BNP Paribas | 11/5/2018 | (8 | ) | |||||||||||||||
JPY | 117,582 | USD | 1,049 | Barclays Bank plc | 11/5/2018 | (7 | ) | |||||||||||||||
NOK | 6,205 | USD | 758 | State Street Corp. | 11/5/2018 | (22 | ) | |||||||||||||||
USD | 1,923 | JPY | 218,650 | Deutsche Bank AG | 11/5/2018 | (15 | ) | |||||||||||||||
AUD | 7,431 | USD | 5,268 | Barclays Bank plc | 12/5/2018 | (3 | ) | |||||||||||||||
USD | 9,756 | GBP | 7,651 | Merrill Lynch International | 12/5/2018 | (39 | ) | |||||||||||||||
|
| |||||||||||||||||||||
Total unrealized depreciation | (551 | ) | ||||||||||||||||||||
|
| |||||||||||||||||||||
Net unrealized appreciation | 326 | |||||||||||||||||||||
|
|
Abbreviations
AUD | Australian Dollar | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
DKK | Danish Krone | |
EUR | Euro |
GBP | British Pound | |
HKD | Hong Kong Dollar | |
JPY | Japanese Yen | |
NOK | Norwegian Krone | |
USD | United States Dollar | |
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
66 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
(Amounts in U.S. Dollars, unless otherwise noted)
INVESTMENTS | SHARES (000) | VALUE (000) | ||||||
Common Stocks — 98.1% | ||||||||
Australia — 6.0% | ||||||||
Australia & New Zealand Banking Group Ltd. | 2,621 | 48,239 | ||||||
BHP Billiton Ltd. | 2,683 | 61,903 | ||||||
Commonwealth Bank of Australia | 163 | 8,012 | ||||||
CSL Ltd. | 141 | 18,848 | ||||||
Dexus, REIT | 3,421 | 24,721 | ||||||
Goodman Group, REIT | 3,852 | 28,313 | ||||||
Macquarie Group Ltd. | 45 | 3,771 | ||||||
National Australia Bank Ltd. | 265 | 4,752 | ||||||
Rio Tinto Ltd. | 782 | 42,572 | ||||||
Rio Tinto plc | 187 | 9,065 | ||||||
Wesfarmers Ltd. | 782 | 25,906 | ||||||
Westpac Banking Corp. | 425 | 8,064 | ||||||
|
| |||||||
284,166 | ||||||||
|
| |||||||
Austria — 0.4% | ||||||||
Erste Group Bank AG * | 445 | 18,105 | ||||||
IMMOFINANZ AG * | 1 | 34 | ||||||
|
| |||||||
18,139 | ||||||||
|
| |||||||
Belgium — 1.2% | ||||||||
Anheuser-Busch InBev SA/NV | 797 | 58,983 | ||||||
|
| |||||||
Denmark — 1.6% | ||||||||
Chr Hansen Holding A/S | 220 | 22,191 | ||||||
Novo Nordisk A/S, Class B | 1,274 | 55,029 | ||||||
|
| |||||||
77,220 | ||||||||
|
| |||||||
Finland — 1.6% | ||||||||
Cargotec OYJ, Class B | 343 | 14,261 | ||||||
Nokia OYJ | 3,506 | 19,802 | ||||||
Outokumpu OYJ | 4,198 | 17,596 | ||||||
Wartsila OYJ Abp | 1,283 | 21,833 | ||||||
|
| |||||||
73,492 | ||||||||
|
| |||||||
France — 12.7% | ||||||||
Air Liquide SA | 538 | 65,019 | ||||||
Airbus SE | 364 | 40,216 | ||||||
Alstom SA * | 793 | 34,619 | ||||||
AXA SA | 1,271 | 31,806 | ||||||
BNP Paribas SA | 983 | 51,241 | ||||||
Capgemini SE | 227 | 27,741 | ||||||
JCDecaux SA | 718 | 23,559 | ||||||
Pernod Ricard SA | 290 | 44,242 | ||||||
Renault SA | 490 | 36,587 | ||||||
Sanofi | 756 | 67,588 | ||||||
Schneider Electric SE | 643 | 46,519 | ||||||
Sodexo SA | 374 | 38,190 |
INVESTMENTS | SHARES (000) | VALUE (000) | ||||||
France — continued | ||||||||
TOTAL SA | 1,340 | 78,626 | ||||||
Vinci SA | 104 | 9,247 | ||||||
|
| |||||||
595,200 | ||||||||
|
| |||||||
Germany — 9.0% | ||||||||
adidas AG | 113 | 26,522 | ||||||
Allianz SE (Registered) | 40 | 8,339 | ||||||
BASF SE | 188 | 14,411 | ||||||
Bayer AG (Registered) | 348 | 26,657 | ||||||
Brenntag AG | 571 | 29,836 | ||||||
Daimler AG (Registered) | 853 | 50,526 | ||||||
Deutsche Bank AG (Registered) | 705 | 6,894 | ||||||
Deutsche Boerse AG | 218 | 27,579 | ||||||
Deutsche Post AG (Registered) | 797 | 25,170 | ||||||
Deutsche Telekom AG (Registered) | 2,096 | 34,382 | ||||||
Henkel AG & Co. KGaA (Preference) | 288 | 31,426 | ||||||
Infineon Technologies AG | 1,047 | 20,969 | ||||||
RWE AG | 883 | 17,170 | ||||||
SAP SE | 683 | 73,153 | ||||||
Siemens AG (Registered) | 246 | 28,301 | ||||||
|
| |||||||
421,335 | ||||||||
|
| |||||||
Hong Kong — 2.7% | ||||||||
AIA Group Ltd. | 6,057 | 46,079 | ||||||
CK Asset Holdings Ltd. | 2,796 | 18,193 | ||||||
CK Hutchison Holdings Ltd. | 2,765 | 27,846 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 1,342 | 35,736 | ||||||
I-CABLE Communications Ltd. * | 254 | 4 | ||||||
|
| |||||||
127,858 | ||||||||
|
| |||||||
Ireland — 1.0% | ||||||||
CRH plc | 562 | 16,774 | ||||||
Ryanair Holdings plc, ADR * | 375 | 31,028 | ||||||
|
| |||||||
47,802 | ||||||||
|
| |||||||
Israel — 0.2% | ||||||||
Teva Pharmaceutical Industries Ltd., ADR | 601 | 12,001 | ||||||
|
| |||||||
Italy — 2.1% | ||||||||
Assicurazioni Generali SpA | 1,882 | 30,373 | ||||||
Enel SpA | 10,115 | 49,596 | ||||||
Telecom Italia SpA * | 23,225 | 13,660 | ||||||
UniCredit SpA | 278 | 3,555 | ||||||
|
| |||||||
97,184 | ||||||||
|
| |||||||
Japan — 23.7% | ||||||||
Asahi Group Holdings Ltd. | 390 | 17,130 | ||||||
Bridgestone Corp. | 1,087 | 41,895 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 67 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
(Amounts in U.S. Dollars, unless otherwise noted)
INVESTMENTS | SHARES (000) | VALUE (000) | ||||||
Common Stocks — continued | ||||||||
Japan — continued | ||||||||
Central Japan Railway Co. | 132 | 25,236 | ||||||
Daicel Corp. | 2,555 | 27,034 | ||||||
Daikin Industries Ltd. | 394 | 45,622 | ||||||
DMG Mori Co. Ltd. | 1,837 | 26,507 | ||||||
Electric Power Development Co. Ltd. | 316 | 8,601 | ||||||
Hitachi Ltd. | 416 | 12,711 | ||||||
Honda Motor Co. Ltd. | 1,552 | 44,314 | ||||||
Japan Airlines Co. Ltd. | 623 | 22,104 | ||||||
Japan Tobacco, Inc. | 1,060 | 27,240 | ||||||
Kao Corp. | 558 | 37,093 | ||||||
Keyence Corp. | 17 | 8,158 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 632 | 12,236 | ||||||
Kyushu Electric Power Co., Inc. | 820 | 9,520 | ||||||
Mabuchi Motor Co. Ltd. | 837 | 29,784 | ||||||
Marui Group Co. Ltd. | 1,015 | 21,853 | ||||||
Mitsubishi Corp. | 1,518 | 42,733 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 8,125 | 49,175 | ||||||
Mitsui Fudosan Co. Ltd. | 643 | 14,480 | ||||||
NGK Spark Plug Co. Ltd. | 1,026 | 20,769 | ||||||
Nintendo Co. Ltd. | 82 | 25,632 | ||||||
Nippon Telegraph & Telephone Corp. | 689 | 28,413 | ||||||
Nomura Research Institute Ltd. | 433 | 19,196 | ||||||
Olympus Corp. | 157 | 5,246 | ||||||
Otsuka Corp. | 634 | 21,032 | ||||||
Otsuka Holdings Co. Ltd. | 801 | 38,291 | ||||||
Panasonic Corp. | 2,485 | 26,663 | ||||||
Renesas Electronics Corp. * | 4,129 | 21,752 | ||||||
Seven & i Holdings Co. Ltd. | 1,096 | 47,457 | ||||||
Sony Corp. | 383 | 20,704 | ||||||
Sumitomo Electric Industries Ltd. | 1,715 | 23,386 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 1,054 | 41,038 | ||||||
T&D Holdings, Inc. | 2,038 | 32,585 | ||||||
Tokio Marine Holdings, Inc. | 742 | 34,934 | ||||||
Tokyo Gas Co. Ltd. | 526 | 12,928 | ||||||
Tokyu Corp. | 2,047 | 33,822 | ||||||
Toray Industries, Inc. | 3,723 | 26,410 | ||||||
Toyota Motor Corp. | 1,173 | 68,734 | ||||||
West Japan Railway Co. | 210 | 14,104 | ||||||
Yamato Holdings Co. Ltd. | 996 | 27,234 | ||||||
|
| |||||||
1,113,756 | ||||||||
|
| |||||||
Luxembourg — 0.5% | ||||||||
ArcelorMittal | 870 | 21,719 | ||||||
|
| |||||||
Malta — 0.0% (a) | ||||||||
BGP Holdings Beneficial * ‡ | 449 | — | (b) | |||||
|
|
INVESTMENTS | SHARES (000) | VALUE (000) | ||||||
Netherlands — 5.7% | ||||||||
Akzo Nobel NV | 424 | 35,560 | ||||||
ASML Holding NV | 218 | 37,608 | ||||||
Heineken NV | 179 | 16,096 | ||||||
ING Groep NV | 2,901 | 34,323 | ||||||
Koninklijke Philips NV | 330 | 12,310 | ||||||
Royal Dutch Shell plc, Class A | 1,767 | 56,286 | ||||||
Royal Dutch Shell plc, Class B | 2,276 | 74,226 | ||||||
|
| |||||||
266,409 | ||||||||
|
| |||||||
Singapore — 1.0% | ||||||||
DBS Group Holdings Ltd. | 2,344 | 39,777 | ||||||
United Overseas Bank Ltd. | 471 | 8,328 | ||||||
|
| |||||||
48,105 | ||||||||
|
| |||||||
Spain — 3.5% | ||||||||
Banco Santander SA | 4,635 | 22,052 | ||||||
Bankia SA | 7,277 | 22,858 | ||||||
Iberdrola SA | 8,556 | 60,539 | ||||||
Industria de Diseno Textil SA | 1,526 | 43,020 | ||||||
Telefonica SA | 2,155 | 17,674 | ||||||
|
| |||||||
166,143 | ||||||||
|
| |||||||
Sweden — 1.3% | ||||||||
Lundin Petroleum AB | 738 | 22,450 | ||||||
Svenska Handelsbanken AB, Class A | 3,722 | 40,463 | ||||||
|
| |||||||
62,913 | ||||||||
|
| |||||||
Switzerland — 9.6% | ||||||||
Cie Financiere Richemont SA (Registered) | 487 | 35,577 | ||||||
Credit Suisse Group AG (Registered) * | 2,545 | 33,278 | ||||||
LafargeHolcim Ltd. (Registered) * | 803 | 37,179 | ||||||
Nestle SA (Registered) | 1,292 | 109,071 | ||||||
Novartis AG (Registered) | 724 | 63,401 | ||||||
Roche Holding AG | 405 | 98,596 | ||||||
Swiss Re AG | 363 | 32,710 | ||||||
UBS Group AG (Registered) * | 1,877 | 26,233 | ||||||
Zurich Insurance Group AG * | 48 | 14,959 | ||||||
|
| |||||||
451,004 | ||||||||
|
| |||||||
United Kingdom — 13.4% | ||||||||
3i Group plc | 3,022 | 33,833 | ||||||
AstraZeneca plc | 226 | 17,307 | ||||||
Aviva plc | 4,638 | 25,345 | ||||||
Barratt Developments plc | 2,867 | 18,803 | ||||||
BP plc | 6,500 | 46,953 | ||||||
British American Tobacco plc | 1,508 | 65,364 | ||||||
Burberry Group plc | 1,114 | 25,769 | ||||||
Diageo plc | 171 | 5,896 | ||||||
Dixons Carphone plc | 7,467 | 16,143 |
SEE NOTES TO FINANCIAL STATEMENTS.
68 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE (000) | ||||||
Common Stocks — continued | ||||||||
United Kingdom — continued | ||||||||
GlaxoSmithKline plc | 2,605 | 50,455 | ||||||
HSBC Holdings plc | 5,101 | 41,980 | ||||||
InterContinental Hotels Group plc | 457 | 23,969 | ||||||
ITV plc | 14,145 | 26,851 | ||||||
Linde plc | 37 | 6,067 | ||||||
Lloyds Banking Group plc | 23,155 | 16,897 | ||||||
Prudential plc | 2,395 | 47,958 | ||||||
Standard Chartered plc | 5,502 | 38,561 | ||||||
Taylor Wimpey plc | 7,553 | 15,551 | ||||||
Unilever NV, CVA | 942 | 50,613 | ||||||
Vodafone Group plc | 22,885 | 43,036 | ||||||
Whitbread plc | 201 | 11,295 | ||||||
|
| |||||||
628,646 | ||||||||
|
| |||||||
United States — 0.9% | ||||||||
Ferguson plc | 601 | 40,526 | ||||||
|
| |||||||
Total Common Stocks | 4,612,601 | |||||||
|
| |||||||
NO. OF (000) | ||||||||
Rights — 0.0% (a) | ||||||||
Spain — 0.0% (a) | ||||||||
Banco Santander SA, expiring 11/6/2018 * | 4,635 | 180 | ||||||
|
| |||||||
PRINCIPAL (000) | ||||||||
Corporate Bonds — 0.0% (a) | ||||||||
Brazil — 0.0% (a) | ||||||||
Vale SA | ||||||||
Series A6, 0.00%, ‡ (c) (d) (e) | BRL | 11 | — | (b) | ||||
|
| |||||||
SHARES (000) | ||||||||
Short-Term Investments — 1.2% | ||||||||
Investment Companies — 1.2% | ||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, | 56,728 | 56,728 | ||||||
|
| |||||||
Total Investments — 99.3% | 4,669,509 | |||||||
Other Assets Less Liabilities — 0.7% | 31,109 | |||||||
|
| |||||||
NET ASSETS — 100.0% | 4,700,618 | |||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 10.7 | % | ||
Pharmaceuticals | 9.5 | |||
Insurance | 6.5 | |||
Oil, Gas & Consumable Fuels | 6.0 | |||
Automobiles | 4.3 | |||
Chemicals | 4.2 | |||
Capital Markets | 3.6 | |||
Metals & Mining | 3.3 | |||
Beverages | 3.0 | |||
Electric Utilities | 2.6 | |||
Trading Companies & Distributors | 2.4 | |||
Food Products | 2.3 | |||
Machinery | 2.1 | |||
Diversified Telecommunication Services | 2.0 | |||
Tobacco | 2.0 | |||
Textiles, Apparel & Luxury Goods | 1.9 | |||
Personal Products | 1.9 | |||
Auto Components | 1.8 | |||
Household Durables | 1.7 | |||
Semiconductors & Semiconductor Equipment | 1.7 | |||
Electrical Equipment | 1.6 | |||
Hotels, Restaurants & Leisure | 1.6 | |||
Food & Staples Retailing | 1.6 | |||
Road & Rail | 1.6 | |||
Software | 1.6 | |||
IT Services | 1.4 | |||
Specialty Retail | 1.3 | |||
Industrial Conglomerates | 1.2 | |||
Construction Materials | 1.1 | |||
Airlines | 1.1 | |||
Equity Real Estate Investment Trusts (REITs) | 1.1 | |||
Air Freight & Logistics | 1.1 | |||
Media | 1.1 | |||
Building Products | 1.0 | |||
Others (each less than 1.0%) | 6.9 | |||
Short-Term Investments | 1.2 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 69 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
(Amounts in U.S. Dollars, unless otherwise noted)
Abbreviations
ADR | American Depositary Receipt | |
BRL | Brazilian Real | |
CVA | Dutch Certification | |
OYJ | Public Limited Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
REIT | Real Estate Investment Trust | |
(a) | Amount rounds to less than 0.1% of net assets. | |
(b) | Amount rounds to less than one thousand. |
(c) | Variable or floating rate security, linked to the referenced benchmark. The interest rate shown is the current rate as of October 31, 2018. | |
(d) | Defaulted security. | |
(e) | Security is an interest bearing note with preferred security characteristics. | |
(f) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(g) | The rate shown is the current yield as of October 31, 2018. | |
* | Non-income producing security. | |
‡ | Value determined using significant unobservable inputs. |
Futures contracts outstanding as of October 31, 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 | ||||||||||||||||
EURO STOXX 50 Index | 811 | 12/2018 | EUR | 29,229 | (1,233 | ) | ||||||||||
FTSE 100 Index | 214 | 12/2018 | GBP | 19,382 | (397 | ) | ||||||||||
TOPIX Index | 155 | 12/2018 | JPY | 22,494 | (521 | ) | ||||||||||
|
| |||||||||||||||
(2,151 | ) | |||||||||||||||
|
|
Abbreviations
EUR | Euro | |
FTSE | Financial Times and the London Stock Exchange | |
GBP | British Pound | |
JPY | Japanese Yen | |
TOPIX | Tokyo Stock Price Index |
SEE NOTES TO FINANCIAL STATEMENTS.
70 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 100.0% |
| |||||||
Australia — 2.2% | ||||||||
BHP Billiton plc | 527 | 10,515 | ||||||
|
| |||||||
Austria — 1.6% | ||||||||
Erste Group Bank AG * | 188 | 7,661 | ||||||
|
| |||||||
Brazil — 1.6% | ||||||||
Itau Unibanco Holding SA (Preference) | 590 | 7,795 | ||||||
|
| |||||||
Canada — 6.0% | ||||||||
Alimentation Couche-Tard, Inc., Class B | 238 | 11,386 | ||||||
Canadian National Railway Co. | 116 | 9,881 | ||||||
Toronto-Dominion Bank (The) | 131 | 7,241 | ||||||
|
| |||||||
28,508 | ||||||||
|
| |||||||
China — 7.6% | ||||||||
China Overseas Land & Investment Ltd. | 1,576 | 4,954 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 1,827 | 17,268 | ||||||
Tencent Holdings Ltd. | 403 | 13,810 | ||||||
|
| |||||||
36,032 | ||||||||
|
| |||||||
Denmark — 2.0% | ||||||||
Novo Nordisk A/S, Class B | 215 | 9,280 | ||||||
|
| |||||||
France — 6.0% | ||||||||
Accor SA | 152 | 6,958 | ||||||
Airbus SE | 35 | 3,900 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 37 | 11,263 | ||||||
Safran SA | 50 | 6,405 | ||||||
|
| |||||||
28,526 | ||||||||
|
| |||||||
Germany — 11.5% | ||||||||
Bayer AG (Registered) | 109 | 8,393 | ||||||
Continental AG | 59 | 9,793 | ||||||
Delivery Hero SE * (a) | 169 | 6,790 | ||||||
Deutsche Boerse AG | 78 | 9,899 | ||||||
SAP SE | 136 | 14,600 | ||||||
Zalando SE * (a) | 135 | 5,223 | ||||||
|
| |||||||
54,698 | ||||||||
|
| |||||||
Hong Kong — 4.7% | ||||||||
AIA Group Ltd. | 2,141 | 16,283 | ||||||
CK Asset Holdings Ltd. | 910 | 5,919 | ||||||
|
| |||||||
22,202 | ||||||||
|
| |||||||
India — 3.6% | ||||||||
HDFC Bank Ltd., ADR | 192 | 17,093 | ||||||
|
| |||||||
Indonesia — 2.1% | ||||||||
Bank Central Asia Tbk. PT | 6,262 | 9,751 | ||||||
|
|
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Japan — 8.7% | ||||||||
FANUC Corp. | 48 | 8,264 | ||||||
Keyence Corp. | 15 | 7,181 | ||||||
Komatsu Ltd. | 281 | 7,316 | ||||||
Shin-Etsu Chemical Co. Ltd. | 117 | 9,793 | ||||||
SMC Corp. | 28 | 8,988 | ||||||
|
| |||||||
41,542 | ||||||||
|
| |||||||
Netherlands — 9.7% | ||||||||
ASML Holding NV | 54 | 9,288 | ||||||
ING Groep NV | 875 | 10,357 | ||||||
NN Group NV | 233 | 10,004 | ||||||
Royal Dutch Shell plc, Class A | 521 | 16,544 | ||||||
|
| |||||||
46,193 | ||||||||
|
| |||||||
South Korea — 1.5% | ||||||||
Samsung Electronics Co. Ltd., GDR (a) | 7 | 6,864 | ||||||
Samsung Electronics Co. Ltd., GDR (b) | — | (c) | 308 | |||||
|
| |||||||
7,172 | ||||||||
|
| |||||||
Switzerland — 7.5% | ||||||||
Glencore plc * | 1,245 | 5,065 | ||||||
Nestle SA (Registered) | 211 | 17,816 | ||||||
Novartis AG (Registered) | 147 | 12,845 | ||||||
|
| |||||||
35,726 | ||||||||
|
| |||||||
United Kingdom — 21.5% | ||||||||
AstraZeneca plc | 95 | 7,286 | ||||||
Aviva plc | 1,882 | 10,286 | ||||||
Burberry Group plc | 381 | 8,818 | ||||||
Diageo plc | 367 | 12,702 | ||||||
GlaxoSmithKline plc | 629 | 12,188 | ||||||
Linde plc | 57 | 9,334 | ||||||
RELX plc | 503 | 9,950 | ||||||
Smith & Nephew plc | 594 | 9,651 | ||||||
Unilever NV, CVA | 311 | 16,702 | ||||||
WPP plc | 445 | 5,035 | ||||||
|
| |||||||
101,952 | ||||||||
|
| |||||||
United States — 2.2% | ||||||||
Ferguson plc | 153 | 10,348 | ||||||
|
| |||||||
Total Common Stocks |
| 474,994 | ||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 71 |
Table of Contents
JPMorgan International Unconstrained Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Short-Term Investments — 0.4% |
| |||||||
Investment Companies — 0.4% |
| |||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02% (d) (e) | 1,995 | 1,995 | ||||||
|
| |||||||
Total Investments — 100.4% |
| 476,989 | ||||||
Liabilities in Excess of |
| (1,759 | ) | |||||
|
| |||||||
NET ASSETS — 100.0% |
| 475,230 | ||||||
|
|
Percentages indicated are based on net assets.
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 12.5 | % | ||
Insurance | 11.3 | |||
Pharmaceuticals | 10.5 | |||
Machinery | 5.1 | |||
Textiles, Apparel & Luxury Goods | 4.2 | |||
Chemicals | 4.0 | |||
Food Products | 3.7 | |||
Personal Products | 3.5 | |||
Oil, Gas & Consumable Fuels | 3.5 | |||
Metals & Mining | 3.3 | |||
Software | 3.1 | |||
Interactive Media & Services | 2.9 | |||
Beverages | 2.7 | |||
Internet & Direct Marketing Retail | 2.5 | |||
Food & Staples Retailing | 2.4 | |||
Real Estate Management & Development | 2.3 | |||
Trading Companies & Distributors | 2.2 | |||
Aerospace & Defense | 2.2 | |||
Professional Services | 2.1 | |||
Capital Markets | 2.1 | |||
Road & Rail | 2.1 | |||
Auto Components | 2.0 | |||
Health Care Equipment & Supplies | 2.0 | |||
Semiconductors & Semiconductor Equipment | 1.9 | |||
Electronic Equipment, Instruments & Components | 1.5 | |||
Technology Hardware, Storage & Peripherals | 1.5 | |||
Hotels, Restaurants & Leisure | 1.5 | |||
Media | 1.0 | |||
Others (each less than 1.0%) | 0.0 | |||
Short-Term Investments | 0.4 |
Abbreviations | ||
ADR | American Depositary Receipt | |
CVA | Dutch Certification | |
GDR | Global Depositary Receipt | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(b) | Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. Under procedures approved by the Board of Trustees, such securities have been determined to be liquid by the investment adviser and may be resold, normally to qualified institutional buyers in transactions exempt from registration. | |
(c) | Amount rounds to less than one thousand. | |
(d) | Investment in affiliate. Fund is registered under the Investment Company Act of 1940, as amended, and advised by J.P. Morgan Investment Management Inc. | |
(e) | The rate shown is the current yield as of October 31, 2018. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
72 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — 98.7% |
| |||||||
Australia — 7.5% | ||||||||
Alumina Ltd. | 567 | 1,029 | ||||||
Australia & New Zealand Banking Group Ltd. | 301 | 5,537 | ||||||
BHP Billiton Ltd. | 472 | 10,900 | ||||||
BlueScope Steel Ltd. | 80 | 822 | ||||||
CSR Ltd. | 293 | 736 | ||||||
JB Hi-Fi Ltd. | 43 | 693 | ||||||
Metcash Ltd. | 417 | 815 | ||||||
Nine Entertainment Co. Holdings Ltd. | 604 | 726 | ||||||
Qantas Airways Ltd. | 227 | 880 | ||||||
Rio Tinto plc | 126 | 6,135 | ||||||
Sandfire Resources NL | 165 | 783 | ||||||
South32 Ltd. | 855 | 2,204 | ||||||
St Barbara Ltd. | 303 | 896 | ||||||
Westpac Banking Corp. | 325 | 6,170 | ||||||
Whitehaven Coal Ltd. | 286 | 988 | ||||||
|
| |||||||
39,314 | ||||||||
|
| |||||||
Austria — 1.2% | ||||||||
AT&S Austria Technologie & Systemtechnik AG | 38 | 900 | ||||||
Erste Group Bank AG * | 32 | 1,315 | ||||||
EVN AG | 37 | 652 | ||||||
OMV AG | 30 | 1,686 | ||||||
Raiffeisen Bank International AG | 35 | 949 | ||||||
Telekom Austria AG * | 117 | 872 | ||||||
|
| |||||||
6,374 | ||||||||
|
| |||||||
Belgium — 0.5% | ||||||||
D’ieteren SA/NV | 17 | 673 | ||||||
KBC Group NV | 31 | 2,113 | ||||||
|
| |||||||
2,786 | ||||||||
|
| |||||||
Denmark — 0.6% | ||||||||
Matas A/S | 117 | 1,125 | ||||||
Pandora A/S | 14 | 866 | ||||||
Scandinavian Tobacco Group A/S, Class A (a) | 63 | 961 | ||||||
|
| |||||||
2,952 | ||||||||
|
| |||||||
Finland — 0.6% | ||||||||
Cramo OYJ | 44 | 842 | ||||||
Ramirent OYJ | 76 | 551 | ||||||
Sanoma OYJ | 98 | 1,108 | ||||||
Tokmanni Group Corp. | 70 | 570 | ||||||
|
| |||||||
3,071 | ||||||||
|
| |||||||
France — 10.1% | ||||||||
ALD SA (a) | 61 | 905 | ||||||
Arkema SA | 8 | 856 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
France — continued | ||||||||
BNP Paribas SA | 90 | 4,685 | ||||||
Casino Guichard Perrachon SA | 22 | 957 | ||||||
Cie Generale des Etablissements Michelin SCA | 12 | 1,259 | ||||||
Credit Agricole SA | 168 | 2,148 | ||||||
Engie SA | 235 | 3,125 | ||||||
Eramet | 8 | 694 | ||||||
Eutelsat Communications SA | 43 | 880 | ||||||
Groupe Crit | 9 | 609 | ||||||
IPSOS | 30 | 796 | ||||||
Kaufman & Broad SA | 21 | 874 | ||||||
Natixis SA | 190 | 1,108 | ||||||
Neopost SA | 39 | 1,251 | ||||||
Orange SA | 214 | 3,336 | ||||||
Peugeot SA | 73 | 1,726 | ||||||
Publicis Groupe SA | 15 | 879 | ||||||
Renault SA | 15 | 1,142 | ||||||
Rexel SA | 84 | 1,077 | ||||||
Rothschild & Co. | 18 | 698 | ||||||
Sanofi | 106 | 9,484 | ||||||
Societe BIC SA | 12 | 1,149 | ||||||
TOTAL SA | 218 | 12,814 | ||||||
|
| |||||||
52,452 | ||||||||
|
| |||||||
Georgia — 0.2% | ||||||||
TBC Bank Group plc | 40 | 872 | ||||||
|
| |||||||
Germany — 6.2% | ||||||||
Allianz SE (Registered) | 43 | 8,878 | ||||||
BASF SE | 20 | 1,535 | ||||||
Covestro AG (a) | 18 | 1,153 | ||||||
Deutsche Beteiligungs AG | 20 | 834 | ||||||
Deutsche Lufthansa AG (Registered) | 47 | 944 | ||||||
Deutsche Pfandbriefbank AG (a) | 67 | 884 | ||||||
Deutsche Telekom AG (Registered) | 349 | 5,723 | ||||||
Evonik Industries AG | 39 | 1,206 | ||||||
Freenet AG | 34 | 775 | ||||||
JOST Werke AG (a) | 25 | 865 | ||||||
ProSiebenSat.1 Media SE | 52 | 1,210 | ||||||
RWE AG | 52 | 1,012 | ||||||
Schaeffler AG (Preference) | 77 | 814 | ||||||
Siltronic AG | 6 | 534 | ||||||
Takkt AG | 55 | 941 | ||||||
Volkswagen AG (Preference) | 25 | 4,166 | ||||||
Wuestenrot & Wuerttembergische AG | 45 | 905 | ||||||
|
| |||||||
32,379 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 73 |
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Ghana — 0.1% | ||||||||
Tullow Oil plc * | 216 | 620 | ||||||
|
| |||||||
Hong Kong — 1.8% | ||||||||
Bank of East Asia Ltd. (The) | 319 | 1,033 | ||||||
Hongkong Land Holdings Ltd. | 261 | 1,548 | ||||||
Hysan Development Co. Ltd. | 196 | 919 | ||||||
Kerry Properties Ltd. | 267 | 841 | ||||||
NWS Holdings Ltd. | 617 | 1,225 | ||||||
Sun Hung Kai Properties Ltd. | 186 | 2,417 | ||||||
Wheelock & Co. Ltd. | 220 | 1,176 | ||||||
|
| |||||||
9,159 | ||||||||
|
| |||||||
Ireland — 0.2% | ||||||||
Origin Enterprises plc | 174 | 1,117 | ||||||
|
| |||||||
Isle of Man — 0.1% | ||||||||
Strix Group plc | 180 | 342 | ||||||
|
| |||||||
Israel — 0.7% | ||||||||
Bank Leumi Le-Israel BM | 175 | 1,089 | ||||||
Israel Discount Bank Ltd., Class A | 377 | 1,232 | ||||||
Plus500 Ltd. | 81 | 1,393 | ||||||
|
| |||||||
3,714 | ||||||||
|
| |||||||
Italy — 1.2% | ||||||||
ASTM SpA | 39 | 768 | ||||||
Banca Farmafactoring SpA (a) | 139 | 717 | ||||||
Cairo Communication SpA | 217 | 687 | ||||||
Immobiliare Grande Distribuzione SIIQ SpA, REIT | 99 | 699 | ||||||
Maire Tecnimont SpA | 204 | 893 | ||||||
Mediobanca Banca di Credito Finanziario SpA | 149 | 1,308 | ||||||
Rizzoli Corriere Della Sera Mediagroup SpA * | 601 | 611 | ||||||
Unieuro SpA * (a) | 61 | 739 | ||||||
|
| |||||||
6,422 | ||||||||
|
| |||||||
Japan — 25.9% | ||||||||
77 Bank Ltd. (The) | 45 | 919 | ||||||
Asahi Kasei Corp. | 68 | 816 | ||||||
Bridgestone Corp. | 83 | 3,216 | ||||||
Brother Industries Ltd. | 68 | 1,243 | ||||||
Concordia Financial Group Ltd. | 277 | 1,268 | ||||||
Daicel Corp. | 118 | 1,250 | ||||||
Dai-ichi Life Holdings, Inc. | 156 | 2,935 | ||||||
Daiwa Securities Group, Inc. | 254 | 1,456 | ||||||
DMG Mori Co. Ltd. | 103 | 1,492 | ||||||
FUJIFILM Holdings Corp. | 48 | 2,080 | ||||||
Fujitsu Ltd. | 30 | 1,849 | ||||||
Fukuoka Financial Group, Inc. | 54 | 1,322 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Japan — continued |
| |||||||
Gunma Bank Ltd. (The) | 178 | 807 | ||||||
Hitachi Capital Corp. | 33 | 812 | ||||||
Hitachi Ltd. | 27 | 832 | ||||||
Honda Motor Co. Ltd. | 190 | 5,415 | ||||||
Idemitsu Kosan Co. Ltd. | 42 | 1,885 | ||||||
Isuzu Motors Ltd. | 90 | 1,180 | ||||||
ITOCHU Corp. | 193 | 3,581 | ||||||
Japan Airlines Co. Ltd. | 31 | 1,100 | ||||||
JFE Holdings, Inc. | 85 | 1,595 | ||||||
JXTG Holdings, Inc. | 474 | 3,203 | ||||||
Kajima Corp. | 101 | 1,301 | ||||||
Kansai Electric Power Co., Inc. (The) | 139 | 2,129 | ||||||
KDDI Corp. | 195 | 4,726 | ||||||
K’s Holdings Corp. | 86 | 1,083 | ||||||
Kumagai Gumi Co. Ltd. | 32 | 836 | ||||||
Maeda Corp. | 90 | 1,020 | ||||||
Marubeni Corp. | 285 | 2,311 | ||||||
Mitsubishi Chemical Holdings Corp. | 216 | 1,686 | ||||||
Mitsubishi Corp. | 167 | 4,709 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 51 | 861 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 1,222 | 7,397 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 205 | 1,055 | ||||||
Mitsui & Co. Ltd. | 223 | 3,719 | ||||||
Mizuho Financial Group, Inc. | 2,688 | 4,617 | ||||||
Nippon Telegraph & Telephone Corp. | 90 | 3,695 | ||||||
Nishi-Nippon Financial Holdings, Inc. | 84 | 802 | ||||||
Nomura Real Estate Holdings, Inc. | 47 | 885 | ||||||
NTT DOCOMO, Inc. | 157 | 3,883 | ||||||
ORIX Corp. | 186 | 3,032 | ||||||
Resona Holdings, Inc. | 385 | 2,025 | ||||||
Shinsei Bank Ltd. | 71 | 1,075 | ||||||
Shizuoka Bank Ltd. (The) | 142 | 1,242 | ||||||
Sompo Holdings, Inc. | 57 | 2,334 | ||||||
Sony Corp. | 22 | 1,207 | ||||||
Subaru Corp. | 57 | 1,548 | ||||||
Sumitomo Chemical Co. Ltd. | 238 | 1,192 | ||||||
Sumitomo Corp. | 168 | 2,548 | ||||||
Sumitomo Heavy Industries Ltd. | 28 | 868 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 149 | 5,817 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 66 | 2,610 | ||||||
Taiheiyo Cement Corp. | 41 | 1,198 | ||||||
Taisei Corp. | 34 | 1,471 | ||||||
Teijin Ltd. | 57 | 983 | ||||||
Tokuyama Corp. | 27 | 613 | ||||||
Tokyo Tatemono Co. Ltd. | 91 | 981 |
SEE NOTES TO FINANCIAL STATEMENTS.
74 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Japan — continued |
| |||||||
Tokyu Fudosan Holdings Corp. | 165 | 929 | ||||||
Toyota Boshoku Corp. | 52 | 859 | ||||||
Toyota Motor Corp. | 210 | 12,273 | ||||||
Toyota Tsusho Corp. | 49 | 1,768 | ||||||
TS Tech Co. Ltd. | 23 | 668 | ||||||
Yokohama Rubber Co. Ltd. (The) | 51 | 994 | ||||||
|
| |||||||
135,206 | ||||||||
|
| |||||||
Luxembourg — 0.8% | ||||||||
Aperam SA | 22 | 756 | ||||||
ArcelorMittal | 105 | 2,631 | ||||||
RTL Group SA | 15 | 988 | ||||||
|
| |||||||
4,375 | ||||||||
|
| |||||||
Netherlands — 7.9% | ||||||||
ABN AMRO Group NV, CVA (a) | 77 | 1,882 | ||||||
Aegon NV | 325 | 1,993 | ||||||
ASR Nederland NV | 23 | 1,057 | ||||||
Atrium European Real Estate Ltd. * | 92 | 385 | ||||||
BinckBank NV | 140 | 676 | ||||||
Flow Traders (a) | 28 | 898 | ||||||
Heijmans NV, CVA * | 80 | 861 | ||||||
ING Groep NV | 410 | 4,850 | ||||||
Intertrust NV (a) | 55 | 895 | ||||||
Koninklijke Volkerwessels NV | 39 | 688 | ||||||
NIBC Holding NV (a) | 89 | 812 | ||||||
NN Group NV | 60 | 2,564 | ||||||
Royal Dutch Shell plc, Class A | 722 | 22,992 | ||||||
Signify NV (a) | 35 | 867 | ||||||
|
| |||||||
41,420 | ||||||||
|
| |||||||
New Zealand — 0.5% | ||||||||
Air New Zealand Ltd. | 386 | 705 | ||||||
Spark New Zealand Ltd. | 485 | 1,252 | ||||||
Z Energy Ltd. | 207 | 825 | ||||||
|
| |||||||
2,782 | ||||||||
|
| |||||||
Norway — 3.0% | ||||||||
Austevoll Seafood ASA | 88 | 1,415 | ||||||
BW Offshore Ltd. * | 150 | 960 | ||||||
DNB ASA | 149 | 2,699 | ||||||
Equinor ASA | 137 | 3,544 | ||||||
Norwegian Finans Holding ASA * | 99 | 881 | ||||||
Olav Thon Eiendomsselskap ASA | 17 | 288 | ||||||
Scottish Salmon Co. Plc (The) | 181 | 389 | ||||||
Selvaag Bolig ASA | 106 | 473 | ||||||
SpareBank 1 Nord Norge | 105 | 840 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Norway — continued |
| |||||||
SpareBank 1 SMN | 107 | 1,094 | ||||||
SpareBank 1 SR-Bank ASA | 74 | 826 | ||||||
Storebrand ASA | 127 | 1,051 | ||||||
Telenor ASA | 51 | 935 | ||||||
|
| |||||||
15,395 | ||||||||
|
| |||||||
Portugal — 0.1% | ||||||||
Semapa-Sociedade de Investimento e Gestao | 36 | 682 | ||||||
|
| |||||||
Russia — 0.3% | ||||||||
Evraz plc | 241 | 1,671 | ||||||
|
| |||||||
Singapore — 1.0% | ||||||||
DBS Group Holdings Ltd. | 40 | 672 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 305 | 2,368 | ||||||
United Overseas Bank Ltd. | 112 | 1,987 | ||||||
|
| |||||||
5,027 | ||||||||
|
| |||||||
South Africa — 0.7% | ||||||||
Anglo American plc | 159 | 3,385 | ||||||
|
| |||||||
Spain — 2.6% | ||||||||
ACS Actividades de Construccion y Servicios SA | 50 | 1,861 | ||||||
Atresmedia Corp. de Medios de Comunicacion SA | 110 | 622 | ||||||
CaixaBank SA | 315 | 1,276 | ||||||
eDreams ODIGEO SA * | 227 | 925 | ||||||
Enagas SA | 59 | 1,552 | ||||||
Repsol SA | 169 | 3,028 | ||||||
Talgo SA * (a) | 181 | 918 | ||||||
Telefonica SA | 315 | 2,588 | ||||||
Unicaja Banco SA (a) | 510 | 653 | ||||||
|
| |||||||
13,423 | ||||||||
|
| |||||||
Sweden — 2.9% | ||||||||
Betsson AB * | 150 | 1,306 | ||||||
Boliden AB * | 31 | 713 | ||||||
Granges AB | 57 | 598 | ||||||
KappAhl AB | 206 | 592 | ||||||
Mekonomen AB | 107 | 1,252 | ||||||
Mycronic AB | 99 | 1,248 | ||||||
Nobia AB | 128 | 815 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 244 | 2,530 | ||||||
Svenska Handelsbanken AB, Class A | 189 | 2,060 | ||||||
Swedbank AB, Class A | 134 | 3,025 | ||||||
Tethys Oil AB | 116 | 1,109 | ||||||
|
| |||||||
15,248 | ||||||||
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 75 |
Table of Contents
JPMorgan International Value Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
AS OF OCTOBER 31, 2018 (continued)
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
Common Stocks — continued |
| |||||||
Switzerland — 8.5% | ||||||||
Adecco Group AG (Registered) | 17 | 824 | ||||||
ALSO Holding AG (Registered) * | 8 | 955 | ||||||
Credit Suisse Group AG (Registered) * | 176 | 2,295 | ||||||
Ferrexpo plc | 260 | 692 | ||||||
Glencore plc * | 1,238 | 5,039 | ||||||
Novartis AG (Registered) | 191 | 16,756 | ||||||
Orior AG | 11 | 990 | ||||||
Resurs Holding AB (a) | 167 | 1,105 | ||||||
Roche Holding AG | 7 | 1,707 | ||||||
Swiss Re AG | 34 | 3,085 | ||||||
UBS Group AG (Registered) * | 407 | 5,693 | ||||||
Vetropack Holding AG | — | (b) | 453 | |||||
Zurich Insurance Group AG * | 15 | 4,704 | ||||||
|
| |||||||
44,298 | ||||||||
|
| |||||||
United Kingdom — 13.4% | ||||||||
Babcock International Group plc | 114 | 889 | ||||||
Barclays plc | 1,148 | 2,529 | ||||||
Barratt Developments plc | 292 | 1,917 | ||||||
Berkeley Group Holdings plc | 31 | 1,401 | ||||||
Biffa plc (a) | 288 | 865 | ||||||
Bovis Homes Group plc | 63 | 781 | ||||||
British Land Co. plc (The), REIT | 282 | 2,126 | ||||||
Centrica plc | 977 | 1,835 | ||||||
Charter Court Financial Services Group plc (a) | 262 | 973 | ||||||
Derwent London plc, REIT | 43 | 1,604 | ||||||
Dialog Semiconductor plc * | 45 | 1,188 | ||||||
Draper Esprit plc * | 98 | 648 | ||||||
EI Group plc * | 336 | 713 | ||||||
Fiat Chrysler Automobiles NV * | 48 | 724 | ||||||
Forterra plc (a) | 401 | 1,133 | ||||||
Genel Energy plc * | 251 | 695 | ||||||
GlaxoSmithKline plc | 453 | 8,774 | ||||||
Halfords Group plc | 344 | 1,351 | ||||||
Imperial Brands plc | 121 | 4,090 | ||||||
Inchcape plc | 175 | 1,211 | ||||||
International Consolidated Airlines Group SA | 144 | 1,114 | ||||||
International Personal Finance plc | 298 | 680 | ||||||
ITV plc | 1,148 | 2,180 | ||||||
J Sainsbury plc | 325 | 1,290 | ||||||
JPJ Group plc * | 156 | 1,222 | ||||||
Kier Group plc | 62 | 694 | ||||||
Legal & General Group plc | 969 | 3,110 | ||||||
Lloyds Banking Group plc | 7,566 | 5,521 | ||||||
Mitchells & Butlers plc | 214 | 709 |
INVESTMENTS | SHARES (000) | VALUE ($000) | ||||||
United Kingdom — continued |
| |||||||
Morgan Sindall Group plc | 44 | 665 | ||||||
National Express Group plc | 141 | 719 | ||||||
NatWest Markets plc | 716 | 2,156 | ||||||
OneSavings Bank plc | 315 | 1,499 | ||||||
Persimmon plc | 50 | 1,476 | ||||||
Premier Foods plc * | 1,552 | 756 | ||||||
Prudential plc | 36 | 711 | ||||||
Rank Group plc | 285 | 583 | ||||||
Royal Mail plc | 212 | 975 | ||||||
Saga plc | 503 | 765 | ||||||
St Modwen Properties plc | 185 | 885 | ||||||
Staffline Group plc | 60 | 907 | ||||||
Stagecoach Group plc | 358 | 698 | ||||||
Taylor Wimpey plc | 964 | 1,984 | ||||||
U & I Group plc | 372 | 1,090 | ||||||
WPP plc | 168 | 1,900 | ||||||
|
| |||||||
69,736 | ||||||||
|
| |||||||
United States — 0.1% | ||||||||
TI Fluid Systems plc (a) | 259 | 684 | ||||||
|
| |||||||
Total Common Stocks |
| 514,906 | ||||||
|
| |||||||
Total Investments — 98.7% |
| 514,906 | ||||||
Other Assets Less Liabilities — 1.3% |
| 6,663 | ||||||
|
| |||||||
NET ASSETS — 100.0% |
| 521,569 | ||||||
|
|
Percentages indicated are based on net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
76 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Summary of Investments by Industry, October 31, 2018
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY | PERCENTAGE | |||
Banks | 18.8 | % | ||
Oil, Gas & Consumable Fuels | 10.7 | |||
Metals & Mining | 7.9 | |||
Pharmaceuticals | 7.1 | |||
Insurance | 6.6 | |||
Automobiles | 5.5 | |||
Trading Companies & Distributors | 4.1 | |||
Diversified Telecommunication Services | 3.6 | |||
Capital Markets | 2.8 | |||
Real Estate Management & Development | 2.5 | |||
Media | 2.4 | |||
Chemicals | 2.4 | |||
Household Durables | 2.0 | |||
Construction & Engineering | 2.0 | |||
Wireless Telecommunication Services | 1.8 | |||
Auto Components | 1.6 | |||
Specialty Retail | 1.3 | |||
Diversified Financial Services | 1.2 | |||
Multi-Utilities | 1.2 | |||
Tobacco | 1.0 | |||
Others (each less than 1.0%) | 13.5 |
Abbreviations | ||
CVA | Dutch Certification | |
OYJ | Public Limited Company | |
Preference | A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. | |
REIT | Real Estate Investment Trust | |
SCA | Limited partnership with share capital |
(a) | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
(b) | Amount rounds to less than one thousand. | |
* | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 77 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2018
(Amounts in thousands, except per share amounts)
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | known as JPMorgan | JPMorgan Global Research Enhanced Index Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in non-affiliates, at value | $ | 1,521,277 | $ | 4,559,631 | $ | 696,411 | $ | 5,749,921 | ||||||||
Investments in affiliates, at value | 42,721 | 58,479 | 51,037 | — | ||||||||||||
Cash | 447 | 349 | 91 | — | ||||||||||||
Foreign currency, at value | 11,216 | 3,148 | 781 | 1,401 | ||||||||||||
Deposits at broker for futures contracts | — | — | 1,766 | 2,542 | ||||||||||||
Receivables: | ||||||||||||||||
Due from custodian | — | — | 363 | — | ||||||||||||
Investment securities sold | 2,473 | 4,044 | 10,498 | 204,513 | ||||||||||||
Fund shares sold | 5 | 4,224 | 455 | 103 | ||||||||||||
Dividends from non-affiliates | 1,377 | 2,757 | 757 | 9,449 | ||||||||||||
Dividends from affiliates | 85 | 136 | 47 | 42 | ||||||||||||
Tax reclaims | 10 | 9 | 3,800 | 8,291 | ||||||||||||
Variation margin on futures contracts | — | — | 292 | 798 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 1,579,611 | 4,632,777 | 766,298 | 5,977,060 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | — | — | — | 101,919 | ||||||||||||
Investment securities purchased | 359 | 2 | 12,867 | — | ||||||||||||
Fund shares redeemed | 22,407 | 24,824 | 67,256 | 26,601 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | 856 | 2,688 | 431 | 884 | ||||||||||||
Administration fees | — | — | 54 | 291 | ||||||||||||
Distribution fees | 4 | 111 | 49 | — | ||||||||||||
Service fees | 3 | 223 | 84 | 36 | ||||||||||||
Custodian and accounting fees | 170 | 346 | 49 | 118 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | — | — | (a) | ||||||||||
Deferred foreign capital gains tax | — | 2,991 | — | — | ||||||||||||
Audit fees | 82 | 80 | 111 | 80 | ||||||||||||
Printing and mailing cost | 34 | 134 | 43 | 119 | ||||||||||||
Other | 39 | 173 | 7 | 36 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 23,954 | 31,572 | 80,951 | 130,084 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,555,657 | $ | 4,601,205 | $ | 685,347 | $ | 5,846,976 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
78 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | known as JPMorgan | JPMorgan Global Research Enhanced Index Fund | |||||||||||||
NET ASSETS: | ||||||||||||||||
Paid-in-Capital | $ | 1,590,907 | $ | 4,158,817 | $ | 766,506 | $ | 4,207,120 | ||||||||
Total distributable earnings (loss) (a) | (35,250 | ) | 442,388 | (81,159 | ) | 1,639,856 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 1,555,657 | $ | 4,601,205 | $ | 685,347 | $ | 5,846,976 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 10,653 | $ | 369,490 | $ | 124,681 | $ | — | ||||||||
Class C | 1,874 | 43,612 | 31,125 | — | ||||||||||||
Class I | 12,961 | 773,142 | 139,858 | 438,715 | ||||||||||||
Class L | — | 475,997 | 389,665 | — | ||||||||||||
Class R2 | — | 95 | — | — | ||||||||||||
Class R3 | — | 341 | — | — | ||||||||||||
Class R4 | — | 26 | — | — | ||||||||||||
Class R5 | 285 | 1,672 | — | — | ||||||||||||
Class R6 | 1,529,884 | 2,936,830 | 18 | 5,408,261 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,555,657 | $ | 4,601,205 | $ | 685,347 | $ | 5,846,976 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) ($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 892 | 15,498 | 5,419 | — | ||||||||||||
Class C | 158 | 1,890 | 1,526 | — | ||||||||||||
Class I | 1,070 | 31,626 | 5,956 | 19,959 | ||||||||||||
Class L | — | 19,324 | 16,444 | — | ||||||||||||
Class R2 | — | 4 | — | — | ||||||||||||
Class R3 | — | 14 | — | — | ||||||||||||
Class R4 | — | 1 | — | — | ||||||||||||
Class R5 | 23 | 68 | — | — | ||||||||||||
Class R6 | 126,793 | 119,363 | 1 | 248,508 | ||||||||||||
Net Asset Value (b): | ||||||||||||||||
Class A — Redemption price per share | $ | 11.95 | $ | 23.84 | $ | 23.01 | $ | — | ||||||||
Class C — Offering price per share (c) | 11.84 | 23.08 | 20.39 | — | ||||||||||||
Class I — Offering and redemption price per share | 12.12 | 24.45 | 23.48 | 21.98 | ||||||||||||
Class L — Offering and redemption price per share | — | 24.63 | 23.70 | — | ||||||||||||
Class R2 — Offering and redemption price per share | — | 23.73 | — | — | ||||||||||||
Class R3 — Offering and redemption price per share | — | 23.78 | — | — | ||||||||||||
Class R4 — Offering and redemption price per share | — | 24.42 | — | — | ||||||||||||
Class R5 — Offering and redemption price per share | 12.24 | 24.60 | — | — | ||||||||||||
Class R6 — Offering and redemption price per share | 12.07 | 24.60 | 23.70 | 21.76 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 12.61 | $ | 25.16 | $ | 24.28 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 1,522,094 | $ | 4,020,307 | $ | 734,527 | $ | 4,557,813 | ||||||||
Cost of investments in affiliates | 42,721 | 58,479 | 51,037 | — | ||||||||||||
Cost of foreign currency | 11,091 | 3,169 | 781 | 1,400 |
(a) | Total distributable earnings has been aggregated to conform to the current presentation requirements for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. |
(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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 79 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan Global Unconstrained Equity Fund | JPMorgan JPMorgan International Fund) | JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in non-affiliates, at value | $ | 3,862 | $ | 3,317,913 | $ | 4,098,853 | $ | 139,033 | ||||||||
Investments in affiliates, at value | — | 52,914 | 166,797 | — | ||||||||||||
Cash | — | 36 | 136 | 6 | ||||||||||||
Foreign currency, at value | 3 | 901 | 16 | 96 | ||||||||||||
Deposits at broker for futures contracts | — | 1,992 | — | — | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 163 | 13,435 | — | 1,270 | ||||||||||||
Fund shares sold | — | (a) | 35,531 | 46,522 | 144 | |||||||||||
Dividends from non-affiliates | 2 | 12,442 | 9,582 | 505 | ||||||||||||
Dividends from affiliates | — | (a) | 130 | 258 | 1 | |||||||||||
Tax reclaims | 15 | 8,449 | 8,496 | 505 | ||||||||||||
Variation margin on futures contracts | — | 422 | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency exchange contracts | — | — | — | 877 | ||||||||||||
Due from adviser | 9 | — | — | — | ||||||||||||
Other assets | 12 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 4,066 | 3,444,165 | 4,330,660 | 142,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | 11 | — | — | — | ||||||||||||
Investment securities purchased | — | 38,708 | 58,309 | 33 | ||||||||||||
Fund shares redeemed | — | 376 | 1,137 | 211 | ||||||||||||
Unrealized depreciation on forward foreign currency exchange contracts | — | — | — | 551 | ||||||||||||
Accrued liabilities: | ||||||||||||||||
Investment advisory fees | — | 1,428 | 1,684 | 37 | ||||||||||||
Administration fees | — | 24 | — | — | ||||||||||||
Distribution fees | 1 | 50 | 66 | 24 | ||||||||||||
Service fees | — | (a) | 34 | 63 | 19 | |||||||||||
Custodian and accounting fees | 7 | 103 | 110 | 12 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | — | — | — | — | (a) | |||||||||||
Audit fees | 76 | 79 | 81 | 78 | ||||||||||||
Printing and mailing cost | 1 | 44 | 53 | 7 | ||||||||||||
Other | 1 | 63 | 63 | 14 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 97 | 40,909 | 61,566 | 986 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 3,969 | $ | 3,403,256 | $ | 4,269,094 | $ | 141,451 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
80 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund | JPMorgan JPMorgan International Fund) | JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||
NET ASSETS: | ||||||||||||||||
Paid-in-Capital | $ | 3,902 | $ | 3,431,825 | $ | 3,902,425 | $ | 139,877 | ||||||||
Total distributable earnings (loss) (a) | 67 | (28,569 | ) | 366,669 | 1,574 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Net Assets | $ | 3,969 | $ | 3,403,256 | $ | 4,269,094 | $ | 141,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Class A | $ | 1,385 | $ | 156,382 | $ | 240,394 | $ | 68,420 | ||||||||
Class C | 567 | 1,652 | 18,899 | 12,371 | ||||||||||||
Class I | 1,852 | 60,739 | 179,831 | 47,701 | ||||||||||||
Class R2 | 20 | 31,619 | 1,833 | 270 | ||||||||||||
Class R5 | 20 | — | 19,516 | 177 | ||||||||||||
Class R6 | 125 | 3,152,864 | 3,808,621 | 12,512 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 3,969 | $ | 3,403,256 | $ | 4,269,094 | $ | 141,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding units of beneficial interest (shares) ($0.0001 par value; unlimited number of shares authorized): | ||||||||||||||||
Class A | 87 | 8,023 | 15,452 | 4,562 | ||||||||||||
Class C | 36 | 84 | 1,287 | 832 | ||||||||||||
Class I | 114 | 2,993 | 11,370 | 3,171 | ||||||||||||
Class R2 | 2 | 1,646 | 119 | 18 | ||||||||||||
Class R5 | 1 | — | 1,231 | 12 | ||||||||||||
Class R6 | 8 | 157,629 | 240,097 | 832 | ||||||||||||
Net Asset Value (b): | ||||||||||||||||
Class A — Redemption price per share | $ | 16.04 | $ | 19.49 | $ | 15.56 | $ | 15.00 | ||||||||
Class C — Offering price per share (c) | 15.79 | 19.70 | 14.68 | 14.88 | ||||||||||||
Class I — Offering and redemption price per share | 16.21 | 20.30 | 15.82 | 15.04 | ||||||||||||
Class R2 — Offering and redemption price per share | 16.15 | 19.21 | 15.44 | 14.96 | ||||||||||||
Class R5 — Offering and redemption price per share | 16.17 | — | 15.85 | 15.06 | ||||||||||||
Class R6 — Offering and redemption price per share | 16.17 | 20.00 | 15.86 | 15.04 | ||||||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | 5.25 | % | ||||||||
Class A maximum public offering price per share | $ | 16.93 | $ | 20.57 | $ | 16.42 | $ | 15.83 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cost of investments in non-affiliates | $ | 3,786 | $ | 3,384,062 | $ | 3,860,872 | $ | 140,870 | ||||||||
Cost of investments in affiliates | — | 52,914 | 166,797 | — | ||||||||||||
Cost of foreign currency | 3 | 906 | 19 | 97 |
(a) | Total distributable earnings has been aggregated to conform to the current presentation requirements for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. |
(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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 81 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2018 (continued)
(Amounts in thousands, except per share amounts)
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | JPMorgan International Value Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in non-affiliates, at value | $ | 4,612,781 | $ | 474,994 | $ | 514,906 | ||||||
Investments in affiliates, at value | 56,728 | 1,995 | — | |||||||||
Cash | 204 | 50 | — | |||||||||
Foreign currency, at value | 2,107 | 37 | 35 | |||||||||
Deposits at broker for futures contracts | 4,067 | — | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | — | 4,922 | 7,964 | |||||||||
Fund shares sold | 222 | 764 | 399 | |||||||||
Dividends from non-affiliates | 13,466 | 866 | 2,405 | |||||||||
Dividends from affiliates | 158 | 9 | 2 | |||||||||
Tax reclaims | 11,480 | 308 | 2,948 | |||||||||
Variation margin on futures contracts | 1,255 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,702,468 | 483,945 | 528,659 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES: | ||||||||||||
Payables: | ||||||||||||
Due to custodian | — | — | 2 | |||||||||
Interfund lending | — | — | 4,539 | |||||||||
Investment securities purchased | — | 3,943 | 177 | |||||||||
Fund shares redeemed | 680 | 4,421 | 1,536 | |||||||||
Accrued liabilities: | ||||||||||||
Investment advisory fees | 533 | 156 | 134 | |||||||||
Administration fees | 159 | — | — | |||||||||
Distribution fees | 46 | 33 | 66 | |||||||||
Service fees | 16 | 44 | 60 | |||||||||
Custodian and accounting fees | 157 | 15 | 55 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | — | (a) | — | — | ||||||||
Audit fees | 78 | 74 | 77 | |||||||||
Printing and mailing cost | 98 | 8 | 251 | |||||||||
Other | 83 | 21 | 193 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 1,850 | 8,715 | 7,090 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 4,700,618 | $ | 475,230 | $ | 521,569 | ||||||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
82 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | JPMorgan International Value Fund | ||||||||||
NET ASSETS: |
| |||||||||||
Paid-in-Capital | $ | 4,884,154 | $ | 520,290 | $ | 546,757 | ||||||
Total distributable earnings (loss) (a) | (183,536 | ) | (45,060 | ) | (25,188 | ) | ||||||
|
|
|
|
|
| |||||||
Total Net Assets | $ | 4,700,618 | $ | 475,230 | $ | 521,569 | ||||||
|
|
|
|
|
| |||||||
Net Assets: |
| |||||||||||
Class A | $ | 203,437 | $ | 84,325 | $ | 242,231 | ||||||
Class C | — | 22,532 | 14,055 | |||||||||
Class I | 152,610 | 189,061 | 66,291 | |||||||||
Class L | — | — | 73,651 | |||||||||
Class R2 | — | 773 | 1,025 | |||||||||
Class R5 | — | 3,341 | 70 | |||||||||
Class R6 | 4,344,571 | 175,198 | 124,246 | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 4,700,618 | $ | 475,230 | $ | 521,569 | ||||||
|
|
|
|
|
| |||||||
Outstanding units of beneficial interest (shares) ($0.0001 par value; unlimited number of shares authorized): | ||||||||||||
Class A | 12,117 | 4,622 | 19,472 | |||||||||
Class C | — | 1,253 | 1,169 | |||||||||
Class I | 8,974 | 10,227 | 5,197 | |||||||||
Class L | — | — | 5,800 | |||||||||
Class R2 | — | 43 | 84 | |||||||||
Class R5 | — | 181 | 5 | |||||||||
Class R6 | 256,075 | 9,468 | 9,805 | |||||||||
Net Asset Value (b): | ||||||||||||
Class A — Redemption price per share | $ | 16.79 | $ | 18.24 | $ | 12.44 | ||||||
Class C — Offering price per share (c) | — | 17.98 | 12.02 | |||||||||
Class I — Offering and redemption price per share | 17.01 | 18.49 | 12.76 | |||||||||
Class L — Offering and redemption price per share | — | — | 12.70 | |||||||||
Class R2 — Offering and redemption price per share | — | 18.14 | 12.20 | |||||||||
Class R5 — Offering and redemption price per share | — | 18.49 | 12.65 | |||||||||
Class R6 — Offering and redemption price per share | 16.97 | 18.50 | 12.67 | |||||||||
Class A maximum sales charge | 5.25 | % | 5.25 | % | 5.25 | % | ||||||
Class A maximum public offering price per share | $ | 17.72 | $ | 19.25 | $ | 13.13 | ||||||
|
|
|
|
|
| |||||||
Cost of investments in non-affiliates | $ | 4,871,769 | $ | 500,494 | $ | 556,243 | ||||||
Cost of investments in affiliates | 56,728 | 1,995 | — | |||||||||
Cost of foreign currency | 2,119 | 37 | 35 |
(a) | Total distributable earnings has been aggregated to conform to the current presentation requirements for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. |
(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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 83 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2018
(Amounts in thousands)
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | known as JPMorgan Intrepid | JPMorgan Global Research Enhanced Index Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from non-affiliates | $ | 269 | $ | — | (a) | $ | 7 | $ | 47 | |||||||
Interest income from affiliates | 11 | 5 | 1 | 2 | ||||||||||||
Dividend income from non-affiliates | 70,455 | 94,798 | 26,355 | 194,237 | ||||||||||||
Dividend income from affiliates | 729 | 1,758 | 360 | 1,448 | ||||||||||||
Non-cash dividend income from non-affiliates | 4,108 | — | 2,563 | — | ||||||||||||
Foreign taxes withheld | (6,005 | ) | (7,360 | ) | (3,661 | ) | (8,775 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 69,567 | 89,201 | 25,625 | 186,959 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 17,228 | 42,392 | 5,983 | 16,232 | ||||||||||||
Administration fees | 1,644 | 4,045 | 747 | 6,583 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 360 | 1,251 | 398 | — | ||||||||||||
Class C | 20 | 405 | 309 | — | ||||||||||||
Class R2 | — | — | (a) | — | — | |||||||||||
Class R3 | — | 1 | — | — | ||||||||||||
Service fees: | ||||||||||||||||
Class A | 360 | 1,251 | 398 | — | ||||||||||||
Class C | 7 | 135 | 103 | — | ||||||||||||
Class I | 144 | 2,054 | 452 | 3,793 | ||||||||||||
Class L | — | 513 | 539 | — | ||||||||||||
Class R2 | — | — | (a) | — | — | |||||||||||
Class R3 | — | 1 | — | — | ||||||||||||
Class R4 | — | — | (a) | — | — | |||||||||||
Class R5 | — | (a) | 2 | — | — | |||||||||||
Custodian and accounting fees | 1,290 | 2,791 | 201 | 725 | ||||||||||||
Interest expense to affiliates | 33 | — | (a) | 5 | 112 | |||||||||||
Professional fees | 129 | 140 | 132 | 198 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 33 | 43 | 28 | 56 | ||||||||||||
Printing and mailing costs | 58 | 382 | 51 | 331 | ||||||||||||
Registration and filing fees | 82 | 325 | 65 | 133 | ||||||||||||
Transfer agency fees (See Note 2.J.) | 32 | 153 | 23 | 68 | ||||||||||||
Other | 30 | 73 | 19 | 116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 21,450 | 55,957 | 9,453 | 28,347 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (6,730 | ) | (11,841 | ) | (241 | ) | (6,800 | ) | ||||||||
Less expense reimbursements | (11 | ) | (26 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 14,709 | 44,090 | 9,212 | 21,547 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 54,858 | 45,111 | 16,413 | 165,412 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in non-affiliates | 7,243 | (b) | (14,650 | )(c) | 2,026 | 638,457 | ||||||||||
Investments in affiliates | — | — | (a) | — | 36 | |||||||||||
Futures contracts | (2,733 | ) | — | 131 | 4,001 | |||||||||||
Foreign currency transactions | (871 | ) | (681 | ) | (87 | ) | (1,026 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 3,639 | (15,331 | ) | 2,070 | 641,468 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||
Investments in non-affiliates | (407,869 | )(d) | (763,460 | )(e) | (138,376 | ) | (657,116 | ) | ||||||||
Futures contracts | (564 | ) | — | 105 | (2,585 | ) | ||||||||||
Foreign currency translations | 149 | (34 | ) | (178 | ) | (79 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | (408,284 | ) | (763,494 | ) | (138,449 | ) | (659,780 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | (404,645 | ) | (778,825 | ) | (136,379 | ) | (18,312 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | (349,787 | ) | $ | (733,714 | ) | $ | (119,966 | ) | $ | 147,100 | |||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Net of foreign capital gains tax of approximately $(974,000) for JPMorgan Emerging Economies Fund. |
(c) | Net of foreign capital gains tax of approximately $(189,000) for JPMorgan Emerging Markets Equity Fund. |
(d) | Net of change in foreign capital gains tax of approximately $1,490,000 for JPMorgan Emerging Economies Fund. |
(e) | Net of change in foreign capital gains tax of approximately $(2,802,000) for JPMorgan Emerging Markets Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
84 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund | JPMorgan Advantage JPMorgan International Fund) | JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Interest income from non-affiliates | $ | — | (a) | $ | 46 | $ | — | (a) | $ | — | (a) | |||||
Interest income from affiliates | — | (a) | — | (a) | 1 | — | (a) | |||||||||
Dividend income from non-affiliates | 83 | 120,810 | 137,340 | 8,476 | ||||||||||||
Dividend income from affiliates | 1 | 1,245 | 1,484 | 33 | ||||||||||||
Foreign taxes withheld | (3 | ) | (11,114 | ) | (9,484 | ) | (731 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investment income | 81 | 110,987 | 129,341 | 7,778 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
EXPENSES: | ||||||||||||||||
Investment advisory fees | 32 | 21,235 | 31,039 | 1,348 | ||||||||||||
Administration fees | 4 | 2,870 | 3,596 | 156 | ||||||||||||
Distribution fees: | ||||||||||||||||
Class A | 4 | 511 | 708 | 210 | ||||||||||||
Class C | 4 | 14 | 170 | 105 | ||||||||||||
Class R2 | — | (a) | 126 | 11 | 2 | |||||||||||
Service fees: | ||||||||||||||||
Class A | 4 | 511 | 708 | 210 | ||||||||||||
Class C | 1 | 5 | 57 | 35 | ||||||||||||
Class I | 6 | 142 | 442 | 199 | ||||||||||||
Class R2 | — | (a) | 63 | 5 | 1 | |||||||||||
Class R5 | — | (a) | — | 22 | — | (a) | ||||||||||
Custodian and accounting fees | 36 | 582 | 654 | 74 | ||||||||||||
Interest expense to affiliates | — | (a) | 18 | 13 | 6 | |||||||||||
Professional fees | 79 | 163 | 153 | 74 | ||||||||||||
Trustees’ and Chief Compliance Officer’s fees | 24 | 38 | 41 | 25 | ||||||||||||
Printing and mailing costs | — | 82 | 90 | 24 | ||||||||||||
Registration and filing fees | 55 | 108 | 146 | 39 | ||||||||||||
Transfer agency fees (See Note 2.J.) | 2 | 96 | 80 | 24 | ||||||||||||
Other | 7 | 60 | 65 | 9 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 258 | 26,624 | 38,000 | 2,541 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less fees waived | (40 | ) | (6,020 | ) | (14,103 | ) | (905 | ) | ||||||||
Less expense reimbursements | (191 | ) | (30 | ) | (7 | ) | — | (a) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net expenses | 27 | 20,574 | 23,890 | 1,636 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 54 | 90,413 | 105,451 | 6,142 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in non-affiliates | (32 | ) | (31,425 | ) | 93,152 | 14,735 | ||||||||||
Investments in affiliates | — | — | — | 1 | ||||||||||||
Futures contracts | — | (5,563 | ) | — | — | |||||||||||
Foreign currency transactions | (2 | ) | (523 | ) | (1,329 | ) | (100 | ) | ||||||||
Forward foreign currency exchange contracts | — | — | — | (497 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (34 | ) | (37,511 | ) | 91,823 | 14,139 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||||||
Investments in non-affiliates | (135 | ) | (453,900 | ) | (737,881 | ) | (30,647 | ) | ||||||||
Futures contracts | — | (1,392 | ) | — | — | |||||||||||
Foreign currency translations | — | (a) | (303 | ) | (282 | ) | (9 | ) | ||||||||
Forward foreign currency exchange contracts | — | — | — | 654 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation/depreciation | (135 | ) | (455,595 | ) | (738,163 | ) | (30,002 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized/unrealized gains (losses) | (169 | ) | (493,106 | ) | (646,340 | ) | (15,863 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | $ | (115 | ) | $ | (402,693 | ) | $ | (540,889 | ) | $ | (9,721 | ) | ||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 85 |
Table of Contents
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2018 (continued)
(Amounts in thousands)
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | JPMorgan International Value Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Interest income from non-affiliates | $ | 269 | $ | — | (a) | $ | 5 | |||||
Interest income from affiliates | 48 | — | (a) | — | (a) | |||||||
Dividend income from non-affiliates | 182,619 | 15,013 | 27,839 | |||||||||
Dividend income from affiliates | 2,063 | 195 | 143 | |||||||||
Foreign taxes withheld | (14,812 | ) | (924 | ) | (2,408 | ) | ||||||
|
|
|
|
|
| |||||||
Total investment income | 170,187 | 14,284 | 25,579 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES: | ||||||||||||
Investment advisory fees | 10,939 | 3,617 | 4,294 | |||||||||
Administration fees | 4,436 | 419 | 581 | |||||||||
Distribution fees: | ||||||||||||
Class A | 661 | 226 | 774 | |||||||||
Class C | — | 188 | 136 | |||||||||
Class R2 | — | 3 | 6 | |||||||||
Service fees: | ||||||||||||
Class A | 661 | 226 | 774 | |||||||||
Class C | — | 63 | 45 | |||||||||
Class I | 1,551 | 567 | 323 | |||||||||
Class L | — | — | 138 | |||||||||
Class R2 | — | 1 | 3 | |||||||||
Class R5 | — | 3 | — | (a) | ||||||||
Custodian and accounting fees | 906 | 142 | 180 | |||||||||
Interest expense to affiliates | 52 | 7 | 21 | |||||||||
Professional fees | 203 | 71 | 150 | |||||||||
Trustees’ and Chief Compliance Officer’s fees | 45 | 26 | 27 | |||||||||
Printing and mailing costs | 346 | 43 | 125 | |||||||||
Registration and filing fees | 162 | 153 | 87 | |||||||||
Transfer agency fees (See Note 2.J.) | 104 | 32 | 28 | |||||||||
Other | 107 | 16 | 22 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 20,173 | 5,803 | 7,714 | |||||||||
|
|
|
|
|
| |||||||
Less fees waived | (5,190 | ) | (1,875 | ) | (1,805 | ) | ||||||
Less expense reimbursements | — | (2 | ) | — | (a) | |||||||
|
|
|
|
|
| |||||||
Net expenses | 14,983 | 3,926 | 5,909 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 155,204 | 10,358 | 19,670 | |||||||||
|
|
|
|
|
| |||||||
REALIZED/UNREALIZED GAINS (LOSSES): | ||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||
Investments in non-affiliates | (66,474 | ) | (26,102 | ) | 32,541 | |||||||
Investments in affiliates | — | (a) | — | — | ||||||||
Futures contracts | 35,043 | 76 | (1,495 | ) | ||||||||
Foreign currency transactions | 1,331 | (13 | ) | (222 | ) | |||||||
Forward foreign currency exchange contracts | — | — | (917 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | (30,100 | ) | (26,039 | ) | 29,907 | |||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation on: | ||||||||||||
Investments in non-affiliates | (577,525 | ) | (65,965 | ) | (113,631 | ) | ||||||
Futures contracts | (10,776 | ) | — | — | ||||||||
Foreign currency translations | (492 | ) | (16 | ) | 6 | |||||||
Forward foreign currency exchange contracts | — | — | (170 | ) | ||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation/depreciation | (588,793 | ) | (65,981 | ) | (113,795 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized/unrealized gains (losses) | (618,893 | ) | (92,020 | ) | (83,888 | ) | ||||||
|
|
|
|
|
| |||||||
Change in net assets resulting from operations | $ | (463,689 | ) | $ | (81,662 | ) | $ | (64,218 | ) | |||
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
86 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED
(Amounts in thousands)
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 54,858 | $ | 41,242 | $ | 45,111 | $ | 27,237 | ||||||||
Net realized gain (loss) | 3,639 | 158,485 | (15,331 | ) | (16,512 | ) | ||||||||||
Change in net unrealized appreciation/depreciation | (408,284 | ) | 303,356 | (763,494 | ) | 907,407 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (349,787 | ) | 503,083 | (733,714 | ) | 918,132 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||||||||||
Class A | (3,219 | ) | (1,900 | ) | (788 | ) | (1,930 | ) | ||||||||
Class C | (37 | ) | (14 | ) | (4 | ) | (12 | ) | ||||||||
Class I | (1,440 | ) | (709 | ) | (2,829 | ) | (1,895 | ) | ||||||||
Class L | — | — | (2,054 | ) | (3,193 | ) | ||||||||||
Class R2 (b) | — | — | — | (c) | — | |||||||||||
Class R3 (b) | — | — | — | (c) | — | |||||||||||
Class R4 (b) | — | — | — | (c) | — | |||||||||||
Class R5 | (8 | ) | (23 | ) | (1 | ) | — | (c) | ||||||||
Class R6 | (39,227 | ) | (24,949 | ) | (16,464 | ) | (16,962 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (43,931 | ) | (27,595 | ) | (22,140 | ) | (23,992 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (88,320 | ) | (217,505 | ) | 909,171 | 429,170 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (482,038 | ) | 257,983 | 153,317 | 1,323,310 | |||||||||||
Beginning of period | 2,037,695 | 1,779,712 | 4,447,888 | 3,124,578 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 1,555,657 | $ | 2,037,695 | $ | 4,601,205 | $ | 4,447,888 | ||||||||
|
|
|
|
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | |||||||
Class A | ||||||||
From net investment income | (1,900 | ) | (1,930 | ) | ||||
Class C | ||||||||
From net investment income | (14 | ) | (12 | ) | ||||
Class I | ||||||||
From net investment income | (709 | ) | (1,895 | ) | ||||
Class L | ||||||||
From net investment income | — | (3,193 | ) | |||||
Class R5 | ||||||||
From net investment income | (23 | ) | — | (c) | ||||
Class R6 | ||||||||
From net investment income | (24,949 | ) | (16,962 | ) |
(b) | Commencement of offering of class of shares effective July 31, 2017, for JPMorgan Emerging Markets Equity Fund. |
(c) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 87 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) | JPMorgan Global Research Enhanced Index Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 16,413 | $ | 15,911 | $ | 165,412 | $ | 149,058 | ||||||||
Net realized gain (loss) | 2,070 | 82,878 | 641,468 | 148,203 | ||||||||||||
Change in net unrealized appreciation/depreciation | (138,449 | ) | 95,771 | (659,780 | ) | 1,306,055 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (119,966 | ) | 194,560 | 147,100 | 1,603,316 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||||||||||
Class A (b) | (2,283 | ) | (2,962 | ) | — | (1 | ) | |||||||||
Class C (b) | (435 | ) | (764 | ) | — | — | (c) | |||||||||
Class I | (2,988 | ) | (2,896 | ) | (14,541 | ) | (155,975 | ) | ||||||||
Class L | (9,949 | ) | (10,351 | ) | — | — | ||||||||||
Class R2 (b) | — | — | — | — | (c) | |||||||||||
Class R6 (d)(e) | — | — | (144,723 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (15,655 | ) | (16,973 | ) | (159,264 | ) | (155,976 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | (156,528 | ) | 17,522 | (2,804,320 | ) | 308,814 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (292,149 | ) | 195,109 | (2,816,484 | ) | 1,756,154 | ||||||||||
Beginning of period | 977,496 | 782,387 | 8,663,460 | 6,907,306 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 685,347 | $ | 977,496 | $ | 5,846,976 | $ | 8,663,460 | ||||||||
|
|
|
|
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan Europe Dynamic Fund | JPMorgan Global Research Enhanced Index Fund | |||||||
Class A | ||||||||
From net investment income | (2,962 | ) | (1 | ) | ||||
Class C | ||||||||
From net investment income | (764 | ) | — | (c) | ||||
Class I | ||||||||
From net investment income | (2,896 | ) | (155,975 | ) | ||||
Class L | ||||||||
From net investment income | (10,351 | ) | — | |||||
Class R2 | ||||||||
From net investment income | — | — | (c) |
(b) | Liquidated on August 11, 2017 for JPMorgan Global Research Enhanced Index Fund. |
(c) | Amount rounds to less than one thousand. |
(d) | Commencement of offering of class of shares effective October 1, 2018, for JPMorgan Europe Dynamic Fund. |
(e) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan Global Research Enhanced Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
88 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund | JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 54 | $ | 23 | $ | 90,413 | $ | 60,855 | ||||||||
Net realized gain (loss) | (34 | ) | 185 | (37,511 | ) | 160,672 | ||||||||||
Change in net unrealized appreciation/depreciation | (135 | ) | 212 | (455,595 | ) | 402,080 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (115 | ) | 420 | (402,693 | ) | 623,607 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||||||||||
Class A | (56 | ) | — | (4,177 | ) | (3,117 | ) | |||||||||
Class C | (23 | ) | — | (19 | ) | (28 | ) | |||||||||
Class I | (90 | ) | (3 | ) | (1,091 | ) | (1,014 | ) | ||||||||
Class R2 | (1 | ) | — | (172 | ) | (9 | ) | |||||||||
Class R5 | (1 | ) | — | (b) | — | — | ||||||||||
Class R6 | (6 | ) | — | (b) | (61,869 | ) | (66,113 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (177 | ) | (3 | ) | (67,328 | ) | (70,281 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 712 | 1,460 | 717,668 | (92,031 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 420 | 1,877 | 247,647 | 461,295 | ||||||||||||
Beginning of period | 3,549 | 1,672 | 3,155,609 | 2,694,314 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 3,969 | $ | 3,549 | $ | 3,403,256 | $ | 3,155,609 | ||||||||
|
|
|
|
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan Global Unconstrained Equity Fund | JPMorgan International Advantage Fund | |||||||
Class A | ||||||||
From net investment income | — | (3,117 | ) | |||||
Class C | ||||||||
From net investment income | — | (28 | ) | |||||
Class I | ||||||||
From net investment income | (3 | ) | (1,014 | ) | ||||
Class R2 | ||||||||
From net investment income | — | (9 | ) | |||||
Class R5 | ||||||||
From net investment income | — | (b) | — | |||||
Class R6 | ||||||||
From net investment income | — | (b) | (66,113 | ) |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 89 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 105,451 | $ | 66,082 | $ | 6,142 | $ | 4,955 | ||||||||
Net realized gain (loss) | 91,823 | (9,296 | ) | 14,139 | (181 | ) | ||||||||||
Change in net unrealized appreciation/depreciation | (738,163 | ) | 803,981 | (30,002 | ) | 24,302 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (540,889 | ) | 860,767 | (9,721 | ) | 29,076 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||||||||||
Class A | (4,237 | ) | (611 | ) | (2,651 | ) | (2,272 | ) | ||||||||
Class C | (224 | ) | (22 | ) | (380 | ) | (346 | ) | ||||||||
Class I | (2,341 | ) | (394 | ) | (2,728 | ) | (2,676 | ) | ||||||||
Class R2 | (26 | ) | (2 | ) | (8 | ) | (11 | ) | ||||||||
Class R5 | (355 | ) | (165 | ) | (11 | ) | (47 | ) | ||||||||
Class R6 | (59,589 | ) | (16,643 | ) | (515 | ) | (30 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (66,772 | ) | (17,837 | ) | (6,293 | ) | (5,382 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 869,664 | (260,305 | ) | (42,991 | ) | 42,607 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | 262,003 | 582,625 | (59,005 | ) | 66,301 | |||||||||||
Beginning of period | 4,007,091 | 3,424,466 | 200,456 | 134,155 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 4,269,094 | $ | 4,007,091 | $ | 141,451 | $ | 200,456 | ||||||||
|
|
|
|
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||
Class A | ||||||||
From net investment income | (611 | ) | (2,272 | ) | ||||
Class C | ||||||||
From net investment income | (22 | ) | (346 | ) | ||||
Class I | ||||||||
From net investment income | (394 | ) | (2,676 | ) | ||||
Class R2 | ||||||||
From net investment income | (2 | ) | (11 | ) | ||||
Class R5 | ||||||||
From net investment income | (165 | ) | (47 | ) | ||||
Class R6 | ||||||||
From net investment income | (16,643 | ) | (30 | ) |
SEE NOTES TO FINANCIAL STATEMENTS.
90 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 155,204 | $ | 44,850 | $ | 10,358 | $ | 2,308 | ||||||||
Net realized gain (loss) | (30,100 | ) | 35,372 | (26,039 | ) | 2,079 | ||||||||||
Change in net unrealized appreciation/depreciation | (588,793 | ) | 305,035 | (65,981 | ) | 40,014 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from operations | (463,689 | ) | 385,257 | (81,662 | ) | 44,401 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||||||||||
Class A | (6,079 | ) | (1,511 | ) | (451 | ) | (259 | ) | ||||||||
Class C (b) | — | (227 | ) | (86 | ) | (67 | ) | |||||||||
Class I | (22,656 | ) | (32,213 | ) | (1,315 | ) | (257 | ) | ||||||||
Class R2 (b) | — | (254 | ) | (2 | ) | — | (c) | |||||||||
Class R5 | — | — | (1 | ) | — | (c) | ||||||||||
Class R6 (d) | (79,541 | ) | — | (1,288 | ) | (1,980 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (108,276 | ) | (34,205 | ) | (3,143 | ) | (2,563 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Change in net assets resulting from capital transactions | 233,881 | 3,352,439 | 202,406 | 206,016 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
NET ASSETS: | ||||||||||||||||
Change in net assets | (338,084 | ) | 3,703,491 | 117,601 | 247,854 | |||||||||||
Beginning of period | 5,038,702 | 1,335,211 | 357,629 | 109,775 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 4,700,618 | $ | 5,038,702 | $ | 475,230 | $ | 357,629 | ||||||||
|
|
|
|
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | |||||||
Class A | ||||||||
From net investment income | (1,511 | ) | (259 | ) | ||||
Class C | ||||||||
From net investment income | (227 | ) | (67 | ) | ||||
Class I | ||||||||
From net investment income | (32,213 | ) | (257 | ) | ||||
Class R2 | ||||||||
From net investment income | (254 | ) | — | (c) | ||||
Class R5 | ||||||||
From net investment income | — | — | (c) | |||||
Class R6 | ||||||||
From net investment income | — | (1,980 | ) |
(b) | Liquidated on October 9, 2017 for JPMorgan International Research Enhanced Equity Fund. |
(c) | Amount rounds to less than one thousand. |
(d) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan International Research Enhanced Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 91 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan International Value Fund | ||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | ||||||||
Net investment income (loss) | $ | 19,670 | $ | 17,446 | ||||
Net realized gain (loss) | 29,907 | 71,880 | ||||||
Change in net unrealized appreciation/depreciation | (113,795 | ) | 107,859 | |||||
|
|
|
| |||||
Change in net assets resulting from operations | (64,218 | ) | 197,185 | |||||
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: (a) | ||||||||
Class A | (6,784 | ) | (18,922 | ) | ||||
Class C | (316 | ) | (1,312 | ) | ||||
Class I | (3,872 | ) | (8,933 | ) | ||||
Class L | (4,302 | ) | (30,468 | ) | ||||
Class R2 | (27 | ) | (59 | ) | ||||
Class R5 | (2 | ) | (1 | ) | ||||
Class R6 | (2,922 | ) | (1,834 | ) | ||||
|
|
|
| |||||
Total distributions to shareholders | (18,225 | ) | (61,529 | ) | ||||
|
|
|
| |||||
CAPITAL TRANSACTIONS: | ||||||||
Change in net assets resulting from capital transactions | (189,775 | ) | (650,089 | ) | ||||
|
|
|
| |||||
NET ASSETS: | ||||||||
Change in net assets | (272,218 | ) | (514,433 | ) | ||||
Beginning of period | 793,787 | 1,308,220 | ||||||
|
|
|
| |||||
End of period | $ | 521,569 | $ | 793,787 | ||||
|
|
|
|
(a) | The prior period distributions have been reclassified to conform to current period presentation for the adoption of the Securities and Exchange Commission’s Disclosure Update and Simplification Rule. See Note 8. Prior periods balances were as follows: |
JPMorgan International Value Fund | ||||
Class A | ||||
From net investment income | (18,922 | ) | ||
Class C | ||||
From net investment income | (1,312 | ) | ||
Class I | ||||
From net investment income | (8,933 | ) | ||
Class L | ||||
From net investment income | (30,468 | ) | ||
Class R2 | ||||
From net investment income | (59 | ) | ||
Class R5 | ||||
From net investment income | (1 | ) | ||
Class R6 | ||||
From net investment income | (1,834 | ) |
SEE NOTES TO FINANCIAL STATEMENTS.
92 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 47,288 | $ | 52,611 | $ | 170,141 | $ | 183,624 | ||||||||
Distributions reinvested | 3,218 | 1,900 | 781 | 1,872 | ||||||||||||
Cost of shares redeemed | (200,853 | ) | (60,941 | ) | (268,020 | ) | (181,184 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (150,347 | ) | $ | (6,430 | ) | $ | (97,098 | ) | $ | 4,312 | |||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 597 | $ | 631 | $ | 18,903 | $ | 17,118 | ||||||||
Distributions reinvested | 37 | 14 | 4 | 12 | ||||||||||||
Cost of shares redeemed | (1,042 | ) | (984 | ) | (15,849 | ) | (17,463 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (408 | ) | $ | (339 | ) | $ | 3,058 | $ | (333 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 31,661 | $ | 17,416 | $ | 573,932 | $ | 331,493 | ||||||||
Distributions reinvested | 785 | 360 | 2,460 | 1,623 | ||||||||||||
Cost of shares redeemed | (74,945 | ) | (22,430 | ) | (295,493 | ) | (109,592 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (42,499 | ) | $ | (4,654 | ) | $ | 280,899 | $ | 223,524 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 284,033 | $ | 402,572 | ||||||||
Distributions reinvested | — | — | 1,682 | 2,482 | ||||||||||||
Cost of shares redeemed | — | — | (159,480 | ) | (496,701 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | — | $ | — | $ | 126,235 | $ | (91,647 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 94 | $ | 20 | ||||||||
Distributions reinvested | — | — | — | (b) | — | |||||||||||
Cost of shares redeemed | — | — | (5 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | 89 | $ | 20 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 460 | $ | 20 | ||||||||
Distributions reinvested | — | — | — | (b) | — | |||||||||||
Cost of shares redeemed | — | — | (40 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R3 capital transactions | $ | — | $ | — | $ | 420 | $ | 20 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 42 | $ | 20 | ||||||||
Distributions reinvested | — | — | — | (b) | — | |||||||||||
Cost of shares redeemed | — | — | (30 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R4 capital transactions | $ | — | $ | — | $ | 12 | $ | 20 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 160 | $ | 324 | $ | 2,991 | $ | 185 | ||||||||
Distributions reinvested | 8 | 23 | 1 | — | (b) | |||||||||||
Cost of shares redeemed | (234 | ) | (1,787 | ) | (1,077 | ) | — | (b) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | (66 | ) | $ | (1,440 | ) | $ | 1,915 | $ | 185 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 260,203 | $ | 124,871 | $ | 968,052 | $ | 672,770 | ||||||||
Distributions reinvested | 39,227 | 24,949 | 16,155 | 16,658 | ||||||||||||
Cost of shares redeemed | (194,430 | ) | (354,462 | ) | (390,566 | ) | (396,359 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 105,000 | $ | (204,642 | ) | $ | 593,641 | $ | 293,069 | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (88,320 | ) | $ | (217,505 | ) | $ | 909,171 | $ | 429,170 | ||||||
|
|
|
|
|
|
|
|
(a) | Commencement of offering of class of shares effective July 31, 2017, for JPMorgan Emerging Markets Equity Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 93 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Emerging Economies Fund | JPMorgan Emerging Markets Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A |
| |||||||||||||||
Issued | 3,245 | 4,043 | 5,977 | 7,615 | ||||||||||||
Reinvested | 220 | 173 | 28 | 93 | ||||||||||||
Redeemed | (14,776 | ) | (4,857 | ) | (9,556 | ) | (7,550 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (11,311 | ) | (641 | ) | (3,551 | ) | 158 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 40 | 49 | 679 | 702 | ||||||||||||
Reinvested | 2 | 1 | — | (a) | 1 | |||||||||||
Redeemed | (75 | ) | (74 | ) | (598 | ) | (762 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (33 | ) | (24 | ) | 81 | (59 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 2,182 | 1,347 | 19,902 | 13,114 | ||||||||||||
Reinvested | 53 | 33 | 84 | 79 | ||||||||||||
Redeemed | (5,448 | ) | (1,678 | ) | (10,613 | ) | (4,464 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (3,213 | ) | (298 | ) | 9,373 | 8,729 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | — | — | 9,765 | 16,403 | ||||||||||||
Reinvested | — | — | 57 | 119 | ||||||||||||
Redeemed | — | — | (5,623 | ) | (18,771 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | — | — | 4,199 | (2,249 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (b) | ||||||||||||||||
Issued | — | — | 3 | 1 | ||||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
Redeemed | — | — | — | (a) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | 3 | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R3 (b) | ||||||||||||||||
Issued | — | — | 15 | 1 | ||||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
Redeemed | — | — | (2 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R3 Shares | — | — | 13 | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R4 (b) | ||||||||||||||||
Issued | — | — | 1 | 1 | ||||||||||||
Reinvested | — | — | — | (a) | — | |||||||||||
Redeemed | — | — | (1 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R4 Shares | — | — | — | (a) | 1 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 9 | 26 | 100 | 6 | ||||||||||||
Reinvested | 1 | 2 | — | (a) | — | (a) | ||||||||||
Redeemed | (15 | ) | (136 | ) | (39 | ) | — | (a) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | (5 | ) | (108 | ) | 61 | 6 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 17,691 | 9,667 | 33,718 | 25,331 | ||||||||||||
Reinvested | 2,667 | 2,258 | 550 | 804 | ||||||||||||
Redeemed | (13,961 | ) | (26,789 | ) | (13,768 | ) | (15,462 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 6,397 | (14,864 | ) | 20,500 | 10,673 | |||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Commencement of offering of class of shares effective July 31, 2017, for JPMorgan Emerging Markets Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
94 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) | JPMorgan Global Research Enhanced Index Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A (a) | ||||||||||||||||
Proceeds from shares issued | $ | 26,652 | $ | 39,901 | $ | — | $ | — | ||||||||
Distributions reinvested | 2,203 | 2,847 | — | 1 | ||||||||||||
Cost of shares redeemed | (46,333 | ) | (72,459 | ) | — | (24 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (17,478 | ) | $ | (29,711 | ) | $ | — | $ | (23 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class C (a) | ||||||||||||||||
Proceeds from shares issued | $ | 6,854 | $ | 10,881 | $ | — | $ | — | ||||||||
Distributions reinvested | 395 | 683 | — | — | (b) | |||||||||||
Cost of shares redeemed | (16,722 | ) | (24,752 | ) | — | (23 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (9,473 | ) | $ | (13,188 | ) | $ | — | $ | (23 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 40,086 | $ | 79,324 | $ | 388,984 | $ | 1,447,613 | ||||||||
Distributions reinvested | 2,739 | 1,243 | 14,320 | 19,299 | ||||||||||||
Cost of shares redeemed | (63,918 | ) | (68,901 | ) | (8,753,055 | ) | (1,158,029 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (21,093 | ) | $ | 11,666 | $ | (8,349,751 | ) | $ | 308,883 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Proceeds from shares issued | $ | 55,265 | $ | 132,401 | $ | — | $ | — | ||||||||
Distributions reinvested | 8,412 | 9,412 | — | — | ||||||||||||
Cost of shares redeemed | (172,181 | ) | (93,058 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | (108,504 | ) | $ | 48,755 | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Distributions reinvested | $ | — | $ | — | $ | — | $ | — | (b) | |||||||
Cost of shares redeemed | — | — | — | (23 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | $ | — | $ | (23 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) (d) | ||||||||||||||||
Proceeds from shares issued | $ | 20 | $ | — | $ | 9,245,823 | $ | — | ||||||||
Distributions reinvested | — | — | 144,635 | — | ||||||||||||
Cost of shares redeemed | — | — | (3,845,027 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 20 | $ | — | $ | 5,545,431 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | (156,528 | ) | $ | 17,522 | $ | (2,804,320 | ) | $ | 308,814 | ||||||
|
|
|
|
|
|
|
|
(a) | Liquidated on August 11, 2017 for JPMorgan Global Research Enhanced Index Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective October 1, 2018, for JPMorgan Europe Dynamic Fund. |
(d) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan Global Research Enhanced Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 95 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) | JPMorgan Global Research Enhanced Index Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
SHARE TRANSACTIONS: |
| |||||||||||||||
Class A (a) |
| |||||||||||||||
Issued | 1,011 | 1,592 | — | — | ||||||||||||
Reinvested | 83 | 130 | — | — | (b) | |||||||||||
Redeemed | (1,777 | ) | (3,039 | ) | — | (1 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (683 | ) | (1,317 | ) | — | (1 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class C (a) | ||||||||||||||||
Issued | 288 | 489 | — | — | ||||||||||||
Reinvested | 17 | 35 | — | — | (b) | |||||||||||
Redeemed | (721 | ) | (1,152 | ) | — | (1 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (416 | ) | (628 | ) | — | (1 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 1,455 | 3,145 | 17,041 | 71,810 | ||||||||||||
Reinvested | 102 | 56 | 633 | 1,023 | ||||||||||||
Redeemed | (2,401 | ) | (2,885 | ) | (388,734 | ) | (57,817 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (844 | ) | 316 | (371,060 | ) | 15,016 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L | ||||||||||||||||
Issued | 2,041 | 5,289 | — | — | ||||||||||||
Reinvested | 310 | 421 | — | — | ||||||||||||
Redeemed | (6,665 | ) | (3,725 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | (4,314 | ) | 1,985 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Reinvested | — | — | — | — | (b) | |||||||||||
Redeemed | — | — | — | (1 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | — | (1 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) (d) | ||||||||||||||||
Issued | 1 | — | 411,331 | — | ||||||||||||
Reinvested | — | — | 6,466 | — | ||||||||||||
Redeemed | — | — | (169,289 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 1 | — | 248,508 | — | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Liquidated on August 11, 2017 for JPMorgan Global Research Enhanced Index Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective October 1, 2018, for JPMorgan Europe Dynamic Fund. |
(d) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan Global Research Enhanced Index Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
96 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan Global Unconstrained Equity Fund | JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 943 | $ | 1,003 | $ | 51,817 | $ | 90,711 | ||||||||
Distributions reinvested | 55 | — | 4,173 | 3,114 | ||||||||||||
Cost of shares redeemed | (672 | ) | (379 | ) | (109,134 | ) | (62,079 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | 326 | $ | 624 | $ | (53,144 | ) | $ | 31,746 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 325 | $ | 230 | $ | 733 | $ | 455 | ||||||||
Distributions reinvested | 23 | — | 19 | 26 | ||||||||||||
Cost of shares redeemed | (118 | ) | (101 | ) | (631 | ) | (1,359 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | 230 | $ | 129 | $ | 121 | $ | (878 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 1,312 | $ | 1,004 | $ | 29,375 | $ | 39,085 | ||||||||
Distributions reinvested | 86 | 3 | 1,088 | 451 | ||||||||||||
Cost of shares redeemed | (1,254 | ) | (396 | ) | (15,042 | ) | (11,981 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 144 | $ | 611 | $ | 15,421 | $ | 27,555 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class L (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | — | $ | 39 | ||||||||
Cost of shares redeemed | — | — | — | (23,795 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class L capital transactions | $ | — | $ | — | $ | — | $ | (23,756 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | (b) | $ | 36,008 | $ | 8,299 | |||||||
Distributions reinvested | — | — | 165 | 4 | ||||||||||||
Cost of shares redeemed | — | — | (8,962 | ) | (321 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | — | (b) | $ | 27,211 | $ | 7,982 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | (b) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | $ | — | (b) | $ | — | $ | — | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 8 | $ | 96 | $ | 857,123 | $ | 257,105 | ||||||||
Distributions reinvested | 5 | — | 61,869 | 66,113 | ||||||||||||
Cost of shares redeemed | (1 | ) | — | (b) | (190,933 | ) | (457,898 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 12 | $ | 96 | $ | 728,059 | $ | (134,680 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 712 | $ | 1,460 | $ | 717,668 | $ | (92,031 | ) | |||||||
|
|
|
|
|
|
|
|
(a) | Liquidated on December 8, 2016 for JPMorgan International Advantage Fund. |
(b) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 97 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan Global Unconstrained Equity Fund | JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 56 | 61 | 2,376 | 4,549 | ||||||||||||
Reinvested | 3 | — | 191 | 171 | ||||||||||||
Redeemed | (40 | ) | (23 | ) | (5,011 | ) | (3,165 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | 19 | 38 | (2,444 | ) | 1,555 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 18 | 15 | 33 | 22 | ||||||||||||
Reinvested | 2 | — | 1 | 1 | ||||||||||||
Redeemed | (7 | ) | (7 | ) | (29 | ) | (67 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | 13 | 8 | 5 | (44 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 76 | 59 | 1,323 | 1,985 | ||||||||||||
Reinvested | 5 | — | (a) | 48 | 24 | |||||||||||
Redeemed | (72 | ) | (24 | ) | (665 | ) | (574 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 9 | 35 | 706 | 1,435 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class L (b) | ||||||||||||||||
Issued | — | — | — | 2 | ||||||||||||
Redeemed | — | — | — | (1,238 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class L Shares | — | — | — | (1,236 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | — | — | (a) | 1,658 | 386 | |||||||||||
Reinvested | — | — | 7 | — | (a) | |||||||||||
Redeemed | — | — | (418 | ) | (15 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | — | (a) | 1,247 | 371 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | — | — | (a) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | — | (a) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 1 | 6 | 37,675 | 13,047 | ||||||||||||
Reinvested | — | (a) | — | 2,771 | 3,555 | |||||||||||
Redeemed | — | (a) | — | (a) | (8,343 | ) | (22,597 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 1 | 6 | 32,103 | (5,995 | ) | |||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
(b) | Liquidated on December 8, 2016 for JPMorgan International Advantage Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
98 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 100,845 | $ | 115,322 | $ | 22,501 | $ | 39,144 | ||||||||
Distributions reinvested | 4,198 | 605 | 2,651 | 2,269 | ||||||||||||
Cost of shares redeemed | (131,999 | ) | (86,838 | ) | (33,621 | ) | (33,881 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (26,956 | ) | $ | 29,089 | $ | (8,469 | ) | $ | 7,532 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | 5,285 | $ | 6,163 | $ | 2,751 | $ | 5,012 | ||||||||
Distributions reinvested | 210 | 19 | 375 | 343 | ||||||||||||
Cost of shares redeemed | (7,946 | ) | (9,245 | ) | (3,140 | ) | (5,201 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | (2,451 | ) | $ | (3,063 | ) | $ | (14 | ) | $ | 154 | |||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 111,356 | $ | 56,730 | $ | 23,491 | $ | 59,870 | ||||||||
Distributions reinvested | 2,206 | 320 | 2,693 | 2,443 | ||||||||||||
Cost of shares redeemed | (47,783 | ) | (37,900 | ) | (59,282 | ) | (41,426 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | 65,779 | $ | 19,150 | $ | (33,098 | ) | $ | 20,887 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Proceeds from shares issued | $ | 597 | $ | 672 | $ | 106 | $ | 295 | ||||||||
Distributions reinvested | 12 | 1 | 8 | 11 | ||||||||||||
Cost of shares redeemed | (597 | ) | (396 | ) | (143 | ) | (356 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | 12 | $ | 277 | $ | (29 | ) | $ | (50 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | 547 | $ | 1,663 | $ | 46 | $ | 997 | ||||||||
Distributions reinvested | 354 | 165 | 11 | 47 | ||||||||||||
Cost of shares redeemed | (461 | ) | (43,919 | ) | (1,196 | ) | (635 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | 440 | $ | (42,091 | ) | $ | (1,139 | ) | $ | 409 | ||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 1,112,330 | $ | 393,780 | $ | 3,978 | $ | 14,231 | ||||||||
Distributions reinvested | 59,589 | 16,643 | 515 | 30 | ||||||||||||
Cost of shares redeemed | (339,079 | ) | (674,090 | ) | (4,735 | ) | (586 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 832,840 | $ | (263,667 | ) | $ | (242 | ) | $ | 13,675 | ||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 869,664 | $ | (260,305 | ) | $ | (42,991 | ) | $ | 42,607 | ||||||
|
|
|
|
|
|
|
|
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 99 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan International Equity Fund | JPMorgan International Equity Income Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 5,747 | 7,301 | 1,348 | 2,566 | ||||||||||||
Reinvested | 235 | 42 | 161 | 148 | ||||||||||||
Redeemed | (7,496 | ) | (5,607 | ) | (2,070 | ) | (2,230 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (1,514 | ) | 1,736 | (561 | ) | 484 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C | ||||||||||||||||
Issued | 309 | 405 | 168 | 329 | ||||||||||||
Reinvested | 12 | 1 | 23 | 22 | ||||||||||||
Redeemed | (477 | ) | (610 | ) | (194 | ) | (338 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | (156 | ) | (204 | ) | (3 | ) | 13 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 6,224 | 3,517 | 1,408 | 3,939 | ||||||||||||
Reinvested | 122 | 22 | 163 | 158 | ||||||||||||
Redeemed | (2,700 | ) | (2,347 | ) | (3,629 | ) | (2,659 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | 3,646 | 1,192 | (2,058 | ) | 1,438 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 | ||||||||||||||||
Issued | 35 | 41 | 5 | 20 | ||||||||||||
Reinvested | 1 | — | (a) | 1 | 1 | |||||||||||
Redeemed | (35 | ) | (26 | ) | (8 | ) | (23 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | 1 | 15 | (2 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | 30 | 111 | 3 | 66 | ||||||||||||
Reinvested | 19 | 11 | 1 | 3 | ||||||||||||
Redeemed | (26 | ) | (2,981 | ) | (70 | ) | (40 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | 23 | (2,859 | ) | (66 | ) | 29 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 61,155 | 25,401 | 240 | 882 | ||||||||||||
Reinvested | 3,289 | 1,123 | 31 | 2 | ||||||||||||
Redeemed | (18,321 | ) | (42,082 | ) | (288 | ) | (36 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 46,123 | (15,558 | ) | (17 | ) | 848 | ||||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
100 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 49,806 | $ | 291,313 | $ | 70,900 | $ | 56,512 | ||||||||
Distributions reinvested | 6,000 | 1,449 | 450 | 256 | ||||||||||||
Cost of shares redeemed | (125,460 | ) | (80,384 | ) | (40,013 | ) | (9,624 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class A capital transactions | $ | (69,654 | ) | $ | 212,378 | $ | 31,337 | $ | 47,144 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class C (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 655 | $ | 20,087 | $ | 12,093 | ||||||||
Distributions reinvested | — | 221 | 85 | 66 | ||||||||||||
Cost of shares redeemed | — | (16,621 | ) | (7,910 | ) | (3,674 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class C capital transactions | $ | — | $ | (15,745 | ) | $ | 12,262 | $ | 8,485 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 296,315 | $ | 3,428,331 | $ | 234,151 | $ | 133,949 | ||||||||
Distributions reinvested | 22,644 | 31,067 | 1,282 | 199 | ||||||||||||
Cost of shares redeemed | (4,846,022 | ) | (291,221 | ) | (139,690 | ) | (23,313 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class I capital transactions | $ | (4,527,063 | ) | $ | 3,168,177 | $ | 95,743 | $ | 110,835 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 6,205 | $ | 887 | $ | 71 | ||||||||
Distributions reinvested | — | 189 | 2 | — | (b) | |||||||||||
Cost of shares redeemed | — | (18,765 | ) | (88 | ) | — | (b) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R2 capital transactions | $ | — | $ | (12,371 | ) | $ | 801 | $ | 71 | |||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 5,082 | $ | 69 | ||||||||
Distributions reinvested | — | — | 1 | — | (b) | |||||||||||
Cost of shares redeemed | — | — | (952 | ) | (6 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R5 capital transactions | $ | — | $ | — | $ | 4,131 | $ | 63 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Proceeds from shares issued | $ | 6,049,894 | $ | — | $ | 67,300 | $ | 38,555 | ||||||||
Distributions reinvested | 79,541 | — | 1,288 | 1,980 | ||||||||||||
Cost of shares redeemed | (1,298,837 | ) | — | (10,456 | ) | (1,117 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from Class R6 capital transactions | $ | 4,830,598 | $ | — | $ | 58,132 | $ | 39,418 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net assets resulting from capital transactions | $ | 233,881 | $ | 3,352,439 | $ | 202,406 | $ | 206,016 | ||||||||
|
|
|
|
|
|
|
|
(a) | Liquidated on October 9, 2017 for JPMorgan International Research Enhanced Equity Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan International Research Enhanced Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 101 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan International Research Enhanced Equity Fund | JPMorgan International Unconstrained Equity Fund | |||||||||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 2,675 | 15,780 | 3,352 | 2,894 | ||||||||||||
Reinvested | 321 | 93 | 21 | 15 | ||||||||||||
Redeemed | (6,773 | ) | (4,458 | ) | (1,953 | ) | (521 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A Shares | (3,777 | ) | 11,415 | 1,420 | 2,388 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C (a) | ||||||||||||||||
Issued | — | 40 | 952 | 610 | ||||||||||||
Reinvested | — | 15 | 4 | 4 | ||||||||||||
Redeemed | — | (963 | ) | (398 | ) | (191 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class C Shares | — | (908 | ) | 558 | 423 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 15,589 | 186,476 | 10,891 | 6,707 | ||||||||||||
Reinvested | 1,199 | 1,983 | 60 | 12 | ||||||||||||
Redeemed | (258,407 | ) | (17,061 | ) | (6,860 | ) | (1,152 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I Shares | (241,619 | ) | 171,398 | 4,091 | 5,567 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R2 (a) | ||||||||||||||||
Issued | — | 382 | 42 | 4 | ||||||||||||
Reinvested | — | 12 | — | (b) | — | (b) | ||||||||||
Redeemed | — | (1,067 | ) | (4 | ) | — | (b) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R2 Shares | — | (673 | ) | 38 | 4 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R5 | ||||||||||||||||
Issued | — | — | 223 | 3 | ||||||||||||
Reinvested | — | — | — | (b) | — | (b) | ||||||||||
Redeemed | — | — | (46 | ) | — | (b) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R5 Shares | — | — | 177 | 3 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 (c) | ||||||||||||||||
Issued | 321,785 | — | 3,197 | 2,008 | ||||||||||||
Reinvested | 4,222 | — | 61 | 117 | ||||||||||||
Redeemed | (69,932 | ) | — | (513 | ) | (53 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 Shares | 256,075 | — | 2,745 | 2,072 | ||||||||||||
|
|
|
|
|
|
|
|
(a) | Liquidated on October 9, 2017 for JPMorgan International Research Enhanced Equity Fund. |
(b) | Amount rounds to less than one thousand. |
(c) | Commencement of offering of class of shares effective November 1, 2017, for JPMorgan International Research Enhanced Equity Fund. |
SEE NOTES TO FINANCIAL STATEMENTS.
102 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
JPMorgan International Value Fund | ||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||
CAPITAL TRANSACTIONS: | ||||||||
Class A | ||||||||
Proceeds from shares issued | $ | 59,408 | $ | 82,228 | ||||
Distributions reinvested | 6,704 | 18,745 | ||||||
Cost of shares redeemed | (101,490 | ) | (406,516 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class A capital transactions | $ | (35,378 | ) | $ | (305,543 | ) | ||
|
|
|
| |||||
Class C | ||||||||
Proceeds from shares issued | $ | 2,122 | $ | 2,914 | ||||
Distributions reinvested | 287 | 1,151 | ||||||
Cost of shares redeemed | (7,191 | ) | (10,863 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class C capital transactions | $ | (4,782 | ) | $ | (6,798 | ) | ||
|
|
|
| |||||
Class I | ||||||||
Proceeds from shares issued | $ | 38,003 | $ | 29,799 | ||||
Distributions reinvested | 3,381 | 4,900 | ||||||
Cost of shares redeemed | (109,004 | ) | (69,741 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class I capital transactions | $ | (67,620 | ) | $ | (35,042 | ) | ||
|
|
|
| |||||
Class L | ||||||||
Proceeds from shares issued | $ | 6,316 | $ | 193,382 | ||||
Distributions reinvested | 1,069 | 20,403 | ||||||
Cost of shares redeemed | (122,248 | ) | (590,617 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class L capital transactions | $ | (114,863 | ) | $ | (376,832 | ) | ||
|
|
|
| |||||
Class R2 | ||||||||
Proceeds from shares issued | $ | 224 | $ | 368 | ||||
Distributions reinvested | 9 | 24 | ||||||
Cost of shares redeemed | (420 | ) | (402 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R2 capital transactions | $ | (187 | ) | $ | (10 | ) | ||
|
|
|
| |||||
Class R5 | ||||||||
Proceeds from shares issued | $ | 16 | $ | 36 | ||||
Distributions reinvested | 2 | 1 | ||||||
Cost of shares redeemed | — | (a) | (1 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R5 capital transactions | $ | 18 | $ | 36 | ||||
|
|
|
| |||||
Class R6 | ||||||||
Proceeds from shares issued | $ | 59,355 | $ | 106,682 | ||||
Distributions reinvested | 2,922 | 1,834 | ||||||
Cost of shares redeemed | (29,240 | ) | (34,416 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from Class R6 capital transactions | $ | 33,037 | $ | 74,100 | ||||
|
|
|
| |||||
Total change in net assets resulting from capital transactions | $ | (189,775 | ) | $ | (650,089 | ) | ||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 103 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS INDICATED (continued)
(Amounts in thousands)
JPMorgan International Value Fund | ||||||||
Year Ended October 31, 2018 | Year Ended October 31, 2017 | |||||||
SHARE TRANSACTIONS: | ||||||||
Class A | ||||||||
Issued | 4,254 | 6,323 | ||||||
Reinvested | 472 | 1,558 | ||||||
Redeemed | (7,447 | ) | (32,574 | ) | ||||
|
|
|
| |||||
Change in Class A Shares | (2,721 | ) | (24,693 | ) | ||||
|
|
|
| |||||
Class C | ||||||||
Issued | 155 | 229 | ||||||
Reinvested | 21 | 99 | ||||||
Redeemed | (531 | ) | (863 | ) | ||||
|
|
|
| |||||
Change in Class C Shares | (355 | ) | (535 | ) | ||||
|
|
|
| |||||
Class I | ||||||||
Issued | 2,606 | 2,244 | ||||||
Reinvested | 233 | 399 | ||||||
Redeemed | (7,550 | ) | (5,291 | ) | ||||
|
|
|
| |||||
Change in Class I Shares | (4,711 | ) | (2,648 | ) | ||||
|
|
|
| |||||
Class L | ||||||||
Issued | 432 | 14,882 | ||||||
Reinvested | 74 | 1,668 | ||||||
Redeemed | (8,567 | ) | (44,537 | ) | ||||
|
|
|
| |||||
Change in Class L Shares | (8,061 | ) | (27,987 | ) | ||||
|
|
|
| |||||
Class R2 | ||||||||
Issued | 16 | 30 | ||||||
Reinvested | 1 | 2 | ||||||
Redeemed | (31 | ) | (32 | ) | ||||
|
|
|
| |||||
Change in Class R2 Shares | (14 | ) | — | (a) | ||||
|
|
|
| |||||
Class R5 | ||||||||
Issued | 1 | 2 | ||||||
Reinvested | — | (a) | — | (a) | ||||
Redeemed | — | (a) | — | (a) | ||||
|
|
|
| |||||
Change in Class R5 Shares | 1 | 2 | ||||||
|
|
|
| |||||
Class R6 | ||||||||
Issued | 4,227 | 7,566 | ||||||
Reinvested | 203 | 150 | ||||||
Redeemed | (2,078 | ) | (2,501 | ) | ||||
|
|
|
| |||||
Change in Class R6 Shares | 2,352 | 5,215 | ||||||
|
|
|
|
(a) | Amount rounds to less than one thousand. |
SEE NOTES TO FINANCIAL STATEMENTS.
104 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
THIS PAGE IS INTENTIONALLY LEFT BLANK
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 105 |
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 | ||||||||||||||||
JPMorgan Emerging Economies Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended October 31, 2018 | $ | 14.73 | $ | 0.32 | $ | (2.84 | ) | $ | (2.52 | ) | $ | (0.26 | ) | |||||||
Year Ended October 31, 2017 | 11.55 | 0.22 | 3.11 | 3.33 | (0.15 | ) | ||||||||||||||
Year Ended October 31, 2016 | 11.03 | 0.15 | 0.46 | 0.61 | (0.09 | ) | ||||||||||||||
Year Ended October 31, 2015 | 13.13 | 0.13 | (f) | (2.03 | ) | (1.90 | ) | (0.20 | ) | |||||||||||
Year Ended October 31, 2014 | 13.63 | 0.22 | (0.57 | ) | (0.35 | ) | (0.15 | ) | ||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.60 | 0.25 | (2.82 | ) | (2.57 | ) | (0.19 | ) | ||||||||||||
Year Ended October 31, 2017 | 11.41 | 0.16 | 3.09 | 3.25 | (0.06 | ) | ||||||||||||||
Year Ended October 31, 2016 | 10.86 | 0.09 | 0.46 | 0.55 | — | (g) | ||||||||||||||
Year Ended October 31, 2015 | 12.92 | 0.10 | (f) | (2.03 | ) | (1.93 | ) | (0.13 | ) | |||||||||||
Year Ended October 31, 2014 | 13.44 | 0.15 | (0.57 | ) | (0.42 | ) | (0.10 | ) | ||||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.93 | 0.37 | (2.88 | ) | (2.51 | ) | (0.30 | ) | ||||||||||||
Year Ended October 31, 2017 | 11.68 | 0.26 | 3.15 | 3.41 | (0.16 | ) | ||||||||||||||
Year Ended October 31, 2016 | 11.06 | 0.18 | 0.47 | 0.65 | (0.03 | ) | ||||||||||||||
Year Ended October 31, 2015 | 13.17 | 0.18 | (f) | (2.06 | ) | (1.88 | ) | (0.23 | ) | |||||||||||
Year Ended October 31, 2014 | 13.67 | 0.26 | (0.58 | ) | (0.32 | ) | (0.18 | ) | ||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended October 31, 2018 | 15.07 | 0.38 | (2.91 | ) | (2.53 | ) | (0.30 | ) | ||||||||||||
Year Ended October 31, 2017 | 11.78 | 0.26 | 3.20 | 3.46 | (0.17 | ) | ||||||||||||||
Year Ended October 31, 2016 | 11.11 | 0.05 | 0.62 | 0.67 | — | |||||||||||||||
Year Ended October 31, 2015 | 13.22 | 0.20 | (f) | (2.06 | ) | (1.86 | ) | (0.25 | ) | |||||||||||
Year Ended October 31, 2014 | 13.71 | 0.29 | (0.58 | ) | (0.29 | ) | (0.20 | ) | ||||||||||||
Class R6 |
| |||||||||||||||||||
Year Ended October 31, 2018 | 14.87 | 0.39 | (2.86 | ) | (2.47 | ) | (0.33 | ) | ||||||||||||
Year Ended October 31, 2017 | 11.64 | 0.29 | 3.12 | 3.41 | (0.18 | ) | ||||||||||||||
Year Ended October 31, 2016 | 11.11 | 0.21 | 0.46 | 0.67 | (0.14 | ) | ||||||||||||||
September 1, 2015 (h) through October 31, 2015 | 10.46 | (0.02 | )(f) | 0.67 | 0.65 | — |
(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 interest expense, if applicable, 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) | Amount rounds to less than $0.005. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
106 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 11.95 | (17.41 | )% | $ | 10,653 | 1.14 | % | 2.22 | % | 1.52 | % | 82 | % | |||||||||||||
14.73 | 29.28 | 179,772 | 1.34 | 1.72 | 1.57 | 62 | ||||||||||||||||||||
11.55 | 5.62 | 148,331 | 1.42 | 1.42 | 1.70 | 72 | ||||||||||||||||||||
11.03 | (14.60 | ) | 43,220 | 1.58 | 1.06 | (f) | 1.99 | 118 | ||||||||||||||||||
13.13 | (2.56 | ) | 80,806 | 1.60 | 1.71 | 1.73 | 79 | |||||||||||||||||||
11.84 | (17.85 | ) | 1,874 | 1.64 | 1.73 | 2.06 | 82 | |||||||||||||||||||
14.60 | 28.71 | 2,782 | 1.85 | 1.23 | 2.17 | 62 | ||||||||||||||||||||
11.41 | 5.11 | 2,448 | 1.96 | 0.82 | 2.37 | 72 | ||||||||||||||||||||
10.86 | (15.02 | ) | 3,614 | 2.09 | 0.80 | (f) | 2.36 | 118 | ||||||||||||||||||
12.92 | (3.12 | ) | 5,331 | 2.10 | 1.13 | 2.23 | 79 | |||||||||||||||||||
12.12 | (17.19 | ) | 12,961 | 0.89 | 2.50 | 1.27 | 82 | |||||||||||||||||||
14.93 | 29.61 | 63,965 | 1.10 | 2.01 | 1.30 | 62 | ||||||||||||||||||||
11.68 | 5.93 | 53,509 | 1.21 | 1.67 | 1.40 | 72 | ||||||||||||||||||||
11.06 | (14.45 | ) | 239,866 | 1.34 | 1.51 | (f) | 1.46 | 118 | ||||||||||||||||||
13.17 | (2.35 | ) | 288,059 | 1.35 | 1.96 | 1.48 | 79 | |||||||||||||||||||
12.24 | (17.16 | ) | 285 | 0.79 | 2.59 | 1.12 | 82 | |||||||||||||||||||
15.07 | 29.89 | 417 | 0.93 | 2.06 | 1.16 | 62 | ||||||||||||||||||||
11.78 | 6.03 | 1,602 | 1.08 | 0.49 | 1.25 | 72 | ||||||||||||||||||||
11.11 | (14.20 | ) | 81,516 | 1.14 | 1.65 | (f) | 1.25 | 118 | ||||||||||||||||||
13.22 | (2.12 | ) | 852,477 | 1.15 | 2.19 | 1.28 | 79 | |||||||||||||||||||
12.07 | (17.02 | ) | 1,529,884 | 0.69 | 2.75 | 1.01 | 82 | |||||||||||||||||||
14.87 | 29.87 | 1,790,759 | 0.85 | 2.23 | 1.04 | 62 | ||||||||||||||||||||
11.64 | 6.16 | 1,573,822 | 0.94 | 1.99 | 1.09 | 72 | ||||||||||||||||||||
11.11 | 6.21 | 732,627 | 1.07 | (0.92 | )(f) | 1.17 | 118 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 107 |
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 Emerging Markets Equity Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended October 31, 2018 | $ | 27.58 | $ | 0.14 | $ | (3.84 | ) | $ | (3.70 | ) | $ | (0.04 | ) | |||||||
Year Ended October 31, 2017 | 21.79 | 0.09 | 5.80 | 5.89 | (0.10 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.53 | 0.09 | 2.28 | 2.37 | (0.11 | ) | ||||||||||||||
Year Ended October 31, 2015 | 23.72 | 0.12 | (f) | (4.12 | ) | (4.00 | ) | (0.19 | ) | |||||||||||
Year Ended October 31, 2014 | 23.05 | 0.16 | (f) | 0.59 | 0.75 | (0.08 | ) | |||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 26.80 | 0.02 | (3.74 | ) | (3.72 | ) | — | (g) | ||||||||||||
Year Ended October 31, 2017 | 21.18 | (0.04 | ) | 5.67 | 5.63 | (0.01 | ) | |||||||||||||
Year Ended October 31, 2016 | 18.96 | (0.01 | ) | 2.23 | 2.22 | — | ||||||||||||||
Year Ended October 31, 2015 | 23.03 | 0.03 | (f) | (4.02 | ) | (3.99 | ) | (0.08 | ) | |||||||||||
Year Ended October 31, 2014 | 22.41 | 0.05 | (f) | 0.57 | 0.62 | — | ||||||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 28.29 | 0.24 | (3.96 | ) | (3.72 | ) | (0.12 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.33 | 0.16 | 5.94 | 6.10 | (0.14 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.98 | 0.13 | 2.35 | 2.48 | (0.13 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.24 | 0.19 | (f) | (4.21 | ) | (4.02 | ) | (0.24 | ) | |||||||||||
Year Ended October 31, 2014 | 23.47 | 0.18 | (f) | 0.64 | 0.82 | (0.05 | ) | |||||||||||||
Class L | ||||||||||||||||||||
Year Ended October 31, 2018 | 28.49 | 0.26 | (3.99 | ) | (3.73 | ) | (0.13 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.49 | 0.21 | 5.96 | 6.17 | (0.17 | ) | ||||||||||||||
Year Ended October 31, 2016 | 20.15 | 0.17 | 2.35 | 2.52 | (0.18 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.42 | 0.23 | (f) | (4.26 | ) | (4.03 | ) | (0.24 | ) | |||||||||||
Year Ended October 31, 2014 | 23.73 | 0.17 | (f) | 0.70 | 0.87 | (0.18 | ) | |||||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2018 | 27.57 | 0.07 | (3.83 | ) | (3.76 | ) | (0.08 | ) | ||||||||||||
July 31, 2017 (h) through October 31, 2017 | 26.40 | (0.01 | ) | 1.18 | 1.17 | — | ||||||||||||||
Class R3 | ||||||||||||||||||||
Year Ended October 31, 2018 | 27.59 | 0.22 | (3.92 | ) | (3.70 | ) | (0.11 | ) | ||||||||||||
July 31, 2017 (h) through October 31, 2017 | 26.40 | 0.01 | 1.18 | 1.19 | — | |||||||||||||||
Class R4 | ||||||||||||||||||||
Year Ended October 31, 2018 | 28.28 | 0.18 | (3.91 | ) | (3.73 | ) | (0.13 | ) | ||||||||||||
July 31, 2017 (h) through October 31, 2017 | 27.05 | 0.02 | 1.21 | 1.23 | — | |||||||||||||||
Class R5 | ||||||||||||||||||||
Year Ended October 31, 2018 | 28.47 | 0.39 | (4.11 | ) | (3.72 | ) | (0.15 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.49 | 0.15 | 6.01 | 6.16 | (0.18 | ) | ||||||||||||||
September 9, 2016 (h) through October 31, 2016 | 22.40 | 0.01 | 0.08 | 0.09 | — | |||||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2018 | 28.46 | 0.29 | (3.99 | ) | (3.70 | ) | (0.16 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.46 | 0.21 | 5.98 | 6.19 | (0.19 | ) | ||||||||||||||
Year Ended October 31, 2016 | 20.13 | 0.19 | 2.35 | 2.54 | (0.21 | ) | ||||||||||||||
Year Ended October 31, 2015 | 24.44 | 0.22 | (f) | (4.23 | ) | (4.01 | ) | (0.30 | ) | |||||||||||
December 23, 2013 (h) through October 31, 2014 | 22.47 | 0.38 | (f) | 1.59 | 1.97 | — |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | 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) | Amount rounds to less than $0.005. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
108 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 23.84 | (13.44 | )% | $ | 369,490 | 1.24 | % | 0.51 | % | 1.52 | % | 13 | % | |||||||||||||
27.58 | 27.22 | 525,451 | 1.35 | 0.36 | 1.58 | 22 | ||||||||||||||||||||
21.79 | 12.25 | 411,713 | 1.44 | 0.44 | 1.76 | 23 | ||||||||||||||||||||
19.53 | (16.95 | ) | 274,710 | 1.61 | 0.57 | (f) | 1.88 | 35 | ||||||||||||||||||
23.72 | 3.26 | 350,555 | 1.70 | 0.72 | (f) | 1.81 | 33 | |||||||||||||||||||
23.08 | (13.87 | ) | 43,612 | 1.74 | 0.06 | 2.02 | 13 | |||||||||||||||||||
26.80 | 26.58 | 48,497 | 1.85 | (0.15 | ) | 2.09 | 22 | |||||||||||||||||||
21.18 | 11.71 | 39,568 | 1.95 | (0.06 | ) | 2.26 | 23 | |||||||||||||||||||
18.96 | (17.38 | ) | 43,387 | 2.10 | 0.13 | (f) | 2.33 | 35 | ||||||||||||||||||
23.03 | 2.77 | 56,732 | 2.20 | 0.22 | (f) | 2.31 | 33 | |||||||||||||||||||
24.45 | (13.23 | ) | 773,142 | 0.99 | 0.84 | 1.26 | 13 | |||||||||||||||||||
28.29 | 27.54 | 629,451 | 1.10 | 0.62 | 1.30 | 22 | ||||||||||||||||||||
22.33 | 12.51 | 301,959 | 1.20 | 0.66 | 1.43 | 23 | ||||||||||||||||||||
19.98 | (16.70 | ) | 502,729 | 1.35 | 0.88 | (f) | 1.48 | 35 | ||||||||||||||||||
24.24 | 3.51 | 583,501 | 1.45 | 0.78 | (f) | 1.56 | 33 | |||||||||||||||||||
24.63 | (13.16 | ) | 475,997 | 0.89 | 0.91 | 1.11 | 13 | |||||||||||||||||||
28.49 | 27.72 | 430,860 | 0.95 | 0.84 | 1.14 | 22 | ||||||||||||||||||||
22.49 | 12.71 | 390,647 | 1.04 | 0.84 | 1.22 | 23 | ||||||||||||||||||||
20.15 | (16.60 | ) | 316,635 | 1.21 | 1.05 | (f) | 1.31 | 35 | ||||||||||||||||||
24.42 | 3.72 | 411,449 | 1.30 | 0.72 | (f) | 1.40 | 33 | |||||||||||||||||||
23.73 | (13.69 | ) | 95 | 1.54 | 0.26 | 2.04 | 13 | |||||||||||||||||||
27.57 | 4.43 | 21 | 1.60 | (0.17 | ) | 1.80 | 22 | |||||||||||||||||||
23.78 | (13.49 | ) | 341 | 1.29 | 0.81 | 1.59 | 13 | |||||||||||||||||||
27.59 | 4.51 | 21 | 1.35 | 0.08 | 1.55 | 22 | ||||||||||||||||||||
24.42 | (13.25 | ) | 26 | 1.04 | 0.63 | 1.62 | 13 | |||||||||||||||||||
28.28 | 4.55 | 21 | 1.10 | 0.33 | 1.30 | 22 | ||||||||||||||||||||
24.60 | (13.14 | ) | 1,672 | 0.89 | 1.37 | 1.11 | 13 | |||||||||||||||||||
28.47 | 27.72 | 217 | 0.95 | 0.58 | 3.36 | 22 | ||||||||||||||||||||
22.49 | 0.40 | 20 | 0.90 | 0.28 | 1.08 | 23 | ||||||||||||||||||||
24.60 | (13.08 | ) | 2,936,830 | 0.79 | 1.00 | 1.01 | 13 | |||||||||||||||||||
28.46 | 27.87 | 2,813,349 | 0.85 | 0.85 | 1.01 | 22 | ||||||||||||||||||||
22.46 | 12.83 | 1,980,671 | 0.94 | 0.96 | 1.08 | 23 | ||||||||||||||||||||
20.13 | (16.54 | ) | 1,128,390 | 1.10 | 0.99 | (f) | 1.16 | 35 | ||||||||||||||||||
24.44 | 8.77 | 1,130,050 | 1.20 | 1.85 | (f) | 1.33 | 33 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 109 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) |
| |||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2018 | $ | 27.04 | $ | 0.42 | $ | (4.08 | ) | $ | (3.66 | ) | $ | (0.37 | ) | |||||||
Year Ended October 31, 2017 | 21.94 | 0.37 | 5.15 | 5.52 | (0.42 | ) | ||||||||||||||
Year Ended October 31, 2016 | 24.41 | 0.37 | (2.55 | ) | (2.18 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2015 | 24.54 | 0.36 | 0.32 | 0.68 | (0.81 | ) | ||||||||||||||
Year Ended October 31, 2014 | 24.79 | 0.66 | (0.90 | ) | (0.24 | ) | (0.01 | ) | ||||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 24.00 | 0.25 | (3.62 | ) | (3.37 | ) | (0.24 | ) | ||||||||||||
Year Ended October 31, 2017 | 19.52 | 0.23 | 4.58 | 4.81 | (0.33 | ) | ||||||||||||||
Year Ended October 31, 2016 | 21.77 | 0.23 | (2.27 | ) | (2.04 | ) | (0.21 | ) | ||||||||||||
Year Ended October 31, 2015 | 21.99 | 0.21 | 0.29 | 0.50 | (0.72 | ) | ||||||||||||||
Year Ended October 31, 2014 | 22.32 | 0.47 | (0.79 | ) | (0.32 | ) | (0.01 | ) | ||||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 27.60 | 0.49 | (4.17 | ) | (3.68 | ) | (0.44 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.37 | 0.46 | 5.25 | 5.71 | (0.48 | ) | ||||||||||||||
Year Ended October 31, 2016 | 24.83 | 0.44 | (2.59 | ) | (2.15 | ) | (0.31 | ) | ||||||||||||
Year Ended October 31, 2015 | 24.95 | 0.45 | 0.32 | 0.77 | (0.89 | ) | ||||||||||||||
Year Ended October 31, 2014 | 25.18 | 0.71 | (0.88 | ) | (0.17 | ) | (0.06 | ) | ||||||||||||
Class L | ||||||||||||||||||||
Year Ended October 31, 2018 | 27.85 | 0.51 | (4.18 | ) | (3.67 | ) | (0.48 | ) | ||||||||||||
Year Ended October 31, 2017 | 22.61 | 0.52 | 5.27 | 5.79 | (0.55 | ) | ||||||||||||||
Year Ended October 31, 2016 | 25.13 | 0.49 | (2.60 | ) | (2.11 | ) | (0.41 | ) | ||||||||||||
Year Ended October 31, 2015 | 25.23 | 0.54 | 0.28 | 0.82 | (0.92 | ) | ||||||||||||||
Year Ended October 31, 2014 | 25.46 | 0.79 | (0.93 | ) | (0.14 | ) | (0.09 | ) | ||||||||||||
Class R6 | ||||||||||||||||||||
October 1, 2018 (f) through October 31, 2018 | 26.32 | 0.01 | (2.63 | ) | (2.62 | ) | — |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
110 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
$ | 23.01 | (13.72 | )% | $ | 124,681 | 1.24 | % | 1.58 | % | 1.29 | % | 149 | % | |||||||||||||
27.04 | 25.65 | 165,020 | 1.36 | 1.52 | 1.36 | 189 | ||||||||||||||||||||
21.94 | (8.98 | ) | 162,767 | 1.42 | 1.66 | 1.43 | 142 | |||||||||||||||||||
24.41 | 2.86 | 219,548 | 1.41 | 1.48 | 1.41 | 167 | ||||||||||||||||||||
24.54 | (0.95 | ) | 192,865 | 1.30 | 2.55 | 1.31 | 197 | |||||||||||||||||||
20.39 | (14.18 | ) | 31,125 | 1.74 | 1.08 | 1.79 | 149 | |||||||||||||||||||
24.00 | 25.02 | 46,615 | 1.85 | 1.07 | 1.86 | 189 | ||||||||||||||||||||
19.52 | (9.42 | ) | 50,152 | 1.91 | 1.16 | 1.92 | 142 | |||||||||||||||||||
21.77 | 2.37 | 75,145 | 1.91 | 0.98 | 1.91 | 167 | ||||||||||||||||||||
21.99 | (1.46 | ) | 61,814 | 1.80 | 2.00 | 1.81 | 197 | |||||||||||||||||||
23.48 | (13.53 | ) | 139,858 | 0.99 | 1.84 | 1.04 | 149 | |||||||||||||||||||
27.60 | 26.06 | 187,678 | 1.06 | 1.85 | 1.07 | 189 | ||||||||||||||||||||
22.37 | (8.73 | ) | 145,080 | 1.10 | 1.95 | 1.10 | 142 | |||||||||||||||||||
24.83 | 3.22 | 579,389 | 1.07 | 1.81 | 1.07 | 167 | ||||||||||||||||||||
24.95 | (0.68 | ) | 409,675 | 1.05 | 2.69 | 1.06 | 197 | |||||||||||||||||||
23.70 | (13.41 | ) | 389,665 | 0.88 | 1.88 | 0.89 | 149 | |||||||||||||||||||
27.85 | 26.22 | 578,183 | 0.90 | 2.07 | 0.91 | 189 | ||||||||||||||||||||
22.61 | (8.48 | ) | 424,388 | 0.90 | 2.16 | 0.90 | 142 | |||||||||||||||||||
25.13 | 3.36 | 194,930 | 0.90 | 2.16 | 0.91 | 167 | ||||||||||||||||||||
25.23 | (0.56 | ) | 375,683 | 0.90 | 2.93 | 0.91 | 197 | |||||||||||||||||||
23.70 | (9.95 | ) | 18 | 0.82 | 0.67 | 0.83 | 149 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 111 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan Global Research Enhanced Index Fund |
| |||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||
Year Ended October 31, 2018 | $ | 22.16 | $ | 0.43 | $ | (0.41 | ) | $ | 0.02 | $ | (0.20 | ) | $ | — | $ | (0.20 | ) | |||||||||||
Year Ended October 31, 2017 | 18.37 | 0.39 | 3.82 | 4.21 | (0.42 | ) | — | (0.42 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 18.56 | 0.39 | (0.24 | ) | 0.15 | (0.34 | ) | — | (0.34 | ) | ||||||||||||||||||
Year Ended October 31, 2015 | 18.81 | 0.39 | (0.12 | ) | 0.27 | (0.27 | ) | (0.25 | ) | (0.52 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 17.37 | 0.39 | 1.33 | 1.72 | (0.18 | ) | (0.10 | ) | (0.28 | ) | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
November 1, 2017 (f) through October 31, 2018 | 22.19 | 0.47 | (0.45 | ) | 0.02 | (0.45 | ) | — | (0.45 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
112 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 21.98 | 0.09 | % | $ | 438,715 | 0.34 | % | 1.88 | % | 0.55 | % | 45 | % | |||||||||||||
22.16 | 23.29 | 8,663,460 | 0.34 | 1.93 | 0.55 | 33 | ||||||||||||||||||||
18.37 | 0.91 | 6,907,246 | 0.34 | 2.19 | 0.55 | 35 | ||||||||||||||||||||
18.56 | 1.51 | 7,415,218 | 0.33 | 2.06 | 0.56 | 44 | ||||||||||||||||||||
18.81 | 10.09 | 3,577,523 | 0.33 | 2.16 | 0.56 | 40 | ||||||||||||||||||||
21.76 | 0.03 | 5,408,261 | 0.25 | 2.07 | 0.30 | 45 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 113 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Return of capital | Total distributions | |||||||||||||||||||||||||
JPMorgan Global Unconstrained Equity Fund |
| |||||||||||||||||||||||||||||||
Class A |
| |||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | $ | 17.14 | $ | 0.17 | (c) | $ | (0.49 | ) | $ | (0.32 | ) | $ | (0.13 | ) | $ | (0.65 | ) | $ | — | $ | (0.78 | ) | ||||||||||
Year Ended October 31, 2017 | 14.12 | 0.15 | (c) | 2.87 | 3.02 | — | — | — | — | |||||||||||||||||||||||
Year Ended October 31, 2016 | 16.12 | 0.27 | (c) | (0.88 | ) | (0.61 | ) | (0.30 | ) | (0.27 | ) | (0.82 | ) | (1.39 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.55 | 0.11 | (c) | 0.66 | 0.77 | (0.31 | ) | (3.89 | ) | — | (4.20 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.11 | 0.23 | 1.17 | 1.40 | (0.17 | ) | (1.79 | ) | — | (1.96 | ) | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.93 | 0.07 | (c) | (0.46 | ) | (0.39 | ) | (0.10 | ) | (0.65 | ) | — | (0.75 | ) | ||||||||||||||||||
Year Ended October 31, 2017 | 14.02 | 0.07 | (c) | 2.84 | 2.91 | — | — | — | — | |||||||||||||||||||||||
Year Ended October 31, 2016 | 16.01 | 0.11 | (c) | (0.79 | ) | (0.68 | ) | (0.22 | ) | (0.27 | ) | (0.82 | ) | (1.31 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.43 | 0.04 | (c) | 0.64 | 0.68 | (0.21 | ) | (3.89 | ) | — | (4.10 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.01 | 0.14 | 1.16 | 1.30 | (0.09 | ) | (1.79 | ) | — | (1.88 | ) | |||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 17.30 | 0.24 | (c) | (0.50 | ) | (0.26 | ) | (0.18 | ) | (0.65 | ) | — | (0.83 | ) | ||||||||||||||||||
Year Ended October 31, 2017 | 14.23 | 0.20 | (c) | 2.91 | 3.11 | (0.04 | ) | — | — | (0.04 | ) | |||||||||||||||||||||
Year Ended October 31, 2016 | 16.18 | 0.26 | (c) | (0.83 | ) | (0.57 | ) | (0.29 | ) | (0.27 | ) | (0.82 | ) | (1.38 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.60 | 0.19 | (c) | 0.64 | 0.83 | (0.36 | ) | (3.89 | ) | — | (4.25 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.15 | 0.27 | 1.19 | 1.46 | (0.22 | ) | (1.79 | ) | — | (2.01 | ) | |||||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 17.24 | 0.12 | (c) | (0.49 | ) | (0.37 | ) | (0.07 | ) | (0.65 | ) | — | (0.72 | ) | ||||||||||||||||||
Year Ended October 31, 2017 | 14.24 | 0.11 | (c) | 2.89 | 3.00 | — | — | — | — | |||||||||||||||||||||||
Year Ended October 31, 2016 | 16.11 | 0.14 | (c) | (0.79 | ) | (0.65 | ) | (0.13 | ) | (0.27 | ) | (0.82 | ) | (1.22 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.49 | 0.08 | (c) | 0.65 | 0.73 | (0.22 | ) | (3.89 | ) | — | (4.11 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.06 | 0.18 | 1.17 | 1.35 | (0.13 | ) | (1.79 | ) | — | (1.92 | ) | |||||||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 17.25 | 0.24 | (c) | (0.48 | ) | (0.24 | ) | (0.19 | ) | (0.65 | ) | — | (0.84 | ) | ||||||||||||||||||
Year Ended October 31, 2017 | 14.24 | 0.22 | (c) | 2.89 | 3.11 | (0.10 | ) | — | — | (0.10 | ) | |||||||||||||||||||||
Year Ended October 31, 2016 | 16.21 | 0.24 | (c) | (0.80 | ) | (0.56 | ) | (0.32 | ) | (0.27 | ) | (0.82 | ) | (1.41 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.65 | 0.21 | (c) | 0.64 | 0.85 | (0.40 | ) | (3.89 | ) | — | (4.29 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.19 | 0.31 | 1.19 | 1.50 | (0.25 | ) | (1.79 | ) | — | (2.04 | ) | |||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 17.24 | 0.25 | (c) | (0.47 | ) | (0.22 | ) | (0.20 | ) | (0.65 | ) | — | (0.85 | ) | ||||||||||||||||||
Year Ended October 31, 2017 | 14.23 | 0.23 | (c) | 2.88 | 3.11 | (0.10 | ) | — | — | (0.10 | ) | |||||||||||||||||||||
Year Ended October 31, 2016 | 16.22 | 0.25 | (c) | (0.80 | ) | (0.55 | ) | (0.35 | ) | (0.27 | ) | (0.82 | ) | (1.44 | ) | |||||||||||||||||
Year Ended October 31, 2015 | 19.66 | 0.21 | (c) | 0.66 | 0.87 | (0.42 | ) | (3.89 | ) | — | (4.31 | ) | ||||||||||||||||||||
Year Ended October 31, 2014 | 20.20 | 0.32 | 1.19 | 1.51 | (0.26 | ) | (1.79 | ) | — | (2.05 | ) |
(a) | 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. |
(b) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(c) | Calculated based upon average shares outstanding. |
SEE NOTES TO FINANCIAL STATEMENTS.
114 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||||
Net asset value, end of period | Total return (excludes sales charge) (a) | Net assets, end of period (000’s) | Net expenses (b) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate | ||||||||||||||||||||
$ | 16.04 | (2.03 | )% | $ | 1,385 | 0.75 | % | 1.00 | % | 5.69 | % | 116 | % | |||||||||||||
17.14 | 21.39 | 1,171 | 0.74 | 0.93 | 11.79 | 105 | ||||||||||||||||||||
14.12 | (3.53 | ) | 417 | 0.74 | 1.95 | 1.90 | 1,256 | |||||||||||||||||||
16.12 | 4.76 | 244 | 1.00 | 0.67 | 7.57 | 132 | ||||||||||||||||||||
19.55 | 7.83 | 75 | 1.35 | 1.27 | 4.32 | 97 | ||||||||||||||||||||
15.79 | (2.51 | ) | 567 | 1.25 | 0.43 | 6.25 | 116 | |||||||||||||||||||
16.93 | 20.76 | 386 | 1.24 | 0.45 | 13.04 | 105 | ||||||||||||||||||||
14.02 | (4.02 | ) | 210 | 1.17 | 0.78 | 11.83 | 1,256 | |||||||||||||||||||
16.01 | 4.26 | 317 | 1.48 | 0.21 | 9.92 | 132 | ||||||||||||||||||||
19.43 | 7.28 | 74 | 1.85 | 0.77 | 4.82 | 97 | ||||||||||||||||||||
16.21 | (1.70 | ) | 1,852 | 0.40 | 1.40 | 5.50 | 116 | |||||||||||||||||||
17.30 | 21.88 | 1,827 | 0.40 | 1.25 | 11.90 | 105 | ||||||||||||||||||||
14.23 | (3.23 | ) | 991 | 0.36 | 1.86 | 5.37 | 1,256 | |||||||||||||||||||
16.18 | 5.13 | 1,020 | 0.88 | 1.06 | 7.34 | 132 | ||||||||||||||||||||
19.60 | 8.11 | 4,156 | 1.10 | 1.52 | 4.06 | 97 | ||||||||||||||||||||
16.15 | (2.31 | ) | 20 | 1.00 | 0.66 | 6.30 | 116 | |||||||||||||||||||
17.24 | 21.07 | 22 | 1.00 | 0.69 | 13.20 | 105 | ||||||||||||||||||||
14.24 | (3.79 | ) | 18 | 0.92 | 1.00 | 13.46 | 1,256 | |||||||||||||||||||
16.11 | 4.55 | 20 | 1.46 | 0.45 | 8.67 | 132 | ||||||||||||||||||||
19.49 | 7.55 | 75 | 1.60 | 1.02 | 4.56 | 97 | ||||||||||||||||||||
16.17 | (1.59 | ) | 20 | 0.30 | 1.37 | 5.69 | 116 | |||||||||||||||||||
17.25 | 21.91 | 21 | 0.30 | 1.39 | 12.47 | 105 | ||||||||||||||||||||
14.24 | (3.12 | ) | 18 | 0.22 | 1.70 | 12.77 | 1,256 | |||||||||||||||||||
16.21 | 5.26 | 20 | 0.76 | 1.15 | 7.97 | 132 | ||||||||||||||||||||
19.65 | 8.34 | 76 | 0.90 | 1.72 | 3.86 | 97 | ||||||||||||||||||||
16.17 | (1.48 | ) | 125 | 0.25 | 1.43 | 5.51 | 116 | |||||||||||||||||||
17.24 | 21.99 | 122 | 0.25 | 1.37 | 9.95 | 105 | ||||||||||||||||||||
14.23 | (3.10 | ) | 18 | 0.17 | 1.75 | 12.75 | 1,256 | |||||||||||||||||||
16.22 | 5.34 | 20 | 0.71 | 1.20 | 7.91 | 132 | ||||||||||||||||||||
19.66 | 8.39 | 76 | 0.85 | 1.77 | 3.81 | 97 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 115 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) |
| |||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2018 | $ | 22.22 | $ | 0.44 | $ | (2.77 | ) | $ | (2.33 | ) | $ | (0.40 | ) | |||||||
Year Ended October 31, 2017 | 18.44 | 0.33 | 3.83 | 4.16 | (0.38 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.36 | 0.40 | (f) | (0.99 | ) | (0.59 | ) | (0.33 | ) | |||||||||||
Year Ended October 31, 2015 | 19.49 | 0.34 | (f) | (0.26 | ) | 0.08 | (0.21 | ) | ||||||||||||
Year Ended October 31, 2014 | 19.79 | 0.39 | (f) | (0.45 | ) | (0.06 | ) | (0.24 | ) | |||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 22.40 | 0.37 | (2.83 | ) | (2.46 | ) | (0.24 | ) | ||||||||||||
Year Ended October 31, 2017 | 18.57 | 0.22 | 3.87 | 4.09 | (0.26 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.52 | 0.28 | (f) | (0.97 | ) | (0.69 | ) | (0.26 | ) | |||||||||||
Year Ended October 31, 2015 | 19.63 | 0.23 | (f) | (0.24 | ) | (0.01 | ) | (0.10 | ) | |||||||||||
Year Ended October 31, 2014 | 19.92 | 0.36 | (f) | (0.52 | ) | (0.16 | ) | (0.13 | ) | |||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 23.12 | 0.54 | (2.90 | ) | (2.36 | ) | (0.46 | ) | ||||||||||||
Year Ended October 31, 2017 | 19.20 | 0.42 | 3.97 | 4.39 | (0.47 | ) | ||||||||||||||
Year Ended October 31, 2016 | 20.13 | 0.46 | (f) | (1.01 | ) | (0.55 | ) | (0.38 | ) | |||||||||||
Year Ended October 31, 2015 | 20.22 | 0.42 | (f) | (0.26 | ) | 0.16 | (0.25 | ) | ||||||||||||
Year Ended October 31, 2014 | 20.51 | 0.51 | (f) | (0.53 | ) | (0.02 | ) | (0.27 | ) | |||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2018 | 22.01 | 0.52 | (2.88 | ) | (2.36 | ) | (0.44 | ) | ||||||||||||
Year Ended October 31, 2017 | 18.29 | 0.01 | 4.07 | 4.08 | (0.36 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.21 | 0.36 | (f) | (1.01 | ) | (0.65 | ) | (0.27 | ) | |||||||||||
Year Ended October 31, 2015 | 19.31 | 0.38 | (f) | (0.34 | ) | 0.04 | (0.14 | ) | ||||||||||||
Year Ended October 31, 2014 | 19.61 | 0.40 | (f) | (0.53 | ) | (0.13 | ) | (0.17 | ) | |||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2018 | 22.78 | 0.58 | (2.87 | ) | (2.29 | ) | (0.49 | ) | ||||||||||||
Year Ended October 31, 2017 | 18.91 | 0.43 | 3.92 | 4.35 | (0.48 | ) | ||||||||||||||
Year Ended October 31, 2016 | 19.84 | 0.49 | (f) | (1.01 | ) | (0.52 | ) | (0.41 | ) | |||||||||||
May 29, 2015 (g) through October 31, 2015 | 21.08 | 0.12 | (f) | (1.36 | ) | (1.24 | ) | — |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | 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.
116 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
$ | 19.49 | (10.69 | )% | $ | 156,382 | 1.00 | % | 2.02 | % | 1.22 | % | 51 | % | |||||||||||||
22.22 | 22.98 | 232,530 | 1.21 | 1.66 | 1.22 | 82 | ||||||||||||||||||||
18.44 | (3.07 | ) | 164,327 | 1.25 | 2.21 | (f) | 1.29 | 38 | ||||||||||||||||||
19.36 | 0.45 | 152,834 | 1.29 | 1.75 | (f) | 1.49 | 33 | |||||||||||||||||||
19.49 | (0.33 | ) | 101,114 | 1.39 | 1.96 | (f) | 1.46 | 48 | ||||||||||||||||||
19.70 | (11.08 | ) | 1,652 | 1.50 | 1.69 | 1.74 | 51 | |||||||||||||||||||
22.40 | 22.30 | 1,773 | 1.75 | 1.07 | 1.81 | 82 | ||||||||||||||||||||
18.57 | (3.56 | ) | 2,287 | 1.75 | 1.52 | (f) | 1.87 | 38 | ||||||||||||||||||
19.52 | (0.05 | ) | 2,789 | 1.78 | 1.17 | (f) | 1.91 | 33 | ||||||||||||||||||
19.63 | (0.84 | ) | 1,318 | 1.89 | 1.79 | (f) | 1.96 | 48 | ||||||||||||||||||
20.30 | (10.43 | ) | 60,739 | 0.75 | 2.37 | 0.96 | 51 | |||||||||||||||||||
23.12 | 23.39 | 52,871 | 0.90 | 1.99 | 0.99 | 82 | ||||||||||||||||||||
19.20 | (2.73 | ) | 16,363 | 0.90 | 2.44 | (f) | 1.08 | 38 | ||||||||||||||||||
20.13 | 0.80 | 19,292 | 0.97 | 2.04 | (f) | 1.12 | 33 | |||||||||||||||||||
20.22 | (0.13 | ) | 15,963 | 1.14 | 2.47 | (f) | 1.21 | 48 | ||||||||||||||||||
19.21 | (10.93 | ) | 31,619 | 1.30 | 2.45 | 1.69 | 51 | |||||||||||||||||||
22.01 | 22.70 | 8,790 | 1.49 | 0.07 | 1.54 | 82 | ||||||||||||||||||||
18.29 | (3.36 | ) | 503 | 1.50 | 2.02 | (f) | 1.75 | 38 | ||||||||||||||||||
19.21 | 0.24 | 227 | 1.52 | 1.91 | (f) | 1.69 | 33 | |||||||||||||||||||
19.31 | (0.66 | ) | 98 | 1.64 | 2.03 | (f) | 1.71 | 48 | ||||||||||||||||||
20.00 | (10.26 | ) | 3,152,864 | 0.55 | 2.59 | 0.71 | 51 | |||||||||||||||||||
22.78 | 23.59 | 2,859,645 | 0.71 | 2.12 | 0.71 | 82 | ||||||||||||||||||||
18.91 | (2.59 | ) | 2,487,086 | 0.71 | 2.65 | (f) | 0.72 | 38 | ||||||||||||||||||
19.84 | (5.88 | ) | 1,854,941 | 0.73 | 1.47 | (f) | 0.74 | 33 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 117 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (a) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
JPMorgan International Equity Fund | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Year Ended October 31, 2018 | $ | 17.81 | $ | 0.33 | $ | (2.33 | ) | $ | (2.00 | ) | $ | (0.25 | ) | |||||||
Year Ended October 31, 2017 | 14.24 | 0.22 | 3.39 | 3.61 | (0.04 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.75 | 0.22 | (0.51 | ) | (0.29 | ) | (0.22 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.25 | 0.23 | (0.50 | ) | (0.27 | ) | (0.23 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.92 | 0.37 | (d) | (0.68 | ) | (0.31 | ) | (0.36 | ) | |||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 16.83 | 0.25 | (2.23 | ) | (1.98 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2017 | 13.50 | 0.12 | 3.22 | 3.34 | (0.01 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.02 | 0.13 | (0.47 | ) | (0.34 | ) | (0.18 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.52 | 0.15 | (0.48 | ) | (0.33 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.20 | 0.26 | (d) | (0.64 | ) | (0.38 | ) | (0.30 | ) | |||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 18.09 | 0.41 | (2.40 | ) | (1.99 | ) | (0.28 | ) | ||||||||||||
Year Ended October 31, 2017 | 14.45 | 0.26 | 3.44 | 3.70 | (0.06 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.95 | 0.24 | (0.48 | ) | (0.24 | ) | (0.26 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.45 | 0.29 | (0.53 | ) | (0.24 | ) | (0.26 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.39 | (d) | (0.67 | ) | (0.28 | ) | (0.40 | ) | |||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2018 | 17.70 | 0.29 | (2.33 | ) | (2.04 | ) | (0.22 | ) | ||||||||||||
Year Ended October 31, 2017 | 14.17 | 0.17 | 3.38 | 3.55 | (0.02 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.69 | 0.18 | (0.50 | ) | (0.32 | ) | (0.20 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.19 | 0.20 | (0.51 | ) | (0.31 | ) | (0.19 | ) | ||||||||||||
Year Ended October 31, 2014 | 15.87 | 0.30 | (d) | (0.65 | ) | (0.35 | ) | (0.33 | ) | |||||||||||
Class R5 | ||||||||||||||||||||
Year Ended October 31, 2018 | 18.13 | 0.41 | (2.40 | ) | (1.99 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2017 | 14.47 | 0.21 | 3.52 | 3.73 | (0.07 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.97 | 0.27 | (0.49 | ) | (0.22 | ) | (0.28 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.46 | 0.29 | (0.49 | ) | (0.20 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.44 | (d) | (0.69 | ) | (0.25 | ) | (0.42 | ) | |||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2018 | 18.13 | 0.43 | (2.39 | ) | (1.96 | ) | (0.31 | ) | ||||||||||||
Year Ended October 31, 2017 | 14.46 | 0.29 | 3.46 | 3.75 | (0.08 | ) | ||||||||||||||
Year Ended October 31, 2016 | 14.97 | 0.29 | (0.51 | ) | (0.22 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2015 | 15.46 | 0.32 | (0.52 | ) | (0.20 | ) | (0.29 | ) | ||||||||||||
Year Ended October 31, 2014 | 16.13 | 0.45 | (d) | (0.69 | ) | (0.24 | ) | (0.43 | ) |
(a) | Calculated based upon average shares outstanding. |
(b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(c) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(d) | Reflects special dividends paid out during the period by several of the Fund’s holdings. Had the Fund not received the special dividends, the net investment income (loss) per share would have been $0.32, $0.21, $0.34, $0.25, $0.39 and $0.40 for Class A, Class C, Class I, Class R2, Class R5 and Class R6, respectively, and the net investment income (loss) ratio would have been 2.01%, 1.40%, 2.08%, 1.59%, 2.40% and 2.48% for Class A, Class C, Class I, Class R2, Class R5 and Class R6, respectively. |
SEE NOTES TO FINANCIAL STATEMENTS.
118 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate | ||||||||||||||||||||
$ | 15.56 | (11.42 | )% | $ | 240,394 | 0.95 | % | 1.88 | % | 1.32 | % | 33 | % | |||||||||||||
17.81 | 25.43 | 302,130 | 1.23 | 1.39 | 1.35 | 17 | ||||||||||||||||||||
14.24 | (1.83 | ) | 216,932 | 1.31 | 1.62 | 1.49 | 11 | |||||||||||||||||||
14.75 | (1.89 | ) | 224,370 | 1.31 | 1.50 | 1.59 | 13 | |||||||||||||||||||
15.25 | (2.06 | ) | 186,242 | 1.31 | 2.34 | (d) | 1.45 | 6 | ||||||||||||||||||
14.68 | (11.89 | ) | 18,899 | 1.45 | 1.48 | 1.83 | 33 | |||||||||||||||||||
16.83 | 24.79 | 24,281 | 1.74 | 0.83 | 1.88 | 17 | ||||||||||||||||||||
13.50 | (2.31 | ) | 22,235 | 1.81 | 0.97 | 2.06 | 11 | |||||||||||||||||||
14.02 | (2.36 | ) | 28,313 | 1.81 | 1.02 | 2.05 | 13 | |||||||||||||||||||
14.52 | (2.59 | ) | 26,299 | 1.81 | 1.73 | (d) | 1.95 | 6 | ||||||||||||||||||
15.82 | (11.20 | ) | 179,831 | 0.70 | 2.30 | 1.06 | 33 | |||||||||||||||||||
18.09 | 25.69 | 139,715 | 0.99 | 1.59 | 1.10 | 17 | ||||||||||||||||||||
14.45 | (1.50 | ) | 94,362 | 1.06 | 1.69 | 1.24 | 11 | |||||||||||||||||||
14.95 | (1.66 | ) | 522,402 | 1.06 | 1.84 | 1.19 | 13 | |||||||||||||||||||
15.45 | (1.88 | ) | 494,344 | 1.06 | 2.41 | (d) | 1.20 | 6 | ||||||||||||||||||
15.44 | (11.68 | ) | 1,833 | 1.25 | 1.64 | 1.60 | 33 | |||||||||||||||||||
17.70 | 25.12 | 2,096 | 1.49 | 1.07 | 1.71 | 17 | ||||||||||||||||||||
14.17 | (2.08 | ) | 1,461 | 1.56 | 1.28 | 1.95 | 11 | |||||||||||||||||||
14.69 | (2.14 | ) | 1,203 | 1.56 | 1.28 | 1.92 | 13 | |||||||||||||||||||
15.19 | (2.33 | ) | 1,405 | 1.56 | 1.92 | (d) | 1.70 | 6 | ||||||||||||||||||
15.85 | (11.16 | ) | 19,516 | 0.60 | 2.31 | 0.91 | 33 | |||||||||||||||||||
18.13 | 25.88 | 21,891 | 0.84 | 1.36 | 0.93 | 17 | ||||||||||||||||||||
14.47 | (1.34 | ) | 58,836 | 0.86 | 1.93 | 1.02 | 11 | |||||||||||||||||||
14.97 | (1.42 | ) | 57,500 | 0.86 | 1.88 | 1.06 | 13 | |||||||||||||||||||
15.46 | (1.65 | ) | 95,749 | 0.86 | 2.73 | (d) | 1.00 | 6 | ||||||||||||||||||
15.86 | (11.04 | ) | 3,808,621 | 0.50 | 2.42 | 0.81 | 33 | |||||||||||||||||||
18.13 | 26.04 | 3,516,978 | 0.74 | 1.84 | 0.81 | 17 | ||||||||||||||||||||
14.46 | (1.36 | ) | 3,030,640 | 0.81 | 2.05 | 0.91 | 11 | |||||||||||||||||||
14.97 | (1.37 | ) | 2,088,835 | 0.80 | 2.03 | 0.91 | 13 | |||||||||||||||||||
15.46 | (1.60 | ) | 1,681,788 | 0.81 | 2.81 | (d) | 0.95 | 6 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 119 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan International Equity Income Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | $ | 16.50 | $ | 0.51 | $ | (1.49 | ) | $ | (0.98 | ) | $ | (0.52 | ) | $ | — | $ | (0.52 | ) | ||||||||||
Year Ended October 31, 2017 | 14.38 | 0.42 | 2.16 | 2.58 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.66 | 0.45 | (f) | (1.01 | ) | (0.56 | ) | (0.46 | ) | (0.26 | ) | (0.72 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.41 | 0.39 | (f) | (0.33 | ) | 0.06 | (0.65 | ) | (0.16 | ) | (0.81 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.67 | 0.91 | (g) | (0.38 | ) | 0.53 | (0.66 | ) | (0.13 | ) | (0.79 | ) | ||||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.38 | 0.42 | (1.48 | ) | (1.06 | ) | (0.44 | ) | — | (0.44 | ) | |||||||||||||||||
Year Ended October 31, 2017 | 14.30 | 0.34 | 2.15 | 2.49 | (0.41 | ) | — | (0.41 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.59 | 0.38 | (f) | (1.01 | ) | (0.63 | ) | (0.40 | ) | (0.26 | ) | (0.66 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.36 | 0.39 | (f) | (0.42 | ) | (0.03 | ) | (0.58 | ) | (0.16 | ) | (0.74 | ) | |||||||||||||||
Year Ended October 31, 2014 | 16.63 | 0.84 | (g) | (0.40 | ) | 0.44 | (0.58 | ) | (0.13 | ) | (0.71 | ) | ||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.55 | 0.56 | (1.51 | ) | (0.95 | ) | (0.56 | ) | — | (0.56 | ) | |||||||||||||||||
Year Ended October 31, 2017 | 14.41 | 0.50 | 2.14 | 2.64 | (0.50 | ) | — | (0.50 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.70 | 0.46 | (f) | (0.98 | ) | (0.52 | ) | (0.51 | ) | (0.26 | ) | (0.77 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.45 | 0.49 | (f) | (0.37 | ) | 0.12 | (0.71 | ) | (0.16 | ) | (0.87 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.71 | 0.96 | (g) | (0.40 | ) | 0.56 | (0.69 | ) | (0.13 | ) | (0.82 | ) | ||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.47 | 0.45 | (1.49 | ) | (1.04 | ) | (0.47 | ) | — | (0.47 | ) | |||||||||||||||||
Year Ended October 31, 2017 | 14.36 | 0.41 | 2.13 | 2.54 | (0.43 | ) | — | (0.43 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.65 | 0.39 | (f) | (0.98 | ) | (0.59 | ) | (0.44 | ) | (0.26 | ) | (0.70 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.41 | 0.61 | (f) | (0.60 | ) | 0.01 | (0.61 | ) | (0.16 | ) | (0.77 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.67 | 0.87 | (g) | (0.39 | ) | 0.48 | (0.61 | ) | (0.13 | ) | (0.74 | ) | ||||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.57 | 0.42 | (1.35 | ) | (0.93 | ) | (0.58 | ) | — | (0.58 | ) | |||||||||||||||||
Year Ended October 31, 2017 | 14.42 | 0.55 | 2.12 | 2.67 | (0.52 | ) | — | (0.52 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.70 | 0.49 | (f) | (0.98 | ) | (0.49 | ) | (0.53 | ) | (0.26 | ) | (0.79 | ) | |||||||||||||||
Year Ended October 31, 2015 | 16.46 | 0.76 | (f) | (0.63 | ) | 0.13 | (0.73 | ) | (0.16 | ) | (0.89 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 16.72 | 0.99 | (g) | (0.39 | ) | 0.60 | (0.73 | ) | (0.13 | ) | (0.86 | ) | ||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 16.55 | 0.58 | (1.50 | ) | (0.92 | ) | (0.59 | ) | — | (0.59 | ) | |||||||||||||||||
Year Ended October 31, 2017 | 14.41 | 0.16 | 2.50 | 2.66 | (0.52 | ) | — | (0.52 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 15.69 | 0.51 | (f) | (0.99 | ) | (0.48 | ) | (0.54 | ) | (0.26 | ) | (0.80 | ) | |||||||||||||||
January 30, 2015 (h) through October 31, 2015 | 15.82 | 0.69 | (f) | (0.41 | ) | 0.28 | (0.41 | ) | — | (0.41 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | 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 $0.66, $0.59, $0.71, $0.62 and $0.74 for Class A, Class C, Class I, Class R2 and Class R5, respectively, and the net investment income (loss) ratio would have been 3.94%, 3.53%, 4.25%, 3.74% and 4.44% for Class A, Class C, Class I, Class R2 and Class R5, respectively |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
120 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 15.00 | (6.18 | )% | $ | 68,420 | 0.95 | % | 3.09 | % | 1.42 | % | 92 | % | |||||||||||||
16.50 | 18.24 | 84,553 | 1.25 | 2.70 | 1.52 | 64 | ||||||||||||||||||||
14.38 | (3.60 | ) | 66,722 | 1.24 | 3.06 | (f) | 1.57 | 162 | ||||||||||||||||||
15.66 | 0.29 | 66,499 | 1.25 | 2.42 | (f) | 1.67 | 238 | |||||||||||||||||||
16.41 | 3.18 | 74,652 | 1.25 | 5.44 | (g) | 1.67 | 138 | |||||||||||||||||||
14.88 | (6.68 | ) | 12,371 | 1.45 | 2.60 | 1.94 | 92 | |||||||||||||||||||
16.38 | 17.64 | 13,679 | 1.74 | 2.24 | 2.04 | 64 | ||||||||||||||||||||
14.30 | (4.09 | ) | 11,754 | 1.75 | 2.59 | (f) | 2.12 | 162 | ||||||||||||||||||
15.59 | (0.23 | ) | 8,649 | 1.75 | 2.45 | (f) | 2.20 | 238 | ||||||||||||||||||
16.36 | 2.67 | 3,530 | 1.75 | 5.03 | (g) | 2.17 | 138 | |||||||||||||||||||
15.04 | (5.98 | ) | 47,701 | 0.70 | 3.35 | 1.18 | 92 | |||||||||||||||||||
16.55 | 18.65 | 86,550 | 0.90 | 3.21 | 1.27 | 64 | ||||||||||||||||||||
14.41 | (3.31 | ) | 54,642 | 0.89 | 3.13 | (f) | 1.31 | 162 | ||||||||||||||||||
15.70 | 0.66 | 35,177 | 0.91 | 3.00 | (f) | 1.41 | 238 | |||||||||||||||||||
16.45 | 3.39 | 34,719 | 1.00 | 5.75 | (g) | 1.42 | 138 | |||||||||||||||||||
14.96 | (6.53 | ) | 270 | 1.25 | 2.76 | 1.95 | 92 | |||||||||||||||||||
16.47 | 17.99 | 322 | 1.49 | 2.65 | 1.97 | 64 | ||||||||||||||||||||
14.36 | (3.84 | ) | 316 | 1.49 | 2.66 | (f) | 2.39 | 162 | ||||||||||||||||||
15.65 | (0.01 | ) | 52 | 1.50 | 3.74 | (f) | 1.89 | 238 | ||||||||||||||||||
16.41 | 2.90 | 574 | 1.50 | 5.24 | (g) | 1.92 | 138 | |||||||||||||||||||
15.06 | (5.89 | ) | 177 | 0.60 | 2.52 | 1.06 | 92 | |||||||||||||||||||
16.57 | 18.81 | 1,297 | 0.80 | 3.52 | 1.11 | 64 | ||||||||||||||||||||
14.42 | (3.14 | ) | 700 | 0.79 | 3.33 | (f) | 1.29 | 162 | ||||||||||||||||||
15.70 | 0.71 | 19 | 0.80 | 4.59 | (f) | 1.16 | 238 | |||||||||||||||||||
16.46 | 3.60 | 587 | 0.80 | 5.94 | (g) | 1.22 | 138 | |||||||||||||||||||
15.04 | (5.80 | ) | 12,512 | 0.50 | 3.53 | 0.91 | 92 | |||||||||||||||||||
16.55 | 18.81 | 14,055 | 0.74 | 0.99 | 1.22 | 64 | ||||||||||||||||||||
14.41 | (3.09 | ) | 21 | 0.75 | 3.48 | (f) | 3.06 | 162 | ||||||||||||||||||
15.69 | 1.66 | 21 | 0.75 | 5.70 | (f) | 1.15 | 238 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | �� | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 121 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan International Research Enhanced Equity Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | $ | 18.76 | $ | 0.45 | $ | (2.04 | ) | $ | (1.59 | ) | $ | (0.19 | ) | $ | (0.19 | ) | $ | (0.38 | ) | |||||||||
Year Ended October 31, 2017 | 15.54 | 0.34 | 3.23 | 3.57 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 16.54 | 0.40 | (f) | (0.89 | ) | (0.49 | ) | (0.36 | ) | (0.15 | ) | (0.51 | ) | |||||||||||||||
Year Ended October 31, 2015 | 20.38 | 0.43 | (0.60 | ) | (0.17 | ) | (0.40 | ) | (3.27 | ) | (3.67 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 21.20 | 0.47 | (0.56 | ) | (0.09 | ) | (0.39 | ) | (0.34 | ) | (0.73 | ) | ||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 18.92 | 0.35 | (1.91 | ) | (1.56 | ) | (0.16 | ) | (0.19 | ) | (0.35 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 15.68 | 0.41 | 3.23 | 3.64 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
Year Ended October 31, 2016 | 16.70 | 0.46 | (f) | (0.92 | ) | (0.46 | ) | (0.41 | ) | (0.15 | ) | (0.56 | ) | |||||||||||||||
Year Ended October 31, 2015 | 20.54 | 0.48 | (0.60 | ) | (0.12 | ) | (0.45 | ) | (3.27 | ) | (3.72 | ) | ||||||||||||||||
Year Ended October 31, 2014 | 21.36 | 0.52 | (0.56 | ) | (0.04 | ) | (0.44 | ) | (0.34 | ) | (0.78 | ) | ||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
November 1, 2017 (h) through October 31, 2018 | 18.98 | 0.56 | (2.16 | ) | (1.60 | ) | (0.22 | ) | (0.19 | ) | (0.41 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | 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) | Amount rounds to less than 0.005%. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
122 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 16.79 | (8.66 | )% | $ | 203,437 | 0.60 | % | 2.40 | % | 0.84 | % | 42 | % | |||||||||||||
18.76 | 23.41 | 298,112 | 0.59 | 1.98 | 0.90 | 33 | ||||||||||||||||||||
15.54 | (2.94 | ) | 69,626 | 0.60 | 2.60 | (f) | 1.02 | 24 | ||||||||||||||||||
16.54 | (0.29 | ) | 82,667 | 0.60 | 2.51 | 0.99 | 39 | |||||||||||||||||||
20.38 | (0.40 | ) | 96,325 | 0.59 | 2.23 | 1.10 | 63 | |||||||||||||||||||
17.01 | (8.42 | ) | 152,610 | 0.35 | 1.85 | 0.56 | 42 | |||||||||||||||||||
18.92 | 23.71 | 4,740,590 | 0.34 | 2.37 | 0.58 | 33 | ||||||||||||||||||||
15.68 | (2.72 | ) | 1,241,856 | 0.34 | 2.98 | (f) | 0.59 | 24 | ||||||||||||||||||
16.70 | 0.00 | (g) | 779,908 | 0.35 | 2.79 | 0.60 | 39 | |||||||||||||||||||
20.54 | (0.16 | ) | 562,180 | 0.34 | 2.45 | 0.84 | 63 | |||||||||||||||||||
16.97 | (8.60 | ) | 4,344,571 | 0.25 | 3.00 | 0.32 | 42 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 123 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | Net realized gain | Total distributions | ||||||||||||||||||||||
JPMorgan International Unconstrained Equity Fund |
| |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | $ | 21.14 | $ | 0.36 | (c) | $ | (3.13 | ) | $ | (2.77 | ) | $ | (0.13 | ) | $ | — | $ | (0.13 | ) | |||||||||
Year Ended October 31, 2017 | 17.24 | 0.16 | (c) | 4.09 | 4.25 | (0.35 | ) | — | (0.35 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.61 | 0.22 | (c)(d) | (0.55 | ) | (0.33 | ) | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.59 | 0.09 | (c)(d) | 0.39 | 0.48 | (0.17 | ) | (1.29 | ) | (1.46 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.59 | 0.13 | (e) | (0.65 | ) | (0.52 | ) | (0.17 | ) | (1.31 | ) | (1.48 | ) | |||||||||||||||
Class C | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 20.90 | 0.26 | (c) | (3.09 | ) | (2.83 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 17.04 | 0.05 | (c) | 4.06 | 4.11 | (0.25 | ) | — | (0.25 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.45 | 0.13 | (c)(d) | (0.53 | ) | (0.40 | ) | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.44 | (0.02 | )(c)(d) | 0.39 | 0.37 | (0.07 | ) | (1.29 | ) | (1.36 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.47 | 0.09 | (e) | (0.69 | ) | (0.60 | ) | (0.12 | ) | (1.31 | ) | (1.43 | ) | |||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 21.41 | 0.44 | (c) | (3.19 | ) | (2.75 | ) | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 17.45 | 0.23 | (c) | 4.13 | 4.36 | (0.40 | ) | — | (0.40 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.71 | 0.24 | (c)(d) | (0.50 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||
Year Ended October 31, 2015 | 18.67 | 0.15 | (c)(d) | 0.38 | 0.53 | (0.20 | ) | (1.29 | ) | (1.49 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.64 | 0.21 | (e) | (0.67 | ) | (0.46 | ) | (0.20 | ) | (1.31 | ) | (1.51 | ) | |||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 21.11 | 0.35 | (c) | (3.17 | ) | (2.82 | ) | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 17.21 | 0.06 | (c) | 4.14 | 4.20 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.57 | 0.15 | (c)(d) | (0.51 | ) | (0.36 | ) | — | — | — | ||||||||||||||||||
Year Ended October 31, 2015 | 18.55 | 0.03 | (c)(d) | 0.39 | 0.42 | (0.11 | ) | (1.29 | ) | (1.40 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.53 | 0.12 | (e) | (0.68 | ) | (0.56 | ) | (0.11 | ) | (1.31 | ) | (1.42 | ) | |||||||||||||||
Class R5 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 21.39 | 0.53 | (c) | (3.25 | ) | (2.72 | ) | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 17.44 | 0.20 | (c) | 4.17 | 4.37 | (0.42 | ) | — | (0.42 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.75 | 0.27 | (c)(d) | (0.52 | ) | (0.25 | ) | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.72 | 0.16 | (c)(d) | 0.39 | 0.55 | (0.23 | ) | (1.29 | ) | (1.52 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.69 | 0.24 | (e) | (0.67 | ) | (0.43 | ) | (0.23 | ) | (1.31 | ) | (1.54 | ) | |||||||||||||||
Class R6 | ||||||||||||||||||||||||||||
Year Ended October 31, 2018 | 21.40 | 0.44 | (c) | (3.16 | ) | (2.72 | ) | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||
Year Ended October 31, 2017 | 17.45 | 0.26 | (c) | 4.12 | 4.38 | (0.43 | ) | — | (0.43 | ) | ||||||||||||||||||
Year Ended October 31, 2016 | 17.76 | 0.29 | (c)(d) | (0.52 | ) | (0.23 | ) | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||
Year Ended October 31, 2015 | 18.73 | (0.01 | )(c)(d) | 0.57 | 0.56 | (0.24 | ) | (1.29 | ) | (1.53 | ) | |||||||||||||||||
Year Ended October 31, 2014 | 20.70 | 0.25 | (e) | (0.67 | ) | (0.42 | ) | (0.24 | ) | (1.31 | ) | (1.55 | ) |
(a) | 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. |
(b) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(c) | Calculated based upon average shares outstanding. |
(d) | 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. |
(e) | Reflects special dividends paid out during the period by one of the Fund’s holdings. Had the Fund not received the special dividend, the net investment income (loss) per share would have been $0.10, $0.06, $0.17, $0.08, $0.20 and $0.22 for Class A, Class C, Class I, Class R2, Class R5 and Class R6, respectively and the net investment income (loss) ratio would have been 0.80%, 0.37%, 0.99%, 0.48%, 1.18% and 1.23% for Class A, Class C, Class I, Class R2, Class R5 and Class R6, respectively. |
SEE NOTES TO FINANCIAL STATEMENTS.
124 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
| Ratios/Supplemental data | |||||||||||||||||||||||||
Ratios to average net assets | ||||||||||||||||||||||||||
Net asset value, end of period | Total return (excludes sales charge) (a) | Net assets, end of period (000’s) | Net expenses (b) | Net investment income (loss) | Expenses without waivers and reimbursements | Portfolio turnover rate | ||||||||||||||||||||
$ | 18.24 | (13.20 | )% | $ | 84,325 | 1.00 | % | 1.75 | % | 1.38 | % | 63 | % | |||||||||||||
21.14 | 25.16 | 67,684 | 1.24 | 0.83 | 1.46 | 38 | ||||||||||||||||||||
17.24 | (1.86 | ) | 14,034 | 1.24 | 1.28 | (d) | 1.61 | 51 | ||||||||||||||||||
17.61 | 3.04 | 5,824 | 1.24 | 0.49 | (d) | 2.31 | 42 | |||||||||||||||||||
18.59 | (2.47 | ) | 351 | 1.32 | 0.98 | (e) | 5.09 | 63 | ||||||||||||||||||
17.98 | (13.60 | ) | 22,532 | 1.50 | 1.29 | 1.89 | 63 | |||||||||||||||||||
20.90 | 24.51 | 14,534 | 1.74 | 0.27 | 2.00 | 38 | ||||||||||||||||||||
17.04 | (2.28 | ) | 4,626 | 1.74 | 0.75 | (d) | 2.14 | 51 | ||||||||||||||||||
17.45 | 2.39 | 3,439 | 1.74 | (0.12 | )(d) | 2.79 | 42 | |||||||||||||||||||
18.44 | (2.91 | ) | 137 | 1.82 | 0.55 | (e) | 6.19 | 63 | ||||||||||||||||||
18.49 | (12.96 | ) | 189,061 | 0.75 | 2.09 | 1.13 | 63 | |||||||||||||||||||
21.41 | 25.60 | 131,356 | 0.89 | 1.14 | 1.19 | 38 | ||||||||||||||||||||
17.45 | (1.47 | ) | 9,929 | 0.89 | 1.41 | (d) | 1.35 | 51 | ||||||||||||||||||
17.71 | 3.29 | 59,858 | 0.89 | 0.83 | (d) | 1.84 | 42 | |||||||||||||||||||
18.67 | (2.18 | ) | 3,868 | 1.07 | 1.17 | (e) | 5.55 | 63 | ||||||||||||||||||
18.14 | (13.46 | ) | 773 | 1.30 | 1.70 | 1.72 | 63 | |||||||||||||||||||
21.11 | 24.85 | 97 | 1.49 | 0.31 | 2.79 | 38 | ||||||||||||||||||||
17.21 | (2.05 | ) | 20 | 1.49 | 0.87 | (d) | 4.37 | 51 | ||||||||||||||||||
17.57 | 2.67 | 20 | 1.51 | 0.19 | (d) | 5.11 | 42 | |||||||||||||||||||
18.55 | (2.68 | ) | 68 | 1.57 | 0.66 | (e) | 6.05 | 63 | ||||||||||||||||||
18.49 | (12.84 | ) | 3,341 | 0.65 | 2.56 | 1.07 | 63 | |||||||||||||||||||
21.39 | 25.67 | 90 | 0.79 | 1.01 | 2.44 | 38 | ||||||||||||||||||||
17.44 | (1.38 | ) | 20 | 0.80 | 1.57 | (d) | 3.59 | 51 | ||||||||||||||||||
17.75 | 3.43 | 20 | 0.81 | 0.89 | (d) | 4.43 | 42 | |||||||||||||||||||
18.72 | (1.99 | ) | 70 | 0.87 | 1.36 | (e) | 5.34 | 63 | ||||||||||||||||||
18.50 | (12.81 | ) | 175,198 | 0.55 | 2.12 | 0.87 | 63 | |||||||||||||||||||
21.40 | 25.72 | 143,868 | 0.74 | 1.37 | 0.95 | 38 | ||||||||||||||||||||
17.45 | (1.29 | ) | 81,146 | 0.74 | 1.70 | (d) | 1.02 | 51 | ||||||||||||||||||
17.76 | 3.48 | 5,335 | 0.74 | (0.05 | )(d) | 2.87 | 42 | |||||||||||||||||||
18.73 | (1.95 | ) | 70 | 0.82 | 1.41 | (e) | 5.29 | 63 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 125 |
Table of Contents
FINANCIAL HIGHLIGHTS
FOR THE PERIODS INDICATED (continued)
Per share operating performance | ||||||||||||||||||||
Investment operations | Distributions | |||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) (b) | Net realized and unrealized gains (losses) on investments | Total from investment operations | Net investment income | ||||||||||||||||
JPMorgan International Value Fund |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Year Ended October 31, 2018 | $ | 14.26 | $ | 0.36 | $ | (1.87 | ) | $ | (1.51 | ) | $ | (0.31 | ) | |||||||
Year Ended October 31, 2017 | 12.23 | 0.22 | 2.50 | 2.72 | (0.69 | ) | ||||||||||||||
Year Ended October 31, 2016 | 13.02 | 0.23 | (0.88 | ) | (0.65 | ) | (0.14 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.14 | 0.18 | (f) | (0.83 | ) | (0.65 | ) | (0.47 | ) | |||||||||||
Year Ended October 31, 2014 | 15.02 | 0.47 | (f)(g) | (1.07 | ) | (0.60 | ) | (0.28 | ) | |||||||||||
Class C | ||||||||||||||||||||
Year Ended October 31, 2018 | 13.78 | 0.28 | (1.82 | ) | (1.54 | ) | (0.22 | ) | ||||||||||||
Year Ended October 31, 2017 | 11.88 | 0.15 | 2.42 | 2.57 | (0.67 | ) | ||||||||||||||
Year Ended October 31, 2016 | 12.65 | 0.17 | (0.87 | ) | (0.70 | ) | (0.07 | ) | ||||||||||||
Year Ended October 31, 2015 | 13.72 | 0.10 | (f) | (0.78 | ) | (0.68 | ) | (0.39 | ) | |||||||||||
Year Ended October 31, 2014 | 14.61 | 0.38 | (f)(g) | (1.05 | ) | (0.67 | ) | (0.22 | ) | |||||||||||
Class I | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.62 | 0.41 | (1.92 | ) | (1.51 | ) | (0.35 | ) | ||||||||||||
Year Ended October 31, 2017 | 12.57 | 0.28 | 2.55 | 2.83 | (0.78 | ) | ||||||||||||||
Year Ended October 31, 2016 | 13.37 | 0.28 | (0.91 | ) | (0.63 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.48 | 0.23 | (f) | (0.84 | ) | (0.61 | ) | (0.50 | ) | |||||||||||
Year Ended October 31, 2014 | 15.19 | 0.45 | (f)(g) | (1.04 | ) | (0.59 | ) | (0.12 | ) | |||||||||||
Class L | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.55 | 0.41 | (1.90 | ) | (1.49 | ) | (0.36 | ) | ||||||||||||
Year Ended October 31, 2017 | 12.50 | 0.27 | 2.57 | 2.84 | (0.79 | ) | ||||||||||||||
Year Ended October 31, 2016 | 13.29 | 0.31 | (0.93 | ) | (0.62 | ) | (0.17 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.41 | 0.23 | (f) | (0.83 | ) | (0.60 | ) | (0.52 | ) | |||||||||||
Year Ended October 31, 2014 | 15.29 | 0.53 | (f)(g) | (1.09 | ) | (0.56 | ) | (0.32 | ) | |||||||||||
Class R2 | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.01 | 0.31 | (1.84 | ) | (1.53 | ) | (0.28 | ) | ||||||||||||
Year Ended October 31, 2017 | 12.04 | 0.19 | 2.46 | 2.65 | (0.68 | ) | ||||||||||||||
Year Ended October 31, 2016 | 12.83 | 0.19 | (0.87 | ) | (0.68 | ) | (0.11 | ) | ||||||||||||
Year Ended October 31, 2015 | 13.93 | 0.14 | (f) | (0.81 | ) | (0.67 | ) | (0.43 | ) | |||||||||||
Year Ended October 31, 2014 | 14.78 | 0.42 | (f)(g) | (1.05 | ) | (0.63 | ) | (0.22 | ) | |||||||||||
Class R5 | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.51 | 0.42 | (1.91 | ) | (1.49 | ) | (0.37 | ) | ||||||||||||
Year Ended October 31, 2017 | 12.51 | 0.23 | 2.59 | 2.82 | (0.82 | ) | ||||||||||||||
September 9, 2016 (h) through October 31, 2016 | 12.55 | 0.03 | (0.07 | ) | (0.04 | ) | — | |||||||||||||
Class R6 | ||||||||||||||||||||
Year Ended October 31, 2018 | 14.53 | 0.43 | (1.91 | ) | (1.48 | ) | (0.38 | ) | ||||||||||||
Year Ended October 31, 2017 | 12.51 | 0.31 | 2.53 | 2.84 | (0.82 | ) | ||||||||||||||
Year Ended October 31, 2016 | 13.31 | 0.37 | (0.96 | ) | (0.59 | ) | (0.21 | ) | ||||||||||||
Year Ended October 31, 2015 | 14.42 | 0.18 | (f) | (0.76 | ) | (0.58 | ) | (0.53 | ) | |||||||||||
Year Ended October 31, 2014 | 15.29 | 0.54 | (f)(g) | (1.09 | ) | (0.55 | ) | (0.32 | ) |
(a) | Annualized for periods less than one year, unless otherwise noted. |
(b) | Calculated based upon average shares outstanding. |
(c) | Not annualized for periods less than one year. |
(d) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(e) | Includes interest expense, if applicable, which is less than 0.005% unless otherwise noted. |
(f) | 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 $0.39, $0.30, $0.37, $0.45, $0.34 and $0.46 for Class A, Class C, Class I, Class L, Class R2 and Class R6, respectively and the net investment income (loss) ratio would have been 2.67%, 2.13%, 2.44%, 2.99%, 2.39% and 3.06% for Class A, Class C, Class I, Class L, Class R2 and Class R6, respectively. |
(h) | Commencement of offering of class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS.
126 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 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 and reimbursements | Portfolio turnover rate (c) | ||||||||||||||||||||
$ | 12.44 | (10.88 | )% | $ | 242,231 | 1.00 | % | 2.59 | % | 1.27 | % | 90 | % | |||||||||||||
14.26 | 23.30 | 316,510 | 1.35 | 1.71 | 1.35 | 31 | ||||||||||||||||||||
12.23 | (5.01 | ) | 573,449 | 1.35 | 1.91 | 1.43 | 61 | |||||||||||||||||||
13.02 | (4.63 | ) | 695,251 | 1.35 | 1.31 | (f) | 1.45 | 74 | ||||||||||||||||||
14.14 | (4.09 | ) | 491,010 | 1.33 | 3.19 | (f)(g) | 1.36 | 59 | ||||||||||||||||||
12.02 | (11.37 | ) | 14,055 | 1.50 | 2.06 | 1.78 | 90 | |||||||||||||||||||
13.78 | 22.67 | 20,997 | 1.85 | 1.21 | 1.87 | 31 | ||||||||||||||||||||
11.88 | (5.54 | ) | 24,453 | 1.85 | 1.43 | 1.91 | 61 | |||||||||||||||||||
12.65 | (5.01 | ) | 31,296 | 1.85 | 0.79 | (f) | 1.90 | 74 | ||||||||||||||||||
13.72 | (4.64 | ) | 31,176 | 1.83 | 2.65 | (f)(g) | 1.86 | 59 | ||||||||||||||||||
12.76 | (10.62 | ) | 66,291 | 0.75 | 2.84 | 1.02 | 90 | |||||||||||||||||||
14.62 | 23.66 | 144,875 | 1.04 | 2.07 | 1.04 | 31 | ||||||||||||||||||||
12.57 | (4.74 | ) | 157,867 | 1.01 | 2.28 | 1.02 | 61 | |||||||||||||||||||
13.37 | (4.28 | ) | 233,045 | 1.03 | 1.62 | (f) | 1.03 | 74 | ||||||||||||||||||
14.48 | (3.90 | ) | 300,712 | 1.08 | 2.96 | (f)(g) | 1.10 | 59 | ||||||||||||||||||
12.70 | (10.57 | ) | 73,651 | 0.65 | 2.84 | 0.87 | 90 | |||||||||||||||||||
14.55 | 23.88 | 201,672 | 0.87 | 2.03 | 0.88 | 31 | ||||||||||||||||||||
12.50 | (4.63 | ) | 523,251 | 0.90 | 2.53 | 0.91 | 61 | |||||||||||||||||||
13.29 | (4.23 | ) | 1,480,321 | 0.95 | 1.63 | (f) | 0.99 | 74 | ||||||||||||||||||
14.41 | (3.75 | ) | 2,932,420 | 0.93 | 3.51 | (f)(g) | 0.96 | 59 | ||||||||||||||||||
12.20 | (11.19 | ) | 1,025 | 1.30 | 2.27 | 1.59 | 90 | |||||||||||||||||||
14.01 | 23.02 | 1,369 | 1.58 | 1.52 | 1.73 | 31 | ||||||||||||||||||||
12.04 | (5.28 | ) | 1,182 | 1.59 | 1.65 | 1.91 | 61 | |||||||||||||||||||
12.83 | (4.84 | ) | 1,929 | 1.60 | 1.01 | (f) | 2.01 | 74 | ||||||||||||||||||
13.93 | (4.33 | ) | 1,768 | 1.58 | 2.91 | (f)(g) | 1.61 | 59 | ||||||||||||||||||
12.65 | (10.58 | ) | 70 | 0.65 | 2.97 | 0.91 | 90 | |||||||||||||||||||
14.51 | 23.81 | 62 | 0.93 | 1.69 | 4.00 | 31 | ||||||||||||||||||||
12.51 | (0.32 | ) | 20 | 0.79 | 1.52 | 0.79 | 61 | |||||||||||||||||||
12.67 | (10.49 | ) | 124,246 | 0.55 | 3.06 | 0.77 | 90 | |||||||||||||||||||
14.53 | 23.99 | 108,302 | 0.80 | 2.28 | 0.82 | 31 | ||||||||||||||||||||
12.51 | (4.45 | ) | 27,998 | 0.72 | 3.00 | 0.73 | 61 | |||||||||||||||||||
13.31 | (4.04 | ) | 2,354 | 0.73 | 1.32 | (f) | 0.73 | 74 | ||||||||||||||||||
14.42 | (3.64 | ) | 30,992 | 0.83 | 3.58 | (f)(g) | 0.84 | 59 |
SEE NOTES TO FINANCIAL STATEMENTS.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 127 |
Table of Contents
AS OF OCTOBER 31, 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 11 separate funds of the Trusts (each, a “Fund” and collectively, the “Funds”) covered by this report:
Classes Offered | Trust | Diversified/Non-Diversified | ||||
JPMorgan Emerging Economies Fund | Class A, Class C, Class I, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan Emerging Markets 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 Europe Dynamic Fund*** | Class A, Class C, Class I, Class L and Class R6* | JPM I | Diversified | |||
JPMorgan Global Research Enhanced Index Fund | Class I and Class R6** | JPM I | Diversified | |||
JPMorgan Global Unconstrained Equity Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan International Advantage Fund**** | Class A, Class C, Class I, Class R2 and Class R6 | JPM I | Diversified | |||
JPMorgan International Equity Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan International Equity Income Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan International Research Enhanced Equity Fund | Class A, Class I and Class R6** | JPM II | Diversified | |||
JPMorgan International Unconstrained Equity Fund | Class A, Class C, Class I, Class R2, Class R5 and Class R6 | JPM I | Diversified | |||
JPMorgan International Value Fund | Class A, Class C, Class I, Class L, Class R2, Class R5 and Class R6 | JPM I | Diversified |
* | Class R6 commenced operations on October 1, 2018. |
** | Class R6 commenced operations on November 1, 2017. |
*** | Effective July 31, 2018, JPMorgan Intrepid European Fund changed its name to JPMorgan Europe Dynamic Fund. |
**** | Effective July 31, 2018, JPMorgan Intrepid International Fund changed its name to JPMorgan International Advantage Fund. |
As of December 1, 2016, Class L Shares of the JPMorgan Europe Dynamic Fund were publicly offered on a limited basis.
As of October 9, 2017, Class A Shares of the JPMorgan International Research Enhanced Equity Fund were publicly offered on a limited basis.
As of October 31, 2017, Class R2 Shares of the JPMorgan Global Unconstrained Equity Fund were not publicly offered for investment.
The investment objective of JPMorgan Emerging Economies Fund (“Emerging Economies Fund”) is to seek long-term capital growth.
The investment objective of JPMorgan Emerging Markets Equity Fund (“Emerging Markets Equity Fund”) is to seek to provide high total return.
The investment objective of JPMorgan Europe Dynamic Fund (“Europe Dynamic Fund”) is to seek total return from long-term capital growth. Total return consists of capital growth and current income.
The investment objective of JPMorgan Global Research Enhanced Index Fund (“Global Research Enhanced Index Fund”), JPMorgan Global Unconstrained Equity Fund (“Global Unconstrained Equity Fund”), JPMorgan International Research Enhanced Equity Fund (“International Research Enhanced Equity Fund”), JPMorgan International Unconstrained Equity Fund (“International Unconstrained Equity Fund”) and JPMorgan International Value Fund (“International Value Fund”) is to seek to provide long-term capital appreciation.
The investment objective of JPMorgan International Advantage Fund (“International Advantage Fund”) is to seek to maximize long-term capital growth by investing primarily in equity securities in developed markets outside the U.S.
The investment objective of JPMorgan International Equity Fund (“International Equity Fund”) is to seek total return from long-term capital growth and income. Total return consists of capital growth and current income.
The investment objective of JPMorgan International Equity Income Fund (“International Equity Income Fund”) is to seek to provide both current income and 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 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.
128 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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, thus, 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 their market value 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. Certain foreign equity instruments, as well as certain derivatives with equity reference obligations, are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post closing, but prior to the time the NAVs are calculated. Investments in open-end investment companies (the “Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Futures contracts are generally valued on the basis of available market quotations. Forward foreign currency exchange contracts are valued utilizing market quotations from approved Pricing Services.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds’ investments are summarized into the three broad levels listed below.
• | Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments. |
• | Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs. |
• | Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds’ assumptions in determining the fair value of investments). |
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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 129 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments (“SOIs”) (amounts in thousands):
Emerging Economies Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Chile | $ | — | $ | 5,518 | $ | — | $ | 5,518 | ||||||||
China | 72,468 | 405,760 | — | 478,228 | ||||||||||||
Hungary | — | 27,176 | — | 27,176 | ||||||||||||
India | 4,801 | 53,211 | — | 58,012 | ||||||||||||
Indonesia | — | 15,121 | — | 15,121 | ||||||||||||
Malaysia | — | 16,043 | — | 16,043 | ||||||||||||
Poland | — | 11,902 | — | 11,902 | ||||||||||||
Russia | 2,368 | 111,302 | — | 113,670 | ||||||||||||
South Africa | 9,589 | 44,367 | — | 53,956 | ||||||||||||
South Korea | — | 217,986 | — | 217,986 | ||||||||||||
Taiwan | 33,189 | 187,071 | — | 220,260 | ||||||||||||
Thailand | 44,574 | 22,810 | — | 67,384 | ||||||||||||
Turkey | — | 27,326 | — | 27,326 | ||||||||||||
United Kingdom | — | 4,424 | — | 4,424 | ||||||||||||
Vietnam | — | — | (a) | — | — | (a) | ||||||||||
Other Common Stocks | 204,271 | — | — | 204,271 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 371,260 | 1,150,017 | — | 1,521,277 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Rights | ||||||||||||||||
Other Rights | — | — | (a) | — | — | (a) | ||||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 42,721 | — | — | 42,721 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 413,981 | $ | 1,150,017 | $ | — | $ | 1,563,998 | ||||||||
|
|
|
|
|
|
|
|
Emerging Markets Equity Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 23,142 | $ | — | $ | 23,142 | ||||||||
China | 460,520 | 763,502 | — | 1,224,022 | ||||||||||||
Hong Kong | — | 293,202 | — | 293,202 | ||||||||||||
India | 84,000 | 681,770 | — | 765,770 | ||||||||||||
Indonesia | — | 116,569 | — | 116,569 | ||||||||||||
Macau | — | 53,167 | — | 53,167 | ||||||||||||
Portugal | — | 38,046 | — | 38,046 | ||||||||||||
Russia | — | 140,026 | — | 140,026 | ||||||||||||
South Africa | — | 266,322 | — | 266,322 | ||||||||||||
South Korea | — | 287,579 | — | 287,579 | ||||||||||||
Spain | — | 19,949 | — | 19,949 | ||||||||||||
Taiwan | 227,932 | 105,012 | — | 332,944 | ||||||||||||
Thailand | — | 25,885 | — | 25,885 | ||||||||||||
Turkey | — | 11,491 | — | 11,491 | ||||||||||||
Other Common Stocks | 938,849 | — | — | 938,849 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 1,711,301 | 2,825,662 | — | 4,536,963 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Warrants | ||||||||||||||||
Other Warrants | — | 22,668 | — | 22,668 | ||||||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 58,479 | — | — | 58,479 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 1,769,780 | $ | 2,848,330 | $ | — | $ | 4,618,110 | ||||||||
|
|
|
|
|
|
|
|
130 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Europe Dynamic Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 16,888 | $ | — | $ | 16,888 | ||||||||
Belgium | — | 11,667 | — | 11,667 | ||||||||||||
Denmark | — | 21,462 | — | 21,462 | ||||||||||||
Finland | — | 20,004 | — | 20,004 | ||||||||||||
France | — | 128,877 | — | 128,877 | ||||||||||||
Germany | — | 47,772 | — | 47,772 | ||||||||||||
Italy | — | 35,466 | — | 35,466 | ||||||||||||
Jordan | — | 9,149 | — | 9,149 | ||||||||||||
Luxembourg | — | 9,565 | — | 9,565 | ||||||||||||
Netherlands | 7,769 | 58,387 | — | 66,156 | ||||||||||||
Norway | — | 6,743 | — | 6,743 | ||||||||||||
Spain | — | 32,418 | — | 32,418 | ||||||||||||
Sweden | 6,363 | 35,741 | — | 42,104 | ||||||||||||
Switzerland | — | 127,420 | — | 127,420 | ||||||||||||
United Kingdom | 58 | 112,721 | — | 112,779 | ||||||||||||
United States | — | 7,941 | — | 7,941 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 14,190 | 682,221 | — | 696,411 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 51,037 | — | — | 51,037 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 65,227 | $ | 682,221 | $ | — | $ | 747,448 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | 201 | $ | — | $ | — | $ | 201 | ||||||||
|
|
|
|
|
|
|
|
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 131 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
Global Research Enhanced Index Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | 1,407 | $ | 166,489 | $ | — | $ | 167,896 | ||||||||
Austria | — | 9,003 | — | 9,003 | ||||||||||||
Belgium | — | 14,009 | — | 14,009 | ||||||||||||
China | — | 3,076 | — | 3,076 | ||||||||||||
Denmark | — | 23,661 | — | 23,661 | ||||||||||||
Finland | — | 19,682 | — | 19,682 | ||||||||||||
France | — | 243,105 | — | 243,105 | ||||||||||||
Germany | — | 178,811 | — | 178,811 | ||||||||||||
Hong Kong | — | 67,810 | — | 67,810 | ||||||||||||
Ireland | 17,954 | 11,977 | — | 29,931 | ||||||||||||
Italy | — | 26,027 | — | 26,027 | ||||||||||||
Japan | — | 467,890 | — | 467,890 | ||||||||||||
Luxembourg | — | 2,419 | — | 2,419 | ||||||||||||
Macau | — | 2,673 | — | 2,673 | ||||||||||||
Netherlands | — | 122,991 | — | 122,991 | ||||||||||||
New Zealand | — | 4,433 | — | 4,433 | ||||||||||||
Norway | — | 6,856 | — | 6,856 | ||||||||||||
Singapore | — | 25,566 | — | 25,566 | ||||||||||||
Spain | — | 52,670 | — | 52,670 | ||||||||||||
Sweden | 465 | 21,255 | — | 21,720 | ||||||||||||
Switzerland | — | 174,640 | — | 174,640 | ||||||||||||
United Kingdom | 10,584 | 288,714 | — | 299,298 | ||||||||||||
United States | 3,587,903 | 11,512 | — | 3,599,415 | ||||||||||||
Other Common Stocks | 186,235 | — | — | 186,235 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 3,804,548 | 1,945,269 | — | 5,749,817 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Rights | ||||||||||||||||
Spain | 104 | — | — | 104 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 3,804,652 | $ | 1,945,269 | $ | — | $ | 5,749,921 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | 1,258 | $ | — | $ | — | $ | 1,258 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (330 | ) | $ | — | $ | — | $ | (330 | ) | ||||||
|
|
|
|
|
|
|
|
132 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Global Unconstrained Equity Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 68 | $ | — | $ | 68 | ||||||||
Austria | — | 96 | — | 96 | ||||||||||||
China | — | 197 | — | 197 | ||||||||||||
France | — | 166 | — | 166 | ||||||||||||
Germany | — | 50 | — | 50 | ||||||||||||
Hong Kong | — | 68 | — | 68 | ||||||||||||
Indonesia | — | 71 | — | 71 | ||||||||||||
Japan | — | 193 | — | 193 | ||||||||||||
Singapore | — | 66 | — | 66 | ||||||||||||
Spain | — | 65 | — | 65 | ||||||||||||
Switzerland | — | 280 | — | 280 | ||||||||||||
United Kingdom | 64 | 97 | — | 161 | ||||||||||||
Other Common Stocks | 2,381 | — | — | 2,381 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 2,445 | $ | 1,417 | $ | — | $ | 3,862 | ||||||||
|
|
|
|
|
|
|
| |||||||||
International Advantage Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 244,838 | $ | — | $ | 244,838 | ||||||||
Austria | — | 26,786 | — | 26,786 | ||||||||||||
Belgium | — | 75,843 | — | 75,843 | ||||||||||||
China | — | 22,011 | — | 22,011 | ||||||||||||
Denmark | — | 81,834 | — | 81,834 | ||||||||||||
Finland | — | 93,945 | — | 93,945 | ||||||||||||
France | 11,567 | 229,511 | — | 241,078 | ||||||||||||
Germany | — | 205,012 | — | 205,012 | ||||||||||||
Hong Kong | — | 50,305 | — | 50,305 | ||||||||||||
Israel | — | 14,473 | — | 14,473 | ||||||||||||
Italy | — | 54,052 | — | 54,052 | ||||||||||||
Japan | — | 812,065 | — | 812,065 | ||||||||||||
Luxembourg | 8,713 | 24,462 | — | 33,175 | ||||||||||||
Macau | — | 23,167 | — | 23,167 | ||||||||||||
Netherlands | 3,885 | 222,564 | — | 226,449 | ||||||||||||
Norway | — | 106,846 | — | 106,846 | ||||||||||||
Portugal | — | 14,563 | — | 14,563 | ||||||||||||
Russia | — | 8,431 | — | 8,431 | ||||||||||||
Singapore | — | 92,126 | — | 92,126 | ||||||||||||
South Africa | — | 6,723 | — | 6,723 | ||||||||||||
Spain | — | 85,565 | — | 85,565 | ||||||||||||
Sweden | — | 107,343 | — | 107,343 | ||||||||||||
Switzerland | — | 283,971 | — | 283,971 | ||||||||||||
United Kingdom | 8,157 | 376,938 | — | 385,095 | ||||||||||||
Other Common Stocks | 22,217 | — | — | 22,217 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 54,539 | 3,263,374 | — | 3,317,913 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 52,914 | — | — | 52,914 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 107,453 | $ | 3,263,374 | $ | — | $ | 3,370,827 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (852 | ) | $ | — | $ | — | $ | (852 | ) | ||||||
|
|
|
|
|
|
|
|
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 133 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
International Equity Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 74,273 | $ | — | $ | 74,273 | ||||||||
Austria | — | 35,794 | — | 35,794 | ||||||||||||
China | — | 92,049 | — | 92,049 | ||||||||||||
Denmark | — | 56,579 | — | 56,579 | ||||||||||||
France | — | 616,427 | — | 616,427 | ||||||||||||
Germany | — | 311,753 | — | 311,753 | ||||||||||||
Hong Kong | — | 125,754 | — | 125,754 | ||||||||||||
Japan | — | 718,550 | — | 718,550 | ||||||||||||
Macau | — | 29,112 | — | 29,112 | ||||||||||||
Netherlands | — | 273,311 | — | 273,311 | ||||||||||||
Singapore | — | 53,342 | — | 53,342 | ||||||||||||
South Africa | — | 10,880 | — | 10,880 | ||||||||||||
South Korea | — | 57,983 | — | 57,983 | ||||||||||||
Spain | — | 46,732 | — | 46,732 | ||||||||||||
Sweden | 15,927 | 33,205 | — | 49,132 | ||||||||||||
Switzerland | — | 584,286 | — | 584,286 | ||||||||||||
United Kingdom | 125,877 | 666,779 | — | 792,656 | ||||||||||||
United States | — | 40,690 | — | 40,690 | ||||||||||||
Other Common Stocks | 129,550 | — | — | 129,550 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 271,354 | 3,827,499 | — | 4,098,853 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 166,797 | — | — | 166,797 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 438,151 | $ | 3,827,499 | $ | — | $ | 4,265,650 | ||||||||
|
|
|
|
|
|
|
|
134 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
International Equity Income Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 9,722 | $ | — | $ | 9,722 | ||||||||
Austria | — | 1,331 | — | 1,331 | ||||||||||||
China | — | 965 | — | 965 | ||||||||||||
Denmark | — | 3,980 | — | 3,980 | ||||||||||||
Finland | — | 3,189 | — | 3,189 | ||||||||||||
France | — | 19,595 | — | 19,595 | ||||||||||||
Germany | — | 8,139 | — | 8,139 | ||||||||||||
Hong Kong | — | 1,615 | — | 1,615 | ||||||||||||
Italy | — | 1,908 | — | 1,908 | ||||||||||||
Japan | — | 24,417 | — | 24,417 | ||||||||||||
Macau | — | 658 | — | 658 | ||||||||||||
Netherlands | — | 9,812 | — | 9,812 | ||||||||||||
Norway | — | 1,635 | — | 1,635 | ||||||||||||
Singapore | — | 1,656 | — | 1,656 | ||||||||||||
South Korea | — | 1,288 | — | 1,288 | ||||||||||||
Spain | — | 1,741 | — | 1,741 | ||||||||||||
Sweden | — | 1,463 | — | 1,463 | ||||||||||||
Switzerland | — | 17,359 | — | 17,359 | ||||||||||||
United Kingdom | — | 22,037 | — | 22,037 | ||||||||||||
United States | — | 2,935 | — | 2,935 | ||||||||||||
Other Common Stocks | 3,588 | — | — | 3,588 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 3,588 | $ | 135,445 | $ | — | $ | 139,033 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Appreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | 877 | $ | — | $ | 877 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Forward Foreign Currency Exchange Contracts | $ | — | $ | (551 | ) | $ | — | $ | (551 | ) | ||||||
|
|
|
|
|
|
|
|
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 135 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
International Research Enhanced Equity Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 284,166 | $ | — | $ | 284,166 | ||||||||
Austria | — | 18,139 | — | 18,139 | ||||||||||||
Belgium | — | 58,983 | — | 58,983 | ||||||||||||
Denmark | — | 77,220 | — | 77,220 | ||||||||||||
Finland | — | 73,492 | — | 73,492 | ||||||||||||
France | — | 595,200 | — | 595,200 | ||||||||||||
Germany | — | 421,335 | — | 421,335 | ||||||||||||
Hong Kong | — | 127,858 | — | 127,858 | ||||||||||||
Ireland | 31,028 | 16,774 | — | 47,802 | ||||||||||||
Italy | — | 97,184 | — | 97,184 | ||||||||||||
Japan | — | 1,113,756 | — | 1,113,756 | ||||||||||||
Luxembourg | — | 21,719 | — | 21,719 | ||||||||||||
Malta | — | — | — | (a) | — | (a) | ||||||||||
Netherlands | — | 266,409 | — | 266,409 | ||||||||||||
Singapore | — | 48,105 | — | 48,105 | ||||||||||||
Spain | — | 166,143 | — | 166,143 | ||||||||||||
Sweden | — | 62,913 | — | 62,913 | ||||||||||||
Switzerland | — | 451,004 | — | 451,004 | ||||||||||||
United Kingdom | 6,067 | 622,579 | — | 628,646 | ||||||||||||
United States | — | 40,526 | — | 40,526 | ||||||||||||
Other Common Stocks | 12,001 | — | — | 12,001 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 49,096 | 4,563,505 | — | (a) | 4,612,601 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Debt Securities | ||||||||||||||||
Corporate Bonds | ||||||||||||||||
Brazil | — | — | — | (a) | — | (a) | ||||||||||
Rights | ||||||||||||||||
Spain | 180 | ��� | — | 180 | ||||||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 56,728 | — | — | 56,728 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 106,004 | $ | 4,563,505 | $ | — | (a) | $ | 4,669,509 | |||||||
|
|
|
|
|
|
|
| |||||||||
Depreciation in Other Financial Instruments | ||||||||||||||||
Futures Contracts | $ | (2,151 | ) | $ | — | $ | — | $ | (2,151 | ) | ||||||
|
|
|
|
|
|
|
|
136 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
International Unconstrained Equity Fund
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 10,515 | $ | — | $ | 10,515 | ||||||||
Austria | — | 7,661 | — | 7,661 | ||||||||||||
China | — | 36,032 | — | 36,032 | ||||||||||||
Denmark | — | 9,280 | — | 9,280 | ||||||||||||
France | — | 28,526 | — | 28,526 | ||||||||||||
Germany | — | 54,698 | — | 54,698 | ||||||||||||
Hong Kong | — | 22,202 | — | 22,202 | ||||||||||||
Indonesia | — | 9,751 | — | 9,751 | ||||||||||||
Japan | — | 41,542 | — | 41,542 | ||||||||||||
Netherlands | — | 46,193 | — | 46,193 | ||||||||||||
South Korea | — | 7,172 | — | 7,172 | ||||||||||||
Switzerland | — | 35,726 | — | 35,726 | ||||||||||||
United Kingdom | 19,284 | 82,668 | — | 101,952 | ||||||||||||
United States | — | 10,348 | — | 10,348 | ||||||||||||
Other Common Stocks | 53,396 | — | — | 53,396 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 72,680 | 402,314 | — | 474,994 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments | ||||||||||||||||
Investment Companies | 1,995 | — | — | 1,995 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 74,675 | $ | 402,314 | $ | — | $ | 476,989 | ||||||||
|
|
|
|
|
|
|
| |||||||||
International Value Fund | ||||||||||||||||
Level 1 Quoted prices | Level 2 Other significant | Level 3 Significant | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | $ | — | $ | 39,314 | $ | — | $ | 39,314 | ||||||||
Austria | 1,524 | 4,850 | — | 6,374 | ||||||||||||
Belgium | — | 2,786 | — | 2,786 | ||||||||||||
Finland | 1,678 | 1,393 | — | 3,071 | ||||||||||||
France | 1,860 | 50,592 | — | 52,452 | ||||||||||||
Germany | — | 32,379 | — | 32,379 | ||||||||||||
Ghana | — | 620 | — | 620 | ||||||||||||
Hong Kong | — | 9,159 | — | 9,159 | ||||||||||||
Isle of Man | — | 342 | — | 342 | ||||||||||||
Israel | — | 3,714 | — | 3,714 | ||||||||||||
Italy | 699 | 5,723 | — | 6,422 | ||||||||||||
Japan | — | 135,206 | — | 135,206 | ||||||||||||
Luxembourg | — | 4,375 | — | 4,375 | ||||||||||||
Netherlands | 2,783 | 38,637 | — | 41,420 | ||||||||||||
New Zealand | — | 2,782 | — | 2,782 | ||||||||||||
Norway | 677 | 14,718 | — | 15,395 | ||||||||||||
Russia | — | 1,671 | — | 1,671 | ||||||||||||
Singapore | — | 5,027 | — | 5,027 | ||||||||||||
South Africa | — | 3,385 | — | 3,385 | ||||||||||||
Spain | 925 | 12,498 | — | 13,423 | ||||||||||||
Sweden | 592 | 14,656 | — | 15,248 | ||||||||||||
Switzerland | 990 | 43,308 | — | 44,298 | ||||||||||||
United Kingdom | 8,776 | 60,960 | — | 69,736 | ||||||||||||
United States | — | 684 | — | 684 | ||||||||||||
Other Common Stocks | 5,623 | — | — | 5,623 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 26,127 | $ | 488,779 | $ | — | $ | 514,906 | ||||||||
|
|
|
|
|
|
|
|
(a) | Amount rounds to less than one thousand. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 137 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the net asset value of the Funds.
As of October 31, 2018, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A or Regulation S under the Securities Act.
C. Securities Lending — Effective October 5, 2018, the Funds became authorized to engage in securities lending in order to generate additional income. The Funds are able to lend to approved borrowers. Citibank N. A. (“Citibank”) serves as lending agent for the Funds, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in an affiliated money market fund. The Funds retain loan fees and the interest on cash collateral investments but are required to pay the borrower a rebate for the use of cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Funds or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Income from securities lending (net). The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statements of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from the borrower so as to maintain a collateralization level a of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities).
The value of securities out on loan is recorded as an asset on the Statements of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of Collateral Investments are disclosed on the SOIs.
The Funds bear the risk of loss associated with the Collateral Investments and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the Collateral Investments declines below the amount owed to a borrower, the Funds may incur losses that exceed the amount they earned on lending the security. Upon termination of a loan, the Funds may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the Collateral Investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Funds from losses resulting from a borrower’s failure to return a loaned security.
The Funds did not lend out any securities during the period October 5, 2018 through October 31, 2018.
D. Investment Transactions with Affiliates — The Funds invested in Underlying Funds which are advised by the Adviser or its affiliates. An issuer which is under common control with the Funds may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the table 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 table below are in thousands.
Emerging Economies Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 84,272 | $ | 825,959 | $ | 867,510 | $ | — | $ | — | $ | 42,721 | 42,721 | $ | 729 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Emerging Markets Equity Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 128,728 | $ | 1,230,329 | $ | 1,300,578 | $ | — | (c) | $ | — | $ | 58,479 | 58,479 | $ | 1,758 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe Dynamic Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 27,134 | $ | 614,202 | $ | 590,299 | $ | — | $ | — | $ | 51,037 | 51,037 | $ | 360 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Research Enhanced Index Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares(a) | $ | 105,120 | $ | 1,843,475 | $ | 1,948,631 | $ | 36 | $ | — | $ | — | — | $ | 1,448 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Unconstrained Equity Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares(a) | $ | — | $ | 993 | $ | 993 | $ | — | $ | — | $ | — | — | $ | 1 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Advantage Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 53,390 | $ | 1,193,142 | $ | 1,193,618 | $ | — | $ | — | $ | 52,914 | 52,914 | $ | 1,245 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 139 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
International Equity Fund
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 24,698 | $ | 1,660,858 | $ | 1,518,759 | $ | — | $ | — | $ | 166,797 | 166,797 | $ | 1,484 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
International Equity Income Fund |
| |||||||||||||||||||||||||||||||||||
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares(a) | $ | 2,218 | $ | 47,992 | $ | 50,211 | $ | 1 | $ | — | $ | — | — | $ | 33 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
International Research Enhanced Equity Fund |
| |||||||||||||||||||||||||||||||||||
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 242,928 | $ | 1,871,646 | $ | 2,057,846 | $ | — | (c) | $ | — | $ | 56,728 | 56,728 | $ | 2,063 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
International Unconstrained Equity Fund |
| |||||||||||||||||||||||||||||||||||
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares, 2.02%(a)(b) | $ | 14,714 | $ | 278,993 | $ | 291,712 | $ | — | $ | — | $ | 1,995 | 1,995 | $ | 195 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
International Value Fund |
| |||||||||||||||||||||||||||||||||||
For the year ended October 31, 2018 | ||||||||||||||||||||||||||||||||||||
Security Description | Value at October 31, 2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation/ (Depreciation) | Value at October 31, 2018 | Shares at October 31, 2018 | Dividend Income | Capital Gain Distributions | |||||||||||||||||||||||||||
JPMorgan U.S. Government Money Market Fund Class Institutional Shares(a) | $ | 8,228 | $ | 151,272 | $ | 159,500 | $ | — | $ | — | $ | — | — | $ | 143 | $ | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 October 31, 2018. |
(c) | Amount rounds to less than one thousand. |
140 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
E. Futures Contracts — Emerging Economies Fund, Europe Dynamic Fund, Global Research Enhanced Index Fund, International Advantage Fund, International Research Enhanced Equity Fund, International Unconstrained Equity Fund and International Value Fund used index futures contracts to gain or reduce exposure to the stock market, maintain liquidity or minimize transaction costs. The Funds also bought futures contracts to invest incoming cash in the market or sold futures in response to cash outflows, thereby simulating an invested position in the underlying index.
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, which is considered restricted, is recorded on the Statements of Assets and Liabilities. A receivable from and/or a payable to brokers for the daily variation margin is also recorded on the Statements of Assets and Liabilities.
The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying instrument. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of positions.
The Funds’ futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
The table below discloses the volume of the Funds’ futures contracts activity during the year ended October 31, 2018, 2018 (amounts in thousands):
Emerging Economies Fund | Europe Dynamic Fund | Global Research Enhanced Index Fund | International Advantage Fund | International Research Enhanced Equity Fund | International Unconstrained Equity Fund | International Value Fund | ||||||||||||||||||||||
Futures Contracts — Equity: | ||||||||||||||||||||||||||||
Average Notional Balance Long | $ | 10,717 | $ | 8,917 | $ | 70,851 | $ | 56,335 | $ | 131,761 | $ | 14,019 | (a) | $ | 5,488 | |||||||||||||
Ending Notional Balance Long | — | 26,337 | 103,405 | 27,075 | 71,105 | — | — |
(a) | For the period January 1, 2018 through January 31, 2018. |
F. Forward Foreign Currency Exchange Contracts — International Equity Income Fund and International Value Fund may be exposed to foreign currency risks associated with some or all of their portfolio investments and used forward foreign currency exchange contracts to hedge or manage certain of these exposures as part of an investment strategy. Forward foreign currency exchange contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in U.S. dollars without the delivery of foreign currency.
The values of the forward foreign currency exchange contracts are adjusted daily based on the applicable exchange rate of the underlying currency. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract settlement date. When the forward foreign currency exchange contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time the contract was opened and the value at the time it was closed. The Funds also record a realized gain or loss when a forward foreign currency exchange contract offsets another forward foreign currency exchange contract with the same counterparty upon settlement.
The Funds may be required to post or receive collateral for non-deliverable forward foreign currency exchange contracts.
The table below discloses the volume of the Funds’ forward foreign currency exchange contracts activity during the year ended October 31, 2018 (amounts in thousands):
International Equity Income Fund | International Value Fund | |||||||
Forward Foreign Currency Exchange Contracts: | ||||||||
Average Settlement Value Purchased | $ | 10,041 | $ | 103,391 | (a) | |||
Average Settlement Value Sold | 7,101 | 94,926 | (a) | |||||
Ending Settlement Value Purchased | 54,441 | — | ||||||
Ending Settlement Value Sold | 53,216 | — |
(a) | For the period November 1, 2017 through April 30, 2018. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 141 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
G. Summary of Derivatives Information
The following tables present the value of derivatives held as of October 31, 2018, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
Europe Dynamic Fund
Derivative Contracts | Statements of Assets and Liabilities Location | |||||
Gross Assets: | Futures Contracts (a) | |||||
Equity contracts | Receivables, Net Assets — Unrealized Appreciation | $ | 201 | |||
|
|
(a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
Global Research Enhanced Index Fund
Derivative Contracts | Statements of Assets and Liabilities Location | |||||
Gross Assets: | Futures Contracts (a) | |||||
Equity contracts | Receivables, Net Assets — Unrealized Appreciation | $ | 1,258 | |||
|
| |||||
Gross Liabilities: | ||||||
Equity contracts | Payables, Net Assets — Unrealized Depreciation | $ | (330 | ) | ||
|
|
(a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
International Advantage Fund
Derivative Contracts | Statements of Assets and Liabilities Location | |||||
Gross Liabilities: | Futures Contracts (a) | |||||
Equity contracts | Payables, Net Assets — Unrealized Depreciation | $(852) | ||||
|
|
(a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
International Equity Income Fund
Derivative Contracts | Statements of Assets and Liabilities Location | |||
Gross Assets: | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | Receivables | $877 | ||
| ||||
Gross Liabilities: | ||||
Foreign exchange contracts | Payables | $(551) | ||
|
(a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
142 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
The following table presents the Fund’s gross derivative assets and liabilities by counterparty net of amounts available for offset under netting arrangements and any related collateral received or posted by the Fund as of August 31, 2018 (amounts in thousands):
International Equity Income Fund
Counterparty | Gross Amount of Derivative Assets Subject to Netting Arrangements Presented on the Statements of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Received | Net Amount Due From Counterparty (Not less than zero) | ||||||||||||
Barclays Bank plc | $ | 51 | $ | (41 | ) | $ | — | $ | 10 | |||||||
BNP Paribas | 45 | (8 | ) | — | 37 | |||||||||||
Citibank, NA | 77 | (34 | ) | — | 43 | |||||||||||
Goldman Sachs International | 75 | (3 | ) | — | 72 | |||||||||||
HSBC Bank NA | 1 | (1 | ) | — | — | |||||||||||
Merrill Lynch International | 77 | (51 | ) | — | 26 | |||||||||||
Royal Bank of Canada | 289 | (26 | ) | — | 263 | |||||||||||
Societe Generale | 28 | (7 | ) | — | 21 | |||||||||||
Standard Chartered Bank | 29 | (5 | ) | — | 24 | |||||||||||
State Street Corp. | 38 | (38 | ) | — | — | |||||||||||
TD Bank Financial Group | 167 | — | — | 167 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 877 | $ | (214 | ) | $ | — | $ | 663 | ||||||||
|
|
|
|
|
|
|
|
Counterparty | Gross Amount of Derivative Liabilities Subject to Netting Arrangements Presented on the Statements of Assets and Liabilities (a) | Derivatives Available for offset | Collateral Posted | Net Amount Due To Counterparty (Not less than zero) | ||||||||||||
Barclays Bank plc | $ | 41 | $ | (41 | ) | $ | — | $ | — | |||||||
BNP Paribas | 8 | (8 | ) | — | — | |||||||||||
Citibank, NA | 34 | (34 | ) | — | — | |||||||||||
Deutsche Bank AG | 15 | — | — | 15 | ||||||||||||
Goldman Sachs International | 3 | (3 | ) | — | — | |||||||||||
HSBC Bank NA | 107 | (1 | ) | — | 106 | |||||||||||
Merrill Lynch International | 51 | (51 | ) | — | — | |||||||||||
National Australia Bank Ltd. | 135 | — | — | 135 | ||||||||||||
Royal Bank of Canada | 26 | (26 | ) | — | — | |||||||||||
Societe Generale | 7 | (7 | ) | — | — | |||||||||||
Standard Chartered Bank | 5 | (5 | ) | — | — | |||||||||||
State Street Corp. | 62 | (38 | ) | — | 24 | |||||||||||
Union Bank of Switzerland AG | 57 | — | — | 57 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 551 | $ | (214 | ) | $ | — | $ | 337 | ||||||||
|
|
|
|
|
|
|
|
(a) | For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities subject to master netting arrangements on the Statements of Assets and Liabilities. |
The following table presents the value of derivatives held as of October 31, 2018, by their primary underlying risk exposure and respective location on the Statements of Assets and Liabilities (amounts in thousands):
International Research Enhanced Equity Fund
Derivative Contracts | Statements of Assets and Liabilities Location | |||||
Gross Liabilities: | Futures Contracts (a) | |||||
Equity contracts | Payables, Net Assets — Unrealized Depreciation | $ | (2,151 | ) | ||
|
|
(a) | This amount represents the cumulative appreciation (depreciation) of futures contracts as reported on the SOIs. The Statements of Assets and Liabilities only reflect the current day variation margin receivable/payable from/to brokers. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 143 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
The Funds are party to various derivative contracts governed by International Swaps and Derivatives Association master agreements (“ISDA agreements”). The Funds’ ISDA agreements, which are separately negotiated with each dealer counterparty, may contain provisions allowing, absent other considerations, a counterparty to exercise rights, to the extent not otherwise waived, against the Funds in the event the Funds’ net assets decline over time by a pre-determined percentage or fall below a pre-determined floor. The ISDA agreements may also contain provisions allowing, absent other conditions, the Funds to exercise rights, to the extent not otherwise waived, against a counterparty (e.g., decline in a counterparty’s credit rating below a specified level). Such rights for both a counterparty and the Funds often include the ability to terminate (i.e., close out) open contracts at prices which may favor a counterparty, which could have an adverse effect on the Funds. The ISDA agreements give the Funds and a counterparty the right, upon an event of default, to close out all transactions traded under such agreements and to net amounts owed or due across all transactions and offset such net payable or receivable with collateral posted to a segregated account by one party to the other.
The following tables present the effect of derivatives on the Statements of Operations for the year ended October 31, 2018, by primary underlying risk exposure (amounts in thousands):
Emerging Economies Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (2,733 | ) | |
|
|
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||
Derivative Contracts | Futures Contracts | |
Equity contracts | $(564) | |
|
Europe Dynamic Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 131 | ||
|
| |||
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 105 | ||
|
|
Global Research Enhanced Index Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 4,001 | ||
|
|
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (2,585 | ) | |
|
|
International Advantage Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (5,563 | ) | |
|
|
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (1,392 | ) | |
|
|
144 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
International Equity Income Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $ | (497 | ) | |
|
| |||
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $654 | |||
|
|
International Research Enhanced Equity Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 35,043 | ||
|
|
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | (10,776 | ) | |
|
|
International Unconstrained Equity Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Futures Contracts | |||
Equity contracts | $ | 76 | ||
|
|
International Value Fund
Amount of Realized Gain (Loss) on Derivatives Recognized on the Statements of Operations | ||||||||||||
Derivative Contracts | Futures Contracts | Forward Foreign Currency Exchange Contracts | Total | |||||||||
Equity contracts | $ | (1,495 | ) | $ | — | $ | (1,495 | ) | ||||
Foreign exchange contracts | — | (917 | ) | (917 | ) | |||||||
|
|
|
|
|
| |||||||
Total | $ | (1,495 | ) | $ | (917 | ) | $ | (2,412 | ) | |||
|
|
|
|
|
|
Amount of Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized on the Statements of Operations | ||||
Derivative Contracts | Forward Foreign Currency Exchange Contracts | |||
Foreign exchange contracts | $ | (170 | ) | |
|
|
The Funds’ derivatives contracts held at October 31, 2018 are not accounted for as hedging instruments under GAAP.
H. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund’s books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 145 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
assets and liabilities denominated in foreign currencies, which are held at period end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
I. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis. Interest income is determined on the basis of coupon interest accrued using the effective interest method which adjusts for amortization of premiums and accretion of discounts. Dividend income net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend. Certain Funds may receive other income from investments in loan assignments and/or unfunded commitments, including amendment fees, consent fees and commitment fees. These fees are recorded as income when received by the Fund. These amounts are included in Interest income from non-affiliates on the Statement of Operations.
J. Allocation of Income and Expenses — Expenses directly attributable to a fund are charged directly to that fund, while the expenses attributable to more than one fund of the Trusts are allocated among the respective funds. In calculating the NAV of each class, investment income, realized and unrealized gains and losses and expenses, other than class-specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day.
Transfer agency fees are class-specific expenses. The amount of the transfer agency fees charged to each class of the Funds for the year ended October 31, 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 | |||||||||||||||||||||||||||||||
Emerging Economies Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | $ | 12 | $ | 1 | $ | 5 | n/a | n/a | n/a | n/a | $ | — | (a) | $ | 14 | $ | 32 | |||||||||||||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 54 | 8 | 47 | $ | 18 | $ | — | (a) | $ | — | (a) | $ | — | (a) | — | (a) | 26 | 153 | ||||||||||||||||||||||
Europe Dynamic Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 14 | 2 | 5 | 2 | n/a | n/a | n/a | n/a | — | 23 | ||||||||||||||||||||||||||||||
Global Research Enhanced Index Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | n/a | n/a | 25 | n/a | n/a | n/a | n/a | n/a | 43 | 68 | ||||||||||||||||||||||||||||||
Global Unconstrained Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 1 | — | (a) | 1 | n/a | — | (a) | n/a | n/a | — | (a) | — | (a) | 2 | ||||||||||||||||||||||||||
International Advantage Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 16 | — | (a) | 2 | n/a | 56 | n/a | n/a | n/a | 22 | 96 | |||||||||||||||||||||||||||||
International Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 41 | 5 | 6 | n/a | 1 | n/a | n/a | — | (a) | 27 | 80 | |||||||||||||||||||||||||||||
International Equity Income Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 5 | 3 | 15 | n/a | 1 | n/a | n/a | �� | (a) | — | (a) | 24 | ||||||||||||||||||||||||||||
International Research Enhanced Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 61 | n/a | 13 | n/a | n/a | n/a | n/a | n/a | 30 | 104 | ||||||||||||||||||||||||||||||
International Unconstrained Equity Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 7 | 5 | 16 | n/a | 1 | n/a | n/a | 3 | — | (a) | 32 | |||||||||||||||||||||||||||||
International Value Fund | ||||||||||||||||||||||||||||||||||||||||
Transfer agency fees | 20 | 2 | 3 | 2 | 1 | n/a | n/a | — | (a) | — | (a) | 28 |
(a) | Amount rounds to less than one thousand. |
K. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund’s policy is to comply with the provisions of the Internal Revenue Code (the “Code”), applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds’ tax positions for all open tax years and has determined that as of October 31, 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, or since inception if shorter, remains subject to examination by the Internal Revenue Service.
L. Foreign Taxes — The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. When a capital gain tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
M. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid annually, except for International Equity Income Fund, which are declared and generally 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
146 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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) | ||||||||||
Emerging Economies Fund | $ | (4 | ) | $ | (1,756 | ) | $ | 1,760 | ||||
Emerging Markets Equity Fund | — | (869 | ) | 869 | ||||||||
Europe Dynamic Fund | — | (87 | ) | 87 | ||||||||
Global Research Enhanced Index Fund | 144,326 | 2,148 | (146,474 | ) | ||||||||
Global Unconstrained Equity Fund | — | 13 | (13 | ) | ||||||||
International Advantage Fund | — | (a) | (427 | ) | 427 | |||||||
International Equity Fund | — | 7,394 | (7,394 | ) | ||||||||
International Equity Income Fund | — | 366 | (366 | ) | ||||||||
International Research Enhanced Equity Fund | — | 2,588 | (2,588 | ) | ||||||||
International Unconstrained Equity Fund | — | (a) | 34 | (34 | ) | |||||||
International Value Fund | (41,204 | ) | 950 | 40,254 |
(a) | Amount rounds to less than one thousand. |
The reclassifications for the Funds relate primarily to foreign currency gains or losses, foreign cap gain taxes, tax equalization, expired capital loss carryforwards and investments in passive foreign investment companies (“PFICs”).
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to Investment Advisory Agreements, the Adviser supervises the investments of each Fund and for such services is paid a fee. The fee is accrued daily and paid monthly based on each Fund’s respective average daily net assets.
The annual rate for each Fund is as follows:
Emerging Economies Fund | 0.85 | % | ||
Emerging Markets Equity Fund | 0.85 | |||
Europe Dynamic Fund | 0.65 | |||
Global Research Enhanced Index Fund | 0.20 | |||
Global Unconstrained Equity Fund | 0.70 | |||
International Advantage Fund | 0.60 | |||
International Equity Fund | 0.70 | |||
International Equity Income Fund | 0.70 | |||
International Research Enhanced Equity Fund | 0.20 | |||
International Unconstrained Equity Fund | 0.70 | |||
International Value 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 October 31, 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
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 147 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
under the 1940 Act. The Class R4, Class R5, Class R6, Class I and Class L 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 | |||||||||||||
Emerging Economies Fund | 0.25 | % | 0.75 | % | n/a | n/a | ||||||||||
Emerging Markets Equity Fund | 0.25 | 0.75 | 0.50 | % | 0.25 | % | ||||||||||
Europe Dynamic Fund | 0.25 | 0.75 | n/a | n/a | ||||||||||||
Global Unconstrained Equity Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
International Advantage Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
International Equity Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
International Equity Income Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
International Research Enhanced Equity Fund | 0.25 | n/a | n/a | n/a | ||||||||||||
International Unconstrained Equity Fund | 0.25 | 0.75 | 0.50 | n/a | ||||||||||||
International 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 October 31, 2018, JPMDS retained the following (amounts in thousands):
Front-End Sales Charge | CDSC | |||||||
Emerging Economies Fund | $ | 2 | $ | — | ||||
Emerging Markets Equity Fund | 108 | — | (a) | |||||
Europe Dynamic Fund | 21 | 7 | ||||||
Global Unconstrained Equity Fund | 1 | — | ||||||
International Advantage Fund | 2 | — | ||||||
International Equity Fund | 74 | — | (a) | |||||
International Equity Income Fund | 15 | — | (a) | |||||
International Research Enhanced Equity Fund | 2 | — | ||||||
International Unconstrained Equity Fund | 79 | — | (a) | |||||
International Value Fund | 60 | — |
(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 | |||||||||||||||||||||||||
Emerging Economies Fund | 0.25 | % | 0.25 | % | 0.25 | % | n/a | n/a | n/a | n/a | 0.10 | % | ||||||||||||||||||||
Emerging Markets Equity Fund | 0.25 | 0.25 | 0.25 | 0.10 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.10 | ||||||||||||||||||||
Europe Dynamic Fund | 0.25 | 0.25 | 0.25 | 0.10 | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Global Research Enhanced Index Fund | n/a | n/a | 0.25 | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
Global Unconstrained Equity Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
International Advantage Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | n/a | ||||||||||||||||||||||||
International Equity Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
International Equity Income Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
International Research Enhanced Equity Fund | 0.25 | n/a | 0.25 | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
International Unconstrained Equity Fund | 0.25 | 0.25 | 0.25 | n/a | 0.25 | n/a | n/a | 0.10 | ||||||||||||||||||||||||
International Value Fund | 0.25 | 0.25 | 0.25 | 0.10 | 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 as Interest income from affiliates on the Statements of Operations.
148 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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 | ||||||||||||||||||||||||||||
Emerging Economies Fund | 1.14 | %* | 1.64 | %* | 0.89 | %* | n/a | n/a | n/a | n/a | 0.79 | %* | 0.69 | %* | ||||||||||||||||||||||
Emerging Markets Equity Fund | 1.24 | * | 1.74 | * | 0.99 | * | 0.95 | % | 1.54 | %* | 1.29 | %* | 1.04 | %* | 0.89 | * | 0.79 | * | ||||||||||||||||||
Europe Dynamic Fund | 1.24 | * | 1.74 | * | 0.99 | * | 1.00 | n/a | n/a | n/a | n/a | 0.84 | ** | |||||||||||||||||||||||
Global Research Enhanced Index Fund | n/a | n/a | 0.34 | n/a | n/a | n/a | n/a | n/a | 0.25 | |||||||||||||||||||||||||||
Global Unconstrained Equity Fund | 1.00 | * | 1.50 | * | 0.75 | * | n/a | 1.30 | * | n/a | n/a | 0.65 | * | 0.55 | * | |||||||||||||||||||||
International Advantage Fund | 1.00 | * | 1.50 | * | 0.75 | * | n/a | 1.30 | * | n/a | n/a | n/a | 0.55 | * | ||||||||||||||||||||||
International Equity Fund | 0.95 | * | 1.45 | * | 0.70 | * | n/a | 1.25 | * | n/a | n/a | 0.60 | * | 0.50 | * | |||||||||||||||||||||
International Equity Income Fund | 0.95 | * | 1.45 | * | 0.70 | * | n/a | 1.25 | * | n/a | n/a | 0.60 | * | 0.50 | * | |||||||||||||||||||||
International Research Enhanced Equity Fund | 0.60 | n/a | 0.35 | n/a | n/a | n/a | n/a | n/a | 0.25 | |||||||||||||||||||||||||||
International Unconstrained Equity Fund | 1.00 | * | 1.50 | * | 0.75 | * | n/a | 1.30 | * | n/a | n/a | 0.65 | * | 0.55 | * | |||||||||||||||||||||
International Value Fund | 1.00 | * | 1.50 | * | 0.75 | * | 0.95 | 1.30 | * | n/a | n/a | 0.65 | * | 0.55 | * |
* | The contractual expense percentages in the table above are in place until at least October 31, 2019. |
** | The contractual expense percentage in the table above are in place until at least September 30, 2019. |
Except as noted above, the expense limitation agreements were in effect for the year ended October 31, 2018 and are in place until February 28, 2019.
For the year ended October 31, 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 | ||||||||||||||||
Emerging Economies Fund | $ | 4,867 | $ | 1,644 | $ | 120 | $ | 6,631 | $ | 11 | ||||||||||
Emerging Markets Equity Fund | 6,743 | 4,045 | 796 | 11,584 | 26 | |||||||||||||||
Europe Dynamic Fund | — | — | 191 | 191 | — | |||||||||||||||
Global Research Enhanced Index Fund | 2,477 | 1,652 | 2,442 | 6,571 | — | |||||||||||||||
Global Unconstrained Equity Fund | 18 | 4 | 4 | 26 | 191 | |||||||||||||||
International Advantage Fund | 3,406 | 2,271 | 179 | 5,856 | 30 | |||||||||||||||
International Equity Fund | 10,039 | 3,596 | 292 | 13,927 | 7 | |||||||||||||||
International Equity Income Fund | 631 | 156 | 112 | 899 | — | (a) | ||||||||||||||
International Research Enhanced Equity Fund | 2,089 | 1,388 | 1,396 | 4,873 | — | |||||||||||||||
International Unconstrained Equity Fund | 1,227 | 419 | 201 | 1,847 | 2 | |||||||||||||||
International Value Fund | 979 | 550 | 255 | 1,784 | — | (a) |
(a) | Amount rounds to less than one thousand. |
Voluntary Waivers | ||||
Investment Advisory Fees | ||||
Global Unconstrained Equity Fund | $ | 14 |
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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 149 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
The amounts of these waivers resulting from investments in these money market funds for the year ended October 31, 2018 were as follows (amounts in thousands):
Emerging Economies Fund | $ | 99 | ||
Emerging Markets Equity Fund | 257 | |||
Europe Dynamic Fund | 50 | |||
Global Research Enhanced Index Fund | 229 | |||
Global Unconstrained Equity Fund | — | (a) | ||
International Advantage Fund | 164 | |||
International Equity Fund | 176 | |||
International Equity Income Fund | 6 | |||
International Research Enhanced Equity Fund | 317 | |||
International Unconstrained Equity Fund | 28 | |||
International Value Fund | 21 |
(a) | Amount rounds to less than one thousand. |
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 October 31, 2018, the Funds did not incur any brokerage commissions with broker-dealers affiliated with the Adviser.
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 October 31, 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) | |||||||
Emerging Economies Fund | $ | 1,598,617 | $ | 1,628,667 | ||||
Emerging Markets Equity Fund | 1,615,815 | 612,616 | ||||||
Europe Dynamic Fund | 1,322,771 | 1,436,092 | ||||||
Global Research Enhanced Index Fund | 3,517,125 | 6,281,523 | ||||||
Global Unconstrained Equity Fund | 5,635 | 5,099 | ||||||
International Advantage Fund | 2,459,041 | 1,741,985 | ||||||
International Equity Fund | 2,182,386 | 1,420,762 | ||||||
International Equity Income Fund | 174,019 | 217,129 | ||||||
International Research Enhanced Equity Fund | 2,781,360 | 2,177,156 | ||||||
International Unconstrained Equity Fund | 536,459 | 310,323 | ||||||
International Value Fund | 624,334 | 810,092 |
During the year ended October 31, 2018, there were no purchases or sales of U.S. Government securities.
150 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2018 were as follows (amounts in thousands):
Aggregate Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Emerging Economies Fund | $ | 1,573,223 | $ | 139,514 | $ | 148,739 | $ | (9,225 | ) | |||||||
Emerging Markets Equity Fund | 4,089,464 | 832,235 | 303,589 | 528,646 | ||||||||||||
Europe Dynamic Fund | 789,561 | 13,423 | 55,335 | (41,912 | ) | |||||||||||
Global Research Enhanced Index Fund | 4,637,688 | 1,309,213 | 196,052 | 1,113,161 | ||||||||||||
Global Unconstrained Equity Fund | 3,805 | 250 | 193 | 57 | ||||||||||||
International Advantage Fund | 3,443,750 | 175,938 | 249,713 | (73,775 | ) | |||||||||||
International Equity Fund | 4,042,969 | 512,180 | 289,499 | 222,681 | ||||||||||||
International Equity Income Fund | 141,808 | 7,363 | 9,812 | (2,449 | ) | |||||||||||
International Research Enhanced Equity Fund | 4,984,986 | 196,565 | 514,193 | (317,628 | ) | |||||||||||
International Unconstrained Equity Fund | 504,516 | 15,320 | 42,847 | (27,527 | ) | |||||||||||
International Value Fund | 556,708 | 17,311 | 59,113 | (41,802 | ) |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals, mark to market of forward foreign currency contracts and investments in PFICs.
The tax character of distributions paid during the year ended October 31, 2018 was as follows (amounts in thousands):
Ordinary Income* | Net Long-Term Capital Gains | Total Distributions Paid | ||||||||||
Emerging Economies Fund | $ | 43,931 | $ | — | $ | 43,931 | ||||||
Emerging Markets Equity Fund | 22,140 | — | 22,140 | |||||||||
Europe Dynamic Fund | 15,655 | — | 15,655 | |||||||||
Global Research Enhanced Index Fund | 159,264 | — | 159,264 | |||||||||
Global Unconstrained Equity Fund | 145 | 32 | 177 | |||||||||
International Advantage Fund | 67,328 | — | 67,328 | |||||||||
International Equity Fund | 66,772 | — | 66,772 | |||||||||
International Equity Income Fund | 6,293 | — | 6,293 | |||||||||
International Research Enhanced Equity Fund | 75,137 | 33,139 | 108,276 | |||||||||
International Unconstrained Equity Fund | 3,143 | — | 3,143 | |||||||||
International Value Fund | 18,225 | — | 18,225 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended October 31, 2017 was as follows (amounts in thousands):
Ordinary Income* | Total Distributions Paid | |||||||
Emerging Economies Fund | $ | 27,595 | $ | 27,595 | ||||
Emerging Markets Equity Fund | 23,992 | 23,992 | ||||||
Europe Dynamic Fund | 16,973 | 16,973 | ||||||
Global Research Enhanced Index Fund | 155,976 | 155,976 | ||||||
Global Unconstrained Equity Fund | 3 | 3 | ||||||
International Advantage Fund | 70,281 | 70,281 | ||||||
International Equity Fund | 17,837 | 17,837 | ||||||
International Equity Income Fund | 5,382 | 5,382 | ||||||
International Research Enhanced Equity Fund | 34,205 | 34,205 | ||||||
International Unconstrained Equity Fund | 2,563 | 2,563 | ||||||
International Value Fund | 61,529 | 61,529 |
* | Short-term gain distributions are treated as ordinary income for income tax purposes. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 151 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
At October 31, 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) | ||||||||||
Emerging Economies Fund | $ | 44,510 | $ | (70,668 | ) | $ | (9,065 | ) | ||||
Emerging Markets Equity Fund | 43,938 | (127,296 | ) | 525,804 | ||||||||
Europe Dynamic Fund | 16,329 | (55,473 | ) | (41,987 | ) | |||||||
Global Research Enhanced Index Fund | 137,611 | 389,356 | 1,112,937 | |||||||||
Global Unconstrained Equity Fund | 61 | (36 | ) | 57 | ||||||||
International Advantage Fund | 83,610 | (38,065 | ) | (74,080 | ) | |||||||
International Equity Fund | 99,862 | 44,426 | 222,476 | |||||||||
International Equity Income Fund | 246 | 3,801 | (2,453 | ) | ||||||||
International Research Enhanced Equity Fund | 146,053 | (11,458 | ) | (318,084 | ) | |||||||
International Unconstrained Equity Fund | 9,816 | (27,318 | ) | (27,542 | ) | |||||||
International Value Fund | 16,730 | — | (41,861 | ) |
For the Funds the cumulative timing differences primarily consist of wash sale loss deferrals, capital loss carryovers, mark to market of forward foreign currency contracts, trustee deferred compensation and investments in PFICs.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized by the Funds after October 31, 2011, are carried forward indefinitely, and retain their character as short-term and/or long-term losses. Prior to the Act, net capital losses incurred by the Funds were carried forward for eight years and treated as short-term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
At October 31, 2018, the following Fund had pre-enactment net capital loss carryforwards, expiring during the years indicated, which are available to offset future realized gains, as follows (amounts in thousands):
2019 | Total | |||||||
Emerging Economies Fund | $ | 16,730 | $ | 16,730 |
At October 31, 2018, the following Funds had post-enactment net capital loss carryforwards as follows (amounts in thousands):
Capital Loss Carryforward Character | ||||||||
Short-Term | Long-Term | |||||||
Emerging Economies Fund | $ | 53,938 | $ | — | ||||
Emerging Markets Equity Fund | — | 127,296 | ||||||
Europe Dynamic Fund | 55,473 | — | ||||||
Global Unconstrained Equity Fund | 36 | — | ||||||
International Advantage Fund | 38,065 | — | ||||||
International Research Enhanced Equity Fund | 11,458 | — | ||||||
International Unconstrained Equity Fund | 27,318 | — |
During the year ended October 31, 2018, the following Funds utilized capital loss carryforwards as follows (amounts in thousands):
Capital Loss Utilized | ||||||||
Short-Term | Long-Term | |||||||
Emerging Economies Fund | $ | 9,653 | $ | — | ||||
Europe Dynamic Fund | — | 5,930 | ||||||
Global Research Enhanced Index Fund | 52,424 | 45,268 | ||||||
International Equity Fund | 7,844 | 43,809 | ||||||
International Equity Income Fund | 9,533 | — | ||||||
International Unconstrained Equity Fund | — | 1,307 | ||||||
International Value Fund | 24,514 | — |
During the year ended October 31, 2018, the following Fund had expired capital loss carryforwards as follows (amounts in thousands):
2018 | ||||
International Value Fund | $ | 41,204 |
152 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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 4, 2019.
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. Average borrowings from the Facility during the year ended October 31, 2018, were as follows (amounts in thousands, except number of days outstanding):
Average Borrowings | Average Interest Rate Paid | Number of Days Outstanding | Interest Paid | |||||||||||||
Emerging Economies Fund | $ | 69,674 | 2.63 | % | 6 | $ | 30 | |||||||||
Global Research Enhanced Index Fund | 27,373 | 2.67 | 49 | 101 | ||||||||||||
International Equity Fund | 22,564 | 2.04 | 7 | 8 | ||||||||||||
International Equity Income Fund | 4,831 | 2.61 | 13 | 5 | ||||||||||||
International Research Enhanced Equity Fund | 55,539 | 2.65 | 5 | 20 | ||||||||||||
International Unconstrained Equity Fund | 11,564 | 2.63 | 7 | 6 | ||||||||||||
International Value Fund | 7,144 | 2.75 | 37 | 19 |
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 October 31, 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 brought against each Fund. However, based on experience, the Funds expect the risk of loss to be remote.
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic and market conditions and could result in losses that significantly exceed the Funds’ original investment. Many derivatives create leverage thereby causing the Funds to be more volatile than they would have been if they had not used derivatives. Derivatives also expose the Funds to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations), including credit risk of the derivative counterparty.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 153 |
Table of Contents
NOTES TO FINANCIAL STATEMENTS
AS OF OCTOBER 31, 2018 (continued)
As of October 31, 2018, the J.P. Morgan Investor Funds and the JPMorgan SmartRetirement Funds, which are affiliated funds of funds, owned in the aggregate, shares representing more than 10% of the net assets of certain Funds as follows:
J.P. Morgan Investor Funds | JPMorgan SmartRetirement Funds | |||||||
Emerging Economies Fund | 13.0 | % | 79.2 | % | ||||
Emerging Markets Equity Fund | — | 34.5 | ||||||
Europe Dynamic Fund | 39.5 | — | ||||||
International Advantage Fund | — | 91.9 | ||||||
International Equity Fund | — | 73.5 | ||||||
International Research Enhanced Equity Fund | 14.8 | 65.9 | ||||||
International Unconstrained Equity Fund | 24.3 | — |
As of October 31, 2018, the following Funds had individual shareholder accounts and/or omnibus accounts each owning more than 10% of the respective Fund’s outstanding shares as follows:
Number of Individual Affiliated Shareholder Accounts and/or Affiliated Omnibus Accounts | % of the Fund | Number of Nonaffiliated | % of the Fund | |||||||||||||
Emerging Markets Equity Fund | — | — | % | 3 | 10.5 | % | ||||||||||
Europe Dynamic Fund | 4 | 20.8 | — | — | ||||||||||||
Global Research Enhanced Index Fund | 2 | 89.3 | — | — | ||||||||||||
Global Unconstrained Equity Fund | 3 | 23.8 | 3 | 12.6 | ||||||||||||
International Equity Income Fund | 4 | 12.1 | 9 | 58.5 | ||||||||||||
International Unconstrained Equity Fund | — | — | 2 | 17.4 | ||||||||||||
International Value Fund | — | — | 7 | 63.8 |
Significant shareholder transactions by these shareholders may impact the Funds’ performance.
The Funds may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of countries or regions, which may vary throughout the period depending on the Fund. Such concentrations may subject the Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
As of October 31, 2018, the following Funds had non-U.S. country allocations representing greater than 10% of total investments as follows:
Brazil | China | France | Germany | India | ||||||||||||||||
Emerging Economies Fund | 11.0 | % | 30.6 | % | — | % | — | % | — | % | ||||||||||
Emerging Markets Equity Fund | 10.6 | 26.5 | — | — | 16.6 | |||||||||||||||
Europe Dynamic Fund | — | — | 17.2 | — | — | |||||||||||||||
International Equity Fund | — | — | 14.5 | — | — | |||||||||||||||
International Equity Income Fund | — | — | 14.1 | — | — | |||||||||||||||
International Research Enhanced Equity Fund | — | — | 12.7 | — | — | |||||||||||||||
International Unconstrained Equity Fund | — | — | — | 11.5 | — | |||||||||||||||
International Value Fund | — | — | 10.2 | — | — | |||||||||||||||
Japan | South Korea | Switzerland | Taiwan | United Kingdom | ||||||||||||||||
Emerging Economies Fund | — | % | 13.9 | % | — | % | 14.1 | % | — | % | ||||||||||
Europe Dynamic Fund | — | — | 17.0 | — | 15.1 | |||||||||||||||
International Advantage Fund | 24.1 | — | — | — | 11.4 | |||||||||||||||
International Equity Fund | 16.8 | — | 13.7 | — | 18.6 | |||||||||||||||
International Equity Income Fund | 17.6 | — | 12.5 | — | 15.8 | |||||||||||||||
International Research Enhanced Equity Fund | 23.8 | — | — | — | 13.5 | |||||||||||||||
International Unconstrained Equity Fund | — | — | — | — | 21.4 | |||||||||||||||
International Value Fund | 26.3 | — | — | — | 13.5 |
As of October 31, 2018, a significant portion of each Fund’s investments consisted of securities that were denominated in foreign currencies. Changes in currency exchange rates will affect the value of, and investment income from, such securities.
154 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
8. New Accounting Pronouncements
In August 2018, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-13 (“ASU 2018-13”), Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which adds, removes, and modifies certain aspects of the fair value disclosure. ASU 2018-13 amendments are the result of a broader disclosure project, FASB Concepts Statement Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements, to improve the effectiveness of the fair value disclosure requirements. ASU 2018-13 is effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019; early adoption is permitted. We have evaluated the implications of these changes and the amendments are included in the financial statements, which had no effect to the Funds’ net assets or results of operation.
In August 2018, the SEC adopted their Disclosure Update and Simplification Rule (the “Rule”). The Rule is part of the SEC’s overall project to improve disclosure effectiveness by amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded in light of other SEC disclosure requirements, U.S. GAAP, or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. We have evaluated the implications of these changes and the amendments are included in the financial statements, which had no effect on the Funds’ net assets or results of operation.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 155 |
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Boards of Trustees of JPMorgan Trust I and JPMorgan Trust II and Shareholders of JPMorgan Emerging Economies Fund, JPMorgan Emerging Markets Equity Fund, JPMorgan Europe Dynamic Fund, JPMorgan Global Research Enhanced Index Fund, JPMorgan Global Unconstrained Equity Fund, JPMorgan International Advantage Fund, JPMorgan International Equity Fund, JPMorgan International Equity Income Fund, JPMorgan International Research Enhanced Equity Fund, JPMorgan International Unconstrained Equity Fund and JPMorgan International 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 Emerging Economies Fund, JPMorgan Emerging Markets Equity Fund, JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund), JPMorgan Global Research Enhanced Index Fund, JPMorgan Global Unconstrained Equity Fund, JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund), JPMorgan International Equity Fund, JPMorgan International Equity Income Fund, JPMorgan International Unconstrained Equity Fund and JPMorgan International Value Fund (ten of the funds constituting JPMorgan Trust I) and JPMorgan International Research Enhanced Equity Fund (one of the funds constituting JPMorgan Trust II) (hereafter collectively referred to as the “Funds”) as of October 31, 2018, the related statements of operations for the year ended October 31, 2018, the statements of changes in net assets for each of the two years in the period ended October 31, 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 October 31, 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 October 31, 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 October 31, 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
December 21, 2018
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
156 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
(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 and Chief Executive Officer, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | 136 | 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, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | 136 | 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). | |||
Kathleen M. Gallagher* (1958); Trustee of the Trusts since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | 136 | Non-Executive Director, Legal & General Investment Management (Holdings) and Legal & General Investment Management America (financial services and insurance) (2017-present); Advisory Board Member, OCIO Board of State Street Global Advisors (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). | |||
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). | 136 | 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 (serving in various roles 1984-2012). | 136 | 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). | 136 | None |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 157 |
Table of Contents
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). | 136 | Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors OCIO Board (2017-present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016-2017); Advisory Board Member, Blue Star Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). | |||
Peter C. Marshall (1942); Trustee of Trusts since 2005; Trustee of heritage One Group Mutual Funds since 1985. | Self-employed business consultant (2002-present). | 136 | 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). | 136 | 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). | 136 | 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). | 136 | Director, Sun Life Financial (SLF) (financial services and insurance) (2007-2013). | |||
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). | 136 | Trustee, Trout Unlimited (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Vice Chair, Dartmouth-Hitchcock Medical Center (2011-present); Trustee, American University in Cairo (1999-2014). | |||
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). | 136 | President and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
158 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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) | ||||||
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) (serving in various roles 1968-1998). | 136 | 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 Boards of Trustees serve currently includes eleven registered investment companies (136 funds). |
* | Ms. Gallagher became a Trustee effective November 1, 2018. |
** | 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 Boards 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 Boards have 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. |
**** | 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.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 159 |
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. |
160 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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, May 1, 2018, and continued to hold your shares at the end of the reporting period, October 31, 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
JPMorgan Emerging Economies Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 814.00 | $ | 5.21 | 1.14 | % | ||||||||
Hypothetical* | 1,000.00 | 1,019.46 | 5.80 | 1.14 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 812.10 | 7.49 | 1.64 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.94 | 8.34 | 1.64 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 815.10 | 4.07 | 0.89 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 815.50 | 3.62 | 0.79 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.22 | 4.02 | 0.79 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 816.10 | 3.16 | 0.69 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.73 | 3.52 | 0.69 | ||||||||||||
JPMorgan Emerging Markets Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 841.50 | 5.76 | 1.24 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.95 | 6.31 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 839.60 | 8.07 | 1.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.43 | 8.84 | 1.74 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 842.80 | 4.60 | 0.99 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.21 | 5.04 | 0.99 |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 161 |
Table of Contents
SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
JPMorgan Emerging Markets Equity Fund (continued) | ||||||||||||||||
Class L | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 842.90 | $ | 4.13 | 0.89 | % | ||||||||
Hypothetical* | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 840.60 | 7.14 | 1.54 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.44 | 7.83 | 1.54 | ||||||||||||
Class R3 | ||||||||||||||||
Actual* | 1,000.00 | 841.50 | 5.99 | 1.29 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.70 | 6.56 | 1.29 | ||||||||||||
Class R4 | ||||||||||||||||
Actual* | 1,000.00 | 842.70 | 4.83 | 1.04 | ||||||||||||
Hypothetical* | 1,000.00 | 1,019.96 | 5.30 | 1.04 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 843.00 | 4.13 | 0.89 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 843.30 | 3.67 | 0.79 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.22 | 4.02 | 0.79 | ||||||||||||
JPMorgan Europe Dynamic Fund (formerly known as JPMorgan Intrepid European Fund) | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 871.60 | 5.85 | 1.24 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.95 | 6.31 | 1.24 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 869.10 | 8.20 | 1.74 | ||||||||||||
Hypothetical* | 1,000.00 | 1,016.43 | 8.84 | 1.74 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 872.50 | 4.67 | 0.99 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.21 | 5.04 | 0.99 | ||||||||||||
Class L | ||||||||||||||||
Actual* | 1,000.00 | 873.30 | 4.16 | 0.88 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.77 | 4.48 | 0.88 | ||||||||||||
Class R6 | ||||||||||||||||
Actual** | 1,000.00 | 900.50 | 0.64 | 0.82 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.07 | 4.18 | 0.82 | ||||||||||||
JPMorgan Global Research Enhanced Index Fund | ||||||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 974.70 | 1.69 | 0.34 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.49 | 1.73 | 0.34 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 974.90 | 1.24 | 0.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.95 | 1.28 | 0.25 | ||||||||||||
JPMorgan Global Unconstrained Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 954.80 | 3.70 | 0.75 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.42 | 3.82 | 0.75 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 952.40 | 6.15 | 1.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.90 | 6.36 | 1.25 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 956.30 | 1.97 | 0.40 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.19 | 2.04 | 0.40 |
162 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Beginning Account Value May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
JPMorgan Global Unconstrained Equity Fund (continued) | ||||||||||||||||
Class R2 | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 953.40 | $ | 4.97 | 1.01 | % | ||||||||
Hypothetical* | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 956.80 | 1.48 | 0.30 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.69 | 1.53 | 0.30 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 957.40 | 1.23 | 0.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.95 | 1.28 | 0.25 | ||||||||||||
JPMorgan International Advantage Fund (formerly known as JPMorgan Intrepid International Fund) | ||||||||||||||||
Class A | ||||||||||||||||
Actual | 1,000.00 | 880.70 | 4.74 | 1.00 | ||||||||||||
Hypothetical | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||
Class C | ||||||||||||||||
Actual | 1,000.00 | 878.70 | 7.10 | 1.50 | ||||||||||||
Hypothetical | 1,000.00 | 1,017.64 | 7.63 | 1.50 | ||||||||||||
Class I | ||||||||||||||||
Actual | 1,000.00 | 881.80 | 3.56 | 0.75 | ||||||||||||
Hypothetical | 1,000.00 | 1,021.42 | 3.82 | 0.75 | ||||||||||||
Class R2 | ||||||||||||||||
Actual | 1,000.00 | 879.60 | 6.16 | 1.30 | ||||||||||||
Hypothetical | 1,000.00 | 1,018.65 | 6.61 | 1.30 | ||||||||||||
Class R6 | ||||||||||||||||
Actual | 1,000.00 | 882.60 | 2.61 | 0.55 | ||||||||||||
Hypothetical | 1,000.00 | 1,022.43 | 2.80 | 0.55 | ||||||||||||
JPMorgan International Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 865.90 | 4.47 | 0.95 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.42 | 4.84 | 0.95 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 863.50 | 6.81 | 1.45 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.90 | 7.38 | 1.45 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 866.80 | 3.29 | 0.70 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.68 | 3.57 | 0.70 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 865.00 | 5.88 | 1.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.90 | 6.36 | 1.25 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 867.10 | 2.78 | 0.59 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.23 | 3.01 | 0.59 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 867.60 | 2.31 | 0.49 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.74 | 2.50 | 0.49 | ||||||||||||
JPMorgan International Equity Income Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 905.80 | 4.56 | 0.95 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.42 | 4.84 | 0.95 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 903.20 | 6.96 | 1.45 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.90 | 7.38 | 1.45 |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 163 |
Table of Contents
SCHEDULE OF SHAREHOLDER EXPENSES
(Unaudited) (continued)
Hypothetical $1,000 Investment
Beginning Account Value May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
JPMorgan International Equity Income Fund (continued) | ||||||||||||||||
Class I | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 906.40 | $ | 3.36 | 0.70 | % | ||||||||
Hypothetical* | 1,000.00 | 1,021.68 | 3.57 | 0.70 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 903.90 | 6.00 | 1.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.90 | 6.36 | 1.25 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 907.40 | 2.88 | 0.60 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.18 | 3.06 | 0.60 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 907.20 | 2.40 | 0.50 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.68 | 2.55 | 0.50 | ||||||||||||
JPMorgan International Research Enhanced Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 888.40 | 2.86 | 0.60 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.18 | 3.06 | 0.60 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 889.60 | 1.67 | 0.35 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.44 | 1.79 | 0.35 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 890.30 | 1.19 | 0.25 | ||||||||||||
Hypothetical* | 1,000.00 | 1,023.95 | 1.28 | 0.25 | ||||||||||||
JPMorgan International Unconstrained Equity Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 863.20 | 4.70 | 1.00 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 861.50 | 7.04 | 1.50 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.64 | 7.63 | 1.50 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 864.80 | 3.53 | 0.75 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.42 | 3.82 | 0.75 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 862.20 | 6.10 | 1.30 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.65 | 6.61 | 1.30 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 865.20 | 3.06 | 0.65 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.93 | 3.31 | 0.65 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 865.30 | 2.59 | 0.55 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.43 | 2.80 | 0.55 | ||||||||||||
JPMorgan International Value Fund | ||||||||||||||||
Class A | ||||||||||||||||
Actual* | 1,000.00 | 865.10 | 4.70 | 1.00 | ||||||||||||
Hypothetical* | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||
Class C | ||||||||||||||||
Actual* | 1,000.00 | 862.90 | 7.04 | 1.50 | ||||||||||||
Hypothetical* | 1,000.00 | 1,017.64 | 7.63 | 1.50 | ||||||||||||
Class I | ||||||||||||||||
Actual* | 1,000.00 | 866.80 | 3.53 | 0.75 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.42 | 3.82 | 0.75 |
164 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Beginning Account Value May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During the Period | Annualized Expense Ratio | |||||||||||||
JPMorgan International Value Fund (continued) | ||||||||||||||||
Class L | ||||||||||||||||
Actual* | $ | 1,000.00 | $ | 866.90 | $ | 3.06 | 0.65 | % | ||||||||
Hypothetical* | 1,000.00 | 1,021.93 | 3.31 | 0.65 | ||||||||||||
Class R2 | ||||||||||||||||
Actual* | 1,000.00 | 864.00 | 6.11 | 1.30 | ||||||||||||
Hypothetical* | 1,000.00 | 1,018.65 | 6.61 | 1.30 | ||||||||||||
Class R5 | ||||||||||||||||
Actual* | 1,000.00 | 867.00 | 3.06 | 0.65 | ||||||||||||
Hypothetical* | 1,000.00 | 1,021.93 | 3.31 | 0.65 | ||||||||||||
Class R6 | ||||||||||||||||
Actual* | 1,000.00 | 867.20 | 2.59 | 0.55 | ||||||||||||
Hypothetical* | 1,000.00 | 1,022.43 | 2.80 | 0.55 |
* | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
** | Expenses are equal to each Class’ respective annualized expense ratio, multiplied by the average account value over the period, multiplied by 31/365 (to reflect the actual period). Commencement of operations was October 1, 2018. |
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 165 |
Table of Contents
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited)
The Board of Trustees has established various standing committees composed of Trustees with diverse backgrounds, to which the Board of Trustees has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board of Trustees and its investment committees (money market and alternative products, equity, and fixed income) meet regularly throughout the year and consider factors that are relevant to their annual consideration of investment advisory agreements at each meeting. They also meet for the specific purpose of considering investment advisory agreement annual renewals. The Board of Trustees held meetings in person in June and August 2018, at which the Trustees considered the continuation of the investment advisory agreements for each Fund whose annual report is contained herein (each an “Advisory Agreement” and collectively, the “Advisory Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered the investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not “interested persons” (as defined in the 1940 Act) of any party to the Advisory Agreements or any of their affiliates, approved the continuation of each Advisory Agreement on August 15, 2018.
As part of their review of the Advisory Agreements, the Trustees considered and reviewed performance and other information about the Funds received from the Adviser. This information includes the Funds’ performance as compared to the performance of their peers and benchmarks and analyses by the Adviser of the Funds’ performance. In addition, the Trustees have engaged an independent management consulting firm (“independent consultant”) to report on the performance of certain J.P. Morgan Funds at each of the Trustees’ regular meetings. In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance and expense information compiled by Broadridge, using data from Lipper Inc., independent providers of investment company data (together, “Broadridge/Lipper”). The Trustees’ independent consultant also provided additional analyses of the performance of the Funds as compared to the Funds’ objectives and peers. Before voting on the Advisory Agreements, the Trustees reviewed the Advisory Agreements with representatives of the Adviser, counsel to the Trusts and independent legal counsel and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the Advisory Agreements. The Trustees also discussed the Advisory Agreements in executive sessions with independent legal counsel at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Advisory Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Funds throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighing the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from each Fund under the applicable Advisory Agreement was fair and reasonable under the circumstances and determined that the continuance of each Advisory Agreement was in the best interests of each Fund and its shareholders.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of the services provided to each Fund under the applicable Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of, and the amount of attention given to each Fund by, investment personnel of the Adviser. In addition, the Trustees reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund and the infrastructure supporting the team, including personnel changes. The Trustees also considered information provided by the Adviser and JPMorgan Distribution Services, Inc. (“JPMDS”) about the structure and distribution strategy of each Fund. The Trustees reviewed information relating to the Adviser’s risk governance model and reports showing the Adviser’s compliance structure and ongoing compliance processes. The Trustees also considered the quality of the administrative services provided by the Adviser in its role as administrator.
The Trustees also considered their knowledge of the nature and quality of the services provided by the Adviser and its affiliates to the Funds gained from their experience as Trustees of the J.P. Morgan Funds. In addition, they considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the Adviser’s integrity and the Adviser’s responsiveness to questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.
166 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the investment advisory services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates in providing services to each Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, the Trustees concluded that the profitability to the Adviser under each Advisory Agreement was not unreasonable in light of the services and benefits provided to each Fund.
The Trustees also considered that JPMDS, an affiliate of the Adviser, and the Adviser earn fees from the Funds for providing shareholder and administrative services, respectively. These fees were shown separately in the profitability analysis presented to the Trustees. The Trustees also considered the payments of Rule 12b-1 fees to JPMDS, which also acts as the Funds’ distributor and that these fees are in turn generally paid to financial intermediaries that sell the Funds, including financial intermediaries that are affiliates of the Adviser. The Trustees also considered the fees paid to JPMorgan Chase Bank, N.A. (“JPMCB”) for custody and fund accounting, and other related services.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fallout” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser.
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from economies of scale. The Trustees considered that there may not be a direct relationship between economies of scale realized by the Funds and those realized by the Adviser as
assets increase. The Trustees considered the extent to which the Funds were priced to scale and whether it would be appropriate to add advisory fee breakpoints, but noted that each Fund has implemented fee waivers and contractual expense limitations (“Fee Caps”) which allow each Fund’s shareholders to share potential economies of scale from a Fund’s inception and that the fees remain competitive with peer funds. The Trustees also considered that the Adviser has added or enhanced services to the Funds over time, noting the Adviser’s substantial investments in its business in support of the Funds, including investments in trading systems and technology (including cybersecurity improvements), attraction and retention of key talent, additions to analyst and portfolio management teams, and regulatory support enhancements. The Trustees concluded that the current fee structure was reasonable in light of the Fee Caps that the Adviser has in place that serve to limit the overall net expense ratios of each Fund at competitive levels. The Trustees concluded that the Funds’ shareholders received the benefits of potential economies of scale through the Fee Caps and the Adviser’s reinvestment in its operations to serve the Funds and their shareholders.
Independent Written Evaluation of the Funds’ Senior/Chief Compliance Officer
The Trustees noted that, upon their direction, the Senior Officer for the International Equity Fund and International Research Enhanced Equity Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees. In determining whether to continue the Advisory Agreements, the Trustees considered the Senior Officer’s report.
The Trustees noted that, upon their direction, the Chief Compliance Officer for the Europe Dynamic Fund, Emerging Economies Fund, Emerging Markets Equity Fund, Global Research Enhanced Index Fund, Global Unconstrained Equity Fund, International Advantage Fund, International Equity Income Fund, International Unconstrained Equity Fund and International Value Fund had prepared an independent written evaluation in order to assist the Trustees in determining the reasonableness of the proposed management fees. The Trustees considered the written evaluation in determining whether to continue the Advisory Agreements.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of investment advisory services and fee rates offered to other clients of the Adviser, including institutional separate accounts and/or funds sub-advised by the Adviser, and for investment management styles substantially similar to that of each Fund. The Trustees considered the complexity of investment management for registered mutual funds relative to the Adviser’s other clients and noted differences in the regulatory, legal and other risks and responsibilities of providing
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 167 |
Table of Contents
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited) (continued)
services to the different clients. The Trustees considered that serving as an adviser to a registered mutual fund involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the mutual fund, pays the sub-advisory fee and that many responsibilities related to the advisory function are retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees received and considered absolute and/or relative performance information for the Funds in a report prepared by Broadridge/Lipper. The Trustees considered the total return performance information, which included the ranking of the Funds within a performance universe made up of funds with the same Broadridge/Lipper investment classification and objective (the “Universe”), as well as a subset of funds within the Universe (the “Peer Group”), by total return for applicable one-, three-, and five-year periods. The Trustees reviewed a description of Broadridge/Lipper’s methodology for selecting mutual funds in each Fund’s Peer Group and Universe. The Broadridge/Lipper materials provided to the Trustees highlighted information with respect to certain representative classes to assist the Trustees in their review. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark and considered the performance information provided for the Funds at regular Board meetings by the Adviser and the Trustees’ independent consultant and also considered the special analysis prepared by the Trustees’ independent consultant. The Trustees also engaged with the Adviser to consider what steps might be taken to improve performance, as applicable. The Broadridge/Lipper performance data noted by the Trustees as part of their review and the determinations made by the Trustees with respect to each Fund’s performance for certain representative classes are summarized below:
The Trustees noted that the Emerging Economies Fund’s performance for Class A shares was in the third, third and fifth quintiles based upon the Peer Group, and in the third, third and fourth quintiles based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for Class I shares was in the fourth, fourth and fifth quintiles based upon the Peer Group, and in the third, third and fourth quintiles based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that the Emerging Markets Equity Fund’s performance for Class A shares was in the first, second and first quintiles based upon the Peer Group, and in the first, second and second quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for Class I shares was in the second, first and second quintiles based upon the Peer Group, and in the first, first and second quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that the Europe Dynamic Fund’s performance for Class A shares was in the third, third and first quintiles based upon the Peer Group, and in the fourth, fourth and second quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that performance for Class I shares was in the third, fourth and second quintiles based upon the Universe for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that based upon the Universe, the Global Research Enhanced Index Fund’s performance for Class I shares was in the fourth and second quintiles for the one- and three-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analyses and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the performance was satisfactory.
The Trustees noted that the Global Unconstrained Equity Fund’s performance for Class A shares was in the fifth and third quintiles based upon the Peer Group for the one- and three- year periods ended December 31, 2017, and in the fifth, fourth and third quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for Class I shares was in fifth, fourth and third quintiles based upon the Universe for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analyses and evaluation prepared by the independent consultant. Based upon these discussions and
168 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
various other factors, the Trustees concluded that the Fund’s performance was satisfactory under the circumstances. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with the members of the equity committee at each of their regularly scheduled meetings over the course of the next year.
The Trustees noted that the International Advantage Fund’s performance for Class A shares was in the fourth, second and fourth quintiles based upon the Peer Group, and in the fifth, third and third quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for Class I shares was in the fifth and third quintiles for the one- and three-year periods ended December 31, 2017, based upon the Peer Group, and in the fifth, third and third quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the performance was satisfactory under the circumstances. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with the members of the equity committee at each of their regularly scheduled meetings over the course of the next year.
The Trustees noted that the International Equity Fund’s performance for Class A shares was in the first, first and third quintiles based upon both the Peer Group and Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for the Class I shares was in the first, first and third quintiles based upon the Universe for the one-, three- and five-year periods ended December 31, 2017. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that the International Equity Income Fund’s performance for Class A shares was in the third, first and first quintiles based upon the Peer Group for the one-, three- and five-year periods ended December 31, 2017, respectively, and in the fourth, third and first quintiles based upon the Universe, for the one-, three-, and five-year periods ended December 31, 2017, respectively. The Trustees noted that the performance for Class I shares was in the second and first quintiles based upon the Peer Group for the one- and three-year periods ended December 31, 2017, respectively, and in the fourth, third and first quintiles based upon the Universe for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund
with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that the International Research Enhanced Equity Fund’s performance for Class A shares was in the fourth, first and first quintiles based upon the Peer Group, and in the fourth, second and second quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees noted that performance for Class I shares was in the fourth, first and first quintiles based upon the Universe, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that, based upon the Universe, the International Unconstrained Equity Fund’s performance for Class A shares was in the third, second and third quintiles, and in the third, first and second quintiles for Class I shares, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees noted that, based upon the Universe, the International Value Fund’s performance for Class A shares was in the fourth, fourth and fifth quintiles, and in the fourth, third and fifth quintiles for Class I shares, for the one-, three- and five-year periods ended December 31, 2017, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions, and various other factors, the Trustees concluded that the Fund’s performance was satisfactory under the circumstances. They requested, however, that the Fund’s Adviser provide additional Fund performance information to be reviewed with members of the equity committee at each of their regular meetings over the course of the next year.
Advisory Fees and Expense Ratios
The Trustees considered the contractual advisory fee rate and administration fee rate paid by each Fund to the Adviser and compared the combined rate to the information prepared by Broadridge/Lipper concerning management fee rates paid by other funds in the same Broadridge/Lipper category as each Fund. The Trustees recognized that Broadridge/Lipper reported
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 169 |
Table of Contents
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(Unaudited) (continued)
each Fund’s management fee rate as the combined contractual advisory fee and administration fee rates. The Trustees also reviewed information about other expenses and the expense ratios for each Fund. The Trustees considered the Fee Caps currently in place for each Fund, the net advisory fee rate after taking into account any waivers and/or reimbursements, and where deemed appropriate by the Trustees, additional waivers and/or reimbursements. The Trustees recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The Trustees’ determinations as a result of the review of each Fund’s advisory fees and expense ratios for certain representative classes are summarized below:
The Trustees noted that the Emerging Economies Fund’s net advisory fee and actual total expenses for both Class A and Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the Emerging Markets Equity Fund’s net advisory fee for Class A shares was in the first and second quintiles based upon the Peer Group and Universe, respectively, and that the actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee for Class I shares was in the first and second quintiles based upon the Peer Group and Universe, respectively, and that the actual total expenses for Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the Europe Dynamic Fund’s net advisory fee for Class A shares was in the first and second quintiles based upon the Peer Group and Universe, respectively, and that the actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that net advisory fee and actual total expenses for Class I shares were in the first quintile, based upon the Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the Global Research Enhanced Index Fund’s net advisory fee and actual total expenses for Class I shares were in the first quintile based upon the Universe. After considering the factors identified above, in light of the information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the Global Unconstrained Equity Fund’s net advisory fee and actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that the net advisory and actual total expenses for Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of the information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the International Advantage Fund’s net advisory fee and actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee for Class I shares was in the first and second quintiles based upon the Peer Group and Universe, respectively, and that the actual total expenses for the Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fee was satisfactory in light of the services provided to the Fund.
The Trustees noted that the International Equity Fund’s net advisory fee and actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee and actual total expenses for Class I shares were in the first quintile based upon the Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the International Equity Income Fund’s net advisory fee for Class A shares was in the first and second quintiles based upon the Peer Group and Universe, respectively, and that the actual total expenses for Class A shares were in the first quintile based upon both the Peer Group and Universe. The Trustees noted that the net advisory fee and actual total expenses for Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the International Research Enhanced Equity Fund’s net advisory fee and actual total expenses for both Class A and Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
170 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
The Trustees noted that the International Unconstrained Equity Fund’s net advisory fee and total actual expenses for Class A shares were in the first quintile based upon the Universe. The Trustees noted that the net advisory fee and actual total expenses for Class I shares were in the first quintile based upon both the Peer Group and Universe. After considering the factors identified above, and noting a reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
The Trustees noted that the International Value Fund’s net advisory fee and total actual expenses for both Class A and Class I shares were in the first quintile based upon the Peer Group and Universe. After considering the factors identified above, including the reduction in Fee Caps effective November 1, 2017, in light of this information, the Trustees concluded that the advisory fees were satisfactory in light of the services provided to the Fund.
OCTOBER 31, 2018 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | 171 |
Table of Contents
(Unaudited)
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 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 October 31, 2018:
Dividends Received Deduction | ||||
JPMorgan Emerging Economies Fund | 0.41 | % | ||
JPMorgan Emerging Markets Equity Fund | 1.62 | |||
JPMorgan Global Research Enhanced Index Fund | 50.64 | |||
JPMorgan Global Unconstrained Equity Fund | 16.75 |
Long Term Capital Gain
Each Fund listed below distributed the following amount, or maximum allowable amount, of long-term capital gain dividends for the fiscal year ended October 31, 2018 (amounts in
thousands):
Long-Term Capital Gain Distribution | ||||
JPMorgan Global Research Enhanced Index Fund | $ | 144,326 | ||
JPMorgan Global Unconstrained Equity Fund | 31 | |||
JPMorgan International Research Enhanced Equity Fund | 33,138 |
Qualified Dividend Income (QDI)
Each Fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions treated as qualified dividends for the fiscal year ended October 31, 2018 (amounts in thousands):
Qualified Dividend Income | ||||
JPMorgan Emerging Economies Fund | $ | 43,070 | ||
JPMorgan Emerging Markets Equity Fund | 31,253 | |||
JPMorgan Europe Dynamic Fund | 19,407 | |||
JPMorgan Global Research Enhanced Index Fund | 159,264 | |||
JPMorgan Global Unconstrained Equity Fund | 73 | |||
JPMorgan International Advantage Fund | 78,775 | |||
JPMorgan International Equity Fund | 76,875 | |||
JPMorgan International Equity Income Fund | 7,073 | |||
JPMorgan International Research Enhanced Equity Fund | 89,968 | |||
JPMorgan International Unconstrained Equity Fund | 4,123 | |||
JPMorgan International Value Fund | 20,666 |
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2018, the following Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses are
as follows or amounts as finally determined (amounts in thousands):
Gross Income | Foreign Tax Pass Through | |||||||
JPMorgan Emerging Economies Fund | $ | 75,367 | $ | 6,723 | ||||
JPMorgan Emerging Markets Equity Fund | 96,045 | 9,113 | ||||||
JPMorgan Europe Dynamic Fund | 29,013 | 3,753 | ||||||
JPMorgan International Advantage Fund | 121,148 | 11,447 | ||||||
JPMorgan International Equity Fund | 138,987 | 10,103 | ||||||
JPMorgan International Equity Income Fund | 8,551 | 780 | ||||||
JPMorgan International Research Enhanced Equity Fund | 183,138 | 14,641 | ||||||
JPMorgan International Unconstrained Equity Fund | 15,146 | 980 | ||||||
JPMorgan International Value Fund | 28,175 | 2,441 |
172 | J.P. MORGAN INTERNATIONAL EQUITY FUNDS | OCTOBER 31, 2018 |
Table of Contents
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 |
Table of Contents
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. |
Table of Contents
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. 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.
Table of Contents
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. October 2018. | AN-INTEQ-1018 |
Table of Contents
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.
Table of Contents
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 – $46,704
2017 – $46,543
(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 – $12,840
2017 – $12,740
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 – $12,051
2017 – $11,915
The tax fees consist of fees billed in connection with preparing the federal regulated investment company income tax returns for the Registrant for the tax years ended October 31, 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
Table of Contents
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:
2018 – $32 million
2017 – $28.3 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.
Table of Contents
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.
Table of Contents
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.
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
JPMorgan Trust II | ||
By: | /s/ Brian S. Shlissel | |
Brian S. Shlissel | ||
President and Principal Executive Officer | ||
December 28, 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 | ||
December 28, 2018 | ||
By: | /s/ Timothy J. Clemens | |
Timothy J. Clemens | ||
Treasurer and Principal Financial Officer | ||
December 28, 2018 |