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MARCH 1, 2001 | PROSPECTUS
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J.P. MORGAN FIXED INCOME FUNDS

Short Term Bond Fund

Bond Fund

Global Strategic Income Fund

Emerging Markets Debt Fund

Tax Exempt Bond Fund

New York Tax Exempt Bond Fund

----------------------------------------
Seeking high total return or current
income by investing primarily in fixed
income securities.

This prospectus contains essential information for anyone investing in these
funds. Please read it carefully and keep it for reference.

As with all mutual funds, the fact that these shares are registered with the
Securities and Exchange Commission does not mean that the commission approves
them or guarantees that the information in this prospectus is correct or
adequate. It is a criminal offense to state or suggest otherwise.

JPMorgan

Distributed by Funds Distributor, Inc.

CONTENTS
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2 | J.P. MORGAN FIXED INCOME FUNDS

Each fund's goal, principal
strategies, principal risks,
performance and expenses

J.P. Morgan Short Term Bond Fund .................................. 2

J.P. Morgan Bond Fund ............................................. 4

J.P. Morgan Global Strategic Income Fund .......................... 6

J.P. Morgan Emerging Markets Debt Fund ............................ 8

J.P. Morgan Tax Exempt Bond Fund .................................. 10

J.P. Morgan New York Tax Exempt Bond Fund ......................... 12

14 | FIXED INCOME MANAGEMENT APPROACH

Principles and techniques common
to the funds in this prospectus

J.P. Morgan ....................................................... 14

J.P. Morgan Fixed Income Funds .................................... 14

The spectrum of fixed income funds ................................ 14

Who may want to invest ............................................ 14

Fixed income investment process ................................... 15

16 | YOUR INVESTMENT

Investing in the J.P. Morgan
Fixed Income Funds

Investing through a financial professional ........................ 16

Investing through an employer-sponsored retirement plan ........... 16

Investing through an IRA or rollover IRA .......................... 16

Investing directly ................................................ 16

Opening your account .............................................. 16

Adding to your account ............................................ 16

Selling shares .................................................... 17

Account and transaction policies .................................. 17

Dividends and distributions ....................................... 18

Tax considerations ................................................ 18

19 | FUND DETAILS

More about risk and the funds'
business operations

Business structure ................................................ 19

Management and administration ..................................... 19

Risk and reward elements .......................................... 20

Investments ....................................................... 24

Financial highlights .............................................. 26

FOR MORE INFORMATION ...................................... back cover

J.P. MORGAN SHORT TERM BOND FUND | TICKER SYMBOL: JPSBX
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REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN SHORT TERM BOND FUND)

[GRAPHIC] RISK/RETURN SUMMARY

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide high total return, consistent with low
volatility of principal. This goal can be changed without shareholder approval.

[GRAPHIC] INVESTMENT APPROACH

Principal Strategies

The fund invests primarily in fixed income securities, including U.S.
government and agency securities, domestic and foreign corporate bonds, private
placements, asset-backed and mortgage-related securities, and money market
instruments, that it believes have the potential to provide a high total return
over time. These securities may be of any maturity, but under normal market
conditions the fund's duration will range between one and three years, similar
to that of the Merrill Lynch 1-3 Year Treasury Index. For a description of
duration, please see "Fixed Income Investment Process" on page 15.

Up to 25% of assets may be invested in foreign securities, including 20% in debt
securities denominated in foreign currencies of developed countries. The fund
typically hedges its non-dollar investments back to the U.S. dollar. At least
90% of assets must be invested in securities that, at the time of purchase, are
rated investment-grade (BBB/Baa or better) or are the unrated equivalent,
including at least 75% A or better. No more than 10% of assets may be invested
in securities rated B or BB.

Principal Risks

The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
duration fixed income funds will depend on the success of the investment
process, which is described on page 15.

Although any rise in interest rates is likely to cause a fall in the price of
bonds, the fund's comparatively short duration is designed to help keep its
share price within a relatively narrow range. Because it seeks to minimize risk,
the fund will generally offer less income, and during periods of declining
interest rates, may offer lower total returns than bond funds with longer
durations. Because of the sensitivity of the fund's mortgage related securities
to changes in interest rates, the performance and duration of the fund may be
more volatile than if it did not hold these securities. The fund uses futures
contracts and other derivatives to help manage duration, yield curve exposure,
and credit and spread volatility. To the extent that the fund seeks higher
returns by investing in non-investment-grade bonds, often called junk bonds, it
takes on additional risks, since these bonds are more sensitive to economic news
and their issuers have a less secure financial position. To the extent the fund
invests in foreign securities, it could lose money because of foreign government
actions, political instability, currency fluctuation or lack of adequate and
accurate information. The fund may engage in active and frequent trading,
leading to increased portfolio turnover and the possibility of increased capital
gains. See page 18 for further discussion on the tax treatment of capital gains.

An investment in the fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You could lose money if you sell when the fund's share price is lower
than when you invested.

PORTFOLIO MANAGEMENT

The fund's assets are managed by J.P. Morgan Investment Management Inc., a
subsidiary of J.P. Morgan Chase & Co. J.P. Morgan Chase currently manages
more than $700 billion, including more than $___ billion using similar
strategies as the fund.

The portfolio management team is led by Connie J. Plaehn, managing director, who
has been on the team since the fund's inception and has been at J.P. Morgan
since 1984; John Donohue, vice president, who has been on the team since joining
J.P. Morgan in June of 1997 from Goldman Sachs & Co., where he was an
institutional money market portfolio manager; and Abigail J. Feder, vice
president, who joined J.P. Morgan in April of 2000 from Morgan Stanley Dean
Witter Investment Management, where she managed short term fixed income
portfolios.

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Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

2 | J.P. MORGAN SHORT TERM BOND FUND

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PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Short Term Bond Fund.

The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last seven calendar
years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past one year, five years and life of the fund compared to those
of the Merrill Lynch 1-3 Year Treasury Index. This is a widely recognized,
unmanaged index of U.S. Treasury notes and bonds with maturities of 1-3 years
used as a measure of overall short-term bond market performance.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following table was depicted as a bar chart in the printed material.]

- ------------------------------
Year-by-year total return (%) Shows changes in returns by calendar year (1),(2)
- ---------------------------------------------------------------------------------------
1994 1995 1996 1997 1998 1999 2000

0.11 10.58 4.94 6.14 6.84 2.81 7.03
- ---------------------------------------------------------------------------------------

o J.P. Morgan Short Term Bond Fund

The fund's year-to-date total return as of 12/31/00 was 7.03%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 3.41% (for the quarter ended 6/30/95); and the lowest quarterly
return was -0.54% (for the quarter ended 3/31/94).

- -------------------------------
Average annual total return (%) Shows performance over time, for periods ended December 31, 2000(1)
- ------------------------------------------------------------------------------------------------------
Past 1 yr. Past 5 yrs. Life of fund(1)

J.P. Morgan Short Term Bond Fund (after expenses) 7.03 5.54 5.32
- ------------------------------------------------------------------------------------------------------
Merrill Lynch 1-3 Year Treasury Index (no expenses) 8.00 5.92 5.76
- ------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------

INVESTOR EXPENSES

The expenses of the fund before and after reimbursement are shown at right. The
fund has no sales, redemption, exchange, or account fees, although some
institutions may charge you a fee for shares you buy through them. The annual
fund expenses after reimbursement are deducted from fund assets prior to
performance calculations.

- ---------------------------------------------
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------

Management fees 0.25

Distribution (Rule 12b-1) fees none

Other expenses 0.57
- ---------------------------------------------
Total operating expenses 0.82

Fee waiver and expense
reimbursement(4) 0.22
- ---------------------------------------------
Net expenses(4,5) 0.60
- ---------------------------------------------

- ---------------------------------------------
Expense example(4)
- ---------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
3/1/01 through 2/28/02 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.

- ---------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 61 240 433 993
- ---------------------------------------------

(1) The fund commenced operations on 7/8/93 and returns reflect performance of
the fund from 7/31/93.

(2) The fund's fiscal year end is 10/31.

(3) The fund has a master/feeder structure as described on page 19. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year expressed as a percentage of the fund's average net
assets.

(4) Reflects an agreement dated 3/1/01 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
total operating expenses (excluding interest, taxes, and extraordinary
expenses) exceed 0.60% of the fund's average daily net assets through
2/28/02.

J.P. MORGAN SHORT TERM BOND FUND | 3

J.P. MORGAN BOND FUND | TICKER SYMBOL: PPBDX
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REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN BOND FUND)

[GRAPHIC] RISK/RETURN SUMMARY

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide high total return consistent with moderate
risk of capital and maintenance of liquidity. This goal can be changed without
shareholder approval.

[GRAPHIC] INVESTMENT APPROACH

Principal Strategies

The fund invests primarily in fixed income securities, including U.S. government
and agency securities, corporate bonds, private placements, asset-backed and
mortgage-backed securities, that it believes have the potential to provide a
high total return over time. These securities may be of any maturity, but under
normal market conditions the management team will keep the fund's duration
within one year of that of the Salomon Smith Barney Broad Investment Grade Bond
Index (currently about five years). For a description of duration, please see
"Fixed Income Investment Process" on page 15.

Up to 25% of assets may be invested in foreign securities, including 20% in debt
securities denominated in foreign currencies of developed countries. The fund
typically hedges its non-dollar investments back to the U.S. dollar. At least
75% of assets must be invested in securities that, at the time of purchase, are
rated investment-grade (BBB/Baa or better) or are the unrated equivalent,
including at least 65% A or better. No more than 25% of assets may be invested
in securities rated B or BB.

Principal Risks

To the extent that the fund seeks higher returns by investing in
non-investment-grade bonds, often called junk bonds, it takes on additional
risks, since these bonds are more sensitive to economic news and their issuers
have a less secure financial position. The fund may use futures contracts and
other derivatives to help manage duration, yield curve exposure, and credit and
spread volatility. To the extent the fund invests in foreign securities, it
could lose money because of foreign government actions, political instability,
currency fluctuation or lack of adequate and accurate information. The fund's
mortgage-backed investments involve risk of losses due to prepayments that occur
earlier or later than expected, like any bond, due to default. The fund may
engage in active and frequent trading, leading to increased portfolio turnover
and the possibility of increased capital gains. See page 18 for further
discussion on the tax treatment of capital gains.

PORTFOLIO MANAGEMENT

The portfolio management team is led by Connie Plaehn, managing director, who
has been at J.P. Morgan since 1984, Paul Zemsky, managing director, who has been
at J.P. Morgan since 1985 and Jay Gladieux, vice president, who has been at J.P.
Morgan since 1997. Mr. Zemsky has been on the team since 1988 and Mrs. Plaehn
has been on the team since 1994. Mr. Gladieux joined the team in September of
2000.

- --------------------------------------------------------------------------------

Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

4 | J.P. MORGAN BOND FUND

- --------------------------------------------------------------------------------

PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Bond Fund.

The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last ten calendar years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past one, five and ten years compared to those of the Salomon
Smith Barney Broad Investment Grade Bond Index. This is a widely recognized,
unmanaged index of U.S. Treasury and agency securities and investment-grade
mortgage and corporate bonds used as a measure of overall bond market
performance.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following was depicted as a bar chart in the printed material.]

- ------------------------------
Year-by-year total return (%) Shows changes in returns by calendar year(1)
- -------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

13.45 6.53 9.87 (2.97) 18.17 3.13 9.13 7.36 (0.73) 10.62
- -------------------------------------------------------------------------------------

o J.P. Morgan Bond Fund

For the period covered by this year-by-year total return chart, the fund's
highest quarterly return was 6.25% (for the quarter ended 6/30/95); and the
lowest quarterly return was -2.39% (for the quarter ended 3/31/94).

J.P. Morgan Bond Fund (after expenses) 10.62 5.82 7.29
- ------------------------------------------------------------------------------------------------------
Salomon Smith Barney Broad Investment
Grade Bond Index (no expenses) 11.59 6.45 8.00
- ------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------

INVESTOR EXPENSES

The expenses of the fund are shown at right. The fund has no sales, redemption,
exchange, or account fees, although some institutions may charge you a fee for
shares you buy through them. The annual fund expenses are deducted from fund
assets prior to performance calculations.

- ---------------------------------------------
Annual fund operating expenses(2)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------

Management fees 0.30

Distribution (Rule 12b-1) fees none

Other expenses 0.39
- ---------------------------------------------
Total annual fund
operating expenses 0.69
- ---------------------------------------------

- ---------------------------------------------
Expense example
- ---------------------------------------------

The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, total operating expenses remain
unchanged, and all shares sold at the end of each time period. The example is
for comparison only; the fund's actual return and your actual costs may be
higher or lower.

- ---------------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 70 221 384 859
- ---------------------------------------------------

(1) The fund's fiscal year end is 10/31.

(2) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year expressed as a percentage of average net assets.

J.P. MORGAN BOND FUND | 5

J.P. MORGAN GLOBAL STRATEGIC INCOME FUND | TICKER SYMBOL: JPGSX
- --------------------------------------------------------------------------------
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN GLOBAL STRATEGIC INCOME FUND)

[GRAPHIC] RISK/RETURN SUMMARY

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide high total return from a portfolio of fixed
income securities of foreign and domestic issuers. This goal can be changed
without shareholder approval.

[GRAPHIC] INVESTMENT APPROACH

Principal Strategies

The fund invests in a wide range of debt securities from the U.S. and
other markets, both developed and emerging. Issuers may include governments,
corporations, financial institutions, and supranational organizations (such as
the World Bank) that the fund believes have the potential to provide a high
total return over time. The fund may invest directly in mortgages and in
mortgage-backed securities. The fund's securities may be of any maturity, but
under normal market conditions its duration will generally be similar to that of
the Lehman Brothers Aggregate Bond Index (currently about four and a half
years). For a description of duration, please see "Fixed Income Investment
Process" on page 15. At least 40% of assets must be invested in securities that,
at the time of purchase, are rated investment-grade (BBB/Baa or better) or are
the unrated equivalent. The balance of assets must be invested in securities
rated B or higher at the time of purchase (or the unrated equivalent), except
that the fund's emerging market component has no minimum quality rating and may
invest without limit in securities that are in the lowest rating categories (or
are the unrated equivalent).

The management team uses the process described on page 15, and also makes
country allocations, based primarily on macro-economic factors. The team uses
the model allocation shown at right as a basis for its sector allocation,
although the actual allocations are adjusted periodically within the indicated
ranges. Within each sector, a dedicated team handles securities selection. The
fund typically hedges its non-dollar investments in developed countries back to
the U.S. dollar.

Principal Risks

The fund's share price and total return will vary in response to changes in
global bond markets, interest rates, and currency exchange rates. How well the
fund's performance compares to that of similar fixed income funds will depend on
the success of the investment process. Because of credit and foreign and
emerging markets investment risks, the fund's performance is likely to be more
volatile than that of most fixed income funds. Foreign and emerging market
investment risks include foreign government actions, political instability,
currency fluctuations and lack of adequate and accurate information. To the
extent that the fund seeks higher returns by investing in non-investment-grade
bonds, often called junk bonds, it takes on additional risks, since these bonds
are more sensitive to economic news and their issuers have a less secure
financial position. The fund's mortgage-backed investments involve the risk of
losses due to default or to prepayments that occur earlier or later than
expected. Some investments, including directly owned mortgages, may be illiquid.
The fund has the potential for long-term total returns that exceed those of more
traditional bond funds, but investors should also be prepared for risks that
exceed those of more traditional bond funds. The fund may engage in active and
frequent trading, leading to increased portfolio turnover and the possibility of
increased capital gains. See page 18 for further discussion on the tax treatment
of capital gains.

MODEL SECTOR ALLOCATION

[The following was depicted as a pie chart in the printed material.]

9% international non-dollar (range 0-25%)
35% public/private mortgages (range 20-45%)
13% public/private corporates (range 5-25%)
16% emerging markets (range 0-25%)
27% high yield corporates (range 17-37%)

PORTFOLIO MANAGEMENT

The fund's assets are managed by J.P. Morgan Investment Management Inc., a
subsidiary of J.P. Morgan Chase & Co. J.P. Morgan Chase currently manages more
than $700 billion, including more than $___ billion using similar strategies as
the fund.

The portfolio management team is led by Mark E. Smith, managing director, who
joined J.P. Morgan in 1994 and has been on the team since the Fund's inception,
and Robert J. Morena, vice president, who joined J.P. Morgan in 2000. Prior to
joining J.P. Morgan, Mr. Morena served as a managing director at Forest
Investment Management where he managed fixed income portfolios. Prior to that,
he served as the Department Head of The Bank of New York's Institutional Fixed
Income Division.

- --------------------------------------------------------------------------------
Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

6 | J.P. MORGAN GLOBAL STRATEGIC INCOME FUND

- --------------------------------------------------------------------------------
PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Global Strategic Income Fund.

The bar chart indicates some of the risks by showing the performance of the
fund's(1) shares from year to year for each of the last three calendar years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past one year and life of the fund compared to those of the
Lehman Brothers Aggregate Bond Index. This is a widely recognized, unmanaged
index used as a measure of overall bond market performance.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following was depicted as a bar chart in the original printed material.]

- --------------------
Total return (%) Shows changes in returns by calendar year(1),(2)
- ------------------------------------------------------------------
1998 1999 2000

2.31 2.08 7.55
- ------------------------------------------------------------------

o J.P. Morgan Global Strategic Income Fund(1)

The fund's year-to-date total return as of 12/31/00 was 7.55%. For the period
covered by this total return chart, the fund's highest quarterly return was
3.04% (for the quarter ended 3/31/98); and the lowest quarterly return was
- -1.58% (for the quarter ended 9/30/98).

- ---------------------------------
Average annual total return (%) Shows performance over time, for periods ended December 31, 2000(1)
- ------------------------------------------------------------------------------------------------------
Past 1 yr. Life of fund(1)

J.P. Morgan Global Strategic Income Fund (after expenses) 7.55 5.69
- ------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index (no expenses) 11.63 7.84
- ------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
INVESTOR EXPENSES

- ---------------------------------------------
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------
Management fees 0.45

Distribution (Rule 12b-1) fees none

Other expenses 2.05
- ---------------------------------------------
Total operating expenses 2.50

Fee waiver and expense
reimbursement(4) 1.50
- ---------------------------------------------
Net expenses(4) 1.00
- ---------------------------------------------

- ---------------------------------------------
Expense example(4)
- ---------------------------------------------

The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
3/1/01 through 2/28/02 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.

- ---------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 102 635 1,195 2,723
- ---------------------------------------------

(1) The fund commenced operations on 11/5/97. For the period 3/31/97 through
11/30/97, returns reflect performance of the J.P. Morgan Institutional
Global Strategic Income Fund (a separate feeder fund investing in the same
master portfolio). These returns reflect lower operating expenses than
those of the fund. Therefore these returns may be higher than the fund's
would have been had it existed during the same period.

(2) The fund's fiscal year end is 10/31.

(4) Reflects an agreement dated 3/1/01 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
total operating expenses (excluding interest, taxes, and extraordinary
expenses) exceed 1.00% of the fund's average daily net assets through
2/28/02.

J.P. MORGAN GLOBAL STRATEGIC INCOME FUND | 7

J.P. MORGAN EMERGING
MARKETS DEBT FUND | TICKER SYMBOL: JEMDX
- --------------------------------------------------------------------------------
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN EMERGING MARKETS DEBT FUND)

[GRAPHIC] RISKS/RETURN SUMMARY

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide high total return from a portfolio of fixed
income securities of emerging markets issuers. This goal can be changed without
shareholder approval.

[GRAPHIC] Investment approach

Principal Strategies

The fund invests primarily in debt securities that it believes have the
potential to provide a high total return from countries whose economies or bond
markets are less developed. This designation currently includes most countries
in the world except Australia, Canada, Hong Kong, Japan, New Zealand, the U.S.,
the United Kingdom, and most Western European countries. Issuers of portfolio
securities may include foreign governments, corporations, and financial
institutions. These securities may be of any maturity and quality, but under
normal market conditions the fund's duration will generally range between three
and five years, similar to that of the Emerging Markets Bond Index Global. For a
description of duration, please see "Fixed Income Investment Process" on page
15. The fund does not have any minimum quality rating and may invest without
limit in securities that are rated in the lowest rating categories (or are the
unrated equivalent).

In addition to the investment process described on page 15, the management team
makes country allocation decisions, based primarily on financial and economic
forecasts and other macro-economic factors.

Principal Risks

The fund's share price and total return will vary in response to changes in
emerging bond markets, interest rates, and currency exchange rates. How well the
fund's performance compares to that of similar fixed income funds will depend on
the success of the investment process.

Because the fund is non-diversified and may invest more than 5% of its assets in
a single issuer and its primary securities combine the risks of emerging markets
and low credit quality, its performance is likely to be more volatile than that
of other fixed income investments. These risks and fund volatility are likely to
be compounded when the fund concentrates its investments in a small number of
countries. Emerging market investment risks include foreign government actions,
political instability, currency fluctuations and lack of adequate and accurate
information. The fund may engage in active and frequent trading, leading to
increased portfolio turnover and the possibility of increased capital gains. See
page 18 for further discussion on the tax treatment of capital gains. Since the
fund seeks higher returns by investing in non-investment-grade bonds, often
called junk bonds, it takes on additional risks, since these bonds are more
sensitive to economic news and their issuers have a less secure financial
position. Investors should be prepared to ride out periods of negative return.

PORTFOLIO MANAGEMENT

The fund's assets are managed by J.P. Morgan Investment Management, Inc., a
subsidiary of J.P. Morgan Chase & Co. J.P. Morgan Chase currently manages
more than $700 billion, including more than $___ million using similar
strategies as the fund.

The portfolio management team is led by Michael Cembalest, managing director,
who has been at J.P. Morgan from 1988 to January 1998 and since June 1998, and
Paul Dickson, vice president, who has been at J.P. Morgan since November 1999.
Prior to joining the portfolio management team, Mr. Cembalest was responsible
for sovereign debt analysis in the emerging markets group. From January 1998 to
June 1998, Mr. Cembalest was a portfolio manager at Morgan Stanley. Previously,
Mr. Dickson was the senior emerging markets debt strategist at Lehman Brothers.
From 1993 to 1997, Mr. Dickson served as a strategist with Chase Manhattan Bank.

- --------------------------------------------------------------------------------

Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

8 | J.P. MORGAN EMERGING MARKETS DEBT FUND

- --------------------------------------------------------------------------------

PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Emerging Markets Debt Fund.

The bar chart indicates some of the risks by showing the performance of the
fund's shares from year to year for each of the last three calendar years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past year and life of fund compared to the Emerging Markets Bond
Index Global. This broad-based unmanaged index tracks total return for U.S.
dollar denominated emerging markets debt, including Brady bonds, Eurobonds and
loans. The Emerging Market Bond Index Global is a more diverse index that
includes more countries.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following was depicted as a bar chart in the original printed material.]

- -----------------
Total return (%) Shows changes in returns by calendar year(1),(2)
- ------------------------------------------------------------------
1998 1999 2000

(15.93) 25.97 15.23
- ------------------------------------------------------------------

o J.P. Morgan Emerging Market Debt Fund

The fund's year-to-date total return as of 12/31/00 was 15.23%. For the period
covered by this total return chart, the fund's highest quarterly return was
14.16%(for the quarter ended 12/31/99) and the lowest quarterly return was
- -21.73% (for the quarter ended 9/30/98).

J.P. Morgan Emerging Market Debt Fund (after expenses) 15.23 6.54
- ------------------------------------------------------------------------------------------------------
Emerging Markets Bond Index Global (no expenses) 14.41 8.53
- ------------------------------------------------------------------------------------------------------

INVESTOR EXPENSES

- ---------------------------------------------
Annual fund operating expenses(3)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------
Management fees 0.70

Distribution (Rule 12b-1) fees none

Other expenses 1.25
- ---------------------------------------------
Total operating expenses 1.95

Fee waiver and expense
reimbursement(4) 0.64
- ---------------------------------------------
Net expenses(4),(5) 1.31
- ---------------------------------------------

- ---------------------------------------------
Expense example(4)
- ---------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, net expenses for the period
12/1/00 through 11/30/01 and total operating expenses thereafter, and all shares
sold at the end of each time period. The example is for comparison only; the
fund's actual return and your actual costs may be higher or lower.

- ---------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 133 550 993 2,223
- ---------------------------------------------

(1) The fund commenced operations on 4/17/97 and returns reflect performance
of the fund from 4/30/97.

(2) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 12/31.

(4) Reflects an agreement 12/1/00 by Morgan Guaranty Trust Company of New
York, an affiliate of J.P. Morgan, to reimburse the fund to the extent
total operating expenses (excluding interest, taxes, and extraordinary
expenses) exceed 1.25% of the fund's average daily net assets through
11/30/01.

(5) Actual net expenses for the year ended July 31, 2000, were 1.31% of
average daily net assets as a result of non-reimbursed interest expense
equal to 0.06% of average daily net assets.

J.P. MORGAN EMERGING MARKETS DEBT FUND | 9

J.P. MORGAN TAX EXEMPT
BOND FUND | TICKER SYMBOL: PPTBX
- --------------------------------------------------------------------------------
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN TAX EXEMPT BOND FUND)

[GRAPHIC] RISK/RETURN SUMMARY

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide a high level of current income that is
exempt from federal income tax consistent with moderate risk of capital. This
goal can be changed without shareholder approval.

[GRAPHIC] INVESTMENT APPROACH

Principal Strategies

The fund invests primarily in high quality municipal securities that it believes
have the potential to provide high current income that is free from federal
personal income tax. While the fund's goal is high tax-exempt income, the fund
may invest to a limited extent in taxable securities, including U.S. government,
government agency, corporate, or taxable municipal securities. The fund's
securities may be of any maturity, but under normal market conditions the fund's
duration will generally range between four and seven years, similar to that of
the Lehman Brothers Intermediate Competitive Municipal Bond Index (1-17 Year
Maturity)(currently 5.4 years). For a description of duration, please see "Fixed
Income Investment Process" on page 15. At least 90% of assets must be invested
in securities that, at the time of purchase, are rated investment-grade (BBB/Baa
or better) or are the unrated equivalent. No more than 10% of assets may be
invested in securities rated B or BB.

Principal Risks

The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
tax-exempt funds will depend on the success of the investment process, which is
described on page 15.

Investors should be prepared for higher share price volatility than from a tax
exempt fund of shorter duration. The fund's performance could also be affected
by market reaction to proposed tax legislation. To the extent that the fund
seeks higher returns by investing in non-investment-grade bonds, often called
junk bonds, it takes on additional risks, since these bonds are more sensitive
to economic news and their issuers have a less secure financial position.

PORTFOLIO MANAGEMENT

The portfolio management team is led by Benjamin Thompson, vice president, who
joined the team in June of 1999, Robert W. Meiselas, vice president, who joined
the team in June of 1997 and has been at J.P. Morgan since 1987, and Kingsley
Wood, Jr., vice president, who has been on the team since January 2000. Prior to
joining J.P. Morgan, Mr. Thompson was a senior fixed income portfolio manager at
Goldman Sachs, and Mr. Wood was a senior fixed income portfolio manager at
Mercantile Bank & Trust. Prior to joining Mercantile in July of 1998, Mr. Wood
was an institutional tax-exempt trader at ABN-AMRO and Kemper Securities.

- --------------------------------------------------------------------------------

Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

10 | J.P. MORGAN TAX EXEMPT BOND FUND

- --------------------------------------------------------------------------------

PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan Tax Exempt Bond Fund.

The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the fund's last ten calendar
years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past one, five and ten years compared to those of the Lehman
Brothers 1-16 Year Municipal Bond Index and the Lehman Brothers Intermediate
Competitive Municipal Bond Index (1-17 Year Maturity), the fund's current
benchmark. Both are unmanaged indices that measure municipal bond market
performance.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following was depicted as a bar chart in the printed material.]

- -------------------------------
Year-by-year total return (%) Shows changes in returns by calendar year(1)
- ------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

10.92 7.47 9.58 (2.70) 13.40 3.54 7.42 5.47 (0.88) 8.33
- ------------------------------------------------------------------------------

o J.P. Morgan Tax Exempt Bond Fund

The fund's year-to-date total return as of 12/31/00 was 8.33%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 5.09% (for the quarter ended 3/31/95); and the lowest quarterly
return was -3.08% (for the quarter ended 3/31/94).

J.P. Morgan Tax Exempt Bond Fund (after expenses) 8.33 4.73 6.15
- -----------------------------------------------------------------------------------------------------
Lehman Brothers Intermediate Competitive Municipal
Bond Index (1-17 Year Maturity)(2) (no expenses) 9.59 5.59 N/A
- -----------------------------------------------------------------------------------------------------
Lehman Brothers 1-16 Year Municipal Bond Index
(no expenses) 9.32 5.53 N/A
- -----------------------------------------------------------------------------------------------------
Lehman Brothers/J.P. Morgan Hybrid Index(3) 9.48 4.73 N/A
- -----------------------------------------------------------------------------------------------------

INVESTOR EXPENSES

- ---------------------------------------------
Annual fund operating expenses(4)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------

Management fees 0.30

Distribution (Rule 12b-1) fees none

Other expenses 0.37
- ---------------------------------------------
Total annual fund
operating expenses 0.67
- ---------------------------------------------

- ---------------------------------------------
Expense example
- ---------------------------------------------

- ---------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 68 214 373 835
- ---------------------------------------------

(1) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 8/31.

(2) Previously the fund had used the Lehman Brothers 1-16 Year Municipal Bond
Index as a comparative broad-based securities market index. The fund has
chosen to use the Lehman Brothers Intermediate Competitive Municipal Bond
Index (1-17 Year Maturity) because it is more widely disseminated.

(3) The Lehman Brothers/J.P. Morgan Hybrid Index consists of Lehman Brothers
1-16 Year Municipal Bond Index from 9/30/93 to 9/1/00, then Lehman
Brothers Intermediate Competitive Municipal Bond Index (1-17 Maturity),
thereafter.

(4) The fund has a master/feeder structure as described on page 18. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year expressed as a percentage of average net assets.

J.P. MORGAN TAX EXEMPT BOND FUND | 11

J.P. MORGAN NEW YORK
TAX EXEMPT BOND FUND | TICKER SYMBOL: PPNYX
- --------------------------------------------------------------------------------
REGISTRANT: J.P. MORGAN FUNDS
(J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND)

[GRAPHIC] Risk/Return Summary

For a more detailed discussion of the fund's investments and their main
risks, as well as fund strategies, please see pages 20-25.

[GRAPHIC] GOAL

The fund's goal is to provide a high level of tax exempt income for New
York residents consistent with moderate risk of capital. This goal can be
changed without shareholder approval.

[GRAPHIC] INVESTMENT APPROACH

Principal Strategies

The fund invests primarily in New York municipal securities that it believes
have the potential to provide high current income which is free from federal,
state, and New York City personal income taxes for New York residents. The fund
may also invest to a limited extent in securities of other states or
territories. To the extent that the fund invests in municipal securities of
other states, the income from such securities would be free from federal
personal income taxes for New York residents but would be subject to New York
State and New York City personal income taxes. For non-New York residents, the
income from New York municipal securities is free from federal personal income
taxes only. The fund may also invest in taxable securities. The fund's
securities may be of any maturity, but under normal market conditions the fund's
duration will generally range between three and seven years, similar to that of
the Lehman Brothers New York 1 to 17 Years Municipal Bond Index (currently 5.4
years). For a description of duration, please see "Fixed Income Investment
Process" on page 15. At least 90% of assets must be invested in securities that,
at the time of purchase, are rated investment-grade (BBB/Baa or better) or are
the unrated equivalent. No more than 10% of assets may be invested in securities
rated B or BB.

Principal Risks

The fund's share price and total return will vary in response to changes in
interest rates. How well the fund's performance compares to that of similar
fixed income funds will depend on the success of the investment process, which
is described on page 15. Because most of the fund's investments will typically
be from issuers in the State of New York, its performance will be affected by
the fiscal and economic health of that state and its municipalities. The fund is
non-diversified and may invest more than 5% of assets in a single issuer, which
could further concentrate its risks. To the extent that the fund seeks higher
returns by investing in non-investment-grade bonds, often called junk bonds, it
takes on additional risks, since these bonds are more sensitive to economic news
and their issuers have a less secure financial condition.

PORTFOLIO MANAGEMENT

The portfolio management team is led by Benjamin Thompson, vice president, who
joined the team in June of 1999, Robert W. Meiselas, vice president, who joined
the team in June of 1997 and has been at J.P. Morgan since 1987, and Kingsley
Wood, Jr., vice president, who has been on the team since January 2000. Prior to
joining J.P. Morgan, Mr. Thompson was a senior fixed income portfolio manager at
Goldman Sachs, and Mr.Wood was a senior fixed income portfolio manager at
Mercantile Bank & Trust. Prior to joining Mercantile in July of 1998, Mr. Wood
was an institutional tax-exempt trader at ABN-AMRO and Kemper Securities.

- --------------------------------------------------------------------------------

Before you invest

Investors considering the fund should understand that:

o The fund seeks to achieve its goal by investing in a master portfolio,
which is another fund with the same goal.

o There is no assurance that the fund will meet its investment goal.

o The fund does not represent a complete investment program.

12 | J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND

- --------------------------------------------------------------------------------

PERFORMANCE (unaudited)

The bar chart and table shown below provide some indication of the risks of
investing in J.P. Morgan New York Tax Exempt Bond Fund.

The bar chart indicates some of the risks by showing changes in the performance
of the fund's shares from year to year for each of the last six calendar years.

The table indicates some of the risks by showing how the fund's average annual
returns for the past one and five years and the life of the fund compared to
those of the Lehman Brothers 1-16 Year Municipal Bond Index and the Lehman
Brothers New York 1 to 17 Years Municipal Bond Index, the fund's current
benchmark. Both are widely recognized, unmanaged indices that measure municipal
bond market performance.

The fund's past performance does not necessarily indicate how the fund will
perform in the future.

[The following was depicted as a bar chart in the printed material.]

- -------------------------------
Year-by-year total return (%) Shows changes in returns by calendar year(1),(2)
- -------------------------------------------------------------------------------
1995 1996 1997 1998 1999 2000

13.03 3.96 7.41 5.39 (0.84) 8.97
- -------------------------------------------------------------------------------

o J.P. Morgan New York Tax Exempt Bond Fund

The fund's year-to-date total return as of 12/31/00 was 8.97%. For the period
covered by this year-by-year total return chart, the fund's highest quarterly
return was 4.80% (for the quarter ended 3/31/95) and the lowest quarterly return
was -1.83%(for the quarter ended 6/30/99).

- ----------------------------------
Average annual total return (%) Shows performance over time, for periods ended December 31, 2000(1)
- ------------------------------------------------------------------------------------------------------
Past 1 yr. Past 5 yrs. Life of fund

J.P. Morgan New York Tax Exempt Bond Fund (after expenses) 8.97 4.92 5.64
- ------------------------------------------------------------------------------------------------------
Lehman Brothers New York 1 to 17 Years Municipal Bond
Index(3) (no expenses) 9.67 5.90 6.62
- ------------------------------------------------------------------------------------------------------
Lehman Brothers 1-16 Year Municipal Bond Index (no expenses) 9.32 5.53 6.30
- ------------------------------------------------------------------------------------------------------

- --------------------------------------------------------------------------------

INVESTOR EXPENSES

- ---------------------------------------------
Annual fund operating expenses(4)(%)
(expenses that are deducted from fund assets)
- ---------------------------------------------

Management fees 0.30

Distribution (Rule 12b-1) fees none

Other expenses 0.43
- ---------------------------------------------
Total operating expenses 0.73
- ---------------------------------------------

- ---------------------------------------------
Expense example
- ---------------------------------------------
The example below is intended to help you compare the cost of investing in the
fund with the cost of investing in other mutual funds. The example assumes:
$10,000 initial investment, 5% return each year, and total operating expenses
remain unchanged, all shares sold at the end of each time period. The example is
for comparison only; the fund's actual return and your actual costs may be
higher or lower.

- ---------------------------------------------
1 yr. 3 yrs. 5 yrs. 10 yrs.

Your cost($) 75 233 406 906
- ---------------------------------------------

(1) The fund commenced operations on 4/11/94 and returns reflect performance
of the fund from 4/30/94.

(2) The fund's fiscal year end is 7/31. Prior to 1999, the fund's fiscal year
end was 3/31.

(3) Previously the fund had used the Lehman Brothers 1-16 Year Municipal Bond
Index, which is composed of tax-exempt securities of various states and
measures overall tax-exempt bond market performance, as a comparative
broad-based securities market index. The fund has chosen the Lehman
Brothers New York 1 to 17 Years Municipal Bond Index because it measures
New York tax-exempt bond market performance and reflects the universe of
securities in which the fund invests.

(4) The fund has a master/feeder structure as described on page 19. This table
shows the fund's expenses and its share of master portfolio expenses for
the past fiscal year, expressed as a percentage of average net assets.

J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND | 13

FIXED INCOME MANAGEMENT APPROACH
- --------------------------------------------------------------------------------

J.P. MORGAN

Known for its commitment to proprietary research and its disciplined investment
strategies, J.P. Morgan Chase is the asset management choice for many of the
world's most respected corporations, financial institutions, governments, and
individuals. Today, J.P. Morgan Chase employs approximately ___ research
analysts, capital market researchers, portfolio managers and traders around the
world and has more than $700 billion in assets under management.

J.P. MORGAN FIXED INCOME FUNDS

These funds invest primarily in bonds and other fixed income securities, either
directly or through a master portfolio (another fund with the same goal). The
funds seek high total return or high current income.

While each fund follows its own strategy, the funds as a group share a single
investment philosophy. This philosophy, developed by the funds' advisor,
emphasizes the potential for consistently enhancing performance while managing
risk.

THE SPECTRUM OF FIXED INCOME FUNDS

The funds described in this prospectus pursue different goals and offer varying
degrees of risk and potential reward. The table below shows degrees of the
relative risk and return that these funds potentially offer. These and other
distinguishing features of each fixed income fund were described on the
preceding pages. Differences among these funds include:

o the types of securities they hold

o the tax status of the income they offer

o the relative emphasis on current income versus total return

- -------------------------------------
Potential risk and return
- -------------------------------------

[GRAPHIC]

The positions of the funds in this graph reflect long-term performance goals
only, and are relative, not absolute.

* Based on tax-equivalent returns for an investor in the highest income tax
bracket.

- --------------------------------------------------------------------------------

Who May Want to Invest

The funds are designed for investors who:

o want to add an income investment to further diversify a portfolio

o want an investment whose risk/return potential is higher than that of
money market funds but generally less than that of stock funds

o want an investment that pays monthly dividends

o with regard to the Tax Exempt Bond Fund, are seeking income that is exempt
from federal personal income tax

o with regard to the New York Tax Exempt Bond Fund, are seeking income that
is exempt from federal, state, and local (if applicable) personal income
taxes in New York

The funds are not designed for investors who:

o are investing for aggressive long-term growth

o require stability of principal

o with regard to the Global Strategic Income or Emerging Markets Debt funds,
are not prepared to accept a higher degree of risk than most traditional
bond funds

o with regard to the federal or state tax-exempt funds, are investing
through a tax-deferred account such as an IRA

14 | FIXED INCOME MANAGEMENT APPROACH

- --------------------------------------------------------------------------------

FIXED INCOME INVESTMENT PROCESS

J.P. Morgan seeks to generate an information advantage through the depth of its
global fixed-income research and the sophistication of its analytical systems.
Using a team-oriented approach, J.P. Morgan seeks to gain insights in a broad
range of distinct areas, and when consistent with a fund's investment approach,
takes positions in many different areas, helping the funds to limit exposure to
concentrated sources of risk.

In managing the funds described in this prospectus, J.P. Morgan employs a
three-step process that combines sector allocation, fundamental research for
identifying portfolio securities, and duration management.

[GRAPHIC]

The funds invest across a range of
different types of securities

Sector allocation The sector allocation team meets monthly, analyzing the
fundamentals of a broad range of sectors in which a fund may invest. The team
seeks to enhance performance and manage risk by underweighting or overweighting
sectors.

[GRAPHIC]

Each fund makes its portfolio decisions
as described earlier in this prospectus

Security selection Relying on the insights of different specialists, including
credit analysts, quantitative researchers, and dedicated fixed income traders,
the portfolio managers make buy and sell decisions according to each fund's goal
and strategy.

[GRAPHIC]

J.P. Morgan uses a disciplined process
to control each fund's sensitivity
to interest rates

Duration management Forecasting teams use fundamental economic factors to
develop strategic forecasts of the direction of interest rates. Based on these
forecasts, strategists establish each fund's target duration, a common
measurement of a security's sensitivity to interest rate movements. For
securities owned by a fund, duration measures the average time needed to receive
the present value of all principal and interest payments by analyzing cash flows
and interest rate movements. A fund's duration is generally shorter than a
fund's average maturity because the maturity of a security only measures the
time until final payment is due. Each fund's target duration typically remains
relatively close to the duration of the market as a whole, as represented by the
fund's benchmark. The strategists closely monitor the funds and make tactical
adjustments as necessary.

FIXED INCOME MANAGEMENT APPROACH | 15

YOUR INVESTMENT
- --------------------------------------------------------------------------------

For your convenience, the J.P. Morgan Funds offer several ways to start and add
to fund investments.

INVESTING THROUGH A FINANCIAL PROFESSIONAL

If you work with a financial professional, either at J.P. Morgan or elsewhere,
he or she is prepared to handle your planning and transaction needs. Your
financial professional will be able to assist you in establishing your fund
account, executing transactions, and monitoring your investment. If your fund
investment is not held in the name of your financial professional and you prefer
to place a transaction order yourself, please use the instructions for investing
directly.

INVESTING THROUGH AN EMPLOYER-SPONSORED RETIREMENT PLAN

Your fund investments are handled through your plan. Refer to your plan
materials or contact your benefits office for information on buying, selling, or
exchanging fund shares.

INVESTING THROUGH AN IRA OR ROLLOVER IRA

Please contact a J.P. Morgan Retirement Services Specialist at 1-888-576-4472
for information on J.P. Morgan's comprehensive IRA services, including lower
minimum investments.

INVESTING DIRECTLY

Investors may establish accounts without the help of an intermediary by using
the instructions below and at right:

o Choose a fund (or funds) and determine the amount you are investing. The
minimum amount for initial investments in a fund is $2,500 and for
additional investments $500, although these minimums may be less for some
investors. For more information on minimum investments, call
1-800-521-5411.

o Complete the application, indicating how much of your investment you want
to allocate to which fund(s). Please apply now for any account privileges
you may want to use in the future, in order to avoid the delays associated
with adding them later on.

o Mail in your application, making your initial investment as shown at
right.

For answers to any questions, please speak with a J.P. Morgan Funds Services
Representative at 1-800-521-5411.

OPENING YOUR ACCOUNT

By wire

o Mail your completed application to the Shareholder Services Agent.

o Call the Shareholder Services Agent to obtain an account number and to
place a purchase order. Funds that are wired without a purchase order will
be returned uninvested.

o After placing your purchase order, instruct your bank to wire the amount
of your investment to:

Morgan Guaranty Trust Company of New York - Delaware
Routing number: 031-100-238
Credit: Morgan Guaranty Trust Shareholder Services
Account number: 00073-836
FFC: your account number, name of registered owner(s) and fund name

By check

o Make out a check for the investment amount payable to J.P. Morgan Funds.

o Mail the check with your completed application to the Transfer Agent.

By exchange

o Call the Shareholder Services Agent to effect an exchange.

ADDING TO YOUR ACCOUNT

By wire

o Call the Shareholder Services Agent to place a purchase order. Funds that
are wired without a purchase order will be returned uninvested.

o Once you have placed your purchase order, instruct your bank to wire the
amount of your investment as described above.

By check

o Make out a check for the investment amount payable to J.P. Morgan Funds.

o Mail the check with a completed investment slip to the Transfer Agent. If
you do not have an investment slip, attach a note indicating your account
number and how much you wish to invest in which fund(s).

By exchange

o Call the Shareholder Services Agent to effect an exchange.

16 | YOUR INVESTMENT

- --------------------------------------------------------------------------------

Selling shares

By phone--wire payment

o Call the Shareholder Services Agent to verify that the wire redemption
privilege is in place on your account. If it is not, a representative can
help you add it.

o Place your wire request. If you are transferring money to a non-Morgan
account, you will need to provide the representative with the personal
identification number (PIN) that was provided to you when you opened your
fund account.

By phone--check payment

o Call the Shareholder Services Agent and place your request. Once your
request has been verified, a check for the net amount, payable to the
registered owner(s), will be mailed to the address of record. For checks
payable to any other party or mailed to any other address, please make
your request in writing (see below).

In writing

o Write a letter of instruction that includes the following information: The
name of the registered owner(s) of the account; the account number; the
fund name; the amount you want to sell; and the recipient's name and
address or wire information, if different from those of the account
registration.

o Indicate whether you want the proceeds sent by check or by wire.

o Make sure the letter is signed by an authorized party. The Shareholder
Services Agent may require additional information, such as a signature
guarantee.

o Mail the letter to the Shareholder Services Agent.

By exchange

o Call the Shareholder Services Agent to effect an exchange.

Redemption In Kind

o Each fund reserves the right to make redemptions of over $250,000 in
securities rather than in cash.

ACCOUNT AND TRANSACTION POLICIES

Telephone orders The funds accept telephone orders from all shareholders. The
funds require that telephone orders be placed by pre-authorized individuals
only. The funds will tape record telephone orders or take other reasonable
precautions. However, if a fund does take such steps to ensure the authenticity
of an order, you may bear any loss if the order later proves fraudulent.

Exchanges You may exchange shares in these funds for shares in any other J.P.
Morgan or J.P. Morgan Institutional mutual fund at no charge (subject to the
securities laws of your state). When making exchanges, it is important to
observe any applicable minimums. Keep in mind that for tax purposes an exchange
is considered a sale.

A fund may alter, limit, or suspend its exchange policy at any time.

Business hours and NAV calculations The funds' regular business days and hours
are the same as those of the New York Stock Exchange (NYSE). Each fund
calculates its net asset value per share (NAV) every business day as of the
close of trading on the NYSE (normally 4:00 p.m. eastern time). Each fund's
securities are typically priced using pricing services or market quotes. When
these methods are not available or do not represent a security's value at the
time of pricing (e.g., when an event occurs after the close of trading on a
foreign exchange that would materially impact a security's value at the time the
fund calculates its NAV), the security is valued in accordance with the fund's
fair valuation procedures.

Timing of orders Orders to buy or sell shares are executed
at the next NAV calculated after the order has been accepted. Orders are
accepted until the close of trading on the NYSE every business day and are
executed the same day, at that day's NAV. A fund has the right to suspend
redemption of shares as permitted by law and to postpone payment of proceeds for
up to seven days.

- --------------------------------------------------------------------------------

Transfer Agent Shareholder Services Agent
State Street Bank and Trust Company Morgan Christiana Center
P.O. Box 8411 J.P. Morgan Funds Services - 2/OPS3
Boston, MA 02266-8411 500 Stanton Christiana Road
Attention: J.P. Morgan Funds Services Newark, DE 19713
1-800-521-5411

Representatives are available 8:00 a.m.
to 6:00 p.m. eastern time on fund
business days.

YOUR INVESTMENT | 17

- --------------------------------------------------------------------------------

Timing of settlements When you buy shares, you will become the owner of record
when a fund receives your payment, generally the day following execution. When
you sell shares, proceeds are generally available the day following execution
and will be forwarded according to your instructions.

When you sell shares that you recently purchased by check, your order will be
executed at the next NAV but the proceeds will not be available until your check
clears. This may take up to 15 days.

Statements and reports The funds send monthly account statements as well as
confirmations after each purchase or sale of shares (except reinvestments).
Every six months each fund sends out an annual or semi-annual report containing
information on its holdings and a discussion of recent and anticipated market
conditions and fund performance.

Accounts with below-minimum balances If your account balance falls below the
minimum for 30 days as a result of selling shares (and not because of
performance), each fund reserves the right to request that you buy more shares
or close your account. If your account balance is still below the minimum 60
days after notification, each fund reserves the right to close out your account
and send the proceeds to the address of record.

DIVIDENDS AND DISTRIBUTIONS

Income dividends are typically declared daily and paid monthly. If an investor's
shares are redeemed during the month, accrued but unpaid dividends are paid with
the redemption proceeds. Shares of a fund earn dividends on the business day the
purchase is effective, but not on the business day the redemption is effective.
Each fund distributes capital gains, if any, once a year. However, a fund may
make more or fewer payments in a given year, depending on its investment results
and its tax compliance situation. Each fund's dividends and distributions
consist of most or all of its net investment income and net realized capital
gains.

Dividends and distributions are reinvested in additional fund shares.
Alternatively, you may instruct your financial professional or J.P. Morgan Funds
Services to have them sent to you by check, credited to a separate account, or
invested in another J.P. Morgan Fund.

TAX CONSIDERATIONS

In general, selling shares, exchanging shares, and receiving distributions
(whether reinvested or taken in cash) are all taxable events. These transactions
typically create the following tax liabilities for taxable accounts:

- --------------------------------------------------------------------------------
Transaction | Tax status

Income dividends from the Exempt from federal, state,
New York Tax Exempt Bond and New York City personal
Fund income taxes for New York
residents only

Income dividends from the Generally exempt from federal
Tax Exempt Bond Fund personal income taxes

Income dividends from Ordinary income
all other funds

Short-term capital gains Ordinary income
distributions

Long-term capital gains Capital gains
distributions

Sales or exchanges of Capital gains or
shares owned for more losses
than one year

Sales or exchanges of Gains are treated as ordinary
shares owned for one year income; losses are subject
or less to special rules

Because long-term capital gains distributions are taxable as capital gains
regardless of how long you have owned your shares, you may want to avoid making
a substantial investment when a fund is about to declare a long-term capital
gains distribution. A portion of the Tax Exempt Bond and New York Tax Exempt
Bond funds' returns may be subject to federal, state, or local tax, or the
alternative minimum tax. Every January, each fund issues tax information on its
distributions for the previous year. Any investor for whom a fund does not have
a valid taxpayer identification number will be subject to backup withholding for
taxes. The tax considerations described in this section do not apply to
tax-deferred accounts or other non-taxable entities. Because each investor's tax
circumstances are unique, please consult your tax professional about your fund
investment.

18 | YOUR INVESTMENT

FUND DETAILS
- --------------------------------------------------------------------------------

BUSINESS STRUCTURE

As noted earlier, each fund is a series of J.P. Morgan Funds, a Massachusetts
business trust, and a "feeder" fund that invests in a master portfolio. (Except
where indicated, this prospectus uses the term "the fund" to mean the feeder
fund and its master portfolio taken together.)

Each master portfolio accepts investments from other feeder funds, and all the
feeders of a given master portfolio bear the portfolio's expenses in proportion
to their assets. However, each feeder can set its own transaction minimums,
fund-specific expenses and other conditions. This means that one feeder could
offer access to the same master portfolio on more attractive terms, or could
experience better performance, than another feeder. Information about other
feeders is available by calling 1-800-521-5411. Generally, when a master
portfolio seeks a vote, each of its feeder funds will hold a shareholder meeting
and cast its vote proportionately, as instructed by its shareholders. Fund
shareholders are entitled to one full or fractional vote for each dollar or
fraction of a dollar invested.

Each feeder fund and its master portfolio expect to maintain consistent goals,
but if they do not, the feeder fund will withdraw from the master portfolio,
receiving its assets either in cash or securities. Each feeder fund's trustees
would then consider whether it should hire its own investment adviser, invest in
a different master portfolio, or take other action.

MANAGEMENT AND ADMINISTRATION

The feeder funds described in this prospectus, their corresponding master
portfolios, and J.P. Morgan Series Trust are all governed by the same trustees.
The trustees are responsible for overseeing all business activities. The
trustees are assisted by Pierpont Group, Inc., which they own and operate on a
cost basis; costs are shared by all funds governed by these trustees. Funds
Distributor, Inc., as co-administrator, along with J.P. Morgan, provides fund
officers. J.P. Morgan, as co-administrator, oversees each fund's other service
providers.

J.P. Morgan, subject to the expense reimbursements described earlier in this
prospectus, receives the following fees for investment advisory and other
services:

Advisory services Percentage of the master
portfolio's average net assets

Short Term Bond 0.25%

Bond 0.30%

Global Strategic Income 0.45%

Emerging Markets Debt 0.70%

Tax Exempt Bond 0.30%

New York Tax Exempt Bond 0.30%

Administrative services Master portfolio's and fund's
(fee shared with Funds pro-rata portions of 0.09% of the
Distributor, Inc.) first $7 billion of average net
assets in J.P. Morgan-advised
portfolios, plus 0.04% of average
net assets over $7 billion

Shareholder services 0.25% of each fund's average
net assets

J.P. Morgan may pay fees to certain firms and professionals for providing
recordkeeping or other services in connection with investments in a fund.

FUND DETAILS | 19

- --------------------------------------------------------------------------------

RISK AND REWARD ELEMENTS

This table discusses the main elements that make up each fund's overall risk and
reward characteristics. It also outlines each fund's policies toward various
investments, including those that are designed to help certain funds manage
risk.

- ---------------------------------------------------------------------------------------------------
Potential risks | Potential rewards | Policies to balance risk and reward
- ---------------------------------------------------------------------------------------------------

Market conditions

o Each fund's share price, o Bonds have generally o Under normal circumstances
yield, and total return will outperformed money the funds plan to remain
fluctuate in response to market investments over fully invested in bonds and
bond market movements the long term, with less other fixed income
risk than stocks securities as noted in the
o The value of most bonds will table on pages 24-25
fall when interest rates o Most bonds will rise in
rise; the longer a bond's value when interest o The funds seek to limit risk
maturity and the lower its rates fall and enhance total return or
credit quality, the more its yields through careful
value typically falls o Mortgage-backed and management, sector
asset-backed securities allocation, individual
o Adverse market conditions can offer attractive securities selection, and
may from time to time cause returns duration management
a fund to take temporary
defensive positions that are o During severe market
inconsistent with its downturns, the funds have
principal investment the option of investing up
strategies and may hinder a to 100% of assets in
fund from achieving its investment-grade short-term
investment objective securities

o Mortgage-backed and o J.P. Morgan monitors
asset-backed securities interest rate trends, as
(securities representing an well as geographic and
interest in, or secured by, demographic information
a pool of mortgages or other related to mortgage-backed
assets such as receivables) securities and mortgage
could generate capital prepayments
losses or periods of low
yields if they are paid off
substantially earlier or
later than anticipated

o Emerging Market Debt Fund is
non-diversified which means
that a relatively high
percentage of the fund's
assets may be invested in a
limited number of issuers;
therefore, its performance
may be more vulnerable to
changes in the market value
of a single issuer or a
group of issuers

Credit quality

o The default of an issuer o Investment-grade bonds o Each fund maintains its own
would leave a fund with have a lower risk of policies for balancing
unpaid interest or principal default credit quality against
potential yields and gains
o Junk bonds (those rated o Junk bonds offer higher in light of its investment
BB/Ba or lower) have a yields and higher goals
higher risk of default, tend potential gains
to be less liquid, and may o J.P. Morgan develops its own
be more difficult to value ratings of unrated
securities and makes a
credit quality determination
for unrated securities

20 | FUND DETAILS

Foreign investments

o A fund could lose money o Foreign bonds, which o Foreign bonds are a primary
because of foreign represent a major portion of investment only for the
government actions, the world's fixed income Global Strategic Income and
political instability, or securities, offer attractive Emerging Markets Debt funds
lack of adequate and potential performance and and may be a significant
accurate information opportunities for investment for the Short
diversification Term Bond and Bond funds;
o Currency exchange rate the Tax Exempt Bond and New
movements could reduce gains o Favorable exchange rate York Tax Exempt Bond funds
or create losses movements could generate are not permitted to invest
gains or reduce losses any assets in foreign bonds
o Currency and investment
risks tend to be higher in o Emerging markets can offer o To the extent that a fund
emerging markets higher returns invests in foreign bonds, it
may manage the currency
o From time to time during the exposure of its foreign
year, Emerging Market Debt investments relative to its
Fund may be highly benchmark, and may hedge a
concentrated in certain portion of its foreign
countries currency exposure into the
U.S. dollar from time to
time (see also
"Derivatives"); these
currency management
techniques may not be
available for certain
emerging markets investments

Management choices o A fund could outperform its o J.P. Morgan focuses its
benchmark due to these same active management on those
o A fund could underperform choices areas where it believes its
its benchmark due to its commitment to research can
sector, securities or most enhance returns and
duration choices manage risks in a consistent
way

Derivatives

o Derivatives such as futures, o Hedges that correlate well o The funds use derivatives,
options, swaps and forward with underlying positions such as futures, options,
foreign currency contracts can reduce or eliminate swaps and forward foreign
that are used for hedging losses at low cost currency contracts, for
the portfolio or specific hedging and for risk manage-
securities may not fully o A fund could make money and ment (i.e., to adjust
offset the underlying protect against losses if duration or yield curve
positions(1) and this could management's analysis proves exposure, or to establish or
result in losses to the fund correct adjust exposure to
that would not have particular securities,
otherwise occurred o Derivatives that involve markets, or currencies);
leverage could generate risk management may include
o Derivatives used for risk substantial gains at low management of a fund's
management may not have the cost exposure relative to its
intended effects and may benchmark; the Tax Exempt
result in losses or missed Bond and New York Tax Exempt
opportunities Bond funds are permitted to
enter into futures, options
o The counterparty to a and swap transactions,
derivatives contract could however, these transactions
default result in taxable gains or
losses so it is expected
o Certain types of derivatives that these funds will
involve costs to the funds utilize them infrequently;
which can reduce returns forward foreign currency
contracts are not permitted
o Derivatives that involve to be used by the Tax Exempt
leverage could magnify Bond and New York Tax Exempt
losses Bond funds

o The funds only establish
hedges that they expect will
be highly correlated with
underlying positions

o While the funds may use
derivatives that
incidentally involve
leverage, they do not use
them for the specific
purpose of leveraging their
portfolios

Securities lending

o When a fund lends a o A fund may enhance income o J.P. Morgan maintains a list
security, there is a risk through the investment of of approved borrowers
that the loaned securities the collateral received from
may not be returned if the the borrower o The fund receives collateral
borrower defaults equal to at least 100% of
the current value of
o The collateral will be securities loaned
subject to the risks of the
securities in which it is o The lending agents indemnify
invested a fund against borrower
default

o J.P. Morgan's collateral
investment guidelines limit
the quality and duration of
collateral investment to
minimize losses

o Upon recall, the borrower
must return the securities
loaned within the normal
settlement period

(1) A futures contract is an agreement to buy or sell a set quantity of an
underlying instrument at a future date, or to make or receive a cash
payment based on changes in the value of a securities index. An option is
the right to buy or sell a set quantity of an underlying instrument at a
predetermined price. A swap is a privately negotiated agreement to
exchange one stream of payments for another. A forward foreign currency
contract is an obligation to buy or sell a given currency on a future date
and at a set price.

FUND DETAILS | 21

Illiquid holdings

o A fund could have difficulty o These holdings may offer o No fund may invest more than
valuing these holdings more attractive yields or 15% of net assets in
precisely potential growth than illiquid holdings
comparable widely traded
o A fund could be unable to securities o To maintain adequate
sell these holdings at the liquidity to meet
time or price desired redemptions, each fund may
hold investment-grade
short-term securities
(including repurchase
agreements and reverse
purchase agreements) and,
for temporary or
extraordinary purposes, may
borrow from banks up to
33 1/3% of the value of its
total assets

When-issued and delayed delivery securities

o When a fund buys securities o A fund can take advantage of o Each fund uses segregated
before issue or for delayed attractive transaction accounts to offset leverage
delivery, it could be opportunities risk
exposed to leverage risk if
it does not use segregated
accounts

Short-term trading

o Increased trading would o A fund could realize gains o The funds may use short-term
raise a fund's transaction in a short period of time trading to take advantage of
costs attractive or unexpected
o A fund could protect against opportunities or to meet
o Increased short-term capital losses if a bond is demands generated by
gains distributions would overvalued and its value shareholder activity. The
raise shareholders' income later falls turnover rate for each
tax liability portfolio for its most
recent fiscal year end is as
follows: Short Term Bond,
for (271%), Bond, for
(531%), Global Strategic
Income, for (266%), Emerging
Markets Debt (295%), Tax
Exempt Bond (84%) and New
York Tax Exempt Bond (86%).

22 | FUND DETAILS

- ------------------------------

(THIS PAGE IS INTENTIONALLY LEFT BLANK)

| 23

- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
Investments
- --------------------------------------------------------------------------------

This table discusses the customary types of investments which can be held by
each fund. In each case the related types of risk are listed on the following
page (see below for definitions).This table reads across two pages.

- --------------------------------------------------------------------------------
Asset-backed securities Interests in a stream of payments from specific assets,
such as auto or credit card receivables.
- --------------------------------------------------------------------------------
Bank obligations Negotiable certificates of deposit, time deposits and bankers'
acceptances of domestic and foreign issuers.
- --------------------------------------------------------------------------------
Commercial paper Unsecured short term debt issued by domestic and foreign banks
or corporations. These securities are usually discounted and are rated by S&P or
Moody's.
- --------------------------------------------------------------------------------
Convertible securities Domestic and foreign debt securities that can be
converted into equity securities at a future time and price.
- --------------------------------------------------------------------------------
Corporate bonds Debt securities of domestic and foreign industrial, utility,
banking, and other financial institutions.
- --------------------------------------------------------------------------------
Mortgages (directly held) Domestic debt instrument which gives the lender a lien
on property as security for the loan payment.
- --------------------------------------------------------------------------------
Mortgage-backed securities Domestic and foreign securities (such as Ginnie Maes,
Freddie Macs, Fannie Maes) which represent interests in pools of mortgages,
whereby the principal and interest paid every month is passed through to the
holder of the securities.
- --------------------------------------------------------------------------------
Mortgage dollar rolls The purchase of domestic or foreign mortgage-backed
securities with the promise to purchase similar securities upon the maturity of
the original security. Segregated accounts are used to offset leverage risk.
- --------------------------------------------------------------------------------
Participation interests Interests that represent a share of domestic or foreign
bank debt or similar securities or obligations.
- --------------------------------------------------------------------------------
Private placements Bonds or other investments that are sold directly to an
institutional investor.
- --------------------------------------------------------------------------------
REITs and other real-estate related instruments Securities of issuers that
invest in real estate or are secured by real estate.
- --------------------------------------------------------------------------------
Repurchase agreements Contracts whereby the fund agrees to purchase a security
and resell it to the seller on a particular date and at a specific price.
- --------------------------------------------------------------------------------
Reverse repurchase agreements Contracts whereby the fund sells a security and
agrees to repurchase it from the buyer on a particular date and at a specific
price. Considered a form of borrowing.
- --------------------------------------------------------------------------------
Sovereign debt, Brady bonds, and debt of supranational organizations Dollar- or
non-dollar-denominated securities issued by foreign governments or supranational
organizations. Brady bonds are issued in connection with debt restructurings.
- --------------------------------------------------------------------------------
Swaps Contractual agreement whereby a domestic or foreign party agrees to
exchange periodic payments with a counterparty. Segregated accounts are used to
offset leverage risk.
- --------------------------------------------------------------------------------
Synthetic variable rate instruments Debt instruments whereby the issuer agrees
to exchange one security for another in order to change the maturity or quality
of a security in the fund.
- --------------------------------------------------------------------------------
Tax exempt municipal securities Securities, generally issued as general
obligation and revenue bonds, whose interest is exempt from federal taxation and
state and/or local taxes in the state where the securities were issued.
- --------------------------------------------------------------------------------
U.S. government securities Debt instruments (Treasury bills, notes, and bonds)
guaranteed by the U.S. government for the
timely payment of principal and interest.
- --------------------------------------------------------------------------------
Zero coupon, pay-in-kind, and deferred payment securities Domestic and foreign
securities offering non-cash or delayed-cash payment. Their prices are typically
more volatile than those of some other debt instruments and involve certain
special tax considerations.
- --------------------------------------------------------------------------------

Risk related to certain investments held by J.P. Morgan fixed income funds:

Credit risk The risk a financial obligation will not be met by the issuer of a
security or the counterparty to a contract, resulting in a loss to the
purchaser.

Currency risk The risk currency exchange rate fluctuations may reduce gains or
increase losses on foreign investments.

Environmental risk The risk that an owner or operator of real estate may be
liable for the costs associated with hazardous or toxic substances located on
the property.

Extension risk The risk a rise in interest rates will extend the life of a
mortgage-backed security to a date later than the anticipated prepayment date,
causing the value of the investment to fall.

Interest rate risk The risk a change in interest rates will adversely affect the
value of an investment. The value of fixed income securities generally moves in
the opposite direction of interest rates (decreases when interest rates rise and
increases when interest rates fall).

Leverage risk The risk of gains or losses disproportionately higher than the
amount invested.

Liquidity risk The risk the holder may not be able to sell the security at the
time or price it desires.

24 | FUND DETAILS

- --------------------------------------------------------------------------------

================================================================================
* Permitted (and if applicable, percentage limitation)
percentage of total assets - bold
percentage of net assets - italic
o Permitted, but not typically used
+ Permitted, but no current intention of use
- -- Not permitted

Global Emerging Tax New York
Short Term Strategic Markets Exempt Tax Exempt
Bond Bond Income Debt Bond Bond
- ------------------------------------------------------------------------------------------------------------------------

credit, interest rate, market, prepayment * * * o o o
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, liquidity, political *(1) *(2) * * o o
Domestic Domestic
Only Only
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity,
market, political *(1) *(1) o o * *
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity,
market, political, valuation *(1) *(1) o * -- --
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity,
market, political, valuation *(1) *(1) o * -- --
- ------------------------------------------------------------------------------------------------------------------------
credit, environmental, extension, interest rate,
liquidity, market, natural event, political,
prepayment, valuation * * * + + +
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, extension, interest rate,
leverage, market, political, prepayment *(1) *(1) * o -- --
- ------------------------------------------------------------------------------------------------------------------------
currency, extension, interest rate, leverage,
liquidity, market, political, prepayment *(1),(3) *(1),(3) *3 -- -- --
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, extension, interest rate,
liquidity, political, prepayment *(1) *(1) * * -- --
- ------------------------------------------------------------------------------------------------------------------------
credit, interest rate, liquidity, market, valuation * * * * * *
- ------------------------------------------------------------------------------------------------------------------------
credit, interest rate, liquidity, market,
natural event, prepayment, valuation * * * -- -- --
- ------------------------------------------------------------------------------------------------------------------------
credit * * * * o o
- ------------------------------------------------------------------------------------------------------------------------
credit *(3) *(3) *(3) *(3) o(3) o(3)
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, market, political *(1) *(1) * * -- --
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, leverage,
market, political *(1) *(1) * * * *
- ------------------------------------------------------------------------------------------------------------------------
credit, interest rate, leverage, liquidity,
market -- -- -- -- * *
- ------------------------------------------------------------------------------------------------------------------------
credit, interest rate, market, natural
event, political o o -- -- *(3) *(3)
- ------------------------------------------------------------------------------------------------------------------------
interest rate * * * * * *
- ------------------------------------------------------------------------------------------------------------------------
credit, currency, interest rate, liquidity,
market, political, valuation * * * * * *
- ------------------------------------------------------------------------------------------------------------------------

Market risk The risk that when the market as a whole declines, the value of a
specific investment will decline proportionately. This systematic risk is common
to all investments and the mutual funds that purchase them.

Natural event risk The risk a natural disaster, such as a hurricane or similar
event, will cause severe economic losses and default in payments by the issuer
of the security.

Political risk The risk governmental policies or other political actions will
negatively impact the value of the investment.

Prepayment risk The risk declining interest rates will result in unexpected
prepayments, causing the value of the investment to fall.

Valuation risk The risk the estimated value of a security does not match the
actual amount that can be realized if the security is sold.

(1) For each of the Short Term Bond and Bond funds, all foreign securities in
the aggregate may not exceed 25% of such fund's assets.

(2) At least 65% of the New York Tax Exempt Bond Fund's assets must be in New
York municipal securities, and at least 80% of the New York Tax Exempt and
Tax Exempt Bond Funds' assets must be in tax exempt securities.

(3) All forms of borrowing (including securities lending, mortgage dollar
rolls and reverse repurchase agreements) in the aggregate may not exceed
33 1/3% of the fund's total assets.

FUND DETAIL | 25

- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS

The financial highlights tables are intended to help you understand each fund's
financial performance for the past fiscal five years or periods, as applicable
or the life of the fund if shorter. Certain information reflects financial
results for a single fund share. The total returns in the tables represent the
rate that an investor would have earned (or lost) on an investment in a fund
(assuming reinvestment of all dividends and distributions). This information has
been audited by PricewaterhouseCoopers LLP, whose reports, along with each
fund's financial statements, are included in fund's annual report, which are
available upon request.

- --------------------------------------------------------------------------------

J.P. MORGAN SHORT TERM BOND FUND

- -----------------------------
Per-share data For fiscal years ended
- -------------------------------------------------------------------------------------------------------------
10/31/96 10/31/97 10/31/98 10/31/99 10/31/00

Net asset value, beginning of year ($) 9.84 9.86 9.85 9.98 9.68
- -------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.53 0.58 0.56 0.57 0.58
Net realized and unrealized gain (loss)
on investment ($) 0.02 (0.01) 0.13 (0.31) (0.09)
- -------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.55 0.57 0.69 0.26 0.49
- -------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.53) (0.58) (0.56) (0.51) (0.58)
Net realized gain ($) -- -- -- (0.05) --
Total distributions to shareholders ($) (0.53) (0.58) (0.56) (0.56) (0.58)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 9.86 9.85 9.98 9.68 9.59
- -------------------------------------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- -------------------------------------------------------------------------------------------------------------

Total return (%) 5.77 5.98 7.24 2.70 5.19
- -------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 8,207 14,519 30,984 38,714 37,622
- -------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.62 0.50 0.50 0.57 0.60
----------------------------------------------------------------------------------------------------------
Net investment income (%) 5.42 5.94 5.66 5.24 6.00
----------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 1.61 1.38 0.98 0.80 0.82
----------------------------------------------------------------------------------------------------------
Portfolio turnover (%)(1) 191 219 381 398 271
- -------------------------------------------------------------------------------------------------------------

(1) Represents the turnover of The Short Term Bond Portfolio.

26 | J.P. MORGAN FIXED INCOME FUNDS

- --------------------------------------------------------------------------------

================================================================================

J.P. MORGAN BOND FUND

Net asset value, beginning of year ($) 10.41 10.30 10.42 10.59 9.87
- -----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.62 0.66 0.65 0.58 0.61
Net realized and unrealized gain (loss)
on investment ($) (0.11) 0.18 0.17 (0.60) 0.02
Total from investment operations ($) 0.51 0.84 0.82 (0.02) 0.63
- -----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from
Net investment income ($) (0.62) (0.65) (0.65) (0.59) (0.61)
In excess of net investment income -- -- -- -- (0.00)(1)
Net realized gain ($) -- (0.07) -- (0.11) --
Total distributions to shareholders ($) (0.62) (0.72) (0.65) (0.70) (0.61)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.30 10.42 10.59 9.87 9.89
- -----------------------------------------------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- -----------------------------------------------------------------------------------------------------------------------

Total return (%) 5.13 8.58 8.06 (0.23) 6.61
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 149,207 169,233 216,285 234,874 240,180
- -----------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.66 0.68 0.66 0.69 0.69
- -----------------------------------------------------------------------------------------------------------------------
Net investment income (%) 6.08 6.41 6.14 5.72 6.19
- -----------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 0.66 0.68 0.66 0.69 0.69
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%)(2) 186 93 115 465 531
- -----------------------------------------------------------------------------------------------------------------------

(1) Less than $0.005.

(2) Represents the turnover of The U.S. Fixed Income Portfolio.

================================================================================

J.P. MORGAN GLOBAL STRATEGIC INCOME FUND

- -----------------------------
Per-share data For fiscal periods ended
- ----------------------------------------------------------------------------------
10/31/98(1) 10/31/99 10/31/00

Net asset value, beginning of period ($) 10.21 9.77 9.40
- ----------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.70 0.60 0.86
Net realized and unrealized loss
on investment ($) (0.49) (0.38) (0.26)
- ----------------------------------------------------------------------------------
Total from investment operations ($) 0.21 0.22 0.60
- ----------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.63) (0.59) (0.66)
Return of capital (0.02) -- --
- ----------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.65) (0.59) (0.66)
- ----------------------------------------------------------------------------------
Net asset value, end of period ($) 9.77 9.40 9.34
- ----------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- ----------------------------------------------------------------------------------
Total return (%) 1.97(2) 2.26 6.57
Net assets, end of period ($ thousands) 10,166 9,073 7,331
- ----------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 1.00(3) 1.00 1.00
- ----------------------------------------------------------------------------------
Net investment income (%) 6.24(3) 6.35 7.05
- ----------------------------------------------------------------------------------
Expenses without reimbursement (%) 1.89(3) 1.54 2.50
- ----------------------------------------------------------------------------------
Portfolio turnover (%)(4) 368 318 266
- ----------------------------------------------------------------------------------

(1) The fund commenced operations on 11/5/97.

(2) Not annualized.

(3) Annualized.

(4) Represents the turnover of The Global Strategic Income Portfolio.

J.P. MORGAN FIXED INCOME FUNDS | 27

- --------------------------------------------------------------------------------

================================================================================

J.P. MORGAN EMERGING MARKETS DEBT FUND

For the
seven
- ----------------------------- months
Per-share data For fiscal periods ended ended
- ---------------------------------------------------------------------------------------------------------
12/31/97(1) 12/31/98 7/31/99(2) 7/31/00

Net asset value, beginning of period ($) 10.00 9.76 7.30 7.29
- ---------------------------------------------------------------------------------------------------------
Income from investment operations:
- ---------------------------------------------------------------------------------------------------------
Net investment income ($) 0.58 1.15 0.49 0.95
Net realized and unrealized gain (loss)
on investment ($) (0.05) (2.64) 0.02 1.42
- ---------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.53 (1.49) 0.51 2.37
- ---------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.58) (0.81) (0.52) (0.89)
In excess of net investment income ($) (0.02) (0.16) -- --
Net realized gain ($) (0.17) -- -- --
- ---------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.77) (0.97) (0.52) (0.89)
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 9.76 7.30 7.29 8.77
- ---------------------------------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- ---------------------------------------------------------------------------------------------------------
Total return (%) 5.47(3) (15.93) 7.27(3) 34.12
- ---------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 11,978 19,313 26,216 20,163
- ---------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 1.25(4) 1.25 1.25(4) 1.25
------------------------------------------------------------------------------------------------------
Net investment income (%) 9.71(4) 10.05 12.28(4) 11.01
------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 2.40(4) 2.09 2.51(4) 1.95
------------------------------------------------------------------------------------------------------
Interest expense (%) -- -- 0.02(4) 0.06
------------------------------------------------------------------------------------------------------
Portfolio turnover (%)(5) 182(3) 791 555(3) 295
- ---------------------------------------------------------------------------------------------------------

(1) The fund commenced operations on 4/17/97.

(2) In 1999, the fund changed the fiscal year-end from 12/31 to 7/31.

(3) Not annualized.

(4) Annualized.

(5) Represents the turnover of The Emerging Market Debt Portfolio.

================================================================================

J.P. MORGAN TAX EXEMPT BOND FUND

For the 11
- ----------------------------- months
Per-share data For fiscal periods ended ended
- ---------------------------------------------------------------------------------------------------------------------
8/31/96 8/31/97 8/31/98 7/31/99(1) 7/31/00

Net asset value, beginning of period ($) 11.73 11.63 11.85 12.15 11.77
- ---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.55 0.55 0.54 0.46 0.52
Net realized and unrealized gain (loss)
on investment ($) (0.08) 0.24 0.30 (0.36) (0.10)
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.47 0.79 0.84 0.10 0.42
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.55) (0.55) (0.54) (0.46) (0.52)
Net realized gain ($) (0.02) (0.02) (0.00)(2) (0.02) (0.11)
Distributions in excess of net
investment income ($) -- -- -- -- (0.00)(2)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.57) (0.57) (0.54) (0.48) (0.63)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ($) 11.63 11.85 12.15 11.77 11.56
- ---------------------------------------------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) 4.01 6.95 7.21 0.83(3) 3.74
- ---------------------------------------------------------------------------------------------------------------------
Net assets, end of period ($ thousands) 369,987 401,007 439,225 431,68(5) 336,599
- ---------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.64 0.64 0.64 0.68(4) 0.67
------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.67 4.67 4.44 4.21(4) 4.46
------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%)(5) 25 25 16 29(3) 84
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(1) In 1999, the fund changed the fiscal year-end from 8/31 to 7/31.

(2) Less than $0.01 per share.

(3) Not annualized.

(4) Annualized.

(5) Represents the turnover of The Tax Exempt Bond Portfolio.

28 | J.P. MORGAN FIXED INCOME FUNDS

J.P. MORGAN NEW YORK TAX EXEMPT BOND FUND

For the
- ----------------------------- four months
Per-share data For fiscal years ended ended
- --------------------------------------------------------------------------------------------------------------------------------
3/31/96 3/31/97 3/31/98 3/31/99 7/31/99(1) 7/31/00

Net asset value, beginning of year ($) 10.11 10.34 10.28 10.62 10.66 10.35
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income ($) 0.46 0.46 0.46 0.42 0.13 0.43
Net realized and unrealized gain (loss)
on investment ($) 0.26 (0.03) 0.40 0.14 (0.28) (0.02)
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations ($) 0.72 0.43 0.86 0.56 (0.15) 0.41
- --------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Net investment income ($) (0.46) (0.46) (0.46) (0.42) (0.13) (0.43)
Net realized gain ($) (0.03) (0.03) (0.06) (0.10) (0.03) --
Distributions in excess of net
investment income -- -- -- -- --
(0.00)(4)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ($) (0.49) (0.49) (0.52) (0.52) (0.16) (0.43)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year ($) 10.34 10.28 10.62 10.66 10.35 10.33
- --------------------------------------------------------------------------------------------------------------------------------

- -----------------------------
Ratios and supplemental data
- --------------------------------------------------------------------------------------------------------------------------------
Total return (%) 7.16 4.19 8.49 5.39 (1.41)(2) 4.11
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year ($ thousands) 50,523 56,198 85,161 119,152 115,690 125,173
- --------------------------------------------------------------------------------------------------------------------------------
Ratio to average net assets:
Net expenses (%) 0.75 0.75 0.71 0.70 0.70(3) 0.70
-------------------------------------------------------------------------------------------------------------------------------
Net investment income (%) 4.43 4.44 4.33 3.95 3.82(3) 4.19
-------------------------------------------------------------------------------------------------------------------------------
Expenses without reimbursement (%) 0.79 0.81 0.77 0.74 0.78(3) 0.73
-------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover (%)(5) 41 35 51 44 8(2) 86
- --------------------------------------------------------------------------------------------------------------------------------

(1) In 1999, the fund changed the fiscal year-end from 3/31 to 7/31.

(2) Not annualized.

(3) Annualized.

(4) Less than $0.01.

(5) Represents the turnover of The New York Tax Exempt Bond Portfolio.

J.P. MORGAN FIXED INCOME FUNDS | 29

(THIS PAGE IS INTENTIONALLY LEFT BLANK)

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FOR MORE INFORMATION
- --------------------------------------------------------------------------------

For investors who want more information on these funds, the following documents
are available free upon request:

Annual/Semi-annual Reports Contain financial statements, performance data,
information on portfolio holdings, and a written analysis of market conditions
and fund performance for a fund's most recently completed fiscal year or
half-year.

Statement of Additional Information (SAI) Provides a fuller technical and legal
description of a fund's policies, investment restrictions, and business
structure. This prospectus incorporates each fund's SAI by reference.

Copies of the current versions of these documents, along with other information
about the fund, may be obtained by contacting:

J.P. Morgan Funds
Morgan Christiana Center
J.P. Morgan Funds Services - 2/OPS3
500 Stanton Christiana Road
Newark, DE 19713

Telephone: 1-800-521-5411

Hearing impaired: 1-888-468-4015

Email: JPM_Mutual_Funds@JPMorgan.com

Text-only versions of these documents and this prospectus are available, upon
payment of a duplicating fee, from the Public Reference Room of the Securities
and Exchange Commission in Washington, D.C. (1-202-942-8090)
(publicinfo@sec.gov), or by writing the Public Reference Section of the SEC,
Washington, DC 20549-0102 and may be viewed on-screen or downloaded from the
SEC's Internet site at http://www.sec.gov. The funds' investment company and
1933 Act registration numbers are:

J.P. Morgan Short Term Bond Fund ........................811-07340 and 033-54632
J.P. Morgan Bond Fund ...................................811-07340 and 033-54632
J.P. Morgan Global Strategic Income Fund ................811-07340 and 033-54632
J.P. Morgan Emerging Markets Debt Fund ..................811-07340 and 033-54632
J.P. Morgan Tax Exempt Bond Fund ........................811-07340 and 033-54632
J.P. Morgan New York Tax Exempt Bond Fund ...............811-07340 and 033-54632

J.P. MORGAN FUNDS AND THE MORGAN TRADITION

The J.P. Morgan Funds combine a heritage of integrity and financial leadership
with comprehensive, sophisticated analysis and management techniques. Drawing on
J.P. Morgan's extensive experience and depth as an investment manager, the J.P.
Morgan Funds offer a broad array of distinctive opportunities for mutual fund
investors.

J.P. Morgan Funds
- --------------------------------------------------------------------------------
Advisor Distributor
J.P. Morgan Investment Management Inc. Funds Distributor, Inc.
522 Fifth Avenue 60 State Street
New York, NY 10036 Boston, MA 02109
1-800-521-5411 1-800-221-7930